Comments on James Conrad's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/james-conrad/articles http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-343165 343165 FDR confiscated all the private gold in the U.S. in 1933 (except > for wedding rings and minor jewelry) at $20 an ounce. It's now sitting > in Fort Knox. Who got the best of that deal? There is no reason not > to think the government wouldn't step in again if the price got out > of hand.]]> Thu, 01 Jan 2009 06:27:27 -0500

On Dec 04 11:48 PM Allamad wrote:

> FDR confiscated all the private gold in the U.S. in 1933 (except
> for wedding rings and minor jewelry) at $20 an ounce. It's now sitting
> in Fort Knox. Who got the best of that deal? There is no reason not
> to think the government wouldn't step in again if the price got out
> of hand.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-335380 335380 Sharefin is so filled with zealous determination to attack this article, > that he is capitalizing on a mistake I made in verbiage for the first > paragraph. > > First, when I say that the gold and silver shorting behavior is abnormal > to commodity markets, I am talking about commercial short positions. > The vast majority of speculators are always long on gold and silver. > They are generally the victims, not the perpetrators. The so-called > "commercials"... are the short sellers, and they are heavily represented > by the big bullion banks. > There is no other commodity, other than gold and silver, in which > commercial short sellers create huge numbers of highly transient > short positions in the middle of bull markets, ignore the fact that > the market keeps rising, and keep adding to their short positions > until the market comes crashing down. This has continued to happen > in the midst of vastly increasing world demand for gold and silver. > Take oil, as an alternative example. When demand was high, commmodity > speculation was running rampant, and prices were exploding. Then, > with demand destruction, prices crashed. In the gold market, we know > that demand is soaring, but prices on the futures markets have, nonetheless > crashed. This is abnormal price behavior. If this were only happening > now, I would attribute it to the recent credit default event selling, > but it is not unique to now. It has been happening, over and over > again, for at least the last 21 years. > > Here's an example of how the gold market is played. In the beginning > of last week, with the prospect of an avalanche of delivery demands, > records indicate that commercial shorts added about 5,000 transient > short positions. This crashed gold to the $700 range. In "olden times", > when the non-leveraged longs did not exist, this would have prevented > most deliveries from happening, as the longs panicked and sold their > positions back to the short sellers, being unwilling to take more > loans in order to take possession of a declining metal. This time, > however, when the short sellers finally realized that they were dealing > with a different "animal" and that non-leveraged longs would be filing > their delivery demands no matter what, the increase in open interest > abruptly closed, and a mini-panic began, sending gold prices up by > over $100 per ounce, in a matter of only 3 days. > > This type of shorting behavior is not unique to last week. In July, > just before the U.S. government initiated what I believe is its new > policy of paying interest to foreign money center banks who agree > to sequester eurodollars, 3 major gold shorting banks suddenly increased > their short positions by close to 10 times what they were, just one > month prior to that. It is now rather obvious that these banks had > inside information from the U.S. Treasury or Federal Reserve. They > knew what was going to be done to the dollar. No one without inside > informatino would have increased their short positions by 10x, in > a fast rising futures market, in the midst of exploding world demand, > and at a time when no one else guessed that the dollar was going > to rally. We can only guess the identity of these banks because, > unlike futures markets in nations like Japan, U.S. futures regulator, > CFTC, refuses transparency and will not agree to release the bank > names. > > Finally, some of you have commented that one should not buy gold > futures, because you are afraid of counter-party risk. I do not agree. > COMEX futures contracts are backstopped by the entire membership > of the exchange, and it is doubtful that the U.S. government would > allow the exchange to go bankrupt, even if it meant releasing a small > portion of