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GLD Adds 3 Tonnes Of Gold Overnight To New Record, Has Added 124 Tonnes In Past Month Even As Gold Price Remains Unchanged
GLD claims to have added another 3 tonnes of gold to a fresh new all time record of 1,316.18 tonnes as of close of business today. In the meantime the fixing price of gold is back to near record levels... which is where it was on May 11, when GLD held over 124 tonnes of gold less. In other words, the world's biggest real time acquiror of the precious metal has added more than all central banks purchased in Q1 (if one ignores that whole Saudi Arabia snafu which we posted first last week), and the price of gold has not budged by a penny. Well played JPMorgan, well played.
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Do gold bugs buy GLD ?
Only the dumb/REALLY trusting ones.
Those who can't take delivery use PHYS.
All of the GLD haters should put their money where their mouth is. If GLD is a scam, then a guaranteed investment strategy would be to buy physical gold and hedge using a short GLD position.
The downside is zero since GLD will never outperform physical gold and the holding costs will net against GLD management fees.
The upside is huge if the haters are correct and GLD is a sham.
In fact, I think I'll set up a hedge fund with that strategy.
Good point. Let me know when/how I can invest.
Buy physical, short GLD (or other ETFs). Should be easy to do without the bother of setting up a hedge fund.
...
Slightly O/T, but I would urge ALL friends of gold, right now, to go to:
fofoa.blogspot.com
and take his poll question. A or B. I hope we gold fans (Turd, Spitzer, ragnarock, Chumba, gordon_gekko, rockyraccoon, Hulk, dumpster, caviar emptor, MsCreant, Mr Lennon, and all of you who I do not remember at this moment) will belly up to the bar and do the right thing. Be sure to look in the comments section there for another option to do the right thing. I am going to do the right thing.
Freedom is not a freebie.
True that you wouldn't need to do it through a fund structure - but it is much easier that way. Basically, you are paying someone to monitor daily and take care of the hassles for you.
DCRB, it ain't easy being in the minority on some discussion forums. ZH is supportive at least.
Nice article from The Daily Bell staff, here is a sample:
Is Gold Really in a Bubble?http://thedailybell.com/1152/Is-Gold-Really-in-a-Bubble.html
Rocky, thanks for reminding me to go The Daily Bell each day. I only recently found out about them. I like what I have read so far.
...
And check out fofoa.blogspot.com latest. Answer his poll! Check out the comments section for the "Paper Ballot" which is how I am going...
Disclaimer: I am NOT fofoa, do not even know him, but I AM a real fan.
..... good luck getting the physical
http://www.zerohedge.com/article/guest-post-gld-and-slv-disclosure-preci...
Most of the disclosures look standard to me (I am in the hedge fund business). But let's say GLD is a sham, then my investment strategy should be a winner, no?
But the surest way to profit when there is a run on the GLD will be simply holding physical, assuming it is a sham and shams don't always end with everyone getting their money back. If you're really assuming it is a sham, then you'd stay out entirely and bet against the whole thing by accumulating more metal.
I don't think you are getting the trade that I am proposing.
I would be SHORTING GLD, so assuming it is a sham I would make a 100% return on my short position. That is much better than staying out entirely and gaining nothing from the GLD collapse.
Also, I would be able to leverage up my physical metal position by using the proceeds from my GLD short to buy more metal.
I'm not getting it.
The scam is already to take short positions on paper gold, including GLD. The manipulation is said to be to the down side as a means of suppressing rates for trading gold. It's also a costly scam for these commercial shorts given that the rates have continued to rise, regardless.
So to bet against them, you'd have to either go long paper gold (and maybe ask for deliver) or be long physical, no?
I'm really confused.
Don't worry about it. The "dumb money" buys GLD just like the "dumb money" bought MBS. Just remember ...
http://www.youtube.com/watch?v=dddAi8FF3F4
"making 100% shortin.g GLD" versus what?
if you know when the music stops...go ahead. but if you are in this forum i doubt it you know it.
well, if you dont the ONLY option is to sit down and get your chair while people are still dancing....these are fast people and they are dancing close to the chairs....one gets the feeling they know this tune...i would'nt try competing against them you might be push to the floor etc. a lot of accidents can happen when people scramble for whatever chairs are left....
An Experienced Dancer.
TD - if I may: YES - it is WELL DONE from JPM the only thing is for HOW LONG???? can they do it again next month and the month after that....these days looks awfully long to me....the peasants are finally weakening up, and scrambling to save their remaining pennies
If gold goes up 5x in the same time, you miss out on a 500% return to make 100%. Retarded.
