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Understanding Gold Market Dynamics
Via John Browne of Euro Pacific Capital,
To an extent that reveals a thorough misunderstanding of the market forces, the financial media has failed to consider the different motivations and beliefs that drive the different types of investors who are active in the gold market. By treating the gold market as if it were comprised of just one type of investor, analysts have drawn false conclusions about the recent volatility.
Broadly speaking, the gold market consists of long-term investors, which are comprised of primarily private individuals who believe in gold as a better store of value than fiat currencies, and short-term traders, who are primarily financial professionals looking to play on momentum trades. The groups invest with different time horizons and with varying goals.
Those with a long-term view tend to see gold as a hedge against inflation and as security against financial uncertainty. They tend to buy both paper gold (in the form of ETFs), and physical gold (in the form of coins, bars and, in some cases, jewelry). The physical market is divided between these small buyers and the central bank bullion buyers who acquire gold as national currency reserves.
In contrast, short-term players, like hedge funds, mutual funds, and institutional day traders tend to be much more sensitive to trends and technical analysis. Trading effectively both ahead of and behind a particular asset price trend requires quick decisions and precise trade execution. To achieve this, these players tend to buy the vast majority of their gold in the form of easily traded ETFs. Certainly over the last decade, gold had established a clear upward momentum that such traders could not afford to ignore. To profit from this trade, participants did not need to care why gold was rising. A simple understanding of chart dynamics was sufficient.
Short term traders also tend to pay very close attention to activities of leading institutions. When they sense that sentiment has turned among big market players, they will follow the expected momentum. On April 10th of this year, Goldman Sachs downgraded its 2013 gold forecast substantially. Gold fell hard on Friday of that week and then on April 15th gold had its biggest down day in 30 years. The GLD traded over 93 million shares that day, up from an average of 14 million. The price decline led to large liquidations by many gold ETFs.
While the big institutions are driven by momentum into gold, they also relied on fears related to inflation and economic uncertainty. However, many have now abandoned these concerns. In reaching its bearish conclusion on gold, Goldman Sachs cited low global inflation, and surging equity markets in the U.S. and Japan as reasons to believe that the bull run in gold had come and gone. However, their conclusions are hasty.
In seeing a diminished threat of inflation, mainstream analysts fail to appreciate that much of the trillions of dollars of Quantitative Easing (QE) continues to be hoarded in bank deposits. The velocity of money, which has much to do with rising prices, remains at generational lows. It is not until banks lend this money out, usually on a leveraged or fractional basis, that it becomes part of the money supply and therefore actively push up prices. Therefore, while QE creates a risk of future inflation, even hyperinflation, it remains only as a latent risk. In addition, as we have argued many times, official government statistics have tended to hide the true extent of rising prices. Faced with low inflation and QE driven stock and bond markets reaching new nominal highs almost daily, inflation hedgers have sold gold and reallocated funds into stocks, bond markets, and even real estate. But recent sell offs in Japanese equities and bonds could hint at the limit in such an expectation.
However, demand for physical gold continues to rise in China and India, while central banks added 109.2 tonnes to their reserves in Q1, 2013. Even in the U.S., demand for gold jewelry rose for the first time since Q3, 2005 and global demand for gold coins and bullion rose by 10 percent on a year-over-year basis. Additionally, the U.S. Mint announced it would be resuming its suspended sales of 1/10 oz. American Eagles at 40% over spot price. Despite this strong demand for physical gold, ETFs saw outflows of 176.9 tonnes in Q1 2013. Clearly a disconnect between physical long-term investors and short term traders has begun to emerge.
This past week, Fed Chairman Ben Bernanke hinted that if economic conditions were to continue improving there could be a 'tapering' off of the Fed's massive $85 billion a month QE program. The mere hint of even a reduction in QE was enough to send stock markets tumbling. Most likely the market turmoil strengthened the hand of policy doves on the FOMC. The Fed can harbor few illusions about the ability of stock and real estate prices to hold up when Fed support is withdrawn. This suggests QE virtually without limit.
As the central banks of Japan, England and the EU appear to have followed with their own programs of unprecedented QE, it looks as if the tightening expectations that are driving the sell off in gold are poorly founded. I would expect that ever greater torrents of fiat cash will continue to drive stock and bond markets up and interest rates and currency values down. Based on the dynamics of the physical market, it would appear that many smaller investors agree. As a result, we could conclude that the overall sentiment towards gold is not nearly as negative as we have been recently led to believe.
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the gold crash was a coordinated head fake by the CB's to try and shake some phyz from the tree
one thing that is not much mentioned is that when the various exchanges begin defaulting (inevitable) it only makes sense that they would want to see the prices as low as possible when they turn to cash settlement. last Sunday it was reported that the Hong Kong bullion exchange HKMEX has ceased all physical exchange and will presently only settle in cash at their discretion, a huge event which along with the similar AMRO declaration a month ago has been naturally under reported by the MSM hacks. http://sherriequestioningall.blogspot.com/2013/05/hong-kong-mercantile-e...
Kumbayah Currencies will bow to Gold
http://twoshortplanksunplugged.blogspot.com.au/2013/05/kumbaya-currencies-will-bow-to-gold.html
Get on your knees Fiat Dawg!
You hold real gold in your hand.....or you don't own any gold.
Exactly!
Gold price or price of gold?
The "gold price" is what you pay to own a futures contract or a share of GLD.
The "price of gold" is what you will pay to own and hold an ounce of physical gold in your hand.
The gold price is disconnecting from the price of gold. Case in point the 1/10 th ounce gold coin offered for sale by the US Mint at $195 each! Which means an ounce of gold valued in that form is $1,950.00
You're behind the curve on the Mint sales: Those are proof (numismatic) coins.
And also the smaller the coin/ingot, the higher the premium is due to seigneurage (sp?). Go check out the premium on 5 gram or 1 gram silver ingots, for example (
yes they exist).
Ok, I know the end of this story. But why are premiums coming down if there is such huge demand at this point? Silver eagle premiums have fallen and delivery times are back to normal. Is this just a bump in the road? Can anyone explain?
Bingo! We will see continued collapse of the paper gold market so as to settle as low as possible!
It is the threat of default by the precious metal exchanges that keeps large investors from investing at all. That helps to drive down the price of PMs.
HKMEX isn't a big deal - it was a tiny start-up exchange with only about 200 open contracts
Even though the Member Banks were able knock the PAPER PRICE of gold down, it didn't stop the huge amount of physical demand as they planned. According to the newest release from the Royal Canadian Mint, Gold and Silver Maple Sales Increased in a Large Way:
Gold & Silver Maple Leaf Sales Increase in a Big Wayhttp://srsroccoreport.com/gold-silver-maple-leaf-sales-increase-in-a-big...
