Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
Hypertiger
April 15 is Tax day.
The top lives off the yield from the bottom.
The top does all the buying and selling...The bottom follows along and speculates.
The master elploys the slaves to supply all teh power to the top wholesale...teh top then marks it up and sells it to the bottom retail.
the difference between the wholesale cost and the retail price is the tax the master lives off of.
The yield...the Profit...the Interest...etc.
Usury.
Or taking more than you give.
The top grows richer in power by taking more power than they give from the bottom while the bottom grows poorer in power by giving more power than they take from the top.
If the growth rate is 5% and you tax away 4%...that leaves 1% numbers are green.
but if the growth rate is 3% and you tax 4%...that leaves -1% numbers are red.
red numbers on tax day means taxes have gone up significantly.
Remember cyprus?
That was a tax operation...in the blink of an eye taxes by the top were raised to the point that people's hopes and dream's for the future were blown out like a candle.
OK, we get it. Where are you going with this?
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
With massive selling once again in the gold and silver markets, today whistleblower Andrew Maguire told King World News the reason for the recent takedown in gold and silver was because of an imminent LBMA default. Here is what Maguire had to say in part II of this remarkable and exclusive interview.
Maguire: “Gold and silver only have this type of selling when there are extreme shortages of the physical metal. I am totally aware that before this takedown occurred there was an imminent LBMA default.
We had already seen COMEX inventories plunging. In 90 days COMEX inventories saw an incredible decline. So immediately available physical gold was disappearing. People around the world don’t understand what has been happening since Cyprus....
“Entities went to the LBMA and said, ‘We don’t trust anybody anymore. We want our physical metal.’ They were told they would be cash settled instead by a bullion bank. The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.
This is why this smash has been orchestrated because of the run that has been taking place on physical metal. So Western governments had to do this because of an imminent run on the unallocated LBMA system. The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash.
This orchestrated smash in gold and silver was nothing short of a bailout for the bullion banks. So there is a run on physical gold that is taking place and the Ponzi scheme the West is running is being threatened because of it.”
Maguire also added: “We are nearing the end of this decline. Physical demand is already beginning to catch up with leveraged paper. If gold were to trade into the low $1,300s it would be unsustainable for very long.”
http://kingworldnews.com/kingworldne..._Takedown.html
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
mamboni
I've read most of your comments and would like your opinion. How much of a role do you think Russia and China are playing in the current financial collapse and do you see this as being a battle between capitalism and communism?
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
irmatvep
mamboni
I've read most of your comments and would like your opinion. How much of a role do you think Russia and China are playing in the current financial collapse and do you see this as being a battle between capitalism and communism?
You can't have communism without capitalism. Both created by the same group.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
osoab
You can't have communism without capitalism. Both created by the same group.
I realize that both systems were created by the same vultures. However, what we are witnessing now is the death throes of capitalism. In my humble opinion, I believe that Communism (even though the brainchild of same criminals) was always intended to be the ultimate victor. Even though the world has never truly enjoyed free market capitalism there has never been any other economic system in which the majority of people were allowed to keep most of the fruits of their labor. Indeed many people were able to become very wealthy and creativity flourished. However under Communism it's the exact opposite. Only the ruling elites who are comparatively few in number own and control most of the wealth and resources. The majority of the people are reduced to miserable serfdom. I think this was always the plan of those who own and control the worlds banking system. These evil men only allowed capitalism to exist long enough to enable all the great advances in technology and wealth accumulation. It was their plan from the very beginning. As soon as these goals were achieved they would swoop down like the greedy vultures that they are and rob every honest hard working person of all they possessed. At least this is the way I see things.
