Bill Kaye - Paper Gold System Creaking as GOFO Turns Negative Again

``GOFO rates have more recently started to turn negative again.  All of this is indicative of serious strains in the system.  This also suggests that the current suppression cannot be indefinitely continued.  The Western central planners would have to find other sources of physical gold in order to keep this scheme going, and our strong sense is that their traditional sources, which are these swap agreements with other central banks, that vein of gold appears to us to be running dry.  This is why the strains are reappearing in the system. So we are optimistic that in Q1, and possibly as early as January, we are going to see a turn.  Keep in mind that, as I mentioned to you earlier, we will most lilkely see a violent move in gold once the turn occurs. ''