Indeed, the physical fell from the tree, just it was the wrong tree and it fell in the wrong hands.
Indeed, the physical fell from the tree, just it was the wrong tree and it fell in the wrong hands.
Bullshit.
If the gov gets involved in manipulations, all dynamics are out of the window.
I guess all dynamics are out the window, whatever that means. The gov is involved in the greatest manipulation of all: the price of money.
there is plenty of government manipulation and plenty of dynamics.. but it’s the same kind of energy that exists when you amp a meth head with all crank he could possibly want and you will end up with a market and economy analog of max tweaked go-go loser wreaking havoc and then jumping naked out the window.
So..., Manthong..., you seem to have a..., diversified background...
;-)
a bit of criminology, a bit of psychopathology.. which naturally led to an interest in economics
Have you been following the Rob Ford crack video case?
LMAO. Reverse bullshit. If the gov't doesn't manipulate gold and silver, the USD is dead, reserve currency called into question, bond bubble bursts, on and on....
BTW, wtf are "dynamics"?
I completely agree with you.
As a side observation, I have been asking local 'scrap' gold buyers how much scrap they think is still out there. Their reply shocked me when one in particular said over 80% of it has already been turned over.
When that source of very cheap gold is gone, I would expect the prices to really start moving up, and the Dollar to go to the outhouse. When this loss of confidence occurs it will be hell to live in the US.
"If the gov't doesn't manipulate gold and silver, the USD is dead"
+100
Update:
The dollar hasn't left the outhouse since 1913...
Do you even think before you comment?
LMAO. Trolls don't get paid to think, they get paid to spew...
Did ekm just get called a troll?
Wtf?
This site is filling up with arseholes
95% of posters on this thread are morons not fit to duel with ekm any daymof the week
The short term traders also seem to have a legitimate counterfeiting operation on the side.
http://goldsilverbitcoin.com
Yes, they can lend money while holding 'reserves' at a ratio of what, 30 to 1, 100 to 1?
As one writer said, there is the "gold price" - highly speculative and manipulated - and "the price of gold" - which is only going in one direction: up.
It's now 3:30PM PST. Markets are closed. But watch the daily off-hours "gold price" dribble-down start: $1392 now...in four or five hours it will be @$1385-$1387...
Monotonous.
I thought after Cyprus that gold would skyrocket....to see what the bankers have planned and right out in the open I thought it would make PM´s take off for security reasons...I was wrong...really wrong...I am missing something but i do not know what it is...
The big players are leveraged up to the eyeballs with cheap money and are only interested in more paper money returns. They couldn't care less about preserving purchasing power. They can't see that far.
This is a desperate, desperate search for yield among the momentum-chasing monkeys...and they'll ignore any and all risk to make that extra .01% return. Gold doesn't pay them any return and, because most of them are leveraged hedge, stock, insurance, banking and mutual funds they cannot afford to speculate. Indeed, their prospectuses probably forbid it.
They need to pay policyholders, retirees, mutual fundholders, employees, shareholders, unitholders, and the like - ALWAYS in paper cash. They MUST, MUST "invest" (that's what they call anything that produces more paper money).
The good thing is that these short-sighted but trapped clowns WILL go bust. We just don't know the exact timing...
What you are missing is that during the up phase of a bubble people that risk somebody else's money get desperate for increasing their leverage, for that they need cash. Then all commodities become loads rather than value hedges, since you have to mount on the up wave with as much leverage as you possibly can. Once those commodities are transformed into cash and you can increase your leverage you ride the wave until it bursts and plan (this time is NOT different) to exit first and before it bursts. Once it does, at the beginning you don't believe it and want to stay in the game for that you will need more cash so that you don't get a margin call (that brokers sell your equities on a downpeak). At that point the sell of commodities reaches its peak and you get deflation at the same time than the market crashes hard. By the time people understand that it was only a bubble, there won't be much cash around, that will create deflation and depression, the central banks will react hard and prime the pump with no restrictions and there you will quickly shift to hyperinflation. Hyperinflation will destroy the economy's base and worsen by 10 fold the moral hazard of the decision makers. That will destroy the fabric of society as we know it today (I saw that happening in Argentina two times, in the 1980s hyperinflation and in the 2000 crises with a sudden 4:1 devaluation). You can check on the corruption of the Argentina's society today in google.
An alternative outcome could occur if the FOMC never lets the market crash using their POMO operations and increases their frequency to more than just on Tuesdays and allows its size to be unlimited. If they go that route, we will shift directly into hyperinflation without passing through deflation since the faith in the value of the US dollar will collapse, and it will hapen in days (we are well on the way now on this trajectory).
As you can see the FOMC is between a rock and a hard place.
I don't see any solutions (taking into consideration the shadow banking industry and their massive financing of the brokerage business with short term debt, it's never a good idea to finance a large portion of your need of working capital with short term debt, it is cheaper, but it is very dangerous in a downturn) inside the current world power balance and political paradigm.
There are solutions, but funny enough, people trust physicists and engineers with telling them that the incoming asteroid is going to be 10 times the distance to the moon when it closes up on earth, even when that distance is equivalent to a few microns in our reality versus the galactic dimensions. But they don't trust us when we talk about economic realities or chaos theory, they call us technocrats and deprecate our years of hard work and study with baseless rethorical arguments that sound good to the non-understanding masses. May be it's that they don't want to trust us, that they don't want to hear what we have to say... And please don't bring Bernanke's PhD... that is not the scientific method, NOBODY in the scientific world is allowed to settle a matter without ample and open public discussion of all those with expertize in the area, furthermore, nobody is allowed to conduct human experiments without ethical approval and informed consent. Bernanke is just playing around with theories without knowing the answers in an incredible forcefull experiment (similar only to Nazi Germany human experiments) without the informed consent of those being forcefully experimented upon.
Until next time,
Engineer
While people trust their 'leaders', who tell them exactly what they want to hear ("no further pain is necessary, and the economy is already improving"), its very difficult for someone to present a more 'sobering' view. I also think people have been 'desensitized' to our alarm cries.
They laugh, and think of the fairy tale about "The Boy who cried Wolf". I think they don't understand that we are saying the wolf is coming FOR THEM, not for the boy, like in the story!
I'm wondering if recession is really taking hold and potential gold buyers just don't have the money anymore. I mean individual small investors in Europe and the East who traditionally keep their savings in gold. If they don't have savings they can't buy gold. Could it be the flurry of gold buying that took place a few weeks ago when it was on the bargain counter, is the last of it, and retail gold sales are falling overall?
I can't believe I haven't seen anyone post the federator game here it's awesome.
http://projects.wsj.com/games/thefederator/?mg=inert-wsj
Just a bunch of often repeated commentary. Is anyone else sick of reading this bullshit?
I am burned out listening to these guys literally talk in circles. Tell me something I don't know.