It's no secret that Russia and their partner China along with all their other allies hate the West, particularly America and that they are working diligently toward our destruction. Russia in particular resents us because they are no longer a super power and they can't wait for us to be completely stripped of all power so that they can reign supreme. I also believe that Russia is only using China to achieve this end and that as soon as they are no longer necessary they will flush them down the toilet like a turd. It's also no secret that the collapse of the Communism in 1991 was a total sham designed to lull the idiots in the West to sleep and to convince them that Communism is dead and no longer poses a threat. Nothing could be further from the truth. It was all a big lie! All the evidence is there for anyone interested in learning the truth. The KGB had been working out all the details of this plot as early as 1956. The Communists know that they are no match against us and that they will never defeat us honestly. That is why they resort to such tactics as infiltration and subversion. They excel at these things. America has been infiltrated for decades by Communists and now they are in control of every aspect of our society. Joe McCarthy was right. Unfortunately he was silenced. If anyone doubts this all they need do in order to be convinced of the truth of what I'm says is to study the 45 goals of Communism. We've had what Lenin termed "useful idiots" serving as presidents who've allowed the Commies to steal our military technology right under our noses. The current occupant of the WH is doing all in his power to weaken us even further. Our military is being dismantled, our stockpile of nuclear weapons, our only means of preservation, is being reduced. Obama wants to cut our stockpile of nuclear weapons to 300. Our military is being stretched beyond the breaking point by our involvement in all these foreign wars which do not benefit us in the least. Isn't that the whole purpose our enemies intend? America is literally being bankrupted by these wars and eventually we will become so demoralized and weakened that we will not be able to offer any resistance. Meanwhile Russia and China are busy increasing their stockpile of nuclear weapons, building up their armed forces and equipping them them with all the latest and best technology courtesy of America. God only knows the full extent of their activities. Don't even get me started on who has been fueling Islamic rage against us is aiding and abetting all the turmoil in the Middle East.
Russia and China are amassing gold as if it were going out of style which means that if Jim Willie is correct, all the worlds wealth is being transferred to the East. It's like 1917 all over again. The biggest transfer of wealth is happening before our very eyes. Only instead of confining all the looting to one country, this time these vipers are pillaging the entire world.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
A nice analysis indeed
You did tend to tip toe around the zionist fingerprint of both" isms" but i will spot you that.
I never really thought about China getting ditched by Russia but that is a extremely plausible scenario
I know what i have pondered and rather deeply is when America finally does fall.
She will NEVER rise again to the superstar status she held.
She will be spoken about in the future like how Britan is today a throughly emasculated empty shell.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Quote:
Originally Posted by
irmatvep
mamboni
I've read most of your comments and would like your opinion. How much of a role do you think Russia and China are playing in the current financial collapse and do you see this as being a battle between capitalism and communism?
I think China and Russia are playing the dominant role in the wealth transfer that is occurring, as gold moves from west to east. I don't think it's capitalism versus communism. Rather, a hybrid political-philosophy, a fusion of capitalism and communism has emerged. It is not fully formed and is still evolving. In twenty years, the BRIIICS trade zone will dominate the world economy. It is to employ so combination of top-down command economy communism-socialism and free-market capitalism in decentralized but contained units. Whether the system can balance the greed for money and power by the few against the need to give the masses enough freedom and private property rights to incentive them to produce remains to be seen. There is a long cultural tradition of authoritarian government in the east, unlike America which was unique in being founded on virgin ground by libertarians and the intellectual fruits of the enlightnment. I think history will look back at birth of America as a unique and miraculous event, when freedom and justice manifest in nationstate reached the apex of opportunity and prosperity for common man whilst also providing for stable government. Unfortunately nothing so near perfect lasts forever. And today's America is a far cry from the one the founders created. We won't see another nation of greatness to rival America, or republican Rome before her, for a thousand years.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Gold's Price Collapse And 4,500 Tons Of Mysterious American Gold Exports...
-- Posted Tuesday, 16 April 2013 | Share this article | Disqus
By The Goodman Letter
Leveraged gold speculators panic whenever someone decides to sell large numbers of transient short positions into the market. That isn't anything unusual. It is because they are gamblers who, like their soul-mates in Las Vegas, ignore common sense and think they can win against the House. But, the House always wins. It is no different with the world's derivative players who play at derivatives casinos. The only difference is that while casinos in Las Vegas admit that the odds are rigged in their favor, derivatives casinos are more deceitful, and don't.
The derivatives casino gamblers always set automatic points, where their positions will be automatically sold if the price dips low enough. This is supposed to show that they are "investing" rather than gambling. But, the stop positions are well known, because they cluster around technical "resistance" and "support" levels. The gamblers virtually all believe that they can foresee the future through non-living psychics, known as "charts". Coordinated short selling, therefore, will ALWAYS be devastating. It will be targeted to trip those automatic stop-loss orders, to result in the dominoes falling, and a deep decline in paper prices.
The short selling on Friday, April 12th, was bigger, but essentially no different from all other price takedowns from 2001 until now. These events often, if not always, cluster around big economic announcements. Bad economic news should ordinarily increase the attractiveness of gold-related investments. Yet, because of the short sellers, gold habitually moves in a counter-intuitive manner. Suffice it to say that futures market short selling tends to be at its most intense at the moment that economic news is at its worst. Thus, "up becomes down" and "down becomes up".