If you can't beat them, then join 'em? Is that what you're proposing?
Actually no, the idea would be to beat them. I would be betting on the divergence of GLD (to the downside) against physical gold.
So if GLD ends up being a scam, there should be a huge return. Actually, I would probably short call options of GLD, so the return wouldn't be near 100% but still very large.
The 'profit' on the GLD short aint gonna be much use, in that it will only be paper.
Debt is an illusion, a (bad) dream we will shortly be waking from.
But for that, your fund sounds like a great play.
True - except that I can buy more physical metal with the proceeds of my short position (at least prior to the collapse in GLD).
Give me a break...are u really this innocent? why dont you gamble in Vegas then, your odds are even higher....here you stand NO CHANCE
That's a rhetorical question.
Again and again and again. This is not complicated.
The actual price of gold has not budged because GLD does not own real gold. Period.
Right... Without position limits or margin requirements, a primary dealer can just sell as many contracts as there are buyers who want them.
who the hell is buying all this GLD then ?
It looks like it aint ZHers
the public, the mutuals and the pension industry
turd..what are you confused about? if GLD holds no gold...why wouldnt you short it long term and buy physical? and more physical as GLD unravels...
Because you need cash in your brokerage account to be able to short, and you pay interest on your short. That cash could go to buying more metal instead of playing ponzi games. There are also risks you aren't considering in your short GLD exposure that have nothing to do with GLD or gold. Also, GLD will go up in the meantime and you will have to post more cash to your account. You might even have to sell your gold to meet your margin call. A short GLD/long physical pair trade is stupid.
edit: One last thing... the maximum return from any short is 100% if the product goes to zero, with unlimited risk. Maximum return on a long position is theoretically unlimited. So you want to invest your present cash in a trade that will at a maximum, and when the shit completely covers the fan, net you 100% on your investment, passing up a far greater return on physical? Again, stupid.
They cursed us. Murderer they called us. They cursed us, and drove us away. And we wept, Precious, we wept to be so alone. And we only wish to catch fish so juicy sweet. And we forgot the taste of bread... the sound of trees... the softness of the wind. We even forgot our own name. My Precious.
Yes, Yes, Yes, have been waiting for a gold thread with that quote.
Bravo
Ouch. That hits close to home. However my gold has not left me disfigured and nasty. Infact, it has made me more attractive.
Forgive me if this has been answered before, but are these physical tonnes or futures or whatever that GLD is buying? Have they taken delivery?
Thanks.
"whatever"
Exactly.
Agree, until I see forklifts moving this gold into a vault and removing it from circulation then I expect no difference in the price of gold as it can than just be shorted into oblivion.
Thank you...I guess. More time for me and my family to prepare.
cash-commodity swaps in the form of LBMA leasing primary miner-dealer OTC forwards for some period say 2 m, 3 m, 6 m whatever. OTC forwards are counted by LBMA as physical in the vault the moment they are traded, and thus can be put in the open market. Futures are exchange traded and that is only one of the disadvantages for LBMA selling future contracts to GLD, its much easier to do it in the aforementioned form of cash-commodity swap of defined maturity where the commodity is actually an OTC fwd between a miner and one of the LBMA, or LBMA as a whole, banks. And then you just roll the swap. As I have said, its nothing else than a CLO or CSO, but traded and in the form of the ETF.
Thanks Cheeky, it is a bit over my head and will have to re-read your comment serveral times.
Well, it looks like it works like this:
There is only a finite amount of gold that can be purchased and held by GLD.
And there is an infinite amount of "Short Gold at Market" COMEX tickets that can be manufactured and palletized.
So that is why the gold price is lagging.
Paper rules....LOL....
Thanks to over a Quadrillion in derivatives outstanding.
So the quadrillion dollar derivatives Deathstar can be aimed at any asset class? How long can this go on?
Someone needs to aim it at AAPL.
As long as we let it.
As long as you are 'paying down debt', or holding $(debt) denominated financial assets, or trading in the 'markets', you are enabling it.
This whole sham exists at our discretion.
From here :
Bro that much notional? Pretty unbelievable...
When will somebody notice that there isn't that much physical to be had?
False. All you want at spot + $45 for K and ML.
OK, then I want one billion ounces.
Let's see the Miracle Paper Gold Machine spit out that!
What's the notional vs real value of GLD holdings? I would be interested in that info...
