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Currency Wars Intensify As Russia Buys 18.6 Tonnes Of Gold In June

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Today’s AM fix was USD 1,307.50, EUR 972.84 and GBP 770.39  per ounce.

Yesterday’s AM fix was USD 1,305.00, EUR 971.20 and GBP 768.55 per ounce.

Gold climbed $2.30 or 0.18% yesterday to $1,305.10/oz and silver rose $0.12 or 0.58% to $20.62/oz.





Gold rose 0.4% in London this morning after gold in Singapore traded sideways overnight. Futures trading volume continues to increase and was almost double the average for the past 100 days for this time of day, Bloomberg data shows.


Gold in U.S. Dollars - 50, 100, 200  Simple Moving Averages (Thomson Reuters)

Silver for immediate delivery rose 0.8%  to $20.73 an ounce in London. Platinum was 0.1% lower at $1,486.82 an ounce. Palladium gained 0.3% to $883.63/oz and remains close to a 13 year nominal high of $889.75.

Geopolitical tension in Europe and in the Middle East is supporting gold. Israel's military pounded targets in the Gaza Strip on Tuesday after Prime Minister Benjamin Netanyahu said his country should prepare for a long conflict in the Palestinian enclave, squashing any hopes of a swift end to 22 days of fighting.

Gaza residents reported heavy Israeli bombing in Gaza City. Israeli aircraft fired a missile at the house of a Hamas Gaza leader and flattened it before dawn. An Israeli military spokeswoman said 70 targets were struck in Gaza through the night. At least 30 people were killed in the assaults from air, land and sea, residents said, after a night of the most widespread attacks so far in the tiny enclave.


The new sanctions are set to inflame relations further. They are on “key sectors” of Russia’s economy, U.S. Deputy National Security Adviser Tony Blinken said yesterday. Russia also signaled possible retaliation, announcing yesterday that it may ban imports of chicken from the U.S. and fruit from Europe because of concern about contamination.

Futures options expiration is over but we are not out of the woods yet and gold and silver could see more volatility this week ahead of key reports on gross domestic product on Wednesday and employment data on Friday. The Federal Reserve's chief policy making committee meets today and tomorrow and this could have another short term impact on prices.

Russia, Kazakhstan, Kyrgyzstan and Tajikistan Buy Gold - Bye Bye Petrodollar
Russia continues to aggressively accumulate gold reserves. Its gold holdings increased again in June as the crisis in the Ukraine and relations with the West deteriorated.

The Russian central bank officially increased its gold holdings by 16.8 tonnes to 1,094.8 tonnes in June, the IMF's International Financial Statistics report showed. In ounce terms, Russia increased its gold holdings by some 500,000 ounces, to 35.197 million ounces in June from 34.656 million ounces in May.




Russia recently became the world's fifth largest bullion holder after the United States, Germany, Italy and France.

Importantly, China’s gold holdings, the world’s biggest store of wealth buyer of gold, haven’t been updated since March, 2009 and remain at just 33.89 million ounces or 1,054.1 tonnes and just 1% of their huge foreign exchange reserves. More than five years later, it is likely that China’s reserves have doubled or trebled as they quietly corner the global physical gold market.

It is important to note that there remain doubts as to the integrity of the gold holdings of the U.S. and concerns that other countries national gold reserves could be encumbered, loaned or sold in the market. Indeed, the Bundesbank is having grave difficulty in having its gold reserves returned from the Federal Reserve in New York.

So far in 2014, Russia has now bought substantially more than their entire annual gold production of nearly 1,500,000 ounces.

Russia was not the only central bank to diversify foreign exchange reserves, primarily held in dollars, into gold. Allies of Russia also bought gold in June. The central banks of Kazakhstan, Kyrgyzstan and Tajikistan, all Russian economic and military allies all accumulated gold in June.

Currency wars are set to intensify and the buying by the former Soviet states is another manifestation of this.

Russia’s foreign reserves fell $39 billion to $472 billion in June, data from the Russian central bank shows. Gold now accounts for 9.3% of the country’s reserves, according to the World Gold Council substantially less than the percentage of gold in fx reserves of the other leading gold owners.

Greece, Serbia, Mexico and Equador also diversifed and increased their gold reserves in June.


Turkey increased its holdings to 16.491 million ounces from 16.172 million ounces in May. It accepts gold in its reserve requirements from commercial banks and as payment from other sovereign nations such as Iran.


