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7 Questions Gold Bears Haven't Answered
Submitted by Jeff Clark via Casey Research,
A glance at any gold price chart reveals the severity of the bear mauling it has endured over the last three years.
More alarming, even for die-hard gold investors, is that some of the fundamental drivers that would normally push gold higher, like a weak US dollar, have reversed.
Throw in a correction-defying Wall Street stock market and the never-ending rain of disdain for gold from the mainstream, and it may seem that there’s no reason to buy gold; the bear is here to stay.
If so, then I have a question. Actually, a whole bunch of questions.
If we’re in a bear market, then…
1. Why Is China Accumulating Record Amounts of Gold?
Mainstream reports will tell you Chinese imports through Hong Kong are down. They are.
But total gold imports are up. Most journalists continue to overlook the fact that China imports gold directly into Beijing and Shanghai now. There are at least 12 importing banks—that we know of.
Counting these “unreported” sources, imports have risen sharply. How do we know? From other countries’ export data. Take Switzerland, for example:
So far in 2014, Switzerland has shipped 153 tonnes (4.9 million ounces) to China directly. This represents over 50% of what it sent through Hong Kong (299 tonnes).
The UK has also exported £15 billion in gold so far in 2014, according to customs data. In fact, London has shipped so much gold to China (and other parts of Asia) that its domestic market has “tightened significantly” according to bullion analysts there.
2. Why Is China Working to Accelerate Its Accumulation?
This is a growing trend. The People’s Bank of China released a plan just last Wednesday to open up gold imports to qualified miners, as well as all banks that are members of the Shanghai Gold Exchange. Even commemorative gold maker China Gold Coin could qualify to import bullion. Not only will this further increase imports, but it will serve to lower premiums for Chinese buyers, making purchases more affordable.
As evidence of burgeoning demand, gold trading on China’s largest physical exchange has already exceeded last year’s record volume. Year-todatevolume on the Shanghai Gold Exchange, including the city’s free-trade zone, was 12,077 tonnes through October vs. 11,614 tonnes in all of 2013.
The Chinese wave has reached tidal proportions—and it’s still growing.
3. Why Are Other Countries Hoarding Gold?
The World Gold Council (WGC) reports that for the 12 months ending September 2014, gold demand outside of China and India was 1,566 tonnes (50.3 million ounces). The problem is that demand from China and India already equals global production!
India and China currently account for approximately 3,100 tonnes of gold demand, and the WGC says new mine production was 3,115 tonnes during the same period.
And in spite of all the government attempts to limit gold imports, India just recorded the highest level of imports in 41 months: the country imported over 39 tonnes in November alone, the most since May 2011.
Let’s not forget Russia. Not only does the Russian central bank continue to buy aggressively on the international market, Moscow now buys directly from Russian miners. This is largely because banks and brokers are blocked from using international markets by US sanctions. Despite this, and the fact that Russia doesn’t have to buy gold but keeps doing so anyway.
Global gold demand now eats up more than miners around the world can produce. Do all these countries see something we don’t?
4. Why Are Retail Investors NOT Selling SLV?
SPDR Gold ETF (GLD) holdings continue to largely track the price of gold—but not the iShares Silver ETF (SLV). The latter has more retail investors than GLD, and they’re not selling. In fact, while GLD holdings continue to decline, SLV holdings have shot higher.
While the silver price has fallen 16.5% so far this year, SLV holdings have risen 9.5%.
Why are so many silver investors not only holding on to their ETF shares, but buying more?
5. Why Are Bullion Sales Setting New Records?
2013 was a record-setting year for gold and silver purchases from the US Mint. Pretty bullish when you consider the price crashed and headlines were universally negative.
And yet 2014 is on track to exceed last year’s record-setting pace, particularly with silver…
- November silver Eagle sales from the US Mint totaled 3,426,000 ounces, 49% more than the previous year. If December sales surpass 1.1 million coins—a near certainty at this point—2014 will be another record-breaking year.
- Silver sales at the Perth Mint last month also hit their highest level since January. Silver coin sales jumped to 851,836 ounces in November. That was also substantially higher than the 655,881 ounces in October.
- And India’s silver imports rose 14% for the first 10 months of the year and set a record for that period. Silver imports totaled a massive 169 million ounces, draining many vaults in the UK, similar to the drain for gold I mentioned above.
To be fair, the Royal Canadian Mint reported lower gold and silver bullion sales for Q3. But volumes are still historically high.
6. Why Are Some Mainstream Investors Buying Gold?
The negative headlines we all see about gold come from the mainstream. Yet some in that group are buyers…
Ray Dalio runs the world’s largest hedge fund, with approximately $150 billion in assets under management. As my colleague Marin Katusa puts it, “When Ray talks, you listen.”
And Ray currently allocates 7.5% of his portfolio to gold.
He’s not alone. Joe Wickwire, portfolio manager of Fidelity Investments, said last week, “I believe now is a good time to take advantage of negative short-term trading sentiment in gold.”
Then there are Japanese pension funds, which as recently as 2011 did not invest in gold at all. Today, several hundred Japanese pension funds actively invest in the metal. Consider that Japan is the second-largest pension market in the world. Demand is also reportedly growing from defined benefit and defined contribution plans.
And just last Friday, Credit Suisse sold $24 million of US notes tied to an index of gold stocks, the largest offering in 14 months. That’s a bet that producers will rebound from near six-year lows.
These (and other) mainstream investors are clearly not expecting gold and gold stocks to keep declining.
