We have a prime opportunity to successfully execute a gold price squeeze right now.
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Let’s look at the CME Issues and Stops cumulative data for this year, up until 26/10/2021, and the same data from last year for a comparable period of time (to republish any data or any skwealthacademy charts on your site, please reference our republishing rights here). To refresh your memory, with client accounts, generally speaking, the banking institutions prefer “issued” contract numbers to exceed “stopped” and with house accounts, they prefer “stopped” contract numbers to exceed “issued”, as “stopped” numbers refer to the number of 100-oz Au futures contracts that were settled by taking delivery of warrants that grant them ownership rights to physical gold warehouse stocks. However, since the identities of “Clients” remain undisclosed and opaque, as is always the case when it comes to bank reporting about their gold activities, client identities at times may merely be other bullion banks that have taken opposite sides of the same gold trade, and client “stops” may merely represent HSBC bank receiving physical gold “issued” by JP Morgan.
Therefore, client “stopped” numbers may actually not be negative to the overall game played by the banking cartel, and at times, client “stops” may merely reflect gold merely being moved around the various vaults of partners-in-crime. In such cases, a client “stop” would not represent gold potentially leaving the “house” bankers’ control, but only represent the movement of physical gold between bullion banker vaults as necessary to meet supply fulfillment for a variety of different purposes. As I’ve stated a thousand times before in my articles, if one believes reported numbers in the banking arena to be exactly as presented at the surface level, one will never gain any understanding for the real factors driving asset pricing mechanisms in the arena of global finance. Furthermore, understand that just because the “stopped” numbers represent the amount of gold represented by delivered warrants, this does not necessarily create overall depleting physical gold warehouse COMEX stocks because encumbered gold may remain in COMEX warehouses, as I explained here.
When stopped numbers exceed issued, theoretically, these events should place stress on the fractionally physically gold backed COMEX gold futures trading platform by decreasing “eligible” gold stocks and increasing encumbered, unavailable “pledged” and “registered” stocks. However, whether these different categories of gold stocks are actually even separately stored or if “pledged” and “registered” stocks remain encumbered and unavailable to support gold futures trading, as they should, remains open to question. Furthermore, “eligible” gold stocks are not necessarily all “eligible” to back gold futures trading. As is often the case with “bank speak”, eligible gold does not actually mean eligible to meet gold amounts required by clients that stand for physical delivery to settle their futures contracts. “Eligible” merely means that the gold stored in the warehouses meet the standard for delivery requirements.
As we can observe in the charts I compiled below, as of 26/10/2021, COMEX warehouses reported storage of 33.266M AuOzs, of which 17.57Mozs are registered, 2.34Mozs are pledged, and 15.69Mozs are eligible. Comparing these numbers from 22 January of this year, banker reported COMEX warehouse gold stocks back then were 38.68Mozs, of which 19.10Mozs were registered, 2.11Mozs were pledged, and 19.57Mozs were eligible. If these numbers are accurate, the registered and eligible categories have respectively hemorrhaged more than 1.5Mozs (46.7 tonnes) and a whopping 3.88Mozs (120.7 tonnes) of gold, just from 22 January 2021. These figures indicate that both those that have just stored their gold at COMEX warehouses and those that had taken warrants have finally come to their senses and moved their gold stocks out of the banking system, no longer exposing their gold to potential theft and seizure from the bullion bankers in the future.
However, this realization of wealthy people and institutions that storing gold in banker run warehouses is not wise has put stress on the ability of bankers to adequately source enough physical gold to run their con games in the futures markets. Reported robust overall COMEX warehouse gold stock numbers are extremely deceptive, because the “eligible” reported number is not separated into eligible gold to be “delivered” for institutions and individuals that opt for physical settlement, and ineligible gold merely stored at COMEX warehouses. For example, of the above current numbers, less than 50% of all COMEX gold warehouse stocks are eligible to back future physical settlements of gold futures contracts, and of the near 15.7 Mozs reported as eligible, no one has any idea what percentage of this gold stock is actually “eligible” to settle future demands for physical settlement. Furthermore, note that even though the CME lists “pledged” gold as a separate category, “pledged” gold is part of the “registered” gold data and not additional gold in COMEX warehouses above and beyond “eligible” gold. “Pledged” gold merely reflects gold encumbered by COMEX gold warrants deposited as performance bond collateral with the CME clearing services.
