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Gold, Silver & BiTCoin [Copy link] 中文

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Post time 2013-4-15 22:36:38 |Display all floors
This post was edited by gork at 2013-4-15 22:41

Bloomberg has actually highlighted the text in the Cyprus agreement where it specifies "excess" gold reserves should be sold, whereas the likes of the Daily Telegraph have merely quoted the wider text.

The specification of "excess" implies a rule to determine when your holdings are excessive. For example, if you repeatedly give someone a gold coin and ask is that enough, they will never say "stop". Some years back, under the Washington Agreement for gold sales, one nation was "caught" buying back gold and they claimed it was merely an "adjustment", again hinting at a rules-based scheme for gold holdings.

Along with Germany, France, Italy and Spain all legislating for a balanced budget and therefore sound money, this is another hint at a new gold standard. Both China and Russia have called for a "supranational" currency and a more equitable monetary regime rather than the "exorbitant privilege" of the dollar backed by nothing. Also, VAT has been removed from gold since 1999. Other clues include Germany's repatriation of gold. The propaganda claims that it was held at the NY FED as well as other locations to avoid seizure by Russia during the Cold War. Yet the Cold War was an assault on Russia and China, who refused to accept the dollar, not the other way around. Unmentioned is that the IMF is a loan-shark consolation prize for the runners-up in WW2 and that members are banned from backing their currencies with gold. Holding other nations' gold at the US FED, then, is enforcement of this rule. Increasingly, nations are dumping the dollar for trade, including Australia, Japan and the UK, suggesting the US, history's worst ever debtor, has accepted the end of dollar hegemony.

The 3.9 tonnes that Cyprus would be left with and representing 0.2% of the EU economy, suggests the EU as a whole should back the euro with about 1950 tonnes of gold. This would be about €40,000 euros per ounce as under a competitive currency regime, no nation would be able to impose a partially backed currency as the US did in 1914, specifying only 40% gold backing.

Some have suggested the US must get out of its current debt problems with a massive, one-off revaluation of gold, so that it's alleged gold holdings of 8134 tonnes can be used to cover its debt in the same way that Cyprus may do. But records show that thousands of tonnes of gold have already been exported by the US in recent years, shipped as "gold compounds" but which were 99.9999% gold. Given this, the US would ALSO have a gold price of about $40,000. The UK too has a monetary base of about £400bn and 310.3 tonnes of gold suggesting a gold price of £40,000. This suggests that the pound, dollar and euro are targetted for parity under the new monetary regime, just as soon as Mark Carney takes over in July at the BoE (apparently, the BoE staff have been caught scouring the web for ways to buy into gold).

The recent smashdown of precious metals in the absence of any reason for the prices to fall and with both the FED and the BOJ printing massive amounts of fiat currency, suggest both JP Morgan and HSBC (US) are caught in a short-squeeze and have to hammer the price of both metals down before buying back prior to the massive one-off revaluation. As well as that possibility, it's obvious the BoJ has started a massive $76bn a month in money printing to support the dollar. Announcements include the plan to buy, not JGBs, but US Treasuries and the only possible exit strategy is to run a balanced budget until the debt is paid off. So herding the sheeple out of commodities and BiTCoin and into assets that won't protect against inflation (shares, bonds, property or cash) looks like a policy to socialise debt. They can't short BiTCoin so they hacked it instead. Incidentally, BiTCoin is a faith-based currency, so if the attack can be deemed successful, then the value should have fallen to zero. Fiat currency is also faith-based but with the possibility of limitless supply, there's no faith so the FORCE acceptance with legal tender laws. The year-long slump in the precious metals prices follows on from JP Morgan's seizure of clients' assets at MF Global and PFG Best, with one hedge fund manager helpfully appearing on the Keiser Report to claim that she'd given all her clients' money back and claiming that the futures market (spot prices in the US are for gold futures rather than a physical market) could no longer be trusted. That in turn followed CME repeatedly raising margin requirements on first silver and then gold. The current smashdown started on the bank-holiday Monday when markets were supposed to be closed and most recently with a big take-down on a Friday. In other words, the gangsters are not even trying to hide the fact that they're manipulating prices because the intent is to herd the sheeple out.

