All the Big Banks are Saying Gold Will Crash in 2014 But That’s Not What Will Happen

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Big moves are coming in the price of gold at the start of 2014 but that’s not the story the big global banks are selling right now. Goldman Sachs’s chief commodities analyst Jeffery Currie is on record saying that gold will crash back to the $1,000 mark, or even lower, in 2014.  United Bank of Switzerland says silver will flounder around the $20.50 mark in 2014 and predicts $1,200 gold for 2014 while Simon Weeks of ScotiaMocatta was the most pessimistic, predicting gold will crash to $800 or even to $400 a troy ounce in 2014.  So why are all these scare tactics being employed by these large global banks? The answer is simple. A rising gold price hurts anything denominated in fiat currencies like the unsustainable quadrillion dollar derivatives market and rising European and US stock markets. Furthermore, it is in the best interest of global banks to push an agenda of fiat currency denominated products continuing to rise and of hard assets continuing to fall in 2014 even though there is likely to be significant downward volatility in US and other developed Western stock markets at some point in 2014. Though gold will close 2013 lower in price than it started the year, gold had closed higher than it opened for the past 12 consecutive years in a row. Does that fact surprise you? If it does, there are two reasons for this.  One, the global banking industry never once advocated purchases of physical gold during the 12 consecutive years gold closed higher than it opened from 2001 to 2012. They may have persuaded their clients to purchase their easily manipulated fractional reserve gold ETFs, but never once were they vocal about having their clients purchase the much more reasonable and wealth-preserving physical gold bullion. Secondly, with the massive load of propaganda that global banks disseminate through the worldwide media, most people have no idea that this will be the first year gold closes lower than its opening price after 12 consecutive years of rising prices. Imagine if the S&P 500 had 12 years of consecutive rises? Every single financial magazine would be deeming this hypothetical rise as the greatest bull in global history. However, the reality of the gold bull is never once mentioned to clients of global banks.

 

In any event, when we look at the facts, the facts paint a markedly different picture in the set up for price recovery of gold and silver in 2014 than the continued crash in prices painted by Goldman Sachs, UBS and ScotiaMocatta.  Very strong circumstantial and concrete evidence exists that financial products like the GLD (gold ETF), the SLV (silver ETF) and paper gold and silver futures products run on a fractional reserve system much like the global banking system of fiat currencies.  In fact, well over four years ago, I questioned the validity of the claim that the GLD and SLV were 100% backed by physical gold and silver and laid out the various reasons for my strong skepticism of this claim in my July 15, 2009 article “The GLD and SLV: Legitimate Investment Vehicles or Not?”.

 

The amount of negative sentiment that I’ve been seeing, even among the most robust of gold and silver advocates at this time, due to the repeated attacks by the Western banking cartel and the BIS on gold and silver spot prices, certainly is indicative of a bottom forming at the current time. In addition, many of the bullion banks with COMEX warehouses have been hemorrhaging physical gold during this takedown in spot prices this year, very likely making it very difficult to continue their effectiveness in keeping paper prices suppressed during Q1 2014.  Since April 30, 2013, the bullion banks have lost an astounding 80% of their cumulative registered physical gold stored in COMEX warehouses, with JP Morgan leading the way with 89% of their registered physical gold depleted. Unsurprisingly, ScotiaMocatta, one of the banks with the most dire price predictions for gold in 2014, has lost an astounding 77% of their registered physical gold over this same duration.

 

Certainly we may see temporary weakness in gold and silver prices again in the couple days following Christmas. However, a gold collapse to $800 or $400 a troy ounce, as ScotiaMocatta’s Simon Weeks has predicted will happen in 2014, is patently ridiculous given the massive amounts of losses of physical gold suffered this year by these very bullion banks from COMEX vaults as a result of their repeated manipulations of the spot gold price lower. Certainly, this massive loss of physical gold will certainly make their fractional reserve gold scam much more difficult to execute in 2014. In fact, I would say just the opposite of these banks’ dire predictions for gold is likely to happen to open the New Year.  Instead of a gold price crash to start the year, we almost certainly will see some significant rebounds in the price of gold and silver. Furthermore, anyone that is tired of these banking scams can contribute to a strong start in gold prices in 2014 by simply converting your fiat currency into a few ounces of gold to usher in the New Year. If individuals merely joined China, Russia and Middle Eastern nations in heavy physical gold buying to kick start the new year, this would place a great deal of pressure on the bullion bank fractional reserve gold and silver system that the Western banks utilize to suppress prices of precious metals.

 

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Posted: Tuesday, December 24th, 2013 @ 12:58 am
Categories: gold manipulation.
Tags: , , , , .
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  • Fred Hayek

    Good stuff, Mr. Kim.
    I frequently post at a site not related to finance at which there’s a section for discussing financial issues. I’ve been a strong advocate of purchasing gold and silver and have had heated arguments with a couple of financy boys as I like to call them. Both of them tried the argument from intimidation. *I* work in finance. *I* know about these things. They both proclaimed their knowledge and their impartiality in regard to any financial issue or product. But they were stuck when, a la your point #1, I asked them, with their comprehensive knowledge and lack of bias, if they’d recommended any of their clients buy gold or silver at any point from 2001 to 2012. They never had, either of them, for all their pretense. Gold is the enemy of game players and, in the end, that’s all many of the people employed in the world of finance are, game players.

  • Martin

    Why hasn’t anyone yet figured out that while we see the POG (Price of Gold) in the $1,200-$1,300 most recently, yet huge Buying keeps coming from China, Asia, even India despite the apparent fact that TPTB managed to Puppetize somebody high enough in India to do all they could to suppress buying, is it so hard to figure out that the T-Bonds, that nobody has a problem saying is Impossible for us to Pay and Cover, are being used at no more than 50 cents on the USDollar to Buy gold for China. So, IOW, Gold is actually being Transacted at least at Double the POG we see, Over $2,400 in T-Bonds

  • DVDBeaver

    You say “So why are all these scare tactics being employed by these large global banks?” but what if they really feel the paper price of Gold will decline in 2014?

  • Besides his role at Scotia and LBMA it would be potentially interesting to know which other organizations Simon Weeks is a participant in; including his father’s occupation and who he married. Unfortunately Jim Phelps isn’t available to delve into it.

  • silver

    from what I have read anyway not sure if it is true or not, all the gold that jpm has on delivery for this month and that all the big bullion banks are starting to go long on gold this is totally opposite of what they are saying which we all know goldman sachs is famous for doing

  • I believe gold is in fact going to hit 1000-800, but not because of something tangible, several factors will drive it down by manipulating its prices, that and also the false sentiment of safety going on walt street.

    Although I agree in the fact that Gold is going to rise by a lot in the incoming years, and as beaver said, maybe they truly don’t know what is going to happen, if it happened in 2008, why wouldn’t it happen again?

  • Great post! It’ll be interesting to watch how this ends up going. Thanks for the info!

  • Gold Value

    Why would China not be buying physical gold !!

    If the western central banks are manipulating the price down, it makes sense to buy a commodity that won’t lose value, in the current currency war ..

    Secondly, they give back US dollars to the west … reducing there risk over time of holding large amounts of a devaluing reserve currency.

  • Bob Graham

    When the forces of history force the repair of the London Fix (whether it means whacking both ends of the phone or completely blowing up both London and New York City), when the dust settles, the world will see the return of the gold standard. How long?