Germany, the second-biggest gold holder, lowered its holdings by a tiny 1,000 ounces to 108.805 million ounces from 108.806 million ounces.


Gold advanced the most in four months in June as fighting in Ukraine to Iraq and Israel boosted demand for a haven. Hedge funds and banks almost doubled net-long position in gold during June, U.S. Commodity Futures Trading Commission (CFTC) data show.

Gold’s safe-haven appeal is being driven by heightened tensions between Russia and the West over Ukraine and increasing concerns of financial and economic war and indeed of actual war.

Geopolitical risk in June likely prompted some central banks to further diversify their foreign exchange holdings and buy gold which is used to hedge against geopolitical, currency and credit risks.

Reserve Currencies In History - Dollar's Demise Cometh

Central banks continue to be buyers of gold at these attractive price levels. As sanctions, economic war and currency wars intensify we expect Russian and Russian ally buying of gold reserves and selling of dollars to intensify. Aggressive buying of gold and particularly silver by Russia will likely lead to defaults on the COMEX gold and silver futures exchanges and potentially an international monetary crisis.

See important guide to Currency Wars here Currency Wars: Bye, Bye Petrodollar - Buy, Buy Gold


 

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Wed, 07/30/2014 - 16:53 | 5024298 Quaderratic Probing
Quaderratic Probing's picture

Buying gold to prop falling Rubble. Past failed currencies had gold base except British and it was Silver base

 

 

 

 

Wed, 07/30/2014 - 14:29 | 5023535 SmittyinLA
SmittyinLA's picture

Putin: "Damn sanctions, gotta do somethin with all those excess US dollars, damn looters running America are leaving cash on the table everywhere like we'd buy AMZN or Crocks with our surplus" 

Wed, 07/30/2014 - 14:16 | 5023483 novictim
novictim's picture

What will people do when they have finally realized that they purchased a total of 36million ounces of gold of the 22million ounces of gold that ACTUALLY exist?

 

Wed, 07/30/2014 - 13:42 | 5023315 walküre
walküre's picture

A team of German researchers at the University of Dortmund is in its final stages of a project to scan saliva samples rapidly for signs of a viral infection. The key component of this device is a gold plate which if I saw this correctly, looks to be somewhere between 1/8th and 1/4th of an ounce of pure gold. Device itself is about 2 x 1 ft and can easily be installed at airports and other points of entry. Not to mention clinics and doctors offices. That's only one potential industrial application for gold with a good growth opportunity.

The suppression of commodity prices in general by way of trading a "futures" contract on paper or digital is only possible as long as the currency behind these transactions has merit.

Who gives a flying fuck what the "paper" price of any commodity is when you can't exchange the currency for any of the hard asset commodity? A price board in Chicago or elsewhere can be programmed to show any price. Does that mean that I would part with my holdings for that price? Absolutely not! The world is awash in worthless paper. How much longer will my coin and bullion dealers have supplies in exchange for fiats?

Apples cost 4x as much as two years ago. There's no shortage of apples and the demand hasn't exploded either. But the cost of harvesting apples must have gone up as well as the cost of transportation. I'm buying less apples but I'm still buying apples.

Wed, 07/30/2014 - 18:17 | 5024653 Dublinmick
Dublinmick's picture

http://newsoffice.mit.edu/2009/gold-cancer-0504

It has long been known that heat is an effective weapon against tumor cells. However, it's difficult to heat patients' tumors without damaging nearby tissues.

Now, MIT researchers have developed tiny gold particles that can home in on tumors, and then, by absorbing energy from near-infrared light and emitting it as heat, destroy tumors with minimal side effects.

http://web.mit.edu/newsoffice/2009/gold-cancer-0504.html

 

Come to the center of the earth, and there you shall find the Philosopher’s Stone – Basilius Valentinus (Fifteenth Century Alchemist)

 

http://www.bibliotecapleyades.net/esp_cayce05_02.htm

Back fifty years ago Cayce prescribed gold chloride for a multitude of ills. Asked once what gold chloride would cure, if anything, he characteristically replied:

 

“Chloride of gold—any condition wherein there is any form of the condition bordering on rheumatics, or of rejuvenating any organ of the system delinquent in action.”?A report on the rejuvenating powers of gold, confirming all and more that Cayce held out for it, appeared in the Washington Star, September 5, 1965.

 

“Doctors here,” it began, “are fashioning the fanciest bandages ever—out of gold leaf. ‘Nobody knows why,’ one said, ‘but damn it, it works. It seems to relieve pain and stop the oozing from severe burns and skin ulcers and sores. Best of all, it apparently speeds the wounds’ healing.’ Patients, who might ordinarily heal only after weeks in a hospital, the doctors reported, make such rapid progress that they were sometimes able to continue with their jobs while the gold did its repair work.”
The experiments were the work of Drs. John P. Gallagher and Charles F. Geschickter, working together—and their report was originally carried in the Journal of the American Medical Association.Gold was also used effectively in treating patients at the Hebrew Home for the Aged in Washington. As the press reported:

“Thin sheets of gold have given spectacular results when applied to big, open wounds and sores. Dr. Naomi M. Kanof, a dermatologist, applied the gold to long-standing, deep and open skin ulcers resulting from injuries, diabetic and varicose conditions, and from the deterioration known by the mild name of bedsores.”

“In private practice here,” the report continued, “the gold leaf has been used even on gangrenous ulcers and, in at least one case, on an open wound from X-rays used in treating another condition.”

Both gold and platinum have been used in studies since the 70s in in treating cancers. Medical centers in Maryland have used it. Nano gold around a cancer site can kill it, so gold is not known as the king of minerals for nothing. It also effects the pineal gland by strengthening it and conducting electromagnetic energy and silver/copper is known for this as well. Gold does not kill every known virus and bacteria however as does silver. The process is the same for monotomic gold which also is very expensive. Platinum is in this same category and even more expensive. Copper has some of these same qualities and for the moment is not as expensive but the price is sky rocketing and China is buying up many of the mines world wide.

There is a reason why both India and China have used these minerals to drink from since time immemorial almost. The monks in the Potala use bronze frying pans which probably have a little gold and silver thrown in the melting process. They don’t do it just for show or monetary value. These minerals collect in the brain and the pineal gland. They transfer energy similarly to their use in computers. The brain is in effect an organic computer and both it and the pineal gland are instruments known to monks as a vehicle leading toward cosmic consciousness or enlightenment. It is one of the many reasons we seldom encounter anyone in the west whom could be described as enlightened.

Wed, 07/30/2014 - 11:49 | 5022806 atthelake
atthelake's picture

When America tanks, Americans will starve and freeze because we are not prepared.

 

Side note. Something happened to this site this morning. Seemed minor. Don't know what it was.

Wed, 07/30/2014 - 10:11 | 5022388 Puncher75
Puncher75's picture

For a guy in the gold & silver accumulation phase, the 4% fake GDP is fantastic news. 

Wed, 07/30/2014 - 10:11 | 5022385 hedgiex
hedgiex's picture

BRICS have already put in place their own infrastructure that shall have their own fiat money to keep trade flowing among themselves, This is Round One.

Round Two - They need time to adjust their investment flows and what a better defense than to convert US$ debts back to real assets in US.

(Some of the snake oil salesmen are also telling you this and the numbers they show you are not totally fabricated. What they do no tell you that these Creditor Nations are not interested in paper but the real underlying assets.

Some Economists will tell you that they are also caught and cannot sell Treasuries without hurting themselves. True but who is saying that they are flogging Treasuries into the markets and also that their valuation of $ is market based in their divestments.

 

Wed, 07/30/2014 - 04:17 | 5021524 Jack4952
Jack4952's picture

With today's RIGGED markets and the supression of gold prices by "paper gold" (as ETFs), I doubt if anyone knows the true VALUE of physical gold. The only approximation of gold's true price is the price paid upon delivery of the physical gold.

The rest is all bullshit.

 

Wed, 07/30/2014 - 08:26 | 5021849 NEOSERF
NEOSERF's picture

You nailed it.  The value of anything is unknown in this Central Bank bizarro world...think your house is worth $400K...it is not and is worthless in another downturn.

Wed, 07/30/2014 - 08:24 | 5021834 LawsofPhysics
LawsofPhysics's picture

The game is and has always been about maintaining power and control over real resources, but especially energy.  All economies require energy available for consumption in order to actually do anything.  Energy available for consumption (not stored) is what it is.  I expect the world will begin paying significantly more on a per calorie basis going forward.  The math is what it is...

