“Allocated” Gold Scandal To Shock The World, $5,000 Gold Prices: ‘Crazy’ Jim Willie (GLD, SLV, IAU, PHYS, AGQ)
Dominique de Kevelioc de Bailleul: Following trader Dan Norcini’s (of JSMineset) report that major banks now hold net long positions in the gold market for the first time in recent memory, the eery feeling of the next shoe to drop in the global financial fiasco reaches a fevered pitch after another newsworthy article by The Hat Trick Letter’s Jim Willie posts to the public domain. In his latest read, Willie pens that a protected source told him that yet another scandal will soon surface at the money center banks—this time, the fraud will be exposed in the “allocated” gold business. Get my next ALERT 100% FREE
“My firm belief is for event #6 to be Gold Allocated Account raid scandal,” Willie states in the second of an unusual back-to-back open letter to investors, titled, Extreme Danger Signposts.
Through a well-guarded source, the American expatriate from Costa Rica estimates that 20 to 40 tons of gold bullion held in allocated accounts riddled throughout the Western banking system have been quietly and illegally replaced with paper certificates—paper promises to secure the real thing, physical bullion. Customers who believe they hold physical gold will wake up one day and be told that they, too, have been defrauded in another MF Global-style swindle, according to Willie’s source.
“My gold trader source is adamant about the level of raids, and expects a scandal to shake the Western world banking system to the core, resulting in massive prosecution,” Willie adds, who also asserts that, this time bankers will be criminally prosecuted and jailed.
Incidents of illegal foreign currency swaps by the Fed to bailout Europe, the MF Global scandal, PFG fraud, JP Morgan’s blown-up swaps, accusations of fraud at the NY Fed post-Lehman crash, and LIBORgate clearly demonstrate that Hat Trick Letter’s ‘Crazy’ Jim Willie isn’t really crazy after all. He has boldly stated for years that looting, lying and fraud will eventually become so blatant and pervasive in the banking sector that the global financial system will collapse from public shock, panic and, eventually, distrust, with a panicked public incited by a monstrous gold swindle coming next on the Willie time-line of events to financial Armageddon.
“WHEN THE ALLOCATED GOLD SCANDAL HITS, THE GOLD PRICE WILL RISE TO MULTIPLES OF THE CURRENT PRICE,” stated Willie [large caps, his] “IT WILL BREAK RANKS FROM THE PAPER CLUTCHES AND PHONY PRICE DISCOVERY METHODS. THE GOLD PRICE WILL EASE PAST THE $5000 PER OUNCE MARK, AND TAKE SILVER ON A GREAT UPWARD RIDE. YOU SEE: THE BANKERS WILL HAVE TO REPLACE THE GOLD BY OPEN MARKET PURCHASES AS RESTITUTION!!”
And Egon von Greyerz of Swiss-based Matterhorn Asset Management agrees wholeheartedly. The market veteran told King World News he suspects central bank statistics regarding its gold holdings are as corrupted as the banking cartel’s entire business model, and when brought to light as another scandal to grossly outdo even LIBORgate, will panic the world into physical gold in a manner consistent with Willie’s moonshot prediction for the yellow metal. But von Greyerz takes it a step further; he expects the gold Ponzi scheme will collapse by the close of 2013, soaring gold prices to shocking heights, rapidly.
“Of course the banks don’t have the physical gold to satisfy their commitments,” von Greyerz told King World News. “Central banks, and most probably the Fed, don’t have the gold they say they have. The 8,000 tons the U.S. government is supposed to hold is probably not there.
“The IMF’s 3,000 tons is probably double-counted and not there either. And banks don’t even have the allocated gold they say they have. …
“The effect of this is the paper markets will not be trusted. So people will rush into physical gold. I see gold reaching $3,500 to $5,000 in the next 12 to 18 months. Within 3 years, I see the gold price reaching at least $10,000.”
Too many trusted analysts have come out recently with bold predictions—predictions which come many times via carefully guarded sources privy to official communiques, tips and ‘tells’.
Monday, James Turk says the metals will explode this summer. He places a high-confidence level on that call.
Jim Rickards predicts the Fed will make an announcement that includes highly unusual policy moves that could include open-market purchases of equities, spooking traders into thinking that desperation has overwhelmed the Fed.
Last Wednesday, Stephen Leeb couldn’t be more bullish on precious metals, adding, the “real scandal here is the banks don’t have the gold the customers are paying them to have on deposit.” Leeb expects at some point, gold and silver could be sanctioned as eminent domain.
Rick Rule believes the markets are near an “epic collapse in confidence.”
Last Thursday, Bill Flerckenstein says the Fed is about to “panic and do something big.”
And there is more, much more. Michael Pento reports a record euro484 billion drain at the ECB—within one day! And former Office of Management and Budget under President Ronald Reagan, David Stockman, told Bloomberg, Monday, “We’re at the fiscal endgame.”
And people called Jim Willie, crazy?
Related Tickers: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), iShares Gold Trust (NYSEARCA:IAU), ProShares Ultra Silver ETF (NYSEARCA:AGQ), Sprott Physical Gold Trust (NYSEARCA:PHYS).
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