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View Full Version : So... what's gold REALLY worth? - FOFOA



Ragnarok
4th August 2010, 09:08 PM
Much more than you might think, or that some would care (or want) to admit...

Much deep Thought to ponder here:

http://fofoa.blogspot.com/2010/08/re...ld-really.html

Snip:

"...Then, in October of 1997 at the internet's only gold discussion forum of the day, a series of remarkable postings began appearing under the pseudonym "ANOTHER", offering plausible answers to those questions…

"Knowledge as is conveyed in his series of "THOUGHTS!" is rarely to be found outside the highest levels of international finance...”

Date: Sat Apr 18 1998 19:18
ANOTHER (THOUGHTS!) ID#60253:

"What Is The Real Price Of Gold IN The Central Bank World?"

The one that posts using SDRer, has shown many times how "Gold Value" is used in international trade. What cannot be seen is the value of gold in the "INTERBANK" world. Here is the realm of "true valuations" in paper currency terms. It is a real shocker for lesser eyes.

In this modern world, the current value of every asset is formed by a relationship of gold/currencies/oil. This cross relationship is the "very basis of our modern world banking system"!

Through this basis, all currencies are given value as the local government treasuries hold US$ as reserves. The US$ is given backing as its government is guaranteed that all crude oil, worldwide, will be settled in dollars. An oil reserve backing, if you will. And the "value" that the "future supply of" currency traded "oil" imparts to the world economy, is guaranteed by an "INTERBANK paper gold MARKET" that values "physical bullion" in the Thousands!...

But, how can this be, you ask? It is done, "right before your eyes" and we see it not! I ask you, if you have one ounce of gold, and sell it on the market for $300, it is worth $300, yes? Now, what if a CB holds one ounce of gold, and sells it twenty times, that one ounce is now worth $6,000, no? The difference between you and CB? The persons that hold "interbank" IOUs for gold, value them at the multiple of leases/sales made against reserves. This leverage, it is held for performance on bank part. The BIS, it forces performance, on any economy! You ask Korea about gold, yes?

This is why oil can take a small amount of physical gold out of world supply, at current "freely traded", "managed prices", and hold it at a many times valuation. That is what gives this "new world gold market" much value in trade at high levels. Look even at your "Comex", and divide the daily volume by the "eligible stocks for delivery". That number (perhaps three million ounces divided by 150,000 stocks), deliverable, times the spot close gives close, real world price of physical, $6,000. It follows close to paper trade on LBMA.

You see, "physical gold is of much greater value than public traders can move it for"! In your world, this cannot be, but it is, and will show for all to see in your time."

fyi, R.

mamboni
4th August 2010, 10:06 PM
Wow - that link is loaded with some revelatory info gold, the basis and the dollar crisis. I would post some of it tommorrow: it's off to bed for me now as I have a 7:30 AM conference!

Thanks for the fantastic link Ragnarok!

Libertarian_Guard
4th August 2010, 10:16 PM
Ragnarok

Your link is not working for me.

BTW I have not heard a word about or from "another" but I remember it being quite a splash when it broke.

Ragnarok
4th August 2010, 11:18 PM
Try just using this as the link: fofoa.blogspot.com
The latest article should come up. There is a content panel to the right, the August 2010 article is the one referred to, titled "Relativity: What is Physical Gold REALLY Worth?"



BTW I have not heard a word about or from "another" but I remember it being quite a splash when it broke.


"Another" and "FOA" (Friend Of Another) were two most intriguing posters (out of many) on a forum that unfortunately (and to this poster inexplicably) no longer has a public posting section. However, the forum's entire contents of public postings is still available to interested researchers.

Bigger snip, from link that follows:

"When the once highly secretive London Bullion Market Association (LBMA) -- its venerable membership comprising the world's largest gold dealers -- published its daily clearing volume for the first time in January 1997, it rocked the tight-knit world of international gold traders and analysts.

According to this first of many subsequent LBMA press releases, thirteen hundred tonnes of gold (representing more than 50% of the world's annual mine production) changed hands daily in this fog-shrouded center of the global gold market. This figure represented over $10 billion per day and $4 trillion per year in bullion banking activity!

The gold market had always stood in austere, quiet contrast to the highly charged, mega-volume world of stocks and bonds. Now this first LBMA report forced analysts, investors, and brokers to reassess their understandings of the gold market. While some revelled in the glow of the large LBMA numbers, others began to raise some very important and rather unsettling questions. First, Why was this much gold on the move? Second, Where was all this gold going? And third, Where was all this gold coming from?

Then, in October of 1997 at the internet's only gold discussion forum of the day (hosted by Kitco), a series of remarkable postings began appearing under the pseudonym "ANOTHER", offering plausible answers to those questions. What followed in a seemingly incongruous stream of thought over many months was, in the fullness of time, seen to blend into a logical whole by many astute readers following the complete text. If you are not similarly moved to at least reassess your own view of the international financial scene after reading what's revealed below, then you are either firmly entrenched in your world view, or you've been numbed by too many hours of Wall Street's cheerleader (CNBC) and too many Friday nights with Louis Ruykeyser."

Oh, so much more to be found in the archives at http://www.usagold.com/goldtrail/

I'd suggest downloading/saving/reading them.

fyi, R.