Kyle Bass’s Warnings about Fractional Reserve Gold Exchanges were Prophetic

post dateAugust 3, 2015  •   post categoriesBRICS, China, City of London, Economy, Freedom, Manipulation, Russia, Silver & Gold, US Dollar  •   post comments number17 comments

Banks Fork Over Enormous Piles of Metal to Stackers

For those who thought June’s stacking strength was merely a fluke, well, let’s just say that July has put all those doubts to rest.  The record amount of metal tucked away by stackers and big money in July is the absolute strongest seen in years.  Everywhere you look around the world, in every precious metals commentary, you’ll see the words “record” or “unprecedented”…and it is putting enormous pressure on the crooked, fractional-reserve gold “exchanges”, like our good pals at the Comex!

In fact,  it’s safe to say that the boys running that con are putting in long, sleepless nights, trying to figure out ways to stretch this thing out just a wee bit longer.  One look at this from Nick Laird, and you’ll instantly see why!

Stacker 4

Brothers, the position of the banksters is becoming unbelievably strained in the gold/silver suppression scheme.  That chart above spells overwhelming stress for these crooks and their dying system .  However, while it reveals several things that are obvious, some other revelations are hidden.  First things first though, let’s take a look at the gobsmacking line item in the graph.

Insane Leverage

Just take a look at the bottom line, at the long-term leverage on the Comex exchange.  You’ll notice several things taking place within the clandestine world of gold-rigging:

At just under 120 “owners” per oz of deliverable gold, claims are roughly the highest they’ve ever been.  What does this insane leverage mean?

Well firstly, it proves that “kooks” like Kyle Bass, who insisted as a fiduciary, that his employers take physical possession of the $1 billion in gold they purchased rights to, were spot on, years in advance!  Just take a brief refresher on why he insisted on taking delivery in the first place.

Even if you’ve seen it before, watch it again, and then compare those figures to where we are now.

Fascinating! Did you catch the actual numbers that made him uneasy?

He mentioned $80 billion in claims on gold, and only $2.7 billion in deliverables….

In other words, this sharp, Wall Street vet, was made extraordinarily uneasy by a “mere” 30 to 1 leverage on the Comex(which at that time, was the highest in history)! 

30 to 1 is all it took for this man to remove $1 billion dollars of gold from their fractional reserve bullion warehousing/delivery system.

Well, brothers, I ask you: what are the “deliverables” now?  

There are now 351,519 oz of deliverable gold, valued at roughly $387 million dollars!  This means that deliverables, in dollar terms, are 7 TIMES LESS than they were when he took the gold and ran!  

The amount of gold Kyle helped take possession of alone, was three times greater than what remains on the Comex “deliverables” line item today.

This means that if another “Kyle Bass” today tried to remove a mere $1 billion in gold from “registered” gold, something exceptionally ugly would take place!  

This man saw the whole situation as a highly dangerous farce even back then!  But that’s not the only thing he was right about…for that chart above reveals something else that’s very telling as well!

When he asked the head of Comex/Nymex delivery what would happen if even 4% of owners showed up to get their gold…he was told:

“Price will solve everything”.  

Of course, what that director meant by that 4 word statement, was that the Comex was a real exchange, where supply and demand dictated price, and where a low enough supply would actually bring price high enough to bring new gold supply onto the market! 

Again, I ask you….is that what has happened?

No, in fact, the opposite has occurred! The entire time that price has caved, supply has crashed to the lowest level in 20 years! Especially, when you view the Comex deliverable category since the Spring 2013 massacre…that was the moment in time that the game changed forever.  

Ever since the Spring of 2013, the leverage broke through the “ceiling” of 30 claims per ounce, and has never gone back under it again!

Ohhh, to pick the brain of Mr. Bass at this moment, when leverage has increased nearly 300% from when he took delivery!  Do you think his advice as to the wisdom of fiduciaries moving to “get the gold” while they can, would still apply?

You know it!

And if what happened late last week is any indication…then some very big somebodies are taking that advice…in spades, friends!

 “Grabbing the Gold”

Last Thursday, somebody showed up and made off with a sizeable quantity of gold!  In fact, on that day, JP Morgan and HSBC’s vaults were relieved of that cumbersome, “useless”, yellow rock to the tune of many tonnes!

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Just look at that!  Roughly 270,000 ounces(nearly the entire amount left over in the deliverable gold category) vanished in a blink!

SD Bullion

At this late stage of the game, many other folks like Mr. Bass are coming forward, and the only way the crooks involved with this scam have kept the casino open, is by convincing enough “eligible” gold holders, to part with that gold(on terms that we aren’t privy to) in order to satisfy those who want to take delivery.

The big question though, is how long can they continue to do so?  My personal guess is not much longer.  After all, the world economic scene is looking just as bad as the Comex is!

From the collapse in the Chinese stock market, to the ongoing Greek/EU tragedy, to the implosion seen in worldwide shipping, the global growth and trade mechanisms are breaking down on multiple levels.

Who on earth would wanna part with their gold in that environment?  At least, not without a handsome payday, right?

I want to caution those who think that the Comex leverage insanity cannot possibly get worse.  Believe me, it can!  Before this is all over with, that already parabolic number of claims per ounce could literally soar to unimaginable heights.

Let’s put it this way, since the previous “all time highs” of 30 to 1 leverage, that made Mr. Bass do what he did, leverage has quadrupled to nearly 120 to 1.  It could theoretically do so again, from here, before this is all over with.  Of course, that would take leverage to nearly 500 to 1.

Sounds crazy, right?  I’m sure most folks thought the same thing….back at the “benign” figure of 30 to 1.  This Comex mechanism is coming unglued, but it could get much crazier, before it all ends.


If another powerful person like Mr. Bass tried to remove even $1 billion in gold from the Comex, it’s highly possible that it would be too late to do so…In fact, I want us to think on this right now: it’s highly possible than many such people are being told “no” for large delivery requests right this moment.

It may sound like a cliche’, but that’s why we stackers say, “it’s better to be years early to this party, than even one day late”…because for many who thought they owned large reserves of gold bullion on the Comex, it is already too late.

It’s a good thing that all of us “small fry” folks, had the good sense to know the Kyle Basses of the world were right all along…rather than the Jon Nadlers.

I read one bloke last week, a paid gold bear, who claimed that gold was going to $350 per ounce, basically obliterating any gains made in gold since the bull market began 13 years ago.  Physical gold is never going anywhere close to that ever again, but I will say this…it is possible for these crooks to take a “Comex deliverable ounce” to any paper price for a very brief, truncated period of time.

That does NOT mean it will be possible to actually get an ounce of gold in your hand, at anything near that final price, during that very brief window.  Don’t play with fire here…don’t be like these gold and silver riggers.

If you have a mind to stack some more, don’t bet the farm on the prospect of picking some up months later at lower prices. Even if the banksters move prices lower from here(and they can), the premiums, which are already stair-stepping higher, will absolutely astonish you at that point in time…and wipe out any price advantage you thought you were going to receive.

WHEN this evil scam goes down, and this fake exchange is taken to the cleaners for good, we’ll all see things we’ve never seen before.  WHEN things blow up in gold, it will be curtains for silver rigging as well.

At that point, and at long last….the pent-up energy of the past 5 years in silver will finally be unleashed.  To say that you’ll then see the price firework show of your lives, will be a crude understatement…

Stacker 8

SD Bullion


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