Bill Herbert

The Arithmetic of Gold: Why Its Price Has No Ceiling

Check your facts David - There is no way that Central Banks "own" 4.8 million tons of gold. Unless it is phony "gold" - paper promises and concocted 'lease' documents and smoke and mirrors and derivatives and...and........God knows what. Anything, of course, but the actual pure yellow metal.

Why do you think they refuse real audits, and have for centuries??? Why does Nymex have to change the settlement rules in a mad panic, with gold still at a low, low $1,000 per ounce?? There are so many wankers betting the other way, and trying to talk it down, but yet, strangely, it is now OK to deliver phony paper money against a contract that absolutely GUARANTEED the delivery of the actual physical metal, come Hell or high water.

If you can't read between those lines, go back to your dreams and totally phony govt. stats from corrupt and clueless bureaucrats. It will be quite a day in the "financial" markets, that revolve around fraud and illusion, and paper money of rapidly declining value, when people try to finally get back to the hard, physical reality of owning something that others desire, and demand payment in - the real, physical metal (that doesn't exist, never did, and yet had been "sold" to any number of suckers through the larcenous and totally fraudulent ETFs and so on.)

I believe we will turn on our TVs and see politicians, WS bankers, and ETF managers staring down the barrels of guns, held by an outraged citizenry that realizes, too late but unmistakably, that it has been had, and is simply not going to accept anything but delivery of the gold it has been (fraudulently) promised.

This is the world's, and history's, greatest deception, by far. I would guess that the CBs could produce no more than 300,000 tons of actual gold, no matter how they twisted and turned. Not "press release gold" or "Ben Bernanke's testimony" gold, or "JP Morgan's certified statement of ownership" gold, audited by some thoroughly corrupt 'Big 4' accounting firm, but real GOLD. The real deal, that they no longer have.

The rest has been leased out, stolen by corrupt governments, or quite likely, never existed in the first place. The lies surrounding CB gold are gargantuan and beyond the average person's imagination. You will see gold over $10,000 USD in less than fifteen years, and possibly in less than five. Mark my word, the fraud will be blown away very soon, and the physical metal will be as scarce as hen's teeth, and politicians will be hiding out in mountain cabins rather than face the music.

China's Silver and Gold Download

>>Once Hong Kong's gold is safely back in the new vault there in Hong Kong, watch China use the Hong Kong Dollar as a stalking horse for the Yuan by pegging the HKD to their gold and watching what happens. Never, ever forget that when dealing with China, NOTHING happens by "accident".<<

M.A.D. - You are so right. I would surmise that over the next few years, we will see China rapidly accumulating gold and other PMs, as well as building huge stockpiles of industrial metals. While some argue that this would be counterintuitive (driving down the dollar, thereby shooting themselves in the foot) I suspect that the Chinese have already calculated the inevitability of the US Dollar sinking much further, and don't want to be the lone soldier trying to hold the fort against economic reality.

In fact, this trend of dumping dollars quietly for REAL goods has already begun - I think China will also become very aggressive in terms of buying up mines, processing plants (mills), and so on over the next year or two.

For one thing, it is now pretty obvious that we will not have the 'global Armageddon' some were touting six months ago, and that prices will be headed in one direction for a long time - UP. That is due to the huge pile of paper money swirling around the globe - it will find a target in real assets. I believe the Chinese will be aggressive buyers of prime commercial property as well - it's sort of like a giant Monopoly game at this point - many very prime properties in major cities can be had for a big cash outlay, and can be refinanced later if needed at very low rates.

I'm buying miners, silver, gold and looking seriously at plucking some deep value from the distressed commercial REITs.

Today in Commodities: A Fitting End

Matthew, or anyone -

I've been holding off valiantly on the long nat gas / short crude oil trade for the past two months. With the ratio now around 26.3 to 1 as of the close on Friday 8/21, I can't stay away from it any longer.

I know we have an enormous NG glut and I also know that demand is likely to remain stagnant for at least the next few months, as we get into milder weather and slack industrial usage. It could get ugly, but I will be surprised if the Crude-to-NG ratio can go beyond 30-to-1.

I'm wondering if anybody has some insights as to how to most effectively position the account in terms of moderate risk, a hedged position, and reasonable use of leverage. I want to be there when the spread comes in, and I would love to triple my invested money in a few months from riding the position, and the move may occur quite suddenly and violently depending on world events and/or a big hurricane.

Any constructive thoughts would be appreciated,

thx

Are GLD and SLV Legitimate Investment Vehicles?

Obviously, this will result in a colossal fraud being revealed at some point.

I can't imagine how scams like this are allowed to be generated, and clean out investors' accounts time and again, but we keep letting the crooks run the accounts and write the securities laws, don't we, so it keeps on going and going, just like the Eveready bunny.

This running con game has all the earmarks of a gigantic smoke-and-mirrors operation, and yet there is NO action being taken by CFTC or SEC, even after Madoff and Stanford and Bayou and all the others?

Positively outrageous, if you ask me.

Hedge Fund Eton Park Saw Golden Opportunities in Q109

Mindich looks like a real idiot with this portfolio.

Long Goodyear. Long Viacom.

And long POT Puts.

Good Grief!!!

It's hard to imagine how this guy is managing so much money, unless it's one of those kickback deals we keep reading about.

I hope Cuomo throws all these crooked creeps in jail for a good long time. That's where they belong.