New data, out of the USA, shows that the hopes and dreams of the economic optimists are unjustified. We now have much higher real unemployment, reflecting huge rolls of discouraged workers, collapsing retail sales, collapsing home builder confidence than the so-called "experts" ever thought possible. It is a reversal of all the trends that the gold bears at Societe Generale and Goldman Sachs, for example, cited as justification for a prediction that gold prices would decline. Yet, gold still went down, in spite of heavy increased buying reflected in a vastly larger open interest. All that increased buying was absorbed by multiple waves of paper short selling.
But, most people buying physical gold, as opposed to the paper traded on derivatives markets, are not overleveraged get-rich-quick schemers. The fear-mongerers at Societe Generale, Goldman Sachs and other Fed primary dealers hold no weight with them. They don't care about the movement of the stock market. According to Forbes magazine, sales of physical investment gold skyrocketed when the spot prices were reduced by the futures markets. Over the coming days, no doubt, we will learn that the same phenomenon has occurred everywhere in the world.
much more about the missing 4,500 tons of FED gold at: http://news.goldseek.com/GoldSeek/1366140621.php
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Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Thanks for the updates Mamboni. There are many pieces to the puzzle and I appreciate your help in connecting the dots. Keep up the good work.
Re: Has the collapse begun? Is paper gold selling in a panic to buy physical?
Gold Is Over – Just Like in 1976
By Jeff Clark, Senior Precious Metals Analyst
Goldman Sachs has lowered its gold price projections and says the metal is headed to $1,200. Credit Suisse and UBS are bearish. Citigroup says the gold bull market is over.
So I guess it's time to pack it in, right?
Not so fast. As we've written before, these types of analysts have been consistently wrong about gold throughout this bull cycle. Another reason to disagree, however, is history; we've seen this movie before. In the middle of one of the greatest gold bull markets in modern history – the one that culminated in the 1980 peak – gold experienced a 20-month, one-way decline. Every time it seemed to stabilize, the bottom would fall out again. From December 30, 1974 to August 25, 1976, gold fell a whopping 47%.
1976 had to be a tough year for gold investors. The price had already been declining for a year – and it just kept on sinking. Since that's similar to what we're experiencing today, I wondered, What were the pundits were saying then? I wanted to find out.
I enlisted the help of two local librarians, along with my wife and son, to dig up some quotes from that year. It wasn't easy, because publications weren't in digital form yet, and electronic searches had limited success. But we did uncover some nuggets I thought you might find interesting.
The context for that year is that the IMF had three major gold auctions from June to September, dumping a lot of gold onto the market. Both the US and the Soviet Union were also selling gold at the time. It was no secret that the US was trying to remove gold from the monetary system; direct convertibility of the dollar to gold had ended on August 15, 1971.
The public statements below were all made in 1976. You'll see that they aren't all necessarily bearish, but I included a range to give a sense of what was happening at the time, especially regarding the mood of the gold market. I think you'll agree that much of this sounds awfully darn familiar. I couldn't resist making a few comments of my own, too.
To highlight the timing, I put the comments into a price chart, pinpointing when they were said relative to the market. Keep in mind as you read them that the gold price bottomed on August 25, and then began a three-and-a-half year, 721% climb…
[1] "For the moment at least, the party seems to be over." New York Times, March 26.
[2] "Though happily out of the precious metal, Mr. Heim is no more bullish on the present state of the stock market than any of the unreconstructed gold bugs he's had so much fun twitting of late. He's urging his clients to put their money into Treasury bills." New York Times, March 26.
Me: These comments remind me of those today who poke fun at gold investors. I wonder if Mr. Heim was still "twitting" a couple years later?
[3] "'It's a seller's market. No one is buying gold,' a dealer in Zurich said." New York Times, July 20.
Turns out this would've been an incredible buyer's market – but only for those with the courage to buy more when gold dropped still lower before taking off again.
[4] "Though the price recovered to $111 by week's end, that is still a dismal figure for gold bugs, who not long ago were forecasting prices of $300 or more." Time magazine, August 2.
The "gold bugs" were eventually right; gold hit $300 almost exactly three years later, a 170% rise.