Fort Knox gold to save them from uncovered delivery demands. > The same is even more true of NYSE-Liffe, which has the entire wealth > of the New York Stock Exchange membership backing it up. So, I think > you will get your gold or silver, if you pay in full for your contracts, > and take delivery. > > It is important to start buying gold and silver on futures exchanges > for two reasons. First, it is the cheapest place to buy both metals. > You can avoid all the hefty dealer markups if you buy futures and > take delivery. Second, in order to end the manipulation more quickly, > the short selling crew needs to be put out of business. They have > accomplished what they have, over the last 21 years, by taking advantage > of leveraged long desperation. If you are not leveraged, and have > sufficient liquidity to really buy your contracts, you will be immune > to their shenanigans. You can simply take delivery, put the gold > into your safe deposit box or other safe place, and no matter how > they manipulate the price in the short run of a few months to a year, > the price will rise exponentially in the longer run. This is a mathematical > certainty because of fundamentally flawed dollar dynamics, and a > continuing worsening of the differential between world supply and > demand for both metals. > > Now that the European central banks are refusing to sell gold, the > supply has dried up, which is probably why some of more honest portions > of various investment banks are forcing COMEX to make deliveries. > If people continue to force the short sellers to make deliveries, > the game will be over, because naked gold shorts no longer have easy > access to real metal. Last week's delivery demand avalanche was coupled > with the exit of many leveraged longs. Furthermore, it follows on > hefty demands for delivery in late September. Another episode, hopefully > even bigger, in the February delivery month, will, in all likelihood, > sink the gold manipulators, and catapult gold into the stratosphere. > > > Let me give you some facts about how to do this. First of all, you > need to open a futures account. There are hundreds of brokers, but > not all alleged futures brokers are really full fledged futures brokers. > Many will refuse to facilitate delivery. For example, Interactive > Brokers, OptionsXpress, ThinkorSwim, and many others only claim to > handle futures. Such brokers refuse to deliver. RJ O'Brien, MF Global, > E-futures, and many others on the other hand, DO facilitate delivery. > Make sure you open your account at a brokerage houses that accommodates > delivery, and doesn't just push you into the casino-like speculation > game. Remember that in casinos, in the long run, only the house wins. > > > DO NOT BUY COMEX miNY contracts. They ARE NOT SUBJECT TO DELIVERY > DEMANDS! MiNY COMEX contracts are cash settled. If you don't have > enough money to buy a full contract, buy the NYSE-Liffe mini-Gold > and mini-Silver contracts. With NYSE-Lifee, you can take delivery > of 32.6 ounces of gold, and 1000 ounces of silver. However, if you > do have the cash, the standard 100 ounces gold and 5,000 ounces of > silver are usually cheaper per ounce, and you can buy them either > on COMEX or NYSE-Liffe. ALL 100 ounce and 5,000 ounce contracts are > subject to delivery demands. > > Taking delivery and paying for temporary storage on gold, will set > you back $25 plus about $12 per month storage for each bar at one > of the COMEX warehouses. There will also be a charge from your brokerage > house. Yes, I know, you won't leave your bars at the exchange, but, > you will need to pay for a few days storage, before you pick them > up, or have them delivered by Brinks, so they will hit you for the > whole month minimum charge on each bar. > > Brinks, and a number of other gold delivery agents can take the bars > and deliver them to you anywhere in the USA, or even overseas, at > a relatively low cost, compared to the value of the gold. You can > contact them for more information, or ask your brokerage house. Jim > Sinclair, at JSMineset.com, is currently putting together a summary > of delivery charges, from the various gold/silver delivery services. > The costs of delivery are a few dollars cheaper on NYSE-Liffe, at > least at HSBC, but the difference is not significant.]]> Mon, 22 Dec 2008 01:02:29 -0500
My Coin Dealer make his 2% I save Brokage commissions, storage and delivery costs and I can take a Mini Bar every two weeks or so and dollar cost average in ...Win-Win ....But I would like to tweak those shorts a little in the future.... If I am missing something here please let me know