Given the CME’s own explanation of the “pledged” gold category when it started including this category in its reports a couple of years ago, I’m not sure why the bankers decided to separate “pledge” gold in COMEX warehouses into a separate category, since all “registered” gold is already encumbered by warrants. Consequently, does it really matter for gold stocks if some registered gold has been offered as collateral for financial contracts? Also, though I am assuming “pledge” gold numbers are part of “registered” gold numbers where they belong, I wouldn’t put it beyond bankers to be including “pledged” gold numbers inside the “eligible” category, even though doing so would make zero rational and logical sense. Bankers have never been transparent about anything, and if they include ineligible gold in the “eligible” category to artificially inflate these numbers, what would stop them from inflating “eligible” numbers further by opting to include “pledged” gold numbers in this category as well?
As I mentioned in the above linked article that explained why leaving physical gold in COMEX warehouses instead of using warrants to physically move gold to vaults independent and outside of the global banking system is foolish (and perhaps some of those that finally physically moved their gold out of COMEX vaults read my article), one can likely accurately presume that any physical gold encumbered by warrants or as performance bond collateral that remains in COMEX gold warehouses is likely held by big bullion banks that are part of the problem not the solution. Secondly, I am skeptical of whether these reported numbers for all reported categories are even reliable and accurate, as after all, blindly trusting banker reported gold data should not be an accepted protocol of any gold analyst worth his or her weight in salt, especially since most of the COMEX gold warehouses in New York are operated by the very bullion banks HSBC and JP Morgan that have proven themselves to be most untrustworthy when reporting gold data in the past.
For example. JP Morgan gold traders were fined many years ago by the SEC for reporting false gold data, according to the SEC, “hundreds of times” within a period barely more than a year’s time, a charge that would mean JP Morgan gold traders were reporting false data about their gold trading quite possibly every single day. If you search for the settlement details of this case online, you won’t be able to find them now, because the SEC has already scrubbed the original details and charges of “hundreds of times” of false reports filed by JP Morgan bankers from their own website. However, knowing that truth that the oligarchs have always systemically scrubbed clean evidence of banker criminality from the internet over time, I documented the original case details when first released years ago. In fact, when I eventually release my online skwealthacademy later this year, you will find documented details of many historical criminal banking cases that literally will only be available in my courses, as all evidence of many cases I discuss in my course have been completely censored from the internet by now.
Why the Reddit Army Must Squeeze Gold Prices Higher Now
In any case, if we really do not know with 100% certainty the exact data regarding the physical gold depletion of COMEX warehouse stocks that back gold futures trading, then why I would state that now is a prime opportunity for the Reddit army to squeeze gold prices sky high, starting at the end of this year and into 2022? Despite the uncertainty of accuracy in all the data reported above, we can be confident of a number of presumptions surrounding physical gold stocks that back synthetic gold trading in New York futures markets.
- Physical gold stocks that back synthetic gold trading have been dwindling, and whether this stock has dwindled by 3.88Mozs this year or much more is irrelevant to the conclusion that dwindling physical stocks backing synthetic gold trading increases the vulnerability of the bullion banks to negative effects of a rising gold price.
This is the very reason the bullion banks have put so much of their muscle behind controlling gold prices for the entirety of this year after gold prices in futures markets exceeded $2,000 an ounce to start this year. It seems that the millions of us around the world that desire monetary freedom and sound money platforms in the future have not learned how to mount a proper, effective and sustainable offensive when banker vulnerability is high. We must lash out against banker vulnerability when it is high, not low, which makes now a prime opportunity to squeeze gold prices higher. When the Reddit army tried to mount a silver squeeze earlier this year when silver futures prices approached $30 an ounce, though the intent was solid and sincere, the methodology deployed to do so was unsound and the execution poor, as purchases of the silver SLV ETF was the methodology chosen to do so.
In fact, I wrote an article similar to this one and posted it on the WallStreetBets thread on Reddit to explain why execution of a silver squeeze by urging people to buy SLV shares was a futile cause that would end in failure, but bankers must have invaded Reddit admins too, because for solely posting truth of the proper methodology to execute a successful silver squeeze, Reddit admins banned my account. In fact, the Reddit admins that banned my account after posting this information prevented me from posting a warning to Redditors to sell their SLV shares when silver futures hit $30 an ounce at the end of this past January. Less than 24 hours after I issued a warning to my skwealthacademy patrons that the CME was going to raise margins on silver futures contracts to smash silver prices, the CME raised margins on silver futures and smashed silver prices. While my patrons all received the warning and were able to lock in their profits and exit silver before the silver price smash, unfortunately, Reddit admins prevented the Reddit army from receiving this same warning.