7. Why Are Countries Repatriating Gold?
I mean, it’s not as if the New York depository is unsafe. It and Ft. Knox rank as among the most secure storage facilities in the world. That makes the following developments very curious:
- Netherlands repatriated 122 tonnes (3.9 million ounces) last month.
- France’s National Front leader urged the Bank of France last month to repatriate all its gold from overseas vaults and to increase its bullion assets by 20%.
- The Swiss Gold Initiative, which did not pass a popular vote, would’ve required all overseas gold be repatriated, as well as gold to comprise 20% of Swiss assets.
- Germany announced a repatriation program last year, though the plan has since fizzled.
- And this just in: there are reports that the Belgian central bank is investigating repatriation of its gold reserves.
What’s so important about gold right now that’s spurred a new trend to store it closer to home and increase reserves?
These strong signs of demand don’t normally correlate with an asset in a bear market. Do you know of any bear market in any asset that’s seen this kind of demand?
Neither do I.
My friends, there’s only one explanation: all these parties see the bear soon yielding to the bull. You and I aren’t the only ones who see it on the horizon.
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If the economy is so wonderful why isn't gold back to 2003 levels?
So which lie are we taking on there?
For any gold bear, I'll gladly swap your gold fillings for mercury.
Ah hah you say, a fallacious argument.
But may I remind you all that way back when during the time of Sir Issac Newton, mercury was more valuable than gold?
So see, an opportunity.
No, we are not in a bear market until Casey capitulates and stops writing stupid articles!
We aren't in a bear market until the frontpage of King World News stops posting meteors hitting the Earth.
8. Why so many boating accidents?
And there is one very simple answer to these questions...
That Yellen and TPTB hope you won't notice...
MANIPULATION
Not sure if it is manipulation. Might be, might not. But you should hope that it is. Because manipulation cant hold up in the long term. To me it doesnt matter. 5% of current savings goes to it every month, whatever the price. Funny how all these "average in" stock guys dont ever apply the same principles to gold. It applies to everything, a simple strategy of saving one's wealth.
I'm bearish on Gold because the market is manipulated downward with absolutely no end in sight.
At the street level in the United States, hardly anyone is interested in buying gold at these $1,000+ prices albeit coin shops.
i'm bullish on gold because you're bearish on it, doc!
more specifically, while you're right that the gold is suppressed, that means a buying opportunity.
it's not worth buying gold if you're looking to speculate on a quick short-term gain, because who knows when the suppression will end, but in the long term gold will reveal its value.
What you're really saying is you're bullish on the Dollar. Gold is manipulated against the dollar which is a good thing for stackers in the US. So you should be grateful, I assume you use US dollars. If you were buying in Rubles for example- 2 years ago you were paying 50,000/'ounce, today you're paying more like 70,000/ounce. It's a hedge against a devaluing currency, period.
This is a Shemitah Year. Like them or not they 100% of the time predict massive market corrections and depressions.
We are in one that begain on September 24th, 2014 and will end on September 13th, 2015.
On September 24th the market dropped 2%.
The last day of the last two Shemitah years had 7% market corrections. Not only that but major recessions occured.
2015 is going to knock people's teeth out financially..
Following this will be the depression years,
A few of the people who are accumulating gold at this moment: Daleks, Draconians, Dromidians, Elders, Eternals, Fairies, Giant Maggots, March Spiders, Metalkind (of course), Pig Slaves, Pipe Persons, Silurians, Sisterhood of Karn, Solonians, Tarans, Time Beetles, Time Brains, Tivolians, Wallarians, and Zanak Humanoids.
Summer, Thats FUNNY! We could have a contest: "We aren't in a bear market until....." and fill in the tag line.
Ill go first: We aren't in a bear market until Jim Willie's voice becomes soft and melodious.
Mercury amalgam is antimicrobial.
Kills the germs that cause tooth decay.
It may also slowly damage the pacient's health.
Mercury is a heavy metal, like lead, which accumulates in cells and which the body can't get rid of. Like lead, it is particularly bad for the brain. ("Mad as a hatter" refers to lead poisoning, since lead was used by hatters to soften cloth.) Therapy is chelation, which is introvenous introduction of chelates, large chemicals which grab onto metals and allow them to be passed out with the urine.
Recovery I think you ment mercury.
Mad as a hatter referred to mercury which was used to press felt hats.
http://en.wikipedia.org/wiki/Mad_as_a_hatter
I smell a tuna arbitrage opportunity.
Do you know why? Most people do not. Mercury is/was used to find gold in the earth which can make it easily more valuable than gold.... :)
There is lots of mercury poisoning today among third-world gold miners. It's an occupational hazard.
That explains the demographics of Johannasburg, CA and Randsburg, CA.
Gold bears with mercury fillings running around like mad hatters...LOL!!!
This list is a good start, but anyone who is paying attention to the global macro situation can ask at least 10 more questions that gold bears should answer. I'll list a few and someone can add a few more.
1. Why is gold a bad investment when never before in history has the world's financial system been on more precarious footing?
2. How can you discount what is happening in Japan and think it is both contained and will not impact the rest of the world in a negative manner? Why won't Japan bond holders run to gold?
3. War is breaking out left and right in the Middle East. There are 4 civil wars today that didn't even exist 4 years ago: Syria, Libyia, Iraq, and Egypt.
4. Russia, who was a US friend very recently, has once again become an enemy. Does this make western bankers feel warm and fuzzy?
5. America's economy is literally a basket case. Without stimulus and money printing we would be in a recession. Is they any hope in sight?
6. China's growth has clearly slowed. This is the last bastion of growth and they are starting to run in place. Doesn't this make you nervous?
www.goldsilverdata.com
all reasonable points.
however, you should brush up on the meaning of the word "literally":
"America's economy is literally a basket case"
yes, I would agree but I would add that it is not just the U.S. but rather the entir World that is a Basket Case.... the US is just denying it he best!
sorry sir, but to me, hidding negative gdp by finance twists and more dept, i call it recession, hidden, but still is.
And if even none of these supplementary reasons nor initial 7 reasons were true at the moment we should still be holding. GOLD IS MONEY. It's not money because some governing body says it is or says it isn't. It's money because people (the biological units that produce and trade) say it's money. From the beginning. And, gold is not money because a group of people stated it was money... people naturally gravitated to golds natural qualities from the beginning. It was this way, it is this way, and it will be in the future... a natural process. When the unnatural processes run their course, the natural processes will reassert themselves.
That's what I think about each month as I add to my PM holdings
America is dying and is running around attacking everything and everybody like a rabid dog.
I want my country back.
Gold Bears.........
https://www.youtube.com/watch?v=hzTeLePbB08
"Back Stabbers"
(What they do)(They smile in your face)
All the time they want to take your place
The back stabbers (back stabbers)
(They smile in your face)
All the time they want to take your place
The back stabbers (back stabbers)
All you fellows who have someone
And you really care, yeah, yeah
Then it's all of you fellows
Who better beware, yeah yeah
Somebody's out to get your lady
A few of your buddies they sure look shady
Blades are long, clenched tight in their fist
Aimin' straight at your back
And I don't think they'll miss
(What they do)
(They smile in your face)
All the time they want to take your place
The back stabbers (back stabbers)
I keep gettin' all these visits
From my friends, yeah, what they doin to me
They come to my house
Again and again and again and again, yeah
So are they there to see my woman
I don't even be home but they just keep on comin'
What can I do to get on the right track
I wish they'd take some of these knives off my back
(What they do)
(They smile in your face)
All the time they want to take your place
The back stabbers
(Back stabbers)
Low down, dirty
(What they do)
(They smile in your face)
Smiling faces
Smiling faces sometimes tell lies (back stabbers)
(They smile in your face)
I don't need low down
Dirty bastards (back stabbers)
Why does Doug Casey deny and discount precious metals "price" manipulation?
Never have understood him on that issue, as it is so blatantly obvious. Otherwise, hes a pretty interesting guy to listen to.
I have to question Casey's judgment. If he can't comprehend the obvious manipulation how much of real value can he bring to the table regarding precious metals?
Because he seems to trust that the market will win out. Maybe by the time he is 80. Even Peter Schiff basically admits it now.
There is an easy answer for that. Just ask Andy Gause the monitary historian and author about what happens to your CNN and CNBC bookings when you tell the truth. Suddenly they don't call you anymore.
I don't worry if my gold is "up" or "down". It is there to preserve wealth and will always have significant value, even if it is worth different amounts of "stuff" at different times.
You buy gold for twenty years from now.
be safe, let's say about 6-10 year for a start.
arount 2020 things will have make huge step.
Agreed but we will start to see the hill DOWN starting hard n 2016-2017. Band aids will only work a little bit at this point but be much les effective and containing the bleeding.....
Goldmans end of 2014 gold prediction?
Was that $1,057?
Only 22 more days..... bitchezzz
So, they are at about 150 bucks in profit so far.
Exactly. Anyone making investments on what they publish is an idiot at this point. The king of the muppet slayers, stolpher, may be gone , but the institution is still the same. I'm ok with that price though, I usually make my biggest purchase with my tax returns, so a nice price would be welcome shortly after the new year.
Bloomberg "news" repeats Goldman SUKS's prognostication on gold but have never published that after the $20B in naked shorting in April 2013, Goildman SUKS magically became one of the largest holders of GLD which allowed them or their proxies to take delivery of the disgorged GLD fleeced by the price manipulation.
During this same period, they cut deals with struggling countries to lease their gold...Why the need to lease if gold is a sell, sell, sell?
But there is no manipulation.
Don't poke the squid.
I think a gold bear would have one answer for all those questions: "Because they are stupid."
Time will tell...
I'm my own central bank. I may even do a "bail-in" with my FRNs.
Me because its Like Wilheim Bieuter boy said. Its in a 6000 year bubble. And if anything of this planet can stay in a bubble for 6000 years I definetly want my share for my short 70-80- year stay.
LOL - excellent point - Buiter seems to be trying to sell people on the idea that the '6000 year bubble' is going to pop on his watch. What an asshole that guy is.
he was selling the idea of a 90% chance of Greece leaving the eurozone in 2012
cd
Just thought our avatars could keep each other company....
In comparison, yours looks better without the silver and gold.
CD was kind enough to show us a larger version of his avatar when prompted. He is a gentleman.
R U a gentleman?
@CD: I have been trying to say what you just said for a couple of weeks now, only I couldn't find the right words to express how preposterous the concept of a 6K year old bubble is. But at least in commenting on your comment I was able to recall one of my favorite words I'd forgotten about: preposterous
gold is still gold - when you don't know what will happen - buy gold.
will be watching overnight trading in the capital of MoneyChanger manipulation and fraud - London...
any significant drop back into the fairytale land of $16 and change will be bought and added to the war chest...
game on u bitch ass fucking sociopath banker fucks...
DEATH TO THE MONEYCHANGERS...
ps: not for braggin but just out of pride -
10,000 oz's in reach.
Oh, tears of joy!
Don't be shy.