Jeff S.
AutoBank


On Dec 05 04:34 AM James Conrad wrote:

> Sharefin is so filled with zealous determination to attack this article,
> that he is capitalizing on a mistake I made in verbiage for the first
> paragraph.
>
> First, when I say that the gold and silver shorting behavior is abnormal
> to commodity markets, I am talking about commercial short positions.
> The vast majority of speculators are always long on gold and silver.
> They are generally the victims, not the perpetrators. The so-called
> "commercials"... are the short sellers, and they are heavily represented
> by the big bullion banks.
> There is no other commodity, other than gold and silver, in which
> commercial short sellers create huge numbers of highly transient
> short positions in the middle of bull markets, ignore the fact that
> the market keeps rising, and keep adding to their short positions
> until the market comes crashing down. This has continued to happen
> in the midst of vastly increasing world demand for gold and silver.
> Take oil, as an alternative example. When demand was high, commmodity
> speculation was running rampant, and prices were exploding. Then,
> with demand destruction, prices crashed. In the gold market, we know
> that demand is soaring, but prices on the futures markets have, nonetheless
> crashed. This is abnormal price behavior. If this were only happening
> now, I would attribute it to the recent credit default event selling,
> but it is not unique to now. It has been happening, over and over
> again, for at least the last 21 years.
>
> Here's an example of how the gold market is played. In the beginning
> of last week, with the prospect of an avalanche of delivery demands,
> records indicate that commercial shorts added about 5,000 transient
> short positions. This crashed gold to the $700 range. In "olden times",
> when the non-leveraged longs did not exist, this would have prevented
> most deliveries from happening, as the longs panicked and sold their
> positions back to the short sellers, being unwilling to take more
> loans in order to take possession of a declining metal. This time,
> however, when the short sellers finally realized that they were dealing
> with a different "animal" and that non-leveraged longs would be filing
> their delivery demands no matter what, the increase in open interest
> abruptly closed, and a mini-panic began, sending gold prices up by
> over $100 per ounce, in a matter of only 3 days.
>
> This type of shorting behavior is not unique to last week. In July,
> just before the U.S. government initiated what I believe is its new
> policy of paying interest to foreign money center banks who agree
> to sequester eurodollars, 3 major gold shorting banks suddenly increased
> their short positions by close to 10 times what they were, just one
> month prior to that. It is now rather obvious that these banks had
> inside information from the U.S. Treasury or Federal Reserve. They
> knew what was going to be done to the dollar. No one without inside
> informatino would have increased their short positions by 10x, in
> a fast rising futures market, in the midst of exploding world demand,
> and at a time when no one else guessed that the dollar was going
> to rally. We can only guess the identity of these banks because,
> unlike futures markets in nations like Japan, U.S. futures regulator,
> CFTC, refuses transparency and will not agree to release the bank
> names.
>
> Finally, some of you have commented that one should not buy gold
> futures, because you are afraid of counter-party risk. I do not agree.
> COMEX futures contracts are backstopped by the entire membership
> of the exchange, and it is doubtful that the U.S. government would
> allow the exchange to go bankrupt, even if it meant releasing a small
> portion of Fort Knox gold to save them from uncovered delivery demands.
> The same is even more true of NYSE-Liffe, which has the entire wealth
> of the New York Stock Exchange membership backing it up. So, I think
> you will get your gold or silver, if you pay in full for your contracts,
> and take delivery.
>
> It is important to start buying gold and silver on futures exchanges
> for two reasons. First, it is the cheapest place to buy both metals.
> You can avoid all the hefty dealer markups if you buy futures and
> take delivery. Second, in order to end the manipulation more quickly,
> the short selling crew needs to be put out of business. They have
> accomplished what they have, over the last 21 years, by taking advantage
> of leveraged long desperation. If you are not leveraged, and have
> sufficient liquidity to really buy your contracts, you will be immune
> to their shenanigans. You can simply take delivery, put the gold
> into your safe deposit box or other safe place, and no matter how
> they manipulate the price in the short run of a few months to a year,
> the price will rise exponentially in the longer run. This is a mathematical
> certainty because of fundamentally flawed dollar dynamics, and a
> continuing worsening of the differential between world supply and
> demand for both metals.
>
> Now that the European central banks are refusing to sell gold, the
> supply has dried up, which is probably why some of more honest portions
> of various investment banks are forcing COMEX to make deliveries.
> If people continue to force the short sellers to make deliveries,
> the game will be over, because naked gold shorts no longer have easy
> access to real metal. Last week's delivery demand avalanche was coupled
> with the exit of many leveraged longs. Furthermore, it follows on
> hefty demands for delivery in late September. Another episode, hopefully
> even bigger, in the February delivery month, will, in all likelihood,
> sink the gold manipulators, and catapult gold into the stratosphere.
>
>
> Let me give you some facts about how to do this. First of all, you
> need to open a futures account. There are hundreds of brokers, but
> not all alleged futures brokers are really full fledged futures brokers.
> Many will refuse to facilitate delivery. For example, Interactive
> Brokers, OptionsXpress, ThinkorSwim, and many others only claim to
> handle futures. Such brokers refuse to deliver. RJ O'Brien, MF Global,
> E-futures, and many others on the other hand, DO facilitate delivery.
> Make sure you open your account at a brokerage houses that accommodates
> delivery, and doesn't just push you into the casino-like speculation
> game. Remember that in casinos, in the long run, only the house wins.
>
>
> DO NOT BUY COMEX miNY contracts. They ARE NOT SUBJECT TO DELIVERY
> DEMANDS! MiNY COMEX contracts are cash settled. If you don't have
> enough money to buy a full contract, buy the NYSE-Liffe mini-Gold
> and mini-Silver contracts. With NYSE-Lifee, you can take delivery
> of 32.6 ounces of gold, and 1000 ounces of silver. However, if you
> do have the cash, the standard 100 ounces gold and 5,000 ounces of
> silver are usually cheaper per ounce, and you can buy them either
> on COMEX or NYSE-Liffe. ALL 100 ounce and 5,000 ounce contracts are
> subject to delivery demands.
>
> Taking delivery and paying for temporary storage on gold, will set
> you back $25 plus about $12 per month storage for each bar at one
> of the COMEX warehouses. There will also be a charge from your brokerage
> house. Yes, I know, you won't leave your bars at the exchange, but,
> you will need to pay for a few days storage, before you pick them
> up, or have them delivered by Brinks, so they will hit you for the
> whole month minimum charge on each bar.
>
> Brinks, and a number of other gold delivery agents can take the bars
> and deliver them to you anywhere in the USA, or even overseas, at
> a relatively low cost, compared to the value of the gold. You can
> contact them for more information, or ask your brokerage house. Jim
> Sinclair, at JSMineset.com, is currently putting together a summary
> of delivery charges, from the various gold/silver delivery services.
> The costs of delivery are a few dollars cheaper on NYSE-Liffe, at
> least at HSBC, but the difference is not significant.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-335102 335102 Sun, 21 Dec 2008 13:59:52 -0500 http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-334857 334857 Jim > > The markets are manipulated by cartels and that is common knowledge > and can be PROVEN. Cartels and or monopolistic trading are NOT endorsed > by regulatory bodies in certain markets.]]> Sun, 21 Dec 2008 01:22:31 -0500

