Yellowstone

Did the ECB Save COMEX from Gold Default?

wobatus - question
> Can you eat gold?

Not unless you want to.
But you can dig it up and use fractions of a gram to buy food with when there is a famine and currency debasement. See following video and article:

Zimbabwe - gold for bread
MDC activist Sam Chakaipa returns to his village in rural Zimbabwe to find his friends and neighbours starving to death, reduced to panning gold powder from the rivers to exchange for food at an exorbitant rate.

www.guardian.co.uk/wor...

The Manipulation of Gold Prices

Excellent work James Conrad.

In a financial world filled with conventional (incorrect) wisdom, rampant error and deep obsfucation, your article is a great example of the fine indepth pursuit of the underlying truth that the gold and sound money advocates have come up with these last 8 years and more.

Rather than writing gold advocates off as conspiracy theorists, they are one of the few groups over the last ten years that have tried to clearly see and accurately understand the gross distortions that the current debt based fiat money system was fostering. Many foresaw and warned of the potential implosion of this unstable system, consistently for years now.

Now we live through it. In some ways agast at the scale and speed of the unravelling. Confident that the sound money solution to many of these problems will only be grasped for in extremis - when all else has failed.

Meanwhile we witness the folly of mountains of fresh debt creation to bailout failed institutions, themselves victims of their own profligate debt money creation. What a circus.

We are witnessing one of the greatest artificial attempts by a monetary authority to counter the inexorable laws of economic nature, by manipulating everything - which failed institutions should fail, who should get bailout money etc. etc. All this by a basically bankrupt monetary authority.

New debt based money issuance floods from the sky into ( targeted ) hands and the conventional wisdom is fixated on deflation - because the free flow of fresh debt based money is not flowing in all ( consumer ) quarters. Well that may be, but it is ceratinly flowing in some quarters.

Gold and silver, the monetary metals, and their historic acceptance as assets of last resort, have always and do now stand as the only viable threat, and repudiation of, to this debt based ( inverted ) money pyramid ( John Exter's inverse pyramid ). That is why so much manipulative effort would be focussed on such a seeming minor commodity.

But as in all things based on falsehood, obsfucation and deception, they can only go so far, and they run out of gas.

I only regret that we have to go to such extremes of experimentation ( with fiat money systems ) rather than heading the advice of those who knew e.g. the founding fathers in the Constitution.

See todays article by Prof. Antal Fekete

Red Alert: Gold Backwardation!!!

news.goldseek.com/Gold...

Long Ideas for an Upcoming Crash

I like AUY and have long term holdings. ABX I have always had a problems with, because of their being the King of the Hedgers ( fixed price forward sales ). I prefer GG and AEM. I have been holding HL for some time now, but recently doubled my holdings as some wacko shorts drove the price down to below 8.00. Thanks guys for the fire-sale prices.

Gold Prices Can Fall, Regardless of Fundamentals

I read the same article and agree with it, especially the last point:

16) Finally, AND THIS IS KEY: ‘Real interest rates’ (T-bills less CPI) need to be positive by at least +2%. (They are currently negative by that much).

But I also agree that gold prices can deviate from the fundamentals in the short term ( months, weeks, days ).

Deviation from the fundamentals in the longer term runs into a lot more resistance, and when the resistance is overcome gold's price ( over the last nine years ) tends to quickly levitate to a whole new higher level.

It's a great bull market, resist it if you wish. I will go with it's flow until the real issue's of inflation are addressed. At present some are not even acknowledging inflation as a problem, while others ( Bureau of Labour Statistics and the FED ) actively try and disguise it's presence. What folly.

Gold as an Investment? Think Again

Rather than focus on gold's properties as money. Golds role as an asset of last resort is unchalleged, a fact regardless of all the Keynesian propaganda and programming of the last 70 years. At times central banks play games with it, mainly because it's the only real threat to their fiat currency regimes. However even though they may resent it much, in many cases it's the only so-called commodity they will hold as a reserve asset.

And when the time comes, and the profligate fiat games have gone to an extreme, gold, all by itself, will set about balancing the books and setting a fairer value to the paper fiat of the day.

It's a natural tide of nature, not to be feared or loathed, just to be harnessed while the re-balancing takes place. I would say the fiat nightmare created by the FED since 1913 is the real horror story.

Dr. Gold is making a house call, and is here for healing and restoration only.

Gold as an Investment? Think Again

Well said brewtul.

Measure any index or asset against gold for the last 8 years, weather it's the DOW, S&P 500 etc. and gold has been a great alternative. I agree, for most people, it is a great insurance, best taken is small portions, due to it's apparent short term volitility. However when you take the incoming tide ( e.g. last eight years ) it can be a great investment, as long as you don't get shaken out at the wrong time.

Of course gold ( and silver for that matter ) are unique in many ways. Physically it's high value for it's size, it's transportability, ease of acceptance throughout the world, it's almost indestructable (noble) properties, makes it quite different to other commodities. It's unique history as a currency, it's beauty and safety in handling add to it's uniqueness.

Also it's no one's liability, unlike some of the alchemical paper instruments such as CDO's, SIV's and MBS of recent creation, that are currently being so severly discounted. It's a real asset, not like a bond, which is someone else's promise to pay, with an insurance fee ( interest ) in case they default.

Over the last eight years carefully managed porfolios of gold and silver stocks have also been stellar performers. They will continue to be great performers until gold is done discounting all the fiat currency machinations of the last 30 years ( or more ).

Bespoke's Commodity Snapshot (5/1/08)

Head and shoulders top for gold? I don't think so. Hee hee! If you have been riding the golden bull since 2001 this is just a typical shakeout or bull market correction. Watch this "head and shoulders top" resolve itself to the upside in the next few weeks. The fundamentals have not changed. Ben is still overheating the printing press. This thing is just getting warmed up. Once the weak hands are out, it off to the races again.