Gold price pops higher on the week – and the curious case of the $60bn Loco London gold fraud
The gold price has popped higher today in most major currencies. In terms of $ gold it is trying to get back above $1600.
In terms of € gold the price action is really starting to get interesting. First up € gold is now only 3% away from making fresh all time closing highs, and on a monthly closing basis € gold needs to move just €16 higher from here to make all time monthly closing highs.
And £ gold hasn’t been left out of the ‘bump’ higher today – its trying to get back above £1030. A level which if can be held into the close on Friday will be £ gold’s best weekly close in 6 weeks.
Which brings us on to the curious case of the $60bn Loco London gold fraud – a fraud which is BIGGER than Bernie Madoff and his ponzi scheme no less. Now, we say ‘curious’ because you would be forgiven for thinking that one of the biggest criminal frauds ever committed on the globe would be pretty big news – not when the vehicle involved in the fraud is gold it would appear. Only ONE western outlet has run with the story, and that has been Forbes
While this has not been widely reported in the Western media, news broke this week of a massive illegal gold-futures trading scam in China. Not only does it underscore the growing hunger for gold among the newly minted Chinese middle class, but also hits home the rationale for owning physical gold, according to one U.S. based asset manager.
Over 5,000 investors were bilked out of 380 billion yuan, or $59.62 billion in a scheme involving Loco London gold since 2008, according to a report in the China Daily.
While details are unclear how the scam worked, the implications could be bullish for gold in a number of ways. Perhaps gold prices could be at even higher levels than they are right now, if this money had been properly invested.
It would appear that wealthy Chinese investors thought they were buying gold, but rather than take delivery of the physical metal, investors accepted ‘paper gold’ – and rather than buy any actual gold for their clients the fraudsters appear to have simply made off with the money – some $60bn.
This case highlights three things – firstly a shocking reluctance to report on any type of fraud/manipulation by the western media when it comes to gold.
Secondly, that investors in gold really can’t beat the physical when it comes to investing in gold.
And thirdly, if this story is correct in its numbers, then it means that there has been some £60bn LESS demand in gold than there should’ve been – after all that’s $60bn’s worth of gold transaction that never took place.
We’re going to do a little more digging around this story because the lack of reporting in the western world raises our eyebrows quite considerably – do we have another LIEbor-esque scandal on our hands here with possible big bank involvement, this time in gold?
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Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-pops-higher-on-the-week-and-the-curios-case-of-the-60bn-loco-london-gold-fraud-7458/