“Holy Grail” Gold Evidence Panics Western Central Banks

[Serpo]

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/12_Holy_Grail_Gold_Evidence_Panics_Western_Central _Banks.html

[chad]

thanks for the link, however, i have to downplay my excitement about 70% seeing as it's eric king.

[mamboni]

thanks for the link, however, i have to downplay my excitement about 70% seeing as it's eric king.

Eric King's propensity towards hyperbole and sensationalism notwithstanding, this is a very important revelation. The 1999 IMF document establishs circumstantially that central banks are swapping and lending gold. The IMF is seeking to have gold entries broken out to clearly determine physical gold holdings. Now this is all the way back in 1999. And we know the London Gold Pool operated in the early sixties until the central banks could no longer cap gold at $35. We each have to draw our individual conclusions from this and other facts and evidence in deciding what it means to gold. IMHO, the central banks are holding only a small fraction of the gold bullion they claim as physical bullion. Most has been swapped out or leased never to return at today's prices. The central banks work hand in glove with JP Morgue and HSBC to short the gold market and precipitate sell-offs into cascaded stops. This creates enough price volatility to discourage gold investment and discredit gold as prudent and safe. But notice that the banks have been in slow tactical price retreat since 2001. They are managing the rise in gold price in an attempt to prevent a 1980's style price explosion. So far they have been successful.

Time is running out for the gold price suppression game for two big reasons. One, China, specifically Hong Kong, is entering the physical gold trading market and will soon break the COMEX monopoly on price discovery. And Chinese gold purchases(imports) have been ramping up each year and China has surpassed India as the world's number one gold consumer. Two, Geithner and Obama have indicated their desire to eliminate the debt ceiling. This administration has absolutely no intention on pursuing budgetary discipline and austerity. It will spend and deficits will roar at $1-2 trillion per annum for years. Tax increases will actually crush businesses and decrease tax receipts as money velocity drops to below levels seen during the Great Depression. You add it all up: central banks holding record paper debt and very little gold, China positioning herself to give the world a new reserve currency backed by gold, and a US government that is fiscally bankrupt with absolutely no prospects for economic recovery. This portends dollar inflation and devaluation and much higher gold prices in the next few years. More importantly, a dollar crisis can precipitate at any time now. And the only safe asset in such an event is physical gold and silver held in your possession outside of any financial institution.

And yes, I mamboni wrote this!

[gunDriller]

And the only safe asset in such an event is physical gold and silver held in your possession outside of any financial institution.

And yes, I mamboni wrote this!

guarded by Lead, Spitwads, and highly-trained Ninja Chickens.

http://www.gagbay.com/images/2012/11/ninja_chicken-174588.jpg

not necessarily in that order :)

[Libertarian_Guard]

Mamboni

I can't disagree with any of this, except your implication of 'soon' as it relates breaking the COMEX price discovery charade.

I say this, because it seems to me that china now has a vested interest in continuing this charade, if they wish to continue buying physical at a discount.

[chad]

where is beefsteak when i need him most?

[mamboni]

Mamboni

I can't disagree with any of this, except your implication of 'soon' as it relates breaking the COMEX price discovery charade.

I say this, because it seems to me that china now has a vested interest in continuing this charade, if they wish to continue buying physical at a discount.

Yes, China is gaming the market to buy discount gold today. But they are buying gold with a long time goal: to dethrone the US dollar and issue the world's next reserve currency, a gold-backed yuan.