[5] "Meanwhile, the economic conditions that triggered the gold boom of 1973 through 1974, have largely disappeared. The dollar is steady, world inflation rates have come down, and the general panic set off by the oil crisis has abated. All those trends reduce the distrust of paper money that moves many speculators to put their funds in gold." Time magazine, August 2.
This view ended up being shortsighted, as these conditions all reversed before the decade was over. Does this sound similar to pundits today claiming the reasons for buying gold have disappeared?
[6] "Our own predictions are that gold will go below $100, with some hesitation possible at the $100 level." As stated by Mr. Heim in the August 19 New York Times.
Yes, this is the same gentleman as #2 above. I wonder how many of his clients were still with him a few years later?
[7] "Currently, Mr. LaLoggia has this to say: 'There is simply nothing in the economic picture today to cause a rush into gold. The technical damage caused by the decline is enormous and it cannot be erased quickly. Avoid gold and gold stocks.'" New York Times, August 19.
You can see that these comments were made literally within days of the bottom! Take note, technical analysts.
[8] "'Gold was an inflation hedge in the early 1970s,' the Citibank letter says. 'But money is now a gold-price hedge.'" New York Times, August 29.
Wow, were they kidding?! This reminds me of those dimwits journalists who said in 2011 to not invest in gold because it isn't "backed by anything."
[9] "Private American purchases of gold, once this was legalized at the end of 1974, never materialized on a large scale. If the gold bugs have indeed been routed, special responsibilities fall on the victorious dollar." New York Times, August 29.
The USD's purchasing power has declined by 80% since this article declared the dollar "victorious."
[10] "Some experts, with good records in gold trading, declare it is still too early to buy bullion." New York Times, September 12.
Too bad; they could've cleaned up.
[11] "Wall Street's biggest brokerage houses, after having scorned gold investments during the bargain days of the late 1960s and early 1970s, made a great display of arriving late at the party." New York Times, September 12.
No comment necessary.
[12] "He believes the price of bullion is headed below $100 an ounce. 'Who wants to put money over there now?'" As stated by Lawrence Helm in the New York Times, September 12.
The price of gold had bottomed two weeks before, making the timing of this advice about the worst it could possibly be.
[13] Author Elliot Janeway, whose book jacket states, "Presidents listen to him," was asked by a book reviewer about his preferred investments. He writes: "Then, gold and silver? He likes neither. In fact he writes: 'Any argument against putting your trust in gold, and backing it up with money, goes double for silver: silver is fool's gold.'" New York Times, November 21.
Mr. Janeway ate his words big-time: from the date of his comments to silver's peak of $50 on January 21, 1980, silver rose 1,055%!
[14] "Mr. Holt admits that 'in 1974, intense speculation caused the gold price to get too far ahead of itself.'" New York Times, December 19.
http://www.caseyresearch.com/images/goldarrow.jpg So, anything sound familiar here? Yes, it was a brutal time for gold investors, but what's obvious is that those who looked only at the price and ignored the fundamentals ended up eating their words and dispensing horrible advice. Investors who followed the "wisdom of the day" missed out on one of the greatest opportunities for profit in their lifetimes.
I was pleased to learn, though, that not all comments were negative in 1976. In fact, in the middle of the "great selloff," there were those who remained stanchly bullish. These investors must've been viewed as outliers – they, much like some of us now, were the contrarians of the day.
Also from 1976…
- "Many gold issues, in fact, are down 40 percent or more from their highs. Investors who overstayed the market are apparently making their disenchantment known. The current issue of the Lowe Investment and Financial Letter says, 'We are showing losses on our gold mining share recommended list… but keep in mind that these shares are for the long-term as investments.'" New York Times, March 26.
Sounds like what you might read in an issue of BIG GOLD or the International Speculator.
- "The time to buy gold shares," [James Dines] declares, "is when there is blood in the streets." New York Times, September 12.
If you glance at the chart above, Jim's comments were made within two weeks of the absolute low.
- "We're recommending to clients that they hold gold and gold shares," [C. Austin Barker, consulting economist] says. "The low-production-cost mines in South Africa might be interesting to buy for the longer term because I see further inflation ahead." New York Times, September 12.
Investors who listened to Mr. Barker ended up seeing massive gains in their gold and gold equity holdings.
- "The probability of runaway inflation by 1980 is 50%... In light of this, the only safe investments are gold, silver, and Swiss francs,'" said the late Harry Browne on November 21 in the New York Times.
Browne's Special Reports were edited by our own Terry Coxon for 23 years, along with all his books since 1974.
