Soonersavvy

What CIT's Troubles Really Mean

If some small and medium sized businesses are failing due to debt cost, then they are being revealed as marginal and must be liquidated. Why did this happen? Federal Reserve credit expansion in the past distorted markets and elicited boom, i.e., subsidized entrepreneurs. Solution? Abolish the Fed and return to sound money anchored on gold. What about the government's debt? Government (politicians' cartel) is the largest and most marginal entrepreneur of all. Government needs to be largely liquidated. What can the sound entrepreneurs do in the meanwhile? Buy gold and silver or other commodities and resist further taxes and public debt so you can restart society with a free market.

The Manipulation of Gold Prices

I infer that precious metals mining stocks could "revalue" by a factor of twenty or more in nominal currency terms. Or, much more relative to non-PM stocks.

Countdown of Manipulated Gold Price Running Out

Of course, the miners could form a joint venture to build and operate a refinery, but I suspect they would be prosecuted for conspiracy to fix prices. Perhaps, the better solution is to create a market in unrefined gold and silver.

Ever hear of micro-breweries? How about micro-refineries? Sorry, those are anti-environmental. How about old-fashioned smuggling? Now you run afoul of anti-terrorism laws. The PM market is highly regulated on many levels to advantage the monetary authorities as opposed to the people. Looks like it will take a revolution to reveal the real prices of gold and silver.

Law of Supply & Demand Is Dead for Gold & Silver

No conspiracy? No fraud? What do you call fractional-reserve banking? Altruism? Mr. Kim has just about nailed it.

Unfortunately, there is no efficient open outcry market in spot precious metals, so there will large arbitrage premiums on coins and small volume bullion. Nevertheless, even the premiums are distorted downward from the free clearing prices. Just buy these bargains and take delivery. Flee into real goods, dump paper.