Bullion Banks Have "No Way Out" From Big Gold Shorts
We appear to be witnessing the early stages of a breakdown in the paper gold markets on Comex and in London, brought forward by central banks committed to accelerating their inflationary policies in an act of macroeconomic desperation to save their government finances and their economies. The method employed is a dead ringer for an earlier experiment in France exactly three hundred years ago when John Law’s Mississippi bubble imploded, destroying his currency, the livre.
If you bind the fate of financial assets to that of your fiat currency, as John Law did, and which is now the policy of the Federal Reserve, when the bubble pops the currency goes pop as well. This outcome is so obvious that the smart money is now getting out of fiat and into physical gold and silver, as witnessed through deliveries on Comex active contract expiries and the disappearance of all physical liquidity in London.
This being the case, a gathering stampede out of paper currencies and derivative contracts into physical bullion has just started. Unless it is somehow stopped, it will destroy paper markets and with them the banks that have benefitted from them over the last forty years. The acceleration in the destruction of fiat money will gather pace in the next few months, and anyone who spouts macroeconomic nonsense instead of acting in the face of these developments will end up with nothing.
https://www.zerohedge.com/commodities/bullion-banks-have-no-way-out-big-gold-shorts