NAV per GLD in gold: 97.810640
All time low
Tyler thanks for the reply. But remember when you made those posts on LBMA silver manipulation, where it was thought that as much as 100 x leverage was regularly used on those contracts? I just wonder if it's at all quantifiable to know the amount of the GLD is levered vs its *real* value of its gold holdings. That would be interesting to know, like that silver stuff...
The GLD NAV in gold will continuously sink due to management and operational costs.
So that fact that it is at an all-time low should would be expected. In fact, I don't see how it could ever go up.
Hence my proposed hedge fund strategy to buy physical gold and hedge with short GLD positions.
Yes, I'm not sure why your strategy isn't obvious--unless--your position gets killed in the short-run (I'm not in the HF business) as you're sticking to your strategy (assuming long PHYS, short GLD)...there are definitely divergences, which at scale and leverage, could temporarily equate to v large interim losses (and, even death). Then, maybe I don't know enough about how these seemingly rigged markets work...in the least, it seems like you have to be bankrolled by serious money AND have to have conviction/staying power...
Ignoring fees and the case where both: 1) PHYS has a ton of cash on hand (in the process of acquiring physical gold); and, 2) GLD receives delivery of physical gold at the contractual price from sellers of its derivatives contracts (given the fractional reserve/leverage system), then when else would this strategy NOT make a lot of sense from a risk/reward perspective (under a given currency)? Please be gentle ZHers...
You're going to take on JPM and win? Good luck with ALL that...
Accident waiting to happen...
That problem will take care of itself.
Engineer equity market collapse. Cause weak hands in gold and silver futures to sell. Equity market collapse is worth the potential short covering in PM. Equities will never be money. But gold and silver certainly can be.
this is just building out the paper inventory to set up the big flush lower.
Why anyone with half a brain would buy GLD is beyond me.
Good exit point today.
I remember 1981, when poor people were selling there cows to buy gold, we are going to witness the same in the coming future, Gold is the tax for the poor, we are going to make our king richer
you are an idiot, do you see Paul Volcker at the Fed ?
Lottery tickets are a tax for the poor.
Television is a tax for the poor.
In my best McCartney voice
"and I am the taxman, yeaaaah, the taxman"
Poor people (almost by definition) do not own gold.
the single speck of sand which topples the pile ... one person, disgusted, seeks to have his services compensated only in physical gold ... wouldn't miss that show for anything ...
Tyler - Just finished reading the articles and commentary for pages 1-2... ZH began with quality and strong commentary... Today, F-bombs and profanity appear more frequently in the comments. I regret the degradation and the slippery slope into the abyss of the ordinary, for you and the fine founders of ZH...
It's actually been a lot better than when the anonymous maniacs if the internet were allowed to post their garbage. I'll take the comment quality of present vs like 10 months ago.
You are right. We should immediately proceed to weed out all non-constructive reader comments.
Sarcasm? I'm confused. Censorship? Hey, it's your place and you have the right.
I've been here a while and have found nearly no need for profanity, but others have punctuated some pretty good ideas with it. Who is to be the arbiter?
Why do readers still have a problem with distinguishing sarcasm after a year and a half?
For the very simple reason that some of those who have been labeled trolls are no longer here. (Shall I name a few?) True, their contributions were less than stellar, but you'll have to admit that they created some dense conversations! So, some confusion about your comment is warranted.
No need for confusion
I knew you were being sarcastic. Because if you wanted to get rid of non-constructive comments, you would have started with the comment you originally responded to.
That would include your comment as well, AVP? And this very one to maintain some consistency. This banter is so much fun!
Abyss of the ordinary? More like abyss of the mind bendingly refreshing truthiness with well placed witticisms. There is nothing finer my fellow commenter than a craftily positioned F-bomb. As it is in life, so it is in ZH when often we find ourselves mucking through the filth in search of that one grain of information that ignites in us the spark to reach out to each other and improve our collective situation. When the protests start do me a favor and drown out the F-bombs racing through your mind and buy a rioter a bottled water.
Consider profanity our way of relieving our own psychic pain and the cognitive dissonance brought on by living in a reductio ad absurdum world where you can never really tell if something is news or a story from The Onion.
The gears of the bewilderment machine grind on.
http://www.nydailynews.com/lifestyle/health/2009/07/14/2009-07-14_cursin...
The gold price is going nowhere because GLD sucks up all of the demand and shits out paper certificates. Just more tension on the spring. How much longer until this bitch blows..
