jt

Gold: The Next Reserve Currency Player

What perfect timing. I'm going to reprint a note to Midas (Bill Murphy) at LemetropoleCafe today, sent him by someone known to all who subscribe to the site as MexicoMike. Most apropos to the above discussion, and esp what I just wrote. (BTW...I meant to write "skyrocketing"):

Hi Bill!
I have been trying to understand why there is no great sense of outrage among the general public over what has been ongoing for so long. The lifestyles for all of us are subject to decline as a result \of the actions of a few. Why have so many chosen to respond like sheep to the slaughter?

I now believe it is a question of mass denial. People understand that things are not good in the overall economy. But so far it is the other guy that has been hurt. Most people still have their jobs. Most people are still paying their mortgages. Credit card balances are high for the average person, but most bills are still getting paid. Our highways are still choked with SUVs. Overall, things are still pretty good on the surface. And even while the government announces one massive bailout plan after another, and the printing presses are running around the clock to pump money into the system, people are still not seeing any of the consequences from that. Yet... People still choose to believe the lies that are the official inflation numbers. It is easy to pretend that all of that debt that has been created on the national level will not have to be repaid, will not have a direct impact on individual lifestyles. Today, as the great annual treck to the mall is underway, I wonder how many people have begun to question how much longer this sort of thing can go on for?

The mainstream media have been telling us exactly what we want to hear, and we all really want to believe them. How many times have we been told that the problems are going to be contained? How many times were we advised that the markets had found a bottom? How many senior people from individual companies have appeared on TV to tell us their companies were in great shape? No matter how many times we hear all of these lies, we want to believe them and so no one is going to be too concerned. A new president has been elected on the basis of telling people exactly what they want to hear. He sold change, and somehow implied that the good times would be preserved without any cost. People loved it and really want to believe.

Sooner or later however the fallout is going to start hitting closer to home. Eventually, every one of us is going to be negatively affected by all that is going on, whether we are told the truth or not. No matter how much we all want to believe the lies, the consequences are the elephant in the room that cannot be ignored forever. And then, I think all that outrage is going to be expressed.

As long as it is only the minority that is facing the loss of their jobs, their homes, bankruptcy, etc. then its easier for the rest of us to pretend that things will be okay. When things have degraded to the point where the majority of us are tightening belts and facing serious financial problems; when inflation is forcing the average person to make difficult choices on what they can afford; when unemployment is running at double-digits; when the compounded interest of an ocean of debt has pushed people to the point where they can no longer make payments on their bills; when it finally dawns on the average person that all of that bailout money injected into the system did not make the big problems go away... THEN, we will see a collective sense of outrage that has been sadly lacking all the way through this mess. Unfortunately, I suspect it will be too late.

So here we are today. I cannot count the number of times that the gold spot market tried to rally above $815 and was severely pushed back down over the last 2 days. When a serious terrorist event occurs in the largest gold-friendly country in the world, one would expect that gold prices would surge. And that is exactly why gold has been so obviously and firmly capped. And since so few of us are willing to rise up and denounce the market rigging right now, and no one wants to see what is happening in real time in full view, and we all want so badly to believe the lies that they are telling us on TV, then nothing is going to change.

Now people like Dennis Gartman want to chuckle and suggest that goldbugs want to see bad things happen. What he fails to understand is that things are going to happen whether we want them to or not. We can choose to run with the herd and pretend that everything will be just fine. Or we can assess the situation and take appropriate steps now while there is still an opportunity to buy a degree of protection. The outrage is coming. Drawing a line in the sand and capping gold may keep the sheep in denial for a while longer but it will not halt the fallout from a decade of economic and financial stupidity on an unprecedented scale.

It is refreshing to see that Peter Schiff is now getting some measure of respect for having called the market correctly. Remember how they laughed at him early on when he tried to warn people what was coming? Now there is a video on YouTube where his comments have been highlighted along with the rebuttal from the bozos on CNBC and they are not laughing now. The denial phase is coming to an end soon Bill, and I hope then you may also get a measure of respect for your work to expose the gold manipulation scam. Gartman and Co. will eventually find that the smug arrogance they directed towards the goldbugs was misplaced. For now, its just groundhog day again.
cheers!

