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10 Signs The Paper Gold Crash Unleashed An Unprecedented Demand For Physical Gold And Silver
Submitted by Michael Snyder of The Economic Collapse blog,
The crash of the price of paper gold on Monday has unleashed an unprecedented global frenzy to buy physical gold and silver. All over the planet, people are recognizing that this is a unique opportunity to be able to acquire large amounts of gold and silver at a bargain price. So precious metals dealers now find themselves being overwhelmed with orders in the United States, in Canada, in Europe and over in Asia.
Will this massive run on physical gold and silver soon lead to widespread shortages of those metals? Instead of frightening people away from gold and silver, the takedown of paper gold seems to have had just the opposite effect. People just can't seem to get enough physical gold and silver right now. Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce. If the big banks continue to play games with the price of gold, we are going to see existing supplies of physical gold and silver dry up very quickly.
And once reports of physical shortages of gold and silver become widespread, it is going to absolutely rock the financial world. But this is what happens when you manipulate free markets - it often has unintended consequences far beyond anything that you ever imagined.
The following are 10 signs that the takedown of paper gold has unleashed an unprecedented global run on physical gold and silver...
#1 According to Zero Hedge, the U.S. Mint set a new all-time record for the number of gold ounces sold on Wednesday...
According to today's data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.
#2 Precious metals dealers all over the United States are having a really hard time keeping up with demand right now. According to Chris Martenson, many are warning customers to expect waiting times of five to six weeks at this point...
In the U.S., all of the dealers I talk to are reporting huge demand and brisk buying. Silver in any form is quite hard to come by unless you want to pay premiums of 20%+ per ounce above spot price. Delivery times are 5 to 6 weeks out now – that's an unusual situation. If this recent slam was designed to scare people away from gold, it did not have that desired outcome; in fact, just the opposite.
#3 Individual dealers all over the country are confirming that we are seeing a voracious appetite for precious metals at the moment. For example, the following is what a spokesperson for JM Bullion had to say...
We still have certain things in stock, like 10 oz bars, while others, like Silver Eagles, are a bit of revolving inventory.
The shipments are going out as soon as inventory comes in.
Our main challenge right now is actually getting the silver into the boxes and shipped out – we have been experiencing astounding volume.
This appears to be a widespread phenomenon. Just check out what other dealers are reporting...
“There has been a marked increase in demand since the plunge,” said Mark O’Byrne, executive director at Dublin-based investment and bullion specialist GoldCore, referring to the drop in gold prices seen Friday and Monday. Gold futures lost more than $200 an ounce, or over 13%, on those two days. They were at $1,392 an ounce, moving higher ahead of the close on Thursday.
GoldCore has seen more buying than selling on Wednesday and Thursday, with buy orders “lumpier and from high net worth clients, and with most of the selling in small orders of less than 50 ounces, said O’Byrne.
On Wednesday, David Beahm, executive vice president at Blanchard & Co., said his precious-metals investment firm has seen “2008-like demand” for gold since Monday.
#4 Large international banks are also experiencing tremendous demand for physical gold and silver by customers right now. The following is what Keith Barron told King World News about what he is hearing...
At the Bank of Nova Scotia in Toronto the gold window has been absolutely swamped. I have confirmed there were people lined up in droves recently for multiple-hours at a time to buy gold and silver bars and coins....
I then confirmed with UBS today in Zurich, Switzerland, that they are experiencing exactly the same thing. They told me people are waiting in long lines for bullion related bars and coins. The physical market is incredibly tight, and there is a huge buying opportunity right here.
The damage in gold will not be long-term because physical supply is already drying up. Asian countries have been aggressively buying gold. This really is an unprecedented opportunity for investors. This takedown in the metals has created incredible demand for both gold and silver, and anyone who wants to unload dollars or euros and put them into gold because they don’t trust the currency, now is the time to do it.
#5 The demand for physical gold and silver is heating up over in Europe as well. For example, the following is from an emergency message posted on the website of a precious metals dealer in the UK...
Due to the unprecedented demand triggered by the recent fall in the Gold Price we are currently not able to guarantee Next Day Delivery of orders.
We anticipate that all orders will be delivered within 7 days of receipt by us.
Whilst we appreciate that these delays are frustrating for our customers we would like to stress that all accepted orders are guaranteed at the order price and will be dispatched as soon as possible.
It is necessary for all of our staff to be utilised in fulfilling orders and we ask for your cooperation by not calling us to query delivery times. If you do need to contact us, please do so by e-mail and we will endeavour to respond within 48hrs.
#6 On the other side of the globe, demand for precious metals is skyrocketing as well. According to Bloomberg, people are "running through the gate" to get gold in Australia...
Gold sales from Australia’s Perth Mint, which refines nearly all of the nation’s bullion, surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.
“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said by phone, without giving precise figures.
“There’s been people running through the gate.”
#7 Reuters is reporting that customers are waiting for up to three hours to buy gold in Japan...
A week ago, as the yen-denominated price neared a new peak, jewelry stores and gold merchants across Japan saw long lines of mostly older Japanese looking to cash in on unwanted jewelry and other items that they had held for years.
But on Tuesday, buyers outnumbered sellers by a wide margin. At Ginza Tanaka, the headquarters shop of Tanaka Holdings, gold buyers waited for as long as three hours for a chance to complete a transaction.
#8 According to a Chinese article quoted by the Blaze, there is a mad rush to buy gold in China right now...
