Gold hit $1365!

(Don't forget about all the crooked scumbags all meet this weekend in Washington - central bankers and IMF G20 crooks)
(plus long weekend profit takers then right into aggressive Treasury Auctions)

Massive Physical Gold Buyers Just Below These Levels


After the drop in gold and silver today, King World News contacts out of London have confirmed massive physical purchase orders on gold between $1,308 and $1,317. One source who wishes to remain anonymous stated, “It will take a massive amount of physical gold to take out those levels. You can have shenanigans in the paper market, but there is an underlying physical market here in London and that is where the floor appears to be for now.”


[link to kingworldnews.com]

"...confirmed massive physical purchase orders on gold between $1,308 and $1,317. ..."

Unless those purchasers are to take physical delivery, this is nothing more than paper contracts. We all know that gold is in short supply. They took their paper profits, then jumped back in when the price dropped, and are looking for the next run-up. Wash, rinse, repeat. Betcha Goldman-Sachs made a killing!
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For purchases of that amount, how easy could it possibly be to demand delivery? Surely the billionaires could easily 'break the bank' if they wanted. This to me alone shows that the "elite" choose to be a part of the system

Demanding delivery is one thing; taking possession another.

Many "investors" "take delivery." However, this only means that you receive a paper certificate that you are "owner" of 400 ounces of gold or more still at the bullion warehouse.

The bullion bank can then "loan" out your gold in a "lease" from you and not only are you left holding a paper certificate claiming gold at the bullion bank, but then your paper only lays claim to a lease because the bullion bank loaned out your gold.

Paper, paper, and more paper.

Taking possession is where you pay to have the gold shipped to you - over and above "taking delivery." Bullion banks hate this because there isn't enough gold to cover all these contracts.

So taking delivery isn't all as final as it sounds. Buyers must take possession. Otherwise the bullion bank will "fractional reserve" everybody's gold.

The paper price means little- it is a massive buying opportunity to attain physical gold possession while the paper price is still depressed.

Wow, thanks for your time and thoughtful explanation of the terms and how they work. I had no idea about the possession term, and thought delivery meant the same thing.

I agree, it is another perpetuation of the fractional reserve system. What if the wealthy were to awaken to all ask for possession of the metals, as in a metals run? It should surely happen one day as panic strikes. Could it be another powder keg, or a catalyst?

I think in the next 20 hours we will see $1365 again at the current rate

[link to www.kitco.com]