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WGC Gold Statistical Distortion; London's Palladium Shortage; HSBC Sudden Vault Closures Inducing Client Gold Liquidation

An interview of David Jensen by Jay Taylor on March 11, 2015

Listen to the Audio link.

Jay Taylor Interviews Daved Jensen MP3

 

Or watch the You Tube Video: World Gold Council Deception - Palladium Ready to Explode Higher


1. World Gold Council - Gold Market Data Distortion

Harry Oppenheimer: "...People bought gold, he said, because they were "too stupid to think of any other monetary system that will work"..."

http://www.economist.com/node/342433

  • Anti-gold money advocate Harry Oppenheimer provided founding funds to the World Gold Council in a $25M grant as chairman of Anglo American Gold in 1987.
  • World Gold Council dues of $70M p.a. drawn from mining industry depleting already crimped mining company coffers.
  • WGC has primarily promoted gold as jewellry and has published what are viewed as dis-informative statistics on gold consumption despite a $30M p.a. research budget with funds pulled from the mining industry.
  • Gold ownership of 200M oz per day traded in London on the LBMA spot market vs global above ground stock of 5.5 billion oz.
  • WGC has greatly understated analysis of Chinese gold demand with $30M annual research budget vs Koos Jansen's analysis generated with next to no budget.
  • https://www.bullionstar.com/blogs/koos-jansen/how-the-world-is-being-fooled-about-chinese-gold-demand/

  • WGC gives total global annual bar and coin demand of 1,063 tonnes p.a. despite > 2,000 tonnes p.a. bullion withdrawn from Shanghai Gold Exchange vaults alone in each of years 2013 and 2014
  • The gold price has declined since 2011 as, in reality, demand for gold has surged worldwide. WGC statistics obscure the true level of global physical gold demand while the paper price drops, driven by trading on the virtual LBmA market in London.
  • Gold, silver, platinum and palladium mining company shareholders are being injured by mining company executives financing the WGC (arguably a breach of fiduciary duty to company shareholders) by:
    1. Pricing precious metals sold by mining company's on the London Bullion Market's virtual metal trading exchange that distorts precious metals prices downward;
    2. Financing the World Gold Council apparently providing distorted statistics obscuring true metal demand and also primarily promoting gold as jewellery as opposed to its most important savings and monetary role which can create the greatest demand.


2. London's Palladium Shortage

  • At that time, Russia stepped-in with palladium stockpiles estimated at 20M - 20M oz that were dishorded since to meet supply deficit.
  • Russia provides 40% of global mine supply of palladium (South Africa produces another 40% from its mines).
  • HSBC projects a ongoing 1M to 1.5M oz p.a. supply deficit of palladium assuming no material increase in investment demand.

  • Source: HSBC Bank


In Summary:

  • Russian stockpiles that have hidden the annual palladium mine production deficit are gone, Russians entering market as buyers, large annual palladium supply deficits are back. Watch physical palladium market for potential delivery default on LPPM.

3. HSBC Rapidly and Quietly Shuts its 7 London Vaults - Shock Metal Clients - Inducing Liquidation of Precious Metals Holdings?

  • Initially identified by Ned Naylor Leyland, HSBC has quietly announced to customers that it is shutting London vaulting facilities with 60 days notice.
  • Stealth and shock announcement with no public admission by HSBC until approached by Ned Naylor Leyland, Alasdair Macleod.
  • HSBC has made no announcement regarding its vaulting facilities as custodian for the GLD Exchange Traded Fund.
  • HSBC is the custodian for GLD - no clarity on GLD status (remember also the fiasco with CNBC's Bob Pisani picking up a GLD bar in HSBC's vault that did not belong to GLD: http://www.silverdoctors.com/ned-naylor-leyland-reveals-actual-owner-of-bob-pisanis-gld-gold-bar/ ).
  • Troubling because of the sudden nature of HSBC's actions which appear to force holders of physical metal out of their holdings by giving too little time to move assets; liquidation may be forced on investors holding their property in HSBC's vaults.
  • Does HSBC see a London physical precious metals market disruption coming (perhaps starting with palladium delivery default) that will result in delivery calls by clients for metal held by HSBC or GLD shareholders? Is there a metal rehypothecation issue at HSBC?

 

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