Caption Contest 1A SilverDoctors Exclusive By SD Contributor AGXIIK:

The Dollar’s fate lies in China’s Hand.  Gold is the key to this fate.  The Chinese Central bank’s fingerprints are all over the gold manipulation story.
The Chinese play the gold players like fiddles, rigging the price of gold lower to take in as much as they can. 
Like Sun Tsu said, If you can win the battle without fighting, that is a good warThey’ve not fired a shot. They’ve used our currency reserves to buy up our gold.
The existence of our world  reserve currency status will depend on how and when China shows the world what they hold in gold That report is due in 2014 Once they show the world they have the gold to back their currency, the entire world will flock to the winner.
The fate of the dollar is almost entirely tied to China, its gold holdings and the value of gold once its real value is set.
$50,000 an ounce could become a real figure.

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The Dollar’s fate lies in China’s Hand.  Gold is the key to this fate.
We, the US,  are nearly devoid of gold.
GLD and the BOE shipped neaerly 1,900 tons to China in the last 9 months.   China probably holds 20,000 tons, twice the most liberal estimate.  Ft Knox has been looted.  The math of how we have shipped 7,000 tons of gold overseas in the last 20 years says Ft Knox is the only depository large enough to meet that demand.

China has 20 times the currency reserves held by the ESF and their POMO branch.  The Chinese Central bank’s fingerprints are all over the gold manipulation story.  Jim Sinclair is taking a position with the Shanghai Futures Exchange.   The GS squid is taking up Venezuela’s gold aftere Chavez was retired early for his crime of demanding his 144 tons.  GS and its fellow banksters run the IL Duces of the world like a polo player runs his stable.   Probably possessing US Passports as well as passports of other countries, the GS drones care little that they and their cronies are aiding and abetting the suppression of gold prices on behalf of their clients, the Chinese.

The Chinese play the gold players like fiddles, rigging the price of gold lower to take in as much as they can.  China has many problems, not least of which is their QE of $15 trillion and an economy filled with bubbles, but like Sun Tsu said, if you can win the battle without fighting, that is a good war.  They’ve not fired a shot. They’ve used our currency reserves to buy up our gold.

Since we talk about gold sales in  tons, one ton of gold sells for about $40,000,000.   2,000 tons of gold is $80 billion.  Pocket change to the Chinese.  They have trillions in reserves and tens of trillions in QE liquidity. They are buying every ton of gold produced in the world today at about 1.20 to 1.
Yes, they may have some serious currency and banking issues but this is the cost of war.  No blood spent; just FIAT.

The existence of our world  reserve currency status will depend on how and when China shows the world what they hold in gold That report is due in 2014.  Once they show the world they have the gold to back their currency, the entire world will flock to the winner.  Which would you prefer to hold?   An unbacked FIAT currency or a gold backed currency?

The fate of the dollar is almost entirely tied to China, its gold holdings and the value of gold once its real value is set.
$50,000 an ounce could become a real figure.  1 ton would be worth $1,600,000,000 or 40 times its present valueof $1,250  per ounce.  20,000 ounces would be worth $32 trillion.   That would easily cover the entire Chinese M1,2 and 3 by nearly 2 to 1.

Even $10,000 an ounce would be worth $6.2 trillion, backing the M1-3 adequately.
Which currency will win?  Gold backed or BS backed.

I think China’s plan follows something along this line.  Otherwise why would China be buying 100% of the world production of gold?
They read the tea leaves quite well.   Coffe grounds don’t predict much at all

sic semper tyrannis

  1. I believe there is a saying that “he who owns the gold make the rules”.  
    What is not to say that “he who holds the gold can dictate the price” ????    Would any country holding any sizable quantity of gold argue if China were to say “we will sell any or all of our gold for $120,000 per ounce if purchased with our new gold backed Renmimbi – NO LESS!!” ?? 
    That’s all it would take. 
    But then again their cheap exports would quadruple in price overnight…….  the future is very interesting indeed!

    • Actually, having the most powerful military the world has ever known trumps everything else. The US could very easily turn China into a vast wasteland a hundred times over, but your point is well taken.

      I am reminded of an event that took place in Kuwait years ago that was so devastating to the Iraqi forces that the US military did the best they could to keep it out of the news. My son-in-law was (and still is) an AF pilot. He told me what happened. Two A-10 (the Warthog aircraft) pilots on patrol spotted a convoy of tanks, artillery, Iraqi soldiers, etc on a road in Kuwait. The warthogs strafed the convoy over and over. The warthogs incredible machine guns were using the extremely deadly, tank killing, spent uranium shells. A spent uranium shell is deigned to penetrate a tank…the inside of the tank heats to thousands of degrees, incinerating everything inside. Upon later inspection by US soldiers, it was determined that the death rate was near 100% of the convoy. The number of dead were in the thousands. All of this from just 2 warthog aircraft.

    • To date, not inflation and not deflation are the main enemy, and the main problem of the cartel. Today, gold is the main enemy and the main problem of the cartel.
      They will not admit it publicly, but it is true.

