Today London whistleblower and metals trader Andrew Maguire told KWN that today’s action is just noise as the synthetic non-delivery gold bubble is now bursting. That is why Deutsche Bank and other European banks are now buying large amounts of physical gold.

Deutsche Bank & Other European Banks Buying Physical Gold
(King World News) – Andrew Maguire:  “We have firsthand evidence that very large European physical bank buying is underway. I personally have dealings with a senior risk manager at Deutsche Bank that confirms Deutsche Bank is accumulating physical gold. One may argue this is to repay rehypothecated gold positions, or as they state, simply to buy fire insurance on embedded risk positions.  But either way, they, along with other European banks, are ditching all forms of paper market exposure and either getting out of the gold trading business or racing into physical gold at this time…

The “Gold Short Bubble”
Andrew Maguire continues:  “It is important to differentiate that this is not just short-term wash and rinse positioning of unallocated gold positions, this is an orchestrated unprecedented move by bullion banks into physical gold, the buying of which is backwashing into the synthetic markets, which in turn is increasingly exposing just how large the naked short gold bubble is.  The ‘Gold Short Bubble’ is directly proportionate to the concurrent bursting of the many artificially inflated asset price bubbles.

There Was A Real Sense Of Fear Permeating The Markets
Cutting through all of the smaller footprints that we believe led to the  bursting of the massively inflated risk bubble, as far as gold is concerned it too is undergoing the bursting of a directly correlated inverse bubble created by asset managers who have been provided a safety blanket by the FED  to leverage risk to artificially high levels by short selling risk insurance (gold). What we witnessed two weeks ago was the realization there is a fire in the basement. There was a real sense of fear permeating the markets that I don’t recall seeing since the Lehman collapse, and it was forcing asset managers who had sold insurance to buy back this insurance before they were margin called out.

Synthetic Non-Delivery ‘Gold Bubble’ Now Bursting
The synthetic non-delivery gold bubble is now bursting. Today’s action is just synthetic noise. All the Fed’s tools are failing to halt a race to buy insurance and there is only one source of nil counterparty risk insurance that can hedge against a risk meltdown and preserve capital, physical gold. And this insurance is so artificially cheap that natural forces will force gold prices to rise rapidly……more here