MexicoMike

Gold: The Next Reserve Currency Player

I think you're mistaken about Mr Lathrops...and it came with the 8th word in your comment. There are many out there, and the US contains way more than its proportional share, of ignorantly arrogant and arrogantly ignorant sheeple people like him who don't see the need to think or know anything except what they're fed by the MSM. What a waste of time...to think and become informed...when there is so much beer to drink and good times to be had.

Most truly seem to believe the lie that "it can never happen here"...this is the YOOOnited States of America, after all!! And oh, BTW, there never was a Great Depression either...nor hyperinflation in Venezuela or Germany within the last century. Those were just myths to these people, conspiracy theories thot up and stuck into textbooks by the "nuts" to scare people...or if they were real, it's only b/c they were stoopid furreners and not us smart Amuricans. I say give him another beer...let ignorance be bliss as long as possible for him and them...b/c as much as they are ignorant blowhards before the fact, they are even bigger whiners and complainers after...so keep them happy blowhards for as long as possible.

And I can only agree about the ETFs being useful in terms of VERY short term investment vehicles...almost akin to futures trading. Who knows how fast the dollar will drop over the cliff when it does, or how fast the global devaluation or revaluation of the dollar could happen, or when force majeure could be declared on the COMEX. If those things happen fairly closely together, there's a chance those in the ETFs would get back only paper money that is very rapidly devaluing at the same time the prices of silver and gold are skyingrocketing. Best have a good hoard of real money first...physical silver and gold...before putting needed funds, for now or the future, into the ETFs...or really paper equities of ANY kind. jt


On Nov 30 12:59 PM Georealist wrote:

> Interesting comments..especially Mr. Lathrops..apparently he thinks
> we should stupidly stare at trillions in potential liquidity andmay..well..go
> play golf. The Gulf States taking steps to protect themselves sounds
> very reasonable to me...their geographic location is enviable and
> they have the monetary heft to carefully pull it off.
> Nothing wrong with the ETF metals funds...a physical position is
> always the best foundation but sometimes not the easiest to trade.
> If any of this gets further than speculation..and it has a very good
> chance of doing so...silver could e the biggest winner yet.

Gold Miners: Amazingly Cheap

Then please please PUHLEEEEEZE, CLH...short and put the crap out of it!!! You're one of the posters here I'd just LOVE to do well. I'm hoping you short it all the way down to $400...and then do it some more. Oh, and buy LOTS and LOTS of treasuries, too, ok? Few here deserve the kind of success I believe you'll have like you do.

Is This the Death of Gold & Silver Stocks?

Wow...I see *Paul loves S&M* is all the way up to 50 words now!!!! Way to go paulie...usually you only make it to 25 before your mom calls you for lunch or supper. Keep working at it...one day you might actually be able to read an entire article to actually know what it says, or maybe write coherently or carry on a conversation with a real human (I've been told there are actually humans who would put themselves thru the torture of actually trying to converse with you!!!...can you believe it??...nah, me neither...)

Why Should I Own Gold?

Just want to give kudos to Jacob for at least asking the question.

A "gold standard" is just completely foreign to most American citizens under the age of 75-80 b/c they've never really lived under one. And secondly the brainwashing done by the Mainstream Media...the Dept of Truth as Orwell liked to call it...supported and controlled by the powers that be who own it -- the bankers (just as Nathaniel Mayer [Bauer] Rothschild stated some years back: "I care not who sits on the throne of England...he who controls the money supply controls the throne, and i control the money supply") has taken its toll.

Anyone thinking clearly would have to agree that an ounce of gold has intrinsic value, and certainly more intrinsic value than a piece of paper with $1000 printed on it known as a Fedl Reserve Note...what exactly do you think they hold in reserve for the holders of that note???...not one d*mn thing!!...there's absolute nothing of value behind it...just a rather large and power computer. But since the price of gold and silver have been suppressed for so long, and since price action makes market commentary, most have swallowed hook, line, and sinker that they have no particular value as an "investment." But those posting here above have already shown the folly of investing in the "dollar." It has lost over 95% of its value since 1913 in terms of purchasing power...and it ain't even begun to reach its bottom. Even if you're getting 10% interest or gains on your dollar-based investments, by calculations using the CPI formula used before Clinton, inflation is now over 13%, so you're STILL losing value. And that doesn't even start to take into consideration now greater than $Quadrillion in derivative debt (fast becoming real debt) that is attached to the dollar like an other-worldy anchor, draggin it into the abyss. Think of buying gold and silver as a way to trade in worthless and growing ever more worthless pieces of paper for something of real intrinsic value...worldwide.

IMO and I'm sure in the opinion of many posting here, gold and silver will without a doubt also turn out to be a good "investment"...but in the meantime, it's a store of value / wealth at the worst. jt

The Disconnect Between Supply and Demand in Gold & Silver Markets

James...one other thing. I, too, along with Kelly do not understand why you have positions in SLV and GLD...??!!! From all the evidence, these paper promise vehicles are even as we speak are being shorted and being used to lease more gold and silver out the backdoors to their supposed controllers, all of whom are a part of the anti-gold cartel. Seems a contradiction to me for someone with such a very good understanding of what's going on. Perhaps it just for trading purposes, but it's also aiding and abetting the enemy.... jt

The Disconnect Between Supply and Demand in Gold & Silver Markets

Thanks, DavyJ, and I'm sorry for doing this, but you make such a good example of just how idiotically stupid and gullible most Americans have become, that I just can't resist. You don't seem to realize that your statement is a complete and total non-sequitur contradiction:

You say--"The precious metals dealers have so much inventory at costs far above the current prices that their spreads have vanished."

Duh!!!!!...how do YOU know they have "so much inventory" Davyboy??...please give us your sources. And if they actually did, why would it be at such high prices, unless that's where they bought it? And why would they have bought it at those high prices unless someone was buying it from them there??? And if they are actually waiting to sell their present supposedly HUGE inventory, that means they must be waiting for HIGHER PRICES, right Davy?? But why would price go any higher if the present price is a just and reasonable price??

Sheeeesh, Davyboy, didn't your mom or dad or someone ever tell you it's better to keep your mouth shut and let people just assume your ignorant, than open your mouth and prove them right?? jt

The Disconnect Between Supply and Demand in Gold & Silver Markets

What can I say??...wow!!!...one of the best thot out and laid out explanations I've read ever on the absolutely criminal manipulation of the gold and silver markets by the mafioso anti-gold cartel (anti-gold b/c they have sole control of the fiat currency fraud machine...and gold and silver expose the fraud and so must be kept suppressed) .

Thanks, James...you need to continue to put this out in different venues and expose this for the world to see. GATA has done what it can...but it needs others to also get the message out. As for the rest--BUY PHYSICAL...NOW!!!!...a... esp silver... jt

Thoughts About the Current Bear Market Among Junior Miners

GMiki...I certainly wonder who the shorters are. I've believed that the anti-gold cartel is primarily involved (the Fed and other Western Central bankers and their bullion bank lackies, such as GoldmanSuchs--who also seems to perennially own the Secy of Treas position...talk about insider info!!, and JPMorgain4Elites, and the hedgies they control). They've had patterns that they've created to get the other commercials to come in alongside them in their manipulation / "management" of the gold and silver markets (COMEX esp). One such signal is a takedown of the PM equities on a day that the metals are moving up and they can't take them down...that's been a signal that the next day WILL be a forced takedown (the investment banks involved simply pull all the bids and let the price plummet) day for gold and silver...like the takedown we had this AM @10:45. I truly believe they are involved to try to keep interest away from the PM equities and in the stock market at large and in treasuries.

But I'm also wondering what part the gold and silver bigboys (or even China for that matter) might have in it. They need to replace assets in the ground and they haven't been finding much...and with the ratio as you've just described being a mere 1:10 for Jr compared with the Sr gold/silver in ground...the cheapest way would certainly be to buy up the juniors with significant inground resources.