But with all other asset classes massively over-priced already, there is nowhere else to go and only the most gullible suckers would be panicked into selling at this point. To do so would be to buy high and sell low. As Marc Faber has said, "I love the fact that gold is finally breaking down because that will offer an excellent buying opportunity," and Jim Rogers has long-anticipated the smashdown, saying he hoped he would have the good sense to buy more gold. Anyone who hasn't already sold with the intent to buy back should now, instead, hold or buy as even the propaganda admits that inflation is inevitably to come. I've lost thousands on gold but I haven't even bothered looking at how much. My main concern is getting more funds available in time to buy even more.
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Post time 2013-4-16 15:59:46 |Display all floors
The Telegraph claims, "Panic selling triggers biggest gold price drop in 30 years" and "Panic selling forces gold to two-year low". Yet this latest sell-off started on the bank holiday Monday when retail investors didn't even have access to the markets. The Guardian, however, featured a poll, "Is gold no good?" and NOT ONE of the posters were fooled.

"Can't you understand what's happening here? Don't you see what's happening? Potter isn't selling, Potter's buying and why because we're panicking and he's not, that's why! He's picking up some bargains. Now we can get through this thing alright. We . . . we've got to stick together though. We've got to have faith in each other."
- It's a Wonderful Life.
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Post time 2013-4-21 20:33:44 |Display all floors
Things to note:

gold and silver prices move in tandem, highlighting the fact that prices are rigged. Cyprus was not asked to sell any silver, for example. So it looks like the currency markets, large as they are, are the ones being manipulated which would also explain the "risk-on; risk-off" BS, where all assets move in unison and with the propaganda claiming that holders of shares dump gold in order to make good (for whatever reason) on their looooosses.

Some have noted a high premium for gold (and probably silver too), such that there was effectively NO FALL in prices for physical metal. One alternative may be to buy a gold ETF at these low prices and wait until the premiums have fallen.

Anyone holding ETF precious metals can trade them to offset any looooosses. My trading hedges my main investment on the downside and leverages on the upside as I accumulate shares (which compounds).

The smashdown came after 18 months when gold and silver prices have been kept within a channel and with GATA reporting that the CRIMEX is running out of stock. Charts by sharelynx.com appear to confirm that stocks are being run down ("Paper-Gold Holders Flee To Real Metal "). There are also rumours of similar squeezes at the LBMA. The steady price occured as Venezuela and then Germany demanded their gold back, suggesting the gold had to first be purchased. After all, if the U.S. has the 8134 tonnes of gold at Fort Knox that they claim, wouldn't they want a higher price?

Remember Brown's Bottom smashed the gold price by 10% from the time of the announcement to the first auction. We now know Germany had asked for several hundred tonnes back at this time and it looks as though the price was smashed in order to buy gold to meet this demand. There's still no explanation for why it takes 7 years for Germany to get her gold back from the NY FED and several years to get it back from Paris too.

The reason the FED made QE infini3 and QE 4Ever indefinite was so that they didn't have to announce QE5, 6, 7, 8, 9, 10 . . . 23 as Marc Faber said. They then had to counter the impression that these were indefinite by immediately discussing an exit strategy. Given the massive debt which causes deflation as the debt is paid off and the debt and credit cancel each other out, there's no possibility to end QE until public and private debt levels are massively reduced, possibly even running a balanced budget.

