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Title: US Dollar to Collapse in 30 days
Source:
marketoracle.co.uk
URL Source: http://www.marketoracle.co.uk/index ... ame=News&file=article&sid=6952
Published: Oct 26, 2008
Author: Eric deCarbonnel
Post Date: 2008-10-26 11:32:31 by Itisa1mosttoolate
Keywords: None
Views: 631
Comments: 48
this is the disconnect between real gold and paper gold:.. COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract. Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can't produce the gold or cash), COMEX gold fails miserably as a safe haven . This is why COMEX gold prices are falling, while physical gold is disappearing from the market place Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market means that a large number of December gold contract holders are likely to request delivery. A volume, whether it causes defaults or not, is likely to change the marketplace perception of gold and cause a rush of into a physical gold plagued by shortages. Gold will skyrocket over 2000 in a matter of days. I am not the only person who believes COMEX gold futures are on the verge of collapse. I urge you to watch this video (skip to 11 minute mark) and read the extract below to see what others are saying about paper gold. Video ( red emphasis mine) Why Gold Is Dropping When It Shouldn't by Alex Wallenwein - and what it all means Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, " because Comex-gold isn't gold " - and because it deceptively pretends to be 'the' price-setter for real gold. Gold is gold, paper is paper, and "Comex gold" is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked. The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will 'go up' in value while everything else is going down. However, these very same fund managers and their paper-bound investment psychology are the exclusive reason why Comex gold is dropping in these times when everyone (including fund managers) expects gold to rise. As already stated, though, and as they now finally realize to their own dismay, Comex-gold just isn't gold - and that causes even further selling. Two Losing Bets, Compounded Fund managers' other bets are losing money fast, now, so they need to raise cash to keep up the overall value of their respective funds, so they can earn their management bonuses and avoid getting booted for lack of relative performance. Guess what they cash in on? The very same Comex paper-gold they mistakenly bought as a 'hedge', of course. Meanwhile, real investors in real gold are enjoying their shopping spree - except that the spree turned into a treasure hunt as the shelves and display cases of gold dealers look more and more like the supermarket shelves in the old Soviet Union - bare . This is the only 'bare-market' in real gold the world will see for a long, long time to come. With this split, this disconnect, between Comex illusion and gold reality, one thing or the other will have to give, and it won't be physical gold that gives. My reaction: I am certain the US is less than a month away from a currency collapse. The fed and treasury are not even taking the time to think at this point: they are just throwing money and guarantees at each new problem that pops up without worrying about the consequence. Since no one can imagine a currency collapse, there isn't the political will to take the painful steps needed to prevent it (reign in fed and let institutions fail). The forces and trends behind the financial collapse are too powerful to stop. If you have wealth and don't own gold, then you will soon be poor. By Eric deCarbonnel
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#1. To: Itisa1mosttoolate (#0)
Brainwashed on gold... Silver's better. Land's best.
Ahmadinejad in 2008! That is what they said in 1933.
Then they took peoples' gold away to make sure they'd stay poor.
Ahmadinejad in 2008! There you guys go again confiscation won't happen time to stop beating this dead horse
And if you place your trust in gold, you will starve. Anyone know some good gold recipes? Gold soup? Gold Au Gratin? Goldburgers?
The National Australia Bank will shock Wall Street 25 Jul 08
Nestle Treasure Torte Dusted with Gold 1 (12-ounce) package Peanut Butter NESTLÉ® TREASURES®, divided use 1 (12-ounce) package NESTLÉ TOLL HOUSE Semi-Sweet Chocolate Morsels 10 tablespoons butter, cut into pieces 3/4 cup granulated sugar 2 teaspoons vanilla extract 3/8 teaspoon salt, divided use 5 large eggs, separated 1/3 cup all-purpose flour 1/2 cup whipping cream 3 (2-ounce) NESTLÉ® TOLL HOUSE® Semi-Sweet Chocolate Baking Bars, chopped 1 (12.5-ounce) jar caramel ice cream topping 1 container small gold dust or flakes
Roosevelt learned from the Russians.
They won't need to steal it this time. No one has much.
Ahmadinejad in 2008! He was an excellent student.
Ahmadinejad in 2008! Roosevelt said he would give all heros that refused to cough up their gold a tenner in the gulag. They coughed all over the place, gold poured in by the tonne. He paid them in paper and then devalued the paper, bent the gold bugs over twice. I suspect some of our resident gold bugs in reality stand short on gold held in a sock. They talk a good game to fun us dummies.
