nononameo's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/259190/comments http://seekingalpha.com/article/110044-the-fed-still-manipulates-gold-and-the-markets?source=feed#comment-326234 326234
Therefore, the FED and central banks have simply opted to manage the price. That was possible until the math behind the fiat indicated an unpayable debt, as it does now.

I don't think that anyone knows for sure when or how high gold will go, but in order for the US to have a payable debt, and since fiat money is debt, a currency revaluation on the order of 10:1 is in order for the debt to again become payable.

Needless to say, for a 10:1 fiat revaluation in a vacuum, just add another zero to the current price of gold (as well as all other real assets).

Of course, they will probably just try to issue a new currency, which values gold at the same price in "new dollars", however your old dollars exchange at 10:1 for new dollars which has the same net effect.]]> Thu, 11 Dec 2008 09:07:17 -0500
Therefore, the FED and central banks have simply opted to manage the price. That was possible until the math behind the fiat indicated an unpayable debt, as it does now.

I don't think that anyone knows for sure when or how high gold will go, but in order for the US to have a payable debt, and since fiat money is debt, a currency revaluation on the order of 10:1 is in order for the debt to again become payable.

Needless to say, for a 10:1 fiat revaluation in a vacuum, just add another zero to the current price of gold (as well as all other real assets).

Of course, they will probably just try to issue a new currency, which values gold at the same price in "new dollars", however your old dollars exchange at 10:1 for new dollars which has the same net effect.]]> http://seekingalpha.com/article/99680-bullion-shortage-and-spot-prices-tell-two-different-gold-stories?source=feed#comment-281970 281970
If the gold shortage moves to the institutional level however, then the price suppression scheme could fail.]]> Tue, 14 Oct 2008 08:39:58 -0400
If the gold shortage moves to the institutional level however, then the price suppression scheme could fail.]]> http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-256202 256202
The FED has entered an era where brute force covert market management is required, at least at certain times.

If they had not taken these actions, they would not be in a position to reinflate, they would be hyperinflating...which I think is the ultimate outcome of all this fiat madness anyway.]]> Tue, 16 Sep 2008 15:46:41 -0400
The FED has entered an era where brute force covert market management is required, at least at certain times.

If they had not taken these actions, they would not be in a position to reinflate, they would be hyperinflating...which I think is the ultimate outcome of all this fiat madness anyway.]]> http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-256085 256085
Assuming that you have wealth to protect, gold is the oldest, most time tested portable method of wealth storage and protection for the simple reason that it has a lot of intrinsic value in a compact storage volume, and it does not degrade or have any special storage or cost of carry requirements.

In other words, assuming you are trying to protect 2 million dollars, how many pallets of baked beans do you think that equals?

People buying gold for wealth storage aren't assuming they need to eat it, they are protecting their wealth from confiscation due to inflation.]]> Tue, 16 Sep 2008 14:08:21 -0400
Assuming that you have wealth to protect, gold is the oldest, most time tested portable method of wealth storage and protection for the simple reason that it has a lot of intrinsic value in a compact storage volume, and it does not degrade or have any special storage or cost of carry requirements.

In other words, assuming you are trying to protect 2 million dollars, how many pallets of baked beans do you think that equals?

People buying gold for wealth storage aren't assuming they need to eat it, they are protecting their wealth from confiscation due to inflation.]]> http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-256054 256054
I think ultimately the Chinese and the Russians and all the other countries who have recently been burned buying US paper will wise up and decide they want gold, not dollars. If they start selling dollars for gold (the real thing) lookout above.]]> Tue, 16 Sep 2008 13:47:05 -0400
I think ultimately the Chinese and the Russians and all the other countries who have recently been burned buying US paper will wise up and decide they want gold, not dollars. If they start selling dollars for gold (the real thing) lookout above.]]> http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-256023 256023 Tue, 16 Sep 2008 13:20:00 -0400 http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-256004 256004
"Central banks stand ready to lease gold in increasing quantities should the price rise." Alan Greenspan On July 24, 1998, before the House Banking Committee]]> Tue, 16 Sep 2008 13:01:50 -0400
"Central banks stand ready to lease gold in increasing quantities should the price rise." Alan Greenspan On July 24, 1998, before the House Banking Committee]]> http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-255523 255523 Tue, 16 Sep 2008 00:06:31 -0400 http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-255502 255502
If that weren't enough, we find them sitting with 20% of the open interest in the futures markets on the short side.

