Paul Mylchreest is no Coffee Houser (someone who chatters away about something, but really knows very little about it - like yours truly.) As he says, he started work the month before the stock market crash in 1987. He’s worked mainly as an analyst covering the Metals & Mining, Oil & Gas and Chemicals industries for a number of brokers and banks including S.G. Warburg (now UBS), Credit Lyonnais, JP Morgan Chase, Schroders (became Citibank) and, latterly, Redburn Partners.
He suggests that whilst Washington tries to put out the twin fires of recession and unemployment, London (the World’s Gold Market), continues raking in money by either cheating on gold sales or laundering stolen gold. In a stunning exposé on the London Gold Market, he shows that:
‘The wholesale gold market has evolved into MORE OF A CREDIT-BASED SYSTEM’
‘The central banks (Fed, Bank of England and the Swiss National Bank to name three) would have to offer cash settlement to those willing to trade out of their long gold positions. My guess is that in order to clear the market, the price would probably need to rise to at least US$2,000/oz to encourage investors to accept cash in lieu of bullion.’ (My italics).
In a stunning critique he shows that either this overtrading is occurring right now or that the London Gold Market is being criminally used to launder gold stolen from China and Korea by Japan in World War 2.
Sounds far fetched? You can read his full article here: