HonestMoney

Why I'm Bullish on Gold, But Still Waiting

The question is can buyers take out the manipulative shorts in COMEX. Gold should stayed above $1000 a long time ago.

Gold, Silver During Deflation: Sell the Metals Short

Gold shares did well during the Great Depression and does well during times of financial panic. But first, we have to defeat the Gold Cartel at COMEX by asking for physical delivery to unnerve them.

www.gold-prices.biz/wh.../

www.gata.org/node/7402

Why Gold Prices Didn't Really Rise Last Week

Buy coins, bars, CEF, GTU, goldmoney.com and bullionvault.com

Get out of GLD/SLV

Gold Manipulation Evidence Mounts:
news.goldseek.com/Leme...

Perth Mint Certificate Exposed
news.silverseek.com/Go...

Risks in Owning GLD
www.marketskeptics.com...

Can We Trust the Silver ETF?
news.silverseek.com/Si...

Where Is the ETF's Gold?
www.safehaven.com/arti...

Ten Reasons to Avoid the Gold ETF
seekingalpha.com/artic...

How the Silver ETF Differs from Real Silver
seekingalpha.com/artic...

The Problem with GLD and SLV ETFs
seekingalpha.com/artic...

Smart Ways to Add Gold and Silver to Your Portfolio

Before you spend your hard-earned money on gold/silver certificates and ETFs like GLD and SLV, please read these articles and consider that the criminal bankers might actually be using YOUR money to suppress the price of precious metals by leasing metal to COMEX. I believe gold and silver would have been much higher today if all buyers actually bought the physical stuff.

Consider buying coins, bars, CEF, GTU, goldmoney.com and bullionvault.com

Gold Manipulation Evidence Mounts:
news.goldseek.com/Leme...

Perth Mint Certificate Exposed
news.silverseek.com/Go...

Risks in Owning GLD
www.marketskeptics.com...

Can We Trust the Silver ETF?
news.silverseek.com/Si...

Where Is the ETF's Gold?
www.safehaven.com/arti...

Ten Reasons to Avoid the Gold ETF
seekingalpha.com/artic...

Should Gold Be in Your Investment Portfolio?

Buy CEF, GTU, physical bullion, coins, bars, goldmoney.com, bullionvault.com. GLD and SLV are paper promises.

GLD Soars on Fed Announcement; Headed for All-Time Highs

GLD is leasing gold to London and COMEX to suppress gold. Stop playing their game. Gold would have been over $1000 by now if everyone bought real physical bullion.

Short Squeeze in Silver - How to Profit

i say screw the manipulators. get physical only or CEF in canada. NO slv or gld. goldmoney.com and bullionvault.com look good too.

if you got deep pockets, take delivery from comex according to jsmineset.com

To HE** with the unscrupulous shorts in COMEX.

Hedge Inflation with the Silver ETF

SLV is a scam. Stop playing the paper game and get some physical silver.

seekingalpha.com/artic...

Time to Be Bullish on Gold and Precious Metals

Physical bullion yes. Goldmoney.com and Bullionvault.com yes. SLV NO! I believe the ETF is a scam where they lease silver to CRIMEX.

seekingalpha.com/artic...

www.runtogold.com/2008.../

penningtoncoins.com/20.../

Silver Backwardation: Prices About to Soar

Stop playing into the hands of the Gold Cartel. No ETFs/gold certificates/pool accounts for me. Only physical bullion. goldmoney.com and bullionvault.com are also good.
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As long as the hard money community continues to invest in paper gold and silver such as ETF shares, mint certificates and futures contracts, the rise of gold and silver will be greatly subdued until one of the triggering events listed above occurs. Physical off-take is the key to unlocking big profits in gold and silver. These paper investments are not producing as much physical off-take as people think because the sponsors of these assets are lying about their physical bullion inventories, or have leased them out or otherwise encumbered them, sometimes backing the gold and silver they have leased out with other paper gold and silver assets that may also have false backing.

The fact that the sponsors of the major gold and silver ETF's, GLD and SLV, are two of the most notorious Illuminist-controlled banks, HSBC and Barclays, should tell you everything you need to know about the ETF's and what they are really all about, namely, the preservation of CRIMEX precious metal inventories and the diversion of investment money from resource stocks to destroy their market values so the Illuminati and firms like Barrack Gold can scarf them up at pennies on the dollar, thus controlling not only existing gold and silver bullion above ground, but also gold and silver ores below ground.

The ETF's sponsors could be leasing precious metals directly to the CRIMEX for purposes of making deliveries for all we know. Investment in ETF's may turn out to be a Ponzi scheme, and we believe they are using your own capital against you by using that capital to purchase gold and silver which is then used for suppressive purposes of the Illuminati, like a bullion or central bank would do. Talk about shooting yourself in the foot! The worldwide orchestrated mint cutbacks in production and delays of delivery are also meant to help prevent wholesale gold and silver inventories of the CRIMEX from being bought out to produce coins, rounds and bars. ETF shares are also being naked-shorted to keep values in line with bogus CRIMEX values for precious metals. The bottom line is, you need to pay for and take delivery of your gold and silver, and store it in your safe at home. Period. GET A CLUE, PEOPLE!!!

news.goldseek.com/Inte...

Riding the Gold and Silver Uptrend with ETFs

Are GLD and SLV a Ponzi scheme??

jsmineset.com/index.ph.../

Dear CIGAs,

Don’t you think it is about time GLD and all the other popular international gold ETFs told its owners exactly what kind of gold they claim to own?

Can you imagine a situation where a person buys a gold ETF to own “non-gold” but finds out that they in reality own OTC derivatives on gold? That would be an investment in the same type of financial instrument (not gold) that one owns gold bullion to protect against.

The failure to unearth the Madoff scandal becomes incredible when one understands that the returns from the market claimed on the size of the hedge fund were logically impossible.

The exact same reasoning screams bloody murder when applied to the many Gold EFTs in terms of what it is they really own.

This begs one major question: From where did all the gold claimed to be owned by all the gold ETFs come from?

Where did funds such as GLD get their additional 45 tons in the last month?

We certainly can forget about that gold coming from the Comex. 12 deliveries would stand out like a sore thumb.

This concept and record keeping eliminates all exchanges around the globe as the source of bullion delivery in any size to all Gold ETFs.

The physical market is so tight that coin minting has all but closed down compared to what it was one year ago. It is hard to accept that the Gold EFTs can buy what the mints can’t.

A read of the original prospectus removes any thought that the gold is leased, but leaves one to invite probability.

That probability is that the claimed gold can only be OTC derivative long positions. If that is so then the financial reliability of the paper stands on the foundation of the balance sheet of the granting counter party to the OTC derivative. This is true regardless of whether it is a mine or naked speculator.

Don’t you think it is about time the gold ETFs told their owners exactly what kind of gold it is that they claim to own?

Can you imagine a situation where a person buys a gold ETF to own “non-gold” but finds out that they in reality own OTC derivatives on gold? That would be an investment in the same type of financial instrument (not gold) that one owns gold bullion to protect against.

I think you own an ETF of derivatives, not of gold!

If I am correct then there is no clearinghouse guarantee for the OTC derivative to function.

Like so many other surprises of the last two years the Gold ETF shareholder may actually have no gold at all.

A perfect Ponzi scheme would allow you to surrender shares for bullion. You need only think about it.
----------------------...
jsmineset.com/index.ph.../

Dear CIGAs,

We all are pressed for time here because of the press of both corporate responsibilities and our desire to help you all through trying times safely.

As we begin to see the many ETFs for gold from all over the globe, our curiosity peaks. It simply looks impossible that all these enterprises are anything but paper tigers operating primarily in OTC derivatives, even if in some cases this is contra to their stated purposes.

It would be extremely helpful if any of you dealing with or familiar with the far flung world of ETFs would send us the latest reported levels of gold holdings, sourced with the name and exchange upon which the fund is trading. Alternatively, if you have proof ETFs are trading only paper, that information would be useful as well. All help would be deeply appreciated. Please provide sources!

