bowman711

Precious and Base Metal ETFs Draw Attention During Turmoil

At some point, when the some $3.5-trillion of 'new' money thoroughly works it way into the economies of the world, people will realize that those 'dollars' they rushed into for safety are only worth some cents. At that point there should be a rush into the only entities that have held value for thousands of years - gold, and to a lesser extent, silver. The only wildcard is if governments evil enough to destroy the world economy in an effort to concentrate power will be evil enough to confiscate the world's gold without paying what it is worth. If that happens, one might as well be holding acorns or pretty sea shells as either dollars (or Euros, pounds, yaun, yen, etc) or precious metals.

Gold Bulls: Beware

As long as the Government-backed bullion banks can print up 'fiat gold contracts' to sell on the COMEX OR NYMEX gold will continue to decline in value. The only way that gold spot price could even remain level, much less decline, is if the Government is printing up as many 'fiat' gold contracts as they are printing up 'fiat' dollars. Economically, it impossible for eggs to go from 66-cents/dozen to $1.80/dozen, and the same inflation for practically everything for sale in the supermarket, without gold contracts inflating to the somewhat the same degree. That is, unless the Government is flooding the gold market with paper gold as worthless as the dollars they are printing.

Gold Bulls: Beware

Yesturday (Wed.) there was a gap UP by $6-7 in the COMEX spot gold price right at noon, then it was beaten down by the bullion banks. Anybody have any ideas why it gapped UP?

Bring On the Last Act

The Government has to borrow the money for all these bailouts. First, they swap the financial institutions worthless and near worthless contracts for dollars. Then the Government 'packages it all up' and sells them as Treasuries to China and other countries, or to you. So, when you are putting your cash into Treasuries, you are essentially buying the junk that the financials just gave up on collecting! The only difference is that the Treasuries have 'the full faith & credit' of the government behind them. But, the Government doesn't create anything (except trouble!), so it is impossible for the Treasuries to become stronger due to the increased production of something (anything) creating wealth.

If it were an honest choice between Treasuries and gold (or silver, to a lesser extent), gold would win hand down. The Government knows, of course, that rational people would choose gold over their 'fiat Treasuries' backed by their increasingly worthless fiat dollars. So, they have been systematically driving the apparent value of gold down with massive naked shorting of gold. In short, they do what they know best - 'print' paper gold and flood the gold market with it to give the impression that the value of gold is also going down! To a great extent, it does fool many if not most of the people.

But, you can't buy gold anywhere right now, or you are very lucky if you do manage to find a coin or two to buy. I'd guess gold dealers, with the limited supply they can lay their hands on, give preference to their regular customers. But, where is the gold that normally would be moving in the gold market? I can think of a couple of possibilities. First, with the price so artificially low, gold producers are either 'mothballing' mines or not selling what they produce in the hopes of getting much more when gold finally breaks free of the Government manipulators. Second, it could be that the Government's 'Insiders' - which likely would include China and other buyers of Treasuries - are siphoning off what gold become available at the artificially reduced prices.

We don't know how long the Government can keep its 'hands' on gold, but we do know that at some point people will discover that their Treasuries are worth about as much (maybe I should say, as little) as the Government's paper money. When that happens, there likely would be revolution against the Government as gold skyrockets back to where it should have been all along. I think the main reason Lehman wasn't also bailed out like Bear Stearns and Freddie/Fannie is that foreign buyers of Treasuries are balking at buying more Treasuries backed, not really by the 'full faith & credit' of the government, but by junk paper.

We are living in very interesting times. I probably wouldn't be a bad idea to stock up enough staple foods to last months if not a year. Who knows what will happen if/when the people realize the Government has duped them all this time.

Metals Manipulation - Or Simply Deleveraging?

Re: 'when we would see a low on gold. I told him on the air it would be the next day.' (August 16)

Sept 11 - Gold hit $730 this morning - down some $70 from Sept 9 - Any comments on that?

Precious Metals Manipulation: Lawyers Prepare for Battle

JasonC, So you blame the Enron stockholders for their losses?

Precious Metals Manipulation: Lawyers Prepare for Battle

Also, EVERYONE, please forward this article to your Senators and Congressmen and DEMAND action against these 'Insiders.'

You might also include: www.resourceinvestor.c...

www.investmentrarities...

Precious Metals Manipulation: Lawyers Prepare for Battle

WHERE DOES ONE GO TO JOIN THE LAWSUIT?

Precious Metals: Emotions Still Stronger Than Fundamentals

Does CLH stand for 'Curmudgeon & Lunatic Here'?

The Disconnect Between Supply and Demand in Gold & Silver Markets

For those wondering how much of GLS and SLV is bullion or 'paper gold,' I do know that the Central Fund of Canada (CEF), which is about 50/50% gold and silver, does have the bullion for each share/unit.