People have to rush to buy gold … gold bullion out of stock yesterday, investors yesterday to spend as much as 600 million yuan to buy 20 kilograms of gold bars
The mad pursuit gold insufficiency is not just a game for the rich. Yesterday, the Yangcheng Evening News reporter learned from the East flowers to Bay store, many growers, pork traffickers, fishmonger recently put down his job went straight to the mall to buy gold.
#9 According to Reuters, dealers in Singapore are having significant trouble finding enough of a supply to keep up with the intense demand for gold that has erupted this week...
"People are actually buying everything, gold bars, gold coins. People are rushing to get a hand on it. We have a problem meeting the demand because we are unable to get new supply," said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore.
#10 Bloomberg is reporting that over in India people are "flocking to stores" to purchase gold jewelry and coins...
Gold buyers in India, the world’s biggest consumer, are flocking to stores to buy jewelry and coins, betting a selloff that plunged bullion to a two-year low may be overdone.
“My daughter is just six months old, but I think it is never too early to buy gold,” said Sharmila Shirodkar, a 28- year-old housewife, while displaying a new pair of earrings she bought from a store in Mumbai’s Zaveri Bazaar. “I had been asking my husband every day if prices will go down more. I couldn’t wait anymore.”
If the big banks were trying to scare people away from gold and silver by crashing paper prices for those metals then they have utterly failed.
Instead of being frightened away, the global appetite for physical gold and silver is now more voracious than ever.
If the prices for gold and silver stay this low, we are eventually going to start seeing some very serious shortages in the marketplace.
And once reports of shortages of the actual physical metals become widely circulated, it will cause an "adjustment" in the marketplace that will shock everyone.
So hold on to your hats. We are entering a period of time when there will be unprecedented volatility for the prices of precious metals. It will be quite a roller coaster ride, but if you can handle the ups and downs it will be worth it in the end.
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Paper gold translates to physical gold (obviously, till it doesn't- but it is no guarantee it'll happen, and we haven't seen it yet!). I bet PM dealers have been laughing their asses off all week watching how high over spot they can charge and that the sheeple continue to throw their money at them, all while the sheeple are clamoring of a disconnect that doesn't exist. You guys are paying over spot, and doing it with enthusiasm, nothing more.
I'd disagree at least as far as silver goes. I can't see the market allowing silver to be priced right at production cost for a long period of time. Premuim or not silver is about as low it can go. It will only go back up. If the paper market keeps the price surpressed too long the physical and paper will decouple, with supply and demand taking over for pricing above production cost set by the shops themselves. Either way that price per ounce is going to be much higher than this. I say silver will be back above $30 and fairly soon. If the a deflationary event happens I say it slingshots up when the dollars dry up well above the price now being charged above spot.
My personal prediction is that silver will shoot back up to somewhere in the $30 - $35 range before gold breaks back above $1500. Anyone buying silver now is going to be able to flip that silver even at the premium price above spot into gold for a nice little profit, buy low sell high get gold then at about the same price as now with the current spot price factored in. All bets are off though if the paper market on gold gets busted when they can't meet delivery.
Not happening.
Silver is an industrial metal as well. For the price to change the economy will have to pick up dramatically, and it isn't.
It is not going to stay a production cost price from the mine to the end seller. That is basic business 101, no one sells to the next guy in the chain at their cost price, everyone has overhead they need to factor into the price. Silver is going up on the physical market for that reason alone. You also had 16% of silver production in the US lost to a mine collapse. That is going to drive up prices to if demand keeps up.
You are wrong and foolish...
I understand why people are buying physical; it's called lack of imagination, and a flight to safety. Which says to me not everyone is getting it yet.
A hint. (And kids, always read the album notes).
If there were any doubt as to the flow of physical gold from West to East, Hong Kong is out of gold, and is waiting for two shipments due in next week. From where?? London and Zurich... That gold will never return...
Markets clear!
Question is if he we go into a global deflationary episode (which is very much possible) how does gold and silver react price wise and do the physical and paper markets completely decouple? Silver at least historically when you look at the Great Depression in the 30's and Japan in the 90s has held a steady value. Gold in the 30s was a bit of a misnomer due to the fact you could still use it as money so it's purchasing power was directly tied to the dollar since the dollar was tied to a fixed weight of gold. When the dollar deflated the gold deflated at the same rate hence increase in purchasing power and also a hedge against deflation. In the 90s gold stayed fairly evenly priced until 96 taking a dip for a few years before rebounding in around 2001. Is past a good indicator of what is to come this time around?
No. Is a whole new game.
Most likely you'll have to suck someone's dick for them to take the gold/silver off your hands.
> Question is if he we go into a global deflationary episode
That was hilarious. Keep it up!
My spelling or question in general? I'd say we are already going into a deflationary episode money printing or not since the money is being so missallocated with the majority being locked up in the stock market. Once you cut employees, hours and everything else, maximize dividend payments the next up is slashing margins hence deflation. The only question is when the stock market bubble bursts do we see a major inflationary episode which we should have already had (that assumes all that money swept under the proverbial stock market rug filters down into the real economy) before the deflation.
Hey , don't you know the goldbugs believe gold is a hedge against deflation. ROFLMFAO
Metal's BreakDown and Analysis of Commitment Of Traders For the Following ....
Gold
https://docs.google.com/file/d/0B16Nxp5pgJBzSlRfTjFKVGlmMnc/edit?usp=sha...
Silver
https://docs.google.com/file/d/0B16Nxp5pgJBzMlhaSFpJYmdvdlk/edit?usp=sha...
Copper
https://docs.google.com/file/d/0B16Nxp5pgJBzNDlJR3lRUVBBX1U/edit?usp=sha...
