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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Commentary Of The Month
August 31, 2016
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By Gijsbert Groenewegen

The strong interest in physical gold by private investors and successful investors such as Soros, Druckenmiller and Icahn is frustrating the efforts by the central banks and bullion banks to depress the gold and silver prices.  And remember if you don’t own and physically possess the physical gold and silver, you don’t own anything because you hold a piece of paper that entitles you to gold or silver. It is called counterparty risk, the risk that the party that has to deliver you the gold and silver can’t deliver. As we say in Dutch, “you can't pluck feathers from a naked chicken.”

The more the central banks and the bullion banks are lowering the gold and silver prices the more buyers are coming out of the woodwork to snap up cheap physical gold and silver and are frustrating the manipulation of the central banks and the bullion banks. And thus we are heading for a guaranteed default of the COMEX and the LBMA. The default is unavoidable when investors prefer physical settlement instead of nominal (or U.S. dollar) settlement, especially when the dollar starts tanking, with only 1 ounce of physical gold good for delivery in the COMEX registered inventories for every 100+ ounces of existing paper or so called synthetic futures contracts.

As we’ve shown numerous times, the commercials (read bullion banks) have a history of shorting into a rising gold price, waiting for speculator buying to exhaust itself in order to smash the price and cover. Subsequently, there were three occasions during the 2001-11 bull market when the commercials stopped increasing net short positions into a rising gold price because the demand for gold and silver was just too overwhelming. In all three instances gold went parabolic. Now we could see a watershed moment with moves we have never seen before when the demand for physical gold and silver delivery far outstrips the available gold and silver registered inventories. The tide has clearly turned. Therefore, put on your safety belts and enjoy the ride!