Wed, 07/30/2014 - 06:30 | 5021644 Farqued Up
Farqued Up's picture

In the 1970s I read that historically one ounce of gold would buy a nice suit on London's Seville Row. Today the price is $3,000 to 5,000, and of course they go up to around $10,000.

If the analogy still holds, I'd say $4,000 would be a good guess, however, a line cannot be formulated from a single data point. Even if wrong, take a deep breath and it will blow past that value in no time with this bunch of fools leading us over the cliff.

Wed, 07/30/2014 - 14:18 | 5023492 TeethVillage88s
TeethVillage88s's picture

Can we extend the Analogy:

One OZ of Gold in the 20th Century could always buy a high quality Gun OR a Good Suit?

Wed, 07/30/2014 - 14:38 | 5023579 p00k1e
p00k1e's picture

Decent suits are buy one get one free.

Kenneth Cole or Calvin Klein - $649.00 (for two of them).

http://www.menswearhouse.com/mens-suits

 

 

Wed, 07/30/2014 - 13:07 | 5023170 Libertarian777
Libertarian777's picture

that whole '1 oz of gold buys a fine suit in Roman times and today' is the most stupid analogy i've ever heard.

1. in Roman times to ship silk, leather, wool etc would take weeks if not months

2. to weave cloth in Roman times took manual labour, no automation at all

3. to cut cloth required manual cutting, no machines and certainly no efficient manufacturing processes

Factor in 10,000+ other innovations since roman times (order automation, world markets, specialization in manufacturing etc) and comparing the two is near impossible. Unless if you subscribe to the fact that human productivity to produce a suit has not increased in roman times, then we should ask why there are so few farmers today.

 

 

Wed, 07/30/2014 - 13:59 | 5023388 p00k1e
p00k1e's picture

You are correct and it goes for any silver analogies.

If the person you are discussing values with is reasonable, you tell them we have a 2000-year-old benchmark for silver. 

Back when Jesus was capped – over 2000 years ago - 30 pieces of silver would be a brownfield lot on the outskirts of town.  Today, one can have choice lots in Detroit for $1.00. 

Potter’s Field was an old strip-mining site. 

Wed, 07/30/2014 - 13:28 | 5023264 walküre
walküre's picture

Then an ounce should buy you multiple decent suits because cost of shipping and production is lesser with increased efficiency.

Either way, gold is way undervalued when SHTF and in terms of measuring in civilisations, we are close to the BIG ONE.

Wed, 07/30/2014 - 03:18 | 5021471 daedon
daedon's picture

As usual, wiith news like this, gold will surely drop like a rock tomorrow morning.

Wed, 07/30/2014 - 00:51 | 5021281 Freddie
Freddie's picture

Dr. Jim Willie says that China and Russia have huge reserves.  Russia supposedly has an amazing amount.  I wonder how the oligarchs did not steal it?   The USA has nothing.

Wed, 07/30/2014 - 08:38 | 5021892 Monty Burns
Monty Burns's picture

Bring it on baby, crash the dollar.  This isn't anti-American because ultimately the worst losers in all of this are the ordniary American people.....the longer the Pozi lasts the more traumatic the Great Rest will be.  At which point I hope to see banksters and the crooks in Congress swinging from lamp-posts.

Wed, 07/30/2014 - 00:45 | 5021273 old felix
old felix's picture

The allocation of a reasonable portion of our assets to precious metals and crypto currencies is the act of TRUE patriots.

I think:

gold should not be held by any central bank but rather by the people of that country and if they are armed then it seems unlikely that it could be taken by force.

on a long enough time line only governments and corporations survive. Corruption in government and lack of liability in corporations degrade what might be a mutually beneficial relationship with people.

it is the other people in this world to whom we owe our loyalty and good wishes, not to governments and corporations. Governments and corporations only deserve to exist if they serve people over the long term. That does not currently seem to be the case nor does it seem likely to change.

it is like the game Monopoly. It is fun at the beginning when everyone has money. But by the end of the game all the players have left except one. The only way to get back to the beginning is to divide the money among the players again.

people need to start a new game and precious metals and crypto currencies are an important element of that. People should be encouraged to accumulate them not central banks.

I am encouraged by the apparent diversification of gold ownership but I am distrustful of all central banks.

