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Harvey Organ Predicts Manipulation of Gold/Silver to End THIS YEAR

11 Sep

An Empty Gold Vault? [courtesy Google Images]

An Empty Gold Vault?
[courtesy Google Images]

Harvey Organ is a pharmacist who’s studied gold for over 20 years.  He’s an interesting man because he is: 1) intelligent; 2) dedicated to the point of being obsessive; but, 3) not a very good communicator.  I’ve visited his blog at http://harveyorgan.blogspot.com/ and it’s more like an accounting ledger than a collection of articles written in prose.  I can easily imagine how Mr. Organ has dedicated the last 20 years of his life to intently studying the numbers and mathematics of gold and having thereby achieved a significant expertise on that subject and yet, having so far been unable to communicate his knowledge in a way that can be easily understood by most people.

I think the man has worked to know a lot about gold.  But I also think that you have to work to understand what he knows because he hasn’t worked to become a “communicator”.  I think he’s only used to talking to people with his level of expertise–and that’s a pretty small crowd.

What follows is a video interview of Mr. Organ by Greg Hunter.  I infer from this interview that Mr. Organ doesn’t focus on the prices and politics behind paper gold and silver.  Instead, he focuses on the mathematics of the production, supply and consumption of physical gold.

In theory, every Comex gold investor is entitled to take his proceeds in the form of physical gold–but only a small percentage actually do take physical delivery.  Most are content to take fiat dollar rather than physical gold. Mr. Organ contends that 100 ounces of “paper gold” are traded on Comex and the LBMA for every ounce of physical gold that’s actually delivered.

It’s critical to understand that the paper-gold market is built on the foundation principle that anyone who invests in that market and wants to take delivery of physical gold can do so.  So long as Comex can supply gold to the few who take physical delivery, the paper-market can continue to control the price of gold.  But if Comex and the LBMA could no longer supply physical gold to their few investors who take physical delivery, the paper-gold market would disintegrate.

Mr. Organ contends that the US Treasury of gold is exhausted and can no longer be relied on to secretly supply gold to back up the Comex and/or LBMA gold bullion markets. Judging from the Federal Reserve’s inability to return more than 5 tons of the 300 tons of gold recently demanded by Germany, he’s probably right.  If he is right, Comex and LBMA gold markets will soon be unable to supply physical gold to any of their investors.  At that moment, those paper markets (and their ability to manipulate the price of physical gold) should cease to exist.

 

  • Put another way, according to Mr. Organ, the mathematics of the current demand for gold (4,000 tons per year) versus the supply of new gold (2,200 tons per year) leaves a deficit of 1,800 tons per year.

Mr. Organ contends:

1) This 1,800 tons/year deficit has been secretly supplied into the Comex and LBMA markets by the US Treasury, the Federal Reserve and other central banks for the purpose of suppressing the price of gold.

2) Knowing the amount of gold that is secretly removed from the US Treasury, Federal Reserve and other central banks, and knowing what those institutions probably hold as their previous and current gold supply, Mr. Organ calculates that those institutions, plus Comex and the LBMA markets will be completely devoid of physical gold by about November of this year.

3) Without the secret supply of gold (from the US Treasury, Fed, etc.) to back the Comex & LBMA paper gold markets, those markets will be unable to deliver physical gold to settle their accounts.  That inability to deliver will constitute a default.  Once the markets for paper gold default on delivery of physical gold, the system’s ability to manipulate and suppress the price of physical gold prices will end.

4) Once the paper-gold price manipulation scheme ends, the price of physical gold will skyrocket.

Mr. Organ predicts that the price of gold could hit $4,000 in November of this year and $10,000 in January of A.D. 2015.

 

  • I’m not convinced that the US Treasury’s, Fed’s and other central banks’ supply of gold will be absolutely exhausted in the next 60 to 90 days.  It might happen.  It might not.

I’m not convinced that nations like China will vehemently demand to receive the gold that they’ve contracted to receive on Comex and LBMA markets after the US Treasury et al are shown to be bankrupt of physical gold.  If the gold is gone, it can’t be supplied.  I doubt that China would be willing to go to war if they can’t regain the gold and silver that’s owed them.

I’d bet that, for China, it may be sufficient victory to force the US to admit it has no more gold.

I doubt that China would want to collapse the world economy by making a big fuss because it can’t get the gold it’s contracted to receive on the LBMA or Comex.  If China can’t get more physical gold at paper-gold prices, I suspect that China will simply grimace and bear it.

Nevertheless, I’m convinced that Mr. Organ’s fundamental argument is correct:  the key to the gold-price suppression scheme is the supply of physical gold held by the US Treasury, Federal Reserve and other central banks that’s being secretly supplied to Comex and LBMA markets.   When the supply of physical gold is exhausted, the markets for paper gold won’t be able to deliver any physical gold, the paper markets will collapse, and the price of physical gold will rise significantly.