>> I am burned out listening to these guys literally talk in circles.
I just skim the articles to make sure there's nothing new. I have a much greater chance of finding a nugget of wisdom in the comments sections.
It's not nuggets of wisdom I'm looking for!
I'm looking for real nuggets!
Try McDonald's. They say theirs come from chickens, though I can't seem to find any on mine.
Ditto. And this: "In seeing a diminished threat of inflation, mainstream analysts fail to appreciate that much of the trillions of dollars of Quantitative Easing (QE) continues to be hoarded in bank deposits."
Sure, there are trillions being held back by banks, but isn't the entire current $85bln/month now going to finance the deficit? And doesn't that money all get pissed away in the real economy? When it was just banker bailouts from QE the hoarding argument made sense. It doesn't now. It's all getting spent and it's inflationary - the price of everything except gold, silver, and debt, is rising.
Bingo. And he doesn't even address how gold was taken down in April either. Yes John, 500 tons of paper gold flooding the system in minutes, running all the stops, while bids were deliberately and intentionally withheld, does have an impact on prices.
His analysis is MSM type drivel.
We all know the outcome. The only unanswered question is TIMING.
Yep, too much fiat chasing too few assets is the bottom line.
This is really not going to end well.
When one is buying physical metal hand over fist, with every available discretionary dollar, timing becomes moot. Whereas, if one is trading paper PMs, timing is life or death. Guess my trajectory.
In seeing a diminished threat of inflation, mainstream analysts fail to appreciate that much of the trillions of dollars of Quantitative Easing (QE) continues to be hoarded in bank deposits.
Incomplete statement. To "hoarded in bank deposits" you need to add the words "at the Fed in 'interest bearing excess deposits accounts."
The banks aren't lending because they have nothing to lend. The FED is controlling it all. The banks, except for the mega-banks like Goldman, have/control nothing.
Understanding Gold Market Dynamics:
Manipulation. Collusion. Corruption. Suppression. Repression.
That's about all one really needs to know.
True enough - and once one knows such, one need only STACK and WAIT.
Yes akak but it's Possession that is nine tenths of the law
I'm so relieved that 'Conspiracy' is not part of it. ;-\,
Yeah, what about all those GOLDTARD MASOCHISTS who love suffering and love paying $1,800 an ounce for something that is now worth about $1,400 an ounce??? How dare the financial media ignore them!!! I am sooo outraged that I wrote an Irish Poem about it:
Midas in Furs???
A Gold Bug just didn't trust banks,
Or dollars, or Euros, or francs.
He said "I prefer
A Venus in Fur
Who will redden my bottom with spanks!"
Squeeky Fromm, Girl Reporter
Something else I'm far more sick of is useless and pathetic trolls like you. Get a fucking life would you?
BPig:
Well, at least I am NOT a Goldtard Cultist!!! Seriously, read the frigging article above. The author is giving the standard CULT spiel about a SPECIAL REALITY, apart from the normal reality of common sense, to justify further investments when gold is getting hammered. Do I need to translate it for you?:
"The Financial Media is analyzing GOLD as if it were just the run of the mill investment. BUT, we Gold Worshippers know that GOLD is special, and the reasons why we buy it, and sit naked in the dark and fondle it, is because we possess a Super Sekrit Special Knowledge about it! Just ignore those who laugh and jeer at us, because when The Golden Mother Ship arrives, we will be transported to a New Eden!"
Cue maniacal laughter.
Squeeky Fromm, Girl Reporter
So what's your advice again squeaky? Have a rich daddy right?
noless:
Here is my advice. Invest wisely in things that have real and/or lasting value. WalMart will probably be around for a few more decades, as will Proctor and Gamble. If you buy land, try to buy productive land where you can get rents, or grow hay on it. Something to maintain a cash flow.
If you decide to invest in something that has little or no PRACTICAL or UTILE value, such as gold, comic books, or Beanie Babies, cash out on a regular basis and remember, a Beanie Baby is just a little stuffed animal. Even if Asians are crazy about them, and Ubangis in Africa say prayers to them, some day the jig will be up and some silly wanker is going to be left holding a stupid little stuffed monkey he paid $200 for. Try not to let that person be your next door neighbor.
Squeeky Fromm, Girl Reporter
SqueekyFromm has very obviously never grown hay for profit.
"Grow hay on it"
AHAHAHAHA
Even shipping hay to the Cayamn Islands where you can sell it for $30 a small square is less profitable than owning gold.
Squeeky doesn't write like girl.
Maybe a wannabe?
I think they like to refer to themselves as "transgendered".
Charles is looking for you, Squeeky. I am surprised you didn't hear his voice in your head.
Buy farmland? Might be a good idea. You will pay a fair price though, its appreciated a lot in the last couple years.
Walmart? P&G? Pretty sure you will be buying them at close to peak prices, which of course, affects return.
Gold and silver, on the other hand... DYODD
Sorry, Squeaky. WalMart is in the toaster and the lever's stuck. If I owned WM stock I'd be selling it fast! Based on my in-store observations, WM's fundamentals in the real world do not seem to match their paper balance sheets. For example, while shopping in a WM lately, I found that one item was listed as having 144 units in the store - not a single unit could be found. Another item was listed in the inventory books as having 7 gross while only two were in evidence in the store. So it appears that they are possibly having cash flow problems (again) and may be inflating their assets far beyond reality to keep stock prices/values up. Certainly not the first time it's been done... probably not the last.
And if you want to know WHY WM is dying - they made the EXACT SAME MISTAKE that just about every other (now bankrupt and out of business) discount house made - they tried to go upscale on their clothing lines, chasing away the "discount" class of buyers and not catching the upper class buyers. Then they always try to go back to discount (when it is finally decided that going upscale from discount will never work) and they learn that they've driven all their discount customers away.
WM has problems... BIG problems... not least of which is the absolute top-down "management" with no comments allowed from the peanut gallery (workers), and their screwy inventory ordering system.
So *I* wouldn't be buying WM stock... just sayin'.
(Which is not to say you can't still make money on it - shoot - if you time it right you can make money on dead animals!) ;-D
Disclaimer - for what it's worth the above comment is only that - a personal comment, and I make absolutely no pretense of being any kind of expert on the subject. The above represents my personal experience. So if you are seeking professional investing advice - this isn't it. If you want to buy WM stock help yourself but do your own research before investing. PLEASE do your own research before investing.
Here's a recent Bloomberg story on Wal-Mart's inventory problems:
Wal-Mart Plasters Stores With Green Dots to Stay Stocked
Here's another:
Wal-Mart Using Green Dots to Solve Inventory Issues
(Its symbol is WMT, incidentally. WM is Waste Management.)
Waste Management is apropos for Wal-Mart on so many levels, inventory and customers alike.
I boycott walmart.
