This page has been archived and commenting is disabled.
Gold "Tightness": When There's No More To Sell, There's No More To Buy (At Any Price)
Submitted by Chris Martenson via PeakProsperity.com,
One of our long-running themes here is that the truly historic and massive flows of gold from West to East is (someday) going to stop, for the simple reason that there will be no more physical bullion left to move.
It’s just a basic supply vs. demand issue. At current rates of flow, sooner or later the West will entirely run out of physical gold to sell to China and India. Although long before that hard limit, we suspect that the remaining holders of gold in the West will cease their willingness to part with their gold.
So the date at which “the West runs out of gold to sell” is somewhere between now and whenever the last willing Western seller parts with their last ounce. As each day passes, we get closer and closer to that fateful moment.
This report centers on preponderance of fascinating data revealing the extent of the West's massive dis-hoarding of physical gold, for the first time, begins to allow us to start estimating the range of end-dates for the flow to the East.
Here’s the punchline: there’s an enormous and growing disconnect between the cash and physical markets for gold. This is exactly what we would expect to precede a major market-shaking event based on a physical gold shortage.
Stopping the Flows
There are only two outcomes that will stop the process of Western gold flowing East, one illegitimate and the other legitimate.
- It becomes illegal to sell gold. This is the favored approach of central planners who prefer to force change by dictate rather than via free markets and free will. Unfortunately, this strain of political intervention is dominant in the West, particularly in the US and EU.
- The price of gold dramatically rises. A large increase in the price of gold will (paradoxically) cause greater demand for gold in the West and (sensibly) less demand in the East. This is what should legitimately happen given current supply and demand dynamics. But it may not.
There’s always a 3rd option, we suppose: economically carpet-bombing China and India's financial systems to scare/force some gold back out. Consider such an approach along the ‘economic hitman’ lines of thinking.
This would be done, for example, by having outside interests sell the Rupee furiously, driving down its value and forcing the Indian monetary authorities to defend it by using up foreign reserves to buy the Rupee. Then wait for India to run out of foreign reserves and then casually ‘suggest’ that its government use gold sales to continue defending its currency. India's leaders would have to find ways to somehow ‘coax’ gold from its citizens. I think we can all imagine the sorts of draconian rules and penalties that desperate governments would deploy in such a situation.
As a side note, I believe this is the same process that was used to ‘coax’ a lot of gold out of the GLD trust since 2012. After enough bear raids on the price of gold, which began somewhat suspiciously almost exactly on the date that QE3 was announced, Western gold ‘investors’ lost interest in the yellow metal, sold their GLD shares in droves, and hundreds of tons of gold were liberated from that stockpile.
What is truly odd from a chart perspective: this hammering down of gold started just after it had broken to the upside out of a textbook perfect triangle, when it looked seemingly ready to head off to higher values:

But in the days immediately following the QE3 announcement, gold shed $100, then barely recovered, and just wandered lower until it was violently slammed from $1550 to $1350 over one night (of course) in April 2013.
Now this was highly fortuitous for the ever-lucky Federal Reseve. After launching the largest money printing campaign in US history, the Fed did not need gold heading any higher, possibly providing a signal that would cast doubt on the wisdom or possible effectiveness of its easy-money policies. Policies, mind you, that the years since have proven to do little more than enrich the banker class and the 0.1%, as well as lard the system with extraordinary levels of new indebtedness and liquidity.
The Fed Indeed Cares About Gold
Gold, when unfettered, has a habit of sending signals that the Fed really doesn’t like. Therefore the Fed is at the top of everyone’s suspect list when it comes to wondering who might be behind the suspicious gold slams. Whether the Fed does it directly is rather doubtful; but they have a lot of useful proxies out there in their cartel network.
To reveal the extent to which gold sits front and center in the Fed’s mind, and how they think of it, here’s an excerpt from a 1993 FOMC meeting’s full transcript. Note that the full meeting notes from Fed meetings are only released years after the fact. The most recent ones available are only from 2009. Listen to what this FOMC voting member had to say about gold:
At the last meeting I was very concerned about what commodity prices were doing. And as you know, they got lucky again and told us that the rate of inflation was higher than we thought it was.
Now, I know there's nothing to it but they did get lucky. I've had plenty of econometric studies tell me how lucky commodity prices can get. I told you at the time that the reason I had not been upset before the March FOMC meeting was that the price of gold was well behaved.