More at https://CommitmentsOfTradersAnalytics.com
Review all the world's currencies...
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I went to my dealer today, he had NOTHING. Gold or silver. 6 week lagtime on orders. He told me he wasn't buying bullion for himself even with the markdown. He had some palladium... would any of you buy Pd as a store of wealth? I almost bought a few...
I'll sell/barter if I can replace in kind and in short order.
The more investors we are, the better for us all.
I even deliver to a few brotherse who are no longer mobile.
Neither fear nor greed will serve us in the long term.
On a long enough timeframe ...
(B)uy Pd as a store of wealth?
Absolutely -- last bought at 22:1, now it's > 29 (to Ag, of course).
Just try to avoid excessive premiums --
Those Russian ballerinas (and Tonga dudes) can cut into your profits;
the former do look nice, though.
Find a LCS who will trade back and forth bars (1 Pd for 2-3 x10 Ag)--
they can make as much as you will,
but 1/2 a loaf is still better than none.
Think of it as Forex with 4 pairs (Ag, Au, Pd, Pt).
Add Ni, Cu and Pb as needed. YMMV.
Palladium is relatively cheap, rhodium is a steal right now (in dollar terms, based on the longterm charts from the rigged Crimex and LBME numbers).
those american bullion hoarders will be illustrated as 'financial terroritas' pretty soon. where do you store it?
Frankly, I don't see that.
FDR confiscated gold because it was tied to the US's currency. Now it's not, so having gold, beans, land, frozen concentrated orange juice or farm animals is the same. They're commodities.
It'll be much easier for the gov't to come after your IRA's, 401k's or pensions.
ok, i see where you com from. apparently, you believe this time is different.
Well, since the court's precedence from FDR's confiscation is that people can't be jailed for not turning over gold, which is now the law of the land, I'd say that this time is different if the gov't attempted to confiscate gold.
TPTB will come for pensions, 401k's, and IRA's long before gold since it only takes mouse clicks to confiscate.
deleted
I think when it stays for 2-3 weeks like this people will run out of FRNs.
just what i was thinking , I sure there is a surge right now from folks that where keeping some frns on the side for such an event
i'm even thinking that there are some buying on credit hoping there's a snap back .
OH MY, the nerve to advise people to buy a useless relic which is diving in price. That demands another Irish Poem:
RE-LICKING THE FROZEN FLAGPOLE
There once was a hard, yellow REL-LICK.
Whose price started falling PELL MELL. ICK!
Which led some to quip,
"Buy the FUCKING DIP!"
While smarter ones knew they should SELL-QUICK!!!
Squeeky Fromm, Girl Reporter
another socialist european nebbish heard from...
FOOL SAID HE LIKES TO LICK POLE!!!
Gold never rusts.
... and it never erodes or evaporates.
Options expiration Thursday, may be another dip before the next move up after this paper crash.
This is war, buy more, fight the forces of evil fiat debt & bonuses for bankers on the backs of taxpayers.
There in lies the rub. They take it down further and Katy bar the door. I see a slow slow rise up from here. I'm just guessing tho.
Buy on the way down, buy on the way up.
...and always have dry powder.
Problem is, if one waits too long for the fiat price to drop, there will be no fizz to ge ahold of.
Already seeing shortages via the "longer processing" statements on the PM dealers' sites.
Soon, it will be "sold out."
Then, no fizz at any price.
I think people are acquiring and holding the fizz.
Currency Wars will only get worse my CPA says.
So ten signs were in reality two: US Mint sold out and dealers around the globe too. So essentially one sign then: low inventory. Yeah, "unprecedented demand" ususally has that effect on goods. Not really disagreeing or trying to slam the author but he has made an awful long text about very little....
The US mint's volume is nothing compared to the 2700 tonnes that are mined each year. That's why it is good to show the worldwide demand.
Essentially, I see two signs: low inventory and nobody is selling. If people are panic selling, there wouldn't be low inventory.
As they say in India, empty pots make a lotta noise
Can I therefore assume that your pot is empty as well?
Well you certainly prove them right.
I think I just got it. Sitting there thinking of my stack's depreciation, I was mildly forlorn but remembering that its for way down the road. Then I thought of sites like eBay and others....my physical is still worth the same. Just because some price for the CNBC folks is there does not mean its the human price. I trust my fellow man more.
LOL, I bet you're a sentimentalist.
I am sentimental and I do believe in my fellow man. Hope will be our savior. That fire deep in the recesses of our soul will be the way back from the dark. Maybe I'm right, maybe I'm wrong. I know that people of belief are more inspiring than dark fools that have already given up. Succinctly, BRING IT/MOLON LABE.
Glad somebody mentioned ebay. There's a lot of physical sold there. Silver has been selling closer to $30 an oz. than the $23 paper price for about a week. Seems to be abating a bit now, but it's the weekend and maybe the buying frenzy has dissipated a little, but it is the weekend and some may be waiting for Monday when the paper market open again to see what's up (or down).
I've been waiting and waiting for the phyz price to match up with the paper, but I don't think I can afford to wait much longer. If everybody is content to buy phyz at $30, fine, I'm in. If it drops, well, I count in ounces. If it gets ridiculous, like $7 as in '08, I'll be backing up the truck (van in my case), even if I'm paying $14 or $15 for phyz.
Eventually, the paper markets will become irrelevant. If paper traders stand for delivery today at $23 per ounce and the exchanges can only get physical at, say, $27-$30, well, they're, in a word, FUCKED.