The real sediment of someone holding gold is quite different from the morbid picture you, squeeky, paint. Just guessing, most would feel rather good about buying and owning gold, for it's a great utility for storing wealth. Even when the price of gold goes down, the value of gold does not. Unlike fiat which is an invention designed to be manipulated so some may benefit without labor, gold is no invention at all. It is the perfect utility for preserving wealth, divisible, rare, universally recognized, won't rust, shrink, or change in any way over centuries, and it is beautiful. In a nutshell, that's it.
TrueBeliever:
Well, Gold is preserving about $400 per ounce less wealth than it was a few months ago. . .Hmmm, let's translate that into Groceries! At $1,800ish, and assuming $200 per month food bill, that means Gold WAS preserving about 9 months worth of food, and now it is preserving about 7 months worth of food.
I am no expert, but I do not think that direction is a good thing, or an outstanding reason to have bought Gold. It may get worse, and if Gold dives back to the $600ish range, then that is maybe 3 months worth of food. The gold itself may not "rust or shrink" but if you are looking to it for future groceries, your waistline may do a little shrinking.
Whatever, up or down, with that much volatility, how can you believe that Gold is the "perfect utility"???
Squeeky Fromm, Girl Reporter
.
No shit?
QueefyFrogg,
So, do you actually expect the price of gold, or of ANYTHING, to remain either perfectly constant, or to increase in a perfectly linear fashion? Can not the same specious arguments that you raise here against gold --- that the price of it, HORRORS!, in fact fluctuates --- ALSO be applied towards any investment or financial instrument? Yes, of course they can.
You consistently receive so much abuse, and so many downarrows here, because your 'arguments' (sic) are invariably lacking in both logic and historical perspective. But that is only to be expected, after all, as you are clearly not here to argue, but to disparage, distort, malign and attack both gold and its owners. That is, after all, the essential nature of the diehard troll. Wear the label proudly.
hakhak:
But, I am not aware that there are GE-Tards sitting around worrying themselves sick whether or not there will be GE stock to buy, or BondBugs who are convinced that bonds are a great store of value because DEBT has been around for thousands of years and "everybody ought to buy buy buy bonds whatever the price."
Gold comes with a CULT attached. Just read all the gold bug articles here. People being urged to buy because "Asians love gold!" or "Bernanke Sucks!". Which, he probably does. But that doesn't necessarily equate to Gold being where people ought to put their money.
Plus, it looks to me like a whole lot of people have "Put the wheelbarrow in front of the horse" when it comes to hyper-inflation. Because the Weimar people had wheelbarrows full of money to buy bread, it wasn't that the printing of money came first. The printing was a SYMPTOM, not the cause of the hyper-inflation. I read a really good analysis of this once, but I can't find the link.
Sooo, if the major underpinnings of what causes hyper-inflation are incorrect, then most of the basis of buying gold becomes kinda moot.
I wish I could find that darn link.
Squeeky Fromm, Girl Reporter
no, the cult is those seeking debt & yeild.
Those seeking lasting tangible value select many things. only one of them is gold
Gold is preserving about $400 per ounce less wealth than it was a few months ago
@Squeeky
Please determine the difference between the terms "value" and "price." then reconsider your above comment.
(Since you do not appear to know the difference - gold is "preserving" EXACTLY the same amount of "wealth" at either price. The price in terms of Fiat currency, however, has changed - which is the nature of fiat, and one of the principle reasons people want to own gold.)
Noflower:
How can you say, "gold is "preserving" EXACTLY the same amount of "wealth" at either price."???
Sooo, by GoldTard Cult Dogma:
9 Months worth of groceries = 7 Months worth of groceries
Hmmm, somehow, methinks around Month 8 your tummy will be speaking to you in low grumbles, and teaching you important lessons. I bet by Month 9 you won't even need special cult deprogramming.
Squeeky Fromm, Girl Reporter
Queefy, I can't help but notice that you skillfully evaded responding to my post above in response to your own, in which you speciously disparaged gold as a store of wealth, all transitory fiat price swings thereof notwithstanding.
This tells me that you either cannot counter my argument demolishing your feeble and puerile anti-gold trolling, or that you are unwilling to do so ---- or both.
1. ahhh Squeeky. You didn't do what I suggested. You didn't do what you should have done which was looked up the meanings of "wealth" (sometimes referred to as "value") and "Price". Since both groceries and gold are commodities, both are "PRICED" in fiat currency and both will move up and down the PRICE scales independently depending on demand:value for each individual commodity.
For example, would you pay the same for a can of Spam that was 50 years old as for a new can? So food does not hold value. Gold, on the other hand, does not decay or change as it ages so gold would preserve your value/wealth longer than your 7 months of groceries, and with bits of gold you could buy food if any was available for sale, and continue to eat long after your 9 months of food had rotted and turned to cockroach crap.
And gold is fungible. Groceries are not. So yes - gold PRESERVES wealth.
2. Just for the record - I am NOT a gold bug, and when asked, I actually encourage most people to stay away from gold for some very good reasons. The only gold I own is in my wedding band, and that's not much. My wife and I weighed up and added together all the gold we have, including the "scrap" gold. With gold at $1700 an ounce we had approximately $27 worth of gold.
In month 8, I will be eating a horse which ate some of my hay.
Just like the Europeans, only it will be an organic horse steak.
Squicky, guess you never knew or considered that fiat is volatile, much more so than gold. Ever hear of the Weimar Republic and the wheelbarrows of fiat required to buy a loaf of bread, if only those people would have had gold. Oh yes and Zimbabway(misspelled), the list could go on if you dared to educate yourself.
Squiggy From said:
Exactly. Instead, you're an attention craving guy that gets his jollies by pretending to be a girl and trolling gold comment threads. Your avatar is a stick man wearing a diaper upside down with streams of urine spouting, fountain-like, from the holes in his head, and the real Lynette "Squeaky" Fromme, even at 64 years of age, could easily kick the shit out of you.
But hey, at least you're not a goldtard cultist.
4thStooge:
Well, you may not believe that I am a girl, but I sure most definitely believe that you are a stooge! I could not help but notice your reference to urine, above. And with the descriptive language, I suspect you are a devotee of certain watery entertainment. While I find the very idea DISGUSTING, I guess if that floats your boat, I should do you an Irish Poem:
Liquid Dates???
TheFourthStooge-ing, convinced of Gold's Powers,
Leased a No-tell motel room by hours.
For the hookers he got,
He paid in fi-at,
Accepting in trade - Golden Showers!
Squeeky Fromm, Girl Reporter
.
Not surprising you'd notice something like that. I mean, selecting as an avatar a retarded, diapered, stick man showering himself in pee tends to telegraph your obsessions.
Well, well, that is some quality projecting.
Mmm hmm, so much so that you're now writing lamericks about wee wee? Dude, you're out there.
