The great gold conspiracy

Looking at the financial headlines over the last few days it’s clear that Eoin Treacy was right on the money.

Investors could soon get a golden opportunity to buy the precious metal, says gold ETF chief – CNBC

Gold, the Federal Reserve, and the dollar – what’s driving up precious metal prices? – City AM

Is March 29, 2019 the Day Gold Bugs Have Been Waiting for? – Kitco

Why Gold Is Still The Best Basis For Money – Forbes

The Trend Continues: Romania Introduces a Bill to Repatriate its Gold Reserves – Sprott Money

Just a week or so after he launched his gold summit, and it seems like gold is once again in the spotlight.

But looking at that list of headlines above, one in particular stands out. Take another look at that list and see if you spot it.

Here it is: Is March 29, 2019 the Day Gold Bugs Have Been Waiting for?

What’s so special about 29 March? Well. It’s the day central banks can count their gold holdings as cash.

Many commentators are saying this is the reason central banks have been stocking up on gold.

In 2018 central banks added 74% more gold to their reserves than they did in 2017.

This is the highest annual purchase since 1971 – the year President Richard Nixon took the US off the gold standard.

That is interesting in itself. If central banks think it’s a good time to be stocking up on gold, well, it’s probably a good idea to follow their lead.

After all, these are the very institutions that control the world’s money supply.

But when you drill down into this story, it gets even more interesting.

A piece by Italian journal II Sole/24 Ore has been making waves by stating that central banks have been using paper gold markets to suppress the gold price while they made their buys.

The natural conclusion of this is that from 29 March, it will be in central banks’ interest to increase, not suppress, the gold price and so gold should start to rise in value dramatically.

Here’s an excerpt from the piece, which I found via Zero Hedge:

“In recent years, but especially in 2018, a jump in the price of gold would have been the normal order of things. On the contrary, gold closed last year with a 7-percent downturn and a negative financial return. How do you explain this? While the central banks raided “real” gold bars behind the scenes, they pushed and coordinated the offer of hundreds of tons of “synthetic gold” on the London and New York exchanges, where 90 percent of the trading of metals takes place. The excess supply of gold derivatives obviously served to knock down the price of gold, forcing investors to liquidate positions to limit large losses accumulated on futures. Thus, the more gold futures prices fell, the more investors sold “synthetic gold,” triggering bearish spirals exploited by central banks to buy physical gold at ever-lower prices”.

Here’s what Kitko has to say about this situation:

If it’s true, then we should see the central banks involved stop suppressing gold prices. They might even start supporting them, as their marked to market holdings would improve their balance sheets as gold prices rise.

Exciting, yes?

Well, yes—if it’s true. This remains to be seen. And even if it is true, it’s not safe to assume that the central banker conspirators are stupid enough to be obvious about what they are doing.

We could indeed see a tidal shift. Just remember that the instant a tide shifts is imperceptible. It’s only after a rising or falling tide gains momentum that begins to sweep all before it.

I’ll admit, it does all feel a bit like a conspiracy theory, but at the same time it all makes perfect sense, and the numbers and timelines all fit.

Like I said, Eoin really chose a great time to launch his Gold Stock Fortunes service.

If you haven’t seen Eoin’s number one gold stock pick yet, you can click here to get the lowdown.

You’ll get to hear his urgent gold stock briefing, and find out about his top gold investment to make right now, before the 29 March rolls around.

With his help, Eoin believes you could make as much as ten times your money on these gold plays.

If you’re looking to invest in gold, and take advantage of this sea change in central bank thinking, this is the place to start.

Until next time,

Harry Hamburg
Editor, Exponential Investor

Category: Commodities

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