Do you not think that your location can be found via your IP address? STF up or you may be very sorry. Vanity is one of those traits which get you into trouble.
not afraid...
but thanks 4 ur genuine concern fellow citizen...
when fear is removed freedom ensues...
vanity not...
i proudly state my belief in real money and contempt for the bankers...
peace b with u....
Address? It's on an island just outside NYC, you can just about walk there.
What are you, a banker with a conscience? IP this.
Dead Banker #37? London ‘banker’ impaled after falling from penthouse
Conspiracy Fact: UN reports confirm Israel aiding ‘rebels’, Al-Qaeda groups fighting in Syria
Dead bankers - note that it includes 7 from JP Morgan. The list also includes the son of David Rockefeller, who died in an small airplane crash the morning after visiting his dad for his 99th birthday.
The ups and downs of the paper market will play out according to the player's wills and capacities.... the end game is secure. The one who owns the gold and silver will determine the final moves... be on the right side of events..... to determine the right side is the question, is it not?
7 questions for gold bulls:
1) What dividend does GLD pay?
2) Is the yield higher than us treasurys?
3) How much gold is in modern coinage?
4) How much gold was irretrievably consumed last year?
5) Is there more refined gold on earth this year than there was last year?
6) Gold, huh, what is it good for? (answer, absolutely nothing)
7) Don't let me hear you say gold's taking you nowhere, angel. wop wop wop.
That's why I buy Silver.
......gold is a proxy for silver don't ya know....... well fuck somebody had to say it.....
Just on the offchance that BS wasn't smiling when he posted that...... ask the same questions but replace gold with bullshit lies and empty promises..... but then fire in #8 - what are 4 pre-1964 quarters worth...... now wouldn't $5 paid in pre-bullshit coinage make a decent minimum wage....... fuck a bunny might actually get to eat something once in a while beside dried out bankster balls....
8) How will you feel if you wake up one nice frosty morn, and there is no more gold for sale?
The only question that matters in an invironment of high risk: who is your counter party?
......my thai and vietnamese GF's had a counterparty just last week........... mmmmmmmmmmm counterparty...... so nice when there's all bounce and no jiggle.....
General answer: it's better than paper !
1) It's all captial gain.
2) Physical Gold won't go to ZERO.
3) 99.99% for RCM products, but you knew that.
4) Very very little.
5) Are there more US dollarson earth this year than last ?
6) In November 1923, a loaf of bread cost 200,000,000,000 marks in Weimar Germany.
One ounce of Gold was 4,550,000,000,000 marks.
Physical Gold, no counter party risks, no theft by inflation.
Love this this type of q's.
1. It pays zero. But your stock may someday pay the same.
2. Like that's any measure of anything? What do Venezuelan bonds pay?
3. A more pertinent question is how much has been mined in history. The answer is maybe 10 billion ounces. And its getting harder to get it out of the ground economically. Not many compared to the number of treasury bonds, eurobonds, japanese bonds, etc, no?
4. Not much, but some. Insignificant.
5. About 50 million oz, but going down year by year at today's prices.
6. Um, i can sell it anywhere in the world.
7. Its not taking me anywhere. Neither are treasury bonds or cd's. For 1m in short term treasuries i can earn enough to pay my cable bill next year. Rather have it in gold.
Good luck with your treasuries.
Well, there's gold in the electronic device you're using to bash the metal on here. My favorite reason, government can't track it or tax it. So guess what, the .01% you'll be making off your computer numbers are %100 taxable and trackable by your beloved government. The same government that so fiscally responsibly debted you into 18 trillion dollars. And probably the biggest reason, everyone else in the world thinks it's valuable and useful. Just like you think that a piece of paper is valuable and useful. And, there are already 3 states that has made it legal to use precious metals for trade (like it was never legal in the first place, according to your constitution, for the reason that governments could not get too big and endebt it's people into stupid levels.)
http://investfts.blogspot.co.uk/2014/12/gold-monthly-thoughts.html
Technical outlook for gold, free of ego and opinion. Let Mr Market do the work.
Pretty interesting article. Anyone have any idea of how to estimate how much gold buy and hold it would take to actually get the price to increase? It is amazing that, in the face of such strong and increasing demand, sellers gladly sell at lower and lower prices.
Nothing noteworthy about bankers making dumb trades by buying commodities declining in price. Who believes a Chinese banker is better at timing a market that the average monkey? Hope they are better at gold investments than in building apartments and shopping centers. Quite a disaster comming from those decisions.
I might even sell a few of my guns to increase the stack.
Somebody stop me!
Never sell your guns, they're your access to other people's gold.
criminals dont belong on zh, go away, or better yet, shoot yourself
also, you give gun owners a bad name; most are honorable.
He means in a broken society , not now.
I have no guns at home , but the thought of butchering my neighbors in certain scenarios has come to my mind.
The Purge!!!!!
https://www.youtube.com/watch?v=K0LLaybEuzA
Or you could become the man with the golden gun :-) You then keep your guns and increase the stack.
hmmm....similar reasons I heard the last few years and yet the price went down. So, we have a lot of bulls now so that means the price will go down to wash these guys out. Then I can buy cheaper..... :)
Yes, the paper gold will always be available and eventually you will be able to buy it for next to nothing.
"As evidence of burgeoning demand, gold trading on China’s largest physical exchange has already exceeded last year’s record volume. Year-todatevolume on the Shanghai Gold Exchange, including the city’s free-trade zone, was 12,077 tonnes through October vs. 11,614 tonnes in all of 2013."
How much of that is paper gold? Most has to be as the largest horde is supposedly the USA with 8000+ tonnes.
