Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
well, JPM has almost no physical gold left at the COMEX, coincidence?
;)
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
FWIW, I think we are near a major inflection/tipping point, global demand for gold/silver is insatiable....
World war 3 is ready to really blow
Stock market setting all time records, in defiance of anything sane
money printing like no tomorrow
now the discovery that ther eis no gold in those allocated accounts
Dutch bank default on Gold,
Swiss Bank default on gold,
all these things that politicians and bankers have "kicked down the road" for years on end, well the road has finally stopped
I think oddly enough, Bix Weir might finally be right, and May might be the pivotal month for the last 50 years
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
Large Sarge
FWIW, I think we are near a major inflection/tipping point, global demand for gold/silver is insatiable....
World war 3 is ready to really blow
Stock market setting all time records, in defiance of anything sane
money printing like no tomorrow
now the discovery that ther eis no gold in those allocated accounts
Dutch bank default on Gold,
Swiss Bank default on gold,
all these things that politicians and bankers have "kicked down the road" for years on end, well the road has finally stopped
I think oddly enough, Bix Weir might finally be right, and May might be the pivotal month for the last 50 years
So what do you think LS, another two or three weeks?
???
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
Large Sarge
FWIW, I think we are near a major inflection/tipping point, global demand for gold/silver is insatiable....
World war 3 is ready to really blow
Stock market setting all time records, in defiance of anything sane
money printing like no tomorrow
now the discovery that ther eis no gold in those allocated accounts
Dutch bank default on Gold,
Swiss Bank default on gold,
all these things that politicians and bankers have "kicked down the road" for years on end, well the road has finally stopped
I think oddly enough, Bix Weir might finally be right, and May might be the pivotal month for the last 50 years
-"Difficult to predict, always in motion the future is"
-Yoda
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
Libertarian_Guard
So what do you think LS, another two or three weeks?
???
I think something happens before June, as far as what? Hard to tell, that Fed interview (Fischer) with santelli, he said we are in uncharted waters, and we have no way home...
someone once said Gold is like a barometer, to the health of the monetary/financial system,
kind of like the temperature gauge or oil pressure gauge in your car. So, rather than let the gauge signal a problem, they have jimmied all the gauges to show "everything is fine", including this rising stock market.
So, just like your car that is overheating, and running on no oil, barreling down the highway doing 90 mph, and its making some funny noises, and you smell smoke, but all the gauges say everything is fine....
something is going to give,
the fact that they are starting world war 3 shows they know the game is almost over...
notice how the indian govt keeps trying to cool off physical demand for gold,
I am not sure, there are so many things screwed up now....
I always thought it would be physical silver that defaulted,
I say something gives before June, World war 3, a major default, bank collapse/holiday, something is going to give
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
The dollar – and the USA – is toast
Exclusive: Lord Monckton sees China prepping for final collapse of America
Published: 1 day ago
Lord Monckton About | Email | Archive
Christopher Monckton of Brenchley, high priest of climate skepticism, advised Prime Minister Margaret Thatcher, wrote leaders for the Yorkshire Post, was editor of the Catholic paper The Universe, managing editor of the Telegraph Sunday Magazine, assistant editor of Today, and consulting editor of the Evening Standard. He invented the million-selling "Eternity Puzzles," "Sudoku X" and a promising treatment for infections. See the Science & Public Policy Institute.
Obama has done it. He has brought America down. It only took him just over four years. The Republicans could have stopped him. They didn’t.
How did the nihilistic left succeed in destroying America? Simple. They learned just a little of the capitalism they hate, and they drove your nation into outright bankruptcy.
And here is what the GOP has to say about it: just about nothing.
The once-mighty United States is now the most indebted nation on Earth. In round numbers, here are just some of the vital statistics as the patient dies:
National debt: $17 trillion, or $50,000 per man, woman and child, or $150,000 per taxpayer. Annual federal deficit: $1 trillion. Medicare/Medicaid/Obama”care”: $1 trillion a year. Social Security: another $1 trillion a year. Defense: two-thirds of a trillion. Unemployment handouts: $2 billion per working day. Debt interest: $1 billion per working day. Federal pensions, ditto.
Now for the big numbers. Your government’s Social Security liability is as big as the national debt: $17 trillion. Its prescription drug liability is $22 trillion. Then there’s the Medicare liability of $86 trillion. Total unfunded liabilities of the U.S. government are $125 trillion.
Net assets for each U.S. citizen are $300,000. The net liability of the U.S. government, shared among its citizens, amounts to almost four times that: $1.1 million a head. And the government’s debt is growing at $1 million every 45 seconds. To cover its annual deficit, it is printing $1 trillion a year of currency that is not backed by any asset whatsoever.
