I deduced that the LBMA is running a fractional reserve operation and that the amount of paper gold they have sold that is unbacked could be in the range of 30,000t to 50,000t. (almost equal to all the gold reserves left to be mined in the earth!!).

This anecdotal information from this London trader is a confirmation that my analysis is likely correct. If the LBMA had 100% backing of gold they sell they could not possibly be unable to deliver.

The LBMA may think it is smart to offer premiums to take cash but this is the equivalent of stepping on their own land mine. This declares to the world they don’t have the gold that they are meant to have. This is what starts bank runs. This is what will start the mother of all bank runs…the run on the bank of the gold cartel. And just to add further credence to my analysis the US Government doesn’t have enough gold to mint a few measly gold eagles.!

You can see the state of desperation and why the COMEX was raided by the shorts.

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here were a very significant 277 delivery notices issued in the DEC gold contract. The DEC gold contract total for the month is 6,643 contracts or 664,300 ozs. Yesterday was not a one off event of the Cartel Honchos showing up in the delivery note business. JPM issued no notices but stopped 132 of them and Goldman Sachs issued none and stopped 88 notices and issued none. BNS issued 2 notices. Yesterday I said “whenever something changes in the gold market one has to pay attention”. And guess what! The gold market was bludgeoned and raped today. It was clearly done by the Cartel because the HUI was up BEFORE gold and silver recovered. That is a clear sign of insider trading (hello SEC, CFTC! Where are you?), I wouldn’t mind betting that the entities selling gold and silver contracts on the COMEX were the same ones buying mining stocks. What a coincidence that happened a day after JPM and GS show up as BIG stoppers of delivery notices!