Backwardation, Bitchez! (couldn't resist)
I think we could get one last beat down to $1250, and perhaps $18 silver. It is looking pretty good with gold rising to $1400, but silver getting stuck at $23 is worrisome. And the DOW is sitting at 14,500. It is ready for a 1,000 point plunge. If that happens, gold and silver will go with it.
Okay, that is the bad news. But the good news is that any beatdown can't last more than a few months. It is apparent from this run on gold and silver that the public has woke up to the fact that the global financial system is one black swan from a collapse. Anyone who is negative gold is wearing rose colored glasses. If the financial markets crash, precious metals will be the one insurance policy you wish you had. When you wake up one day and the dollar has been devalued, or your bank account has been reduced, you will wish you had bought some gold and silver.
I don't think we are very far from another Lehman type bankruptcy that is going to make the financial markets fall across the globe. When that event happens the fear trade in gold is going to take off. People are already nervous because the recovery from the 2008 crisis has not occurred. Everyone knows this is getting dangerous. The possibility of a fear trade into gold is very real. I think we could see $2,000 gold this year if we get a Lehman event. If we don't then it will likely happen in 2014. We are getting close to a major breakout in gold.
All of this talk that the gold bull market is over is nonsense. The only thing that kills the demand for gold is a strong ecomony, and where are those signs? We are much closer to a weaker economy than a strong one. I think most of you would agree.
www.goldsilverdata.com (for mining stocks)
GSR@1250/18 > 69, wow.
How old are you
I don't think the President called all the bankers into the principals office to tell them about a bomb going off in a foot race. I think the bankers called the meeting with the President to give him a heads up about a bomb blowing up in the interconnected web of finane.
"...it will be worth it in the end."
As is always the case, timing the end is the trick.
Yeah, some of us are pretty tired of hearing "someday," "eventually," "ultimately," finally," "at some point," "in the end," "pie in the sky in the sweet by and by," and so forth. We don't have until 2015, which to us might as well be o/`In the Year Twenty-Five-Ten, if gold'll be worth something, it should be by then ... o/`
Hell, I didn't have until May.
Yawn. What, you need a 'name brand' to spoon feed you inevitable scenarios? /s
Have been saying for several MONTHS that the (obvious!) way to blow up the broke fiat system is (for the Chinese, for example) to dump/short paper-PM, and buy up the Bullion.
Elementary, Watson.
I read those articles and watched the videos. And, JP Morgue can't sell off any more gold from Fort Knox because they've already emptied the vaults.
Leave it to the banksters to hasten their own demise.
I'd have a little BitCoin as well as things that can be bartered for.
Like Gerald Celente said, "Do you think that when the Cypriots couldn't get money...that if they went to the gas station and offered them silver they could get gas? Or if they went to a store to buy food that they could offer them gold." Of course they could.
And the cypriots that had their wealth stored in gold, on their own property also didn't give up 90% of it to pay off bad bank debt.
The flight from fiat paper money is quite amusing. Ben can have his FRNs back as people are learning about the debasement of paper money. It's real life rejection of his monetary policy. Maybe he will be around long enough to turn the lights off at the Federal Reserve for the last time.
COMEX Gold inventory on 4/5: 9,273,384 troy oz.
COMEX Gold inventory on 4/12: 9,214,963 troy oz.
COMEX Gold inventory on 4/18: 8,917,900 troy oz.
So inventory is down 3.8% in just under two weeks, 2.1% in just the past week. Wonder how long until they start sweating? Call it 8% a month, I don't think they can sustain this draw down 6 months without some major issues/attention/defaults/cash settlements.
WOW! They have awoken the sleeping giant. This mania is going to be AWESOME!
Welcome to gold fever.
Enjoy the ride everyone!
That's the sad thing. It's not gonna be awesome. It's gonna suck. I got into itccuz things seemed off. Then I peeled the onion. I was frightened by what I've uncovered. I'm just glad my wife and family trust me and are listening. We have bad things on the way. The severity if it is the question as we cannot keep sustaining this status quo of poor management and debt. The easiest way to enslave a society is through debt. That is timeless as is gold and silver.
Our next defining moment in the gold trade will be people bragging at cocktail parties about how much gold they own, how much they paid for it and how much they flipped their gold for.
When the cocktail parties start sounding like the ZH boards, then and only then it is time to start considering the gold market to be topping out
And we r nowheres near that. Nobody I know, save a couple of Don't Tread on Me types are even thinking about it. Not even on radar.
Exactly Mr. principled one :)
If they run out of pysical, the banksters will just lock down accounts so we can't get cash or bits to buy the phys with. The PM's will get revalued when the banksters say it is revalued.
So don't keep all your cash in a bank...
Border Gold is a first class bullion dealer here in Vancouver Canada. its in White Rock B.C. about a mile or so from the U.S. hence the name. I have bought there before. Today for the first time there was a limit on silver maples. Maximum of 50 per customer per day@ $27.52 CDN
I did buy the max and asked the guy why the limit? He said they were running low. I asked what if I walked out and walked back in. No way he said.
So much for the bubble...
so put on a hat
Man, these bullion dealers are smart. ;)
This was my first foray into bullion purchasing. Thanks for the opportunity, bwankers :) Have more cash at the ready to respond to any other price falls.
Careful. It becomes an addiction once you realize how easy it is to sleep at nights.
The precious metals are relatively simple. Relatively.
If times are uncertain, you want alot of them.
If times are good, you want some for backup.
That's all, really.
The reason I hold physical metal is because times are uncertain, but I'm fairly convinced that the financial system as we know it is not going to survive. And this is not idle speculation about what may or may not happen 100 years or a million years from now. I'm talking about something happening RIGHT NOW.
