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Buy PHYSICAL Gold. NOW: The Discount of a Lifetime: Or Why You Must Abandon the Fake Paper Gold Market
For previous articles by the author go to: Gordon Gekko's Blog - http://www.gekkosblog.com
They just showed their hands. The paper Ponzi pyramid is wobbling. It’s time to go in for the kill.
Let me explain. But first let’s get a handle on what’s happening:
“We’ve traded gold for nearly four decades and we’ve never … ever… EVER… seen anything like what we’ve witnessed in the past two trading sessions,”
Dennis Gartman, via The New York Times
“This is an orchestration (the smash in gold). It’s been going on now from the beginning of April. Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance…it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.
The exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail. So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.
And to help protect this policy they have convinced or pressured the Japanese to inflate their own currency. The Japanese are now going to print money like the Fed. They are lobbying the ECB to print more. So I see this as a dollar protection policy...I know where the gold is coming from in the market, it’s just paper. It’s naked shorts, there is no gold there. If somebody wanted to take delivery on those contracts nobody would be able to provide it. I don’t know what the source of the (physical) gold is...
..I think the power of the West has already been lost. When you have off-shored your manufacturing and professional service jobs, you’ve hollowed out your economy. So gold or no gold, the United States economy has been severely damaged and I don’t think it can recover...
This gold business (smash in price) is something to do with the dollar….They are trying to destroy gold as a (safe) haven from the dollar in order to carry on the Fed’s policy of negative real interest rates. That is what is driving the illegal policy of selling naked shorts in order to manipulate a market. If you and I were to do something like this without the government’s instruction or protection, we would be arrested. So the fact that it’s illegal, being done by the authorities, tells me that they are seriously worried about the dollar.”
(All emphasis mine.)
Paul Craig Roberts, Former Assistant Secretary of the Treasury (via King World News)
If there is one thing this latest shock-and-awe “theater” in the Gold market tells us, it’s that the government and banksters (i.e. the oligarchy) must be REALLY pissing their pants. It doesn’t show their strength – it lays bare their weakness. They just made it abundantly clear (again) how important Gold is in their scheme of things. A rapidly rising Gold price would reveal the utter fraud of their paper money Ponzi scheme and reveal them as simple hucksters, charlatans and scamsters counterfeiting money and hiding behind all the elegant regalia. The emperor would be naked. Can’t let that happen. The franchise of the paper dollar – arguably the most profitable franchise in history enabling theft on a global scale - must be protected at all costs. Something is or must be about to go seriously wrong with their empire of fake paper money (perhaps the recent gyrations in the JGB market is a tell).
With this recent paper Gold market “drama” they have only shown their desperation and weakness. The level of their desperation this time is so great that they had their bought-and-paid-for shills in the media mouthpieces attack and mock Gold and its buyers even before the sell-off (which further goes to proves that it was orchestrated; I’ll provide more evidence below). Consider this in an article “Lust for Gold” which appeared in the New York Times on the 11th April by none other than the lead bankster shill and cheerleader Paul Krugman:
After all, historically, gold has been anything but a safe investment…John Maynard Keynes famously dismissed the Gold standard as a “barbarous relic”, noting the absurdity of yoking the fortunes of a modern industrial society to the supply of a decorative metal…for a while, rising gold prices helped create some credibility for the goldbugs even as their predictions about everything else proved wrong, but now gold as an investment has turned sour, too. So will we see prominent goldbugs change their views, or at least lose a lot of their followers.
Its funny how the paperbugs liken Gold buyers to a cult, while not realizing they themselves sound like one, with their irrational faith in and defense of paper money (well, not completely irrational - they know where their next paycheck is coming fromJ). While I may provide a full rebuttal to Mr. Krugman in a later article (it barely deserves one, childish and inane as it is), I will point out this: If Gold is so inconsequential and such a “barbarous relic”, why is the government lapdog media busy trying to discredit it and all those who buy it? I mean just look at the sheer gloating:
From the Business Insider:



The WSJ also joined in the fun:

I’ll tell you why - because underneath all the bullshit they are spewing they know that buyers of Gold are not actually buying anything but voting against their paymaster government and bankster oligarchy. There is nothing spectacular about Gold except for its ability to reveal the truth about the scam being run by our ruling feudal masters, and this is the one and only reason why Gold and all those who buy it are so vilely derided by the establishment.