Queefy clearly has unresolved hangups stemming from his continued bedtime incontinence.
If only his parents had beat him a little more severely, perhaps with a car aerial or a Hot Wheels® track, he might have learned a little more self control.
Sqeeky is NOT pathetic ! So there.
Just because the blog says "zero hedge" doesn't mean people won't hedge. GLD puts from those out of normal highs would have done very well into the price collapse. Makes it all the cheaper to own those ounces.
By my math if at the time one got a GLD put with nearly a year on it and out of the money by 10/share GLD, probably could have had a profit of $1000 fiatbux per contract & therefore could have easily reduced ownership per gold ounce.
It's a choice, no one else will make them for you.
Cherrypicking dates in hindsight and suggesting people should have bought put options is not all that informative. As Hillary Clinton would say, "What difference does it make?"
When Hillary, in hindsight, decided to terminate (with prejudice) her relationship with Vince Foster it made A LOT of difference. She became a senator and then Secretary of State. Good pension!
Oh, the places you'll go!
by Dr. Seuss
Conratulations!
Today is your day.
You're off to great places!
You're off and away!
You have brains in your head.
You have feet in your shoes.
You can steer yourself in any direction you choose.
You're on your own.
And you know what you know.
And you are the guy who'll decide where to go.
*******
PS - thank you Doctor.
PPS - I love gold and silver!
I gave you the thumbs up because the limerick was clever. And because you suck great (fetid bankster) c*ck.
.
...compared to a random paragraph from the 1974 congressional record.
Well, he probably is good at that.
You again. Your cutesy persona is annoying, your preoccupation with something your purport to hate likely a clinical condition, and you're wrong. Nobody, not even the hardiest bug, wants to pay $1800/oz for gold. They may be forced to someday or felt the need to in the past, but nobody wants what's coming. Get yourself an education and until then clam up.
Clever post, and funny!
Can't speak for others but I frankly don't care what the price of Au or Ag is; my hands are strong and I'm in for the long haul.
And I do love the expressions at my local bank when I wire fiat thru yon ether to a supplier of sweet sweet physical.
Every 1K that leaves deprives them of 9K in levering. I love making my 'money' count.
PS get back to us in 5 years and we'll see where we are, 'k?
Thank you rafterman! I am guessing the Gold Bubble will fully pop before 5 more years, but who knows??? On the bright side, like the commercials say, "It's never been worth nothing!" And moo cows will still be eating hay.
Squeeky Fromm, Girl Reporter
And moo cows will still be eating hay.
Yes... they will but what KIND of hay? I've raised a lot of cows, and you can feed 'em cornstalks if you have a mineral block and a protein lick available. And grass hay is pretty cheap. In season grass is close to being free.
And finally, I've yet to meet the cow with a wallet or a checking account or credit card.
That's because cows can't make out a credit ap. That stuff in your wallet and checking account is debt -- somebody else's unsecured debt at that. The credit card is debt as well, just a bit closer to home.
@SqueekyFromm
You obviously don't know the difference between a bubble and your left tit. The paper trading, ETF, and rehypothication games have warped your perception of what it and is NOT an asset over the years (probably all that TV, or maybe public education?). How the fuck anyone hangs around ZH for 2 years without understanding even the basics is beyond me, but there you are - in all your glorious ignorance. Wow.
.
C'mon, that's hardly a fair comparison. When he dresses up like a girl, his tits are labeled L and R.
increasing demand with dropping prices is NOT a bubble. If prices rose faster, maybe 3x faster and people were running to buy AND interest rates were rising, maybe then you could credibly say bubble. That's not the case.
My expectation is that dollars won't even be money in 5 years.
That leaves precious little choice for what WILL be money.
Poor Squeeky. Didn't have the wits to back up the truck in 2002-05 like the rest of us at ZH.
DSlave:
Well, housing might have been a good buy in 2002-2005. That doesn't mean it still is. Same with gold. Maybe at $400-$600, it was a good gamble if somebody figured there was going to be a scary financial crisis. BUT, the price shot up and the same dynamics might not apply. What was a good gamble in 2002-2005 may, or may not, be a good gamble in 2013. None of that matters to Gold Bugs. It's BUY BUY BUY!
Think of it like horses. If Black Booty was a good bet in the 2002 Prickness, would he still be a good bet in 2013???
Squeeky Fromm, Girl Reporter
Wow, sure can't argue with your technicals, can we?
gold = dead race horse. Solid! Brilliant!
Shit, I have no comeback for that what-so-ever.
You win this time, Squeeky troll!
No gamble - just a solid investment. Same with farm land back in 2005: it's not to flip, it's got lasting tangible value if you know what you're doing.
that our leaders and public speakers know nothing
of life and humanity is simply the best point of
reference one could ask for regarding what to do
and how to live. ignore their advice and prognostications
and the rest will come to you, naturally, in time
and for the best.
imho
Blah, blah, blah.
Who thought it would so long for the Titanic to sink. Maybe re-arranging deck chairs might have been fun. Or getting some hottie in a cabin for a little fun.
Holding gold and waiting for the moonshot is getting tired. Wake me up when it happens. I'll be at a bar whorehouse fishmarket until then.
"I'll be at a bar whorehouse fishmarket until then."
Ah, yes--drinking and fucking. YAWN. Seriously--I know macaques that are more interesting than you. Aim high!
There's plenty of gold for sale. The average investor doesn't want to buy gold, just walk into a local coin shop and it's mostly empty. That's not to say price won't go higher, but the fact is that gold shops are empty.
Not in other places on the planet. Coin shops are being cleaned out.
But hey, we just focus on 'Murika round here right? Fuck Yeah!!!
Speaking of USA on ZH many people suggest thats where the action is. And gold shops are deader than a doornail. I am a gold bug but dont see the same enthusiasm aming my peers.
In the last few years I've visited gold shops in Australia as well as a coin show there--talk about DEAD. Mark at Strand Coins in Sydney offered me 97% for bullion and operates from a tiny closet. The few others I visited were equally dead.
Bangkok several times recently. Lots of buyers AND sellers, and unlimited gold supply everywhere.
In Europe I did not discover ANY foot traffic in gold shops and in Scandinavia its basically impossible to buy gold.
People should not be so defensive when told the truth about the paucity of bullion buyers in USA and elsewhere.
You Melican buy gold in Thailand bring lotta Bhat... You get good gold, Bankok BEST gold! We sell already in plastic holders so gold not tarnish like Melican gold. We sell to Melican number ONE Thai gold - must be handled with care lest protective gold coating of coins rub off and gold tarnish and be worth less. You buy Thai gold - Best in world! How many pound you want?