Wed, 07/30/2014 - 00:18 | 5021231 Captain Jack Sparrow
Captain Jack Sparrow's picture

HI all, I want to purchase physical gold through my super fund but I'm not allowed to keep this in a safe a my house due to Australian legislation.  My only option to buy from the mint and have it stored in their 'independent' vault.  Apparently, my gold will be separately identifiable.  Do you think this is safe and I would be able to go and take posession at any time?

Wed, 07/30/2014 - 07:37 | 5021728 sherryw
sherryw's picture

According to the mint, yes! Check out Bron Sucheki's website: gold chat. He works for the mint and has some great commentary posted.

You could also buy Perth mint gold on the ASX. They are open calls on gold and are redeemable.

Wed, 07/30/2014 - 05:40 | 5021597 fel.temp.reparatio
fel.temp.reparatio's picture

If by 'Australian Legislation' you're referring to Part IV of the Banking Act, then that was suspended in 1976...

http://www.perthmint.com.au/info-historycontrols.aspx

Wed, 07/30/2014 - 05:10 | 5021566 Jack4952
Jack4952's picture

As the old saying goes, "If you do not have it in your possession, then you do not own it."

What you are saying is that the Australian government could, at any time it wishes, amend that legislation and SEIZE your gold stored in those "independent vaults".

My advice (for what it's worth):

1.) Travel to a nearby country and buy some gold (preferably gold Canadian Maple Leafs, which are 99.99% fine gold; as opposed to Ameican Gold Eagles which are only about 91% gold) Then bring those coins back with you in your baggage, mixed in with a lot of other "normal" coins - preferably from several different countries. Most likely, even if your baggage is searched, the gold coins will be overlooked at Customs. (You can look up the purity of ALL major gold and sivler coins on numerous web sites. BEWARE, however, since some web sites will sell a 1-oz gold Canadian Maple Leaf and a 1-oz American Gold Eagle for the SAME price, even though the American Gold Eagle contains far LESS gold.)

2.) Buy gold jewelry, BUT insist on having its purity tested by an independent laboratory before you pay. Insist on a signed letter from the seller explicity stating the weight and gold purity of each item - he will know because he ceratinly had it tested BEFORE he bought it! (A legitimate seller will agree to the your payment money being held in an "escrow" account, which will be released to him ONLY if the weight and gold purity from the lab match the figures in his letter.)

3.) Buy SILVER coins issued by well-known mints (Canada, Australia, etc.) through trustworthy vendors, preferably via the Internet. The weight and purity is public knowledge, so you know exactly what you will be buying.  Avoid local coin shops, etc. since they will over-charge you! (After all, they are in business to make a profit.)

OR

4.) The least reliable way is to buy gold jewelry and test it yourself. THere are many "testing kits" for gold purity sold on the Internet and in specialty stores (such as coin dealers), but these kits yield only a RANGE of possible purity and are therefore not all that reliable.

5.) The absolute WORST way is to buy pre-1933 U.S. gold coins, since these were only 90% gold maximum - pluse the seller willcharge you a "premium" because they are "antique" coins. Do NOT fall for that nonsense. GOLD is GOLD; and when the SHTF, no one is going to care  that your coins are "antiques"! All they will want to know is the weight and purity of the gold.

6.) Do NOT but other precious metals such as platinum or palladium. I am assuming that you are not a multi-millionaire, bur rather an everage person who wants to have REAL money in the event of an economic catastrophe and currency collapse. During such a crisis, do you think that you be able to actually buy anything with platinum or palladium????? What does the average man, from whom you will want to buys goods, know about platinum or palladium? It might be damned aluminum for all knows!!! He will recognize as genuine a gold or silver coin issued by the Treasury of a major country.

Personally, under such circumstances, I would accept ONLY such gold and silver coins. Forget the gold and silver bars! How could one know if they were real or not, much less their purity?

Wed, 07/30/2014 - 08:41 | 5021907 Monty Burns
Monty Burns's picture

"If you do not have it in your possession, then you do not own it."

Correct. and that's why I find it surprising to see Germany listed as the 2nd largest 'holder' of gold.  Does this include all of the stuff the Fed is going to give back in 2055 or whatever?

Wed, 07/30/2014 - 08:39 | 5021897 GrinandBearit
GrinandBearit's picture

1 ounce of gold is still 1 ounce or gold.  You .9999 purity guys make me laugh.

Wed, 07/30/2014 - 13:11 | 5023186 Libertarian777
Libertarian777's picture

yep, people are dumb sometimes.

a 1oz Canadian Maple weighs less overall than a 1oz American Eagle.

