When Gold and Silver Go into Hiding and Why the Gold Must Keep Flowing

This is a very informative video. It is a summary of much of the content talked about by the likes of mystery blogger FOFOA. Just some of the content covered includes:

  • How the Elite still use gold as means of payment even though the dollar is supposedly unbacked.
  • How the petrodollar system functions
  • The interplay between oil exporters, bullion banks, and monetary authorities (central banks) and gold mining companies.
  • How gold loans work
  • How gold miners being unable to make a profit might cause it to fail
  • How we are starting to see this with gold ore getting more expensive to get out of the ground
  • Why near term gold futures contracts being in backwardation means low confidence in ability to deliver on futures contracts.
  • And what the significance of this is.
  • How either the gold price rises substantially or the futures market breaks.

There is also a second video that explains some aspects of this a little more clearly and is worth spending a few minutes on too.

It also covers negative GOFO rates in some detail, a topic that was discussed much last year but which we haven’t seen so much talk on of late. It explains just how significant it is likely to be that major gold holders are withdrawing their bid on paper dollars.

(For a primer on backwardation and negative GOFO rates you might want to check out our article from last year as well. Gold Backwardation and Negative GOFO – What does it all mean?)

Brother JohnF in a subscriber only video pointed out that it might not take as along as some might think for the petrodollar/gold futures system to fail. He outlined how China has been buying on average 150 tonnes of gold a month. This is not much less than the largest gold miner in the world, Barrick Golds, total yearly production of around 220 tonnes. That’s right China has been buying each month almost all that the biggest miner produces in a year! So as he said we are getting closer to the end game.

For more on this topic of gold leaving the bullion banking system you might want to check out this article too:

Declining COMEX Gold Inventories – what to make of it?

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