Central Banks must be scratching their heads wondering where the fuck GLD is getting a hold of all of this physical
Central Banks are the ones leasing the Gold to GLD. It blows up when the Central Banks either refuse to
lease or are actually asked to deliver...
http://www.silvermonthly.com/208/central-banks-lease-gold-silver-distorting-markets-balance-sheets/
How many leases does each central bank allow?
If gld is leasing gold, then the 100 to 1 ratio is compounded by X leases.
paper backing paper..
They won't tell us. Audit the FED.
GLD will never ask for delivery.
They leased the silver stocks of central banks for the entire world - and delivered. Ran out a few years back. Sure they will deliver and have been.
Charles DeGaulle demanded physical gold in trade for US Paper Currency certificates in 1968 and the US Gold window was closed. Paper covers Gold, Scissors cut Paper, Rock breaks Scissors. In 1980, Jarecki and the Comex board advised Nelson Bunker Hunt of Silver Rule 7..net result silver traded "for liquidation only" (no delivery on Comex contracts). Paper covers Silver. GLD begins with Paper and there is no need to play any further; Paper it is. When we get it, you'll get it. "Don't do nothing 'till you hear it from me..and you never will." If you don't like the script they hand you, go out and write one one of your own.
Gold will be the best-performing asset for the rest of the year as investors seek to protect wealth from sovereign debt risks and economic turbulence, according to about 30 percent of respondents in a UBS AG survey.
The survey was conducted last week at a UBS seminar in Wolfsberg, Switzerland, of central bank reserve managers, multilateral institutions and sovereign wealth funds, the bank said in a report dated June 18. More than 25 percent said global equities would be the best performer, followed by U.S. Treasuries. Gold was the most popular response. Representatives of some 80 institutions attended.
http://www.bloomberg.com/news/2010-06-22/gold-to-be-best-performing-asse...
Gold will be great. Silver will be better. The Central Banks are out of silver to lease and shortages are apparent.
A true KABOOM is possible.
Suggestions on where to purchase physical gold? I'm considering an APMEX order.
GainsvilleCoins seems to have better prices. I've never had a problem with them. I've always heard good things about APMEX.
http://www.gainesvillecoins.com/
How is Gainesville on turnaround? One thing about APMEX is I've always had delivery in one week or less.
I've only had five orders, but all have arrived within 48 hours.
Always check www.bbb.org before ordering from anyone. And even that isn't the whole story--Goldline honors their contracts and makes delivery, but they rape you on the surcharge above spot.
http://www.bbb.org/west-florida/business-reviews/coin-dealers-and-supply...
One place I've bought a lot of silver rounds from is:
http://www.nwtmint.com/
Northwest Territorial Mint. I live close enough to drive to their facility and pick it up. But their price spread over spot is one of the better ones on the Internet. Pick it up in person and you can do it anonymously, should that be important.
I've heard that if you have PM's shipped by them, it can take weeks to get delivery.
They've done okay by me though, and at a good price.
Also consider a local coin dealer. Most, if not all accept cash and you won't get
the added shipping charge.
no sales tax on internet...
Things are getting more desperate each week, each day- that is why ZH is showing more profanity. Gallows humor. I bought a shitload of tracer rounds today = you load them every fifth round, so you can quickly correct your hits on target. I pity those of you who follow ZH, and have not already stock piled gold and silver, and guns and ammo. What, exactly, are you waiting for? Do you wish to die? Is there not some throwback part of your animal DNA that wants to merely survive? You must take responsibility for your own life, and your families life. What the hell are you thinking?
Just finished the last book in Chalmer Johnsons trilogy- blowback, Sorrow of Empire, and Nemesis. Excellent reading - if you havent read these books, you are unlikely to grasp what we are seeing proceed before our eyes. The Godess, "Nemesis", had this to say, and I love it: Only The Doomed See Me.
Unless you have a small platoon shooting with you in same direction, don't recommend tracers. They show YOU where the bullet WENT, but they also show everyone ELSE where the bullet came FROM.
Bingo.
....unless your running CAS in your Laron and need to see where your rounds are hitting.
Not joking at all - these people are fair gold dealers- Mexican 50 pesos, Kruggerands, silver ullion. I trust them- dealt with them for a decade. Fair, prompt- no bullshit_ http://www.brokencc.com/ they earned my trust
Hey AF vet - didnt notice your name - I was in that service - not kidding about the gold recconemdation. Hey, name the best stripclub in Wichita, or tell me what city , or city area, is a club named "One Eyed Jack's located?
whee this investing stuff is easy!
wait, GLD? [cough cough]
I love all the acid Gold hatred! It's lots of fun to read, keep it coming folks! Cause maybe it will be therapeutic for you to purge all that anger. But it won't change the facts of life: gold in this economy? Goin' up up and away in a yellow balloon while things on the ground are burning.
