Philman

Hong Kong's Gold Move Means Nothing

Hmmm...I take some of what I wrote back. I just read your other articles. It seems that you don't have blinders on. You just needed a bit of education on how the futures markets are manipulated. You seem to have gotten that, and added it to your existing knowledge of the cash market for gold. Bravo. You are now joining the ranks of the enlightened! I'll be following your articles...

Hong Kong's Gold Move Means Nothing

Bron, I remember when you were very critical of articles concerning gold futures market based manipulation, written by James Conrad. You claimed, in what you wrote in the first article, that he didn't know anything, because he referred to the London Bullion Market as the London Metals Market, or something like that. Then, although you toned down your rhetoric as he proved himself more and more knowledgeable than you could have imagined, you continued to write skeptical comments each time a new article appeared.

That was back when gold was in the low $700s, and he was telling people that in a few months, it would soar. He was right and you were wrong. Doesn't that say something to you? Perhaps, that you either have blinders on, or are in denial...

That being said, I think that you are right about gold not going substantially over $1,000 per ounce, quite yet.

Will the Market Crash?

In other words, very good timing...although, today, the market is up. Interesting and strange that one day should be so much the opposite of another...but, I suppose that, after a fall like yesterday, there is bound to be a bounce of some kind...

Will the Market Crash?

Hey, Bud, maybe a lot of bears are now out and growling, but this particular article must have been written over the last weekend or on Friday last week, because it was published by S.A. and readable by me at about 4:30 AM eastern time, on the morning of the 17th, before any triple digit falls on the DOW!

On Aug 18 01:08 AM Mad Hedge Fund Trader wrote:

> rtyu. Wow! One triple digit move down in the Dow, and all of a sudden, everyone is bearish.

Will the Market Crash?

Looks like everything is playing out, today, just as predicted by this author. We shall see what the next few weeks bring.

Will COMEX Default on Gold and Silver?

Hey, Sevenmile, the only one who is clueless is YOU!

The article is talking about delivery on NYSE-Liffe mini-gold, NOT COMEX miNY gold. The two are different exchanges! They just happen to share the same warehouses, because NYSE-Liffe is smaller than COMEX but many of the same derivatives dealers use it. The NYSE-Liffe mini contracts WERE AND ARE supposed to be deliverable.

The difference now is that they won't give you delivery on 1 contract. Before, you could get 1 kg. worth of a gold bar. Now, you must share a gold bar of 100 ounce size with 2 other people, or you need to buy 3 minis.

Get your facts straight!

NYSE Runs Out of Gold Bars: What Happens Next?

Looks like we are headed for an overall shortage of gold. This is an early sign of the shortages heading from the retail market into the wholesale market. Prices are going to rise, because, if not, the clearing members of COMEX are going to have their gold cleaned out.

Tim Iaconno just wrote an article in which he relays a conversation he had with the folks over at the Streettracks ETF, GLD. It can be found here:

seekingalpha.com/artic...?

The GLD people answered the burning questions so many people have been having about how the fund can increase by so many alleged tons of gold without any evidence that any gold is actually being moved in or out. Iaconno didn't realize the revelations he was passing along are the basis of an illegal Ponzi scheme.

GLD basically admitted that they aren't really buying any gold, and are just moving it from "unallocated" to allocated storage. Which means, of course, that they are cheating some poor slob, who innocently purchased unallocated gold from people like the Perth Mint, or Kitco, and who doesn't know about the PPT banks and how they are scamming gold buyers.

For example, Kitco, which has a close relationship with one of the most commonly accused banks, alleged to be manipulating gold prices, HSBC, solicits people to invest in the Kitco unallocated gold "pool". I'm not exactly sure what the specifics are, or what investors are being told, but many will probably assume their gold is sitting in an "undivided" condition, somewhere in the HSBC vault, because that is where Kitco gets most of its gold (when it has gold). The truth, however, is that such gold is not safely in storage for the buyers. Rather, it is subject to being gobbled up by the GLD ETF.

Such gold, gobbled up to take care of subsequent purchasers of GLD, won't be there when the gold pool owners want and need it. If they want to convert to physical, they may be out of luck! If that ain't a Ponzi scheme, I don't know what is!

Hopefully, when people begin to realize that a severe shortage of real gold is developing, they will buy it like crazy, and bankrupt the PPT controlled bullion banks!

Where Does the Gold ETF Get Its Gold?

If the folks at GLD say that they are transferring gold from unallocated accounts to the allocated account of the ETF, they ARE ADMITTING TO FRAUD!

Kitco, for example, runs an unallocated gold sales scheme, and uses the ostensible HSBC warehouses to store the alleged unallocated gold. It sells shares in what is, apparently, another Ponzi scheme (according to the results of your phone call) to innocent investors who believe they are investing in gold bars which, although not assigned specifically to them, at least exist. When, however, HSBC transfers the gold from Kitco's unallocated account into the ETF, it and Kitco (if the latter is aware of the transfer) defraud the investors in the unallocated accounts, and, potentially, to the investors in GLD.