Here is what will happen next. When the crash comes, don’t say you weren’t given fair and clear warning.
First, the dollar will cease – no, make that “is already ceasing” – to be the world’s reserve currency. China, as I have been warning you she would, has realized the dollar is finished. So she is quietly making startling progress with bilateral and multilateral deals to replace the dollar with the yuan as the world’s currency of choice.
Sterling, once the world’s reserve currency, went precisely the same way in 1967 under orders from Moscow, which then largely controlled the governing Socialist Labor party in Britain.
After the Second World War, the Socialist/Communist governments of Attlee and Wilson bankrupted Britain with health-care and welfare programs and nationalization of industries. Inflation rose to 27 percent.
Obama’s copycat policies are different in only one respect. Moscow is no longer calling the shots. International totalitarianism no longer needs direction. Its cruel, hate-filled, destructive mission now advances on autopilot.
Watch some of the straws in the wind. China and Korea have come to a little-noticed agreement that international trade between them will no longer be denominated in U.S. dollars, but in yuan, or Won.
Behind the closed mahogany doors of the world’s finance houses, elaborate and secret preparations are being made for the upheaval and international financial collapse that will follow the deliberate printing-out and consequent implosion of the dollar.
Your GOP representatives should be, but are not, asking the administration to reveal to them the ever-tougher terms on which the Chinese continue – with ever-greater reluctance –to lend money to keep their communist ally in the White House afloat.
Do not believe China cannot afford to let her biggest creditor fail. She can, she will, and she is making careful preparations to do just that.
If you thought the crash of 2008 was bad, think again. The crash that is coming –I cannot put a date on it, but it is not far away now – will be orders of magnitude worse.
So, what should you do to protect yourself and your family? First, get rid of every dollar you have. Dollars are now all but worthless. When the crash comes, they will have no value at all.
In hard times, most financial instruments – currencies, stocks, bonds – are not worth the paper they are printed on. Get rid of them now. Buy silver coins. They will quintuple in price once the crash sets in, and they are small enough to be fungible when the dollar dies.
Buy land, some of it well-wooded, some of it arable, some of it grassland. You will need the timber to power your steam tractor. Gasoline will be a costly rarity. And make sure you can defend yourselves. Starving mobs are no respecters of persons. Do what the Mormons do: Get three months’ supply of imperishable foodstuffs and hide them in the basement.
Absurd though this advice may now seem, there is a real danger that the crash will sudden. If so – perhaps for several months, and even for years – the fabric of civilization, including the food-supply chain, will fail.
It is not my custom to write in millenarian or apocalyptic terms. But the very best that can be said for your current administration is that it simply has no idea what damage it is doing. It is printing money in the vain hope of buying itself time. Yet every fake dollar that comes off the printing-presses makes the problem worse and the solution harder.
At worst, what is now happening to your nation may be deliberate. In that event, your current “president” will go down as history’s greatest villain. In any event, he will go down as history’s greatest incompetent.
Do not believe none of this can happen. Psychiatrists study what they call “normalcy bias.” People expect that everything will carry on and that America is too big to fail. She is not. She has failed. You will pay a heavy price for her failure, unless you act now to defend yourselves against what your government, with the culpable, silent acquiescence of the GOP, is doing to destroy your nation.
Finally, pray. God bless America. It has been nice knowing you. Only when you are gone will the world realize how much it misses you, and – paradoxically – how much it owes you.
Read more at http://www.wnd.com/2013/05/the-dollar-and-the-usa-is-toast/#8ouJ7IwGxWuLrcGh.99
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Why There May Be a Lot Less Gold than We Realize
Chris Martenson, Cofounder, Peak Prosperity
May 8, 2013 5:37pm
Exactly How Much Gold Do We Have?
There's growing concern that a lot of official gold has been leased out into the market and that sooner or later, as happened back in the late 1990s, one or more parties, perhaps bullion banks or a metals exchange, would run into difficulty trying to meet a physical gold delivery commitment.
For a short video on the mechanics of gold leasing, click here.
If a lot of gold has been leased out, someday it will have to be rebought, and difficulties may emerge if the gold cannot be rebought in sufficient quantities without creating mayhem within the financial system by causing a very large hike in the price of gold.
Important: The amounts of gold leased by central banks is a very closely guarded secret, and we do not have direct information on them, which means we have to try and back-calculate these amounts by other means.