However, understanding how things operate, especially on a thread called “WallStreetBets”, I realize that the Reddit admins that censored my warning from reaching the Reddit Army had to have been banker trolls that infiltrated the Reddit platform. It would be naïve to believe that banker shills are not operating on all Reddit financial and investment threads. Thus, I am not going to post this article there myself but will rely on the Reddit Army to do so, because I still have faith in the Reddit Army and therefore, will implore the assistance of the intelligent Redditors, whom are many, to ingest, understand and spread this information on the Reddit platform.
- From the CME Issues and Stops report data from last year to this year that I’ve compiled and posted above, it is easy to observe a substantial drop off in both Client and House activity in gold futures trading.
This lower activity grants the influence of outsiders (like the Reddit Army) much greater power in being able to move markets due to lower participation numbers. Just think of a group of 100 outsiders trying to overwhelm the behavior of 10 powerful people versus trying to overwhelm the behavior of 50 powerful people. Which scenario would be easier to achieve? Of course, the group of outsiders must be massive in number, strong in resolve, and loyal to the cause for this approach to succeed.
- No matter if the above data is accurate or not, we know that beyond doubt, the synthetic digital/paper gold that trades on futures markets is massively hundreds of times greater than the physical gold that backs this trading every year. And with physical gold backing gold futures trading most likely significantly depleted during the course of this year, this leaves the banking cartel vulnerable to a gold short squeeze.
For example, the reported figures indicate that COMEX gold warehouse stocks that back futures trading have decreased by a minimum of 120.7 metric tonnes since the end of this past January. Furthermore, the reported current “eligible” gold stocks that back gold futures trading in New York of 488 metric tonnes is assuredly a figure much less than this, but by how much less, nobody but the bullion bankers know.
Why a Sustainable Gold Squeeze Must Be Manufactured from a Position of Strength, Not Weakness
Though I expect gold prices in futures markets to continue exhibiting weakness over the next couple of weeks (and I even warned my patrons that when gold futures prices traded at $1,808 to start this week that another smash below $1,800, along with a silver smash from $24.55 at the time to below $24 an ounce was inevitable at some point after Monday this week), the continued ease at which the banking cartel has moved gold and silver futures prices also yields an ironic vulnerability. For the past few months, OI (open interest) in gold futures has been steadily falling, allowing the usual big whales (bullion bankers) in the market to easily move prices. However, since the bullion bankers have an iron grip on the gold derivative markets, the mistake, oft repeated, is to attack the bankers at their strength, which is in their realm in which they exert absolute control – derivative markets. An advantage, one that is sustainable and can grow in power, can never be won by attacking strength against a foe as formidable as the banking cartel, but can only be achieved by attacking weakness. This is why past squeezes in silver markets through buying SLV shares failed. Attacking strength is a recipe for guaranteed failure.
As I mentioned above, the loss of gold stock of 120.7 metric tonnes and the current outstanding eligible (though surely inflated unrealistic) gold stock of 388 tonnes will be perceived in a drastically different light if placed in the proper context. That proper context is the amount of synthetic gold trading the bank cartels execute every year. This figure in recent years, has amounted to more than 250,000 tonnes per year. Using this figure, it is easy to understand that an amount of 388 tonnes of physical gold to back 250,000 tonnes of synthetic gold futures trading every year is not a massive number, but an incredibly inadequate gold stock. In fact, on a percentage basis, it amounts to a miniscule 0.1552%. Understanding this, it should be clear that the manner in which a gold squeeze to free gold prices from constant gold price manipulation executed in futures markets must consist of physical gold buying, not the purchase of a derivative gold product like the GLD ETF.
Though obviously daily gold futures trading in NY varies day to day, week to week and month to month, the CME’s website states here that 27M AuOzs in synthetic gold trade daily in New York. Given approximately 250 trading days per year, this amounts to about 210,000 tonnes of synthetic gold trading in New York alone every year, still in the range of the above slightly larger figures from a few years ago. Given the precarious nature of physical gold to synthetic gold relationship, it should also be self-evident that an effort that succeeded in shrinking available global physical gold supplies will place tremendous stress on the ability of synthetic gold futures operations from being able to function properly. The scam can only continue if no one calls the bluff. Call the bluff and the scam will implode. Thus, the solution, of which I implore the Reddit Army to execute is a simplistic, but very effective, one step solution, as presented below:
- Buy as many 1-ounce gold coins, whether Canadian gold maple leafs, US gold eagles, or Mexican gold libertads, as you can afford, or if one ounce is too much at the present time, buy smaller quantities of gold bars.