The point of view of anyone with some capital to protect is that all asset classes beside gold have all failed to pass the smell test. All have been so abjectly manipulated, distorted and abused that you just can't trust them anymore. We're down to 3 choices for economic security: US treasuries, cash under the mattress or gold. Of the 3 only gold protects you in case of woops hyperinflation! At the rate Central Bankers are printing money and playing with the very guts of the capital markets nobody who's well informed would be surprised to be paying for groceries with $1000 dollar bills.
The huge increase in holdings of physical gold and GLD is an indication of a new phase of gold investing: long term horizons. People aren't buying gold to ride for a quick trade anymore, or to hedge against next week or next month. No more. They want something to be able to pass on to their spouses, kids and grand kids. They want serious, industrial strength idiot proofing because they've lost confidence in the economic policies of central banks around the world. It's a full realization of the dang fool recklessness that we've all been living with for the past 3 decades. People allowed themselves to get seduced by financial recklessness for long enough, but won't get fooled again.
I am quite partial to Gold. Even more so to Silver.
Loves me those Gold Maple Leafs. Got a few squirreled away. Wish I had a lot more.
Loves me my generical silver rounds too. Got enough in the secret pit to fight off a werewolf invasion. Wish I had a lot more.
Would never trust some weasely banking type person to sell me IOUs for gold, thanks very much. I want to be able to take my gold for a drive in the car with the windows rolled down and not have it blow out on the freeway.
Now as for weaponry, it's a challenge because we have a suicidal family member and I don't want OUR ticket out to be HER ticket out. This is what you call your basic conundrum.
Yup. Agree. The watchword when it comes to money isn't "Talk to Chuck" anymore, or "Join the Herd" it's every man or woman for themselves. Already here. That's what it's come to. But that's what happens in serious economic dislocations. So me too on those gold coins. Love 'em.
What's amazing is how the mood has changed so profoundly in a year. Last year many folks still would let themselves believe that we were just visiting "The Great Depression Theme Park", and soon we'd all be going home from this excellent adventure. This year most folks are running a combination of scarred, mad and wise to the "how great things are" lies. Some of that is because now everyone knows someone who lost their job with no plan B. But some of it is that we've reached a time when the old saying about "you can't fool all the people" is coming home to roost. Most are aware that the last 3 decades of Shop till you Drop are coming back to haunt us. We sure shopped. Now we're dropping.
uh put your gun in your safe with the gold?
Dr. S: Sorry stranger, I came as soon as you kicked in the front door... You want me to give you WHAT? Hang on, I've got to go get something out of my safe.
Stranger: OK lady, but if you're getting a gun, that's cheatin'.
uh put your gun in your safe with the gold?
You read me like a book. It is exactly why I got involved with physical gold/silver.
best,
Radek
We can still be frustrated by the frequent raids and takedowns that occur as part of the overall manipulation scheme for gold and silver but we should also be encouraged by the fact that the message is getting out there.
In years past the buyers of futures contracts were getting served up month after month by the scam. Now they appear to be lurking in the weeds and taking advantage of the regular intervention in order to secure cheaper contracts.
But more importantly, more and more investors are taking delivery of the metals instead of just playing for paper profits, and that is the factor that is putting the most pressure on the Cartel.
As Adrian has documented, the total open interest standing for delivery each month has been on the upswing, and this amount represents a larger and larger proportion of the total metal available. This has been supported by anecdotal evidence.
Remember a few years ago, when the silver and gold was all but sold out of most retail stores, we were told that there was plenty of large bar silver around for big buyers, and it was just the dumb money little specs that were buying.
I have not heard that nonsense for a while. What I am hearing is that its now hard to buy gold and silver in large orders, and that there are major wait times for significant orders.
Consider how long it takes for Sprott Metals, PHYS, to get filled on a decent size order of physical silver. If there was plenty of big bar silver lying around, then it should be a fairly simple transaction.
Contrast this with lumber for example: if there is a glut of lumber, and someone shows up with a big order at market, the sellers can't wait to get it out the door, they can't ship it fast enough. But with silver, there are delays amounting to several months. Does this suggest a market glut? I think not...