Of course the Chinese have vast amounts of trading copper too. That should not be confused with true physical holdings. LBMA trades 100 times the physical amount present.
When Geithner stated in a talk at Peking University that US treasuries were a "very safe" investment, he drew loud laughter from the student audience. Since paper (electronic) gold is less secure than US Treasuries, it is probably very likely that the Chinese prefer the physical old fashion out-dated relic yellow stuff that does not involve couterparties such as the US treasury and their bullion bank buddies.
Buy The Fucking 6000 year Dip!
Why is it that authors like this start with a premise that governments have ANY idea what they are doing when it comes to financial matters?
China is Exhibit A when it comes to evidence of mal-investment.
India? Please. I'd just as soon take financial advice from North Korea.
Russia? You mean the Russia of the former, failed, USSR? Riiiight.
Whether you're a gold bug or bear, never answer questions that assume that any government knows what it's doing.
Also, whether you are a gold bug or bear, you should check your own premises. Do any of you (bugs or bears) EVER examine your own beliefs? It doesn't appear so.
I think gold can have a place in a portfolio. But, JUST LIKE ANY OTHER INVESTMENT, you should have an entrance AND an exit strategy. If you don't, then you're just going on pure emotion, which usually doesn't work.
Good luck either way.
"China is Exhibit A when it comes to evidence of mal-investment",
why, because of all the US treasuries they hold ?
And why wouldn't America be Exhibit A ?
Russia is not the USSR, just like Amierika is not America.
Just look up Russia's debt to GDP.
Mal-investment because of Treasuries? Maybe. But I was referring to the ghost cities and other nonsense they've built.
If you want America to be Exhibit A for evidence of mal-investment, then make your own case. Don't ask me to do it for you.
Russia was the backbone of the USSR. They couldn't make a go of it then, and they won't now. Their debt is low because we bailed them out when the Soviet Union collapsed.
Russian ruble - it is the only currency in the world, which is backed by gold at 27% right now.
http://www.lewrockwell.com/2014/11/no_author/will-putin-play-his-gold-card/
In today's upside down market I would not own anything that was not tangible.
Land is good, but you cannot take it with you.
Stocks are just more paper, and they could be worthless quickly
Gold will always have value wherever you go.
You can even hide it in the ground or even salt water and it still comes up shining. Try that with paper.
8. Have you bought your copy of "The Colder War" yet?
There are gold bulls
There are gold bears
There are gold owners
And there is Goldfinger
......there is even a gold member.....
Gold is a good sleep aid. And sleep is very very valuable to those who don't have it.
Given the ZH article of a few days ago (which was a re-post from another site), showing the 95% inverse correlation between the Nikkei Index and Gold, I can see why gold got monkey-hammered the last 2 years: Gold was sacrificed to save the Nikkei.
Ironically, it allowed China, Russia and India to buy bullion are deep discounts and position themselves to exit the Dollar/SWIFT system, or at least set up a competitive system in parallel.
I can even see how this works for oil in place of gold. But what puzzles me is why TPTB would want to let that happen, as it smacks of cutting off your nose to spite your face.
Given that Japan has so much US debt, they are the domino to fall that will dethrone the Dollar and threaten the end of the Fed itself. They should have cut Japan loose much sooner, but now it's too late. All they've done is bought some time, while making their opposition stronger sooner than they needed to. Unbelievable hubris, unbelievable intransigence in NY and DC. Only fanatics in positions of great power can behave that way, not rational business people.
TPTB
My guess is some powerful people want a one world government. To do that the USA can't stay the USA.
Nothing new - the communists have lusted after this for 175 years
If you don't hold it... A lot of people may soon learn a painful lesson.
Bloomterd - no mention of gold went it shoots $40 a day
only Bloomshits bald midget when it goes down
We were in a 6,000-year bubble, last I heard.
How I wish our overlords would make their minds up.
ZeroHedge is simply lying. Just follow your formal leaders and banksters, then you will always remain very happy. Greetz from the Animal Farm secretary.
I've my share of gold and tha's just fine with me ;-)
FROM THE ARTICLE;
The People’s Bank of China released a plan just last Wednesday to open up gold imports to qualified miners, as well as all banks that are members of the Shanghai Gold Exchange. Even commemorative gold maker China Gold Coin could qualify to import bullion. Not only will this further increase imports, but it will serve to lower premiums for Chinese buyers, making purchases more affordable.
=========================
When the Chinese alone start consuming in exccess of 3,000 tons per year - oh boy, is it going to be fun.
Tradition.
Germany began a national credit program by devising a plan of public works that included flood control, repair of public buildings and private residences, and
construction of new roads, bridges, canals, and port facilities. All these were paid for with money that no longer came from the private international bankers.
The projected cost of these various programs was fixed at one billion units of the national currency. To pay for this, the German government (not the international
bankers) issued bills of exchange, called Labor Treasury Certificates. In this way the National Socialists put millions of people to work, and paid them with Treasury
Certificates.
Under the National Socialists, Germany’s money wasn’t backed by gold (which was owned by the international bankers). It was essentially a receipt for labor and
materials delivered to the government. Hitler said, “For every mark issued, we required the equivalent of a mark’s worth of work done, or goods produced.” The
government paid workers in Certificates. Workers spent those Certificates on other goods and services, thus creating more jobs for more people. In this way the
German people climbed out of the crushing debt imposed on them by the international bankers.
Within two years, the unemployment problem had been solved, and Germany was back on its feet. It had a solid, stable currency, with no debt, and no inflation, at a time when millions of people in the United States and other Western countries (controlled by international bankers) were still out of work. Within five years, Germany went from the poorest nation in Europe to the richest.