I’d be delighted if Mr. Organ’s price predictions for gold ($4,000 this November; $10,000 next January) were correct–but I’m not betting on those prices in that time frame.  I’d be just as pleased if we had $4,000 by November of A.D. 2015 and $10,000 by January of A.D. 2017.  (But then, I’m somewhat childlike in my capacity to be easily amused and easily delighted.)

I’d not only be delighted, I’d also be amazed if, as per Mr. Organ’s predictions, I went to bed one night next November when the price of gold was $1,300/ounce–and woke up the next day to find that gold had doubled or even tripled overnight.  Although that kind of drama is the stuff of novels and movies—but it could happen.  However, I’m more inclined to think that I’ll go to bed one night next November with the price of gold at $1,300 and “wake up” a year later to find the price is $4,000.  Mr. Organ is inclined to anticipate one sudden, blinding flash of price rises.  I’m more inclined to expect (and more comfortable with) a slower but steady price rise.

My reading of The Powers That Be is that those diabolical bastards almost always have another trick up their sleeves.  One of these days, they’re going to run out of cards, but I’m not betting that day will arrive this year.  Even if Mr. Organ were correct and the US Treasury et al were shown to be bankrupt of physical gold in November, I’d expect the “Powers” to “drag it out” over a period of months or even years rather than succumb to a single, explosive, economy-collapsing, overnight rise in the price of gold.    I’m not denying the possibility of such drama.  I’m simply saying that a slower process is more likely.  I’ll wait and see.

In the meantime, here’s Greg Hunter’s 30 minute interview of Harvey Organ.  It’s well worth your time to view this video at least once:

 

video      00:30:26

 

 

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25 responses to “Harvey Organ Predicts Manipulation of Gold/Silver to End THIS YEAR

  1. Toland

    September 11, 2014 at 6:00 PM

    “Mr. Organ contends that 100 ounces of “paper gold” are traded on Comex and the LBMA for every ounce of physical gold that’s actually delivered.”

    This is how a gold-backed currency would work also. A given paper dollar would change hands hundreds of times, meanwhile the physical gold backing that dollar never leaves the vault.

    So maybe what’s happening at the Comex and LBMA can be thought of as trial runs for a gold-backed currency, in certain ways.

     
    • skybluehigh

      September 11, 2014 at 10:49 PM

      John Maynard Keynes may have been able to say it a bit better than you, Toland. After all, it’s his half baked theories that brought on this economic debacle.

       
      • Toland

        September 11, 2014 at 11:19 PM

        What are you talking about, moon?

        Keynes may have been able to say what better than me? He wasn’t a proponent of the gold standard. You’re not making sense.

        Your trolling is up to its usual standard of clumsy incoherence. You have a ways to go before rivaling your mentor J.M., a.k.a. Don Bailey, a.k.a. Les Fuchs, etc.

         
      • skybluehigh

        September 12, 2014 at 10:17 AM

        Clear your mind, look deep into my eyes, and focus.

        What you’re suggesting is a rehash of fractional reserve banking.

         
      • Toland

        September 12, 2014 at 2:26 PM

        Cut the crap, moon.

        It’s okay if you lack the mental horsepower for this topic. But you only make yourself look ridiculous by adding “look into my eyes” buffoonery to your trolling repertoire.

        No advocate of the gold standard says a gold-backed dollar can only change hands once. Like a fiat dollar, a gold-backed dollar would change hands hundreds of times in the normal course of trade. This equates to the trading of the gold in the vault which is represented by that dollar hundreds of times. Yet only rarely would anyone actually redeem his dollars for physical gold. Thus the physical gold would, for the most part, stay put in the vault while the value of that gold trades hundreds of times.

        This is essentially what we see at Comex and LBMA. The value of the gold in their vaults is being traded hundreds of times, while the physical gold rarely leaves the vaults.

        Now run along, moon, ease off the pot smoke, and stop littering Al’s blog with your trolling.

         
  2. Roger

    September 12, 2014 at 3:17 PM

    Toland,

    Have you consider the possibility that moon, a.k.a. skybluehigh, might actually BE the infamous J.M., a.k.a. Don Bailey, a.k.a. Les Fuchs, etc. back for an encore? Lol.

    What’s happening at Comex and LBMA is not like fractional reserve banking (nor are you saying it is). Fractional reserve banking is where the holder of the physical gold trades it multiple times (once considered a form of criminal fraud). As you know, this is not happening at Comex and LBMA, where it’s the holders of the paper gold who are trading it multiple times (as would happen with a gold backed currency). Big difference.