A bankruptcy judge would certainly order a return of this gold to the Kitco account for the benefit of creditors, if Kitco went bankrupt, and could impose a constructive trust upon it, requiring a return of the fraudulent transfer, in the event an investor sued Kitco or HSBC or both.

In short, if the information that Tim Iaconno is reporting is correct, then the Kitco gold "pool" as well as the HSBC stored GLD ETF are both Ponzi schemes in which one investor is being paid off by using the investment in gold that belongs to other investors now or in the future. This should be immediately reported to state prosecutors in both New York and Canada, so further investigation can be pursued, and the culprits who are behind the scheme are brought to justice.

Fed Intervention, Market Response Confirm: We're on the Path to Hyperinflation

Homer,

The Fed has no choice. The momentum building in gold and silver will soon be unstoppable. They will probably crash it a few more times, but, in the long run, the manipulation is doomed. A critical point will come in their dollar manipulation, when the production of dollars gets to the critical point that a chain reaction will come about, imploding the dollar, and breaking gold and silver free from the constraints the fed would like to impose.


On Mar 22 12:54 AM Homer II wrote:

> Simit, you said "...as the Fed's interventionist behavior will make
> rational analysis difficult and perhaps fruitless." and yet you
> recommend holding precious metals? What do you call the drop in
> metals prices last August if not "interventionist behavior" by the
> Fed? The government well know if precious metals are allowed to
> seek their true level, that the Dollar will fall inexorably as PMs
> rise. So, they "meddled" to suppress the natural tendency for Gold
> to rise beyond $1000/oz and forced it down into the $700s to crush
> the appetite of the wise investors... and prop up the Dollar to buy
> some more time.
>
> So, do you think now, the government will allow metals prices to
> float up freely, speaking metaphorically?

Fed Intervention, Market Response Confirm: We're on the Path to Hyperinflation

Ken, you say "We are not on the path to hyperinflation. The market even says so.

Can you possibly be so naive? The market was also telling us, in October, 2007, that boom times were ahead, with a DOW of over 14,000. Let's see...where is the DOW now? People like you are cheerleading when it goes above 7,000!

We are not only about to see hyperinflation. More accurately, we are going to see a hyperinflationary depression of the same type and kind that was seen in Weimar Germany from 1919-23. But, it is good that we still have some foolish people, like you, out there. It allows me to load up on gold and silver, without paying $2,000 per ounce, quite yet...

Buy stocks, Ken! I need someone to sell mine to!

Fed Intervention, Market Response Confirm: We're on the Path to Hyperinflation

Hmmm...deflation? Unfortunately, other than in government reports, and the price of gasoline, housing, and a few other basic commodities, I'm not seeing any. I just went out to eat, today. Less diners. Much higher prices. Last week, same thing. Went to Macy's two nights ago for their 1 day sale. They raised all the jewelry prices by about double, only to claim that they were taking 50% off.

No, I'm afraid there is NO deflation on the horizon, and none happening now. What I am seeing, in my everyday life, is INFLATION, with capital letters. I am also seeing stores and restaurants closing. But, the ones still open, are charging me higher prices. I don't know where the government gets its numbers on the CPI. I think they invent them...


On Mar 21 07:35 PM ddtuttle wrote:

> We are currently experiencing deflation on a global level. World
> net worth has dropped something like 50%, an amount that dwarfs the
> amounts actually "created" by central banks. We are in a deflationary
> spiral that show no signs of stopping.
> When prices finally stop going down we'll have assets worth a fraction
> of their former value and many times the corresponding money supply.
> That will be a recipe for inflation, but from massively deflated
> values and prices.
> Until then cash (and gold) are king. Once the inflation starts, then
> you'll want to switch to commodities (and gold).

The Manipulation of Gold Prices

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.

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!

Gold - Not the Safe Haven People Think it Is

You should not write further on this topic until you have done enough research to become an expert on precious metals. That will require hundreds of hours of work that you have not yet done.

In short, your most fundamental historical facts are incorrect. The U.S. government was absolutely NOT propping up gold during the panics of 1807, 1819, 1826, 1837, 1842, 1861, 1865. Gold was an entirely free agent that occasionally filled a commemorative coin, but that was about it. The United States of America was, at the time, a relatively minor economic force in the world, dwarfed by the power of England, France, Germany etc. It still followed the silver standard, NOT the gold standard.

In the 18th century, China, like today, was draining the world of its money, which, at that time, was mainly backed by silver. China, like other nations, was on the silver standard. The U.K. was also on the silver standard. A currency that was literally named for what it was the "pound sterling" (one imperial pound of sterling silver) reigned supreme in the world of currencies. But, silver from Europe and America was being fast drained away by the voracious appetite of the Chinese for the white metal.

