ximmy
27th December 2011, 10:42 PM
Major Gold Market Changes Coming in 2012
December 27, 2011 By Patrick A. Heller (http://news.coinupdate.com/author/path/)
What will have perhaps the greatest impact on the gold market was just revealed within the past ten days. A London metals trader recently reported that the Chinese government is aggressively negotiating with multiple gold mining companies to purchase their entire gold output on long-term contracts. This is the same London trader who spilled the beans in 2003 that the Chinese were buying gold reserves, which was not confirmed by the Chinese nor reported by the mainstream financial press until 2009. He is definitely in a position to observe such activity and has a stellar record of accuracy....
Even if the Chinese don’t sign contracts to tie up mine production, there are still lots of brewing calamities that could cause prices to rocket upward in 2012. Among them are:
The failure of one or more of the world’s largest banks
The outright debt default of one or more significant national governments
The US government takes further steps toward seizing the assets of private retirement accounts
A default in delivery by a sizable gold or silver exchange traded fund
A declaration of force majeure and the inability of the COMEX or London markets to continue operations
More concrete evidence that the Federal Reserve and other major central banks do not have all the gold reserves that they are reporting as being in their vaults
A continuing major downturn in the US real estate market
If governments around the world are uniformly unsuccessful at achieving major spending cuts
A detailed report of how and where hundreds of millions to billions of customer dollars were effectively stolen in the MF Global Holdings bankruptcy
Huge inflation of the money supply by major nations
Gold and silver prices have been knocked down enough over the past few weeks to cause even the most ardent owners of physical precious metals to question the strategy of owning gold and silver. If you simply realize that no magic cures for the world’s financial woes have been achieved, and if anything, the troubles are getting worse by the day, I think you will feel more comfortable maintaining your gold and silver positions.
Instead of dumping your precious metals holdings, I urge you to make them more secure. If you own shares of a gold or silver exchange traded fund because of the convenience, sell them off and replace them with physical metals under your direct custody and control. Do not store physical metals in unallocated accounts. Convert any certificates into physical metals—while you still can.
Assume that any form of “paper” gold or silver ownership is at risk of loss, just like those who held such accounts at MF Global Holdings. Once you have secured your positions, you will be able to sleep better at night during 2012. Happy New Year.
More at link:
http://news.coinupdate.com/major-gold-market-changes-coming-next-year-1130/
December 27, 2011 By Patrick A. Heller (http://news.coinupdate.com/author/path/)
What will have perhaps the greatest impact on the gold market was just revealed within the past ten days. A London metals trader recently reported that the Chinese government is aggressively negotiating with multiple gold mining companies to purchase their entire gold output on long-term contracts. This is the same London trader who spilled the beans in 2003 that the Chinese were buying gold reserves, which was not confirmed by the Chinese nor reported by the mainstream financial press until 2009. He is definitely in a position to observe such activity and has a stellar record of accuracy....
Even if the Chinese don’t sign contracts to tie up mine production, there are still lots of brewing calamities that could cause prices to rocket upward in 2012. Among them are:
The failure of one or more of the world’s largest banks
The outright debt default of one or more significant national governments
The US government takes further steps toward seizing the assets of private retirement accounts
A default in delivery by a sizable gold or silver exchange traded fund
A declaration of force majeure and the inability of the COMEX or London markets to continue operations
More concrete evidence that the Federal Reserve and other major central banks do not have all the gold reserves that they are reporting as being in their vaults
A continuing major downturn in the US real estate market
If governments around the world are uniformly unsuccessful at achieving major spending cuts
A detailed report of how and where hundreds of millions to billions of customer dollars were effectively stolen in the MF Global Holdings bankruptcy
Huge inflation of the money supply by major nations
Gold and silver prices have been knocked down enough over the past few weeks to cause even the most ardent owners of physical precious metals to question the strategy of owning gold and silver. If you simply realize that no magic cures for the world’s financial woes have been achieved, and if anything, the troubles are getting worse by the day, I think you will feel more comfortable maintaining your gold and silver positions.
Instead of dumping your precious metals holdings, I urge you to make them more secure. If you own shares of a gold or silver exchange traded fund because of the convenience, sell them off and replace them with physical metals under your direct custody and control. Do not store physical metals in unallocated accounts. Convert any certificates into physical metals—while you still can.
Assume that any form of “paper” gold or silver ownership is at risk of loss, just like those who held such accounts at MF Global Holdings. Once you have secured your positions, you will be able to sleep better at night during 2012. Happy New Year.
More at link:
http://news.coinupdate.com/major-gold-market-changes-coming-next-year-1130/