On Dec 18 11:14 PM Ashmore wrote:

> Jim
>
> The markets are manipulated by cartels and that is common knowledge
> and can be PROVEN. Cartels and or monopolistic trading are NOT endorsed
> by regulatory bodies in certain markets.]]> http://seekingalpha.com/article/94314-the-great-dollar-pump-of-2008-a-doomed-central-bank-intervention?source=feed#comment-334453 334453 Sat, 20 Dec 2008 01:02:31 -0500 http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-333592 333592 Thu, 18 Dec 2008 23:14:02 -0500
The markets are manipulated by cartels and that is common knowledge and can be PROVEN. Cartels and or monopolistic trading are NOT endorsed by regulatory bodies in certain markets.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-333047 333047 I just watched the price of Gold fall from US$877 to $US860 (9:35am > New York time, 18 December 2008) in about 5 minutes. These markets > need to be regulated. I also believe that a better system needs to > put in place to price gold. Shorts and longs dictating the price > of gold and no one taking delivery (small percentage historically).? > > Whats right with this system? ZERO. GATA have tried to do something > about this but in my eyes they have not done enough. They should > be working towards a new pricing system and introducing that to the > market and if you want to sell gold at the manipulated price its > up to you. I don't think there is a prison big enough for Wall Street.]]> Thu, 18 Dec 2008 10:41:51 -0500
These markets are heavily regulated.

" I also believe that a better system needs to
put in place to price gold"

Because buyers and sellers agreeing to a price in the market doesn't work for you? LOL!

"Shorts and longs dictating the price of gold"

Buyers and sellers dictating the price of gold.

" I don't think..."

We noticed.