The global economy is still in shambles and the oligarchy have shown that they can’t do ANYTHING of ANY real consequence except manipulating the public opinion – either via “market” shenanigans or media mouthpieces. Just think about it – a global empire, a powerful and apparently invincible oligarchy threatened by just an inanimate piece of metal. But they know that because all their power is based on lies and deception, a simple truth - the rising price of Gold indicating the massive dilution of currency - can completely destroy it. Having become thoroughly corrupt, impotent and incompetent, unable to fix anything (they couldn’t run a lemonade stand if their lives depended on it) and fast becoming desperate with Gold having risen more than seven-fold from about $250 in 1999 to $1900 in 2011 exemplifying the worthlessness of their paper money and reality catching up to them, they did the only thing they knew: attack the messenger - Gold. It’s a short term fix which perpetuates their paper money franchise and thus their power, but longer term it’s meaningless. It doesn’t fix the massive misallocations which have occurred and are occurring due to central control of money via the paper money system and it doesn’t change one bit of the truth of the present dilapidated state of our economy and society which is a direct result of it. In fact it’s making the situation worse as by not allowing the misallocations to correct and reallocation of capital to productive hands to occur, huge amount of scarce resources – both human and material – continue to be wasted on unproductive enterprises.
Unless and until the following factors are no longer true, there is and will remain a case for buying Gold. These factors did not vanish overnight because of a single orchestrated plunge:
1. Exponentially increasing Government and private debt
2. Exponentially increasing money supply
3. Consistent rise in the price of items of daily need (yes I know there is no “inflation” but anybody who goes to the supermarket knows what a crock of bullshit the government CPI numbers are)
4. Rising unemployment and falling incomes
5. Corrupt government and politicians
The banksters are acting like a child throwing a tantrum because daddy (Gold) is going to take their toy (paper money) away from them, so they simply wail and try to hit back at daddy, as if that would accomplish anything. People who know the truth should simply sit back and laugh at the banksters and their shenanigans while using the opportunity to buy even more.
The Discount of a Lifetime
The way this price fall occurred makes it clear that there were NO fundamentals behind the move and, paradoxically, strengthens the case for Gold even further. Let’s take a look at exactly how this latest plunge in Gold price happened (via Ross Norman):
The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level... the line in the sand.
Two hours later the initial selling, rumored to have been routed through Merrill Lynch's floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level.
The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production - too much for the market to readily absorb, especially with sentiment weak following gold's non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data. The assault to the short side was essentially saying "you are long... and wrong".
The CME's 10% reduction in the required gold margins in November 2012 from $9133/contract to just $7425/contract made the market more accessible to those wishing both to go long or as it transpired, to go short. Soon after we saw the first serious assault to the downside in Dec 2012, followed by further bouts in January 2013 - modest in size compared to the recent shorting but effective - it laid the ground for what was to follow. One fund in particular, based in Stamford Connecticut, was identified as the previous shorter of gold and has a history of being caught on the wrong side of the law on a few occasions. As baddies go - they fit the bill nicely.
The value of the 400 tonnes of gold sold is approximately $20 billion but because it is margined, this short bet would require them to stump up just $1b…. By forcing the market lower the Fund sought to prompt a cascade or avalanche of additional selling, proving the lie ; predictably some newswires were premature in announcing the death of the gold bull run doing, in effect, the dirty work of the shorters in driving the market lower still1.
(All emphasis mine.)
