Is the City of London's Gold-Rigging Scheme on the Ropes?
Wealth Watchman

Where There’s Smoke…

As some mainstream analysts in the financial world ponder “vanilla” things like the effect Draghi’s QE will have, or how many meetings it will take for a “patient Fed” to raise rates, there are far more interesting and meaningful things occurring for those who are paying attention.  As we all know, market rigging and the City of London go together like Bonnie and Clyde, but in the last several years, those doing the rigging have had to increasingly put up with “pesky” things….like official inquiries, larger fines, and most importantly, a growing public awareness of the true nature of their crimes.

I’ve detailed in times past, how the City of London has held many thousands of tonnes of gold in their underground vaults(many of which, I’ve maintained are likely off the books). The banking Dragon in the City, did this because it was necessary to rig and control markets around the world.

I’ve also showed our community, how the BRICS nations, and the blossoming Eurasian landmass as a whole, is “going for the kill” by scooping up every bit of gold that they can find.  Yet, after the last 3 years of watching multi-thousand tonne Chinese and Indian gold purchases, some in our ranks had begun to think that the banksters would never run out of gold to supply…  Yet, once again recently, some very intriguing signs have come to light, which suggest that many of the Dragon’s mechanisms of control in the gold market may be gasping for air!

For the latest news out of London, is showing fresh signs of smoke billowing from every room, from every vault, indeed, from every nook and cranny on the premises!  And we all know, that in Wall Street and London, where there’s smoke, there’s usually fire.  The sad thing, is that the fires that start there, don’t usually burn themselves out before taking huge swathes of the greater economy with them.

Before we take a look at the newest headline though, lets go back in time for a moment, shall we?

A Little Backstory

Some of the shieldbrothers here will recall the rather amusing trip down the rabbit hole that many of us stackers took, courtesy of none other than Bob Pisani, in late 2011.  In early September 2011(right before the US debt downgrade, come to think of it), Bob Pisani, went for a casual frolic in HSBC gold vaults, where apparently the “allocated” gold for GLD was stored.  It’s worth a short watch, just for the giggles.

It was funny and amusing, because this was supposed meant to instill confidence in the investing public, and quell concerns about any financial funny business in its dealings, but that spectacularly backfired in a way that GLD and HSBC couldn’t have foreseen.  As zerohedge so aptly put it:

When it comes to such things as secret bank vaults containing the world’s only remaining hard currency, which can only be seen by reporters with clearance after being driven with a blindfold through the streets of London, who have to relinquish their cell phones and “GPS devices” to confirm their existence, it, unfortunately, does not build much credibility, and it is inevitable that conspiracy theories will and do start. And unfortunately, any PR campaign always tends to backfire.

What happened during that visit was the sort of thing Mark Twain himself couldn’t have written.  For, by going down to the super-dee-duper, secret GLD vaults(in HSBC’s custody), Mr. Pisani picked up a random, Rand Refineries gold bar(number ZJ6752), and showed it to the camera….

The trouble was that not only was that bar not in the GLD’s inventory list….but, according to Ned Naylor Leyland, the bar actually was actually owned by an entirely different gold ETF altogether(ETFS), which the Doc at silverdoctors, disclosed!

This led many observers to entirely new sets of “bothersome” questions, like:

1) Is all the gold within the HSBC’s GLD vault really allocated for GLD only?

2) If not, how many other gold bars in that vault are stored at the same facility, and for whom?

3) Are these bars all “clean” in ownership, with no liens upon them, or have they been rehypothecated(counted and used many times over, for multiple parties)?

4) If some(or all) of this gold has been rehypothecated, how many claims exist on each bar?

5) Do the parties who all have claims to these bars know this?

And to think…none of those new insightful questions could’ve been pursued without the help of CNBC or Bob Pisani!   Who’d have thought they could’ve been capable of conducting actually helpful journalism(albeit unconsciously)?  Thanks guys, we owe you one!

HSBC’s London Gold Vaults

Ok, fast forward to current events, where just days ago, the very same HSBC dropped a bomb on the gold community, by announcing that all 7 of its gold vaults in the City of London, will be closed within 2 months’ time!  All this was made public with zero forewarning, and no advance notice whatsoever, but was sprung out of the wild, blue yonder!

I first saw Ned Naylor-Leland mention this on his twitter account on March 5th. One day later, KWN had an article stating the same, with Andrew Maguire.

This is amazing stuff!  I mean, imagine being worth tens, if not hundreds of millions of dollars(or more).  Imagine you’ve acquired a reasonable amount of gold….perhaps 10,000 to 20,000 ounces, or even a tonne of gold or more, and decided to store that gold for “safe-keeping” inside London’s HSBC vaults….

Only to get a notice telling you that the vault containing your gold, which you believed was secure, was to be closed permanently within 8 weeks’ time?

What would you do?  How fast do you think this might spread panic to “get physical” through London’s millionaires, and billionaires?

Honestly, now that HSBC has made this announcement, it leaves us with more crucial questions than ever.  Like:

1) What could possibly be the “business consideration” for these closures?

2) Why was only a 2 month notice given to customers of such a monumental decision(a timeframe which would surely prohibit everyone wishing to move their physical holdings elsewhere, from doing so)?

3) Was the prohibitive nature of this timeframe indeed the entire point of its being chosen?