If something happens to you, then you have to respond. You have to make an existential choice.
My choice is precious metal. For those that denigrate it, what is your choice? Bitcoins? Bonds? Trading stocks against the HFTs and the Goldman gang? Calling up your Senator or the Federal Reserve, and asking, can you please stop being so corrupt and drowning us in debt and debasing the dollar? Can you please keep the dollar sound and run America for the benefit of its citizens? Pretty please?
It's pathetic, isn't it.
What is your moral premise?
I am a soldier. I did my job. I have killed so many enemies, so well that I made war for profit possible. On my back, against my best interests.
How much was gold worth before fiat currencies were invented?
Now, that's a very good question!
http://www.businesswire.com/news/home/20110819005774/en/History-Shows-Pr...
http://www.armani.com/us/emporioarmani/one-button-suit_cod49127106rs.htm...
Any questions?
Whatever a merchant would give you in barter?
Same as today, really.
anywhere from 12, 14, 15 or 16 times the value of silver - depends on when and where
Gold flows in the direction of production and away from consumption. All is well....er, if you live in the East.
My problem with gold.
Example: It's 2025. "Hurray! My American Gold Eagle is worth $500,000 dollars!"
Unfortunately, a roll of toilet paper costs $50,000.
Is your gold really worth that much?
I'll be wiping my ass with something cheaper like leaves if that is the case.
And how much would your life savings of 500,000 2013 US dollars, put into US Treasuries or even held as cash, be worth in that case? Which would you have rather held over the previous 12 years?
We can do this for real. Just inflation adjust the 500K back, let's pick 1980K, and then look at the purchasing power:
Based on BLS, 500K today has the purchasing power of 176K in 1980. So let's make 176K the "life savings" for our 1980 person.
if you saved 176K in 1980 and did nothing to invest it (ie 0% interest, close to where we are today!) it would still be worth $176K, but it would only buy what $62K did in 1980, e.g. it lost 64% of its value. This is why ZIRP is so fucking evil, it's robbing savers, primarily retirees.
What gets me annoyed is that prior to the 1970s childred would save in a piggy bank. After the monetary system changed the bankers started stealing from children.
Let's take it a little further. Toilet paper's $50,000/roll. Unfortunately, when the price started rising it was removed from the CPI (because 'volatility in it's price was skewing the numbers'), which is still showing an annual rate of inflation of 2%. So now, because your wages (or let's just say 'the average guy's wages) have 'kept up with inflation', he's making $150,000/year. Hurray! I can buy 3 rolls of toilet paper with my annual salary! Lucky there's no inflation! How's that paper money looking now?
Reporter: Mr President, can you comment on the price of toliet paper?
Prez: Who gives a shit?
Fin
Toilet paper is overrated.
If my mother married Ben Bernanke, he would be my step stool.
Well, this further highlights the importance of holding physical toilet paper, rather than paper toilet paper.
Well that's the point. Gold and silver don't actually change much in value. They only change in price.
It's the currency which is changing in value, to the down side. So you're not really investing in gold and silver, they are not good investments. What you are doing is saving in gold and silver and negating inflation.
Didn't the Romans try their own form of fiat currency by removing more and more silver until the coins were mostly all tin? As I recall from history that didn't work out too well in the end.
"Silver in any form is quite hard to come by unless you want to pay premiums of 20%+ per ounce above spot price."
Which suggests that paper silver is suppressing the price of physical silver by, oh, about 20%?
this could only be me, but I think we are slowly witnessing the death of the western banking system. Truth = Trust and Trust = Truth. There is none being Offered or Given
this could only be me, but I think we are slowly witnessing the death of the western banking system. Truth = Trust and Trust = Truth. There is none being Offered or Given
http://www.mirror.co.uk/news/world-news/boston-bombers-fbi-hunting-12-st...
Boston bombers: FBI hunting 12-strong terrorist “sleeper cell” linked to brothers Tamerlan and Dzhokhar Tsarnaev
Police believe the pair were specially trained to carry out the devastating attack
The FBI was last night hunting a 12-strong terrorist “sleeper cell” linked to the Boston marathon bomb brothers.
War is coming.
Well now, that changes the whole fucking game, don't it?
Head Honcho said nah, not turrurists, wouldn't even say the word, kinda fucks up the open borders Immigration idea... bad bad bad politics for the Head Honcho, especially after the 30 round mag defeat horseshit.
Next thing he's gonna try outlawing NASCAR because them rednecks don't like White Whine and Cheeze Whiz Parties.
Jesus, I get so fucking tired of these California Liberal Hugs and Social Justice Horseshit. It is so disingenuous.
Yo KNUCKLES HEAD,
The head knucklehead is from CHICAGO... Not California! We got pelosi, boxer, Feinstein and ALL the rest of the idiots, except REID, that guy is owned by ALOT of different special interests.... OR... maybe just ONE. Who can say about these crooked politicians
Knuk, now we know why they shut down the news on the vehicle seized at the Canadian border supposedly loaded with moar bombs.
Wow, if two guys can shut down all of Bawston, the other 10 guys left in the cell should be enough for the Tools to shut down the entire country!
Greater fool all done? Let's get it all back in the hole and weld a stick'um on it so the next guy in line can get enough (never enough) guns and watch it until kingdom ciomes in their face. Treasure of the Sirerra Madre. rinse, repeat.
long silver nov 2008...
wake me up
at 12.00$
Antal Fakete acknowledges the physical run on gold and beginning of the decoupling of paper vs physical gold markets. But says it will actually cause big time deflation when people convert fiat out of the system into gold, which is the opposite effect the bankers had intended, and very bad for them.