During a recent tour of a mine project I was challenged by an analyst who pointed out that there are several new, large mines just commencing production, that will contribute tens of millions of ounces of new silver production for many years into the future. His opinion was that the new production coming online will cap any long term rise in the price of silver. This is a convincing argument, especially for those who believe the statistics that are cranked out by consulting firms like Virtual Metals and GFMS.
However, what people fail to take into account is the fact that worldwide silver consumption was able to chew through hundreds of millions of ounces of silver stockpiles in just a few decades.
Silver consumption today is higher than it was in years past, even when photography accounted for a big chunk of the net consumption. And many of the old mines that have been large silver producers for many years are now approaching the end of their mineral reserves, such that some of the production will be lost even as large new mines are being developed.
We can be critical of the assumptions that consulting firms present. The numbers they offer for total supply include recycling estimates that are wild guesses and likely far overstating the total silver available.
It is clear that pure silver bullion is available in far lower quantities now than at any time in the last 40 years. I doubt the input of new production is going to resolve this shortfall. And while there are indeed stockpiles of bullion held by speculative investors, I doubt that this metal will be available for resale at anywhere near the current price regime.
Suffice to say that the drawdown of silver bullion is real and it will make a difference. That certain powerhouse consulting firms are off base in their analysis is nothing new to the GATA army, but it is going to come as a surprise to many analysts that treat that nonsense like gospel.
As more and more people become aware that the inventory numbers are much lower than has been estimated, the urge to buy and hoard bullion is only going to increase.
And I am not even talking about the phony ETFs that will likely go sour sometime in the future and default.
Gold is a different animal, since most of the gold ever mined is still available in inventory somewhere in the world. But with worldwide gold production in decline for several years running, the same fact is relevant: there is only so much bullion available at anywhere near the current price regime.
Sure there is infinite paper gold, and for most of the last 10 years that has been the dominant factor influencing prices. We are seeing that change now in real time. And still only a very small minority of investors get it.
The word is getting out, and the balance is shifting.
The shift in market awareness is a process, just like grains of sand falling in an hour glass. It is not something that will happen overnight. It has taken more than 10 years just to get to the point where rational people are even willing to consider that a monumental scam has been ongoing in the metals pits.
In time there will be few people left that do NOT think the metals markets are rigged. That will be the final straw that breaks the manipulation, even as the last bullion vanishes from the COMEX.
MexicoMike @ LeMet
Excellent points, all, MexiMike.
I only hope that all the price suppression can keep going for a few months more so I can get my few remaining resources turned into Ag and Au!
DavidP, you and nuinut (especailly you nuinut) should also go ASAP to:
fofoa.blogspot.com
and answer his poll. A or B. Do the right thing. In the comments section there is another option to help do the right thing.
Reading FOFOA and doing the regression to Another was the most exhilarating month I ever spent. Well worth the effort. One cannot recommend this educational pursuit enough. Once begun in earnest, the pursuit is enlightening.
The current bubble is the US bond market. Time to burst is within one year. US is behind the curve on fiscal responsiblility, and best hope is a conservative election result that provides a teporary bump past Christmas. Without a budget reduction focus in the next election, US bondholders will see the end of their gains. Just my opinion.
A little morsel for those who are smart enough to understand. A year ago - I got a Browning cap on, tats showing from my wifebeater tshirt, Ray Bans. Luchesse Boots, Full Quill, not belly, some Tequila coating the insides, to take any edge off - therr 20mg Vals, and it is 11 Am. in fuckshit back country USA. Monster Chaos on Board. Walk into a pawn shop I have been scoping for a year - the proprietrs are- apparently, Redncks< Road Kill eaters. This is fucking Ruby Ridge a stones throw away. I try to look random, maybe edgy, despearte. I talk to the rednck lady about some gold chains- she immediately is on goldseek getting the instant price of gold- I am newly fucked, dying benaeth the Ekk racks. Then , I notice this display case, from like 1952, you have to push this big button to make the dsplay rotate - it is chock full of like a thousand silver coins from all over the world, and the sign says, on any piuchase over 600$, 50% off. Lietrally all the coins are fetishisyticallay inscribed with pencil mark details of their selling price, and their silver content, and some considtent index number to some int directoty of coin prices, I sit there, rotating the display- may coins come u >99 silver, wirh weight - many from Mex, Egyopt, Pjhillipines - Germanu-- everywher- a single mans collection, meticulously labeled. ALL silver. 50% marked price. So, I was like okay- someone took alot of troble to collect and document these thiousand coins- meticulous- but when? relative to pricvs now?> The lady said that yeah she knew this guy ad he was dying and she bequethed this t o her - I assummed they were stolen and fenced. meticulously described and detailed, I actaully left the store, and checked some of the prices thru ebay - they were actually current retil prices. There were no frwer- when I actually bought them- no fewer tha 150 coijs form 1700's. I went thru them all, with this lady , nad her son, pluhgging into calculator, the penciled price, andthen her son dounle checked it, and I double checked it- and we went through about a thousand coins, and then we cut price in half, and I bought iy. I got a book on Amzon trying to follow prices- the actual prices on most of them were actually going price- when silver at about 17/oz. Walked out with sevral pounds of old silver coins thatm pretty likely are worth twice what I paid. It was, basically, very cool to famiarize myslef with these many varied antique silver coins, and tohave made, like 5000$ in the transaction.. Intersting human stor y- you wonder about the circumstances that these coins traversed - methidical catalogion, and pricing in pencil, refernce to INT standars, then in arinky ink pawn shop. Life Goes on, but Icherish these pieces of hsitirty. Do you know what it is like to feel an 1870 coin minted in Mexico?