    • @ condor:
      Why the U.S. can not achieve anything in Afghanistan? In Iraq? In Libya?
      In a conventional war against China, the U.S. Army is doomed to failure.
      Nuclear war against China – is a global nuclear war, in which the winners will be. And those who remain alive, will envy the dead.

    • @ condor:
      We are quickly losing our funding for the military as we are almost broke. This military complex will simply shift to whomever has the money, and China has the money, not to mention the manpower. If we ever were to let loose on China, I would not want to see the world after such a move. Once the dollar loses it’s status as reserve, we’re done! The other thing to consider is that just as they have kept their gold acquisition secret, who the heck knows what they have that they can throw at us?

    • Jeff Christian claims that gold is traded 100 ounces of paper gold to 1 of physical,then the actual price of physical is $124,000 per ounce,and silver at $2000.

  2. Here’s a comment I posted on Silver Doctors back on Jan 27, 2013:
    59LesPaul – China is more interested in gold than silver.  Just look at how much gold they have acquired over the past 5 years.  They are buying physical gold by the 100′s and 1,000′s of metric tons.  As the old saying goes ‘Follow The Money.’  Who has more to gain by suppressing gold (and silver) prices than the largest buyer in the world of these metals?
    To elaborate further I agree with AGIIXK that some sort of revaluation will occur as this theory has been published by Precious Metal Pete and many others. 

    • We can consider that the aim of China is not to waste US dollar holdings. They do not want to loose years of work, do not want to receive freshly printed dollars neither and want to have fair market.
      If AG is correct and they acquired 20,000 tons in last years and the revaluation will come, and assuming they keep $4T of debt, then the gold have to be revalued very roughly to $4T / (20,000,000 kg x 30) = $7,000/oz. That would be fair price.
      And I wonder where the price $50,000/oz comes from?

    • Jim Sinclair has an equation which he posted a few years ago and the price was close to $15,000 / oz for gold. It took into several accounts such as world debt load, known gold reserves, etc.

    • Obviously these holders want to keep paper, not gold. They do not want to hold gold. If they wanted gold, they will not spend for paper gold. I mean most of them. What makes you to believe that the lover of paper will change to physical gold? I see no game changer here.
      Long time ago already Jim Sinclair sold his whole family and the dog to buy more gold which, according to his oracle, is just on turn to stratosphere every week and month while opposite always happens. Should we really still take seriously whatever he is saying?

    • I do not really follow Sinclair anymore because he’s been very wrong in his predictions.  I just mentioned he had a mathematical equation he used a couple years ago that had gold value at near $15,000. 
      You’re asking complex questions but guessing it won’t be the Paper Gold Holders that eventually make this decision. 

  3. The whole thing is so murky. People say hey it is TBTP that hold the price down, and china benefits, others say that the west has made a deal with china, others day that china is the sneaky one. I think I’ve said before that the gold suppression game fits both the west’s and china’s needs and that is all there is to say about it. The biggest problem I see is that the end result will likely be war.
    People have remarked that the chinese have talked about slowing down, stopping and or liquidating their US dollars as foreign reserves which of course is telling. What is as or more telling is that many chinese citizens are liquidating their “dollars” by buying real estate in foreign countries ( ex. california B.C ) which as an aside distorts the market there. This is I guess to hedge their position at home, and buy real assets. Combine this with the fact that they are buying ( retail ) gold and silver like it’s going out of style while asswipes here brag about the market, and one can see the writing on the wall.

  4. Great piece – hope your right but then again, not.   We will see.  The sooner they open the Kimono the better.  My mining shares have been strangled by the criminal banksters. 
    (One footnote: I think Jim Sinclair joined the Singapore Exchange.) 

  5. People come up with the Damndest new theories every time Gold and Silver go to the shithouse. There are dark powers out there folks that will not be alleviated for many months possibly several years to come. As for my humble and honest thoughts I cannot wait to be amused by the next theory.
    Happy Thanksgiving

    • It’s funny, if one looks at some of these wildspun ancient aliens theories, perhaps the original gold manipulation story comes from a professional liar, charlatan, and Colonel Sanders impersonator Zecharia Sitchen who posited ( via deliberately made up / misinterpreted interpretation of Sumerian text ) that humans were created by alien overlords to mine gold on earth to be transferred to their home planet to infuse in the atmosphere or to eat it in a sandwich… or something..

    • Blinders,
      If one would open the vault doors at Fort Knox and give a loud shout, it would be returned by a very loud Echo, because there is no Gold. Been gone for decades.

  6. All I would add is that China has not “looted” our gold, I believe we have given it to them in lieu of trillions owed. The elite planned to trash the U.S. and replace it with China for some time now. Thus the jobs, businesses, factories and gold exodus east in the last 20 years. This stuff is all planned out years in advance, unbeknownst to us, as we are not in the NWO club. It will be much easier ushering in a new world order when the U.S. is cooked and China is king. After all, it is a communist state the rulers want the world to be in going forward. It all fits perfectly.

