Has the collapse begun? Is paper gold selling in a panic to buy physical?

[mamboni]

The paper prices of gold and silver appear to be in free fall collapse. This is far faster than even TPTB would want IMHO because it puts tremendous strain on the bullion supply and is disruptive to markets. I am now wondering: are paper gold and silver prices collapsing as large players panic out of paper and make a mad dash for physical bullion? Why are COMEX inventories suddenly dropping in a waterfall? Why are GLD shares being redeemed at such a rapid pace? I am past worrying about the prices of gold and silver vis-a-vis my physical holdings. I have a bed feeling about what is transpiring now. I sense panic and fear, and those are never good when they're associated with markets. What do you guys think: is this just a mid-70s style vicious correction or is the bottom falling out of the paper gold market in prelude to the big collapse as foretold by FOFOA?

[osoab]

I think this is the Asian hangover from Friday.

[Spectrism]

The drop can be driven by emotion stimulated by manipulation- of course. It does not have to make much sense logically... or fundamentally. Roller-coasters are more fun when they have steep dives. Just don't have a heart attack from the G-forces.

[Large Sarge]

I think this is quite serious

this might be the final act of desperation


awhile back Richard maybury explained the fed policy, and inflation like this

like pushing on a string.

you get waves of deflation

then waves of inflation

there seems to be some issues worldwide with velocity of money, people are scared to spend, invest, etc their money

Cyprus theft, and Japanese monster QE are in some regards sending a message to savers, get out there and party like its 1999

have to see what happens, but primarily it is psychology, as the good dr mamboni pointed out

[Glass]

agreed, the velocity of money is the main issue. Debt has to be created faster than it is extinguished. Consumers are not doing this so the Govt has to step in. As the people are the source of all credit/energy they get stiffed with the debt regardless.

[Jewboo]

http://i.huffpost.com/gen/197125/thu...ANKE-large.jpg

Dr. Roberts: “This is an orchestration (the smash in gold). It’s been going on now from the beginning of April. Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.

Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold. So what they are trying to do is scare the individual investor out of bullion. Clearly there is something desperate going on….
“I have assumed from the beginning that it is the Fed’s concern with the dollar because the dollar is being printed in huge quantities at the same time that other countries are abandoning the use of the dollar as international payment.

The exchange value of the dollar is (being) threatened, and if that collapses the Fed loses control over interest rates. Then the bond market blows up, the stock market blows up, and the banks that are too big to fail, fail. So it’s an act of desperation because they’ve got to establish in people’s minds that the dollar is the only safe place, it is the only safe haven, not gold, not silver, and not other currencies.

Linky

[woodman]

The drop can be driven by emotion stimulated by manipulation- of course. It does not have to make much sense logically... or fundamentally. Roller-coasters are more fun when they have steep dives. Just don't have a heart attack from the G-forces.

So true. What is going on with the metals prices is like a storm. Weather is created naturally or perhaps in this case they have been using their haarp machine. In any case there is turbulence. It is a hell of a ride but we are experiencing wind-sheer. Hold on to your seat. If you need the vomit bag, use it, but realize that the aircraft is sound and there is still plenty of space between the craft and the ground. What goes up can come down, but what is forced down, will spring back up. Now is a good time to buy if one has the money.

[Spectrism]

I would suggest keeping a fair portion of your powder dry for now. Cover your vital needs first. I think very few of us will survive past 3 years so the idea of holding wealth through this storm is a false dream. We are in times UNLIKE any that have gone before. Many will say there have been world wars and famines and depressions and great genocides. I say- true. But the size of what is being unleashed makes all that went before seem small. The gun control push and the grab for weapons to fight law-abiding citizens should be the only clue you need. They mean to snuff all voices of liberty.

[mamboni]

I think this is quite serious

this might be the final act of desperation


awhile back Richard maybury explained the fed policy, and inflation like this

like pushing on a string.

you get waves of deflation

then waves of inflation

there seems to be some issues worldwide with velocity of money, people are scared to spend, invest, etc their money

Cyprus theft, and Japanese monster QE are in some regards sending a message to savers, get out there and party like its 1999

have to see what happens, but primarily it is psychology, as the good dr mamboni pointed out

The vexing question for the individual is: where is it safe to park one's wealth? Cash? Stocks and Bonds? Gold? Real Estate?

The vast majority of people have not discovered gold as an option for capital allocation. This recent correction/collapse will either be seen as a major negative or a major opportunity. Faber thinks the latter. Time will tell.

[JDRock]

mamboni, im sticking with silver ,lead and gold. I honestly believe this IS the beginning....this will follow the ammo shortage. first, the gov hoarding ammo ( slv & gld) then when the sheep realize the gov's intent the panic buying begins ....but alas, supply will not be found. jmho