LOL! Good one. Rhetorical questions: But can gold be turned into butter? Semi-Sweet Chocolate Morsels? But some do out their trust in a pretty and rare metal. I don't understand that, but to each his own.
Which is why the work so hard to control the land through environmental laws.
Heres the facts total world wide gold available to private investors 25.5 metric tons there are 32,000 ozs in a ton = 816,000,000 ozs based on $700.00 per ozs that = $571,200 000,000 in present dollars and if one assumes Americans own a 1/3rd of all available gold that amounts to $17 billion ....that amount would not pay for a month in Iraq even with full compliance
Do you believe that Americans are physically holding a third of the world's gold? That's lots of gold.
No of course not I said if we assume....more realistic is a little over 5 million Americans own any physical gold excluding jewelery and assume they all own 10 ozs that amounts to $35 billion....a lttle less than Bill Gates net worth .....another reason folks can't buy any
People that deny history usually have an agenda, or they are incapable of self thinking. This about 1933... "A key piece of legislation in this story is the Emergency Banking Act of 1933, which Congress passed on March 9 without having read it and after only the most trivial debate. House Minority Leader Bertrand H. Snell (R-NY) generously conceded that it was "entirely out of the ordinary" to pass legislation that "is not even in print at the time it is offered." He urged his colleagues to pass it all the same: "The house is burning down, and the President of the United States says this is the way to put out the fire. [Applause.] And to me at this time there is only one answer to this question, and that is to give the President what he demands and says is necessary to meet the situation." Among other things, the act retroactively approved the president's closing of private banks throughout the country for several days the previous week, an act for which he had not bothered to provide a legal justification. "It gave the secretary of the Treasury the power to require all individuals and corporations to hand over all their gold coin, gold bullion, or gold certificates if in his judgment "such action is necessary to protect the currency system of the United States."
I don't have a agenda I'm just making a lot of money thanks to guys like you I sure hope you can scare a few more into selling because I'm buying all I can....why don't you post the "trading with enemy act" thats currently in place and gives the president the right to confiscate everything you own....bank accounts house car etc
Thanks for the input. Since PM trades are private transactions, I wouldn't even hazard a guess as to how many people, or how much, is out there.
KISS formula ...gold is real money
Why is that? I was under the impression that silver and gold were both desirable. Silver for everyday purchases, gold for the bigger things. Please elaborate.
"They should rename 'FreeRepublic.com' 'ABunchOfDumbAsses.org'" -- Scott Horton The upside to hyperinflation is that each and every one of us will become millionaires!
Yep - it makes me kinda ill to think of the gold that I could be sitting on, instead of putting jack into Lehman corporate bonds that I may, or may not, get pennies on the dollar...
We do know or best estimate there is a total world wide stockpile of 166,000 metric tons central banks plus a few wealthy investors (read Rothchilds) own 2/3rds jewelry/industry plus you and me make up the other 1/3rd...not hard to figure it out
rob... A few days ago here on the 4um you said you had made a fortune in just one week. I and perhaps others here might be interested in how you are holding that fortune?
Going back to the OP, it will be interesting if they just confiscate this worthless paper that they might try and blame the crisis on.
Neat analysis Robbie, but wouldn't be 571/3= 190 billion?
"Satan / Cheney in "08" I like AU for its portability - look at the difference in the price/oz to see what I mean. AG that was minted prior to 1964, 'junk silver coins,' are easily recognizable and useful to have, just in case.
I often state that this government will do ANYTHING to ensure it survives. That has become only to apparent in the last eight years, more laws, more power. If a president wants our gold or whatever, they now have the means to crush anyone that stands in their way. The Constitution is indeed now a worthless piece of paper.
Full discloser...I own a bunch of gold stocks like everyone else over the past month taken a 20% haircut however I was big buyer Friday AEM is one of the best in June when gold was trading for $900 it was selling for $80.00 today its $26.00 last time it traded here was when gold was $400...as for Silver PAAS is the best same story selling for $11.00 last time it traded here was when silver was $6.00...not saying there could be more selling because of hedge fund selling ...buy the miners they are silly cheap
rob... We still do not know how you are holding the fortune you spoke of????
Talking about how much Americans own assuming 1.5/2% of the population does
Sorry about that...been buying gold since it was $300.00 could drop another $100 and I still have doubled my money....my trading account has tripled over the last 10 months
Got it.
"Satan / Cheney in "08" In other words, your position is not HOLDING gold?
How you come to that conclusion.....anyway I own many ounces in both gold silver paladuium and platinum in its physical form....