But I said that the price of gold was moving. The price of gold at that time had moved up from 328 to 344, and I don't know what I was so excited about! I guess it was that I thought the price of gold was going on up. Now, if the price of gold goes up, long bond rates will not be involved.
People can talk about gold's price being due to what the Chinese are buying; that's the silliest nonsense that ever was. The price of gold is largely determined by what people who do not have trust in fiat money system want to use for an escape out of any currency, and they want to gain security through owning gold.
A monetary policy step at this time is a win/win. I don't know what is going to happen for sure. I hope Mike is correct that the rate of inflation will move back down to 2.6 percent for the remaining 8 months of this calendar year. If we make a move and Mike is correct, we could take credit for having accomplished this and the price of gold will soon be down to the 328 level and we can lower the fed funds rate at that point in time and declare victory.
There it is, in black and white from an FOMC member’s own mouth spelling out the primary reason why I hold gold: I lack faith in our fiat money system. He nailed it. Or rather, I have very great faith that the people managing the money system will print too much and ultimately destroy it. Same thing, said differently.
And of course the people at the Fed are acutely aware of gold's role as a barometer of people’s faith in ‘fiat money.’ Of course they track it very carefully, discuss it, and worry about it when it is sending ‘the wrong signals.’ I would, too, if in their shoes.
The Federal Reserve Note (a.k.a. the US dollar) is literally nothing more than an idea. It has no intrinsic value. America's money supply is just digital ones and zeros careening about the planet, accompanied by a much smaller amount of actual paper currency. The last thing an idea needs is to be exposed as fraudulent. Trust is everything for a currency -- when that dies, the currency dies.
The other thing you can note from these FOMC minutes is that gold pops up 19 times in the conversation. The Fed members are are actively and deliberately discussing its price, role in setting interest rates, and the psychological impact of a rising or falling gold price.
Later in that same meeting Mr. Greenspan says:
My inclination for today--and I'm frankly most curious to get other people's views--would be to go to a tilt toward tightness and to watch the psychology as best we can. By the latter I mean to watch what is happening to the bond market, the exchange markets, and the price of gold…
I have one other issue I'd like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here. If we are dealing with psychology, then the thermometers one uses to measure it have an effect. I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market.
There's an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology. Now, we don't have the legal right to sell gold but I'm just frankly curious about what people's views are on situations of this nature because something unusual is involved in policy here. We're not just going through the standard policy where the money supply is expanding, the economy is expanding, and the Fed tightens. This is a wholly different thing.
The recap of all this is that the Fed watches the price of gold carefully, frets over whether the price of gold is ‘sending the right signals’ to market participants, and pays attention to gold's impact on market psychology (with an eye to controlling it).
In short, the Fed keeps a close eye on the "golden thermometer".
Back to the supply story for gold. Not long after gold began its downward price movement in 2012, the GLD trust began coughing up a lot of gold, eventually shedding more than 500 tonnes; a truly massive amount.

(Source)
In my mind, the absolute slamming of gold in 2013 was done by a few select entities and represents one of the clearest cases of price manipulation on the recent record. While we can debate the reasons ‘why’ gold was manipulated lower or ‘who’ did it, to me, there’s no question about how it was done. Or that it was done.
Massive amounts of paper gold were dumped into a thin overnight market with the specific intent of driving down the price of gold.
It’s an open and shut case of price manipulation. Textbook perfect.
Even if these bear raids were performed by self-interested parties that made money while doing it, you can be sure the Fed was smiling thankfully in the background and that the SEC wasn’t going to spend one minute looking into whether any securities laws were broken (especially those related to price manipulation). Gold's falling "thermometer" was exactly what the central planners wanted the world to see.
Down and Out
The paper markets for gold are centered in the US, while the physical market for gold is centered in London (but increasingly Shanghai). It’s safe to say that the paper markets set the spot price, while the physical movement of gold originates in London.
What’s increasingly obvious is the growing disconnect between the paper and physical markets. This is exactly what we’d expect to see if the paper markets were pushing in one direction (down) while physical gold was heading in a different direction (out).
The tension between these ‘down and out’ movements is building and, according to a senior manager of one of the largest gold refineries in the world located in Switzerland, the current price of gold “has no correlation to the physical market.”
He notes a lot of on-going tightness in the physical market. Unsurprisingly, gold is moving from West to East with vaults in London supplying much of the physical metal that's being refined into fresh kilo bars and sent off to China and India.
