Inventories – Most Unreliable Indicator of All

Gold 400 oz Bars

QUESTION: Martin,

The thing that gets me is when so-called precious metal “experts” say such thing as the silver inventory is very depleted at the COMEX or the gold inventory is very depleted and someone can come in and purchase up all the remaining  inventory and then you have a default. come on , really, the seeds they sow. however,

I would like to hear your opinions on some of this. I know you have stated matters that gold is for insurance against a fall of the monetary system , not so much for inflation or the dollar .

Thank you ,

Vince

ANSWER: The COMEX is not the only storage facility. They can move any commodity into “official” storage and move it out.  They have used this trick from the 1970s in grains. They can move metals from New York to London to create the impression prices should rise. That is what they did for the Buffet silver manipulations. It is the oldest game in town and it is not restricted to metals. Look at the inventories when gold crashed from 1980. The “official” inventory declined with the price. Gold will rise ONLY when all the markets are lined up. Then capital will move into all sectors of the commodities once again. These people desperate to see metals, create wonderful images that the world will collapse by tomorrow. It just does not work that way. Gold cannot rally until the capital flows begin to shift now that the German elections are done. We are still waiting for the Debt Ceiling issue that should be resolved by early October.