If someone is selling anything, the rational thing to do would be to get the best price possible, right? Would you get the best price if you sell your lot in one go flooding the market? Would you want to overwhelm all the bids and crush the price? Yes, but only if exactly that was your objective – to crush the price. Nobody sells 400 tons (!) of gold in one go if they are trying to get the best possible price. So this wasn’t a case of varied market participants selling their gold holdings having considered the fundamentals for Gold and arrived at the conclusion their long position didn’t make sense anymore. This was a case of concerted selling by one single entity whose sole intention was to drive down the price. Not only that, nobody sells $20 BILLION worth of Gold in ONE GO without some sort of state/CB backing. You think some piddly hedge fund manager would have the balls to do this while risking prosecution and jail time? So not only was this market manipulation, but state-sponsored market manipulation completely unrelated to the reality and the fundamental basis for buying Gold, which remains as strong as ever.
But it gets better. While this is the probably the most spectacular takedown of the Gold price ever, but by no means is it the first or the only one. Anyone who has actually traded the Gold futures market for any length of time knows that this happens on a regular basis. So basically the government/Central Banks use the paper gold futures market as a price control mechanism for Gold (of course, they can’t impose price controls on Gold overtly as it would reveal the lie - if Gold is a barbarous, meaningless relic why would you need to impose price controls on it?). But what happens when price controls are imposed on something? Shortages start to occur resulting in an even greater moonshot in price than would have otherwise occurred. A “black” market (which is actually the free market at play and depicts the true price of the commodity) eventually emerges where it sells at a premium to the official price. There are two reasons for this:
1. Buyers - aware that the commodity/good is available at a discounted price - beat a path to the door of whoever is foolish enough to sell it at the government mandated price. Availability at that price soon runs out.
2. The good becomes even scarcer as the costs of producing and selling it are no longer covered by the government mandated price. Aware of this, sellers withdraw from the market and demand ever higher prices for the good.
And remember: for marketable goods, the “out” is money, but the only “out” for money is a superior form of money. When the paper currencies become unstable, the only “out” is Gold so you can be sure there will be no lack of buyers, only sellers – and there is no upper limit to high it can go. Theoretically, the price will be infinity when no seller is willing to sell Gold in exchange for paper. You want to be “out” of paper before we reach that event horizon.
If the rigging in the futures market keeps continuing, the futures price at some point will decouple from the physical and become meaningless. This is exactly why you should use this opportunity to buy as much physical as possible at discounted prices while there are foolish sellers still willing to sell at the stated official (futures) price. I’m sure many of you remember Gold’s spectacular fall from about $1000 to $680 circa 2008. How many of you have regretted not buying at those levels while you have been watching Gold’s inexorable rise since? You’ve been waiting for a price drop, haven’t you? So what are you waiting for? We saw the same scary headlines in the MSM that we are seeing now with the same bullshit reasons – while the reality hasn’t changed ONE BIT. Some media mouthpieces are proclaiming a bear market in Gold has begun while others are hoping that their paymasters’ moronic ideas are finally working but remember this is the same media that sold you real estate before the bust, the same media that sold you DOW 36000, the same media that sold you Obama’s “hope and change” and has pilloried gold and gold buyers whenever its price crashes but has been largely silent throughout the past 13 years of the gold bull run. There’ve been many of you saying Gold is too expensive and waiting for an opportunity to buy in. Well, the banksters in using the futures market as a propaganda vehicle against Gold have unwittingly provided you with one. Overcome your fears for fortune favors the brave. It’s time to go in for the kill.
Don’t Pick Pennies In Front of The Steamroller – Get Out Of The Paper Markets
First, you must be clear why you are buying Gold. Sure, paper gains are nice to have but are only a side effect. The real reason is this (from one of my previous articles):
Any type of financial asset that has a counterparty – which is pretty much all the paper assets in the world – bonds, futures, any and all derivatives and yes, even the paper currency – will crash. What will they crash against? Yes, that’s right - Gold. All the world’s capital – trillions, perhaps quadrillions of it - will come rushing into the very tiny physical (NOT paper) Gold market. Remember, the world’s real physical capital – real assets such as land, oil-refineries, mines, infrastructure, etc. will not vanish, only it will be re-priced in terms of Gold and its ownership transferred to those who hold it. Since everything stays on this planet, it is a zero-sum game and the winner will be Gold. In other words, an ounce of physical Gold will command a lot more in real purchasing power than it does today. Just like a national currency is a claim on goods and assets within that country, Gold will be a claim on global goods and assets worldwide.