One more morsel, for those of you that live like this- I was in a Gold shop in Spokane, a year ago, when it was crashing, I had been in theshop before. I was lokking as redneck as possible, Had a leather stachel over my shoulder- theshop was buzzing with like thrity new people- looking at coins. Jews behind the counter. Face off between me- redneck, and jews - love jews for who they are- we are all diifernt and that gives us differnt ualities, I am a white asswipe with a leather stachel, and ther are some cool young jewbeffers. I say I want to buy all the Kruggernad sthey have- witch was 40. The gold spot price was like 910. They said they could sell me them at spot plus twenty. I asked for a calculatoe0 everyone on the store was watchinf, I said spot plus ten, they confeerd, and asid no - spot plus 15. I sat for a long while, fondling a stack of 40 Kruggerands - the store was silent with many new buyers watching. I then told them to show me on the calcualtor thire final price for buying 40 Krugs. They typed in spot plus 14$. I nodded, and started pulling out of my napsacvk 40,000 dollars - 10 dollar bills rapped in rubber basnd - just covered the counter with it, and they - jewbeggers- but love them- counted it metcilously, in littlestacks, and everydody watched, And the young Jew said, mosylt to himslef, with a note of strength - you are doing the right thing, this is money, it will simply incraese. I gave then 40 K in cash, and they counted the 40 Krugs out to me, and htey weifged so nicely in my bag, and I left behind a shop full of people increasingly uncomfortable watching a guy just do what I did. They would fuckind diamaond plated diapgragms if they saw me do that when it was a380/oz/ These esxperinces have been so wonderful to live thru - being this loan guy in a haunting cap, wife beater tshirt, Tats, buying large chunks of Kruggs at 3-400/oz. How many got srories like That>
Anybody who thinks GLD actually "bought" 124 tons of Gold deserves to lose their money. In fact, I would argue that buying GLD helps Gold price suppression. The scam artists at Wall Street have, in fact, come up with a scheme where going long is actually going short i.e. the "investors" (suckers, really) are taking a position opposite to what they *think* they are taking!
"real demand" simply being poured into a black hole of fake paper. a pure perception game. fake rolexes...
the elegance of it is friggin killin' me.
as we get closer to the inevitable edge of this mess (weeks, months, years, ?), i have this nasty feeling that there is something much much bigger going on with GLD than meets the eye. theory in development:
<tin foil hat on>
look, we've got the third biggest holder of gold (on paper) in the human universe taking the form of an ETF.
ETFs can close up and cash out: "here's your money at 'market'. now go away." - kind of like FDR's 1933 forced-purchase plan, but no real gold...
mr bernanke/timmay (proxied through a few banks) printing up zillions of payout checks and forcing GLD holders to pay metals-level capital gains (no long/short term differences), and/or re-invest in something else, say treasuries, GE, GS, GM... (love those 'G' spots)
many of these investors are diversified IRA/401k holders (not PM purists) that don't really have many other traditional options for metals... what do they do? (not that many will do the bullion-vault IRA thing... too constrained) some will probably liquidate and buy physical.
if the PTB were to do this, the real metals market would *burst* upward in the scurry to re-establish desired percentages of metals hedging in accounts... instant bubble. followed by an engineered major crash? - damage the confidence, damage the real-demand (very speculative, that part, yet, with no metal ever passing hands or established as 'missing', demand wouldn't change due to fear, but rather irritation and inconvenience)
the additional transactions/gains would net the banks/government a bit more taxes. these amounts might be in the noise, though.
at what cost to the market?