That’s it. However, this strategy will only succeed with the participation of millions. The strategy of attacking weakness, which is dwindling physical gold supply, will only work if executed in large numbers with the unity of common people worldwide. Obviously, as endless synthetic gold supply can be created from nothing and out of thin air by the banking cartel, the only strategy that will work is to markedly decrease the dwindling physical gold supply to squeeze synthetic prices higher. If we were able to mobilize 1/5 of 1% of the world’s population to buy one ounce of gold, this would remove 15.6Mozs, or 485 tonnes of physical gold supply from availability of bullion bankers to the point where their already absurd miniscule ratio of physical gold backing synthetic gold trading would become insanely miniscule. The data above illustrates that the smart gold is fleeing and leaving banker controlled warehouses. As long as this trend continues and the Reddit Army successfully removes large quantities of physical global gold supply through the purchase of small quantities of physical gold by millions, this plan can easily succeed.
Supporting Factors for the Above Strategy
The fact that bankers have not been able to successfully plunge gold prices to $1,500 this year though they have mightily tried is due to the level of physical gold buying that enters the market everytime they artificially crash gold prices in synthetic markets. It took all their might just to knock gold prices back a little more than a couple hundred dollars from its yearly high set at the start of this year, and this was despite limited support from limited buying as money flow was significantly diverted away from physical gold purchases into bitcoin purchases. Imagine how little success the cartel would have had in knocking back gold prices had retail and institutional physical gold purchases soared instead of significantly dipped. And this is the proof that significant retail physical gold buying can make a difference and can squeeze gold prices significantly higher in the last couple months of 2021 if we can organize, mobilize and influence millions of people, or a tiny fraction of the entire global population, to simply purchase a small quantity of gold with their savings.
Furthermore, there have been plenty of documented proven stories in the past about real physical gold shortage supplies that have only been solved by the banking cartel by artificially plunging prices in the gold futures markets to diminish global demand for physical gold (for demand will fall if gold prices remain consistently weak or falling). In past years, it has been proven that bullion bankers operating COMEX gold warehouses had illegally sourced physical gold stock from criminally operated gold mines in South America. If legitimate physical gold supplies were/are so abundant, bullion bankers would not have exposed themselves to the appearance of wrongdoing by sourcing even 1% of its physical gold stocks from illegal sources as they did. In recent years, there has been much speculation that perhaps many of the hundreds of tonnes of physical gold held in New York or London warehouses to back gold derivatives trading had been sourced from stolen gold.
Over the years, as spoils of war and political conflict, hundreds of tonnes of gold has been stolen by Western nations from Ukraine (20-30 tonnes of gold), Libya (143 tonnes), and undisclosed tonnages from Iraq, possibly Afghanistan, and other nations. In fact, seven years ago, I posited the question, “What Happened to Ukraine’s Gold” amidst rumors of fleets of trucks secretly carting off Ukraine’s sovereign gold reserves to a waiting cargo plane for transport to an undisclosed location under the cover of night. The aforementioned video received nearly 30k views before YouTube aggressively shadowbanned and censoring my channel for constantly raising issues and speaking truth to power that cast a dark shadow on the banking industry (which is why I migrated completely off of Youtube to Rokfin here.) To this day, no one but bankers and Western governments knows where these hundreds of tonnes of stolen gold ended up, but I would be shocked if a good deal of it did not end up in New York and London warehouses that back gold derivative trading.
This year, gold prices have not risen despite physical buying to counter falling synthetic prices due to the failure of the number of physical buyers to reach a critical mass that would force a gold price squeeze. That is why the only solution to attack the current banking cartel vulnerability in shrinking real gold physical stocks is to cause it to shrink significantly more and to increase the amount of physical buyers to achieve critical mass. And the only way to accomplish this is through small physical gold purchase by millions of people worldwide.
Why Paper Engineered Precious Metal Squeezes Lack Staying Power
If, in the future, a movement tries again to force gold or silver squeezes through purchases of paper derivative products like the SLV and GLD, this movement will fail again. As bankers have continually slashed initial margins for gold and silver with their manufactured gold and silver futures price declines this year, all they would need to do to force artificial selling in gold and silver futures markets would be to aggressively raise margins. This is a successful tactic they have used time and time again to crush prices aggressively. Newly opened long positions in futures markets are based upon current margin amounts and thus can easily be forced to liquidate with this tactic. This is why trying to force a gold and silver squeeze in paper markets will always fail. In fact, if I wanted to do so right now, and I had the power to increase initial and maintenance margins on the most heavily traded gold and silver futures contracts in New York, I am quite confident I could artificially create a $100 plunge in gold prices and a 5% plunge in silver fairly easily.
