The warning signs are increasing as the death of the Global Fiat Monetary System approaches. The bullion banks lost 88% of their Comex registered gold inventories over the last year and are now rushing to build their stocks to satisfy future deliveries.
Here we can see that since April of 2013, the Comex Gold Registered Inventories declined 88% from 3 million oz to a low of 369,212 oz at the end of January:
According to Harvey Organ’s interview, 20 Tons of Gold “Kilo Bars” Withdrawn From JPM Vaults & Headed to Hong Kong! , 1.3 million oz of gold were standing for delivery in the beginning of February. However, Harvey believes the majority of these contracts were settled with cash.
It is no surprise that a large percentage of these contracts were cash settled, because there wasn’t enough available gold in the registered inventories. In just the past three days, the bullion banks transferred nearly 200,000 oz of gold from their Eligible inventories to their Registered.
Here we can see that the bullion banks only had 439,900 oz of registered gold in the inventories on February 4th. During the next three trading days, the bullion banks transferred 197,590 oz from the Eligible to the Registered category.
It is quite interesting to see the bullion banks rush to add 200,000 oz while the majority of contracts standing for physical delivery in February were settled with cash.
Monetary scientist, Antal Fekete has warned about the collapse of the fiat monetary system for several years. He stated the end will be close at hand when gold on the futures market goes into backwardation.
Backwardation basically means the present cash price of gold is higher than the futures price (the opposite is normal state in the futures market). Thus, gold traders are concerned their physical gold will be returned in the future.
Mr. Fekete stated in his interview, Gold and The “Red Alert” For Collapse Of Fiat Currency, that the world is heading for a disaster unless gold backs the global monetary system.
Mr. Fekete also believes there isn’t much time for the world to make this transition to a gold-backed monetary system because there is a flashing “RED WARNING LIGHT” as gold has traded in and out of backwardation on the futures markets since July of 2013.
Furthermore, Fekete believes that the leasing of gold (since the late 1990’s) also ended in July of last year as investors and institutions are no longer willing to part with their physical gold knowing they may not receive the metal back in the future.
Even though there seems to be a calm in the markets as the Dow Jones average jumped 165 points today after shrugging off lousy employment figures, the financial system continues to disintegrate as currencies throughout the world are devalued.
The fiat currency dominoes are falling. At some point, the falling dominoes will reach the U.S. Dollar and then it will be too late to buy gold or silver.
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