This basic scam is at the center of modern gold market manipulation. Paper substitutes for gold are sold instead of real gold through derivatives, futures, pooled accounts, ETF’s, gold certificates etc. I estimate that each actual physical ounce of gold has been effectively sold 20 times over or more. To be able to maintain this Ponzi scheme some real gold is required because some investors or jewelers demand real gold. For the scam to be sustained there must always be plentiful physical gold for those who want it. This physical supply has been met from mine supply and central bank leasing and selling. The market is in effect a giant inverted pyramid with a huge paper gold market being supported above a small amount of physical gold at the tip of the inverted pyramid. The scam can continue until there are indications of a shortage of physical gold. If the twenty or so claimants of each oz of real gold demand their gold then there is the potential for a squeeze like has never been seen before in history..........