In other words, wealth preservation in the face of a currency collapse and an insurance policy against the idiocy and depredations of our monetary masters.
For those of you who have read my work, this current smash shouldn’t come as a surprise. In fact – not to beat my own drum – but if you understood and followed my advice, you would have been out of the paper markets and not affected one bit by these shenanigans. If you wish to trade the paper market for short term paper gains, by all means do it (at your own risk though - and you just saw what that “risk” looks and feels like), but in the end always – ALWAYS – convert those paper gains to real profit by buying the physical metal because Gold will never ever attain its true price in the futures markets. They can always issue an unlimited supply of naked paper contracts. The following extract from one of my previous articles explains the reality of the futures market:
The futures market is nothing but a tool for the dollar managers (US Government/Fed/Bullion banks) to manage/control the price of Gold. Any rational observer with an iota of brain who has watched the gold market for any reasonable length of time can tell that the price is intentionally driven down during the Comex trading hours. If you don’t believe this, either you’re in denial or worse – collusion - and IT WILL end up costing you big time. Given the massive, concentrated and long-term (the entire past decade - they haven't been net-long - not once - during that time period) nature of their short positions, it really isn’t that hard to deduce that the banks do not nearly have enough metal to cover their shorts and that the sole intention of the massive short position is to control the price. Whenever the price rises (or threatens to rise) the big bullion banks ala JP Morgan create massive naked shorts introducing fake supply of Gold in the market, thus driving the price down. “But the price has been rising for the past decade, hasn’t it? So how can you say they are driving it down?”, many people ask. Well, the constraint on the bullion banks has been the availability of the physical metal. If the metal is not available, the fraud of the paper market is exposed and they lose their price managing ability. So they allow the price rise to a level at which there are some weak hands willing to sell and then they hold it there till all the sellers have been exhausted (I am assuming the Fed has already sold all the US Gold during the past decade). So strong are Gold’s fundamentals that despite the massive rigging, all they have been able to do is slow its rise. The weak hands who sell the physical metal at every price rise have helped them in this endeavor. But soon, as the bond market implodes, they will run out of sellers. Treat the availability of real metal at today's paper price a gift and buy as much as you can.
To those who think that the Comex shorts will be crushed one day and the price of paper Gold will do a moonshot, to them I will say that you are dreaming. The Comex shorts will be crushed, but not in their own casino! If and when a majority of paper Gold longs demand delivery a force majure (who do you think the US Government will side with?) will be declared with cash settlements and/or offers of equally worthless GLD shares (don’t tell me you didn’t know about this). By some accounts, this is already happening. What will happen to the paper price then? That’s right – it will utterly collapse even as the physical’s price is rocketing. Paper gold holders will dump it all to buy the physical – which, unfortunately – will most likely not be available at all…in light of the sum total of the recent developments mentioned in this update I think it is too risky to be trading right now and one should just sit 100% in physical Gold and some currency for day-to-day needs…Trading paper markets for paper gains is like picking up pennies in front of the steamroller. It’s time to stop trading and just buy the physical metal….
They don’t have nearly enough Gold to cover all the contracts they’ve sold in the market. If you’ve bought one, stand for delivery. I’m sure many will be offered cash premiums in place of Gold. Refuse. Demand the metal. This is the right time to tighten the screws on them while they are vulnerable having sold 400 tons of non-existent Gold in the market. Getting out of the fake paper market and collapsing it will have a threefold benefit:
1. Buying physical with cash preserves your anonymity and safeguards your wealth in your hands away from the prying eyes of the looters posing as “the government”.
