A Gold Market Update From Andrew Maguire

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On Thursday, we finally had a chance to catch up again with Andrew Maguire. After making waves two weeks ago with his forecast of a pending "reset" in the price of gold, this podcast allowed Andy to go into greater detail regarding the condition of the physical versus paper markets and why he is so confident that a breakdown is inevitable and coming soon.

The podcast begins with Andy giving background information on how the wholesale, physical market operates and he provides an update on the current global supply/demand conditions:

  • "We're talking about rock-solid gold bullion in demand from central banks, sovereigns and institutionals which are looking to hedge risk."

Next, Andy describes the process of placing physical bids and relates it to the trading orders that often trail the paper price:

  • In periods of paper price weakness, we have the luxury to "just sit back and wait for the price to come to us" but there is still "competition to get physical orders filled."

Andy next discusses how the paper price was able to be raided once it extended above $1222, all the way to $1264 two weeks ago:

  • "The Banks knew that with the level of wholesale bids at $1222, anything above that level could be freely naked shorted".

To the idea of a pending price reset and paper market collapse, Andy states:

  • "The physical market is quickly sucking the liquidity out of the paper market."

Andy also discusses the paper silver market dynamics and addresses the questions of how and why the silver price is relatively unchanged over the past several decades:

  • "The lifeblood of paper market liquidity must be translated to the physical market, instead."

Much, much more is discussed here so I encourage you to carve out some time this weekend to give this podcast a thorough listen. I promise it will be time well spent.

TF

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  36 Comments

gold slut
Mar 10, 2017 - 12:42pm

Saturday morning treat.

Thanks Craig, Andrew and Turd are two of my favourite metals analysts, so the two of them in conversation is one to keep to enjoy over a Saturday morning coffee. Looking forward to listening.

This is the stuff that makes TFMR the best value metals site on the internet IMHO (and after the last couple of weeks we had, it also stops me screaming!) Now that is a lot of bang for buck.

Oh, and did I mention FIRST. Off for a Sanatogen and a lie down!

AngryCitizen
Mar 10, 2017 - 12:46pm

SILVER !

Yes!

It occurs to me that Turd and his site, (including guests like Andrew), will go down in history as one of the main, early voices that cried out to those who would listen that there was dishonesty afoot in what people thought to be a safe store of labor/energy/value.

We are witnessing history here.

gold slut
Mar 10, 2017 - 12:50pm

@ AngryCitizen

I am intrigued. Could you expand on that?

Ta.

Antony von Clearwell
Mar 10, 2017 - 1:08pm

Interesting interview

Hopefully "this" will manifest though I am still a bit skeptical. Will "it" finally happen this time?

I put a lot of hope in the fact Andrew did not see "these kind" of events before.

I keep it a bit obscure so people will be more tempted to listen :)

indiana rod
Mar 10, 2017 - 1:16pm

How It All Ends

Many have speculated how this will all end.The shorts are trapped. They can't possibly cover without sending the price of silver through the roof.

Here's my guess how it will all end.

Overnight, with the market closed, J P Morgan will cash settle their shorts. When the market opens the next morning JPM's banker buddies get killed and we have the mother of all short covering panics.

J P smiles while his 550 million plus ounces of physical makes J P the richest bank in history.

AngryCitizen
Mar 10, 2017 - 1:22pm

So This Looks Like A Game Changer

Electricity from WATER: Kilowatts in:MEGAWATTS out. Looks like something built in a garage....But so did the Wright Flyer...Uses SILVER btw.

https://brilliantlightpower.com/plasma-video/

(Credit to Turdvillite BOSWELL for finding this.)

October 27, 2016
BrLP presented a commercial SunCell® design at its Industry Day of October 26th. The cell comprised dual liquid silver metal injectors that further served as the source of electricity to cause ignition of the hydrino plasma reaction. The liquid electrodes eliminated the ¼ inch thick tungsten bar electrodes that vaporized in seconds in the prior design run at Columbia Tech on July 20th (See below for the side view video showing 6000K plasma blackbody radiation filling the glove box; a top view video showing the melting and vaporization of the electrodes in seconds, and the picture of the vaporized cell). The commercial cell further being comprised of refractory materials solved the cell vaporization problem. The cell having dual carbon reservoirs, dual molybdenum electromagnetic pump injectors, and a carbon spherical plasma reaction chamber and blackbody radiator. The cell was run in a sealed chamber having a commercial design. The present video shows an excerpt of the testing of the commercial SunCell® design having refractory cell components and injection and ignition systems comprising molten electrodes engineered to last indefinitely. First, the cell was operated with electromagnetic (EM) pump injection only. The EM pump pressure was increased to cause intersection of the molten metal streams. Then, electrifying the opposing molten silver streams initiated and maintained the ignition. Controllable high power density was achieved while avoiding electrode or cell melting and vaporization. It is predicted that with sufficient silver vapor pressure, the power will persist by a self-sustaining hydrino reaction. Moreover, as designed, when the cell is operated as a silver boiler, the EM pump power may be terminated as well such that the parasitic load is zero except for the power consumed in electrolysis of water to provide the hydrogen fuel. In fact, the power did persist at the same level for long duration after the ignition power was terminated (See sections of the run indicated by the ignition-off video captions). Dr. Mills presentation with external links to the embedded videos is available here. If the embedded PDF videos do not work, please use the external links to view the videos.