In 1818, the silver standard was abandoned by Holland and replaced with the gold standard. This was followed, shortly thereafter by most continental European nations. In 1844, the silver standard was finally abandoned by its creator, Great Britain, in favor of gold. In 1873, the United States of America abandoned silver and adopted the gold standard.

In short, you are wrong. Gold did not perform well, historically, simply because the U.S. government was "propping" it up. Gold and the human psych has such a long and intimate association with one another, that it is unlikely that any action by the government against the price will suffice for long in suppressing it.

If you look further back in history, gold served as a safe haven during the time of Abraham when grain sought in Egypt, in the midst of a widespread crop failure in the Middle East was paid for with gold, during the buildup of the Athenian Empire after the Persian Invasion, during the later Peloponnese wars between Athens and Sparta, during the course of the Roman Republic, and, especially, at the fall of the Roman Empire, particularly in Palestine during the times of the Hebrew revolts against Rome, and at all times in history before and after all of these events.

The fact that people turned to gold during the fall of the Roman Empire is still evident in Britain, when people sometimes dig in their backyards and find a pot of Roman gold buried, long ago, by frightened Romans, and, later, forgotten about.

Stagflation or Deflation?

It occurs to me that the government is doing the same thing, now, as it did in the 1930s. They are still intervening in the gold market, trying to lower the price even though we don't have a gold standard anymore, and the dollar is independent of gold. But, it is an archaic relationship, and they should just drop the paranoia already. Gold can go up, and the dollar can still be the world's currency, if the U.S. economy recovers. The dollar is going to be worth less, in the long run, no matter what they do.

Let things take the natural course. Let people hoard their little "golden coins", or, in modern times, their little interest in GLD or SLV. Eventually, they will climb out of their bunkers and start to invest in the stock market and spend money.

What the the government is doing, by attacking gold & silver, artificially propping up the dollar so we can't sell anything abroad, and intervening everyday on the stock market is just stupid. It is just dragging things out. People will start to feel that they have options, no where to turn, and will get depressed. As Mr. Conrad says, that causes Great Depressions. So, the way they are handling things, they are going to cause it to happen.

The government should take its hands off, and let capitalism work this out. Let the GSEs go bankrupt through Chapter 11, like other companies. To the extent that their mortgages are paid by borrowers, the bond holders would continue to receive their payments. Let China stop buying our bonds. So what! America will reindustrialize from a collapsed dollar. People will live more moral and hardworking decent lives. All the rottenness will be cut out of the system!

We do have a safety net now. We've got the FDIC, and so forth, so there won't be runs on the bank. Let gold & silver soar naturally, until it is ready to come down again. If gold goes to $5,000, who cares. It doesn't matter. We are NOT on the gold standard anymore, and everyone admits it.

Let the stock market and the dollar collapse for a while. Let it happen fast, so we can get it over with, already, for Christ's sake!

This constant government intervention is dragging things out. It is going to make people very tired and depressed, and it will cause a new Great Depression if they don't stop. The system will right itself in due time. If only the government will allow it to...

That's why I'll vote for John McCain, and not the guy who advocates even bigger government interventions and even more bailouts, Barack Obama.

Stagflation or Deflation?

Hey, User 8240, certainly Paulson is intentionally lying. The government is attempting to manipulate our views of the dollar, for example. The current dollar intervention is obviously the action of our government in concert with other governments, but they haven't admitted to any of it. If you look at the ticker, the dollar index jumps up and down, as the government trades in, and out, and normal investors try to sell the dollar.

Paulson & Company consistently manipulate people into losing money on stocks, gold, and everything else, so that they can gain. Then, when things don't work out for them, they steal taxpayer money.

Why? Because they are liars, and people like Paulson are the representatives of Wall Street, for whom positions in government have been purchased by the big banks. He knows his job, and it is not to serve the American people. It is to steal taxpayer money to bail out those who bought him his position as Treasury Secretary.

Hank Paulson is doing everything he can to help himself, and his friends on Wall Street. So are all the other mucky mucks who run the U.S. economy.

We must enact a law banning any person who has worked in the securities industry from holding any political or lobbying position for a minimum period of 10 years. That would solve a lot of problems, and save the country from the crony capitalism/socialism that we are seeing now.

Bernanke is a academic fool. Paulson is a crook. Most of Paulson's underlings are also crooks. Many of Bernanke's fellow FMOC board members are also crooks, particularly Gaither. There are a lot of other crooks in our government who are stealing taxpayer dollars.

So, no, I don't think they are just making the best out of a bad situation. They are choosing to employ policies and procedures that socialize the losses of their friends and themselves, while privatizing the gains. \

bail out his friends.