• Sprott Money
    04/29/2016 - 05:58
    There is unfortunately no basis for renewed optimism that this current litigation will have any meaningful impact on precious metals manipulation – with respect to either silver or gold.

China Central Bank Advisor Urges Increase In Official Gold And Silver Reserves

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Sun, 01/30/2011 - 22:16 | 919065 Rahm
Rahm's picture

Buy the f-ing duck sauce!

Sun, 01/30/2011 - 22:40 | 919110 treasurefish
treasurefish's picture

Duck sauce does you no good without guns, ammo, and ducks.

Sun, 01/30/2011 - 23:58 | 919282 Fish Gone Bad
Fish Gone Bad's picture

The first one out of the money pool wins!!

Mon, 01/31/2011 - 04:35 | 919584 dlmaniac
dlmaniac's picture

FOFOA supporters have to change their pants before posting here. So much for that only gold can be money whopper now you have China, AKA daddy of both US and Europe, showing their hand a little bit. Better pay attention.

The other day I was at FOFOA's blog watching him shooting about gold to silver ratio of 1 : 2000, "only speculators buy silver" and so on I was wondering if this guy ever read news at all. The very fact China imported 110 millin Oz of Ag last year is like firing 110 million bullets at that nonsense and blowing as many holes along the way. You bet they'd be glad to sit on the buy side if you are willing sell any more silver.

Mon, 01/31/2011 - 06:42 | 919637 chumbawamba
chumbawamba's picture

I'm not so sure.

From my reading of FOFOA and the general reaction his comments on silver got, it seems his treatise is broadly misunderstood.  To my mind, silver is, in fact, an investment, and it will eventually bubble out, albeit at a higher valuation than currently.

Yes, it has been and can be money, but it isn't gold.

I am Chumbawamba.

Mon, 01/31/2011 - 09:15 | 919793 tmosley
tmosley's picture

He fundamentally misunderstands money, so it is not surprising that he fails to recognize that silver is money that has been made rare from industrial usage.  His misunderstanding stems from the artificial barrier he has placed between use of currency as savings and as a medium of transaction.  He thinks you can somehow use unbacked paper money for transaction, but not for savings, and that that won't cause any sort of problem, which is simply nuts.  It's like trying to separate wetness from water.  You can't flat a boat on pieces of paper that say "wet" on them.  Similarly, any system where governments are free to print the transactional currency will collapse into hyperinflation almost immediately, because you have inherently destroyed any concept of value of the currency, and monetary velocity goes to unity as everyone takes the currency and buys gold right away since it is losing value so quickly.  Since everyone has gold (as savings), and everyone wants and accepts gold for their fast depreciating fiat, there is nothing to stop them from just dumping the paper money and trading in gold directly. "Freegold" is at best a transition state between a fiat currency and a gold standard (whether de facto or official).  

Because he doesn't understand this simple fact about money, he doesn't understand that the value of money is a function of the goods and services available at market and money supply.  Just like an increasing population leads to more goods and services being available at market, and thus price deflation in terms of gold, silver has the added deflationary factor of decreasing supply.  Sure, you will rarely see long term contracts being written in terms of silver, that is a function purely of it's upward price instability.  Once the price rises to an amount that forces silver recycling to the extent that an equilibrium is reached between mining production and garbage dump deposition, then you will get contracts being written in terms of silver.  

You will notice that physical sales of silver far exceed physical sales of gold.  This is Gresham's Law in action.  Silver is money, but it is extremely undervalued.  It won't circulate until the price rises.  Gold circulates in some places now (Vietnam, for example), but only at a significant premium to current prices.

Mon, 01/31/2011 - 12:02 | 920435 chumbawamba
chumbawamba's picture

Hey T.

Like I said, he was broadly misunderstood.

Silver is money, but not a store of wealth.  There's too much of it.

That's the gist.

I am Chumbawamba.

Mon, 01/31/2011 - 13:47 | 920905 dlmaniac
dlmaniac's picture

T was exactly right. FOFOA biggest mistake is regurgitating what FOA fed him w/o really thinking through why silver has been money throughout thousands years of history.

Money has to be having value of own, divisible, durable, stable, precious, availabe and backed up by production. It's those qualities making both gold and silver money rather than some bizaar theories cooked by certain bankers.

Money by its nature has to be store of wealth, which is why you use precious metal as money. This notion of "too much of it" shows that you don't know about silver fundamentals very well.

Sun, 01/30/2011 - 23:04 | 919161 TeMpTeK
TeMpTeK's picture

Sree dolla estra for derivery

Mon, 01/31/2011 - 00:38 | 919352 spekulatn
spekulatn's picture

"I make a special won ton soup for you"



Mon, 01/31/2011 - 00:52 | 919378 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Find more info and 'da bears' on my blog and some updates on the silver trade....