Both contain 1oz of gold. (although the maple is .09 better).

The American Eagle is more durable.

Krugerrands are 'crown gold', and only contain copper/gold (not silver/copper/gold like the AE).

 

And mix your gold coins with other coins and hope they overlook it? A gold coin will shine through like nobody's business. Unless if it was significantly dirty or damaged (circulated type condition). If so then you've just lost your premium on the coin. May as well buy industrial gold then.

Wed, 07/30/2014 - 13:36 | 5023292 therover
therover's picture

Lib...in the example of mixing in for instance 1oz Maple Leafs with other coins, can the 1oz Malple Leaf with it's 50 Dollars stamped on it, be considered Candian currecny, and hence possibly not subject to confiscation ?

Wed, 07/30/2014 - 18:00 | 5024560 Nage42
Nage42's picture

The Maple used to be touted on the Mint site as legal tender, but this info is hard to find.

 

I'm questioning via channels now, and have requested a written clarification.  I'll report to ZH, Casey, and IM on reciept of authoritative info.

 

It _should_ be treated as a financial instrument with face value if it is legal tender.  Singapore customs was rather vague on this, but I exited Sing and entered Japan with 21 Maples, Sing guy wanted to see them, but waved them through when he saw they were Maples.

 

So, stay tuned

Wed, 07/30/2014 - 08:26 | 5021843 Latitude25
Latitude25's picture

You need an education in gold bullion coins.  The AGE contains the SAME amount of gold as a Maple leaf.  1 oz.  In the AGE it is simply alloyed with Cu to make it more durable.  Hence the AGE weighs more and is larger.

Wed, 07/30/2014 - 13:08 | 5023171 kikk
kikk's picture

No they are not.

An American Eagle weighs 31.1 grams (1 troy ounce) and is 91.6% pure

A Canadian Maple weighs 31.1 grams and is 999.9% pure.

Price is about the same but 8 or 9% less gold in the AGE.

Wed, 07/30/2014 - 02:39 | 5021417 83_vf_1100_c
83_vf_1100_c's picture

Buy 24kt jewelry. like chains. Gotta be some way to beat their system.

Wed, 07/30/2014 - 09:55 | 5022295 eishund
eishund's picture

Good idea. We can use the chain as a garrote when they come.

Wed, 07/30/2014 - 14:35 | 5023564 SmittyinLA
SmittyinLA's picture

you need rapper chains for that

Wed, 07/30/2014 - 08:43 | 5021914 GrinandBearit
GrinandBearit's picture

I've never seen any 24kt jewlery.   22kt, yes.

Wed, 07/30/2014 - 00:48 | 5021276 Freddie
Freddie's picture

Do you think this is safe and I would be able to go and take posession at any time?

Sadly - no.  This is doubly sickening because Oz makes a bundle off of minerals including gold.  You have the same psychopaths running the show that we do.  NZ is probably worse with zio Bob Key.

Wed, 07/30/2014 - 01:19 | 5021310 Captain Jack Sparrow
Captain Jack Sparrow's picture

ok so what do I do, should I buy gold futures?  Or will futures crash when people realise there isn't enough physical gold to support the paper gold?  Aren't futures only based on what the price will be?

Wed, 07/30/2014 - 06:30 | 5021645 Jack4952
Jack4952's picture

"Paper gold" (ETFs or "futures") are mere PROMISES to pay you in gold later. It is mere paper (or more accurately, digits stored in computers) and its true VALUE is the value of that paper.

The folks selling this "paper gold" do NOT even need to actually own any physical gold to back up their promises. For example, if I were a registered trader, I could sell you a "futures" contract in which I would promise to provide you with one Trillion tons of wheat in 3 years, even though I currently owned NO wheat and currently had no money to buy any wheat. That "wheat futures" is merely a PROMISE - so you would be betting on the possibility that I will be able to obtain that wheat in 3 years. BUT what if after 3 years you come to me for the wheat and I have none - and in fact I have no assets at all. What would you do then?

It is estimated that the amount of "paper gold" exceeds the entire world's physical gold supply by a factor of at least 200 !!!! That means that if there was a currency collapse and all the holders of this "paper gold" tried to obtain their physical gold, a MAXIMUM of less than one-half of one percent (0.5%) of the "paper gold" could be redeemed for physical gold. Further, that presumes that ALL current holders of physical gold would be willing to sell their physical gold! Hardly a plausible scenario!