But given the astonishing amount of physical demand, why has the price of gold been heading steadily lower over the past several years?
The aforementioned Swiss refiner is equally perplexed:
If I am honest, the only thing I could share now with you would be that I’m perplexed about the discrepancy between the prices and the situation of the physical market. This is something I still do not understand and is a riddle for me every day. For all people who are interested in precious metals, the physical side of this business should be given more emphasis.
There’s no mystery as to demand going up in China and India as the price went down. Interested buyers will buy more at a lower price.
But its a big mystery as to why Western “investors” seem more interested in selling gold than buying it right now.
Evidence of Physical Tightness
Besides the first-hand experience of the Swiss refiner, there have been numerous stories in the main stream press also pointing to tightness in the London physical gold market as well as relentless demand from China and India being the driver of that condition:
Gold demand from China and India picks up
Sep 2, 2015
London’s gold market is showing tentative signs of increased demand for bullion from consumers in emerging markets, after the price of the precious metal fell to its lowest level in five years in July.
The cost of borrowing physical gold in London has risen sharply in recent weeks. That has been driven by dealers needing gold to deliver to refineries in Switzerland before it is melted down and sent to places such as India, according to market participants.
“[The rise] does indicate there is physical tightness in the market for gold for immediate delivery,” said Jon Butler, analyst at Mitsubishi.
The move comes as Indian gold demand picked up in July, with shipments of gold from Switzerland to India more than trebling. Most of that gold is likely to originally come from London before it is melted down into kilobars by Swiss refineries, according to analysts.
In the first half of this year, total recorded exports of gold from the UK were 50 per cent higher than the first half of 2014, on a monthly average basis, according to Rhona O’Connell, head of metals for GFMS at Thomson Reuters. More than 90 per cent was headed for a combination of China, Hong Kong and Switzerland.
London remains the world’s biggest centre for trading and storing gold.
(Source)
Shipments and exports are up very strongly and nearly all of that gold is headed to just two countries; China and India.
India Precious Metals Import Explosive – August Gold 126t, Silver 1,400t
Sept 10, 2015
In the month of August 2015, India imported 126 tonnes of gold and 1,400 tonnes of silver, according to data from Infodrive India. Gold import into India is rising after a steep fall due to government import restrictions implemented in 2013.
Year-to-date India has imported 654 tonnes of gold, which is 66 % up year on year. 6,782 tonnes in silver bars have crossed the Indian border so far this year, up 96 % y/y.
Gold import is set to reach an annualized 980 tonnes, which would be up 26 % relative to 2014 and would be the second highest figure on (my) record – my record goes back to 2008.
Silver import is on track to reach an annualized 10,172 tonnes, up 44 % y/y! This would be a staggering 37 % of world mining.
(Source)
With China and India’s combined appetite for gold being higher than total world mining output, it only stands to reason that somebody has to be parting with their physical gold and those entities appear to be substantially located in the US and UK.
When There's No More To Sell, There's No More To Buy
All the above evidence of a tightening physical market for gold is just the tip of the iceberg.
In Part 2: Why Gold Is Headed Higher & May Be Unavailable At Any Price we look at the frightening inventory declines in bullion storage that the LBMA and the COMEX have experienced over the past year.
We then lay out how this deliberate suppression of gold prices by the central planners is destined to end: with MUCH higher prices for gold, and much less availability. In fact, there is high likelihood we will experience a point at which it may be nearly impossible for the average investor to acquire physical gold, as there will be no sellers willing to part with it.
Click here to read Part 2 of this report (free executive summary, enrollment required for full access)
- 90392 reads
- Printer-friendly version
- Send to friend
- advertisements -


It's a nice looking app and all but before I use it I'd run wireshark against it to make sure that somebich isn't leaking info on you to command central.
http://stackoverflow.com/questions/9555403/capturing-mobile-phone-traffi...
Hmmm...you don't sound Amish, even the Reformed wing use SOB instead of writing it out.
"ALPHA-HAMMER"
Now that is one seriously butch name!!
All 3 weeks and 4 days worth............
What a moron. It is much easier to counterfiet FRNs than gold or silver.
Let's see, GLD is selling, China is buying. I tend to follow on what the miners who constitute hui and xau. What I see, over and over is: "we're doing just fine, because we're hi-grading what we mill. Even with the tiny producers I don't see too many shut-downs or moves to maintenance.
