tag:blogger.com,1999:blog-7982981413278241287.post246992686676599872..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: China is Sucking Up the World's Physical Gold Supply...Dave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-7982981413278241287.post-71125423802745475602010-03-30T07:49:11.493-06:002010-03-30T07:49:11.493-06:00Agree Joe. Been waiting to see how they address w...Agree Joe. Been waiting to see how they address what is obviously broken with our system and U.S. dollar. It will not be pretty when they decide to flinch.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-51384818524018070292010-03-30T07:42:43.932-06:002010-03-30T07:42:43.932-06:00As far as China goes, they are using the Sun Tzu p...As far as China goes, they are using the Sun Tzu playbook. As such, they operate in stealth while emitting mixed signals.<br /><br />At some point, they will bring their entire game plan to bear, in a surprize attack, and her enemies will surrender without firing a shot.<br /><br />Joe M.Joehttps://www.blogger.com/profile/16005483996588605077noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-74116017221288867622010-03-29T20:45:00.852-06:002010-03-29T20:45:00.852-06:00A gold standard takes away any possibility of huma...A gold standard takes away any possibility of human character defects infecting the control of money.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-42004134686731075232010-03-29T20:27:45.444-06:002010-03-29T20:27:45.444-06:00At the core this may serve as a real lesson; fiat...At the core this may serve as a real lesson; fiat "works" for paper because paper has no tether to anything tangible. The paper gold market (via leases, swaps, etc) exists on a scale that dwarfs what gold can be actually had in hand. How can all these contratcs be based on, well, nothing? Good question indeed. Welcome to our economy.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-12680443034118635802010-03-29T20:12:14.217-06:002010-03-29T20:12:14.217-06:00got it all covered. are you looking for a reason ...got it all covered. are you looking for a reason as to why another and GATA are wrong? <br /><br />how extreme can the paper to gold ratio get? I don't know. We'll know when we know and when we know, we'll wish we didn't know.<br /><br />Look at history. Look at the Dutch tulip bulb episode. People mortgaged their homes to buy one bulb. How about the internet mania? I was short Commerce One at $200/sh. CMRC had NO revenues and was nothing more than a "B2B" url. It ran up to $600 within a month of my shorting it at $200. The stock went to zero w/in about 24 months.<br /><br />All I know is the eventually the paper gold ponzi scheme - like all ponzi schemes - will collapse and likely take the western financial system with it.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-52070945231515659062010-03-29T19:59:47.222-06:002010-03-29T19:59:47.222-06:00Dave, how far have you gotten into reading the pos...Dave, how far have you gotten into reading the posts from "ANOTHER"? Apparently to him the LBMA and the paper ponzi game was supposed to implode a decade ago.<br /><br />If I remember correctly, he said claims on physical was oversold 3X through paper... Now its apparently 100X in a recent zerohedge article.anliunoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-33003355143106811142010-03-29T19:28:11.712-06:002010-03-29T19:28:11.712-06:00gyc, you love throwing out a sarcastice bone! i l...gyc, you love throwing out a sarcastice bone! i love it!Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-48205678235125326042010-03-29T19:27:40.817-06:002010-03-29T19:27:40.817-06:00yardfarmer, almost every year for at least the pas...yardfarmer, almost every year for at least the past 6 years that i've been trading futures there has been periods in which we go into backwardation. it typically precedes a nice move higher. I can't remember exactly when, but i think it was late spring 2008 that we had about week or so when spot to front-month had a $3-4 constant inversion.<br /><br />if you look at Indian/Shanghai/Viet Nam premiums right now, it is clear that he east is really hoovering physical gold, for now anyway. Fekete is right on the money about what it will be like, although expect that the Comex and the LME will change the rules and allow cash settlement, as getyourselfconnected alludes.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-80691892793454350092010-03-29T17:37:42.412-06:002010-03-29T17:37:42.412-06:00if I am not mistaken, this is yet the second incid...if I am not mistaken, this is yet the second incidence of negative basis or backwardation, the first occurring on December 2, 2008, which was the source of Antal Fekete's "Red Alert" which received wide circulation at that time. He states "once entrenched, backwardation in gold means that the cancer of the dollar has reached its terminal stage" and goes on to suggest that eventually gold will enter permanent backwardation at which point "the people controlling the supply of monetary gold cannot be persuaded to part with it" at any cost. I assume these are the global big boys you refer to.<br /><br />In addition, the massive short liquidations in the most recent COT release in S&P as well as the commercial positioning in gold, silver and copper portend some possible big movements upwards in the metals.Though is sounds too good to be true, it looks like, just maybe, those Comex gold short positions are about to get steamrolled.yardfarmerhttps://www.blogger.com/profile/04808517700285973637noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-61642900037071369732010-03-29T16:16:46.023-06:002010-03-29T16:16:46.023-06:00Cannot wait for the day the fiat scam of paper gol...Cannot wait for the day the fiat scam of paper gold gets blown sky high! At least you can get settlement in cash, HA!EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.com