But I think that also means we can all expect to be Cyprused sooner, rather than later. Banks are gonna have to stop depositors from converting into physical gold. Saving Goldman Sachs is a matter of national security.
They are doing God's work, after all...
Kind of on-topic. I was going through a box my sister sent me after my mom died and found the itemized hospital bill for my birth.
A few examples circa 1950:
Room-OB $13/night
Anesthesia: $20
Total hospital billing for caesarian and a 5 night hospital stay: $150
What happened to our money, Mr Buffet? I think rich blood suckers like you and your Wall St cronies sucked up the value. That's why we need gold, because parasitic thieves like you, the banksters who own the fed, and the politicians can't be trusted not to steal our wealth.
When we cleaned out my parents house after dad died, we found a bill for my mom which had some kind of operation back in 1939. The whole bill for 5 nignts hospital stay and surgery was $64.00.
And to paraphrase "The Usual Suspects," the greatest trick the U.S. government and the Fed ever pulled was convincing 99% of the American public that inflation is some kind of natural phenomenon, like gravity and light, rather than simply an intentional backdoor tax that has allowed said government to spend as much "money" as it wants, whenever it wants, wherever it wants, FOREVER (or, of course, until it can't)...
On my mom's side, 13 kids were born in the house(not all at once).
Total cost: $0 ...
Ahh gold, our old Friend. I have been listening to the Russian Mrs. M. regarding the Chechens. That hatred is not going be resolved and she is a very intelligent woman. She was near to yelling at me for being a fool. A fool I may be, but this hatred between Russians and Islam runs very deep. She does not understand the motive of the attack at the marathon however. Neither do I.
I learnt that during the recent crash in gold prices, 400 tonnes was sold in just a single day. More than many central banks hold.
Who can shift wonga on that sort of scale?
That was paper.
I want to buy the last gold ounces Jamie Dimond has before the Chinese rip it from his emaciated hand.
My usual coin store was packed this morning. I saw one guy walk away with 3 of the large Silver Eagle boxes.
Did you get his address?
Japan Gold Retailer Sees Purchases Double Today as Price Tumbles http://www.bloomberg.com/news/2013-04-16/japan-gold-retailer-sees-purchases-double-today-as-price-tumbles.html
Gold Drop Splits Central Banks as Sri Lanka Sees Opportunity http://www.bloomberg.com/news/2013-04-16/gold-tumble-divides-central-banks-as-sri-lanka-sees-opportunity.html
Sydney – Bargain hunters join the gold rush as prices drop http://www.smh.com.au/business/markets/bargain-hunters-join-the-gold-rush-as-prices-drop-20130417-2i0m8.html
Perth Mint Gold sales more than double http://www.bullionstreet.com/news/perth-mint-gold-sales-more-than-double/4526
Gold Drop Spurs Demand From Indian Bazaar to Chinese Mall http://www.bloomberg.com/news/2013-04-17/gold-drop-spurs-demand-from-indian-bazaar-to-chinese-mall.html
(Swiss) Refiners Can’t Keep Up With Massive Global Gold Demand http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Refiners_Cant_Keep_Up_With_Massive_Global_Gold_Demand.html (paper) Gold Tops $1,400 as Demand for Jewelry, Coins Surge http://www.bloomberg.com/news/2013-04-19/gold-gaining-as-physical-demand-said-to-be-extraordinary-.htmlArizona Becomes Second State to Approve Gold and Silver as Legal Tender
16 April 2013, by Nicole Goodkind (Daily Ticker)
http://finance.yahoo.com/blogs/daily-ticker/arizona-becomes-second-state-approve-gold-silver-legal-131138074.html
We are probably buying Texas and Germany's gold right now
Then they will say it was stolen during an upcoming false flag and claim the insurance on it
Then they will have the President issue an Exec Order to confiscate it back from us
Kind of like a Sept 11 - Roosevelt Combo
Here in Canada our Maple Leafs are made from gold owned by Holland.
They'll be lucky to get it back as the Canadian government owns absolutely no gold.
I got tired and frustrated going to the coin store. So I leased a 50 acre gold claim for the cost of 1.5oz's of gold (at the high end). Now I can go on vacation and get it right from the river next to my campsite. The river is my new coin store.
Wet Gold, Bitchez...
+1000
BRAVO!
"Watch for this. Watch for the gold and silver futures to sell off as people walk away from paper while the online cash dealers, seeing that market demand for their physical inventory is robust, begin to ignore the futures prices and hold their prices steady or even raise them. When you see this basis decoupling and absence of arbitrage, lo, the end is nigh. A parabolic spike is coming."
--Ann Barnhardt
From above, PUD is clearly a bleeding heart, hand-wringing liberal who often has multiple views, most of which conflict with one another.
PUD has no clue about the realities of gold mining except for that which he learns through liberal TV documentaries, blogs, website posts and conversations in coffee shops.
For the record, there are many different methods of mining for gold, each dependent on where the deposits are located. Not all of them are deep underground. No all of them require the use of caustic / toxic materials for extraction.
I know this from firsthand experience as I used to run a gold mining company in Africa.
YES, there are 3rd world cultures where kids are employed to work in the mines, but this is an issue with the employers, not the metal itself.
PUD also seems ignorant to the actual real-world, critical uses of gold.
Any of your electronics making use of solid state components use very low voltages and currents. These are easily interrupted by corrosion or tarnish at the contact points. Gold is a highly efficient conductor that can carry these tiny currents and remain free of corrosion. This includes connectors, switch and relay contacts, soldered joints, connecting wires and connection strips.