Your comments show a complete ignorance of the value gold plays in Thai culture and is demeaning of Thais . Thailand is one of the leading countries holding gold as CB reserves and its hugely held by the general population.
oh yes, melican watch out for gold is tarnish! is the blobbing up 'gold' !
My perspective is from a small town in the North Okanagan Valley in BC, Canada.
Until recently gold and silver have been readily available at local and regional sources (coin & pawn shops) but in the last several weeks available inventory has been much tighter. I used to be able to pick and choose from a wide selection but now have to choose from what's available. I really like gold and silver maples but lately have settled for generic 1 oz. gold wafers, 10 oz silver bars and junk silver.
Premiums over spot are a bit higher than I remember and/or they are SOLD OUT more often than not.
I got a bobcat quarter in change back a couple months ago. It was like finding a five dollar bill. But better!
Lord, what fools these mortals be ;) ... handing out silver coins like they were worth $ 0.25 CAD
Not as empty as your comment. I buy gold and silver regularly and have yet to witness any "ghost town" at my dealers. You don't follow the market much do you?
Have you seen the lineups in China, India.....
the big money isn't buying for two reasons. One, they live in the old media echo chamber, where the heroes are government and bankers and gold promotes snickers. Two, they're greedy - an investment in actual physical metal will just sit there, there's no churn, nothing to milk: "I can buy this pile of gold, or I can keep churning this cash on HFT and various fiat schemes. I'll get the gold later when things look really bad, if that day ever comes."
Just the average Joe little guy. He is NOT buying gold. When and if that changes then price will rise.
Ummmm.... I'd suggest two possible reasons for the "little guy" not buying gold in the USA.
1. Little guys have enough trouble getting enough money to buy food and pay rent. They have no spare change to waste on a piece of soft metal unless it's lead.
A worker at a WalMart I spoke to recently earns close to top wages (for WM) and gets about $11 an hour. If that worker was like me when I got out of the service, they have about 10% "discretionary income" per payday. that 10% has to pay for all the "incidentals" they need for their household like towels, new clothes, etc. But even if that money was completely unneeded for the budget, it only adds up to $2280 a year. Now - do you think they are going to spend $1600, or even $1200 (52%) of their "surplus" on a little shiny piece of metal that will just lay in a drawer? (Not one poor person I know would be so foolish.)
In the US, over half of the people are "poor" or even destitute. Why are they not buying gold with their food stamps? :-/
2. The silver to gold ratio... currently at about 62:1... even "little guys" can do math. If they even think about gold, the ratio tells them that either gold is WAAAAY over priced, or silver is waaaay UNDER priced. In either case if you have just a little to spend you go for the value - and at the present ratio that would be silver - NOT gold. (During the US Westward expansion the ratio was 20:1. In Imperial Rome it was 12:1.) This might/probably will change - but until the ratios change you won't see "little guys" buying gold.
And besides - when I've been places where even "middle class" people talked about such things as "investing", you can be sure that whenever gold came up, the "little guys" remember FDR and what he did to the people who owned gold. And part of the reasoning was that FDR was a Socialist Democrat, Obama is a Socialist Democrat - no difference, so they expect the same treatment of anyone who owns gold.
gave a +1 but I still disagree on one key point: their wages are simply too low to make effective investments.
That doesn't mean gold is too high a price to be invested in but the working poor are out of reach.
Silver is not.
Gold is in reach for the next financial class up of wages.
...a thorough misunderstanding of the market forces
Bill Murphy from GATA isn't afraid to call it what it really is... Financial Terrorism. http://dagnytaggart55k.blogspot.com/
Financial Terrorism is when the (other) bad guys do it. When "we" do it they call it liquidity interventions or market stabilizing actions.
A financial whore by any other name remains a fiat hoe.
ZH'ers Question?
This may be off topic slightly but still very important.
My understanding is that there were changes in the regulations in the last year or so that allows "Derivatives" to move to the top of the priority chain in terms of claims when a firm goes under.
In view of the MF Global calamity, how has the ISDA (International Derivatives and Swaps Association - the group that gets to say what is a default or NOT - some great power and control here) and derivative crowd managed to move ahead of clients who have money in brokerage firms and also I hear that in a general corporate bankruptcy, unrelated to banking and brokerage firms, the derivatives assholes also enjoy a superior claim position.
I forgot where I read it, I may have suppressed it in my mind because of the shear balls they had to enact it.
Then again I could be wrong.
I think the stealing of GOLD and SILVER Positions (additional to MF and other occurrences) will enter into this in the near future. In fact this was their target all along.
You are correct, I read the same thing and had most of your thoughts about it. The reason why they did it is shadow banking. Basically half of the loan money today and half of the need for working capital of brokers is financed through repo / inverse repo today. All this extremely short term, even overnight loans. When an institution fails like Lehman Brothers did, they cut the chain of repo. That leaves open the system to a chain reaction that basically brings it all down. The reaction is as follows: Institution A fails or is rumored to fail, all institutions around it refuse to renew their repo or inverse repo contracts with them, since they were financing their need of working capital with repo, they go bankrupt. That removes the assets from the institutions that had lent to them and they are asked to provide other liquid assets to replace the failed ones, then those institutions stop being dealt with due to risk, their short term financing of their need of working capital vaporizes and so forth... The whole system crashes. To minimize the risk of the assets backing up the chain of loans in repo agreement they made derivatives go to the top of the food chain in a bankrupcy with the only goal of trying to prevent the whole system going down when one institution goes down.
But again, the problem is that people should never sign up for their assets to be used in a repo agreement or in a margin account. Most of whom do are people that have no idea that their money is being risked this way and for extremely little return. The loans are characterized as risk free, when they are not. This is creating a missallocation of risk completely unkowingly to the actual owners of the assets. This happens with money in hedge funds, mutual funds, retirement funds, etc. As the government works on trying to decrease these situations that are extreme in some cases, the loans are drying up, forcing the FOMC to QE with the consequences that I described in a post above in this same article.
A huge impact that I have not seen of this change should have been a sudden rise in the expected discount rate on the bonds of all the companies affected by these contracts since it is the equivalent of having a lot more debt having been issued with more seniority to the one you hold as bonds. This hasn't happened, I wonder how much bond investors actually understand how much more risk they are exposed to now rather than before the change... I doubt that very much... Forget about all the models previously used to calculate default rate and from there expected return...
Until next time,
Engineer
Today's gold and silver rundown:
There was a pick up in activity last night on the Shanghai Gold Exchange at 19,599 kg. And for the first time since May 2, 6,264 kg was actually delivered to the SGE.
The GLD ETF added 28,000 oz today. That, plus the activity on the SGE may explain today's $12 rally.
Open interest (OI) on the June gold contract fell by 50,158, leaving 75,526 going into first notice Friday. Overall OI fell by 24,105 suggesting that some shorts (or hedgers) covered rather than roll to August.