- "In the longer run, [Jeffrey Nichols of Argus Research] believes gold's price trend 'is much more likely to be upward than downward.'" New York Times, December 19.
The "longer run" won.
- "'I think the intermediate outlook for gold is a period of consolidation and a bit of dullness,' says Mr. Werden. 'However, six or nine months from now, we could see renewed interest in gold.'" New York Times, December 19.
He was right; within nine months gold had risen 13.5%.
- "Mr. Holt offers some advice to investors who are taking tax losses on their South African gold shares – some of which are selling at just 30 to 35 percent of their peak prices in 1974. 'If leverage has worked against you on the way down,' he reasons, 'why not take advantage of it on the way up?'" New York Times, December 19.
Solid advice for investors today, too.
- "What's his [Thomas J. Holt] prediction for the future price of gold? 'A new high, reaching above $200 an ounce, within the next couple years.'" New York Times, December 19.
His prediction was conservative; gold reached $200 nineteen months later, by July 1978.
It's clear that there were positive "voices in the wilderness" during that big correction, and as we all know, those who listened profited mightily.
There were other interesting tidbits, too. For example, gold stocks had been performing so poorly for so long that some advisors suggested a strategy we also hear today…
- "It is probably too late to sell gold shares, the stock market's worst-acting group these days, except for one possible strategy: selling to take a tax loss and switching into a comparable gold security to retain a position in the group." New York Times, September 12.
Even back then, it was widely known that gold often bucks the trend of the broader markets…
- "You might put a small portion of your money into gold shares and pray like the dickens that you lose half of it. In that way, chances are that if gold shares go down, the rest of your stock portfolio will go up." New York Times, September 12.
Gold miners provided critical revenue and jobs, just like today. From the August 2 issue of Time magazine…
- "South Africa, the world's largest gold producer, is being hurt the most. The price drop will cost it at least $200 million in potential export earnings this year."
- "Layoffs at the gold mines would make it even worse – the joblessness could intensify South Africa's explosive racial unrest."
- The Soviet Union, the world's second-largest gold producer, is feeling the price drop, too. The Soviets depend on gold sales to get hard currency needed to buy US grain and other imports."
Gold was also used as collateral…
- "The international gold market was also roiled yesterday by a report by the Commodity News Service that Iran was negotiating to lend South Africa roughly $600 million, predicated on a collateral of 6.25 million ounces of gold."
And just like today, there were plenty of stupid misguided US politicians: From the New York Times on August 27:
- "The drop in gold bullion prices from $126, which was the average at the first IMF auction June 2, provoked the Swiss National Bank to attack Washington's attitude toward the metal as 'childish.' Aside from the estimated $4.8 billion of gold reserves held by Switzerland, bankers there advocate some role for the metal as a form of discipline against unrestricted printing of paper money."
That last statement from the Swiss bankers is hauntingly just as true today.
Last, you know how the government in India has been tinkering with the precious-metals market in its country? And how it's led to smuggling? From the New York Times on August 27:
- "India announced it was resuming its ban on the export of silver. India is believed to have the largest silver hoard and the government there freed exports earlier this year as a means of earning taxes levied on overseas sales. However, most silver dealers minimized the significance of India's move yesterday. As one dealer explained, 'Smuggling silver out of India is so ingrained there that the ban will have no effect on the flow. It never has. Indian silver will continue to ebb and flow into the world market according to price.'"
So what's the difference in mood today vs. the mid-1970s? Nothing! This shows that the same concerns, fears, and confusion we have now existed at a similar point in the gold market then. There were also those who saw the big picture and stayed vigilant. Virtually every comment made in 1976 could apply to today. Keep in mind that most of the statements above are from two publications only; there are undoubtedly many more similar comments from that year.
The obvious lesson here is that patience won out in the end. It took the gold price three years and seven months to return to its December 1974 high. It only took another 18 months to soar to $850. Today, that would be the equivalent of gold falling until June this year, and not returning to its $1,921 high until April, 2015. It would also mean we climb to $6,227 and get there in November, 2016. Could you wait that long for a fourfold return?
This review of history gives us the confidence to know that our gold investments are on the right track. I hope you'll join me and everyone else at Casey Research in accepting this message from history and staying the course.
So, what will your kids or grandkids read in a few decades?
- "Buy gold. It's going a lot higher." Jeff Clark, Casey Research, March 4, 2013.