A recent and thought-provoking study regarding gold leasing was done by Sprott Asset Management in March. After accounting for all known flows of gold into and out of the US over the past 22 years, the Sprott team arrived at a figure of nearly 4,500 tonnes of gold that cannot be accounted for.
Here's the summary flow chart:
In short, because gold is not consumed and never misplaced, there has to be a balance between gold supply and demand. It cannot be printed out of thin air, and it is this inconvenient fact that really matters the most here.
One caveat: Because of the explosive nature of the above findings, Adam and I sought out an opposing view. We talked with a managing partner at an NYC commodity firm that tracks and reports on gold and silver as specialty areas, and their view was that the US has actually been a net importer over the same time period. I could not resolve the massive discrepancy between these views, so I have more research to do. When asked directly how the US government's own import-export data could be this far off the mark, the response was that gold is only counted if it is in wrought form, meaning that it has been fashioned into bars, coins, rods, etc. Uncomfortable with the implication that the US had somehow imported 4,500 tonnes of unwrought gold – that is, gold in the form of dust, pellets, or gold ore – I asked if it was realistic that unwrought gold along could account for so many missing tonnes. The response left me with plenty of doubts. So more digging is required.
Presumably this gold came from leasing arrangements and from official sources, as there are no private suppliers that could possibly match these enormous amounts. Further, it should be noted that one very important missing value in this flow chart is private investment – such as gigantic hedge funds buying gold, or you or I buying coins – which means that the actual shortfall would be higher than 4,500 tonnes, because private investment subtracts tonnage from the amount available for export.
Depending on how much private demand you estimate (and it has been considerable over the past 13 years), you might double the shortfall or perhaps even go higher.
There's really no other possible source for that gold than from "official" sources, meaning the Fed and/or the Treasury. The only other explanation is that thousands and thousands of tonnes of gold somehow got into this country without being detected by US trade and customs officials, which implies that a rather large series of crimes had to be committed.
Because I almost completely discount the idea of illicit gold imports being of a material size, that just leaves us to try and figure out how much leasing the Fed and the Treasury have supported over the prior decades, as we will see below.
The facts are easy enough to grasp. The US has exported vastly more gold than it has imported, and that gold had to come from somewhere. It is very doubtful that accounting errors can explain away even 1% of this discrepancy.
This leaves gold-leasing from the Fed as the most likely source for all that gold, and it is such a large amount that I know of no possible source on the face of the planet where such an amount could be purchased. This is why Germany seeking to repatriate their gold is such a big deal. What if that gold has already been loaned out?
To put it mildly, any whiff that the world's central-bank gold is not where people think it is would really be an enormously unsettling admission to have to make.
Another caveat: There are other experts out there who dispute the figures of this Sprott study. I'm in contact with one of them, probably the best-credentialed of the bunch. If I receive data contradicting Sprott's analysis, I'll present it in a subsequent post here on the site.
Where It Came From
In the meantime, let's play a game here. Suppose for the sake of argument that the US is missing 4,500 tonnes of gold that has been leased out, and it's time to either admit that it's been lost to the world or get it back somehow. That is, the bullion banks will have to pay back the gold they borrowed with cash, or come up with the gold.
How much are we talking about? In current terms of ~$1,380 per ounce, those 4,500 tonnes of missing gold pencil out to a liability of some $200 billion. While the Fed might decide that it is able and willing to forgo its gold and allow the bullion banks to deliver cash instead of physical to avoid their probable failure, the Fed does not own that much gold to deliver. Not even close.
If you look at the Fed's balance sheet, they claim to have ~$11 billion in gold (listed as an asset, by the way), but that number is a historical aberration. The Federal Reserve, just like the Treasury Department, carries gold on its books at the rate of $42.22, a price set way back in the 1930s and not touched since.
This means the Fed has, on its books as an asset, some 261 million ounces of gold, or more than 8,000 tonnes of gold.
If you do the math, that $11.041 billion in "gold stock" works out to 261 million ounces of gold, or more than 8,000 tonnes. That's a nice pile and more than enough to forgo the return of 4,500 tonnes, right?
Not so fast. Those 261 million ounces of gold actually belong to the US Treasury.
Quite confusingly, both the Fed and the Treasury claim this same reserve amount of gold on their balance sheets, an accounting mystery that I have not resolved to my complete satisfaction. (I have heard that the Fed's balance sheet has an offsetting liability, though I have yet to locate it). Here's the current report of US gold holdings put out by the Treasury:
See? There are those same 261 million ounces of gold listed for the identical $11.041 billion. So who really owns it? Well, that's another mystery to be resolved on another day. For now, let's just try to figure out where the 4,500 tonnes of gold came from before we worry about the claims and responsibilities of actual ownership.
