Andrew Maguire - World Just Witnessed Massive Shift In Physical Gold

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Today whistleblower Andrew Maguire told King World News that the world has just witnessed a massive and irreversible shift in the global balance of physical gold.  Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also spoke about the breathtaking gold and silver smash and what stunned investors around the world should expect next.  Below is a collection of what Maguire had to say to KWN in a mixture of communications since chaos erupted in key markets.

Maguire:  “Just off wholesaler calls.  Most are too busy to talk at this time, but today (Thursday) will be the largest volume day this year and possibly 2 years.  Central bank purchases are almost certainly far in excess of paper sales.  We are so close to the marginal cost of production that my contacts are saying the gates are wide open here to purchase all physical that is available.

“Continued paper market supply saw another + 45 tons sold into the rise ahead of Thursday’s fix and then in size directly post the fix.  These were immense amounts of paper gold hitting the market, yet there is absolutely zero physical gold for sale and nothing but buy orders in the wholesale market.

 but today (Thursday) will be the largest volume day this year and possibly

 2 years.  Central bank purchases are almost certainly far in excess of paper 

sales.  We are so close to the marginal cost of production that my contacts 

are saying the gates are wide open here to purchase all physical that is 

available....

“Continued paper market supply saw another + 45 tons sold into the rise

 ahead of Thursday’s fix and then in size directly post the fix.  These were 

immense amounts of paper gold hitting the market, yet there is absolutely 

zero physical gold for sale and nothing but buy orders in the wholesale 

market.  

This is 2001 type of spike bottoming action with hot money bearish sentiment 

off the scale.  I still expect that Thursday marked a historic bottom.  We are 

below the true costs of production for both gold and silver and it makes a

 good deal of sense for the central banks to be taking all that is offered.  

Fundamentally this will have a significant catch-up impact.

Needless to say we are getting reports of extremely large allocations of gold,

 but also far larger direct producer deals being struck outside the paper 

markets.  The one question is, just how long this paper market selling can 

continue to drive price when such a massive transfer of physical is underway? 

It is also important to understand why this divergence has been able to 

extend to such extremes given the hundreds of tons of reported bullion 

transfers, and how this recent capitulated move has enabled an irreversible 

global balance shift in physical gold.  

I still maintain we marked a historic bottom on Thursday and aside from 

some misplaced margin gaming, the risk now is actually to the shorts.  

The power (to move prices higher) is all in the bullion banks’ hands and 

will be exercised at a time of their choosing, which, given the structural 

shifts and global imbalances, I believe is imminent.”

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