And for those who just automically blow off any and every "conspiracy" you hear, understand that I'm not saying that ALL moves in the market are manipulated. But...those who manipulate understand the markets...they understand TA and where the stop losses are placed for example...after all, they have ultimate and intimate insider info on ALL stocks/markets (the SEC and the CFTC are also members of the PPT--PlungeProtectionT... / President's Working Group On Financial Markets). All they have to do is tip a price below certain TA or wave numbers and they know the black boxes will do the rest...and they have.

But manipulation will finally be overcome, as it always has been, by physical supply and demand...and the demand is going to be investment demand. Make sure you have some real money...gold/silver coins/bullion. I'd strongly advise AGAINST the SLV and other PM ETFs. Ted Butler has shown that the SLV is being shorted bigtime...probably b/c the shorts can't come up with the physical on COMEX. That should be and probably is outright illegal, as the prospectus states that the fund will hold 10 oz silver / share, and the shorts certainly aren't holding 100M oz silver (at least 10M shares short, if not more). Buy physical. Start nibbling on Jr producers and the BEST of the explorers. But have physical...what you want to have when this whole mess explodes. It'll never be cheaper...esp silver. jt

Gold Prices Can Fall, Regardless of Fundamentals

Hmmmm...let's see if I get this wisdom. So then...innocent people can go to jail...bad things happen to good people...criminals can get elected or otherwise hold positions of high authority...our laws don't necessarily follow or obey the Constitution...laws aren't necessarily made by our legislature...the will of people isn't necessarily done...our markets are not necessarily free and open...the information put out by the mainstream media isn't necessarily true...the govt doesn't necessarily give a crap about its people...

So...to summarize: shit happens?...am I getting this right? jt

Gold’s 'Grand' Illusion

I guess anyone is allowed to write pieces for the public now, eh? Ignorance is bliss...better!!...it'... "wisdom"...!!!!! Well, I'd try to debate, but knowing this mindset and the arrogance behind it, well, I know it's a waste of time. Only history will change these people's minds, ie, having to live thru it. So PLEEEEZE...sell whatever gold and silver you have to your local coin store (if you have any of that "worthless" stuff) and buy buy buy your canned goods. We'll see what all you can barter it for if "it gets that bad" (to paraphrase).

On the other hand, to be a little gentler...most Americans are totally brainwashed, and those under 55-60 never really lived under a gold standard long enough to actually know the difference. They just need a large bucket of cold water and a hard slap in the face (to wake them out of their fiat-induced stupor...after all, most Americans now simply yawn at the thot of a $Trillion dollars being spent or lost or bet on derivatives) tied up in a chair that will play for them the history of the world, and more specifically of the fiat frauds of "modern" day history, and I'd include the Roman Empire there... in little snippets. In this instance, it's often not a case of "how soon they forget"...it's a case of they've not really been told the truth. They need to watch and learn from history...all fiat frauds have ended badly...or they will ALL have to live thru the same ole same ole. People don't change...just technologies. As Solomon said, "And I saw that there was nothing new under the sun"...history most assuredly repeats itself. jt

Is it Finally Time to Sell Gold and Related Mining Stocks?

dowdy...I wouldn't buy a thing from Kitco...there prices are not very competitive and their charges for shipping, esp of silver, are outrageous. Kitco is a decent site for information, but IMO not for buying silver/gold coins/bullion. On top of that, John Nadler, who works for Kitco and is considered their "analyst" is a "goldbear" in sheep's ("goldbug") clothing. He must have some connection with the anti-gold Cartel, b/c he finds every opportunity he can to trash gold and goldbugs while pretending to be pro-gold. And he mocks GATA, despite the fact that they/Bill Murphy have been absolutely on the money for 10 years now concerning the suppression of the prices of gold and silver by the Fed and the Western Banker aided by their bullion bank lackies such as JPMorgain4Elites and GoldmanSuchs....