The main point I want to make here is that if 4,500 tonnes has been leased out by the Federal Reserve, it could not have been done without the Federal Reserve leasing out either gold belonging to the US Treasury (i.e., US citizens) or belonging to other countries for whom the Fed is holding gold "in custody."
How can I be sure? Because the Fed does not have any other gold listed anywhere else on its balance sheet. If it's holding some as an asset, it's hiding it, and I just don't think that's the case. The Fed is holding a lot of gold for other countries as a custodian, but that's a liability of the Fed, not an asset.
So the conclusion is simple enough: The Fed has leased out the gold of US citizens, other countries, or both. One other possibility is that the Treasury Department did it directly, but they, to my knowledge, have never been involved in gold leasing, nor have I heard even the first hint of rumor that they might have been involved. Any gold leased into the market belonging to the US Treasury was almost certainly conducted via the Federal Reserve.
I would presume that if the Fed has lent out a lot of Uncle Sam's gold, that had to have been done with the full knowledge of the Treasury Department, because that gold could only have come from the so-called "deep storage" category, which means either the Fort Knox, Denver, or West Point vaults.
Recently, there was a big splashy show of claiming that the United States' gold had been audited. Not only was it all there, we were told, but we learned it was more pure than previously thought! Carefully read the below article and see what impressions are created for you:
Gold at NY Fed Is Intact, Some Purer than Thought, Audit Finds
Feb 13, 2013
NEW YORK – The U.S. government's gold in New York is safe in a vault underneath Manhattan, and some of the precious metal there is purer than previously thought.
That's according to a first-ever audit conducted last year by the Treasury Department of U.S. gold on deposit at Federal Reserve banks in New York and elsewhere.
The New York Fed holds 99.98% of the U.S.-owned gold bars and coins in the custody of the Federal Reserve. The rest of the gold is on display at Fed banks in cities such as Richmond, Kansas City and San Francisco.
If you came away with the impression that 99.98% of all the United States' gold was audited and 1) found to be there and 2) found to be in even better shape than originally thought, then congratulations are in order to whomever wrote those careful, slippery words.
The truth is that the Fed only holds 13.4 million ounces of the Treasury's physical gold (see image above of Treasury gold) out of some 261.5 million ounces – just about 5%. So the more accurate sentence would have read: "The New York Fed holds 5% of the US-owned gold bars and coins, and these were fully accounted for in our recent audit. The other 95% has not been fully audited in decades." Not quite as impressive-sounding, is it?
So the audit confirmed that at least 5% of the nation's gold is safe and sound. But that's all we know. Because every audit request by former Congressman Ron Paul to check in on the gold held in deep storage has been utterly rebuffed. No such audit has been conducted by an independent third party in many decades. So we really don't know. But we are still left with Sprott's unexplained data showing that the US has exported 4,500 tonnes more than it has imported, and perfectly sane logic leads us to conclude it had to have come from the Fed, the Treasury, or both.
Now, suppose again that the 4,500 tonnes are missing and that either an audit or a collapse in the bullion-leasing game would reveal as much. If you were in charge of that potentially nightmarish scenario, what would you do? If it were my job, I would do everything possible to scare that gold back into the markets where I could purchase it, preferably at a cheap rate and on the sly, with the hopes that I could get that done before anybody was any the wiser.
The alternative – a breakdown in the gold delivery market – would create massive price spikes, panic, immediate demands by other central banks for their gold, and quite possibly a lot of financial instability at a very, very vulnerable time in financial history. I should remark that there's never really a good time for such an event, but now would be especially poor timing, given the state of things.
If indeed the US is short 4,500 tonnes (or 145 million ounces), then for every dollar that the price of gold is dropped, $145 million of potential losses are avoided on the repurchase of the leased gold.
This could be the story of the decade, maybe century, if the Sprott data is remotely accurate. If it is, then when all of this has to finally be undone, my prediction is that agreements will be broken, allies will be stiffed, and the Fed will not willingly part with whatever gold actually remains, no matter who thinks they own it (Germany, et al.) or how many times Bernanke says that the Fed holds it merely out of tradition. The level of secrecy surrounding gold, gold leasing, and the complete lack of a full audit of deep-storage gold all suggest there's something to hide here – not the opposite.
There's an awful lot of smoke out there right now, and the concerted US public relations campaign to convince the world that gold is useless strikes me as both strident and desperate.
Conclusion
Again, if the Sprott analysis is accurate, there's a lot of missing gold in the US equation, and it had to come from official sources, either of US origin or belonging to other countries. Either way, the leased gold represents a tremendous liability of the Fed and the bullion banks to which it was loaned.