4) Will the current holders of “allocated bullion receipts” be given adequate opportunity to move that physical gold to other storage facilities, and on what terms?

5) If they won’t be given that opportunity, will they be cash settled at spot prices?  Or will they be given a “GLD” receipt of “gold ownership”?

6) Will the GLD ETF vaults stay open(which Mr. Leyland himself asked)?

7) What is HSBC “front-running”?  What soon-to-come event or action was this done to hedge against?

8) Lastly, which major “safe”, “well-respected” bullion banking storage facility is next on the chopping block?

The string of bullion banks now closing their doors on their vaulting facilities grows ever longer.  First it was ABN Amro which set the trend of banks retreating from gold and silver storage(and delivery) for its customers.  Then other banks in Holland followed suit.  This latest news though, that HSBC (and even Deutsche Bank) is now declaring its intent to exit physical gold storage in London are undeniable signs that this trend is accelerating.

All this is highly ironic.  Remember:

The original role of banks in the first place, was to physically store gold and silver for depositors.  Now, these same banking behemoths are closing down the original(and most legitimate) reason to even exist, due to it “not being profitable enough”!

That’s precisely how upside-down the entire financial world has become in our time!

The Con Will End

Don’t get me wrong here: I’m not saying this gold-rigging fraud will end tomorrow or next week.  We mustn’t keep underestimating the banking cabal’s ability to string out their demise, through fraud after fraud.  I also want to be clear that I’m NOT saying this means they can’t take gold and silver lower(they most certainly can, and I’ve said as much!) . However, that being said, there’s little doubt that the Banking Dragon has a serious problem.

The complex mechanisms which it has spent many decades setting up in order to dominate gold’s pricing and trade, have been dropping like proverbial flies. This newest scandal at HSBC’s gold storage vaults is just the latest evidence that this fallout is accelerating.

Jim Willie has recently been warning that the strain on the gold market is starting to become quite serious, and that there would soon be public signs that “business as usual” in gold would soon be done with forever.  Are these some of those signs?  Is the closure of 7 HSBC gold vaults a sign, that the “hot potato” of gold leasing fraud, has become so hot, as to be downright deadly for whoever holds it when this music stops?

Mr. Willie has also long said, that one of the hugest scandals yet to break onto the limelight is the insidious practice of bullion banks selling and leasing gold, that was supposedly in allocated accounts, and therefore “out of bounds”.  He claims that the the amount of allocated gold within the gold storage industry(especially in London and Europe) that has been sold to suppress gold’s price, may number in the many thousands of tonnes.

Remember, those allocated accounts have been supposedly sacrosanct.  This would be a grave crime indeed, and while there’s no way to prove or verify the severity of the fraud(until the scandal finally goes public), every headline I’ve seen from this industry for the past several years, suggests that the “allocated gold fraud” is every bit as bad as reported.

The closure of the custodial gold vaults by HSBC, could indeed be evidence that the troubles within the fractional-gold reserve system are coming to a head.  The GLD itself(whose gold stock is now down almost 50% in the last 2 years), could be needing some “fresh supplies” to continue the con, and I have to wonder aloud:

Are the remaining gold holdings of HSBC’s former gold-storage clients, being personally usurped by HSBC to continue the lifespan of the GLD just a little longer?  If so, and if things are now really that dire, how far off can the expiration date of this scam really be?

Conclusion

It’s true that the people who’ve run the gold market con for generations have been vastly wealthy and well-connected people.  It’s also true that they’ve kept that power and wealth through cunning, and violent schemes.

However, no scam, no matter how ingenious or well-run, lasts forever!

In 1666, the great Fire of London, swept through and ravaged its quarters for three days, destroying many thousands of buildings: the old Cathedral of Saint Paul, and even much of the Roman-era parts of its heritage.

I contend that right now, all the smoke we’re seeing is evidence of an entirely new conflagration in the City.  From the pullout of the Rothschilds in gold trading itself, to the stoppage of SIFO and GOFO, to the ending of the old London Fix, and now to the closing of the HSBC gold vaults….

There is undoubtedly a new Great Fire burning in London, and something dastardly is being destroyed behind the scenes! 

However much UNLIKE the previous Great Fire of London, this one won’t be so easily recovered from! For the roaring inferno burning throughout the City right now, was set by the banking Dragon itself.  Through generational fraud and malevolence, this great Beast has set fire to his own cave, and will soon have nowhere else to run.  As I’ve said before, the offspring of those running the Dragon(such as Nathanael Rothschild himself), have tried to re-establish a new gold-rigging home and scheme several years ago in Hong Kong.  That scheme however, was soon closed due to fraud(and many of its high-level executives arrested).  It appears, that the Rothschilds, at least in some capacity, have been either “kicked out” of China, or put on a short leash.

Yes, this new Great Fire of London is much worse than the first, for the previous fire only destroyed buildings, and as we all know, Londoners simply built new ones.

This new fire, which is most assuredly torching many levers of power, is destroying something else entirely; something nearly impossible to rebuild once lost:

Trust, confidence, and goodwill.

When the world learns of the full scale of the Dragon’s theft, there will be hell to pay for the old Money Powers who oversaw and executed it, that is, if they don’t first start a real conflagration elsewhere, to mask it!  

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