There is 1.642 million in registered or dealer gold. 305,000 oz stand for May and are now taking delivery. The Comex is hardly off the hook.
more here- http://winteractionables.com/?p=2863
The financial media doesn't even want to know what is really going on in the gold market. So they will buy the top when they are told what is going on and when they are told to report it. Until then, willfull ignorance, like all noobs.
There is SO much shit that gets attached to a "Legislative Bill" that gets passed that has nothing to do with the "Bill" itself that it's mind bending.
Beyond that, industry insider/lobbyists write the "BILLS" with their attorneys. 1,100 pages are dumped on a Congressman's desk, hours before a vote, written in legal language, at the same time a "deposit" is made to a secret account they can access, and they know who it's from, THEN THE VOTE.
Do they read a fucking word of it?
Guess what happens? Does it pass and do the citizens take it in the ASS?
The volume of trading at the LBMA suggests that there are a lot more (and bigger) forces at work than the ones you mention.
The entirety of the gold/gold derivatives market is largely hidden and its purpose obscure. Ignore that info at your own peril. What day traders do is likely of little consequense in the big picture. It is the willingness of the 95% of gold that never trades to move that ultimately controls the gold market.
Absolutely agree with the previous comment!!! An up arrow is not enough to emphasize its importance. Just follow the rule: "If it can happen and produces an advantage to the economic operator, it will happen" to understand what is real and what is fake, what lasvegaspersona says is possible and provides advantages therefore it is happening. The game is to have political operators in the key governments worldwide to understand how these pressures are building up.
Until next time,
Engineer
Yawner of a post. A summarization of easily accessible facts. I want to know who's short and getting physical delivery orders that they can't meet, who they called to bail them out, how high up it goes... You know, the truth!
+1000
Best comment on this story yet
Relevant to the topic and useful to keep in mind
http://www.forbes.com/sites/greatspeculations/2013/05/28/somebody-is-mes...
As a trader, I love the gold shares because of the high volatility. When you get shares moving 5% in a day, that is where I want to be as a trader. There is plenty of money to be made if you are nimble.
Gold also has a fairly consistent seasonal trade pattern which makes the gold share market somewhat predictable
http://seasonalcharts.com/classics_gold.html
The only thing that matters to me is what kind of world is on the other end of the Great Implosion that's coming.
The lunatics are running the asylum, and the present volatility, that is just snapshots of what happens in said asylum. Each force will have an equally powerful counterforce as a result.
The only chance humanity has afterwards is decentralisation, and without a centralised control, forget about fiat, or anything imaginairy.
Here's an older video, it might be a spoof (where's the mic?) but it's illustrative of the insanity: https://www.youtube.com/watch?v=-i5sDOdoFqg
The couple is most disconnected of all. The woman whining is hilarious.
Gold but especially silver, as the basis of trade, arable, non polluted land, resources, knowledge base, a stable local community, favourable geographics etc., all of that is important, but most important is a state of mind. And luck. Lot's of stupid luck.
Looks like supply has met the enormous demand from the last few weeks after the strong move down. The folks at the gold counter are not as busy and they still have gold for sale. Oh, if you haven't noticed, the price of gold is still down from where it was a few weeks ago. I can't wait for the next leg down. Will this be where the Chinese start selling the @#%$% out of it when their economy starts crumbling (pun intended)? Or will they wait until the last moment like always? I suspect millions of folks will be *(*&^^ing their pants in a few weeks. And the gold shops will still meet demand.
I visited 3 jewelry stores in Hong Kong last week. There were no gold coins, bars or 24k gold jewelries on the shelves. They had diamonds, platinum and some 12k gold jewelries. The clerks could not advise when the next delivery would arrive. There are no gold available for sale in the Far East where people still have plenty of cash. In the west, the masses are either broke or invested their money in various paper instrucments. That is why you can still buy physical gold in the west where there hasn't been much demand for the physical metas at all.
Then why doesn't some enterprising Chinese put some on the next airplane in Los Angeles bound for Hong Kong? Rocket science? I think not.
'
'
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Tyler!
Can you explain us sclubs, how this money, as the banks have it, and are sitting on it, can never start to lend it out as this will cause inflation or hyperinflation, so, what happens?
How do we get around the inflation/hyperinflation issue when the banks ultimately have the money and not the FED. What can the FED do? How do they stop the banks?
I'm not even smart enough/versed enough to ask the question I think needs askin', but you'll figure it.
What's left of my inquirin' mind needs to know!
It seems all roads lead to massive inflation/hyperflation.
•?•
V-V
I keep talkin at ya boy but you ain't listenin'!
The BANKS don't HAVE the money. The FED has it all!!!
From: http://www.scribd.com/doc/87374621/Bernanke-Lecture-Four.)
“Now, you might ask the question, well, the Fed is going out and buying 2 trillion dollars of securities – how did we pay for that? And the answer is that we paid for those securities by crediting the bank accounts of the people who sold them to us, and those accounts, at the banks, showed up as reserves that the banks would hold with the Fed. So the Fed is a bank for the banks. Banks can hold deposit accounts with the Fed, essentially, and those are called reserve accounts. And so as the purchases of securities occurred, the way we paid for them was basically by increasing the amount of reserves that banks had in their accounts with the Fed.
Did you get it that time?
Boy's as sharp as a bowling ball, I tell ya.
FREEGOLD says GOLD is NOT MONEY!
Here’s a direct quote from FOFOA:
Yes, of course gold is NOT money! The true and
pure concept of money is basically credit...As I
wrote in Moneyness: 'Money is the referencing of
the thing, not the thing itself. As FOA said, money
is 'a value stored in your head!' Money is not
something you save. 'Money in its purest form is a
mental association of values in trade; a concept in
memory not a real item…This is the money
concept, my friends.’
Sincerely,
FOFOA
September 19, 2012 4:49 PM
"Gold is money, everything else is credit."
--J.P. Morgan, 1912
"Fiat is actually more honest than a gold standard."
--FOFOA, Thursday, July 28, 2011
Freegolders say they are AGAINST gold as money, that gold IS NOT money.
As per above, Freegold says that money is just something in your head and “NOT A REAL ITEM”!
FOFOA is on the record saying, “worthless tokens” are the BEST money there is!
Who is AGAINST gold or honest money and FOR “worthless tokens” or fiat money?
THE BANKERS.
Fregolders say that gold is neither commodity nor money. What kind of bullshit is that?
Freegold=Freebullshit
Another: let's see where we are going (follower)
Art: let's work to make where we are going just (leader)
Posted by moneymaverick to FOFOA at May 13, 2011 2:09 PM
Again, I'm not doing this for YOUR benefit. I'm only protecting the innocent from your devious way of promoting banker-issued fiat money by posing as a pro-gold organization. Sharing information is not harassment. Obstructing the truth is unethical, to say the least.
