Current Gold Price

[Lord Beria3]

http://kingworldnews.com/kingworldnews/ ... igher.html

With gold closing above the critical $1,650 level and silver above $30, today King World News interviewed the man who told clients in 2002, when gold was $300, to put up to 50% of their assets into physical gold. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. When asked about the recent action in gold, von Greyerz said, “We like the action and it’s exactly what we’ve been predicting. My view is that we have bottomed and we are on the way to much higher levels. We are seeing a bit of sideways action here, but it’s sideways to upward and I think that will continue. I like the pace, the fact that it’s not going up too fast, but I think we will see an acceleration to the upside in short order.”

Interesting article by a guy who called gold well back in 2002.

[clv101]

Interesting article by a guy who called gold well back in 2002.

And called it wrong. In 2002 the advice should have been real estate, and only switching into gold 2006/07.

[Lord Beria3]

Interesting article by a guy who called gold well back in 2002.

And called it wrong. In 2002 the advice should have been real estate, and only switching into gold 2006/07.

Hardly, gold went up alot during that period.

And its alot cheaper to bulk up on gold than real estate!

[Lord Beria3]

http://www.financialsense.com/contribut ... -in-silver

Excellent article on the coming explosive rise of silver.

[Lord Beria3]

http://seekingalpha.com/article/322807- ... ource=feed

Kyle Bass of Hayman Capital was clearly concerned about this leverage risk in the COMEX when he said the following:

"My opinion is very simple as a fiduciary... to the extent that you own gold and you are going to own it a long time --it's not a trade. It costs us about 90 basis points a year to roll it through financial futures contracts," he said.

"And then we went and looked at the COMEX. The COMEX at the time they had about $80 billion in open interest between futures and futures options. In the warehouse they had $2.7 billion of deliverables. So $80 billion in open interest -- $2.7 billion in deliverables. We're gonna own it a long time. You're on the board, as a fiduciary, what do you do? That's an easy one. You go get it. So you go take a billion of $2.7 billion and you let them worry about the rest."

"When I talked to the head of deliveries at COMEX NYMEX, I was like, 'What if 4% of the people want deliveries?' He said, 'Oh Kyle, that never happens. We rarely ever get a 1% delivery.' And I asked, 'Well what if it does happen?' And he said,'Price will solve everything' And I said, 'Thanks, give me the gold.'"

Mr. Bass was discussing the gold futures market, but the same dynamics apply to the silver market. With silver at $33 one big fish like Bass (pun intended) could take down 30 million ounces with his billion dollars, which is 80% the entire amount of registered silver at the COMEX.

Thanks, give me the silver!

As physical silver is removed from the foundation of the paper market, leverage will increase until a leveraged short can't get the silver and defaults on his contract. That's when promises are broken, confidence turns to panic, and the leveraged derivatives house of cards comes toppling down.

To continue my multiple metaphors, that's when the derivatives dam breaks. That's the 101st Elmo buyer entering Walmart with a thousand determined shoppers close behind him. That's what folks like Ray Kurzweil might call "the singularity". It's the point when all hell breaks loose and things go hyperbolic. The stampede for physical silver will begin.

Paper futures contract holders will increasingly stand for physical delivery, creating the ultimate short squeeze as paper shorts frantically try to acquire physical metal that is nowhere to be found to cover their positions.

Manufacturers who use silver in their products will scramble to secure physical silver supply lines to prevent their manufacturing lines from grinding to a halt, buying up anything and everything they can get their hands on.

Governments who have been net sellers of silver for the past 30 years and now have virtually no silver stocks, will be competing to increase their sovereign stockpiles of this strategically critical element at any price.

The general investing public will become fully aware of the incredible supply and demand story for silver that had been hidden under the surface by the murky layer of paper scum, and dive in to get a piece of the action.

In the words of that COMEX manager, "price will solve everything." Indeed. A much, much higher price.

Great summary on why you should be buying PHYSICAL silver right now.

[sam_uk]

Thought LB3 might like this




http://www.dailymail.co.uk/news/article ... ondon.html

[UndercoverElephant]

Thing is....£156 BILLION!!!! somehow doesn't seem so much these days. It'll be worth more when reality finally overpowers the market-rigging that's going on, but by then we'll probably be talking about trillion-pound bailouts with printed money.

[biffvernon]

Just wondering how many died in accidents and mercury poisoning in the extraction of that gold. How much pollution and habitat destruction was involved? And for what? Just so it could be put in nice neat rows on shelves.

The world economic system is rubbish.

[energy-village]

Thought LB3 might like this

Yum, yum!!

It's wrong, I know, but I do love chocolate!

[RenewableCandy]

Whacky posters on the walls. I wonder what type of people work there?

[ujoni08]

... but sadly not all of it belongs to us. Some is deposited by foreign governments as well as our own. Different shapes and marks distinguish the varying sources of the wealth.

[Lord Beria3]

Whacky posters on the walls. I wonder what type of people work there?

Used to be a canteen.

Lovely pic

[BitSlice10101]

Just wondering how many died in accidents and mercury poisoning in the extraction of that gold. How much pollution and habitat destruction was involved? And for what? Just so it could be put in nice neat rows on shelves.

The world economic system is rubbish.

I wonder how many people in the world have suffered so that you can sit at your computer with (gold) component contacts inside it, allowing you to type how hard done by the the third world is.

Get over it.

[UndercoverElephant]

http://www.zerohedge.com/news/switzerla ... w-york-fed

Earlier today, we reported that Germans are increasingly concerned that their gold, at over 3,400 tons a majority of which is likely stored in the vault 80 feet below street level of 33 Liberty (recently purchased by the Fed with freshly printed money at far higher than prevailing commercial real estate rates for the Downtown NY area), may be in jeopardy,and will likely soon formally inquire just how much of said gold is really held by the Fed. As it turns out, Germany is not alone: as part of the "Rettet Unser Schweizer Gold", or the “Gold Initiative”: A Swiss Initiative to Secure the Swiss National Bank’s Gold Reserves initiative, launched recently by four members of the Swiss parliament, the Swiss people should have a right to vote on 3 simple things: i) keeping the Swiss gold physically in Switzerland; ii) forbidding the SNB from selling any more of its gold reserves, and iii) the SNB has to hold at least 20% of its assets in gold. Needless the say the implications of this vote actually succeeding are comparable to the Greeks holding a referendum on whether or not to be in the Eurozone. And everyone saw how quickly G-Pap was "eliminated" within hours of making that particular threat. Yet it begs the question: how many more international grassroots outcries for if not repatriation, then at least an audit of foreign gold held by the New York Fed have to take place, before Goldman's (and New York Fed's) Bill Dudley relents? And why are the international central banks not disclosing what their people demand, if only to confirm that the gold is present and accounted for, even if it is at the Federal Reserve?

The clock is ticking on the "paper gold" market. It will not be long now before people start realising that if they don't hold the physical stuff themselves, their gold might just disappear.

[Potemkin Villager]