    Besides, fractional reserve banking is not inconsistent with a gold standard. The two coexisted for a long time. In fact, the fractional reserve bankers have historically been the main promoters of a gold standard. The fractional reserve bankers’ current fiat-money regime is only temporary, and everyone, including the fractional reserve bankers, knows this.

     
    • Toland

      September 12, 2014 at 4:18 PM

      Roger wrote: “Have you consider the possibility that moon, a.k.a. skybluehigh, might actually BE the infamous J.M., a.k.a. Don Bailey, a.k.a. Les Fuchs, etc. back for an encore?”

      I don’t think so. The flimsy nonsense we got from J.M., a.k.a. Don Bailey, a.k.a. Les Fuchs, etc. was written at a higher level of prose composition than the flimsy nonsense we’re now getting from moon, a.k.a. skybluehigh.

       
  3. skybluehigh

    September 12, 2014 at 7:17 PM

    Trade it your way…the alligators are waiting.

     
  4. Henry

    September 12, 2014 at 11:34 PM

    Al, you said: “Mr. Organ contends that the US Treasury of gold is exhausted and can no longer be relied on to secretly supply gold to back up the Comex and/or LBMA gold bullion markets. Judging from the Federal Reserve’s inability to return more than 5 tons of the 300 tons of gold recently demanded by Germany, he’s probably right.”

    If this is so, what does it means that Germany was unable to withdraw a similar amount of their gold on deposit at the Banque de France in Paris?

    Also, what’s the logical connection between the Federal Reserve’s refusal (not necessarily “inability”) to return Germany’s gold and the amount of gold at the US Treasury?

    PS: For those keeping track, this guy brings the count up to (at least) 3 guests on Greg Hunter’s show calling for huge changes in 2014. We already had John Williams and Jim Willie on the record with this prediction, now Harvey Organ adds himself to the list.

     
  5. Toland

    September 13, 2014 at 2:21 AM

    These are my answers to the above questions addressed to Al. I’m not trying to answer for Al, who will have his own answers (or no answers).

    Henry asks, “If this is so, what does it means that Germany was unable to withdraw a similar amount of their gold on deposit at the Banque de France in Paris?”

    It means the French are either a) collaborating in the Federal Reserve’s conspiracy to suppress the gold market, b) pursuing an independent program of gold suppression through their own version of the Comex, or c) up to something completely unrelated to suppressing the gold market.

    Henry asks, “Also, what’s the logical connection between the Federal Reserve’s refusal (not necessarily “inability”) to return Germany’s gold and the amount of gold at the US Treasury?”

    There isn’t one. The US Treasury and the private Federal Reserve are completely separate entities. A (presumed) shortage of gold at the Federal Reserve tells us nothing about what the US Treasury does or does not have in its own stores.

    …Like I said, Henry, these are my answers to questions you asked Al. My answers are just appetizers, Al’s answers will be the main course.

     
  6. Anthony Clifton

    September 13, 2014 at 4:41 AM

    in all of the beating around the bush…
    about the Money Changers & Pharisees

    http://apod.nasa.gov/apod/astropix.html

    what is the Command of Jesus regarding the Tares who are the workers of iniquity,
    the ones that pervert Justice and do violence to the Law ?

    eventually the language must be pure

    so that everyone is on the same page

    so to speak

     
    • Doug

      September 17, 2014 at 6:11 AM

      In addition to honest language the people must reject all fiction/fraud if they really wish to be free and do God’s Will. Fake monetary policy is the nearly invisible radioactive material responsible for all wars and international genocide. The world has become tolerant of falsehoods and lies because they’re convenient (but deadly).

       
  7. kanani

    September 14, 2014 at 6:06 PM

    Used to read Harvey Organ’s blog regularly. That guy is always calling for the end of manipulation… just around the corner…any day now.

     
  8. moon

    September 14, 2014 at 7:48 PM

    LMYIAO…Laughing My Young, Immature Ass Off…for those, like me, who are acronymically challenged.

    Hey Tweedledee and Tweedledum,

    The two of you, Toland and Roger, are illustrating the lingering power of J.M. over you as you knee jerkingly pounce on anyone you deem a threat to your sacred belief system. You stumble and slobber all over yourselves, and each other, throwing silly speculations at your perceived image of J.M.’s ghost. He will have no power over you when you stop resurrecting him. You are living proof that J.M. is very good at what he does, even in absentia.

    You accused someone of being me because they introduced an idea outside your small sphere of comprehension? Hahahahahahahahahaha…hahahahahaha…

    LMYIAO

     
    • Toland

      September 14, 2014 at 9:36 PM

      You’re laughing a bit loud and protesting a bit much, moon a.k.a. skybluehigh.

      For starters, I’m the only one calling you out as a troll. Roger just chimed-in to poke fun at me on your behalf, which you would have noticed if you weren’t on the defensive.