In this context, the gold slam begins to smell like an operation designed to shake as much gold as possible out of weak hands so that the bullion banks can begin to recover it to square up their accounts. GLD, the gold ETF that so many small investors participate in, is one large, obvious target, as it was sitting on 1,350 tonnes as of January 2013. The most recent figure I have shows that GLD has coughed up close to 175 tonnes and will certainly lose more in the coming days, as long as the price of gold is held down or even dropped further.
But even if GLD loses it all, that won't even cover a third of lowest possible estimate of the US shortfall. And we can be sure that other central banks in the UK and European arena have played similar games, so there will certainly be some competition for every tonne of gold that is released.
It is my distinct impression that something is very wrong behind the scenes, and I am about as worried now as I have ever been. But I'm also excited because it means that finally some interesting things are about to happen. The long, boring quiet period in the markets, where the price of everything was manipulated or distorted by official actions and volatility was managed down to unbelievably low levels, is probably over.
This is good news because it means that markets might again be able to function more normally and give us useful information and price signals that can help us determine which direction to go in.
Along with this feeling of unease, one line of thinking I have is that gold and silver are getting closer to the day when you or I will not be able to purchase physical bullion at any price. Were a major bullion bank to openly renege on its lease commitments, or the LBMA or COMEX were to declare force majeure and fail to deliver physical, all domestic stocks of gold and silver bullion would evaporate for all practical purposes.
When queried about what would happen if even 10% of the US population decided to access the physical bullion market, one large dealer told us it would just break the system. It's a very narrow pipeline that delivers relatively few rounds, bars, and coins to a very small population of bullion holders. Any big flood and the 5-6 week wait times we now see will certainly get longer. Not many dealers and/or wholesalers will want to honor such long lead times when/if prices are volatile or skyrocketing higher.
Where there's smoke there's fire, and there is a lot of smoke in the bullion world right now. I am more certain than ever that holding physical bullion is a must-do for everyone who wishes to preserve their purchasing power.
I am not yet issuing an Alert on this matter, but I am wrestling very hard with the urge to do so. I need some more hard information to justify such a drastic step, but for now my gut is telling me that something is about to break open.
More to come as this fast-breaking situation develops.
Chris Martenson
http://www.caseyresearch.com/article...han-we-realize
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
What could happen is that the countries like Germany once they get shafted out of their gold by Uncle Sam could go after private owners of gold, concluding that Germany's gold had to go SOMEWHERE, and maybe it was used to make Gold Eagles...so all holders of Gold Eagles are actually illegal holders of Germany's sovereign gold. Or something like that. Hell, it's likely the Feds will tell Germany that's EXACTLY what happened to their gold.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
Half Sense
What could happen is that the countries like Germany once they get shafted out of their gold by Uncle Sam could go after private owners of gold, concluding that Germany's gold had to go SOMEWHERE, and maybe it was used to make Gold Eagles...so all holders of Gold Eagles are actually illegal holders of Germany's sovereign gold. Or something like that. Hell, it's likely the Feds will tell Germany that's EXACTLY what happened to their gold.
Don't forget about gold teeth.:)sal
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
The Basel Committee and the Global Banking Mafia
http://www.globalresearch.ca/the-basel-committee-and-the-global-banking-...
excerpt from article:
«Basel III»: the partial rehabilitation of gold
Before the 1970s, when the Bretton-Woods currency system existed in the world and there were not yet any «Basel» standards, everything was different. Banks were principally valued in terms of the amount of gold in their equity. The more gold there was relative to the total amount of capital and the total amount of assets, the safer the bank was believed to be. It was all simple, clear and logical. However, those good old times came to an end with the collapse of the gold standard and the IMF’s decision to carry out a full and final demonetisation of gold. Gold was demoted to a run-of-the-mill exchange commodity like oil, wheat or coffee. As a last resort, banks could use gold as an investment medium, but the metal stopped being regarded as a valuable financial asset.
Up to now, the Bank for International Settlements (BIS) has stored the gold in its «black body», so to speak. On the whole, the rules of the game were such that there was no benefit in banks hoarding their gold. At best, bankers regarded the yellow metal with the eyes of speculators buying and selling gold to make short-term profits.