On Dec 18 09:40 AM Ashmore wrote:

> I just watched the price of Gold fall from US$877 to $US860 (9:35am
> New York time, 18 December 2008) in about 5 minutes. These markets
> need to be regulated. I also believe that a better system needs to
> put in place to price gold. Shorts and longs dictating the price
> of gold and no one taking delivery (small percentage historically).?
>
> Whats right with this system? ZERO. GATA have tried to do something
> about this but in my eyes they have not done enough. They should
> be working towards a new pricing system and introducing that to the
> market and if you want to sell gold at the manipulated price its
> up to you. I don't think there is a prison big enough for Wall Street.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-332953 332953 Thu, 18 Dec 2008 09:40:46 -0500 Whats right with this system? ZERO. GATA have tried to do something about this but in my eyes they have not done enough. They should be working towards a new pricing system and introducing that to the market and if you want to sell gold at the manipulated price its up to you. I don't think there is a prison big enough for Wall Street.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-327108 327108 Fri, 12 Dec 2008 08:19:39 -0500 http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-326770 326770 You've ignored the first part. The overnight rate fell below the > official federal funds rate. My understanding is that the overnight > rate to borrow from the Fed has now dropped into the range of a fraction > of a percentage point. That means the banks are not borrowing at > 1%. The rate is somewhere below that. But, because the Fed pays at > fixed rates, banks are making a profit, not a loss, on the reserve > deposits. > > In other words, you may as well take your money, put > it in a mattress, and sleep on it, rather than deposit it with one > of these brokerage houses in a MM fund! Yesterday, the effective > rate on Treasury bills dropped to zero! > > Personally, if I am going to be forced to sleep on my money, rather > than paying bankers to hold it for me...I'd rather sleep on a physical > currency known as gold, rather than a paper currency like the dollar. > > > > 12:26 AM Jim Myrtle wrote:]]> Thu, 11 Dec 2008 18:02:09 -0500
The Fed doesn't loan money at the Fed Funds rate. Banks borrow from each other at the Fed Funds rate.

"Interesting to note that there are now predictions that Treasury
Note based money market funds are now going to be paying less than zero percent"

Who predicted that? The same guy who doesn't know the difference between Fed Funds and Discount Rate (that'd be the author of the article)?



On Dec 11 04:13 AM Philman wrote:

> You've ignored the first part. The overnight rate fell below the
> official federal funds rate. My understanding is that the overnight
> rate to borrow from the Fed has now dropped into the range of a fraction
> of a percentage point. That means the banks are not borrowing at
> 1%. The rate is somewhere below that. But, because the Fed pays at
> fixed rates, banks are making a profit, not a loss, on the reserve
> deposits.
>
> In other words, you may as well take your money, put
> it in a mattress, and sleep on it, rather than deposit it with one
> of these brokerage houses in a MM fund! Yesterday, the effective
> rate on Treasury bills dropped to zero!
>
> Personally, if I am going to be forced to sleep on my money, rather
> than paying bankers to hold it for me...I'd rather sleep on a physical
> currency known as gold, rather than a paper currency like the dollar.
>
>
>
> 12:26 AM Jim Myrtle wrote:]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-326661 326661 Thu, 11 Dec 2008 15:46:43 -0500 Until and unless Gold to Dow reaches 1 or lesser, all assets are inflated. That would be the inflexion point. But Gold price per ounce will not reach $2000. I would think the equilibrium price considering all selling by Central Banks (which outweighs retail buying) and Hedge funds would be $1500.

My prediction is we will see $1250 per ounce when Dollar falls to 1.5 per Euro. Now Dollar is 1.3 to Euro. It should oscillate between $1100 and $1500 with a mean around $1250 from May 2009 till Dec 2009.






]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-326482 326482 Thu, 11 Dec 2008 12:58:35 -0500
Thanks,
Matt Blackman
]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-326110 326110 "The overnight rate happens to have dropped way below the “official” > federal funds rate. Meanwhile, rates paid by the Fed on required > deposits are only .1% less than the federal funds rate, and on voluntary > deposits only .35% less than the federal funds rate. Accordingly, > U.S. banks can engage in a dollar based one-nation carry trade, which > further sequesters the newly printed dollars. > > Banks are borrowing from the Fed, then taking the same money, redepositing > it, and earning a spread on the interest rate differential" > > Banks borrow from the Fed (Discount rate 1.25%) and deposit the funds > at the Fed to earn FedFunds -0.1% (0.9%) or Fed Funds -0.35% (0.65%)? > > > Is this your idea of easy profits? Sign me up for this carry trade. > LOL!]]> Thu, 11 Dec 2008 04:13:56 -0500
Interesting to note that there are now predictions that Treasury Note based money market funds are now going to be paying less than zero percent. In other words, you may as well take your money, put it in a mattress, and sleep on it, rather than deposit it with one of these brokerage houses in a MM fund! Yesterday, the effective rate on Treasury bills dropped to zero!

