Today London metals trader Andrew Maguire spoke with King World News about who smashed the price of gold today and why as HSBC just shocked clients by announcing the closure of all gold vaults in London! Maguire also discussed what is happening in the physical gold market as well as what the bullion banks are up to.
Today’s Gold Smash Is Western Government Intervention
Andrew Maguire: “Eric, here we are again after another heavily gamed Non-Farm Payrolls (NFP) report week that evidences just how ‘managed’ the paper markets are. Given the strong Indian and Chinese demand above $1,200 and the currency crosses related to gold that were net-positive all week, there was no reason to paint gold down ahead of today’s NFP. Given that the physical market is strong, the Comex-centric selling has all the hallmarks of ‘official’ selling.
HSBC Just Shocked Clients By Announcing Closure Of All London Gold Vaults!
The other big news this week was HSBC giving only 2 months’ notice to clients that they are closing down all 7 of their London gold vaults! This is an unprecedented move. Why do you think this is? It is because transparency is coming. There is no profit in plain, vanilla bullion banking any longer.
I also suspect given the lack of warning and lack of any press release that the majority of these clients will be unable to make other vaulting arrangements in time. HSBC will no doubt make it easy for these clients to sell the bullion back to HSBC, who will then use this bullion inflow to repay some underwater positions. So something is brewing behind the scenes, Eric, and this is one more sign major changes are coming.”
Full article: Andrew Maguire – Who Smashed Gold Today And Why As HSBC Shocks Clients By Closing All London Gold Vaults! (King World News)