- no more GLD - so what? make another one (CEF/GTU/PHYS notwithstanding)
- pissed off, unhedged tax-owing GLD suckers... so what? clearly don't trust the gub'mint. f--k 'em
- foreign government/investors - hey, everyone got paid. and in US dollars! so shut-up.
- loss of confidence in ETFs - eh, collateral damage. cost of doing business. and it's not like there's a GE-like company being sacrificed... it's a friggin ETF. no jobs, no loyalty, no history, not TBTF...
gains to the gamers:
- the biggest metals scam ever is liquidated without being exposed... paid for by the PTB/treserve with 'free' money
- arguably, injecting stimulus into the market this way is rather novel, vs HAMP, unemployment extensions, etc.
- forcing one-time tax hit on investors?
- rinse, lather, repeat...
- the gamers may actually have some real metal (paid for in funny-money), and they will see that investment go through the roof... (fancy that...) also handy to manage a crash (but real metal really isn't needed for that anymore).
- treserve indicates that they are restoring ft knox, or some form of physical to their own portfolio in light of the recent FX volatility... (ya, that might be horse-crap, but it occurred to me...)
i dunno. there are way more upsides for the PTB than downsides on first glance.
i haven't thought through the impact on the global markets, if any - BRICs, etc. perhaps the external effects would be minimal, given that the believers in physical (e.g. Russia, India, etc.) are already invested in as much as they can afford at any moment. that dynamic could change, probably inspiring more demand vs less.
</tin foil hat still on...>
again, a theory in formation, but odder theories have been floated in here... 'tis the season.
comments/flames encouraged...
and any hints on how to make money on it...
</tin foil hat won't come off>
no need for the tinfoil hat. i too have wondered how TPTB would set the endgame with GLD, etc. up so that gold remains suppressed and/or in their total control. Though invested fairly heavily (at least %-wise in my case) in silver and gold bullion and silver miners, somehow I am still unsure that any of this will be allowed to seek its true value, even if the cat is ever let out of the bag.
good post, I have been searching for different possible scenarios for if/when this reckoning occurs. You gotta believe they won't let the price run if it's not in their total control or interest to do so. And even if it does, Plan B would certainly be some sort of tax structure or law banning the use of PM's so the little guy never gets the upper hand.
Any additional ideas appreciated.
Deep in my massive gut, I believe that Gold and Silver are the only real money.
If the Real Powers who own and operate TPTB also believe this, all this paranoia suddenly becomes reality-based.
We keep tally of holdings with our paper and electronic money accounts. All are now being looted systematically, with the funds moving to the banks, thanks to the help of most G20 governments.
It's vital that these funny funds be turned into Gold and Silver. But no thief in his right mind will pay full price for what can be plundered. So we get a massive suppression of the price of Gold and Silver vs. funny money during the acquisition phase.
Once the optimal amount of real Gold and Silver has been moved into the secured vaults of the Real Powers, the price lid comes off. This is where the ETF fraud comes to light of day.
The funds will announce, sadly, that there is not enough gold to give to everybody who owns it. But they will all be made good as soon as possible with a check for the value of their paper gold holdings as of settlement time.
Most people will feel proud that they turned a nice paper profit on their clever ETF investment, even if they have to wait a couple of months for the check.
The Real Powers will smile wisely as the paper money that they've just gotten rid of collapses. This is the point where the world once again turns to Gold and Silver as the only real money.
And who now controls most of the real money in the world...?
That's my silly little scenario. And that's why I own real Gold and real Silver.
i think they're going to get away with the crime too. impressive.
When PHYS or CEF do an offering it takes 4 to 6 months to take delivery after the offering. Said offerings combined are less than 50 tons. How the f*** does GLD add 124 tons in a month?
GLD investors are better served being long BP.
Gordon gekko wrote:
"Anybody who thinks GLD actually "bought" 124 tons of Gold deserves to lose their money. In fact, I would argue that buying GLD helps Gold price suppression. The scam artists at Wall Street have, in fact, come up with a scheme where going long is actually going short i.e. the "investors" (suckers, really) are taking a position opposite to what they *think* they are taking!"
Hi GG, pls would you like give further explanations about this scheme?