Plenty of ounces are pouring into the market
I will agree that there will be a shortage >eventually< but so what? If the premium for ounces gets too high then put your money into quality mining stock, or etf's and when things equilibrate then buy whatever physical you want.
As for manipulation, of course, what in the financial markets is not manipulated one way or another. But no manipulater, be it Mr Gold himself, or the Fed will change the long term trend. And like it or not, the long term trend is down and will stay down for a bit longer. Consider the effect of Greece on gold, and now look to Catalonia's impending vote tomorrow. Does anyone really think that Catalonia will NOT vote to secede from Spain? And if Greece pounded gold down, well, imagine the effect when the world starts looking at the damage to Euro's and world banking in one word it'll be down.
How strange that gold afficianados are almost always bulls. Get with the program folk, the trend is down and it will still be down a month from now. Four months, maybe not. You can make lots of $ in a downmoving market if you buy the right vehicle. Vicious bear markets are every bit as fun as vicious bull markets!
And if you doom and gloomers really want something that's been pounded down consider http://www.bloomberg.com/quote/XRH0:LN, Rhodium physical is down 93%! (though I predict it'll drop even more) C'mon if this is not already a 10 year 4 bagger I'll eat it. But, it does matter when you buy and for now, I'm waiting.
Said the guy who lost his shirt in mining stocks and rare stamps.
Of course I'll be tuning in for updates from you on what the future holds. Wouldn't the smart money be using you for a contrary indicator?
You talk like a man who buys gold for all the wrong reasons.
Martenson has been singing this tune for about 10 years now. I was taken in with this around 2010 and it was a good education but buyer beware on this character he always says "buy gold" even at $1800, and hypes that we'd be paying a fortune for oil. zzzzzzz.
Yes and central banks have been desperate to suppress the gold price for many decades. Who could possibly predict when that will end?
-- Was the Banque de France's director of market operations, Alexandre Gautier, telling the truth when he told the London Bullion Market Association meeting in Rome in September 2013 that the bank is secretly trading gold for its own account and the accounts of other central banks "nearly on a daily basis"? (See: http://www.gata.org/node/13373.)
-- Is the Bank for International Settlements telling the truth when it maintains in its annual report that it does the same sort of secret trading on behalf of its member central banks, trading not only gold itself but also gold futures, options, and other derivatives? (See:http://www.gata.org/node/12717.)
-- Is the BIS sincere when it advertises that it undertakes secret interventions in the gold market for its members? (Seehttp://www.gata.org/node/11012.)
-- Was CME Group, which operates the major futures exchanges in the United States, telling the truth last year when it told the U.S. Commodity Futures Trading Commission that it is offering volume trading discounts to central banks for secretly trading all contracts on its exchanges? (See http://www.gata.org/node/14385.)
-- Was CME Group telling the truth last year when it told the U.S. Securities and Exchange commission that its customers include governments and central banks? (See http://www.gata.org/node/14411.)
-- If central banks are indeed doing so much secret trading in the gold market and other markets, what are their objectives and might this secret trading be intended to manipulate markets, support government currencies and bonds, and deceive and cheat investors who think that markets are free trading?
There is a lot more documentation suggesting as much here:
http://www.gata.org/node/14839
Whatever. M Armstrong has been making accurate calls on US stock market shares, oil, and gold. There is a time to buy and sell. Martenson has been giving shit advice even if you took the bait and refuse to acknowledge it. His crash course is unrealistic as well. It will be Dog Eat Dog if the house of cards collapses. Martenson says form a community to share barter food you grow --what a laugh.
I'd also suggest you read Armstrong on "gold manipulation" for a different perspective. You can stick to your manipulation story and I respect that, you are a good man and we may have only slightly differing opinions, but for shits and giggles read Armstrong's take on manipulation. I find his perspective more compelling.
I wonder how many times Martenson has been to China, probably zero. I know I've said this before and it doesn't need to be repeated but among the hype about China being this incredible market for gold gold gold and the people there just buying all they can get. I purchased a ticket and went to HK, Shanghai and Beijing with the express purpose of seeing with my own eyes and I found in Hong Kong gold shops EMPTY and good prices. I found in Shanghai a "gold mall" with easily 1000x (one thousand times) the amount of physical gold I've ever seen in one place (and I've been around many an LCS and coin show). This mall was also EMPTY. In Beijing I met colleagues who said "no, gold, chuckle chuckle, you can find elderly people who buy that but the new generation doesn't buy". So there you have it. Govt buying gold is another story but pedestrian demand is a big goose egg in China.