RECENT WORLD HISTORY
For the last sixty years or so, the few lived at the expense of the many. THIS was the basis of YOUR prosperity - NOT the advent of fiat money. The world was devastated by two world wars. The only real manufacturing base left was that of the US after WWII. So gold flowed to the US shores during WWI for security reasons; and, after WWII, the (western) world turned to the US to buy the manufactured goods and the food it needed. We then had the advent of the petro-dollar as you know, and we started spending money we didn't have. We bought, blackmailed or killed world leaders everywhere to ensure that our puppet dictators would force their peoples to sell their goods and services to us Americans practically for nothing: fiat unbacked US dollars. (A few million paper dollars printed out of thin air to one single dictator is just "the cost of doing business.")
So your prosperity was based on other peoples’ tears.
GOLD NOT MONEY BUT ONLY SAVINGS?
"...saving specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher." (From Wikipedia)
Gold did not preserve your purchasing power at least since the beginning of the '80s. (Adjusted for inflation, it should be about $2500 now.) GOLD IS SAVINGS you say? Plus, you Freegolders insist that gold is neither commodity (investment) nor money (traditional savings vehicle).
What is gold then?
If gold is not money, how can gold be "savings" as savings implies STABLE value denominated in currencies?
FOFOA is just playing adolescent word games that have no place in a serious discussion. OF COURSE GOLD IS MONEY! It's been money for 1000's of years and FOFOA knows it. JP Morgan was right FOFOA is wrong.
Most people when they realize how wierd the FRB system is, would agree with JP Morgan. Or as Henry Ford put it "It's a good thing the American people don't understand the modern banking system, if they did there would be a revolution before morning.
If the governments cooperate to manipulate gold WITHOUT CARING ABOUT GOOD OR BAD MONETARY EFFECTS, they govs can do that forever by.......confiscating gold.
FDR did it, central banks are doing it right now. They've been buying gold.
Central bank gold buying = Gold confiscation.
There is an ongoing confiscation occurring. Stop dreaming. That's what's happening.
If all central banks cooperate, gold has no chance. If cooperation collapses, gold becomes emperor.
SOME central Banks have gold, and SOME central banks have rehypothecation certificates... The US FED is probaboly awash with the certificates.
the Fed already testified they are locked in with certificates legally declaring gold's value, for them to reclaim, at 42 USD per ounce.
I think that's worth remembering.
You seem to overlook the fact that the BIS is multinational, and the paper vs physical gold tussel is managed by strong hands, shaking out the weak.
There will be no confiscation of gold of the sort seen in the past because it serves no practical purpose.
Interesting read, and well known to informed gold and silver investors.
Next up: Mrs Watanabe. I'm looking forward to that show.
By the end of the first paragragh I know this article is crap.
"analyst" my ass.
You can't analize something that is corrupt to the core.
You just know corruption when it smacks you up side the fucking head,and thats what the gold market is...
Corrupt to the core with the USA Exchange Stabilization Fund in FULL ACTION all the time.
Jack Joo Lew get to do what he want to ...to you...
Bend over.
When all the people in China and India refuse to produce what the majority of world's population needs and uses and consumes on a daily basis...and...
when they and their governments quit buying gold on a regular basis I will stop believing that they plan to take the reserve currency crown from the West.
They are waiting patiently for us to destroy ourselves. They know our paper is worthless.
When they have the major hand they will unpeg their currencies and the price of gold in USD, Euro, Yen will increase by about four times(I hope not more) as we reset post collapse.
Imagine having to buy oil and finished goods in Chindian coin.
I wish us well but not one major idea Marx and others put forward has not come to pass. We are in a new era that is socialist and based on actual production and the rewards for production.
Printing money and a welfare systen based on printed money isn't socialist. Sharing the fruits of production equally is socialist.
If we don't blow ourselves off the face of the planet, most of us will live to see a new world with a more human face.
The psychopaths are burning themselves out. They will never tolerate the light. This is a mopping up operation...just a few more to go. They are alien, they never tolerate criticism.
Name them. Call them out.
The Tylers were doing that, someone, something got to them.
Remember?
Have no fear.
Bill in Tomahawk
Despite this strong demand for physical gold, ETFs saw outflows of 176.9 tonnes in Q1 2013.
Despite?? No shit, they have to get the gold from somewhere if they want to sell it.
There's been a lot of joking in recent years about 'gold-related boating accidents.'
Here's a thought.
The world has a tiny Elite of families who's Control Of Everything(tm) depends on the continued existence of privately owned central banks, summoning up fiat currency out of nothing, then lending it at interest to everyone else including governments. A system to which gold-backed currency and actual physical gold currency are the natural predators.
From the Elite's point of view that concept, of allodial specie currency, has to be suppressed. Primarily by continually working to smear the public image of gold and silver, including by manipulating the paper gold price to make precious metal appear a very risky store of buying power. But this propaganda and manipulation is continual hard work, and there's always a chance of things going wrong in a big way. Resulting in a return to gold-backed money, interruption of their carefully maintained Control Of Everything(tm), and possibly even scenes of Elite heads on pikes.
What if the Elites had decided they needed a more permanent and failsafe assurance their fiat banking scam could never be overturned? What if they decided this was Really Important, God's Work(tm) and required Serious Sacrifices(tm)? How could they achieve that? The traditional 'kill the competition' would certainly occur to them (seeing as how that's the Elite Families' standard operating method), but how do you kill gold?
It's often asked "where is all the gold?" Most of it hasn't been seen for decades. The central banks assure us they have it, sitting safely in their vaults, but the public are not allowed to inspect it. The gold bugs insist that no, the bankers lie, and most of the central bank gold stocks have been sold off to multitudes of buyers. But it's still around, here and there.
The strange thought I had, was what if the central bank owners had years ago decided to have a 'boating accident' (for real) with most of the gold? What if it isn't 'sold off', but is actually now at the bottom of the Marianas Trench, or somewhere else it can never, ever be recovered from?
What do the Elites covet more; Gold or Control?
I'm sure if forced to choose, the Elites would realise they had to go with Control. Sorry Mr Gold, things just didn't work out.
In which case dumping most of the world's gold into the deepest point of the ocean would actually make a lot of sense.
Officer, I'd like to make a missing persons report, for about a hundred thousand tons of gold. May have been last seen on an ocean cruise.
Your interesting argument is backed by the records of gold having been dropped from entire ships for war-time payments throughout the centuries. AND standing legal claims that if anyone else should go to the extreme expense of finding & lifting that gold, they can't keep it unless NO one else lays a (national) legal claim to it.
Understanding the gold market dynamics...
Physical is in the driver seat. Real simple. You have all weekend to get your hands on some physical. Sianora bitchez! If you didn't figure out the 2007 cross today then you suck!