Germany even managed to restore foreign trade, despite the international bankers’ denial of foreign credit to Germany, and despite the global boycott by Jewish-owned industries. Germany succeeded in this by exchanging equipment and commodities directly with other countries, using a barter system that cut the bankers out of the picture. Germany flourished, since barter eliminates national debt and trade deficits. (Venezuela does the same thing today (2012) when it trades oil for commodities, plus medical help, and so on. Hence the bankers are trying to squeeze Venezuela.)
Germany was rescued from English economic theory, which says that all currency must be borrowed against the gold owned by a private and secretive banking cartel — such as the Federal Reserve, or the Central Bank of Europe — rather than issued by the government for the benefit of the people.
Fuck fiat Fuck gold/silver Fuck capitalism/communism Most of all Fuck BANKERS and banking trades Print real "money" (as per the constitution not an original German idea , remember???) and produce something (aka work) fucking leaches
In case it could be of interest to somebody : I find Valcambi's "combi bars" a brilliant idea : https://www.valcambigold.com/products/silver/combibars. You can keep your 100 gr of silver or gold as a 100 gr ingot, or you can split it into 10x10 mini ingots. Like chocolate :-)
Not sure it belongs to this very thread, but I didn't know where to mention it. I don't work there, BTW :-)
Yes it's a great idea but the premium is far too high.
This is where silver comes in, for the smaller purchases.
Could it be...
The Mother of all Bank Runs!
By Bill Holter
Global Research, December 08, 2014
Do you remember seeing old pictures of the Great Depression which depicted “lines”? There were two types, bread lines and also lines to the front doors of banks. While we don’t see any bread lines today, trust me, there are bread lines in every single state, and long ones at that. Nearly 50 million people in the U.S. survive on SNAP, EBT cards or whatever they are called in your state. Can you imagine the “confidence” it would instill if each day on your way to work you saw massive lines of people waiting for breakfast? Or, when you came home from work you turn on your television only to see long lines again, this time for supper? I can see it now, some reporter out on the street giving us the “good” unemployment, inflation or GDP news with a line of people in the background waiting for food. My point? False economic news would be harder to “sell” and even harder to “stomach” (pun intended).
Back during the Great Depression there were also the other type of lines, these formed in front of banks. Many banks either “ran out of money” or had poor investments which led to their demise. We also had this type of activity in the U.S. in 2008-09 …but again, we just didn’t see them. There were “electronic runs” of all sorts which we either didn’t hear about or never saw …but they did happen. This is why so many banks, brokers and mortgage companies were rolled up together and merged. The failures had to be hidden as best they could from the public’s eye because fear would have bred more fear. This cannot be allowed in a system built and standing alone on “confidence”.
I mention the above because another situation is now arising, another “line” is beginning to form. The current line formation is unfortunately the scariest imaginable, we are facing the Mother of all Bank Runs! This past week Willem Middlekoop uncovered another central bank asking for their gold back, Belgium. We already know Germany had publicly requested their gold back beginning in early 2013 and gotten very little so far. Just a couple of weeks back, The Netherlands announced the repatriation of 122.5 tons of gold …after the fact. When the announcement came, it said the transfer and transaction had already been done. Several days afterwards, a leading candidate for France’s next election also brought up the possibility of French gold being repatriated …and now it’s Belgium!!!
Notice I used three exclamation points, I did so because of all the central banks to request their gold back Belgium in my opinion would be the very last to do so with one “caveat”. The caveat being “unless something REALLY big has changed”, let me explain. First, Belgium is the “seat” of the European Union, this is where all European decisions are made and announced (with Germany’s approval of course). The decision to repatriate gold from the “safe haven” of New York and to do it publicly raises eyebrows on its own, but this is Belgium, not “just some country” in Europe. Brussels is where the EU itself is headquartered. We are talking about a dealing between the #1 and #2 Western central banks in the world. Did the EU or ECB in Frankfurt give the OK to ask for repatriation? Yes I understand, Belgium’s central bank is not the ECB but would they or any other central bank request repatriation without ECB approval? The same could be asked of both Germany and The Netherlands, they must have had prior approval before asking for their gold back?
Looking at this a little further, I remind you of earlier in the year when it was discovered “Belgium” was holding some $400 billion worth of Treasury securities. This was termed the “Belgian bulge” and not really explainable because Belgium as a country did not have the wherewithal to have purchased this amount. Either this was done via proxies or with ECB help or some other manner, it has never been explained to my knowledge. I mention this because of the important “tie” apparently between the U.S. and Belgium. If “Belgium” trusted us so much to have purchased $400 billion worth of Treasuries, then why repatriate their gold? Belgium has 227 tons of gold, we found out in 2011 that 86 tons of this amount were on lease, leaving approximately141 tons at the FRBNY. This is only worth in current dollars somewhere close to $5 billion. The “ratio” if you will is better than 80 to one, Treasuries to actual gold “held” but not leased (hopefully?).
Why does it even matter what the ratio is? Let’s walk this through, because we are talking about the issue of “trust”. The only reason one would repatriate gold is because they want it in hand. If you believed your gold was safe and sound, protected and “actually there”, no one would ask for their gold back. Belgium has displayed their confidence by holding $400 billion worth of U.S. Treasuries …but apparently not with the U.S. holding less than $5 billion worth of gold? Why the dichotomy of trust? Actually, I will use a better word, “bifurcation” of trust, and yes there is a pun within this one too.
