Goldman Sachs Is Highly Motivated To Low-Ball The Price Of Gold
If someone recently had a frontal lobotomy… this forecast might make perfect sense. On the other hand, if a person belongs to the 95-99% group of Americans who believe everything coming from the Boob Tube, this forecast is exactly what the doctor ordered.
Goldman isn’t that stupid to realize the well-educated precious metal investors don’t believe a word coming from the bank’s talking heads, rather their forecasts are designed and targeted at Americans who still believe in the Greatest Fiat Ponzi Scheme in history.
Furthermore, Goldman Sachs has serious motivation for throwing the paper price of gold under the bus. You see… Goldman is by far the weakest and most vulnerable bank when it comes to its Assets to Derivatives ratio. Not only does Goldman rank DEAD LAST compared to the other banks in this ratio, it does so with flying colors.
Here is the most recent break-down of Derivatives holdings by the top 25 U.S. Commercial Banks:
This is a table from the OCC’s Q4 2013 Report on Bank Trading and Derivatives Activity. Let’s focus on the top 4 banks. You will see that while Goldman has $48.6 trillion in derivatives on its books, it only has a measly $105 billion in assets to back it up.
Dividing each of the top 4 U.S. banks assets to derivative holdings, we have the following percentages: