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Sprott's John Embry Discusses Gold Manipulation
"Gold seldom allowed to rise more than 2%" by John Embry, in Investor's Digest of Canada
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Everything I learn I learn from ZH: What is a Cougar?
Cougars are Women in their PRIME: independent, sexy and wildly successful. They enjoy men that are youthful, fit with the same zest for life. Cougars are classy, confident women that already possess many of the finer things in life — but now want the young, hot guy to go with it.
What is a Cub?To snare a true Cougar a man needs to be youthful, fit, unintimidated and of course sexually driven! These men can range from athletes to intellectuals, and from technologists to entrepreneurs and all points in between; they can come in all shapes and sizes, but one thing they have in common is the desire to possess a sexually charged older woman.
What was that about?
Eh, what? I am here in La Bella Italia on vacation and come to ZH for gold news...
Oh, wait, I am kind of young, kind of fit. And, yes, Bella Italia has me!
Cougared!
.....
Manipulation of gold? Yeah, probably. I would like to see morproof as well as more tungsten. Then, I know to buy the last few ozs. available, visit the gun shop on the way back, make sure my cable bill has been paid, and then sit back and watch the fun.
During downtime here in Italy, I have been reading Rawles' book "Patriots", another one of those TEOTWAWKI stories. I will not give away who the BIG BAD gang of MZBs is...
Cougars are Women in their PRIME: independent, sexy and wildly successful. They enjoy men that are youthful, fit with the same zest for life. Cougars are classy, confident women that already possess many of the finer things in life — but now want the young, hot guy to go with it.
What the hell....cougars are women who are way past their prime but who have traded on their looks their entire lives. Now that they can't attract the attention they want with only their looks, they become dime-a-dozen whores. They've thrown away their husbands but kept the money and the kids. For most, the finer things in life they possess were stolen in family court from their husbands. Now they seek to recapture their lost youth by fucking young people. When men behave this way we call them "lechers". When women behave this way we call them "Classy, confident and wildly successful". Go figure.
Yeah but is sure sounds good. Next time I'm at the bar I'll go up to the nearest cougar, call her a whore, then follow it up with a "Watcha doin later on?........ Chances are she will be totally turned on and I will either have to back track or take one for the team.
I have lots of dimes.
when i was young and in florida we called them raisins.
Apparently gold is still recovering from the shocking news that GS is a criminal enterprise. My guess is that it will be allowed to rise steadily until next week's options expiration, when another kaboom will be lowered.
Whaaaaaaat? GS is a criminal enterprise! Who knew? I better sell my gold, yup, that's what I should do....
Better sell that paper gold, yes.
We all need to refocus and take a breath. There's been alot of charge from the GATA, Maguire, Eric King, and ZH about the LBMA fiasco. Sprott and Puplava have kept a clear head and discussed this issue extensively, but has not been given the credit due.
Gold is the ultimate asset for the next decade, and it has nowhere to go (long term) but up, that much is clear. However we all need to keep our eye on the ball and not get caught up in manufactured conspiracies. There are enough REAL and legitimate ones to worry about (crony capitalism: http://online.wsj.com/article/SB1000142405274870450890457519243037356675...).
Remember guys, breathe. There will be time for a crisis, and it will probably be big and bad, but working everyone up into a lather is not helpful right now. For now, we have some time. We can all speculate on how much, could be in 3 months, or in another couple years, but these things tend to take longer to pick up momentum than anyone really expects. (just speculation, but Soros says 8 year cycles 2007-2015, several others are expecting the main event to land in 2014)
For your consideration:
http://financialsense.com/editorials/townsend/2010/0419.html
And anyone who is at all interested in the LBMA Gold issue, including the Scotia Macatta alegations should listen to the last 2 weeks Financial Sense radio shows: www.financialsense.com
But I need the lather. I cannot afford Barbasol since all my funds were with GS. How can I be a cub if I continue going around looking like some kind of ill-looking grasscombing lubber?
THANKS MOM!
The WSJ article you linked is an excellent read. Your point about the time it will (probably) take for this event to play out is also well taken. Besides, it's hard to live on the edge for years and years. My belief in the end game is unshakable, given what I've seen and continue to see. I will change my views only when there is a genuine reason, not a manufactured reason to.
The only pertinent info from all of the charges, was to be sure your gold was either physical, or allocated. The rest was a major misunderstanding on how the futures markets work.
The real "problems" are exactly why you should be looking at PMs right now. I buy some coins everytime there is more not so good news, and that has been quite often in the past months. It takes 4-6 weeks for me to get eagles, I cant imagine being naked to metals and trying to lock in a price, and worry if I will get delivery in the middle of a crisis. Dont get me wrong, in my opinion going all in right now would be foolish, but you cant stop a train.
I really have to thank ZH for the breadth of its commentary on the markets.
It is amazing to compare the growth of ZH and the quality of its work, and many of the other bloggers, compared to some of the older style financial sites that appear to be dying a slow death from obsolescence and irrelevance.
I'll be by your cafe soon Jesse after I look to see if fofoa has anything new up!
Keep up YOUR interesting blog as well!
FOFOA's latest can be found here. http://fofoa.blogspot.com/2010/04/life-in-ant-farm.html
Great read as usual.
I would also like to thank you Jesse for the fine work you do. I make certain to drop by your place at least once a day.
Agreed. Kudos to ZeroHedge! Its amazing the sheer quantity of articles and analyses done on this site. ZH will go down in the history books as one of the most important advocates for truth and information.
Keep up the good work.
Thank you and keep up the good work over at LCA as well Jesse.
Ecrasez Infame ! i.e. I.G. Morgan & Goldman Krupp along with the lapdog traitors in D.C.
GOLD COUGARZ!!
I like Gold.
I like Cougars.
I LIKE IT!!!
I dont giv-a-shit, buy it!
When time comes gold/silver will be the new player!
Should read 'Ecrasez L'Infame'
Booyah, bitches. Get your gold while its on sale! I don't care if its next month or have to wait a few years for the big shakeout. Happening later just means more time to accumulate.
What do you say moles?? Is Embry right?
For anyone interested:
Chartworks - Institutional Advisors (pdf)
files.me.com/fransix/k95iib
Hudson Report (pdf)
files.me.com/fransix/rz2686
The gold junior market is rife with synthetic Credit Derivatives Obligations, where likely the management or insiders are working with bond holder's interest as they have probably insured their company against failure. "The gold price is going to crash" is still very uppermost in their minds as they prepare the ground for mining, but harbour doubts as to the longevity of the gold bull market.
With a decline in the discount rate, it would require a rise in credit default swap rates held against the failure of any gold exploration company. A second fundamental to challenge any insurance scheme against company failure would be the rise in the gold price. Logically, they would be forced to settle.
Another anomaly occurring in the gold exploration sector is the recent takeover offers of Comaplex by Agnico-Eagle, Kinross buying out Underworld Resources, and Osisko making an offer for Brett Resources. All of these are all-share deals, with very little cash on the table. Essentially, you are donating your shares to the greater cause of larger mining conglomerates in the gold sector. And these deals seem to pass with relative ease.
All of these junior miners are being bought out at a huge discount, and present the low hanging fruit of the exploration sector, meaning fewer mining exploration companies available exposed to gold to choose from.
-F6
Nice. Thank you.
This is because Gold production peaked in 2000 and since, has gone into irrevocably supply decline.
Therefore, the price has nowhere to go but up. The list of commodities whose supply has peaked recently is growing...an ominous trend.
As long as there is demand against diminishing supply, you have a rise in price.
One thing about the gold market people won't easily recognize is the decline of the discount rate since year 2000. Gold prices are hampered by long term inflation-adjusted considerations. The gold price bull market is perhaps not so much a supply/demand issue, but a bet on the decline of interest rates for the long term.
I have my reservations that supply/demand arguments will take the day, given that markets are overwhelmed with derivatives, swaps, and programme trading.
None of the five year historical charts at Kitcometals.com tells the story of supply contstraints, but show an overwhelming glut of base metals. (I would argue that a supply glut of the same sort exists in crude oil.) The only metal in very tight supply which you can hold in a bank deposit is gold. (silver was de-monetized.)
In inflation adjusted terms, price charts of zinc, nickel, aluminum, lead, and others would look like a brief price spike in 2007, a crash in 2008, and a rebound in 2009.
The only standout of all of these metals is copper, which is known to be in a warehousing supply glut. Just look at the 5-year supply chart in copper:
http://www.kitconet.com/charts/metals/base/lme-warehouse-copper-5y-Large...
All of your base metals historical charts are available here:
http://www.kitcometals.com/charts/copper_historical_large.html#lmestocks...
