Maguire: LBMA default triggered nuclear explosion in gold and silver

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I speculated the other day about the COMEX inventories possibly sparking defensive action by TPTB/PPT/etc.:
PMBug said:
I wonder if the plundering of COMEX inventories may have prompted emergency action by the PPT to crash prices with an eye towards stopping that bleeding (by removing the incentive to take delivery).
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It's something we've seen before.

Andrew Maguire says, it wasn't the COMEX, but the LBMA that was stressing:
Gold and silver only have this type of selling when there are extreme shortages of the physical metal. I am totally aware that before this takedown occurred there was an imminent LBMA default.

We had already seen COMEX inventories plunging. In 90 days COMEX inventories saw an incredible decline. So immediately available physical gold was disappearing. People around the world don’t understand what has been happening since Cyprus....

Entities went to the LBMA and said, ‘We don’t trust anybody anymore. We want our physical metal.’ They were told they would be cash settled instead by a bullion bank. The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.

This is why this smash has been orchestrated because of the run that has been taking place on physical metal. So Western governments had to do this because of an imminent run on the unallocated LBMA system. The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash.

This orchestrated smash in gold and silver was nothing short of a bailout for the bullion banks. So there is a run on physical gold that is taking place and the Ponzi scheme the West is running is being threatened because of it.
...
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http://kingworldnews.com/kingworldn...Default_Triggered_Gold_&_Silver_Takedown.html
 
The MF piece is pretty wild speculation, namely the thesis that Obama talked about gold mining with the major banking CEOs as well as that the COMEX will default "in the next week or several weeks".
 
... let’s consider why – what is their motive? There has been a big drawdown in physical gold warehouse stocks at the Comex this year, and a really dramatic drawdown at the J P Morgan Chase depository. If, as a result of this, stocks are too low to meet deliveries, gold would have to be bought in the open market, driving prices sharply higher, and they for sure don’t want that now that their stocks are so low. So the game is to smash the gold price so that they can replenish their stocks on the cheap – and they are not short of friends in high places who can assist them in this endeavor.
...
Finally, just by coincidence you understand, after waves of selling in New York during the day on Friday had softened gold up nicely and brought it down close to its critical support, the London physical market locked up on Friday afternoon. Some investors entertain the romantic notion that this physical market is like an old fashioned cattle auction, with a guy in a tweed jacket and a hat spouting 200 words a minute of auctioneers jargon. It is not. It is computerized and the computers froze on Friday shutting out would be sellers who then went into blind panic, entering the futures market to hedge or short. This tipped the market into a vertical plunge that completed the job of crashing the key support level.
...
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More: http://www.clivemaund.com/gmu.php?art_id=68&date=2013-04-14
 
I think shutting the physical market down was not done to stop people from selling physical but rather to prohibit access to physical via dip buying...
As far as the result goes, ie hedging in futures, I agree with Mr Maud.
However, think about this: Now these pyhsical holders still own their bullion in London and they're sitting on short futures. So what are they going to do? Sell phys or cover shorts? So if Mr Maud is right about this tactic by the bullion banks, then they created a temporary gain for future pain, because physical didn't enter the market.
 
[Puts on tin foil hat]

The day before the crash, a closed door meeting (no media/reporters):
President Barack Obama is meeting with members of the members of the Financial Services Forum Thursday morning at 11 a.m. They are expected to discuss the economy, the employment picture and the administration’s new budget proposal.

Here is the list of bank executives who will be attending, according to a White House official:

• Lloyd Blankfein, Chairman and CEO Goldman Sachs GS -2.43%
• Jacques Brand, CEO Deutsche Bank DBK.XE +1.21% Americas
• Michael Corbat, Chief Executive Officer Citigroup C -2.01%
• Jamie Dimon, Chairman, CEO and President J.P. Morgan Chase JPM -3.51%
• Sergio Ermotti, CEO UBS UBSN.VX -0.48%
• James Gorman, Chairman and CEO Morgan Stanley MS -1.74%
• Gerald Hassell, Chairman and CEO Bank of New York Mellon Corpo BK -2.05%ration
• Jay Hooley, Chairman, President and CEO State Street Corpo STT -1.75%ration
• Abby Johnson, President, Fidelity Financial Services, Fidelity Investments
• Steve Kandarian, Chairman of the Board, President and CEO Metlife MET -1.38%
• Brian Moynihan, President and CEO Bank of America BAC -4.96% Merrill Lynch
• John Strangfeld, CEO, Prudential
• John Stumpf, Chairman, President and CEO Wells Fargo WFC -1.35%
• Jim Weddle, Managing Partner, Edward Jones
• Bob Benmosche, President and CEO American International Group AIG -2.53%
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http://blogs.wsj.com/washwire/2013/04/11/full-list-of-bankers-at-white-house-meeting-thursday/

[Removes tin foil hat]
 
JS Kim appear to agree with the OP thesis too:
...
So what was a banker to do? The easiest answer would be to slam the paper gold and silver price so that profitable long contracts would quickly transform into unprofitable ones as a mechanism to stop physical delivery requests that would expose that the emperor indeed had no clothes. In other words, because the Western banking cartel-controlled COMEX and LBMA vaults had insufficient physical gold and silver for delivery and other banks were struggling to make good on the contracts they had signed with clients to deliver physical gold, they needed to stop delivery requests immediately. ...
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More (long): http://www.theundergroundinvestor.c...els-gold-and-silver-price-slam-will-backfire/
 
Maguire elaborates on the supposed LBMA default:
...
What’s happened now is they are in a position where that leased gold is being asked for and they don’t have it. I know of a very large client who actually turned up for his bullion, was refused his bullion, and told he would be settled in cash. I felt I should go public with that (on KWN).

...(ABN AMRO) really was the tip of the iceberg. What happened was that we saw that first bullion bank create the first visible default of the LBMA fractional reserve system. I hear of other clients who are now panicking, and what happens? You get an official intervention. That’s what it (the takedown in gold and silver) was all about.”
...
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More: http://kingworldnews.com/kingworldn...ates_On_The_LBMA_Default_&_Ensuing_Panic.html
 
PMBug said:
Turd has a nice post today summarizing a lot of the news and speculation from the past week or so:
http://www.tfmetalsreport.com/blog/4667/gold-delivery-or-default
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I still read Turd most days and respect his willingness to share his thoughts and access to people, that his website has created for him.
He gives the impression that he genuinely cares about us little folk and is always prepared to admit when he has got it wrong.

I guess it really comes down to a very simple choice -

either we accept that the markets are managed, or we accept that they are not and that the charts are the best way to predict market moves.

There are still a lot of people who will not accept that theres any significant intervention and then theres the rest of us, the conspiracy nuts who leap onto every headline that suggests it is all fixed.

Turd tries to join the dots .........

and in the process helps to keep me sane :cheers:
 
rblong2us said:
...
either we accept that the markets are managed, or we accept that they are not and that the charts are the best way to predict market moves.
...
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Ever watched curling? Once the stone is set into motion, the effort to keep it on track is indirect. If you only watched the stone, you might not notice the changes to the ice.
 
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