Joshua Morgan Brown

Major Changes Coming to India's Gold Market

Hey Carlos,
Thanks for reading...I don't come across in this piece with a strong opinion on what the effects will be, my goal here was simply to frame the debate.

That said, I would imagine that cultural signifcance or not, someone who needs to feed their family in Inida or elsewhere would probably melt and sell...

what are your thoughts?


On Jul 07 11:39 AM Carlos Lam wrote:

> The author's article reveals an inconsistency that I call on him
> to answer: is gold ownership in India primarily for wealth storage
> or primarily "of cultural significance?" If the former, then there
> may indeed be a dampening of import demand. However, in the long-term
> may even such a dampening be "dampened" itself by India's rising
> middle class?
>
> If the latter, then I fail to see how a large portion of Indians'
> gold jewelry will be monetized; will a prized ornament, for example,
> be thoughtlessly melted down and converted to gold bars? That sounds
> strange. I am unfamiliar, however, with Indian customs vis-a-vis
> heirlooms; their view of prized ornaments may differ from ours.

The Rise of the Silver Surfer

Thanks for your comments SOCPHD

Allow me to substantiate some of my "nonsense", I'm in a good mood so what the hell...

The Slingshot Effect is a very real phenomenon. Silver maven Ted Butler has written a great deal on the subject, as have many other metals watchers who are infinitely more educated on the subject than you or I. Here is another example of the Slingshot Effect being quoted, so you don't just chalk up this possibility to "my imagination":
seekingalpha.com/artic...

Silver has been a form of currency dating back at least to Ancient Sumeria, as I mention in the article. This is one of the oldest major civilizations on record. Is that a long enough time back for you?

Gresham's law is multi-faceted, and does indeed have important ramifications for the gold to silver price in currencies and commodities

I do not recall indicating anywhere in the article that I have a degree in geology, yet 10 minutes worth of research or 10 days worth of research will likely lead you to the conclusion that my 15 to 1 ratio of silver to gold is widely-accepted and fairly accurate. If you want to refute that, take it up with the Natural History or Minerals and Metals scholars, that's not my debate.

Lastly, I don't need to push anything on my clients, but I appreciate your attempt to get nasty and personal with me...very nice. I am sorry for the frustration this world must cause you, but trust me, you do not have to worry about ever being one of my clients.

Thanks for reading.


On May 24 05:41 PM socphd71 wrote:

> 1. Low commodity prices are a danger for SLW. The miners from
> whom they are buying will reduce their output in response to low
> prices for their base metals. Thus, they have less silver to sell
> to SLW.
>
> 2. The author (J.M. Brown) mixes good sense with nonsense. There
> is more of the former, but watch out for the latter. (a) What is
> the history of the gold: silver 15:1 ratio? Gold has been used for
> millenia. Silver for how long? I don't know. So this statement
> is completely unsubstantiated. (b) How long have people known that
> the ratio of silver to gold in the earth's crust is 15:1? vs. How
> long have people been buying, selling, and minting silver and gold?
> (c) Gresham's law is: "Bad money drives out good." (d) The "slingshot
> effect" is ridiculous. It shows that Mr. Brown has an excellent
> imagination. If he uses ideas like this to sell to his clients,
> I'm glad I'm not one.
>
> 3. One can find lots of junior miners on the Agora.com website.
> Then you can do your own homework.
>
> Disclosure: long Energold Drilling (seekingalpha.com/symbo...),
> FNX Mining (seekingalpha.com/symbo...), ECU silver mining
> (seekingalpha.com/symbo...). These all trade under different
> symbols on Canadian exchanges.

The Rise of the Silver Surfer

ok, I appreciate your insights, as I stated at the bottom of the article, I was not writing as "the foremost authority" and I was actually looking for informational feedback.

But please do tell, if silver is not currently trading slightly above 14, then where is it? Am I looking at prices from an alternate universe or something?

I didnt discuss manipulation or the attempt to corner by the Hunts in my piece but your commentary of such was a welcome addition to the discussion here.


On May 22 10:38 AM one eye wrote:

> I do not have a clue as to what the ACTUAL price of silver would
> have been Had the Hunts not made their bid to Corner the Market.
> You don't either.
>
> Using a Historic, Manipulated price adjusted for Inflation is not
> justifiable.
>
> Apparently you do not keep up with the markets either. Silver is
> not "slightly" above $14.
>
> Gold was at $1,000 and silver at $20 last year, thats a 50 to 1 ratio
> just like the CEF ratio which has been maintained for DECADES also.
>
>
> If gold were adjusted for Inflation, some have pegged a fair current
> Value somewhere North of $2,000. This correlation should apply to
> Silver as well. Working Backwards, The $850 Gold price of acheived
> in the Last go around gives Silver "An all time" 1980 price of $17
> and correlates quite well with what occurred in 2008.
>
> To me, that Translates into a minimal current Price Of $19/oz. given
> that stupidity reigns in the Silver Markets and the decline in production
> has been A Known since last year, Silver should have the capability
> to Overshadow the price of Gold on a percentage basis by at least
> 2 to 1.
>
> That Manipulated All time High of $50 may actually be reached on
> a self-fulfilling basis.

Gold: Where Fashion Meets Finance

that was a thought that popped into my head too...when they make a video game about buying and selling gold, maybe that will be the peak

lol
thx for reading


On Apr 03 04:05 AM Conan the Barbarian wrote:

> I guess that's it, everyone now knows about gold.
>
> Its even in Fashion.
>