What rubbish. Just try buying an ounce of physical gold or silver at the “official” (paper) prices. Good luck! The premiums for physical are keeping the actual price of physical PMs up. We are seeing a divergence between paper gold and physical gold, IMHO. This split will continue, as investors who believe they have an option for physical delivery try to get their hands on “their” gold. Good luck to them, too!
Cool, Imma buy at 750...
We’re destroying wealth faster than central banks can create it. Of greater importance is how one defines “wealth.”
I know how I do and it can’t be corrupted.
Brian, the LBMA market has been running on something like a 40-1 paper to metal ratio. It’s a fractional reserve bullion system. It works just fine until people want to take possession of their gold.
That time has come. Ever since ABN AMRO announced a gold default on the 1st April the wheels have been coming off.
This caused a run on the Gold held by LBMA member banks. That’s why there was that orchestrated selloff. The Fed (who have a huge stake in the reserve status of the dollar) sold 500 tons of paper gold in a single day in an attempt to shake metal out of weak hands.
Which didn’t work out so well. There are queues of buyers round the block at Scotia Mocattia (Toronto), UBS (Zurich) and in Hong Kong. The *enormous* Dubai Gold souk has been cleaned out. And that’s with Gold at 1400.
If you want to apply technical analysis apply it to a decoupling market. I don’t doubt that paper promises of Gold will pass through 700 bucks/oz - on their way to zero.
Actually, the price of paper gold will probably fall to zero sometime within the near future.
Gold bullion, however, is selling near all time highs in almost all currencies despite the best price suppression efforts of central bankers. Just about everybody with an I.Q. greater than a carrot expects this trend to continue unabated as long as rampant money printing continues.
In related news, for some mysterious reason, Ben Bernanke To Miss Jackson Hole Symposium Due To "Scheduling Conflict". This is sort of like a football coach missing a big game because of "other commitments." The Helicopter does not want to talk to other economists or face the media, even in a structured, sheltered, controlled and friendly environment. For the life of me, I can't figure out why this would be so.
Rubbish. If that we're true, then the Fed should buy up 100% of the debt, we can cancel all taxation, and just keep the Fed purchasing debt.
If I had to bet my life, I’d bet Gold reaches $2000 before it reaches $1000.
For gold to go under the equivalent of $1000/oz, I think we would need to see a one world/basket of currencies with gold confiscation. The one thing fiat currency has over metals is its legal status as currency. However, there is still too much competition among the banksters and global powers when it comes to monetary policy.
There are a lot of evil greedy folks on top, but I don’t believe that they can act harmoniously and in concert against the little people. The people on top still like to compete against each other.
.. now I understand why those radio ads offering to trade your soon-to-be worthless dollars for their gold. Golly gee.
Goldbug ping.
Um, but the Fed's purchases [from its member banks] supply them with cash which they use to buy new debt. Those dollars then enter the economy through the government's spending. Highly inflationary.
Does this guy even know what he's talking about?