- Bill Holter: Gold is Kryptonite to the Dollar!
by Greg Hunter’s USAWatchdog.com
Financial writer Bill Holter says the players in the gold markets are fearful. Why? Holter says, “The GOFO rates, or gold forward rates, in London are negative. They should never be negative, and they are more negative now than any time since 2001. That shows extreme tightness in the metals market. To me, it shows mistrust. It shows that people are saying I want my gold now. I don’t want gold in the future, I want it now. Negative GOFO rates should never happen.” Holter also says that the COMEX market is what he calls “corner-able.”
How much would it take to buy the entire deliverable gold and silver inventory? Holter says, “The way I would put it is it’s a ham sandwich without the ham or the cheese. You are talking about $1 billion would be enough to clean out COMEX gold registered category, and another billion dollars would clean out the silver inventory. It’s nothing. $2 billion dollars would clean the shelves dry.”
With reported fines being levied on banks for gold price rigging, it is clear the gold market is manipulated. Why manipulate prices of the yellow metal downward? Holter says, “Gold is kryptonite to the dollar. The reason why gold and silver prices are manipulated down is to hold up the value of the dollar. And thus, the value to the Treasury market which keeps interest rates down. It allows us to keep interest rates lower than we normally could.”
What would happen if Russia or China spent $2 billion to clean out COMEX? Holter says, “Russia could do that and China could do that. We would see the entire system implode. The question is do they want to do that. This whole scenario is about bleeding gold from the west. It’s about taking gold from the west and transporting it to the east. Do they want to blow up the game before they got their fill? Do they want to blow up the game before we run out of gold? No, they don’t. Is it this expiration that they are going to blow it up? I don’t know, but I do know the COMEX is killable. The question is have we run out of gold to deliver to China and also Russia?”