2. Counterparty risk is eliminated as there is none. You’re home free.
3. The fake paper market will collapse due to non-availability of the physical and non-participation of the majority. The sooner it happens, the sooner Gold will attain its true value and the emperor will be naked for all to see. This fake money system needs to collapse so the work of reallocation and rebuilding can begin. The cancerous tumor of banksters needs to be eliminated from the economy.
Make no mistake, this is a war. A war for your freedom, liberty and life. They have won the battle but they are not going to win the war. It is upto you to make sure they don’t take you down with them. Those buying gold are not in it for the short term pleasure of paper profits but because they understand that it is the only way to safeguard your wealth and a claim to a chair when the music of the paper pyramid Ponzi finally stops.
To me, the only question is: Who Would I Trust With My Wealth?
This:


Or This:

The best time to buy is when there is blood in the streets. That time is NOW.
So don’t panic. Just buy the physical, sit back, relax and enjoy the show!
1. Some people may find this description of events to be too “conspiratorial”, but rest assured, if anyone does the diligence, I’m sure they won’t find things differently. This is how things are “done” in the “markets” today.
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did they send Chavez his gold? Did it arrive? ask him. oh wait he's dead now.
400 tons of the finest tungsten money can buy, I'd bet.
Perhaps the correct question is. "who has the power and the legal immunity to dump 400-500 tons of gold at a time?"
That would be the Fed for sure, but it might also be the mourge or a few other TBTF's that have a get-out-of-jail-free card.
Gold will win out in the end but it will be a long and hard battle. The banks in cahoots with the government will try every trick in the book to keep gold from exposing the lies backing the dollar.
My greater fear is that they might provoke either Taiwan or South Korea into some form of action which can trigger devestation in the region and destabilize China.
This isn't rocket science. The dollar rebounded in September of 2011 and gold has taken a breather. I have been recommending clients dollar cost average into a position ever since and had record sales Friday and again Monday. Haven't called a bottom just yet, but will. I did say that the Market Makers (banks) will push gold (and by default silver) down to where investors will scream UNCLE! as a clue as to when the end is near, where you get the long tail down on the candlestick chart. That's what they do. We just witnessed the first leg of this smackdown. Gold and Silver Doom and Gloom or Crack Up Boom? http://bit.ly/16XEYEG Yes, I am a precious metals dealers that sells gold and silver, but not one who has called gold to $5,000 or screams hyperinflation to get people to invest. Not yet anyway! It's the tortoise (gold) vs. the hare (debt) approach and we all know who wins the race.
Not buying gold yet. As I agree, this is the first leg of a smack down/attack. Never underestimate the power of your enemy.
The fire sale will be followed by a cleanance sale and then possibly a banckruptcy sale. Silver is the sleeping giant.
Be very careful. If the idea behind this article is correct the clearance sale will be in paper and there will be no physical available.
I think you will always be able to sell paper for a better price than physical. Metal dealers give you paper price less commissions.
Hush up, dweeb, and just listen for awhile.
.
Just found out from one of my suppliers I typically do my larger orders with they have no Silver Eagles, No Canadian Maple Leaf Silver coins and no Canadian Maple Leaf gold coins available. My other supplier has 20,000 left of both the Silver Eagles and Canadian Maple Leaf silver coins.
shocking..
Wow thanks Doug. Thanks for the update.
Fonz, first time I have seen any of my suppliers run out of a gold product. It's the same supplier that on Monday had to stop taking orders for 45 minutes to catch up on paperwork. Was a crazy day!
Good for you Doug. I hope you keep some for yourself!
What's your availability of product to sell?
One supplier has about a 3 1/2 week wait, other supplier has metals for delivery (I assume you are talking about American Eagles). Spot $23.19, my cost $25.93 plus 1% commission (total $26.19 per ounce) and small shipping charge. Supplier with 3 1/2 week delay has no shipping cost. Canadian Maple Leafs are priced lower and no delays in shipping if you just want to buy the most silver for your money. If interested, here is my company: http://bit.ly/WmkIv9 (Hope I am not penalized for answering a question). I was a former financial advisor who was frustrated with my industry, wrote a book about it, and started my own broker/dealer precious metals company.