Please email replies to Editor Dan at [e-mail].

Thank you all for your help,
Jim

SPDR Gold Trust Reaches 1,000 Tonnes

Are GLD and SLV a Ponzi scheme??

jsmineset.com/index.ph.../

Dear CIGAs,

Don’t you think it is about time GLD and all the other popular international gold ETFs told its owners exactly what kind of gold they claim to own?

Can you imagine a situation where a person buys a gold ETF to own “non-gold” but finds out that they in reality own OTC derivatives on gold? That would be an investment in the same type of financial instrument (not gold) that one owns gold bullion to protect against.

The failure to unearth the Madoff scandal becomes incredible when one understands that the returns from the market claimed on the size of the hedge fund were logically impossible.

The exact same reasoning screams bloody murder when applied to the many Gold EFTs in terms of what it is they really own.

This begs one major question: From where did all the gold claimed to be owned by all the gold ETFs come from?

Where did funds such as GLD get their additional 45 tons in the last month?

We certainly can forget about that gold coming from the Comex. 12 deliveries would stand out like a sore thumb.

This concept and record keeping eliminates all exchanges around the globe as the source of bullion delivery in any size to all Gold ETFs.

The physical market is so tight that coin minting has all but closed down compared to what it was one year ago. It is hard to accept that the Gold EFTs can buy what the mints can’t.

A read of the original prospectus removes any thought that the gold is leased, but leaves one to invite probability.

That probability is that the claimed gold can only be OTC derivative long positions. If that is so then the financial reliability of the paper stands on the foundation of the balance sheet of the granting counter party to the OTC derivative. This is true regardless of whether it is a mine or naked speculator.

Don’t you think it is about time the gold ETFs told their owners exactly what kind of gold it is that they claim to own?

Can you imagine a situation where a person buys a gold ETF to own “non-gold” but finds out that they in reality own OTC derivatives on gold? That would be an investment in the same type of financial instrument (not gold) that one owns gold bullion to protect against.

I think you own an ETF of derivatives, not of gold!

If I am correct then there is no clearinghouse guarantee for the OTC derivative to function.

Like so many other surprises of the last two years the Gold ETF shareholder may actually have no gold at all.

A perfect Ponzi scheme would allow you to surrender shares for bullion. You need only think about it.
----------------------...
jsmineset.com/index.ph.../

Dear CIGAs,

We all are pressed for time here because of the press of both corporate responsibilities and our desire to help you all through trying times safely.

As we begin to see the many ETFs for gold from all over the globe, our curiosity peaks. It simply looks impossible that all these enterprises are anything but paper tigers operating primarily in OTC derivatives, even if in some cases this is contra to their stated purposes.

It would be extremely helpful if any of you dealing with or familiar with the far flung world of ETFs would send us the latest reported levels of gold holdings, sourced with the name and exchange upon which the fund is trading. Alternatively, if you have proof ETFs are trading only paper, that information would be useful as well. All help would be deeply appreciated. Please provide sources!

Please email replies to Editor Dan at [e-mail].

Thank you all for your help,
Jim

Evidence That Big Inflation Is Coming

From Mish, globaleconomicanalysis...


Adam Hamilton at Zeal is predicting Big Inflation Coming.

The growing legions of deflationists see an unstoppable depression-like deflationary spiral approaching like a freight train. They cite some convincing data. The stock markets have been cut in half in just a year. In the past 6 months, some key commodities prices fell farther and faster than they did in the entire Great Depression. House prices are down by double digits across the nation, with no bottom in sight. And credit is a lot harder to come by today than in any other time in modern memory.

My Comment: Well yes, that is convincing data. Indeed a perfect 15 out of 15 conditions experienced in the great depression are happening today as discussed in Humpty Dumpty On Inflation.

Of course Humpty Dumpty can and does pretend that deflation is specifically about money supply, totally ignoring credit. And those same Humpty Dumpties were amazed by the collapse in commodities and were crushed shorting treasuries because they did not see this coming.

