The Golden Truth: Shanhai Gold Exchange Cuts Silver Margins

Friday, May 13, 2011

Shanhai Gold Exchange Cuts Silver Margins

Looks like the worlds largest gold and silver buyer may be giving the silver a market a small gift for next week:

"Silver is now the most speculated metal and any lowering of margins will lure more investors back," said Hong Kong-based physical gold dealer Ronald Leung.

Here's the LINK

I'm sure everyone has figure out that the Blogger software has been down for most of today and yesterday. Hopefully they'll get my post from yesterday restored.

Have a great weekend everyone. And if you think that silver was in a bubble that's popped or that this metals bull market is over, here's an oldie but goodie for you (Pick it, Pack it, Fire it up, come along, And take a hit from the bong):

7 comments:

johnrandiFriday, 13 May, 2011
After hits from da bong we'll swim out past the breakers, watch the world die...
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AnonymousFriday, 13 May, 2011
Fuck tha CRIMEX. Bring on the CHINEX!
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williamFriday, 13 May, 2011
I don't think the metals run is over and will also
Take a hit from the bong. (and will inhale)!!
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EconomicDisconnectFriday, 13 May, 2011
Yes, a little Cypress Hill for Friday, nice. Another silver player enters the fray, should be interesting.
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AnonymousSaturday, 14 May, 2011
It wreaks.....of manipulation!

Max talks to Eric Sprott, Chairman of Sprott Asset Management, about precious metals, the ever-increasing margin requirements and the ever-decreasing dollar.
@12 minutes
http://www.investmentpostcards.com/2011/05/14/keiser-report-face-to-face-with-eric-sprott-on-precious-metals/

Robin Griffiths

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/5/14_Robin_Griffiths.html

Louise Yamada continues:

“I certainly think that (silver) was due for a good reversal of what appeared to be an interim speculative bubble. But longer-term you can’t deny that silver has just come out of a 30 year basing process and I think is in a longer-term bull market. But after you have this sort of speculative run-up and decline, you are probably going to have to see a period of weeks to months of a consolidation and reestablishing the next base from which price can pick up at a later date.
When asked if the commodities takedown was an attempt to push money into stocks Louise replied, “Well that’s a very interesting question, I think that’s certainly a possibility let’s put it that way for those who want to conceive of a contrived underlying motive.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/14_Louise_Yamada_-_$5,200_Gold_is_Long-Term_Channel_Target.html

Druckenmiller Calls Out The Treasury Ponzi Scheme: "It's Not A Free
Market, It's Not A Clean Market", Identifies The Real Bond Threat

Next we move to the topic of the US ponzi and why the Fed is at its core.

Some have argued that since investors are still willing to lend to
the Treasury at very low rates, the government's financial future
can't really be that bad. "Complete nonsense," Mr. Druckenmiller
responds. "It's not a free market. It's not a clean market." The
Federal Reserve is doing much of the buying of Treasury bonds lately
through its "quantitative easing" (QE) program, he points out. "The
market isn't saying anything about the future. It's saying there's a
phony buyer of $19 billion of Treasurys a week."

http://www.zerohedge.com/article/druckenmiller-calls-out-treasury-ponzi-scheme-its-not-free-market-its-not-clean-market-ident?
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AnonymousSaturday, 14 May, 2011
Remember...the fed head said he had many TOOLS!

That said, the key to this working is that futures markets remain somewhat legitimate and serve as a reasonable price discovery mechanism. While everyone knows I believe the government manipulates and rigs all markets on a very consistent basis there are degrees to this and up until recently futures markets were at least still functioning to some degree (unlike the stock market which I believe is almost completely controlled).

With what I have seen in margin hikes in silver and now the oil complex I believe we may be entering phase 2 of central planning, which by definition will be more thuggish and overt than phase 1 since the planners have lost phase 1 and are bitter about it.

They want to punish those that cause them to lose.
http://maxkeiser.com/2011/05/13/the-war-on-freedom-4/#more-27671
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AnonymousMonday, 16 May, 2011
PIMCO's Largest "Equity" Holding - Gold

"The largest position in the fund is gold, which we think is a very good form of protection against what can go wrong.

http://www.zerohedge.com/article/pimcos-largest-equity-holding-gold
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.