Basel III has raised the status of gold dramatically. New rules have been provided to transfer gold to a bank’s tier 1 capital at 100 percent of its value. Banks now have the opportunity to replace their paper assets (primarily US Treasury bonds) with gold. Experts have calculated that such a practice will create additional demand for the precious metal to the extent of at least 1700 tonnes. There have been even higher estimations of up to 3000 tonnes. A number of experts believe that the development of Basel III was carried out with powerful lobbying from the Rothschilds, who have an interest in restoring the monetary status of gold in the world. For the last two centuries, the Rothschilds have had control over the main gold reserves, been involved in the extraction of gold and are «market makers» in the precious metals market. In September 2012, before the Basel Committee’s new standard had even come into force, the heads of one of the world’s largest banks, Deutsche Bank AG, which falls within the Rothschilds’ sphere of influence, made a public statement that gold had again been transformed from a commodity into money. The statement caused a painful reaction on the other side of the Atlantic Ocean, first and foremost in the US Federal Reserve System. The chairman of the Federal Reserve, Ben Bernanke, once again issued a standard statement that gold was far from the best type of money.
It is not difficult to see that Basel III is a blow to the US dollar and the American economy. America’s reaction was sufficiently prompt and harsh. At the end of last year, America’s monetary and financial regulators (the Federal Reserve system, the Deposit Insurance Agency and the Office of the Comptroller of Currency) reported that they had been sent a petition by leading American banks stating that the new Basel standards were crippling for lending and borrowing organisations. After this, the Federal Reserve System and other US financial regulators went to the Committee and announced that the introduction of Basel III in America was being postponed, and no date for transition to the new standard was given. At this point, European banks started to feel anxious, believing that if they began the transition to the new standard, they would find themselves uncompetitive in comparison with American banks. Therefore, they also refused to shift to Basel -III.
So who exactly has embraced Basel III since 1 January 2013? The list is not very long, with a total of 11 countries in all: Australia, Hong Kong, Canada, China, Mexico, Saudi Arabia, Singapore, Thailand, Switzerland, South Africa and Japan. It is also possible to add India here, which announced it would be joining Basel III from 1 April 2013. It is remarkable that the list contains just four countries from the «golden billion» zone: Australia, Canada, Switzerland and Japan.
more at the link.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
Half Sense
What could happen is that the countries like Germany once they get shafted out of their gold by Uncle Sam could go after private owners of gold, concluding that Germany's gold had to go SOMEWHERE, and maybe it was used to make Gold Eagles...so all holders of Gold Eagles are actually illegal holders of Germany's sovereign gold. Or something like that. Hell, it's likely the Feds will tell Germany that's EXACTLY what happened to their gold.
Sounds like they have stolen as much gold as they can because these people know that in the end all that will matter will be gold/silver.These crooks are accumulating the stuff and my guess its stashed in Israel so when there ponzi scheme collapses we will get a gold backed currency based on looted gold.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Gold Demand in Dubai Now Running at 10x Normal LevelsPosted on May 13, 2013 2The disconnect between the massive physical buying of gold versus the falling paper derivatives price has now become nothing short of extraordinary. While we have all seen the figures describing the gold buying frenzy in China and India, now we have some more detailed information about what is happening on the ground in Dubai. Incredibly, we find that since the April paper price crash, 50 tons of gold has been purchased, which is the equivalent of the entire amount of 51.8 tons purchased in all of 2012.One of the most comprehensive looks at the massive physical versus paper disconnect I have read is courtesy of Goldbroker.com, a company that specializes in physical bullion stored in Switzerland. I suggest checking out their latest Gold Market Report.
https://www.goldbroker.com/news/gold...lysis-239.html
Now from Emirates 24/7 we find that:Dubai demand for gold has been witnessing a massive surge since the price collapse of last month, with demand far outstripping supply.Various estimates suggest that demand in the past few weeks has been nothing short of astronomical, surging by 10 times the normal demand.According to the latest precious metals weekly report by Gerhard Schubert, Head of Precious Metals at local bank Emirates NBD, “Participants of the physical industry in Dubai believe that an additional 50 tonnes have been bought since the price crash in April. These sales figures are in addition to the ‘usual’ numbers and put a little perspective on the derivative side of the market.”The usual numbers that Schubert refers to are the same as the demand seen since April. According to World Gold Council data, total consumer demand for gold in the UAE (not just Dubai) stood at 51.8 tonnes for the entire year 2012, which means that demand was about 4.31 tonnes per month during last year.Compared with that, as Schubert mentions, Dubai demand in the past few weeks has been 50 tonnes plus ‘usual’ numbers, in effect reflecting the massive surge in interest that gold has seen in this past few weeks.“We have been running out of gold coins and bars even before they reach our stores,” he added. “There are people who are ‘pre-booking’ gold bars with us, and they collect it once new supply arrives,” he said. http://libertyblitzkrieg.com/
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
from above link...