In light of these universal falling prices, how could we not be entering a sustained deflationary period? The case may seem airtight, but I’d like to offer a contrarian view in this essay. Believe it or not, despite 2008’s price collapse there is plenty of overlooked evidence suggesting big inflation is coming. You won’t hear much about this on CNBC, but it could have a big impact on your investments in the years ahead.

My Comment: I am not sure what Hamilton means by "sustained". We have been in deflation for about a year, and maybe it lasts another, or five. Then again, perhaps we drift in and out of a slow growth recessionary period much like Japan for a decade. We have to take this one step at a time.

Inflation and deflation are purely monetary phenomena. Inflation is not just a rise in prices, lots of things can drive prices higher. Inflation is the very specific case of a rise in general price levels driven by an increasing money supply.

My Comment: That last sentence puts the cart in front of the horse. Inflation is not rising prices; rising prices are a result of inflation (an increase in money supply and credit).

Acknowledging that debt-financed house prices are a special case that may indeed be deflationary (contraction of credit), I am focusing on stocks and commodities in this essay. From October 2007 to November 2008, the flagship S&P 500 stock index plunged 51.9%. About 4/7ths of these losses snowballed in just 9 weeks during the stock panic. From July 2008 to December 2008, the flagship Continuous Commodity Index plummeted 46.7%. Almost half of this mushroomed during the stock panic.

Deflationists argue these price drops are proof of deflation, and most people today believe this. But they are only deflationary if they were driven by a contraction in the money supply. Stocks and commodities are generally cash markets. Credit such as stock margin can be used, but it is trivial relative to the market sizes. And real commodities purchased for industrial uses are paid for in cash or near-cash (short-term trade loans), not multi-decade loans like houses. So the money supply during 2008’s slides is the key.

My comment: What deflationist has argued that commodity price declines are proof of deflation? Can I have a name? Most mainstream media is concentrating on prices.

More to the point, no single indicator alone can constitute proof. However, 15 out of 15 symptoms one might expect to see in deflation should be ample proof for anyone.

If available money to spend indeed contracted, then the deflationists are right about seeing deflation in 2008. But if the money supply fell by less than stocks and commodities plunged, was flat, or even grew, then deflationists are wrong. When prices fall simply because demand declines (too much fear to buy anything immediately), this is merely supply and demand. If money didn’t drive it, then it isn’t deflation.

There is the humpty dumpty argument again. And again I reply that it is foolish to ignore credit (debt). Debt is actually more important than money simply because it dwarfs base money. And much of that debt cannot be paid back and that is why banks are failing.

Come to think of it, I need to add bank failures to my list. That makes a perfect 16 out of 16 things.

The key point in this rebuttal is that money supply does not have to shrink to cause deflation unless you insist on a humpty dumptyish definition that has no real world practical application.

Here is a practical application: There is no money to pay back loans. What cannot be paid back will be defaulted on and the default avalanche has been triggered. Once an avalanche starts, it is impossible to stop.

That avalanche of defaults amounts to deflation if it exceeds the expansion of money supply.

Banks are attempting to hide the avalanche by not marking their books to market. Citigroup alone is sitting on over $800 billion in SIVs of dubious value. However pretending credit will be paid back does not make it so, just as ignoring an avalanche does not stop it.

Hamilton goes on and on with straw man arguments about what deflationists believe. In practice I do not know a single deflationist who believes the strawman Hamilton is rebutting.

Hamilton also talks about various money supply charts as if they are proof of inflation. Here is my rebuttal.

Base Money % Change From A Year Ago



Hamilton's definition shows there was massive inflation during the great depression, starting in 1931!

Of course that is ridiculous. But it is what one must conclude if one defines inflation as an expansion of money supply alone.

That chart shows why it is foolish to look at one indicator as proof of inflation. A more practical approach and a more practical definition, gives more practical results.

Soaring base money supply is not proof "Big Inflation Is Coming" soon, just as it was not proof that "Big Inflation" was coming in 1931. There cannot possibly be any other logical conclusion when confronted with the data.

Mike "Mish" Shedlock
globaleconomicanalysis...
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Evidence That Big Inflation Is Coming

Mish criticized this article here:

globaleconomicanalysis...