"I was a former financial advisor who was frustrated with my industry, wrote a book about it, and started my own broker/dealer precious metals company."
Sounds like you jumped into one frying pan into another. When gold falls down to $700 again and all your clients have lost their asses once again, what do you think your next career move will be? I hear they are looking for Obamacare insurance agents. Sorry to be so hard but I've pondered the same and figired that moving to the hot dot probably will just leave you moving to the next hot dot as well. The key is to get in at the start instead of the tail.
Slightlyskeptical, easy to discuss my friend. You see, I was doing what all the people in the financial services indusrty was telling people to do, become a Certified Financial Planner (CFP). I paid for the entire course and had all the books delivered to me. I even signed up for and got approved for their Masters program. When I read the Investment book, and got to the section on gold, I will quote from my book what it said; "The book was Investments: An Introduction,Seventh Edition, by Herbert B. Mayo (Custom Edition: College forFinancial Planning).This book had six pages devoted to gold, almost all of them negative with regard to gold being a good “investment.” It referred to gold as “jewelry” and “numismatic coins,” and didn’t even mention U.S. Gold Eagle bullion coins made here in the United States at our own Mint. Instead, it mentioned the Canadian Maple Leaf gold coin,which the author described as being “of particular interest to gold collectors.”The bias against gold is obvious when you see the author call a buyer of a bullion gold coin a “collector.” He goes on to say: “While the coin may be used as money, it is not circulated, for such use would scar the coins and reduce their value.”
Somehow the investment book author left out the histoical backing of currency with gold, what transpired with the price of gold before or after 1980, how gold in a protfolio reduces volatility, nothing on currency risk and zero mention of silver.
Having been in the business 20 years I set out to write a book and expose the mainstream financial bias against gold. I expose the flaws of Modern Portfolio Theory and the Prudent Man Rule. I expose the gold dealer industry for ripping off clients as well, pusing rare coins and semi-rare coins on investors and charging 15% to 30% or more in commission (that's how they afford all those commercials).
I sent Chapter 8 of the book to Congress, Anthony Weiner's office so they could use my insight into going after the one gold dealer that Weiner was so upset with. His office told me that everyone needs to read your book and told me they wanted me to come testify at the Gold hearings in September of 2010. They sent my book off to the Energy and Commerce department and told me they would get back to me the next day. They didn't get back to me so I called them and asked what's up. Weiner's office told me that the Energy and Commerce Department decided against my testimony and that was the end of it. Evidently, someone in that department actually reads something because in the first 4 chapters of the book I tear apart Congress. My goal was to go there and make a mockery of them. Unfortunatley it didn't pan out. However, my name was passed on to the Santa Monica city attorney and they used my testimony to settle with the gold firm for $4.5 million.
Meanwhile, I have had record sales that last few days with the downturn in price. While you think the price will go to $700, how does one "lose" if they don't sell? Funny you mention insurance My clients buy insurance against almost $17 trillion of debt. Insurance against banks that don't mark to market. Insurance against banks that have more sub-investment grade derivatives on the books today than at the height of the financial crisis. The list goes on. They have peace of mind.
When you say "the key is get in at the start instead of the tail," I simply ask you, how do you know where the tail is? Is it at $17 trillion debt? $20 trillion? $50 trillion? QE 5? QE 10? When banks mark to market? When the over $5 trillon of sub-inbestment grade derivatives become investment grade? When the dollar index is at 125 again?When Debt to GDP ratio is below 50/1?
If this is the case, tell me how a nation that doesn't make anything any longer, but iPhone's and search engine revenue, while at the same time taxes those who are productive, is going to get there.
Can we have a link to your book, please?
Hi, the book is Buy Gold and Silver Safely and is available on Amazon.com (I see the ad for it somtimes on the right column here on ZeroHedge.