Jim Rogers has said he expects the price to fall lower. This could be similar to the drone attacks on innocent civilians; the double-tap.
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Post time 2013-5-12 20:49:27 |Display all floors
This post was edited by gork at 2013-5-13 20:38

Mine supply, according to the U.S. Geological Survey, is pretty much unchanged over the past 12 years — from 2560 metric tonnes in 2001 to 2700 metric tonnes in 2012.
- The hidden crisis in the gold business

Gold imports by China from Hong Kong more than doubled to an all-time high in March as buyers in the biggest consumer after India boosted purchases. Mainland buyers purchased 223,519 kilograms (223.52 metric tons), including scrap, compared with 97,106 kilograms in February, Hong Kong government data showed yesterday.
- Gold Fluctuates After SPDR Assets Shrink to Lowest in Four Years

So annualised, China alone IMPORTED the ENTIRE mining supply of the World, plus her own domestic mining production which is banned for export by law and would overtake India if maintained for the full year. This was in March BEFORE the smashdown in prices by the institutional investors who sold off from the fraudulent ETFs, using "other people's money" and with JP Morgan making the outrageous suggestion that gold should be shorted. Retail investors, meanwhile, are buying in droves around the World. The smashdown, then, suggests western banksters are caught in not just a short squeeze, but a short-squeeze so large they can't cope with it except by this massive fraud. It looks like they've been dumping gold ever since it went parabolic in Aug 2011.

In fact, the LBMA and ABN Amro have already defaulted on gold payment in early April, just as FDR did in 1933 when he abrogated ALL gold clauses and Nixon did in 1971 by "closing the gold window"; the biggest default in all of history:

FACT #2: One of the largest European banks, ABN Amro, defaulted on their gold contracts and informed their clients that they would only settle their gold bullion contracts in cash and not in physical. So much for the supposed legality of financial contracts as a "binding" contract.
. . . .
FACT #3: Silver fraud whistleblower and London trader Andrew Maguire stated that the LBMA was having trouble settling gold contracts in bullion as well and stated that institutions that asked for physical settlement “were told they would be cash settled instead by a bullion bank.”

- Are We On The Verge Of Witnessing The Death Of The Paper Gold Scam?

Indian imports reached more than 100 tons in April, now valued at $4.7 billion, and shipments probably will top that again this month, according to refiner MMTC-PAMP India Pvt.  The country’s gold imports were 860 tons last year, the London-based World Gold Council estimates. Consumption in China rose 26 percent in the first quarter from a year earlier, the China Gold Association said May 7.
. . .
“People are still lining up in China and India to buy the physical gold,” said John Kinsey, who helps manage about C$1 billion at Caldwell Securities Ltd. in Toronto. “Europe has got a stimulus program. The U.S. has a stimulus program. Japan has a stimulus program. You’d think there would be huge inflation coming with all this debt that’s being printed.”

- Gold Bears Pull $20.8 Billion as BlackRock Says Buy: Commodities

Imagine a whopping 26% increase in oil consumption. Usually, they mention a blip of about 0.1% on a daily volume of 90m barrels as the excuse for whether oil prices rise or fall; nothing like 26%. And yet, the price of paper gold falls! You can't make farce like this up!

Price inflation isn't guaranteed because the monetary base (monetary inflation) is being expanded at 30~40% p.a., it's guaranteed because the debt levels are so high.


The indian Akshaya Tritiya festival is this Monday, making the April shashdown even more absurd. It's like jumping off a building and falling upwards, as farcical as the dual gold price under LB Johnson. It also suggests the gold (and silver) ETFs will have to default too. This shouldn't come as a suprise as most ETFs block small investors from accessing the physical gold that allegedly backs their shares, suggesting re-hypothecation.

Incidentally, silver prices have been marching in lock-step with gold, suggesting the smashdown was really a smash-up of the entire paper currency market en masse and with all those international currency swaps used to stabilise paper currencies vis-a-vis one another.
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Post time 2013-5-14 13:42:56 |Display all floors
Even MORE Buying

New reports have suggested that Chinese housewives (affectionately known as ‘aunties’ according to the Beijing Daily newspaper) have purchased as much as 300 tons of gold in the past three weeks alone, worth almost $16 billion USD.
- Eric Sprott: The Golden Answer To Chinese Import Data

So EVEN MORE than March's 223.5 metric tonnes and in just 3 weeks. And on the horizon is the bursting of the stocks and shares bubble. Imagine all that excess cash fleeing. Where might it go?
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Post time 2013-5-16 13:44:12 |Display all floors
This post was edited by gork at 2013-5-16 14:17

And yet, the price of gold AND silver have been smashed down again.