I guess some people just believe "the US Federal Reserve (a private corporation) would never do something like that". Those are the ones you can fool all the time.]]> Mon, 15 Sep 2008 23:27:27 -0400
If that weren't enough, we find them sitting with 20% of the open interest in the futures markets on the short side.

I guess some people just believe "the US Federal Reserve (a private corporation) would never do something like that". Those are the ones you can fool all the time.]]> http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-255492 255492
The thing that a lot of people don't understand is that the physical dealing in gold is a small fraction of the notional value of the derivative trading. Therefore, it's almost trivial from a monetary standpoint for the FED to have a few of their banks short the futures to cap the price.

They were all saying a few months ago that the big problem was "inflation indicators" and that something needed to be done. They just took the direct approach. They shorted the market down to whatever price they chose.

What would blow their scheme out of the water? If a large player wanted physical delivery on the contract, then you can't deliver what you don't have and it would cause the mother of all short squeezes.

So when the Chinese of a few of the Saudis decide they want a lot of the real thing, if they just stood for delivery in the futures markets they would basically wipe out the western banking system because the price of gold would soar, indicating a complete loss of confidence in fiat money and the currencies would be defacto collapsing against intrinsic value.]]> Mon, 15 Sep 2008 23:07:39 -0400
The thing that a lot of people don't understand is that the physical dealing in gold is a small fraction of the notional value of the derivative trading. Therefore, it's almost trivial from a monetary standpoint for the FED to have a few of their banks short the futures to cap the price.

They were all saying a few months ago that the big problem was "inflation indicators" and that something needed to be done. They just took the direct approach. They shorted the market down to whatever price they chose.

What would blow their scheme out of the water? If a large player wanted physical delivery on the contract, then you can't deliver what you don't have and it would cause the mother of all short squeezes.

So when the Chinese of a few of the Saudis decide they want a lot of the real thing, if they just stood for delivery in the futures markets they would basically wipe out the western banking system because the price of gold would soar, indicating a complete loss of confidence in fiat money and the currencies would be defacto collapsing against intrinsic value.]]> http://seekingalpha.com/article/95496-law-of-supply-demand-is-dead-for-gold-silver?source=feed#comment-255320 255320 Mon, 15 Sep 2008 18:10:23 -0400 http://seekingalpha.com/article/94020-jon-nadler-proves-precious-metals-manipulation?source=feed#comment-250332 250332
In the futures market there is a long for every short. It's a zero sum game. Some people have erroneously written that when someone is short, they have to cover. Not so. Futures traders (I am one of them) can roll over a long or short position indefinitely and this is routine procedure to maintain a position in the market.

Futures market selling can easily overwhelm a small market like silver and the only way that selling to artificially depress prices would fail is if the longs stand for delivery and the shorts don't have it to deliver. At that point there would be a short squeeze until the number of the shorts in the market with product to deliver matched the number of longs who wanted delivery.

In the futures markets, less than one percent of contracts are delivered, which is is so easy to manipulate the market.]]> Wed, 10 Sep 2008 10:19:22 -0400
In the futures market there is a long for every short. It's a zero sum game. Some people have erroneously written that when someone is short, they have to cover. Not so. Futures traders (I am one of them) can roll over a long or short position indefinitely and this is routine procedure to maintain a position in the market.

Futures market selling can easily overwhelm a small market like silver and the only way that selling to artificially depress prices would fail is if the longs stand for delivery and the shorts don't have it to deliver. At that point there would be a short squeeze until the number of the shorts in the market with product to deliver matched the number of longs who wanted delivery.

In the futures markets, less than one percent of contracts are delivered, which is is so easy to manipulate the market.]]>