Patience and Persistence Required
My suggested scheme is simple, and not a brilliant one. In fact, it has been suggested multiple times in the past and failed. However, never has anyone taken the time before as I have in this article to explain in full detail why this tactic will succeed if executed properly and why this is the only tactic that will succeed. Furthermore, never before have such tactics been launched when banker weakness was approaching annual highs. For the reasons I delineated in this article, this strategy can be launched into heavy banker weakness and a position of strength among the people now. In fact, much of the hysterical fear spread about the virus to enforce tyrannical lockdowns and to prevent millions from working for the past 18-months has been about depleting our savings so we cannot execute such strategies as the one I’ve outlined here to strike back at the Empire. If we don’t strike now, we will never strike ever. There are two sayings in one of my favorite books that describes the way of the warrior, a book from the early eighteenth century called the Hagakure, that I am going to quote now as it is applicable to my plea.
“Having only wisdom and talent is the lowest tier of usefulness.”
Too many people serve themselves only and because of that any wisdom and talent they possess is of the lowest tier of usefulness. It is time for all of us to exercise our sense of duty and our purpose in life to sacrifice for the greater good and engage in behavior that we 100% know will yield positive results for everyone though greater, quicker riches may be available through other investments. Duty calls and we must choose duty over self-interest.
“There is only the matter of constant awareness. If it were not for men who demonstrate valor on the tatami, one could not find them on the battlefield either.”
There are millions around the world aware of everything I have stated in this article, but yet only a handful of them have taken any action to improve our global monetary system. Awareness is not enough. Awareness without action is also the lowest tier of usefulness. It is time for every aware person to act. If one cannot act when the result is so clear and so worthy, one will likely shrink in the face of struggle and obstacles for the remainder of one’s life.
This is also a simple point that is overlooked by most. Most of us believe that oligarchs can continue to impose tyranny on us because they have more power, more money and more military/police under their command to enforce tyranny. However, what most people don’t understand is that this is an illusion. The oligarchs do not have more resolve than us, and if we only showed resolve an army of a million would appear as an army of a billion to them, so weak is their warrior spirit.
By not acting on our awareness, we allow the oligarchs to lord over us, whether it is by lockdown or financial tyranny, and in doing so, we allow the oligarchs to control us not by brute power, but with only the perception of brute power. Even when they use brute force against us, so overwhelming are the numbers of the oppressed that if the oppressed only stood united against those exercising brute force, those trying to enforce rule by brute force would flee in fear. The oligarchs project a perception, and very successfully, of unwavering resolve and courage even during their most cowardly moments of weakness. However, were we ever to manifest greater resolve by transforming our awareness into action, we could flip the formula on them with relative ease, and make them flee like rats from a shinking ship. To prove my point, how much of this information is brand new to those reading it? I imagine very few. And how many people reading this article have ever taken action upon their awareness to improve the lot of us all? I imagine the answer is also very few.
The only trigger necessary to achieve success in this battle is to transform the entire mass, or at least the vast majority of the people that are aware into people that are aware and take action upon their awareness. Inertia states that a body at rest stays at rest. However, a body in motion, as it gains mass, becomes unstoppable. This is what I hope to achieve in writing this article – to provide a spark to a growing body of mass that finally acts on its awareness.
As I stated above, my plea to action will not bring quick riches to its participants as perhaps an investment in BTC at its annual lows would. However, this is for the greater good of everyone on planet Earth as well as to accomplish a shared objective between the crytpocurrency and gold communities of liberating the world from the enslavement capabilities of a digital fiat currency world. Though we may not always agree on the tactics to accomplish this goal, unless you find grave errors in my arguments today, we should unite in this singular mission. This methodology of squeezing gold prices much higher and liberating them from banker price suppression is attainable and sustainable but would require the participation of millions and a lot of patience. Think of it as the HODL plan for physical gold ownership in which everyone will benefit if we all stick to the plan and HODL gold (and/or silver).
Feel free to post a link to this article on any of the most popular Reddit and subreddit groups, including wallstreetbets. By the way, of course this same strategy could be used to squeeze silver prices as we start 2022 as well. We need to strike while the iron is hot because we may not be presented with such an opportunity from such an advantageous position again for decades. If we do not seize advantage while we have it now, we will have no one to blame but ourselves as tyranny spreads across the globe.