      However, you are correct that J.M., a.k.a. Don Bailey, a.k.a. Les Fuchs, etc. has got skills. Someone called him a “virtuoso of trolling”, and I agree. Roger and I both had several memorable run-ins with the dearly departed.

      Whereas you, moon a.k.a. skybluehigh, are a beginner in over your head. Though maybe, after a few more years of practice, you can be half the troll that Les Fuchs is.

      Good luck.

       
      • moon

        September 15, 2014 at 9:20 AM

        LMYIAO

         
  9. skybluehigh

    September 15, 2014 at 9:53 AM

    Now, you’ve gotten me started laughing about it.

     
    • moon

      September 15, 2014 at 10:05 AM

      Laughing is probably the best way to go.

       
      • Adask

        September 15, 2014 at 2:40 PM

        Robin Williams agrees.

         
  10. Roger

    September 15, 2014 at 4:49 PM

    Lol, hi moon. You misunderstood me earlier. I’m not accusing you of anything.

    Anyway, Al can tell if comments by “moon” and “skybluehigh” happen to be posting from the same geographic location.

    So let’s ask Al if the data reveals any such coincidence, to put this topic to bed before it reappears in other threads as happened with Les Fuchs. What do you say?

     
    • skybluehigh

      September 15, 2014 at 8:10 PM

      It seems that Al speaks whenever he chooses. Don’t you think it’s selfish of you to bother him while he’s in communication with Robin?

       
      • moon

        September 16, 2014 at 8:34 AM

        Excellent reply, sky…thanks. i was too busy laughing. Mind if i call you sky?

         
  11. dog-move

    September 16, 2014 at 1:14 PM

    He’s calling for strength in silver and gold going into early november, seeing silver and gold will be moving opposite the common stocks, my studies in cycles indicate you may see a cycle low in stocks going into early november, at much lower levels.

     
  12. moon

    September 16, 2014 at 1:49 PM

    For a few days, i’ve been considering this Harvey Organ post. i appreciate the work of Harvey Organ, Ted Butler, Jim Willy, and others who crunch the numbers and draw conclusions…partly because crunching is not may favorite thing to do. i’ve read and studied crunched numbers and conclusions since before the peak of the metals rally in Jan 1980. Howard Ruff had a few big hits back in the early ’80s that were very well crunched numbers, but the timing was way off. Someone asked why Howard Ruff and others were so far off in their timing. The answer came back that they could not imagine the tricks the tricksters could come up with. Tricks used certainly haven’t been limited by established rules. “Never bet on another man’s trick” is an adage that comes to mind.

    Paper markets and published numbers are other folks’ tricks and i try not to bet on them. For instance: if the supply to make up the Comex deficit in physical metal has been “secret”, how would i know that physical metal actually got there? Why would i care? It’s someone else’s trick.

    Here’s one way i know that supply of physical metal available to be traded is getting very scarce:

    Somewhere around ten years ago, i took $60k in green FRNs to one coin dealer and exchanged it for silver bullion coins/bars, etc, at about the then current spot price. The transaction took about an hour. Within the past year, i exchanged almost $4k in green FRNs for silver bullion at near spot. The transaction took two weeks and three different sources. One of the sources was the same dealer i had exchanged with ten years earlier.

    Yes, it’s true that there are still dealers who can do either of those trades within an hour. However, i didn’t find one within the two week period that i could do a face to face trade with. i have rules too. The sources are fewer now. There is so much metal being held in strong hands that won’t come back into the market anywhere near the current paper price, that available supply is very low. Get to know and trade with your local, reputable coin dealers. They’re the ones who’ve been there through ups and downs, and who have the greatest chance of being there when you need to make a move. Whichever way you want to go, they’ll take the other side of the trade.

    The key to a sudden rise in price, in my opinion, is how suddenly people, generally, perceive that low supply exists. Considering how long FRNs have held on as acceptable, it will probably take a planned event that, in essence, announces low supply AND what that means to the markets. When the big boys are ready, when they’ve covered their shorts, it will happen. When it does, mass mania will take metals prices well above the metals’ actual value. This isn’t really a brilliant prediction…it’s what the history of markets have shown over and over (remember tulip bulbs, Florida swamp land, dotcoms, etc? …oops, don’t forget Bitcoin).

    A rise in price, though, will not make anyone richer than they already are. A Mercury dime will always buy a loaf of bread…if one wants a loaf of bread and if a loaf of bread is available to buy. An ounce of gold will always buy a nice business suit…if and if. The only way to increase one’s net worth is to go ahead and trade paper for more physical. Then, one has already added to net worth regardless of when the price increase happens (the price is still quoted in fiat currency, don’t you know?).

     

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