Gold purchasing in China has a distinct pattern.
Seasonal.
Intriguing pov none the less.
I find Armstrong to be one of those who hand pick data to make himself look relevant. Not believable in my estimation. A super computer program enabling him to predict markets really stretches the imagination and doing time in prison and then getting out early as a gold basher just don't add up.
As for your findings from a trip to China, how could you possibly know anything about a country with a simple plane trip to a country of over a billion people?
In summary I follow people who carefully analyze markets and base their conclusions on LOTS of research, like GATA and Koos Jansen at Bullionstar.
The importance of gold will not be known to the average American citizen until the United States finds itself at extreme odds with a large foreign power - i.e., something just short of an outright military confrontation, where economic 'nulcear options' are deployed in response to aggressive/threatening economic and/or military actions towards said foreign power/s, by the U.S. And at the rate geopolitical sides are lining up now, I'd wager that opportunity is simply waiting in the shadows to be deployed.
The average American has no idea whatsoever, just how fast and how drastic his standard of living is going to drop when this all goes down, in probably a time frame of 30 days or less once it gets rolling.
-
---
Two things.
1) Under your scenario of some sort of global macro event whereby the US is misaligned with a large soverign, then gold won't mean a damned thing. You want food and shelter. Gold will be bullshit. What are you going to do with it? What you want is 1000 cases of mini liquor bottles and cartons of cigarettes. Food you do your best to keep for yourself and family.
2) Regarding the standard of living dropping for Americans. It will pale in comparison to how people in other countries will suddenly find themselves.
I have a saying. Armageddon is a localized event. For example. Syria...
2) Regarding the standard of living dropping for Americans. It will pale in comparison to how people in other countries will suddenly find themselves.
A lot of countries are already living hand to mouth with no luxuries, they are used to it. Any standard of living drop will be felt exponentially harder by the majority of Americans simply because they have had it so easy for so long compared to most of the world, and have much farther to fall. Countries with haphazard supply chains will survive a supply chain collapse far better than countries who rely on complex systems for daily restocks.
Yup.
How many food stores in the USSA are stocked by local producers? About none, I'd guess.
In Indonesia, where my wife hails from, outside the cities you get your food at the local outdoor market, sold by the guy who grows it or catches it. Not much of a supply chain to disrupt there.
Yup,
Much to the dismissal of gold and silver bugs, if there is a global macro event, their piles of precious won't be worth much.
They don't realize when such an event occurs, it's a BUYERS market. And the BUYERS of their gold will ONLY be a few other people who also BELIEVE in the magical value of gold. If they try and sell it to people who have goods and services to trade, chances are those people don't hold gold in such high esteem. That means if they do accept it, it will be HEAVILY discounted.
The bugs go on to point out events like Argentina and Zimbabwe. The difference is those were LOCAL events, and there remained a robust market for gold outside of those countries. A GLOBAL event means there is no other market.
A great example is that in the crash of 2008 (which ended up being global), what happened to PM prices? They CRASHED also. Why is that? Using gold bug's logic, PMs should have soared. Yet PM's didn't soar.
Of course every gold bug will down vote this post. Just becasue they have religion (of gold) doesn't mean they're right.
Give it 4-5 years and gold holding used as collatteral will yeild 2-4% by having it in the right bank.. this does entail risk... although The new banking that is coming. I believe that it will take $1m in metals to be able to get into that game.
Soon enough, when the .1% will start to lose money in the casinos of Wall street, they will get as much PM's as they can get their hands on.
Fair warning boys & girls...there will be a few less pounds available come monday night!...I intend, to purchase as much gold & silver, my "powerball" winnings will afford me!
don't say you wern't warned
Why Monday?
Gold i interested in, is the one i can hold on my hand. I never found gold retail store that refused gold that i sell. The real kind of gold.
If you want paper/ETF gold? Be my guest..
Anyone have some advice for purchasing rental property? Particularly a duplex in the Midwest or East cost? I live in California and investing in real estate around here is way over my budget. I have physical metals in my portfolio, but was wondering if I should go into real estate or stick to what I have and wait to see what happens. Much appreciated.
Yep - rental property is a lot like precious metals.
