Speaking of John Paulson, one of my top sources phoned today with the following:

Someone he knows personally was recently at a Paulson investment presentation, with gold the star of the show, and who did he trot out in as his "cow bell," none other than Alan Greenspan. Heavily paid consultant Greenspan told the attendees that the structural problems are so severe that the central bankers of the world have NO CHOICE but to go on printing money in extravagant fashion and that gold is clearly the place to be.

What a piece of manure Greenspan is, a traitor in a way actually. Who knows if he has told the real gold story to Paulson and his role in the gold price suppression scheme, but no one in the world knows better the extent to which the central banks of the world, including the US, have gone through their gold reserves. No one knows better how little gold, or ammo, The Gold Cartel has left to meet the growing demand for physical gold around the word.

Why is Greenspan such a turd? Because this bum sold out his Ann Rand gold principles to The Gold Cartel and facilitated their scheme while Fed Chairman. He was the one, along with the new Fed head William McDonough, who in 1994/95 joined the Board of Directors of the BIS, and Treasury Secretary Rubin put the gold manipulation program on steroids. He was the one who told the US Congress in July of 1998 that "central banks will lease gold in increasing quantities should the price rise." He was the one during an FOMC meeting in 1993 who suggested the US get physical gold into the marketplace for "thermometer" purposes.

As a result, the gold price suppression scheme led to a broken thermometer of the true health of the US financial system, which led directly to the recent financial market collapse. Greenspan, the egomaniac flip flopper, is now raking in the dough, taking advantage of what he secretly engineered in the gold market while Fed chairman, while the average American suffers from his clandestine role in this super scandal.

The guy is sickening!

Yet another day of zero silver movement into or out of the dealers’ inventory! AND yet again ZERO gold moved into or out of the dealer inventory. Movements in the customer inventory were not much to talk about so I won’t!

There were a very large 771 delivery notices issued in the DEC gold contract. The DEC gold contract total for the month is 7,414 contracts or 741,400 ozs. JPM issued 656 notices but stopped 430 of them and Goldman Sachs issued none and stopped 303 notices. All of a sudden the Gold Cartel Head Honchos are front and center stage of delivery notices. Something big is happening.

There were 48 delivery notices issued in the DEC silver contract. The total delivery notices for the month in silver stand at 2,226 or 11.1 Mozs. JPM issued 15 notices and stopped 15. BNS issued none and stopped 4.

The Contango in silver fell off a cliff toward backwardation. There is only 0.1 cent of contango in silver DEC/JAN contracts and only 0.9 cents DEC/FEB contracts (this compares with 0.7 cents and 1,5 cents yesterday). The contango in gold DEC/JAN is only $0.1 and $0.5 for DEC/FEB. This is razor thin contango. The rapid drop in silver contango suggests that physical ownership NOW is becoming much more attractive than a paper promise for virtual metal later!

There are still 3,654 contracts of OI in DEC gold. Oh and what is this I see? The OI in December silver INCREASED by 33 contracts from yesterday to 694 contracts. That is someone buying for delivery. No wonder the contango dropped.

The market action is displaying the sort of volatility that ejects all the weak players before a major upleg. Don’t get whiplashed out at this stage. There are all the subtle tell tale signs that the cartel is huffing and puffing for the real stuff. The COMEX paper game is just the right hand of the magician keeping your eyes off his left hand…the London OTC LBMA market.
Cheers
Adrian