If you haven't bought yet, I'd first make sure you have at least some store of actual physical silver and/or gold. The easiest and cheapest to buy in terms of minimal to no premium over spot price is "junk" silver, ie, bags of pre-'65 silver coins (dimes/quarters/half dollars). They are sold by $10/$100/$1000 face value, eg, 1000 pre-'65 dimes would be $100 face value. Every $100 face value of those coins contains 71.5 oz silver. So you multiply 71.5 time the spot price of silver and that will give you value of the silver in the coins with no premium. I have bought a number of $10 and $100 face value bags from bulliondirect.com, using esp their NucleoExchange to put in bids, esp when price is getting taken down. In that way I have not infrequently been able to buy them actually at a DIScount to spot price of silver. You can also check with your local coin store. I would also recommend buying 99.99% pure silver 1 oz rounds...no numismatic value and the smallest premium to spot price.

If you want gold, you can go buy 1/10/100 oz bars...or 1 oz bullion coins, such as Canadian Maples, or Kruggerrands, etc. To get an idea of prices, check some place like bulliondirect.com and look at NucleoExchange to see what the bids and asks are.

I would do this before even considering buying mining stocks. Then I would recommend buying a subscription to the newsletter of someone like Jay Taylor or Doug Casey to get some good recommendations on good junior explorers, etc.

Is it Finally Time to Sell Gold and Related Mining Stocks?

GaryD...the rates have not only collapsed buy gone NEGATIVE!!!...ie, the Fed and the rest of the anti-gold cartel are PAYING the bullion banks to lease gold. Why??...there is always and forever only ONE reason to do that...and that is to SUPPRESS the price of gold, as they've been doing for years. That leased gold is only used for one thing--to sell into the market, take the proceeds and invest them in interest-bearing bonds/funds--easy money for the Fed lackies that play their game. It's criminal collusion. But then the Fed likes its infinite money-making machine: create "dollars"/Fedl Reserve Notes out of absolutely nothing, loan it to the treasury (and now just about anyone else they want to, it would appear), and then get paid interest on it!!!!...nice scam yes?

Buy and hold gold and silver physical. Do NOT buy shares in the ETFs...they have busy backdoors for dumping their gold and silver back on the market in these takedowns and almost ALL are under the control of members of the anti-gold cartel.


But we will be heading back up...no doubt about it. There are literally hundreds of TRILLIONS of derivative $debt out there. Gold in real value has just barely begun to rise. And silver is even worse b/c it is consumed in industry and we have been in deficit for nearly two decades now. There is now a paper price (manipulated price) and physical price disconnect. Delivery default can't be far behind.

jt

Gold's Golden Rule

Dawson...that's an interesting theory. Or is it more than that? Where did you hear that? That would be fascinating to find out is true. And it would make some sense. I'd certainly rather see them buy it in the open market, to perhaps end the manipulation sooner, but on the other hand, perhaps it would be better to have the collapse happen a little slower so that those of us who have watched this develop for years have a little more time to prepare and to try to get others to get ready. jt

Gold's Golden Rule

ITMW...good little snippet. You're right on the money in terms of the fact that someone will snatch up whatever the IMF would sell, would the US Congress at last enter into its final stages of Altzheimermentia, be it the Chinese, or the Russian CB, or some Abu Dhabi trillionaire.

But what I will recommend you revisit is your hesitancy to call this what it is and has been each time it's been brot up: manipulation of the price. Go back and look...each time they have pulled this stunt over the past 6-7 years has been when gold has threatened to take off and overwhelm the manipulation.

And here we are again. The nice thing is that now more and more BigMoney has wisened up to what the Western CBs, and esp the Fed, along with their bullion/investment bank lackies, such as GoldmanSucks and JPMorgain4Elites, have been doing. Now each takedown is being met with more buying. And now they know what it means when they trot out the tired old IMF sales story to try to take the price back down, (ala "The Shining") "It's Feddy!!! It means get the shotgun ready so that when the Cartel ax pounds a hole thru gold's price supports, Big Money is standing there with a load of bucks-shot ready to blow Feddy and its friends right back outta there. jt