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Gold market could see a default and fail to deliver as early as February

Gold and Silver
Gold and Silver
Courtesy of

On Jan. 18, billionaire metals broker Eric Sprott spoke in an interview with King World News on the new revelations of gold price manipulation, and the groundbreaking discovery that a large financial regulator in Germany has publicly announced there is evidence of central bank coercion in the futures markets.

During his 18 minute interview, Sprott reinforced the fact that commodity markets like the Comex and LBMA were short incredible amounts of physical metal in comparison to the number of paper contracts they have on the books, and that even as early as February, one of more markets in the West could default on their contracts and issue a fail to deliver notice for receipt of physical gold.

Erik King: Are we looking at a possible gold shortage? Because paper claims versus physical gold have skyrocketed to 112 to 1?

Eric Sprott: It's absolutely ridiculous. Dealers have something like 11 tons of gold on the Comex... 11 tons. China imports about 100 tons a month... I mean 11 tons is like nothing. February is a big delivery month. Last year it was 40 tons, and God forbid it's 40 tons this February, and there are alot of contracts still outstanding.

All my work suggests that we are going to see a failure of delivery in some market to some country... something going to give here. - King World News interview, Jan. 18

For years, analysts and organizations like Peter Schiff, and Eric Sprott, and GATT, along with whistle blowers like Andrew MaGuire have been telling the public and the markets of gold manipulation by entities such as J.P. Morgan Chase, the Comex, the LBMA, and several major central banks to protect the petro-dollar, and their congregation of fiat currencies. However, with China's major push to buy any and all physical gold available in the markets, supplies have dwindled to almost nothing, and has led Germany's Deutsche Bank to close their primary metals desk, and to also force J.P. Morgan Chase to limit their exposure to gold futures and deliveries.

The stability of the West's futures and commodities markets have become extremely unsettled since 2009, with several key events taking place that showed cracks of just how deep gold price manipulation has occurred. When MF Global declared bankruptcy in 2011, and sequestered customer accounts and contracts, the purpose was to protect J.P. Morgan chase, and the banks inability to deliver the next month's quota of physical gold. And since that time, gold demand, especially by India and China, has only increased, and the days of protected manipulation could very well be coming to an end.

2014 has been the year several financial analysts and economists have predicted a global meltdown, and many of them point to the first quarter of this year as the time frame. And with Eric Sprott stating that a major gold delivery default is likely to occur, perhaps as soon as February, this alone could be the trigger than leads to both a currency and banking crisis, and cause a paradigm shift in the global financial system away from the West, and into the hands of China and their emerging financial power.

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