Personally, if I am going to be forced to sleep on my money, rather than paying bankers to hold it for me...I'd rather sleep on a physical currency known as gold, rather than a paper currency like the dollar.


12:26 AM Jim Myrtle wrote:

> "The overnight rate happens to have dropped way below the “official”
> federal funds rate. Meanwhile, rates paid by the Fed on required
> deposits are only .1% less than the federal funds rate, and on voluntary
> deposits only .35% less than the federal funds rate. Accordingly,
> U.S. banks can engage in a dollar based one-nation carry trade, which
> further sequesters the newly printed dollars.
>
> Banks are borrowing from the Fed, then taking the same money, redepositing
> it, and earning a spread on the interest rate differential"
>
> Banks borrow from the Fed (Discount rate 1.25%) and deposit the funds
> at the Fed to earn FedFunds -0.1% (0.9%) or Fed Funds -0.35% (0.65%)?
>
>
> Is this your idea of easy profits? Sign me up for this carry trade.
> LOL!]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-326098 326098 Thu, 11 Dec 2008 03:08:06 -0500 The Humpty Dumpty analogy brings to bear the current dilemma. No one can question at this point that he has fallen, but in pre-emptive haste, whatever remaining capital we haven’t managed to piss away, our “fearless leaders” have managed to “double down” & re-leverage the financial mess in screwy ways that seem to be more disconnected and insane with each new round of failures. The government’s efforts to keep Humpty Dumpty from falling further, may have delayed his decent, but postponing the inevitable (by transferring massive debt onto taxpayers) we have increased his inertia. To paraphrase what Marc Faber has said, “No one in these governments have considered the option of doing nothing, thus letting the overleveraged institutions fail and by allowing bankruptcy to ensue, affording the natural course of events to take place.”
The reality check is that heavily populated cities will have hungry desperate people in need and in fear. Looking on the news today at Athens, Greece, it is reasonable to conclude that this spells a “powder keg” for every country in the world as all will ultimately be dealing with similar fall-out when all hope is lost. My uncle has recently lost many millions of dollars by going down with the blue chips like GM, this after I pleaded with him to move at least 10% of his holdings into physical gold. He and at this point, many like him, have gone from wealth to despair and the prospect of poverty in their old age. This is a global crisis and many millions that only had a job & no savings from China & Russia to Europe, Japan and everywhere else are waking up unemployed with families to feed and no hope of their screwed up governments assistance.
So to those of you who do not have your head in the sand (or elsewhere), open your eyes to this “brave new world.” Develop a plan for yourself & for your loved ones. Many are not so privileged to be able to purchase gold; others seem to indicate that other mediums will retain their wealth better. As I’ve heard it said in California, “It’s all good!” At any rate, beware of the “financial tsunami,” because it’s coming to your neighborhood too.
]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-326060 326060 Thu, 11 Dec 2008 00:26:31 -0500
Banks are borrowing from the Fed, then taking the same money, redepositing it, and earning a spread on the interest rate differential"

Banks borrow from the Fed (Discount rate 1.25%) and deposit the funds at the Fed to earn FedFunds -0.1% (0.9%) or Fed Funds -0.35% (0.65%)?

Is this your idea of easy profits? Sign me up for this carry trade. LOL!
]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-325934 325934 Wed, 10 Dec 2008 19:40:55 -0500
Why the banks are not lending
Why we are not in hyperinflation despite all the new money that is being created
Why gold is not skyrocketing
Why the dollar has gotten stronger
Why commodity prices broke down
Why the stock markets are rallying instead of crashing


And he predicts the coming BKs of Insurance Companies…



Caution I don’t know this gentlemen and it is the first time I have read him…. I understand he is a PHD who writes a daily newsletter …but can’t seem to track him down…. If anyone out there knows his web address or email let us know might want to subscribe to his daily newsletter but I don't have have any more time to look ....So untill Conrad tells us more about himself...I will take this all with a grain of salt