Say a person retired today, after working for thirty years, and that person had traded for one ounce of gold every week, and selling it at $750/oz, he'd have 1.17M. Not too shabby.
KING DOLLAR!!!! Forget it. The other world currencies are in worse shape than the dollar. Cash is king.
Mark If America is destroyed, it may be by Americans who salute the flag, sing the national anthem, march in patriotic parades, cheer Fourth of July speakers - normally good Americans who fail to comprehend what is required to keep our country strong and free - Americans who have been lulled into a false security (April 1968).---Ezra Taft Benson, US Secretary of Agriculture 1953-1961 under Eisenhower
Brings a whole new meaning to $100,000 bar.
The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke
To be clear, I have never, and will never, ask anyone the exact specifics of their holdings. I might ask for general advice, but I'll not want to know anyone's financials. It's none of my damn business.
Conclusion??? I asked since you made the statement you made a fortune. Thats fine, only fair to ask how you are holding the fortune. I did not make a fortune and my holdings are in real estate. There are no secret ways to make and hold money. Even Buffett will tell you where his holdings are and I suspect he is worth more than both of us.
True... However not too many of us have steady nerves when we know we are the minnows swimming in the deep end of the pond.
Comments (42 - 48) not displayed.
Top • Page Up • Full Thread • Page Down • Bottom/LatestIf you have wealth and don't own gold, then you will soon be poor.
Everyone agrees that unanimity is hard to find.
#2. To: Itisa1mosttoolate (#0)
If you have wealth and don't own gold, then you will soon be poor.
#3. To: Cynicom (#2)
Everyone agrees that unanimity is hard to find.
#4. To: bluegrass (#3)
#5. To: Itisa1mosttoolate (#0)
If you have wealth and don't own gold, then you will soon be poor.
#6. To: bluegrass, Cynicom, robnoel (#3)
#7. To: PSUSA (#5)
#8. To: bluegrass (#3)
#9. To: robnoel (#4)
Everyone agrees that unanimity is hard to find.
#10. To: Cynicom (#8)
Everyone agrees that unanimity is hard to find.
#11. To: bluegrass (#10)
He was an excellent student.
#12. To: robnoel (#7)
Nestle Treasure Torte Dusted with Gold
#13. To: bluegrass, lodwick, rotara, Original_Intent (#1)
Silver's better. Land's best.
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. —Thomas Jefferson, 1802
#14. To: bluegrass (#9)
#15. To: robnoel. everyone (#14)
#16. To: lodwick (#15)
(Edited)
#17. To: lodwick (#15)
#18. To: Cynicom (#17)
People that deny history usually have an agenda, or they are incapable of self thinking.
#19. To: robnoel, Cynicom, farmfriend, all (#16)
#20. To: PSUSA (#12)
But some do out their trust in a pretty and rare metal. I don't understand that, but to each his own.
#21. To: bluegrass (#1)
Silver's better.
#22. To: robnoel, all (#20)
KISS formula ...gold is real money
#23. To: lodwick (#19)
Since PM trades are private transactions, I wouldn't even hazard a guess as to how many people, or how much, is out there.
#24. To: robnoel (#18)
(Edited)
I don't have a agenda I'm just making a lot of money thanks to guys like you
#25. To: Cynicom (#17)
"It gave the secretary of the Treasury the power to require all individuals and corporations to hand over all their gold coin, gold bullion, or gold certificates if in his judgment "such action is necessary to protect the currency system of the United States."
#26. To: robnoel (#14)
$571,200 000,000 in present dollars and if one assumes Americans own a 1/3rd of all available gold that amounts to $17 billion ....that amount would not pay for a month in Iraq even with full compliance
#27. To: PnbC, all (#21)
Why is that? I was under the impression that silver and gold were both desirable. Silver for everyday purchases, gold for the bigger things. Please elaborate.
#28. To: PSUSA (#25)
#29. To: lodwick (#22)
(Edited)
#30. To: robnoel (#29)
#31. To: tom007 (#26)
#32. To: Cynicom (#30)
#33. To: robnoel (#31)
#34. To: robnoel (#32)
Sorry about that...been buying gold since it was $300.00 could drop another $100 and I still have doubled my money.
#35. To: Cynicom (#34)
#36. To: Cynicom (#34)
#37. To: Itisa1mosttoolate (#0)
#38. To: robnoel (#7)
#39. To: robnoel. the thread, all (#29)
#40. To: robnoel (#35)
How you come to that conclusion.....anyway I own many ounces in both gold silver paladuium and platinum in its physical form....
#41. To: lodwick (#36)
Not too shabby.
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