Sun, 01/30/2011 - 22:20 | 919071 DoctoRx
DoctoRx's picture

Chinese would love to buy gold cheaper than $1300

Sun, 01/30/2011 - 22:42 | 919112 Big Corked Boots
Big Corked Boots's picture

As would I.

Sun, 01/30/2011 - 22:20 | 919072 NOTW777
NOTW777's picture

really. since when is PBOC transparent or honest?  buying gold all along?

announcements are jokes

Sun, 01/30/2011 - 22:27 | 919074 Careless Whisper
Careless Whisper's picture
China Central Bank Advisor Urges Increase In Official Gold Reserves

correction: Gold AND Silver Reserves

"China central bank adviser Xia Bin said the country should increase its gold and silver reserves, the Economic Information Daily reported today, citing an interview with Xia."

(thanks dewd)

Sun, 01/30/2011 - 22:22 | 919077 SlipStitchPass
SlipStitchPass's picture

Called a larger metals dealer in maryland on Friday. He said that someone had walked in that morning and bought his supply of 100oz silver bars. He had 185 in the safe. Told me to call on Monday and see if anything came in.

Sun, 01/30/2011 - 23:37 | 919237 gaoptimize
gaoptimize's picture

Middle Eastern embassy staff or their agent?

Sun, 01/30/2011 - 23:54 | 919273 SlipStitchPass
SlipStitchPass's picture

More than likley one of the many Americans with 500K+ in FRNs setting around who are st arting to say "Oh shit I'd better do somthing to protect my wealth". Consider the reverse leverage that buying physical silver has on the paper market. There is very little Silver around to cover this type of demand.

Mon, 01/31/2011 - 00:08 | 919301 Cathartes Aura
Cathartes Aura's picture

interesting that your supposed subject, with 500k in ben-bux would be buying silver, not gold, hmmm. . .

Mon, 01/31/2011 - 06:59 | 919644 chumbawamba
chumbawamba's picture

Because gold is even harder to get?


I am Chumbawamba.

Mon, 01/31/2011 - 09:18 | 919800 tmosley
tmosley's picture

No.  This is Gresham's Law being applied.  People recognize that silver is undervalued, so they hoard it.  They recognize that gold supply is only increasing, but that silver is being consumed twice as fast as it is produced, and that it makes no sense for silver to even be correlated with gold at this point.

Mon, 01/31/2011 - 12:06 | 920450 chumbawamba
chumbawamba's picture

Yes, but for what period of time?

Silver will have its day in the Sun, but Sun's light shines golden.  Eventually silver will recede back into the shadows of Moon light.

This is what you're missing.

I am Chumbawamba.

Mon, 01/31/2011 - 00:22 | 919327 Campagnolo
Campagnolo's picture

Just watch at Tulving's silver supply. They say they have only 500,000 oz. in stock. Since Tulving sell orders over 500oz it is only 1000 orders to run out of silver. Considering as tulving as one of the big metal dealer in the US.

Mon, 01/31/2011 - 01:03 | 919397 walcott
walcott's picture

Campagnolo just checked Tulving's site everything sold out or so it says here




Mon, 01/31/2011 - 01:59 | 919473 RmcAZ
RmcAZ's picture



Looks like lots in stock to me.

Mon, 01/31/2011 - 03:45 | 919556 walcott
walcott's picture

oh ok got it thnx!

Mon, 01/31/2011 - 02:12 | 919486 ILikeBoats
ILikeBoats's picture

Nope, try this page:  http://tulving.com/goldbull.html

Gold first, then some more ugly HTML, then Silver, a little more ugly HTML, then Platinum and Palladium.

Sun, 01/30/2011 - 22:23 | 919079 DoctoRx
DoctoRx's picture

PS Disagree w TD here.  IMHO China simply wants less exposure to the USD.  The Prez wants to spread the wealth by diluting the savings of those not named Lloyd etc. who have savings, which Gentle Ben is happy to accommodate.  Thus Team Fed buys whatever the ROW doesn't.

Sun, 01/30/2011 - 22:33 | 919101 Careless Whisper
Careless Whisper's picture

President Donald Trump will set China straight.



Mon, 01/31/2011 - 07:03 | 919647 chumbawamba
chumbawamba's picture

Donald Trump is like the Chuck Norris of the financial world.

Do not fuck with Donald Trump, or else he will fire you.

I am Chumbawamba.

Mon, 01/31/2011 - 08:13 | 919683 THE DORK OF CORK
THE DORK OF CORK's picture

That Fat Vain Nero !!! - he can go fuck himself , Vandalising Scottish landscapes for another fucking golf course - enough with these fuckers - they make me fucking sick.


I am Dork

Sun, 01/30/2011 - 22:23 | 919080 UninterestedObserver
UninterestedObserver's picture

But you can't eat gold or silver.