AutoBank

]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-325691 325691 Wed, 10 Dec 2008 13:17:56 -0500 ]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-325638 325638 Wed, 10 Dec 2008 12:30:16 -0500
My guess is this. The whole problem of the value of bullion resides with the bond market. If bond markets collapse completely, then you'll see very high interest rates after a long course of relatively high interest rates. But in a situation of quantitive easing, we will see chronically low interest rates, but a decline in the currency. This is a defacto devaluation of the dollar against gold. I believe that the same will occur around the world, that low interest rates and quantitive easing adopted in the G7.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-325147 325147 Tue, 09 Dec 2008 21:43:49 -0500
However, I do have some problems with the conclusions drawn from them, especially how gold will become the store of inflation. I suppose that one can leverage themselves to the hilt, invest in gold, and wait for the price spike predicted in this article, but here's the rub: what's to say that an equivalent price spike wouldn't happen for all other commodities whose supply also do not increase like the fiat currencies? What about profitable companies, which would have to pay more for inputs, but will similarly charge a lot more for their products as well? The author went to great pains to show how gold will inflate in value when compared to fiat money, but left this simple argument out of the picture.

So, I would conclude that the author is trying to convince holders of cash and treasuries to invest in gold, but this has no relevance to me, as I am a contrarian stock picker.

One last comment: To all the rabid bloggers out there denouncing all other assets for the sake of gold, Ben Graham debunked this hypothesis numerous times in his published works. He advocated holding stocks with a large margin of safety over gold, and indeed, saw it as a huge plus when compared to high-yielding bonds.

For the sake of civilized society as we know it, I hope he's right.

]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-324796 324796 My question is at what price level is the confiscation of gold triggered? > Surely those thrifty souls who are holding gold bullion instead of > fiat wood pulp with cheap green ink splattered on it will be forced > to give up their stashed metals to the very ones who have destroyed > the currencies of the world. At $2000, $3500, $5000 or higher. The > gold bug is their enemy and they are thieves, so they will surely > pass laws to confiscate gold eventually. Any insights or opinions > out there? Thanks.]]> Tue, 09 Dec 2008 13:22:09 -0500

On Dec 04 02:37 PM mayeeden wrote:

> My question is at what price level is the confiscation of gold triggered?
> Surely those thrifty souls who are holding gold bullion instead of
> fiat wood pulp with cheap green ink splattered on it will be forced
> to give up their stashed metals to the very ones who have destroyed
> the currencies of the world. At $2000, $3500, $5000 or higher. The
> gold bug is their enemy and they are thieves, so they will surely
> pass laws to confiscate gold eventually. Any insights or opinions
> out there? Thanks.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-324477 324477 My question is at what price level is the confiscation of gold triggered? > Surely those thrifty souls who are holding gold bullion instead of > fiat wood pulp with cheap green ink splattered on it will be forced > to give up their stashed metals to the very ones who have destroyed > the currencies of the world. At $2000, $3500, $5000 or higher. The > gold bug is their enemy and they are thieves, so they will surely > pass laws to confiscate gold eventually. Any insights or opinions > out there? Thanks.]]> Tue, 09 Dec 2008 08:42:01 -0500 Michael


On Dec 04 02:37 PM mayeeden wrote:

> My question is at what price level is the confiscation of gold triggered?
> Surely those thrifty souls who are holding gold bullion instead of
> fiat wood pulp with cheap green ink splattered on it will be forced
> to give up their stashed metals to the very ones who have destroyed
> the currencies of the world. At $2000, $3500, $5000 or higher. The
> gold bug is their enemy and they are thieves, so they will surely
> pass laws to confiscate gold eventually. Any insights or opinions
> out there? Thanks.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-324427 324427 Tue, 09 Dec 2008 07:15:20 -0500 http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-324379 324379 Tue, 09 Dec 2008 03:07:59 -0500
I'm sure you realize that illegal drugs are bought and sold in all 50 states, and that criminalizing possession of gold would be the end of all social order, far worse than Al Capone depression era bootleggers. Outlawing gold would force a moon shot to $5000 an ounce.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-324336 324336 Tue, 09 Dec 2008 00:06:18 -0500 Bullion.com If you care to buy...]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-323845 323845 Mon, 08 Dec 2008 11:44:57 -0500 http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-323774 323774 Mon, 08 Dec 2008 10:43:48 -0500
If you want to invest in Europe or the U.S. in Canadian listed gold companies, there is a really useful short cut you can take.

All Canadian listed companies are listed on the Berlin exchange against the will of the companies themselves, because naked short selling on the Berlin exchange is just part of the way business is done in corrupt Canadian markets.