In fact, a small amount of gold is included in literally every piece of sophisticated electronics manufactured, including the very computer you are using to get onto ZH.
There is also gold used in that Yugo or Honda Prius parked in your driveway.
MEDICINE
Small amounts of gold are used to remedy several different medical conditions, including Lagophthalmos and rheumatoid arthritis. Radioactive gold isotopes are used as a radiation source in the treatment of certain cancers as well as in diagnosis. Colloidal solutions can be tracked as a beta emitter as it passes through the body. There are surgical instruments, electronics and life-support devices are made using small amounts of gold. The metal is nonreactive in the instruments and highly reliable in the electronic and life-support devices.
AEROSPACE
Gold is used in hundreds of ways by NASA and private industry within the space program. It is highly dependable when used in connectors. There are many components and larger parts of each spacecraft which use a gold-coated polyester film. It helps block IR radiation and helps stabilize temps.Without it, dark-colored parts would absorb significant amounts of heat. It is also used in lubricants as the vacuum of space causes organic lubes to volatilize and break down. It also has a low shear strength and is actually used as a lubricant itself between critical moving parts. Cold is also used in the canopies of fighter aircraft, glass on buildings, reflectors on telescopes, etc...
I could go on, but suffice it to say, there are a myriad of "useful purposes" for gold beyond preservation of wealth in times of corrupt currency policies.
A friend of a mine is an actual gold miner. He does not use any caustic chemicals. In fact, I believe he uses no chemicals whatsoever. I leave to others to determine if water is a chemical, similar to how CO2 is a pollutant.
Do not characterize me falsely. I have no political leanings what so ever. i am a free thinker and rationalist.
I did not say that gold didn't have uses.
Plutonium has uses, nerve gas has uses, bio weapons have uses.
It all comes down to whether or not the use outweighs the cost/consequences.
Children are used in mining and that is not a function of the employer it is a direct consequence of the price, the greed and the demand. Don't try to rationalize your way out of that.
Tons of mercury are dumped into South American rivers every year as the direct result of gold mining.
You people who hoard it for no other reason other than hope of personal gain are directly responsible for this and all the other consequences.
There is no way around it try as you might
So your reasoning is that if people didn't "hoard" gold the price would be cheaper? Now how in the fuck is that going to stop people from using cheap immoral labor to extract it? If anything that increases the need for cheaper extraction, and cheap labor. There will always be a market for industrial gold, even if banksters somehow brainwashed everyone into thinking it had no value.
So in reality, by your reasoning, hoarders are doing a service to the mining laborers by increasing the price of gold along with their chances of receiving a higher wage... making the job more attractive to adult laborers... eventually squeezing the children out of the market altogether.
Hoarders would also lessen the environmental impact of gold by making mining profitable enough for extractors to upgrade to modern equipment that doesn't use mercury and increases the yield from ore.
So not only are you a moralizing hypocrite who rages against PM's on their computer that uses PM's to fucking work, but your entire line of reasoning is completely ass-backwards and retarded.
Not sure if troll, or really that fucking stupid.
So we should have more wars too as the economy booms in wartime. Keeps trouble making kids off the streets too. We would develop more accurate weapons as well so we wouldn't kill as many civilians. Who's the stupid one here?
Google "America."
Comex will default on gold and silver delivery. Remember one thing someone bought all those contracts that were sold and if they want delivery it won't be there. I honestly think we could see a short squeeze of record proportion
Watching the Movie "Back to School" w/ Rodney Dangerfield and the Economics teacher Dr. Phillip Barbay was lecturing this to his class before he got rudely interrupted...
In the United States accumulated deficits... Greater than the supply of gold the country held. In that year, Richard Nixon... took the United States off the gold standard. In doing so, he disrupted... the entire international monetary system.Who's selling the physical?
There are some folks who are investing in SEA MONKEYS! YUP.
Ladies and gentlemen. I think the confusion here is that you are all very ignorant. Is that right word, ignorant? I mean stupid, primitive, unenlightened. You do not understand being an ECONOMIST, so you are afraid of it. Like a dog is afraid of thunder or balloons. To you, ACCOUNTING (and putting your boots on with Petroleum Jelly - so that your feet make squishy sounds) is magic and witchcraft because you have such small minds. I cannot make your heads bigger, but the folks who believe in paper wealth, well, i can get to their heads, I can take them and crack them open. This is what I try to do, to get at their brains!
Thank you...
Make sure that you measure your wealth by how much paper or digital that you may have. [sarc off-in case some of you missed the "haha foo on you"]
I am still having fun with this and truly laughing my ass off!
Keep stacking...
BITCHESSSS
This is exactly what happened in 2008. How did that work out for metal shorts?
Who's selling?
Good thing I stocked up over the last 40 years.
Trying.to.get.MOAR!
S-Towne and Prov are both on delay.
Going to India next week. Moar. Moar.
Maybe I can get the Guy With The Golden Shirt to sell.
This says all you need to know about what is occurring, it's not a pretty picture:
http://www.professorfekete.com/articles/AEFWhoSaidDragon.pdf
Great link. A must-read. Professor Fekete is the only economist I trust. He has been honest and to the point since I first started reading him in 2009. When he says permanaent backwardation of gold, he speaks the absolute truth. It is happening in the here and now and cannot be stopped. Adam's Smith's invisible hand has been artificially pushed by the unwise Bernanke and the hand is going to bitch-slap him and the rest of the world's central bankers.