Uberpost! Very nice.
Doug I find that interesting. I took (and passed) that exam in 2005. I just grabbed my book. As you know there is a ton of material on that exam. Here is how much time was spent on gold in my curriculum.
"Gold/Precious metals
Precious metals are believed to be an inflation hedge. There are various ways of participating in gold. - Bullion - Coins - Futures - Gold mining stocks - gold mutual fund.
The gold mutual fund offers a way of participating in gold without the risks incurred by an unsophisticated investor dealing directly in gold or gold mining stocks"
That was it.
How long before physical gold runs out at US coin dealers?
Who has 4-5 hundred tons to manipulate the gld market?
The FED
With leveraged paper, you only need a few tons of the real stuff...
Maybe not, unless 300 tonnes of that is Germany's.
The FED might have had nothing if it wasn't for Gaddafi's gold.
The FED has Paper Gold
I read there is always some deflation prior to serios inflation. Looks like we are following that historic cycle.
The Americans are not concerned with the value of the dollar but with the position of the dollar as the most used currency. That is what they fear losing with all these new relationships that China is forming.
The USA is hoping that all the major economies will print like crazy so that America can camouflage its own printing mania while it continues to use this printing to strip wealth fom its people while inflating the value of assets to give the appearance of growth.
Just remember the bulk of the printed stuff ends up in the hands of the top 5% for manipulation and speculation.
Most Americans are concerned with the Dollar value meal at McDonalds (and if their EBT card will be acccepted by McDonalds).
They are afraid of gold. They had a gold problem. And now they've fixed it. As long as they control the markets where gold is traded and they have unlimited fiat and fiat is accepted to buy gold, they can repeat this exercise.
A question I ask myself. If the going gets really tough, will they fall back, compromise, and accept gold as money? Or will they go right to the wall over this?
In the second instance, what is the value of gold?
To respond to your questions, some of them may think and hope that they fixed the problem, although the sharper knives in the drawer know better and are fighting a delaying action to stay in control as long as possible - after all, they ARE the elite, aren't they!
They will go to the wall on this. We are establishing winners and losers here, are we not? This isn't quite the same as survivors and not, although they may have a better chance at it cuz they they can hire goons and establish themselves as "TPTB". That is the "dog's rules" society, however (a reversion to serfdom and feudalism, and goons will be goons). The sharper knives will have stacked bullion for when bullion reverts to it's traditional role and value, ie. the only real money. How good a modern warrior is Evelyn?
important to remember that price supression is second priority to their ability to accumulate physical bullion themselves with their moneyprinting. They are at the end of the flow for miners, and cash for gold-> refineries-> their vaults.
aye, that is the question...
why has the shiny been valued so greatly across so many cultures and millenia?
Egypt, Babylon, China, India, the Aztecs, the Incas, even the ancient cultures of Southern Africa.
could it be that gold does have a utility that's been long forgotten but still embedded in the human cultural DNA?
if so, what would that utility be perchance?
(W)hat would that utility be perchance?
OK, I'll play -- reflects cosmic rays when travelling in space.
It has the value your feudal lord assigns it. No more. No less.
Only inside the fiefdom!
aye, mayhaps it is not a coincidence that all those aforementioned civilizations crashed and burned at some point as well. but that still leaves the question open as to why the "lords & lasses" valued it so highly, even when they talked down "the value".
You would have to look into the corners of fringe history, like Zecharia Sitchin's hypothesis about the Annunaki having come to Earth from space to mine gold. The ancient sumerian texts (clay tables with cuneiform writing) talk about the Annunaki mining gold somewhere in the south of Africa..
Funny enough, there are ruins of a city spreading about hundreds of square miles that seem to be roughly a hundred thousand years old - in an area known for having gold in the ground.