But European short selling boiler rooms cannot themselves de-list these stocks, because they have long chains of outstanding naked shorts held against these stocks. These stocks are not SUPPOSED to be listed on European exchanges, but they just happen to be. So you could buy (or short) any company you wanted on Canadian exchanges without having to pay special fees or go through broker which deals in international listings. U.S. investors simply buy the cross-listed pink sheet stock.

1. To find out if your gold company pick is listed on the Berlin Exchange, just type in the first word or two of the company name to find its listing in Europe:

finance.yahoo.com/lookup?

Reuters has a great lookup. Ex:

tinyurl.com/5tyr3m

2. But how do you go about finding these stocks? Its very easy. There is a very good resource on the web with an impartial assessment of probably the best stocks going in the sector. You have to pay a little to get it, but it might be worth it in the end. It costs $US 100 to take a one month subscription:

www.kaiserbottomfish.c...

Focus on companies which have gold as its primary resource without any exposure to base metals. (at least, if you are a deflationist)

F6

]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-323726 323726 Mon, 08 Dec 2008 10:11:42 -0500
"Exponential rise in the price of gold would follow a pattern similar to other commodities and be indicative of hyperinflation."

This is not borne out by the facts. Lets say inflationary pressures exist to overwhelm burgeoning deflation. Its always possible. This would challenge the world reference currency and result in higher gold prices, but not necessarily higher commodity prices. You cannot assume that supply/demand scenarios are suddenly interrupted because of a move in the currency. Commodities are not a store of value and have never historically been a store of value, because overwhelming supply can come on very unexpectedly. Prices are very likely to remain where they are with a decline in the $US, if it occurs.

Take nickel prices as an example. Nickel prices collapsed while the dollar was collapsing. This stands in direct contradiction to the notion that commodities appreciate with a declining currency. Its patently untrue.


]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-323534 323534 Mon, 08 Dec 2008 05:00:47 -0500
As we speak, every country around the globe that matters (with perhaps short-term exceptions of Germany and Canada) are passing one bailout after another. They are all financing it with debt (what else?) and this is mega inflationary!

If all this bailout bonanza accomplishes its goal of getting the world out of a recession by spending money that nobody has on more goods that nobody needs, the question will not be "which currency will weaken?" but "which one will weaken more?" Inevitably, they will err on the side of overcorrecting and cause inflation.

Intermediate term this is bullish for gold, of course. But it is also bullish for every other "hard" asset, including precious and semiprecious metals, ag commodities, oil and equities of profitable companies.]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-323468 323468 Mon, 08 Dec 2008 00:32:42 -0500 www.runtogold.com/2008.../


]]> http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=feed#comment-323327 323327 Sun, 07 Dec 2008 18:35:50 -0500
The actual value of the dollar, which has been deflating all along, right under our eyes, was about 2 red cents. It is substantially less than zero now, and with inflation will be so far below zero it can't even be seen. But the "belief" in dollars, the need to pay fixed rate mortgages with it, still stands. Those debts will be paid off more easily in time with inflation.

There is also a certain amount of concurrent deflation and inflation. Purpose being to confuse. Deflation, I believe, is to corner the real estate market. Marxism is also about taking the land. When this is accomplished, then the purpose is to inflate gold, and buy more land. Think about it, the only things of real value are gold, land, water, food, & freedom / or power, whichever you desire. And of course, your Maker. You can gain the whole world and lose your soul. I believe this is an epic power struggle that has already been won by the good, but also an opportunity to value freedom and personal choice, somehow holding faith and love as the greatest powers. True things have value, and the rest is smoke and mirrors mirage and fear. Remember your own power is within you, made in God's image. The opposite of mirage.

May we all have spiritual discernment and peace to hear it. This battle is not really in the physical, only mirrored here. It is about power, and ideologies, and faith. It is more real in the unseen than the visual arena. To do real battle, go quiet and seek guidance from real, not fake power.

I know this all sounds a bit odd, but answers have come this way that saved my life. Spirit knows what the mind cannot fully understand. Go where knowledge can't.

Stay in this moment, calm, centered. Act from there. Cut the puppet strings of reaction. I love the move of taking the physical metals out of the COMEX. That is the kind of game move I'm talking about. Just love it. No one says we have to play by "the rules." Change the rules. See it differently.]]>