Another piece of news out of the ECB (Belgium) this week was the classification of member’s gold reserves.
https://www.bullionstar.com/blog/koos-jansen/eurosystem-is-increasing-its-allocated-official-gold-reserves/
Koos Jansen brought this to our attention which on its own is very big news but has now been overshadowed by the repatriation news though most definitely connected. The member states it seems are being told to differentiate between allocated and unallocated gold, and to also break down swap positions and receivables. Theoretically this should make gold holdings less opaque and more clear to view, but why? Why change the reporting and why now during the repatriations …?
I of course do not have the answer but we can speculate something has and is definitely changing, and this “something” is HUGE! I say huge because these events are a change to policy which has stood the test of 70 years time. For the last 70 years, the world has stored their gold at the New York Fed and never asked for it back. Other than Germany withdrawing 1,000 tons from the Bank of England in 2001, Venezuela is the only country to ask for their gold back…until now. The only way to describe what is beginning to happen is to call it a bank run, The Mother of all Bank Runs and an “old fashioned one” at that!
This will be very interesting to watch exactly because of the “old fashionedness” and the scramble for what we have been told and taught for so long to be a worthless barbarous relic, gold. Current day bank runs as you know have been papered over time and again, just look at Fed, ECB, and BOJ balance sheets to understand this fact. They continually printed new monies and bought failing paper from dying banks to keep them alive. The creation of new money was the key, the fact that gold cannot be created out of thin air is the sticking point.
As this bank run progresses, please keep in mind the central banks will be telling anyone willing to listen, what the true definition of money is …by their actions…without actually saying it. As central banks fight over gold, they will be standing publicly and buck assed naked telling the world exactly what money is and what it isn’t. Watch as the central banks fight over what today are meaningless dollar amounts of gold. Do you understand what I am trying to say here? For central banks to even care about a few billion dollars is a ridiculous thought, but maybe it’s not “just a few billion dollars”? Maybe they are beginning a fight over “all the money in the world”? Please understand, this is for all the marbles!
One last note, if it turns out Belgium does decide to repatriate their gold, this would mean Germany, Holland and Belgium have all done the same exercise. I would add that Austria would probably be next …which would mean what? The stage would then be set for a likely breakup of the formal EU into “north and south” regions. These nations while holding gold in hand would benefit from a markup in gold prices and allow for a “northern euro”, backed partially or on a ratio basis to gold. The line is forming and the back of the line is no place to be!
Bill Holter, Miles Franklin associate writer
http://www.globalresearch.ca/the-mother-of-all-bank-runs/5418692
When the crash comes, Paper Gold will be sold by many to cover their margins.
This will be the perfect time to add to ones stack.
Max
germany stopped gold back coz cia phoned merkel to threat about kohl fuck in the time and what his gay husband was working in san diego for us gov.
she definitivly a D.C pawn.
do not expect any move against usa from germany.
Why hasn't overseas investors called the COMEX 90:1 paper contracts oversubscription yet?
Seems like their loads of investors with enough money to shut down the COMEX. If there is a 90 times paper for every ounce lets see it?
You can't see a held in reserve ratio, it changes as the demand changes.
WHY7....BITCHEZ
Well buzz, over a quadrillion of derivatives is good enough for me to own gold.
I think you are all looking at the wrong data points to determine the value of pms. All you have to do is look at negative real interest rates and the shadow banking system and the 1.5 quadrillion in notational interest rate swaps held by our banks and you will see the real value of gold and silver vs the true value of fiat. Its only a matter of time folks..and I doubt if there's much of it left for our banker friends 37 of whom have recently bit the dust.
We value gold for many reasons: its beauty, its usefulness as jewelry, and its rarity. Gold is rare on Earth in part because it's also rare in the universe. Unlike elements like carbon or iron, it cannot be created within a star. Instead, it must be born in a more cataclysmic event - like one that occurred last month known as a short gamma-ray burst (GRB). Observations of this GRB provide evidence that it resulted from the collision of two neutron stars - the dead cores of stars that previously exploded as supernovae. Moreover, a unique glow that persisted for days at the GRB location potentially signifies the creation of substantial amounts of heavy elements - including gold.
"We estimate that the amount of gold produced and ejected during the merger of the two neutron stars may be as large as 10 moon masses - quite a lot of bling!" says lead author Edo Berger of the Harvard-Smithsonian Center for Astrophysics (CfA).
Berger presented the finding today in a press conference at the CfA in Cambridge, Mass.
A gamma-ray burst is a flash of high-energy light (gamma rays) from an extremely energetic explosion. Most are found in the distant universe. Berger and his colleagues studied GRB 130603B which, at a distance of 3.9 billion light-years from Earth, is one of the nearest bursts seen to date.
Gamma-ray bursts come in two varieties - long and short - depending on how long the flash of gamma rays lasts. GRB 130603B, detected by NASA's Swift satellite on June 3rd, lasted for less than two-tenths of a second.
Although the gamma rays disappeared quickly, GRB 130603B also displayed a slowly fading glow dominated by infrared light. Its brightness and behavior didn't match a typical "afterglow," which is created when a high-speed jet of particles slams into the surrounding environment.
Instead, the glow behaved like it came from exotic radioactive elements. The neutron-rich material ejected by colliding neutron stars can generate such elements, which then undergo radioactive decay, emitting a glow that's dominated by infrared light - exactly what the team observed.
"We've been looking for a 'smoking gun' to link a short gamma-ray burst with a neutron star collision. The radioactive glow from GRB 130603B may be that smoking gun," explains Wen-fai Fong, a graduate student at the CfA and a co-author of the paper.