(The PDF file above may take some time to download. Save the file to your local drive and open it in Adobe Acrobat to watch the embedded videos. Adobe Acrobat can be downloaded here. If you are unable to view the embedded videos within Acrobat Reader, please update your Flash Player and Flash plug-ins. These are available from Adobe here.)


Just....WOW!

indiana rod
Mar 10, 2017 - 1:37pm

Another Thought

JPM may also be holding some of those steadfast longs on the Comex by a Proxy.

Plus, after cash settling their shorts, they go heavily long in London, guaranteeing the Comex would open sharply higher.

This is just my thought. Not that the fine folks at J P Morgan would be dishonest.

gold slut
Mar 10, 2017 - 1:42pm

USSR anyone?

I read some comment recently about how things in the West seem to be mirroring what happened in the last five years or so before the USSR blew up.

The official figures that come out about how well the economy is whizzing along etc really do make me laugh. The latest employment figures in the US are a classic example (tractor production is up five percent over last year comrades!) Here in the UK I recently heard the official inflation figures and it was some laughably low figure. I take my Dad shopping every weekend and he buys the exact same things week after week and prices have risen over the last four months by exactly 10%! And don't get me going when you look at gas and electricity!

When I hear the BS from TPTB about how great things are in the economy and inflation is negligable yadah yadah, over and over I really am thinking now that they really now are getting desperate. Anyone with eyes can see what lying fools they are showing themselves to be.

I think I am going to do some reading this weekend on how things went in the last five or so years of the USSR, just so I can get a feel for how this may pan out.

Mar 10, 2017 - 1:50pm

GS- I think I know what Angry C is getting at

There are certain cultural or economic phenomena (and this one is both) which are truly significant and hugely important, but because those who are typically tasked with either analyzing that area, OR reporting on that area, have a vested interest in the status quo, they ignore warning signs until it is too late. The perfect example of this is the 2007-2009 Mortgage Crisis that brought down Bear Stearns, Leaman, crushed the stock market to an ultimate intraday low of 666 (a perfect symbol if ever there was one), and caused millions of hardworking people who had spent a lifetime saving money in their 401k's to see the accrued labor of their lives vaporized literally in half... in the span of less than nine months time.

Now think about all the Ivy-League PhD's working for all the big banks, brokerage houses, all the "smart money" investors and all the financial newsletter writers who make their livings analyzing the markets... how many of them saw that massive earthquake coming? Nassim Talib saw it, and called it a Black Swan. Michael Burry saw it coming, and nearly blew up his fund betting against the irrationality before he was finally proven right, and made the subject of the book (and movie) "The Big Short". In other words, all the signs were there, if you were looking... but nobody was looking, because they all had a vested interest in maintaining the status quo. They were not seeing reality, they were seeing what they wanted to see, because their paycheck required it.

What is being proffered here is the idea that (1) there is an enormous imbalance between "paper gold", leveraged at minimum 100 to 1 against the physical underlying, and according to Andrew more likely 400 or 500 to 1 in the derivatives market, (2) the absolute insanity that Turd constantly points out of allowing the "price" of gold to be set by the unconstrained issuing of these paper contracts, totally unconstrained by any ties to the physical market- thus allowing the issuers, i.e., the big banks, to cap any rallies, suck in speculators then crush them in avalanches of unbacked paper to take their money regardless of the fundamentals of supply and demand in the actual market for physical gold and silver, and (3) what Andrew is positing here: that there is a change in the winds- that the market structure is changing, and that certain things are taking place that will at first diminish, then eventually destroy, this ability to issue unlimited paper gold... thus freeing the price of gold from this artificially created constraint.

In a nutshell, that is how I see it- he is the Nassim Talib of the gold market, saying that things are changing and that at some point in the very near future, this is going to change and price is soon going to be determined by physical demand rather than unlimited paper creation by the "market makers". Thus this is potentially an earthshaking change, and Turd and Andrew are trying to alert people now, and Angry Citizen is saying that a few years from now, people will be looking back at these posts and saying "God Damn, somebody saw this thing coming..."

imfd
Mar 10, 2017 - 2:07pm

Listened twice

and will be going back for a third listen this weekend, many thanks !