It doesn't even make sense that both march in lock-step. But then neither does falling prices with QE infini3 and QE 4 ever, JP Morgan suggesting shorting gold even as it runs out of gold and zero interest rates with bonds offering a guaranteed loss even by official statistics.

In other words, the banksters want to stop you protecting yourself in this Great Confiscation and WANT you to know it so that you're herded out of precious metals.

But like the illegal war of aggression against Vietnam, these gangsters leave you no avenue of escape. Vietnamese women and children took up arms against the amerikan thugs because they had nowhere else to go.

Shares are offering negative real yield as are bonds. Property is six times average incomes and only sustained by the ridiculous zero interest rates. Cash is being printed to infinity and the UK, NZ and others are discussing the Cyprus option as under sound money (possibly a gold standard) the CB can't bail out the banks, so they have to be "bailed in" by creditors and faux depositors. So only commodities remain and central banks are lining up to take back their gold, whilst LBMA, ABN Amro and soon, JP Morgan are defaulting on gold. Silver is also taken down as it's an alternative. Platinum too, but palladium is largely left alone. If fine art were accessible to the masses, that too would be attacked.
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Post time 2013-5-17 02:56:24 |Display all floors
This post was edited by gork at 2013-5-17 02:57

Gold demand dropped 13 percent to the lowest in nine years in the first quarter as record exchange-traded product sales by investors outweighed a surge in buying from China and India, the World Gold Council said.
. . .
While central-bank purchases fell 5.2 percent, they totaled more than 100 tons for the seventh straight quarter.
. . .
Investors sold a record 182.1 tons of gold through ETPs in the three months through March, data compiled by Bloomberg show.

- Gold Demand Slid 13% to Nine-Year Low on Investors’ ETP Sales

Hmm! So a total of 182.1 tons in three months sold by banksters (using other people's money) somehow "outweighed" a jump from 90 tons to 224 tons in March alone and another 300 tons of imports in the last three weeks, all by China alone plus India importing 100 tons a month and a world-wide gold rush plus a seventh quarter of CB buying! The farce continues! What IS interesting is how little the banksters can control a commodity such as gold when there's physical demand. The "official" paper gold price is now nothing more than fiction. Premiums for physical are rocketing and eBay prices haven't fallen at all. Only ETF and futures prices are under bankster control. This is similar to claims that Argentina's official FX rate is far lower than the black-market rate. Is it any wonder that the banksters fight so hard to protect paper currency?

The paper gold price (and silver) is now down to the cost of production as the banksters try and terrorise the sheeple out of precious metals!  With shares, bonds and property all in bubble territory, never has there been a more obvious free lunch than selling bonds and shares and buying gold and silver, but with the ridiculous low prices, it's why you have to be in the markets for the long term. The smashdowns now occur on cue as the London and then New York markets open and with the graphs for gold and silver almost identical. Soros is amongst those dumping paper gold, meaning he's bought high and sold low.

The markets may stay irrational longer than you can stay solvent, but with the LBMA and ABN Amro already having defaulted on physical gold delivery and JP Morgan's supply down to about a ton, it looks like the banksters are the ones who can't stay solvent. As one wag put it a few years ago about silver, it's so unwanted you can't get any.  Germany must be wondering if they'll ever get their gold back.

Meanwhile the gangsters have attacked BitCoin again:
The US Department of Homeland Security seized a payment processing account Tuesday belonging to Mt. Gox, the largest international Bitcoin trader, claiming the monetary exchange service falsified financial documents.
- US seizes top Bitcoin exchange as crackdown begins
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