frdm45

Porter Stansberry: Gold 'Nowhere Near the Top'

On Dec 20 08:17 PM ManAboutDallas wrote:

> Watch for China to undertake an experiment in a gold-backed currency
> by using their gold, newly returned to Hong Kong from the United
> Kingdom, as backing for the Hong Kong Dollar. It'll be an experiment,
> a "stalking horse" if you will, in preparation for backing the Yuan
> itself with gold.
>
> Hasn't anyone asked themselves WHY China has kept the Hong Kong Dollar
> alive all these years after they got Hong Kong, itself, back?

I agree that China will play a significant role in what direction gold and silver take in the next decade. But from what I read the amount of gold returned to Hong Kong from the UK was only small in terms of central bank holdings, like 3 or 5 tons? Is this enough to back the currency of HK? But again, I do agree, by getting all its citizens to buy gold and silver, over the long term (20 to 50 years, which is the timeline on which the chinese think), will facilitate the hard asset backing of their currency and help turn it eventually into the next world reserve currency. Sad but true.

Porter Stansberry: Gold 'Nowhere Near the Top'

On Dec 20 05:19 PM wakeup_call wrote:

> The questions should be asked "what gives gold value?". As far as
> I am concerned, they are only good for making jewelry at this point.
> The gold standard is a thing of the past and paper money is taking
> place as the medium of exchange. Why would gold be worth anything
> now if not for that it looks pretty. Ant what about the comment that
> all other countries are buying gold like crazy, is that really happening?
> I would be careful if some investment advisor tells me to buy something
> because everyone is expecting to buy it and that is why the price
> will increase. Also, finally, I think all interviews with investment
> institutions should disclose the institutions' position in the particular
> securities or commodities they are commenting on. Otherwise, who
> would know the institution is not engaged in a pump and dump scheme.

This post has so many holes in it, I'm sure other posters can help take it apart, where to start...............

So, fiat, paper money has intrinsic value? Gold has been accepted as a medium of exchange for 6000 yrs, and the US dollar? Anyway, no one is saying we are going to get rid of paper, it is just that in the future the paper we have will be tied to a fixed amount of gold and/or silver. That is the definition of a gold standard or bimetallic standard.

The author goes out of his way to say he "DOESN'T" recommend gold stocks, and there is full disclosure at the bottom of the article, the author only recommends bullion, so HTF can you pump and dump a commodity unless you have a few billion? Did you even read this article?

The poster "wake-up call" is really Jon Nadler who came up with this anonymous handle just to make this post?

Nothing Like the Real Thing: Sprott Physical Gold Trust

GLD (and SLV from what I read) doesn't hold the actual bullion, it is held by "trustees", who are not audited. The fund is not actively managed, sure, but how do you know the trustees are not leasing the bullion out, if they are not audited. I posit you can't make any assumptions about the trustees if they are not audited. Most people familiar with these systems believe the bullion banks have acted as fractional reserve systems for gold and silver.

JPM holds one of the largest concentrated short positions in the history of all commodities in silver. And they manage the SLV. I wonder if they have encumbered any of the silver in the SLV with their large short position.

Why did JPM two months ago start accepting gold bullion as collateral when it had never done so before? It is desperate to get its hands on physical. Why is the comex now settling deliveries in shares of GLD? It doesn't have enough physical to satisfy delivery demands. I think it is fairly obvious there has been much more paper gold and silver sold than there is physical. If you feel comfortable holding SLV and have satisfied yourself that your paper shares represent actual physical holdings - great. However, if more people start to convert paper to physical and it is discovered there exists a large fractional lending system for physical gold and silver, I will feel comfortable in my physical bullion holdings and mining shares.


On Dec 13 05:27 PM kohalakid wrote:

> There is nothing is the GLD or SLV prospectuses that allow the trustees
> to encumber the gold. The prospectus of GLD says the fund is "not
> actively managed" and that the fund produces no income. Lending the
> gold would certainly be considered "active management" and the only
> reason to lend it out would be to produce income.
> It sure seems like Einhorn's move out of GLD and into physical was
> because it was cheaper for him to pay storage and insurance on physical
> than to pay the management fees associated with GLD. His move does
> show he has long term confidence in his gold holdings, and that's
> a good sign.

Nothing Like the Real Thing: Sprott Physical Gold Trust

Good. Sprott's gold will be "unencumbered", according to the prospectus.

Does the GLD say their gold is unencumbered anywhere in its prospectus?

I don't see why anyone would use GLD for any reason other than as a short term trading vehicle.

If I had owned GLD shares and had watched what David Einhorn of Greenlight Capital had done with his - dump them all for physical gold, I would have been extremely nervous about just what he had uncovered, and would have dumped mine in a heartbeat as well.

If you plan to keep your money in silver or gold etf for more than a couple of weeks, do your homework and get out of GLD and SLV, and consider something like this.

I have no affiliation, long or short positions in any bullion related etf.

...

Gold Bugs Are Warned, Again

Oh, and try to lighten up as well.

Gold Bugs Are Warned, Again

BE WARNED!

Your article points to the manipulation of the gold market. This is a fact, not a conspiracy theory, JPM has sold more gold and silver short than one years total world gold production and a significant percentage of silver.

Yes, you're right, the miners have negative cash flow. Its because their costs are higher, and their commodity, gold or silver, is no longer allowed to find true price discovery on the metal exchanges. At the recent gold conference in London, the consensus of most of the miners was that costs are close to $900/ounce.

So be warned. Two things will happen:

One - the paper fraud will be exposed for what it is (naked shorting) and when cental banks and investors realize there is much less physical gold and silver floating around than claimed by the fractional reserve systems supposed to hold it, the price of gold will really start to move and the miners will move in accordance.

Two - the paper fraud will continue and if you see gold dropping towards $900/oz you will see much gold production and exploration come off-line, and what will that do to the price?

I doubt we will see gold below $900/oz again in our lifetime unless we have a complete collapse of our sociey in which case garden tools will be worth more than gold (which I don't think is likely).

So be warned!

PS - Can you please stop using that phrase? Most of us here respond to a logical argument and don't need to be condescended to by someone who sounds like our father or the school principal.


.....

Smart Money Is in Precious Metals, But a Local Top Is Close

Why does this author talk about gold and silver tops in almost every single article? And he seems to take the same "on the fence stance" in each one as well, with each title sounding very ominous. I'm not trying to be disrespectful, just calling them as I see them. TAKE A STAND!

Junior Miners: Poised for Impressive Gains

Hi Jeff from a fellow Canuck,

Great article! I agree, it seems absurd to say these miners could crash when most of them are not far off their lows.

Do you think there may be some pick-up in demand for these shares in the new year when funds are reevaluating what they are holding and looking for the new "it" sector? What other major catalysts do you see spurring this sector, or do we just have to be patient for another two or three years and see gold hold above $1200, $1500?

thanks, keep up the good work!

Beyond GLD: Four Alternative Gold ETFs

I'm not trying to be alarmist or a conspiracy theorist, just read the GLD prospectus and draw your own conclusions about what exactly you own and you rights associated with it:

Excerpt from the GLD prospectus on page 11:
www.spdrgoldshares.com...
Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.

Silver: Use Leverage on the Laggard Metal

A great little silver producer with enormous ounces in the ground currently trading at less than half of book value:

Revett Minerals TSX-V: RVM

Yes, of course I own it. They had some issues but seemed to have overcome the worst of them.

Doug Casey: Why Gold Miner Stocks Are 'Burning Matches'

For a great article on picking junoirs google Rick Rules' "How to pick a Junior Gold Stock" written about two years ago when the junior miners started crashing.