Key Economic Events Week of 2/24

2/25 9:00 ET Case-Shiller home prices
2/26 10:00 ET New home sales
2/27 8:30 ET Q4 GDP second guess
2/27 8:30 ET Durable Goods
2/27 11:30 ET Goon Evans speech
2/28 8:30 ET Pers Income and Spending
2/28 8:30 ET Core Inflation
2/28 9:45 ET Chicago PMI

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Key Economic Events Week of 2/24

2/25 9:00 ET Case-Shiller home prices
2/26 10:00 ET New home sales
2/27 8:30 ET Q4 GDP second guess
2/27 8:30 ET Durable Goods
2/27 11:30 ET Goon Evans speech
2/28 8:30 ET Pers Income and Spending
2/28 8:30 ET Core Inflation
2/28 9:45 ET Chicago PMI

Key Economic Events Week of 2/17

2/18 8:30 ET Empire St Manu Idx
2/19 8:30 ET Producer Price Idx
2/19 8:30 ET Housing Starts & Bldg Perms
2/19 2:00 ET January FOMC minutes
2/20 8:30 ET Philly Fed
2/21 Fed Goons all day at Chicago Conf.
2/21 9:45 ET Markit flash Feb PMIs

Key Economic Events Week of 2/10

2/11 10:00 ET Job Openings
2/11 10:00 ET CGP Hump-Hawk House
2/12 10:00 ET CGP Hump-Hawk Senate
2/13 8:30 ET CPI
2/14 8:30 ET Retail Sales
2/14 9:15 ET Cap Ute & Ind Prod
2/14 10:00 ET Business Inventories

Key Economic Events Week of 2/3

2/4 10:00 ET Factory Orders
2/5 8:15 ET ADP Employment
2/5 9:45 ET Markit Service PMI
2/5 10:00 ET ISM Service PMI
2/6 8:30 ET Productivity & Unit Labor Costs
2/7 8:30 ET BLSBS
2/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 1/27

1/28 8:30 ET Durable Goods
1/28 10:00 ET Consumer Confidence
1/29 10:00 ET Pending Home Sales
1/29 2:00 pm ET FOMC Fedlines
1/29 2:30 pm ET Powell presser
1/30 8:30 ET Q4 GDP first guess
1/31 8:30 ET Pers Inc and Spending
1/31 9:45 ET Chicago PMI
2/2 10:00 pm ET Chiefs win SB LIV

Key Economic Events Week of 1/13

1/14 8:30 ET CPI
1/14 9:00 ET Goon Williams
1/15 8:30 ET PPI and Empire Fed
1/16 8:30 ET Retail Sales and Philly Fed
1/17 8:30 ET Housing Starts
1/17 9:15 Et Cap Ute and Ind Prod

Key Economic Events Week of 1/6

1/7 8:30 ET US trade deficit
1/7 10:00 ET ISM Services PMI
1/7 10:00 ET Factory Orders
1/8 8:15 ET ADP employment
1/9 8:00 ET Goon Chlamydia speech
1/9 1:20 ET Goon Evans 2:00 ET Goon Bullard
1/10 8:30 ET BLSBS
1/10 10:00 ET Wholesale Inventories

Key Economic Events Week of 12/16

12/16 8:30 ET Empire State Manu Idx
12/16 9:45 ET Markit flash PMIs Dec
12/17 8:30 ET Housing Starts and Bldg Perms
12/17 9:15 ET Cap Ute and Ind Prod
12/19 8:30 ET Philly Fed
12/20 8:30 ET Final guess Q3 GDP
12/20 10:00 ET Pers Inc and Spending
12/20 10:00 ET Core Inflation

Key Economic Events Week of 12/9

12/10 8:30 ET Productivity and Unit Labor Costs
12/11 8:30 ET CPI
12/11 2:00 pm ET FOMC fedlines
12/11 2:30 pm ET CGP presser
12/12 8:30 ET PPI
12/13 8:30 ET Retail Sales
12/13 10:00 ET Business Inventories
12/13 11:00 ET Goon Williams speech

Key Economic Events Week of 12/2

12/2 9:45 ET Markit Manu PMI
12/2 10:00 ET ISM Manu PMI
12/2 10:00 ET Construction Spending
12/4 9:45 ET Markit Services PMI
12/4 10:00 ET ISM Services PMI
12/5 8:30 ET Trade Deficit
12/5 10:00 ET Factory Orders
12/6 8:30 ET BLSBS
12/6 10:00 ET Wholesale Inventories

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