1) The Global Context : Nothing has Changed
- Protecting the Dollar :
Price manipulation has but one goal : protecting the value of the dollar in order to keep the Fed in control of interest rates and, thus, in control of US Treasury bonds and derivatives, largely held by the big banks.
If the Fed loses control of the dollar, which is bound to happen inevitably, since it’s printing billions of dollars every month, interest rates are going to go up radically, the value of US bonds will crash, the credit derivatives bubble will explode, taking with it the whole banking system.
Manipulating the price of gold serves the purpose, for the masses, of destroying the signal that would reflect the upcoming crash of the dollar and, by way of contagion, of the whole financial system.
Let me refer you to an excellent article by Paul Craig Roberts which explains in details how this recent manipulation took place and to whom it profits.
- The Fed continues to print $85 Billion each month. Japan announced the most ambitious quantitative easing plan of its history with an injection of $1.4 Trillion within two years. All this with no signs of any limitations on QE-type inflationary monetary policies.
- Holland’s Prime Minister has confirmed, as has a report from the FDIC, that deposits confiscations in Europe will be applied in future bailout plans, like in Cyprus. Trust in the European banking system is now at its lowest.
- Since 2007, the S&P has progressed by a mere 1% and, even after the last days’ correction, gold has performed over 100%.
- The gold spot price, this year, tumbled less than Apple shares, which lost 39% since its peak of last year.
2) The Situation on the « Paper » Gold Market
- Between Friday, April 12 and Monday, April 15, 1 million short contracts have been sold on the COMEX, i.e. 12% more than the annual world gold production.
- 150 tons of paper-gold were sold within an hour last Friday.
This sale was realised on the COMEX by a single entity, and it triggered a cascade of forced selling by investors totalling 500 tons of gold. One could logically ask the following question : Who has the financial power to realise such an operation? No trader ever sells such a position in one block at once.
Paul Craig Roberts: « Who has the capacity to sell the equivalent of 500 tons of gold on the markets for an amount of $24.8 Billion (or 16,000,000 ounces of gold, about 15% of world global production)? Who would own so much gold, enough to cover eventual delivery requests on those naked shorts?
Also, nobody sells this much gold all at once; such a sale is done progressively so as not to crash the price and, thus, limit the losses.
As a matter of fact, this massive sale entailed a $1.168 Trillion loss. Who can afford to lose such an amount, but one who can print it? »
His answer : Only the Fed can finance such an operation and tolerate such a loss, since it can print money.
Parenthesis : The CFTC, supposedly in charge of regulating derivatives, notably those on gold and silver, authorises enormous concentrated short positions (thus taken by one or more entities) that perturb the normally free price determination mechanism. There could not be any manipulation of gold or silver if the CFTC were doing its job of regulating the derivatives.
- The COMEX and the LBMA could be close to defaulting.
The COMEX functions on a fractional basis. There is not enough physical gold and silver in the COMEX inventories to guarantee the convertibility of all contracts.
Let’s recall that Kyle Bass, one of the most important hedge fund managers in the USA, who had correctly anticipated the bursting of the subprime bubble, confirms, in this video, that the COMEX does operate on a fractional basis. He decided, a few years ago, to ask for delivery of his gold held via his fund, because he didn’t have faith in the COMEX capacity to make good on future delivery requests. It would only take about 5% of contract holders asking for delivery to cause the COMEX to default.
- Available physical gold on the COMEX and the LBMA is dwindling.
And this is happening at the fastest pace since the start of the bull market in 2001. Delivery requests on the COMEX for the last 90 days represent 2 million ounces, or $3 Billion, as shown by this graphics.
Trust in the « paper » gold markets is waning. Investors do not want to be exposed to counterparty risk anymore. Either the COMEX or the LBMA, or both, will default in the coming months. The situation is untenable at the rythm at which investors are asking to convert their contracts to physical gold or silver.
Which has Andrew Maguire, a specialised gold trader in London, saying that this last crash’s objective is also to bring the prices down before an eventual default announcement from the COMEX or the LBMA. Read the interview with Andrew Maguire.
This default will trigger a rapid rise in prices and what Egon von Greyerz anticipates as the most important short squeeze in history. Read the article by Egon von Greyerz.
- The « paper » gold price in Yen is at its highest in 33 years.
No wonder, with Japan’s most ambitious quantitative easing plan of its history. In less than two years, Japan will inject the equivalent in Yen of $1.4 Trillion, an unprecedented amount in the history of Japan.
Facing this inflationary threat, Japanese institutional investment funds, and Japanese people as well, are starting to migrate toward physical gold at the time that the speculators’ short positions (see COT report) on gold and silver are at a record high.