Those of you patiently (some, not-so-patiently) awaiting THE END, well, it's here. I kid you not. Today I will make one more silver purchase and lots of canned goods to tide me over until my crops start producing (about three months). We are all preppers now, bitchez.
If gold hoarders are fools, then those with whom they exchange fiat will take that paper money and put it to far more productive use. FIAT and fiat based investment will gain substantially and exponentially from their wise choices while gold holders will watch as their form of money is diminished and ruined. Market dynamics will demonstrate which decision to be superior and he who entertains folly will fall far behind and be diminished. Instead of taunting PMs, they should sit back content in their paper money system pitying the money Luddites but quietly going about their more sophisticated, wealth creating business.
There's plenty of gold available over at Tulving, for normal premiums:
www.tulving.com
Not much silver - no maples or eagles - but there's junk at a pretty high premium - $5/oz - but plenty of 100oz bars at like $1.49 over spot.
So I think this is being overblown.
Things are being 'confused'.
From what I've known and seen recently..., there is plenty of gold above ground at this point. No shortages of gold except in the supply line. People are buying it up fast (especially in places with high inflation). This is supported by the fact that premiums have not risen (at least as of yet). But the price is low enough to maintain a lot of forward buying. Not just the retail, but as pointed out by McGuire, for the 90 days before this take down, a LOT of gold was leaving the market (suspected to be soverigns taking delivery). But just because there is not a shortage of gold does not mean the price won't rebound. The reason(s) for the gold price take down are suspect (meaning nefarious).
However...with silver this may be an entirely different story. Premiums have shot up. There is more questions regarding above ground silver than answers that are factual.
Silver gets dragged along with gold. Gold got taken down, silver went with it. It gave certain...(ahem)...'entities' a chance to exit their shorts. But it would appear a great strain has been put on the silver supply that we are not seeing in the gold supply.
And so, the run on physical begins?
People are reacting. I have been watching $23 Silver Eagles go on Ebay for $50+. Just login and watch for yourself.
eBay is an indicator of nothing. They'll buy pieces of toast with an outline of Jesus, so obviously it is no indicator of actual market prices.
I saw 1kg bars for sale for €550. Really had me worried, as I have to sell mine each month. This morning I checked, none for less than €700, and the supply had halved. There was some panic selling when the price was hit, but those numpties have gone now.
Though eventually there will likely be a true shortage in physical - as in no more gold / silver available for the refiners/mints to buy and then by extention no more for retail and/or CB's to acquire (and hence prices start moving up exponentially) I see this more of a temporary merchandise shortage. One that can be slowly resolved if refiners and mints revved up their production ahead of schedule or activated another work shift to fill production orders.
Unless a refiner / mint actually admits they can't get any feedstock it really is hard to say that there is a true physical shortage then what we hear on the news seems to only be a shortage of finished product. Though it is a shortage nonetheless.
"I then confirmed with UBS today in Zurich, Switzerland, that they are experiencing exactly the same thing. They told me people are waiting in long lines for bullion related bars and coins."
Which branch was that? I was at the Bahnhofstrasse branch and saw no lines, neither at any of the other branches that I passed (they are on almost every street corner in Zürich).
You can buy gold all over the place here, no shortages, prices are fine.
During last week, no lines in Zürich. UBS, CS, Zürcher Kantonalbank etc. you can have as much as you want. Check also quotes on Degussa-Goldhandel.ch, they have plenty of stuff. Not to mention Geneva and Lugano, you can have immediate delivery for whatever you want. Rubbish stories.
I hope they smack it down to < $800, so I can BTFD.
Those opposed to this price are clearly not True gold lovers who want to keep stacking, but Speculators. Or maybe shills, whose agenda demands a higher price (lest they lose their golden customers). Sorry, but each of us can only worry about our own agenda in a free market economy. :-)
Complete beat up. On #6, evidence of the mania (from another source) was that 60 people were in line at a prominent retail outlet in Sydney (an affluent city of 5m people).
So 0.0012% of the population are buying from that well-know outlet (there are probably 3 others that also come to mind), generally small quantities (one person questioned was buying 10oz, and other 1oz).
Checked online and premiums are basically normal, a few minor shortages but so what.
Here's what would convince me:
1. Price back to where it was 2 weeks ago.
2. Hundreds or thousands of people buying (something like the photo at the bottom of the article).
3. Some of the great majority who have never owned gold and in fact distrust it, investing. Gold bulls topping up doesn't cut it.
Personally I'm biased to lower prices this week. The bounce from the low was weak, the COT was not supportive of a bottom and the pure number of these stories (from ZH and elsewhere) basically points to a disinformation campaign. There are plenty of leveraged and non-leveraged longs hanging on by the skin of their teeth.
battered and bruised by the wrath of Olympian manipulation Prometheus enchained awaits the 11th labour of Hercules to be liberated from his caucasian peak and delivered of his liver eating beast; the olympian eagle of fiat mayhem.
Its the Eleventh sign which will ring the bell of WS asset deflation...
Hercules' Eleventh Labor: the Apples of the Hesperides
Only to have to return those golden apples back to Hesperides!
Well there you are, it never ends this race for apples we cannot eat but which promise eternal felicity.
Ask Steve Jobs on that...
POG = cost of production + Fear + money supply
Physical gold is in danger of confiscation possibly following another false flag. GOLD GRAB could be ahead. Read here
What is NOT in danger of confiscation?
Bitcoins?
You walked into that.
Umm...I'm not anti-bitcoins, but if I'm not mistaken, there have been a number of bitcoin "thefts" in recent months. What's the difference between "stealing" and "confiscating," especially if you don't know who's behind it?