500/1 Leverage In The Gold Market And The BIS Intervention To Save Trillions Of Dollars Of Derivatives

kingworldnews.com

On the heels of a couple of weeks of carnage in the gold and silver markets, today whistleblower Andrew Maguire spoke with King World News about 500/1 leverage in the gold market and the BIS intervention to save trillions of dollars of derivatives.

Andrew Maguire:  “The essential point is that the officials may still have control of the synthetic markets, but they are increasingly constrained in their activities by the outflows of the underlying physical fractionally underwriting these synthetic (bullion bank) short positions. It is not possible to have a paper market price that remains dislocated from the physical market without it failing, or a deliverable price being dragged up higher. 

Why? Because the resulting spot gold and silver benchmark price resulting from the creation of synthetic supply is deliverable in the global physical markets, which key off the resulting over-the-counter spot gold price in London, or for that matter Comex positions that can be exchanged for physical at the London spot price. This is the paper market’s Achilles heel.  Each time we witness officials forced to defend trillions of dollars worth of fractional reserve gold positions, they erode their synthetic base a little more and bring forward the day there will be insufficient synthetic supply to offset physical offtake. 

500/1 Leverage In Gold & BIS Move To Defend Trillions Of Dollars Of Derivatives
 
As an example, at the BIS (Bank for International Settlements) opex expiry at 3pm UK time on the 30th of April, it was clear by the footprints that they were grossly offside on trillions of dollars worth of derivative positions which they were forced to defend. Anyone doubting that officially transacted BIS gold derivatives exceed $1 trillion, need look no further than their agent banks’ OCC positioning and add this to the Reserve Bank of India’s estimation that there is 92/1 leverage. However, this conservative estimate does note include related derivatives which estimate leverage to be (a staggering) 500/1.