Gold's longer term direction will be determined in the next few months in my view. We see major support around the $1000 US level and resistance at $1300 in this channel.
Tungsten Filled Gold Bars - GLD ETF WARNING
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This was apparently all highly orchestrated by an extremely well financed criminal operation.
Within mere hours of this scam being identified – Chinese officials had many of the perpetrators in custody.
And here’s what the Chinese allegedly uncovered:
Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.
The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market.Apparently, the global market is literally “stuffed full of 400 oz salted bars”.
If this story is accurate, over one tenth of the world gold supply of gold bars are loaded with tungsten. Fortunately for the ordinary investor, gold coins are extremely difficult to fake and are not part of this fraud. We believe that this is bullish for gold in the near term as the total supply has been overstated because of this fraud.
The implication of fraud on such a scale is mind boggling. Between the ponzi banking system that most countries have, fiat currencies that are produced massively increasing the money supply and contributing to inflation down the road, and now gold fraud, how can the general public trust government and central banking authorities?
It seems to this observer that tangible assets have become some of the few items that are reliable and still connected with reality.