Alasdair Macleod Part II – The Central Banksters Dilemma

Interview: Alasdair Macleod, Head of Research, GoldMoney.com

The central banks are buying gold and we are told they are selling gold, how is this possible? Why would this be happening? What purpose does it serve?

Alasdair is of the opinion the central banks are not selling gold but there has been some leasing of gold.

Keith Neumeyer, about three weeks ago, called for the primary silver miners to pick a month in 2015 and withhold production for the month. Wednesday November 19, Jim Otis, in an open letter to all miners is calling for all miners to withhold their precious metals. Mr. Otis goes on to detail what to do, how to do and the impact that it would have on the markets—here is what Mr. Otis had, in part, to say

From Mineweb:

Miners could withhold from the markets all physical metal that they have timing discretion over until after the delivery notices are issued. By withholding discretionary sales during the month before delivery notices are issued, and by telling potential buyers for the following month to take delivery of futures contracts instead, mining companies could transform the earlier losses (caused by dumping huge amounts of paper futures) into gains as the traders who were betting they could sell short and then cover later are forced to buy at increasing prices because they do not have the metal required for delivery

Gold miners’ costs are mostly higher than current spot prices, increasing the likelihood of writedowns next year, according to Nick Holland, chief executive officer of Gold Fields Ltd.

Across the industry, costs are about $1,300 an ounce including debt repayments, Holland said by phone from Johannesburg today, citing analysts’ research. Gold dropped 0.1 percent to $1,182 an ounce, bringing the decline since the beginning of 2013 to 29 percent.

“The industry by and large is under water,” Holland said. “I would expect further writedowns. Production I think will be curtailed but it will take some time to filter through the system.”

IF this were to happen with, say, 10% -20% of all miners how would the futures market be able to hold on? Wouldn’t this actually be the straw that breaks the camels back? If the miners were to hold out one week per month for 4-5 months wouldn’t this be enough to do some major damage to the naked-short sellers?

Alsdair explains how the miners are beholden to the banksters and it will be close to impossible to withhold their silver and gold. This is the point where we discuss a serious rise in price and Alasdair makes one of the more shocking statements of the entire interview.

We also visit the SCO (Shanghai Cooperation Organisation) If you are unfamiliar with the SCO, you really need to do some research and get caught up. This Organisation is headed by China, Russia and encompasses, to date, most of SouthEast Asia and the Philippines.

Here is a glimpse of the impotence of the SCO from Global Research:

The reasoning behind the need for expansion is obvious. If the SCO is to have real weight on the international arena and become a truly prestigious organisation that is able to rival NATO, it requires additional members. If India, Pakistan, Iran and Mongolia were all to become permanent members, which looks likely, the group would then control 20 percent of the world’s oil and half of all global gas reserves. On top of that, the bloc would represent about half of the world’s population. This would fortify SCO’s reputation as a dominant organisation, Additionally, Turkey could become a member as well. Its leadership has long been seeking to join and Turkish-speaking governments are likely to support their petition.