The team calculates that about one-hundredth of a solar mass of material was ejected by the gamma-ray burst, some of which was gold. By combining the estimated gold produced by a single short GRB with the number of such explosions that have occurred over the age of the universe, all the gold in the cosmos might have come from gamma-ray bursts.
"To paraphrase Carl Sagan, we are all star stuff, and our jewelry is colliding-star stuff," says Berger.
The team's results have been submitted for publication in The Astrophysical Journal Letters and are available online. Berger's co-authors are Wen-fai Fong and Ryan Chornock, both of the CfA.
My local Harley Davidson motorcycle dealer is selling a lot of motorcycles. Vintage Ferraris are selling for $25m.
Central Park condos are selling for crazy prices.
My point? There is a shit load of money. If I sell my "paper", what do I do with the dollars?
Buying physical gold is dealing with the worst sleeze bags on the planet.
I've been reading ZH for a while now, especially the articles on PMs as THE "hedge against inflation" logic. However, I am confused and seek clarification from those much more experienced than me. If the market crashes and civil society dissolves, will PMs truly be the medium of trade as opposed to tangible goods? And if the economy doesn't crash but does a slow decline over many years (perhaps even decades), will this "hedge against inflation" really help obtain tangible goods such as food, clothing, housing & physical security as long as the Federal Government prevails?
It appears to me that the better long-term investment opportunity (in terms of quality-of-life) would be to obtain arable land, learn to farm and other valuable skills, and obtain the means to protect yourself and your family. Of course, this entails a certain amount of societal isolation, but that's a personal decision everyone must make.
I'd truly like to know: Do holders of PMs expect an intact and functioning Federal Government? And if not, are assumptions that PMs would become the universal "coin of the realm" rather than tangible goods be considered a speculative action in and of itself?
Thank you for any insights.
Always keep a small store of gold, if not for investment, then for barter during chaos, persecution, collapse, and, if necessary, getting out of Dodge. It’s been the proven way throughout history; it will be accepted in the underground market - even if "outlawed" - when nothing else will.
Graywolf Survival explains it in:
Pocket gold? Is this really the best choice? - What to stockpile for barter after SHTF
http://graywolfsurvival.com/934/breakable-gold-bars-shtf-barter/
If the market crashes and civil society dissolves, will PMs truly be the medium of trade as opposed to tangible goods?
No.
And if the economy doesn't crash but does a slow decline over many years (perhaps even decades), will this "hedge against inflation" really help obtain tangible goods such as food, clothing, housing & physical security as long as the Federal Government prevails?
No.
....the better long-term investment opportunity (in terms of quality-of-life) would be to obtain arable land, learn to farm and other valuable skills, and obtain the means to protect yourself and your family...
Indeed.
.....considered a speculative action in and of itself?
Absolutely. And a Piss Poor One at that....
Cf. "Golden Myths".
EXCELLENT questions ! Here is one person's approach for you to consider:
I sold out of all my Wall Street virutal/paper assets after taking the FED elevator UP into much higher levels of wealth and bought into income-earning businesses that are as recession/crash proof as possible, eg provide essential goods & services, serve wealthy populations, etc. One of these businesses is a produce farm.
If the government collapses and fiat currency is replaced by PM, guess how much PM I am going to charge for a bushel of produce ?
Hint: During ALL the gold rushes on earth through all history, the largest number of wealth creations were the owners of the shops that provided essential goods to the miners - NOT the guys with the PM.
Oh yeah, forgot to mention that any talk about the dollar becoming worthless or replaced by PM, the government collapsing and politicians no longer have power & control, etc, etc is 100% pure pot-head fantasy and PM religion. You and your children and your grandchildren will all live and die under the regime.
Regimes end by armed force, internal or external, not financial market crashes, high levels of debt, etc.
Doctor Faustus,
I will never tell you what to buy or sell, but I will tell you that I am one of the very few people on ZH who understands economics 101 and what things mean.
PM's are indeed a hedge against inflation. But to understand that, you have to know the real definition of inflation. Inflation is an increase in the money supply. All things being equal, that increase leads to an increase in demand, which leads to an increase in prices.
My opinion is that we've had inflation for the past 40 years due to a credit bubble rather than real economic growth, and that bubble is over. Inflation is not bad if it's due to real economic growth, because then wages rise along with everything else. So demand goes up, prices go up (but people can afford it because wages go up), and standard of living goes up.
But a credit bubble inflation is bad news. It will (and did) end. The money supply went up (because credit spends JUST like cash), demand went up, prices went up, but wages and real growth did not go up. So now the party is over.
So, I believe the next economic wave is going to be deflation (decrease in the money supply). A lot of bad debt (that was conjured out of thin air) is going POOF faster than any QE can try to replace it.
You look around and decide for yourself if you believe that we're facing inflation or deflation. And then remember that PM's are a hedge against inflation. If you think we're headed for inflation, then go for it. If you believe we're headed into deflation, then think twice.
"Golden Myths"
Tyler recently discovered a relationship (actually inverse) between Nikkei and Gold that I thought said that someone or some central bank was buying Nikkei and selling gold.
Now he says everyone is buying gold.
I discovered that J.P.Morgan is dealing in collateralized gold debt.
https://www.google.com/search?q=jpmorgan+collateralized+debt+gold&ie=utf...
Look at this PDF.
So how do we know whether these new CDOs have been oversold which distorts the gold sales in Tyler's charts?
This has a familiar ring to 2007 doesn't it?
Have the gold shipments to China been physical transfers or paper transfers?
Inquiring minds want to know!