This global migration toward physical gold and silver is threatening a little more each day to trigger the explosion of the COMEX and LBMA markets. A single delivery default on these markets would make the price of gold rocket. The situation for the long term is untenable on these markets. The physical gold to cover delivery requests from contract holders is simply not there, it does not exist.
3) The Situation on the Real Physical Gold and Silver Markets
- China took advantage of last Friday’s crash to acquire 50 tons of physical gold.
Andrew Maguire, a trader on the physical gold market in London, has confirmed, in a recent interview, that China had acquired 50 tons of gold last Friday, right in the middle of the « paper » gold crash.
Visibly, China, and a host of other countries, are taking advantage of each price correction to acquire physical gold.
- The Two Most Important Bullion Dealers in the USA (Amark and CNT) Are Out of Silver.
Following the crash of these last few days, a massive demand has taken place in the USA and around the world for physical silver. Just the fact that this has virtually no effect on the « paper » silver spot price goes to prove that the « paper » silver market, just like gold’s, isn’t real anymore.
- Important Premium Hikes on Silver Coins :
Silver dealers pay up to $3/oz commission to acquire (when possible) silver coins, like the Silver Eagles. This commission comes before the one charged to the customer. So, at the end, the customer might pay up to 10-12% over the spot price for the coins. Which means that either producers or silver coins holders are not ready to sell on the basis of the « paper » spot price, and that the two markets are disconnected.
- A landslide in one of the mines exploited by Rio Tinto, in Utah (the second-most important mine in the USA), causes the equivalent of 16% of the US annual silver production to disappear.
This event occurred last Wednesday, before the crash. The mine will probably be closed for a few years. Here is the media release.
Let’s ask this question : How can it be that such a reduction in world silver production hasn’t had any effect on the prices?
I’m maintaining my long-term analysis and continuing to recommend holding physical gold and silver for protection against coming events : bank failures, inflation and deposits confiscation. There is no chance at all for our actual monetary system of non-convertible currencies to last for a very long time.
These corrections are hard to take, but multiplying one’s capital in a context of disinformation, currency war and price manipulation entails some volatility. Investors must get a global understanding of the current events and trust their own interpretation of the situation.above link.....
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Kaye: “The paper gold price has been driven well down. We’re nowhere close to when gold peaked above $1,900. We’re in the low $1,400s as I speak now, Eric.
So price has gone down, but what about volume (in gold)? Well, I can tell you that volumes in China year over year are up four to five times
. I can tell you that volumes in Thailand, a similar amount (to China, up four to five times).
Volumes in India, despite an increase in taxes, and despite the fact they are making it more difficult for average people in India to acquire gold, all of the dealers that we talk to who deal into India tell us it’s the same experience as China. It’s up four to five times....
Continue reading the William Kaye interview below...
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“Now that’s really interesting. Show me another bear market where demand goes up as prices collapse. You can’t. It hasn’t happened in history. So what that confirms is this (drop in the price of gold) is all mythology.
The Fed is the only entity that would actually have both the financial wherewithal, and the ability to totally disregard risk to achieve a strategic agenda of reinforcing the notion that the US dollar is a solid currency, which it is not. And deliberately suppressing, with their agents the bullion banks, the price of gold.
... It strongly suggests the central banks themselves do not have unencumbered, eligible, deliverable gold. Because if they did they would have a huge incentive, instead of engaging in the outright manipulation of the paper market that’s taking place, to simply lend out that gold to agent banks like ABN AMRO so that the system stays in place, so that no one has to default and create the potential for a buying panic.
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So the fact that didn’t happen, and this manipulation occurred in its place, tells you that there just isn’t deliverable gold in the system. This crash occurred, the single event of great importance, and I think Andrew (Maguire) talked about it in the interview with you, was the sudden appearance on the day that prices collapsed of a naked short sell order for 400 tons of gold.
Who has 400 tons of gold? Goldman Sachs reportedly entered that order, but they don’t have 400 tons of gold. Who has 400 tons of gold? If 400 tons of (physical) gold is just lying around somewhere, why couldn’t ABN AMRO borrow it? Why did they have to default?
That was the first sign that this was the new strategy, and we (central planners) are going to engage in the wholesale raid, the wholesale manipulation of the precious metals market. We’re just going to scare the public out of this thing, destroy investor psychology, and we the elite, the insiders, will acquire more at these cheap prices. And if the downside is there is a redistribution of tangible wealth from West to East, so be it. So to sum up, Eric, this is a criminal conspiracy.”
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