At best, in exchange for your "paper gold", which would skyrocket in "value", you would receive an  enormous amount worthless paper currency.

If physical gold and silver are not an option for you, far better to buy and store other REAL things that people will want and can actually use: food, tires, ammunition, medicines (especially antibiotics), gasoline, kerosene, 5-gallon water containers, cigarettes, and whatever else you can think of. Simply think of what necessities YOU would need to survive if suddenly paper currencies became worthless - then pick a few you think most important and stock up on them. (You might even decide to keep them for your own use, should the crisis last long enough - so in fact, you not only lost NOTHING, but instead bought those items a discount prices as compared with post-crash prices.).

Wed, 07/30/2014 - 18:15 | 5024643 Captain Jack Sparrow
Captain Jack Sparrow's picture

Thanks for all the info guys.  I'm an accountant so I have a good understanding of economics and I'm starting to see the writing on the wall with US dollar collapsing.  It's simple economics the more currency you print the less value it has.  A collapse of the US dollar would create waves around the globe so precious metals are the hedge.  Australian law doesn't let you personally hold any investments your super funds owns in your house.  This includes precious metals, artwork, collectible cars etc.  The reason is because you are receiving a benefit by hanging the artwork on your wall at home and your not supposed to get a benefit from your super fund until you retire and draw a pension.

Therefore my only option is to buy from a bullion dealer and pay to have it stored in a vault somewhere.  I will try and find an independent storage business that the government doesn't know about so they can't steal my gold when everything goes pear shaped. 

Thanks again.

Wed, 07/30/2014 - 12:33 | 5023014 JailBank
JailBank's picture

Why don't the Ruskies just buy 1 million oz in futures and demand delviery? If you want to show folks what is going on behind the curtain I think they could do it.

Wed, 07/30/2014 - 13:13 | 5023200 Libertarian777
Libertarian777's picture

when you're accumulating, you WANT a suppressed price.

Wed, 07/30/2014 - 02:59 | 5021444 MBB
MBB's picture

Buy  Kruger Rands and other gold and silver coins and/or 18carat gold jewellery. You got to stay one step ahead to beat the system.

Tue, 07/29/2014 - 23:54 | 5021188 Never One Roach
Never One Roach's picture

PALL looks a little high but slv, gld, and plt still look like serious bargains.

 

BTW, has anyone else notcied Ruger Arms has plunged from it shigh of about 85 down now to about 57. Interesting. Has a 3.2% yld. Anyone research it? Research and number smkae my head hurt or I would do the work.

Wed, 07/30/2014 - 14:40 | 5023591 SmittyinLA
SmittyinLA's picture

I noticed Ares arms is selling gun kits wholesale in cash by the hundreds of thousands to illegal aliens across America.  Mass unregulated unserialized guns being proliferated across America by the Mexican mafia might have an impact on Ruger sales. 

BTW the folks at Ares seem to all be Israeli.

Wed, 07/30/2014 - 14:15 | 5023320 TeethVillage88s
TeethVillage88s's picture

Never One Roach

I know an old guy that says buy American Eagles and Guns.

All I know for sure is Financial Markets are rigged and Bankers set up the Stocks & IPOs.

I'm not even sure about Coins that are collectors items as they are much more expensive than the base metal.

Wed, 07/30/2014 - 05:25 | 5021581 Jack4952
Jack4952's picture

In my planning for an economic or currency collapse, I do NOT even consider other precious metals such as platinum or palladium. In gold and silver, I am buying INSURANCE - not an investment. I am assuming that you are not a multi-millionaire, bur rather an everage person who wants to have REAL money in the event of an economic catastrophe and currency collapse. During such a crisis, do you think that you be able to actually buy anything with platinum or palladium????? What does the average man, from whom you will want to buys goods, know about platinum or palladium? It might be damned aluminum for all he knows!!! He will recognize as genuine a gold or silver coin issued by the Treasury of a major country. (You can look up on the Internet the weight and purity of all the gold and silver coins issued by the Treasuries of major countries. For example, the gold Canadian Maple Leaf is 99.99% fine gold, whereas the U.S. American Gold Eagle is only about 91% fine gold.)

Personally, under such circumstances, I would accept ONLY gold and silver coins issued by major mints. Forget the gold and silver bars, along with platinum and palladium! How could one know if they were real or not, much less their purity?

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