If you dig around a bit, you would probably come up with a lot of other (fringe) hypothesis about off-worlders coming here to get their precioussss :)
Take it FWIW :)
ah, someone finally picks up the mythological thread :) nice piece of tinfoil on the ancient African goldmines here:
http://www.viewzone2.com/adamscalendar33.html
The region in Africa where one can find the greatest level of mitochondrial diversity (green) and the region anthropologists postulated the most ancient division in the human population began to occur (light brown). The ancient metropolis in located in this latter (brown) region which also corresponds to the estimated age when the genetic changes suddenly happened.
the same region where all these goldmines dating back to the same age are. hmmm....a coinkidink?
on the reptiles, if one is willing to entertain the idea that the Annunaki, et al was a real myth (w/o necessarily agreeing that they were "really real"), the story goes that they mined it from Earth to take back to their planet to heal their atmosphere (which they destroyed through abuse). maybe they were spraying it in chemtrails? ;~)
Well, Clif High (halfpasthuman) did announce (as in appearing in the headlines) a major mine collapse coincidental with a brutal crash in the paper prices of Au and Ag in order to free supply, and that that was not going to work out as planned.
Hmmm... in my book that (and other correct prognosis' over the last years, months and weeks) gives his method quite some credibility.
His web bots find the words, and he tries to fit them into a narrative, which at times can be quite, ehm, unusual. He has been saying recently that he sees a possibility that the metals are taken off planet, and that the price drop would be induced because "they" are running short and are desperately trying to artificially cause a flood of supply in the market.
What I like about his prognosis is that according to hph this crash will mark a low, after which the prices will explode due to manifesting hyperinflation, together with Bitcoin. He mentions Ag going to 500-600 $/oz, Au to 5-6000 $ish, with Ag keeping rising after that *for years* until an eventual parity with Au (and beyond?) because of its scarcity.
He has been mighty prescient recently, and whereas I would not mind the prices going up (and keeping doing so), I am not really too happy about his forecast for a GCE (Global Coastal Event).
clif's a frequent visitor to our house via his wujos, though he's always served with a slice of pie :)
i choose to read what the bots pick up as a mix of peaking behind the curtain of Oz & modern myth, where one's perception of which is which is a matter of one's individual "monkey mind" (as clif calls it). even if the "breakaway civilization" is one of the those modern myths, find it fascinating that it's all coming around again...with a shiny nugget in the center.
personally, i'd rather be inhaling gold particles from the air like the lizards do it, than that nasty cheap-ass aluminum & barium they're supposedly dropping down here...much mo' betta for the grey matter ;)
if you're up for a journey down the rabbit hole, check out Laurence Gardner's Lost Secrets of the Sacred Ark. be forewarned, it may change your mind on gold forever. literally...
mmmmmm. . . pie!
nice splinter thread, thanks guys.
I find myself increasingly aware of this, as recent days unfold, watching the "individuals" oblivious, or obsessed, so many differing realities, waiting for an event that unites their points of view? and even then, how any event is perceived by each "individual" will depend on who their "embeds" are. . .
my particular monkey-mind tends towards planetary formations & subsequent movements - and going forward, particularly mid-May, it would appear certain un-realities will get check'd, and re-assessed? re-arranged? re-linquished?
ya can't make this stuffs up, lol. . .
They've fixed it?
poop.
Gold has two values.
The first is a dollar value based on production costs plus profit margin which must be at a level sufficiently high to make mines bring the stuff to the surface to cover current demand levels.
The other value is the one based on its unique physical and historical qualities which makes it unsusceptible to mass production and counterfeiting.
Nice appraisal analysis via the cost and sales comparison approaches. Income approach is not applicable.
Unquestionably a great buying opportunity for phyzz. Only question I have is what is the availability of naked paper shorts at this point in time?
Theoretically unlimited availability of naked paper shorts. I'm of the more general mindset that the following is a great time to buy phys:
Any point in time that you can exchange USD for gold
Yes, the paper price could go to half of what it is currently. You should still buy it right now, if you haven't already done so.
Availability is something people don't discuss enough, when they are talking "price".
I am confident that the "price" will go to zero. It will take awhile for a real price to emerge, and it won't be through these corrupt, discredited markets.