This does not argue in favour of an inflationary trend, or supply/demand constraints, but one of overwhelming, short term speculation in the base metals and associated derivatives.
Has the Identity of the Hit-and-Run driver been made public yet ?
Amazing silence so far !!!
Ha Ha Ha!
I'll wait until Glenn Beck picks up on this story.
That's not gonna happen either...
Thank you for not using scribd.
I have noticed that gold is not allowed to outperform stocks. In my observation, there has been 1 day in the last month where gold did better. I have noticed this trend for all of this year at the least. I also think the PTB are fearful of the end of the stock rally because there are few options to turn to outside of stocks, precious metals being one. MBS and Treasuries don't look appealing with the Fed backing away and with trillion+ deficits, so the stock pump continues because it has to; there is no alternative.
Once the banksters are done unloading their shorts however......
Does anyone have a reasonable explanation for this?
https://www.etrade.wallst.com/v1/stocks/charts/liquid.asp?width=805&heig...
or put another way
http://finance.yahoo.com/echarts?s=PHYS#chart5:symbol=phys;range=2010030...
on the second one if you change the start date on the chart to 3/1/10 you will understand my query.
One theory that would explain this is that what ever the price of gold is at the COMEX, in reality its not for sale, especially in size. This would support rumours of backroom cash settlement at a premium for parties looking to take delivery. It is also right in line with the behaviour of the IMF, which seems to have gold for sale, but not really. Buying size, or the fact that you can't buy size, I think maybe one of the explanations. Saying that, I guess Sprott got some size from somewhere.
"Welcome to my gold store. The price for gold here is $1,140 per ounce, but its not for sale." Price ceilings created shortages, and the IMF's refusal to sell its gold to Sprott at the COMEX derived price is a screaming sign of a shortage in physical gold, and a capped market. Hmmm, maybe PHYS is becoming the black market for deliverable physical gold in size. Would be nice.
Deleted
Another reason is that PHYS is a closed end fund which usually trade at a premium to the underlying NAV. You have to pay for the extra security offered by having only one custodian (Canadian Mint) that can be audited and the ability to redeem units for bullion. (GLD has unknown number of sub and sub-sub custodians who cannot be audited and JSP cannot redeem his shares for bullion). Ultimately these are all contractual claims however so if the fiat currencies ever all blew up it would be a legal battle to try to collect if one or more of the players went BK. Still best to hold your own bullion for the long haul I believe.
So I've tried to listen objectively to arguments for and against the case for both gold and silver, and feel that both are a solid way to protect my purchasing power. That being said, with all this talk about price suppression does it make sense to invest more in the other pm's like Platinum and Palladium? I've yet to see anything about their manipulation.
I personally think that Platinum and Palladium will protect your purchasing power as much as any other commodity will. Gold and silver however, wont protect your purchasing power, they will multiply it many times over because of the price suppression that will one day end. When that day will be who knows, but in the mean time I would think that they will perform as well as other commodities, but with the option for a moon shot. At least that is the way I understand it all. Also the potential value of platinum and palladium is much more tied global economic growth and industrial needs. Silver too, but silver has the monetary collapse option too.
So I've tried to listen objectively to arguments for and against the case for both gold and silver, and feel that both are a solid way to proect my purchasing power. That being said, with all this talk about price suppression does it make sense to invest more in the other pm's like Platinum and Palladium? I've yet to see anything about their manipulation.
PGM do not have a long history as monetary metals as do Au/Ag. Only time will tell how well they might serve this fuction. Au has a higher stocks to flow ratio than Ag and for this reason is more purely a monetary metal. I suspect that since the PMG are even more industrial metals than Ag is their stocks to flow ratios would be even lower. According to Prof Fekete this would mean that they would be even less useful as a store of wealth. So in order of preference for monetary purposes it is Au/Ag/PGM
I agree. I own no PGMs. Might be a mistake, who knows for sure?
LOL, try calling up some 5-year price charts in rhodium and ruthenium.
http://www.platinum.matthey.com/pgm-prices/price-charts/
You'd need a stronger stomach than mine to handle those rides. From what I hear they are very illiquid as well.
+1 Au is universal, and coin is easy to deal with with anyone who knows metal. I can hold a krugerrand or an soverein or an eagle and tell you if its real. If I am not sure, I can compare it with another one. With silver I buy old Us coins, halfs and quarters and dimes are easily recognised as what they are, and are sold in bulk for the silver content on ebay.
I had a vampire cougar once. Scary stuff that was.