Sun, 01/30/2011 - 22:46 | 919120 asdasmos
asdasmos's picture

And you can garnish food with dollar confetti.

Mon, 01/31/2011 - 00:01 | 919130 Rahm
Rahm's picture

You can get it on the way out; FRN=TP

Sun, 01/30/2011 - 22:57 | 919145 pan-the-ist
pan-the-ist's picture

But you can eat taco bell. 88% beef! 

Been thinking about buying a taco tommorow to see how much different they will taste now that they're forced to remove the fillers.

They'll be out of business before long if they have to maintain it.

Mon, 01/31/2011 - 00:49 | 919371 Dr. Sandi
Dr. Sandi's picture

Wow, it's been years since I've heard anybody mention "taste" and "Taco Bell" in the same sentence.

Mon, 01/31/2011 - 02:17 | 919491 Hook Line and S...
Hook Line and Sphincter's picture

i remember their run for the toilet campaign well...or was that border?

Sun, 01/30/2011 - 22:25 | 919082 Spalding_Smailes
Spalding_Smailes's picture

Davos 2010: Chinese central banker Zhu Min warns of new Asian crisis China's deputy central bank chief Zhu Min warned that tighter US monetary policy could spark a sudden outflow of capital from emerging markets, evoking the 1990s Asian financial crisis.


A rapid withdrawal of funds would not only cause volatility in the currency exchange markets, but could also generate currency moves similar to those during the Asian crisis of over a decade ago.

"Capital flows - it's a real risk this year for the economy," Zhu Min told participants at the World Economic Forum's annual meeting in Davos.

Mr Zhu noted that investors are increasingly borrowing the cheap US dollar, and investing the borrowed funds in emerging markets, where interest rates are higher, and therefore generating a better return than saving in the dollars.

This phenomenon called carry trade in the US dollar is a "massive issue today," said Mr Zhu.

"It's bigger than the Japanese yen carry trade 12 years ago," he said.




Mon, 01/31/2011 - 00:02 | 919289 tickhound
tickhound's picture

And who doesn't talk their book in the face of a poor investment...

Mon, 01/31/2011 - 01:01 | 919402 trav7777
trav7777's picture

sound rike China WANT cheaper dorrah

Mon, 01/31/2011 - 06:54 | 919642 JonNadler
JonNadler's picture

Appaling Smell

How does your post relate to bashing gold?

Stick to your job of scaring goldbugs away from gold or go away

Sun, 01/30/2011 - 22:25 | 919084 Yen Cross
Yen Cross's picture

Huh? A dollar hedge on YUAN revaluation? Oh wait the reserve currency thing. Now I got it. Jeese.

Sun, 01/30/2011 - 22:27 | 919090 Yen Cross
Yen Cross's picture

A small last note. Don't get head faked on xag and xau. I wouldn't touch gold above 1297.

Sun, 01/30/2011 - 22:36 | 919094 tmosley
tmosley's picture

Oh snap, is China officially buying silver?

Not a lot of silver out there, guys.

I counted at least 360K toz of silver on APMEX.  That's less than $10 million worth. If China starts buying AT ALL, this is likely to blow up immediately.

I'm talking $200 a troy oz in weeks, here.  Of course, it could just be bluster.  They may wait to accumulate more gold before blowing up the silver market.  Who knows?

Sun, 01/30/2011 - 22:55 | 919138 bronzie
bronzie's picture

"is China officially buying silver?"

or do they just stop the export of same - then accumulate the production from their own mines as well as the output from smelting foreign ores

remember that they accumulated about 4 or 500 tons of gold without telling the world until it was a done deal

also remember that China is number one producer of gold at this point and third largest producer of silver - they can do some major accumulation just by keeping their own output - they don't have to actively buy on the open market


Sun, 01/30/2011 - 22:59 | 919148 tmosley
tmosley's picture

They are already doing all of that.  They went from being the worlds largest exporter of silver a couple of years ago, to being one of the largest importers.  That was on private demand alone.  

Mon, 01/31/2011 - 01:03 | 919404 trav7777
trav7777's picture

huh?  China doesn't buy from fkin Apmex, dude.

the retail end of things is runt hog on this trough.

China could negotiate with silver miners if they want silver.  There are 750Mtoz per year out there, no shortage

Mon, 01/31/2011 - 01:31 | 919438 bobert
bobert's picture

How many ounces is that per person (just the Chinese)?


Mon, 01/31/2011 - 09:28 | 919831 tmosley
tmosley's picture

That's great, except that would mean that there wouldn't be any for anyone else.

Once again, you utterly fail because you ONLY look at the production side of the equation, as if stockpiles and demand didn't matter.

Production is 710 Mtoz per year: http://www.silverinstitute.org/production.php

Demand is 900 Mtoz per year: http://www.silverinstitute.org/supply_demand.php

Tell me, what is 710,000,000 minus 900,000,000? 

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