It is something you own and control, and if/when
Inflation hits, your rents will go up, but your
purchase price remains the same.
Try to find properties close to where you live, and
make sure you have a good: Handyman, Plumber
A/C guy, and Electrician at hand.
Also make sure your rental properties are in a good
School district - that will command a premium.
Where I am, a $180,000 property will yield $1500
a month in rent. That, and the tax breaks will give
you good return. I'm not sure about other areas,
but that metric has been working well for me.
Please tell me where you are. 10% pre-tax return?
I have owned residential rental apartments for 30 years. Without counting capital repairs, I get 5% pre-tax return based on the current market price for the buildings (not what I paid for them). I am in Northern NJ.
I hear you.. I'm dropping to 2.4% net... farmland, cash rental
What happened to the Rentiers in France during the French Revolution???? When the government states; reduce rent, as has been done by a U of Illinois Ag Department publication, one better listen (read) and act accordingly. Rents down to $300-320 acre, tax included, so that they can pay for all those new John Deere tractors and combines the bought two years ago.. oh and John Deere told its dealers to reduce used inventory prices so that the stuff could be exported.. Do you like those beans..
Residential Rental will hear it next and local government will force rollbacks or hike taxes.. Yes it is the inelastic economy, the base, but when the luxury economy items fold, the base has to take up the slack.. TAXES ARE DEMANDED AND WILL BE PAID BY THOSE THAT CAN bottom line ever time (eventually), as the hold out only makes it hurt harder.
Watch as the tax deduction for US and muni bonds gets a cap.
More Gold. Just in case. Just in case of what?
You better have a shitload of money, to buy an army to protect your gold. And a farm to feed the army. And another army to protect you from the first army.
Phyzz AG boyz, phyzz AG.
2006: Max & Stacy Amazing Dancing Act ‘Buy Gold!’ https://www.youtube.com/watch?v=rdlOnpAwo_Y
While this article add a few new tidbits of info this mess has been going on for quite a while and has been discussed endlessly elsewhere. See:
http://jessescrossroadscafe.blogspot.com/
http://www.tfmetalsreport.com/
http://www.kereport.com/
plus other sites.....
Last I heard we crossed the 225 ounces of paper gold to "deliverable" real gold and there is no end in sight to how high it goes. As the Federal Gov allows naked shorting in the gold market this will continue till it doesn't. The process is simple, someone or some organization dumps tens of thousand of paper gold contracts on the markets and the price falls. Once the price falls stops are blown out in positions and the sellers buys up the contracts at a lower cost and on and on it goes. My guess is the next hit will be early Monday morning but you never know when this will happen again.
As the gold moves from weak to strong hands this will be harder to do but somebody has made a ton of money in the last couple of years doing it. They will continue to make money on the process till one day they will dump the contracts and the price will go down a bit then shoot back up. That's when the shorts will feel real pain. Just as the paper system can push prices down it can shoot them higher. Somebody is playing a very dangerious game with these naked shorts and when it comes to an end they best have very deep pockets or all hell is gonna break loose.
By the way, the same thing is true for silver - you simply cannot buy silver at anywhere near the spot price and many dealers are out of supply of coins and bars for months to come.
Just remember the precious metals markets aren't price discovery systems, they are price setting systems and the madness swings both ways -
The one caveat in all of this, far too often these articles are written and promoted by people who want to SELL YOU THEIR GOLD!!
Everybody talks gold, but its silver that's......
An assumption I see as false is paper price explosion when physical is gone. The bankers will let the physical black market explode higher and they will force paper to stay low. The comex will become a fiat system, if you want delivery, you'll get federal reserve notes. When commoners exchange enough dollars for real gold, confiscation at the paper price will occur. There is no future in gold unless there is a coup in government and coup of banks. Good luck. Own real assets that are not money... Diamonds, tools, land, palladium, titanium, etc.
OMEX is a FIAT system.. when things get out of balance, to many take deliveries, the pay a premium for those that demand the gold as outlined in the Frank -Dodd act, yup, Frank -Dodd says you get fiat money instead of gold if they can not pay out... and if they want mor gold they will go to the registerd bullion holders at take it for what COMEX says is fair. Coin is somewhat exempt and to totally exempt it, do not put it in a bank vault, put it under a land mine (tank to be sure).
Why would anyone want "PET ROCKS"? HEH HEH HEH. _JOHNLGALT