Madness Coming To Gold Market: There Are Thirty to Fifty Owners For Each Ounce of Gold Thats Out ThereMac Slavo The rampant manipulationis believed to stem, in part, from the formerly Rothschild-owned LondonGold Fix, an organization made up of five large banks that make a daily determination of what the price of gold should be. It is this unilateral control by Western banks that recently prompted the Chinese to create their ownShanghai Gold Exchange. What separates the two is that the Chinese will be using their currency, the Yuan, as the reserve rather than the U.S. Dollar. Moreover, unlike their European counterparts, the Chinese will be trading in actual physical dollars. The Daily Coin explains: The product is gold. When gold is bought or sold [on the Shanghai Gold Exchange] a person actually takes delivery of the gold. That is not the case in London. In London the price is based two factors: 1) the futures market in New York. This is where people buy a contract for future gold. Gold that may or may not exist today but they are willing to purchase today and take delivery in the future. 2) The other factor is a very small group of banksters sitting around and determining what the price should be. You know, good-ole-boys club. It is this process by central banks in the West that will ultimately lead to the destruction of the paper gold market as it exists today. The banks operating in these paper markets doso with gold that they dont own. They trade in paper receipts. The reason thats a problem is that there are anywhere from thirty to fifty owners for every ounce of gold out there. Craig Hemke of the TF Metals Reportdiscusses the Western gold schemein a recent interview with The Daily Coinand says that when the music finally stops there are going to be a lot of people who think they own a certain amount of gold but all theyll really be holding is a worthless paper ticket: Theres a lot of central bank goldand even privately held gold that has been leased through these bullion banks. These bullion, they say well pay you one percent because your gold is just sitting there collecting dust but well pay you interest if you lease it to us. And then they go and they dump it, they move it physically in the market in the hopes that theyll be able to, when that lease comes due, theyll get the gold back and then repay it back to whoever loaned it to them in the first place. And they try to match all thoseup. And the hole that theyre digging just keeps getting deeper and deeper. There was news last week that now after about a year and a half after Venezuela repatriated their 80 or 90 tons of gold that now Goldman Sachs and Credit Suisse are down there trying to talk them into leasing it back out. Boy, theyd be crazy if they did. Hey, give us that and we promise well give it back to you a year or two from now, no problem at all we can manage this [] You know, the first rule when youre in a hole is to stop digging. Right? Thats not what theyre doing. Theyre digging away frantically trying to maintain the status quo. I firmly believe there are multiple thirty maybe fifty beneficial owners for each ounce of gold thats out there Thirty orfifty folks that think they own that ounce and theyre all going to show up when the music stops thinking that theyre going to take delivery or lay claim to that ounce. And thats when the madness really starts. When will that be? Probably not tomorrow. But as any confidence scheme eventually unravels, and this one will unravel too. Its just a matter of time. The problem is easy to see. Should just two people show up claiming the same ounce of gold one of them is coming home empty handed. What Craig Hemke describes is a scenario where as many as fifty different people are going to claim ownership for the same ounce of gold. The same is likely true for the silver market. And now that the Chinese are dealing directly with physical gold it is only a matter of time before the entire scheme collapses. In fact, the Chinese and Russians know its coming and thats why theyve been furiously purchasing gold on the open market. The solution should be obvious: If you invest in gold make sure you hold the physical asset in your hand. Also read: You can read more from Mac Slavo at his site SHTFplan.com, where this first appeared. 