Today whistleblower and London metals trader Andrew Maguire spoke with King World News about corruption, gold’s surge, and an absolutely shocking admission by the LBMA as well as what has them so terrified right now.

Andrew Maguire: “If you recall, the subject of our last interview on December 18 was the game-changing liquidity drain out of London, and how the massive divergences we were witnessing between the physical markets and the synthetic highly-leveraged gold markets were about to lead to a price reset…

It Was All About Protecting Corrupt Bullion Banks
This didn’t immediately translate into a rising gold price because of the protection of massive over-the-counter and related Comex derivative bets, which was eliciting the large synthetic short selling paper gold and silver supply into the end of last year — to protect these billions of dollars worth of derivatives bets.

The resulting poor gold market performance also drew in hot money (shorts), enabling the market making banks to start to take the long side of this wrong-footed (short) hot money.

LBMA Bullion Banks In Disarray – Exit Gold Market

But the migration of the physical markets out of London, into Asia, and the launch of the competing non-LBMA controlled conduits outside of London has put the LBMA bullion banks into unforeseen disarray as critical liquidity evaporates.

The growing split between the bullion banks speaks volumes, notably the exit of two major market making insiders, which are Deutsche Bank and Barclays. They have now exited the gold business. This foreshadowed the demise of the LBMA Cartel as we knew it. Over the last two years we have also seen the exit of Credit Suisse and Mitsui. So all the signs are there that the LBMA unallocated fractional reserve (gold) model is now broken.

This Is What Has The LBMA So Terrified
This is where it gets really interesting. A major threat is now on the LBMA’s radar. For those who have been following my KWN interviews, they will know that I have been an advisor for the Allocated Bullion Exchange, telegraphing the launch of this game-changing physical exchange.

I’m pleased to announce that just two days ago, the ABX finally launched its first phase rollout and is now fully functional, providing direct access for all global market participants. This is the biggest news to hit the gold market that I can ever recall and it will change the way precious metal price discovery is established.

This is the world’s first global institutional electronic exchange for allocated physical metals. ABX is a disrupter to existing physical methods of bullion trading. The LBMA is now scrambling.