Whistleblower Maguire - This Will Destroy Gold & Silver Shorts

Image via WikipediaThis morning London whistleblower Andrew Maguire told King World News that the launch of the new gold and silver exchange in China will destroy the remaining gold and silver shorts. Maguire stated, “The launch of this new gold and silver exchange has flown under the radar, but certainly has my attention. I firmly believe we are marking a pivotal point that will in very short order affect current precious metals price discovery dynamics. We now have an additional factor to be vended into the supply demand equation. This factor will ultimately destroy the remaining short positions in both gold and silver.”

Maguire continues:

“China is keen to diversify their cash holdings and is also encouraging citizens to make investments in gold and silver. The Pan Asia Gold Exchange is another step in this direction by opening up ease of access to physical gold and silver to their bank customers. This physical backed exchange is going to be a big game-changer.

Just look at the scale of this to get an idea of how massive this game-changer will be, The Agricultural Bank of China has over 320 million retail customers and 2.7 million corporate customers and has integrated its customer account information system with this platform.

By creating the first ever rolling spot contract, Chinese bank customers will for the first time have ease of access to 10 ounce gold contracts in Renminbi directly from their bank accounts and with the click of a mouse. To give a further idea of scale, if just 1% of their customers bought a single 10 ounce contract, that would equate to 1,000 tons of physical gold being drawn down....More...

U.S. Dollar is 'The World’s Biggest Ponzi Scheme'

The only reason the dollar hasn't totally collapsed is because its biggest holders are pumping it full of embalming fluid. As Bloomberg's William Pesek points out, "the dollar has become the world’s biggest Ponzi scheme...[it] isn’t crashing because those invested in it are propping it up and adding to their holdings. After all, the magnitude of Asia’s foreign-exchange holdings means it can’t dump the dollar without shooting its economies in the foot. Asia should indeed be plotting how to reduce its dollar holdings. Those trillions of dollars would be better used in Asia to pay for better roads, bridges, airports and power grids and improved education and health care."

Huang Xinyuan, vice president of a Chinese company that conducts business across China’s border with Vietnam says he no longer wants payment in U.S. dollars and prefers the yuan. Sales using the dollar dropped to 30 percent of contracts in 2008 from 87 percent in 2007, according to Bloomberg. The yuan, which has gained 21 percent since it was allowed to strengthen against the dollar starting in 2005, offers greater stability, he said.

“In recent years, the dollar has gone in only one direction and that is down,” said Huang, 45, in his second- floor office in Pingxiang, three kilometers from Vietnam. “Settling our orders in yuan removes a major risk.”

Banks in China and Hong Kong began wiring Chinese renminbi directly to one another on Monday to settle payments for imports and exports, according to the New York Times. Despite Vice Foreign Minister He Yafei telling reporters China supports the dollar as the main world reserve currency, China moves closer each day toward establishing the yuan as an international alternative to the dollar.

Meanwhile GATA reports Sprott Investment Management's chief investment strategist, John Embry predicts that once gold clears $1,000 it will never look back.