    I think instead of having a pole shift, we are having a hemisphere shift!

    • Bingo!! I agree 100% @SilverSlicker
      The Elite are moving and Manipulating the Gold. Doesn’t matter where it goes the Elite are in charge.
      Come on folks the Jobs went there but the Chinese didn’t bring them over they where sent over.
      How many businesses are over there now? Not brought over but sent over.
      The Elite are in charge and they are made up of all ethnic types so no borders to to hold them back.
      I don’t no about the being communist part but I agree it has been planned for years. KEEP STACKING
      @AGXIIK Good article, got people thinking and throwing out ideas.

    • I think it’s been proven over again that you cannot form a NWO around the U.S. Were too liberal and freedom loving at heart. We complain and pull back the reigns when our government gets caught in massacres. Nope, better to kill of the freedom loving Americans by stealing all of their wealth and handing it over to cold blooded Communist. You know, the guys that mowed down Buddhist Monks protesting in a march… Just rolled over them with tanks! That’ll teach them what we think of free speech! ….Who else would force the world to obey new laws, or changes in those laws? A Dictatorship can make their NWO dream happen! Then assasinate the communist head, install a puppet figure and rule the world through a Communist puppet state designed to control the people.
      Democracy -1
      Dictatorship +1

  7. Stibot  I took $50,000 as a price figure far outside anything in my comfort level,  just to see what would fully cover China’s entire monetary base.  China watchers estimate the Chinese currency base to be $23 trillion with printings of $15 trillion in the last year or two.  That was some crazy QE and appears to be making for some serious and damaging effects in their bond prices, rates and the most important matter, trying to rein and and control this amount of FIAT sloshing around. The strains and imbalances in their banking system popped out in mid-summer and nearly exploded. The Shibor races into double digits. 
    The exact currency figures range across multi- trillion  amounts  with the Shadow bankers holding $23 trillion. The Chinese are loath to announce anything substantial, including their gold stocks. People and governments love over report or under report, if for no other reason than to keep others guessing. Human nature is to double or cut by 50% any amount to deceive the casual onlooker. I’ve seen it myriad of times in my business.  That’s way to much currency in a country of this size, even with 1.3 billion people and a 6-8 trillion GDP  Even the GDP is hard to estimate. That is asking for trouble and if the Chinese banking system suffers a Lehman break, I have no real handle on what it might do to gold prices. Maybe they will let it rise, moving away from PM price manipulations while they try to hold back the breaking FIAT dam. I wonder what will happen when the Fed loses control as well. Both will create some dangerous currents. Most of us will be swimming upstream if that happens.
    $50,000 an ounce would cover a bit more than the entire currency base, saving the Empire. Unbacked currencies will be hurt badly.
    $10,000 is more reasonable as a gold price if momentum shifts to gold and precious metals.It could easily take 2-3 years to hit this number.  Nothing that I’ve read says this would not happen. 
    Ranger has made repeated statements that we have 2 years before a breakout.  I’ve changed my thinking and believe Ranger is right, and then some, since he researches these topics and knows the longer game better than most
    We are not done with QE by a long shot, nor are  bond and equity markets done with their skewed actions.  The imbalances created by tens of trillions of dollars of US and foreign currency has yet to play out fully.  I think that will happen when the stock and bond markets have a severe drop, tied together with a large increase in in interest rates. Time is on the side of the patient person because what we see today cannot continue, and probably can’t continue for much longer. The strains are severe. 2 years is a lifetime in these types of markets, leaving aside the saber rattling in the ME and the Sendaku Islands.
    Even with a modest 5% for UST 10 yr, a huge  liquidation of paper assets fleeing these markets, could also create a big drop in precious metals.  Past performance of the PMs during the Lehman failure don’t guaranty this will happen but it seems to support a fear factor liquidation event. 
    On the other hand, as the one armed economic said, the metals have been beaten down  so thoroughly  that in the paper bubble pop, people might race to precious metals. Premiums will rocket up. Supplies will dry up.  PMs went up about 300% from early 2000 to the 2008 period. Then silver got slammed by nearly 50%. In 1970 the DOW was about 800. In 1980 the DOW was 800. Precious metals went up by 1000-2000% then down by 75% This crazy equity market has seen DOW at 14,000 in 2000.  DOW is only 16,000 today. Precious metals raced up from the Lehman crash by 400% and then down by 50%. With the present demands at a high level and supply shortages becoming more noticeable, my thought is PMs will break higher soonere than later.
      Show me the love, Mr DOW.  All talk, no action. Reasonable men and women fear this market and are leaving it to the algos and amateurs. I’ll taken the silver and golden girls, holding them close.
    Nothing in the markets say that this 16,000 DOW is a reasonable price.  Downside action is more likely than up.  Most of the stock  tea leaf readers who have some time in the market see downside risk at some very high levels.  The VIX is 13. 13  shows super complacency and bodes badly  for the market.  I think a snapshot downwards is in the cards and am waiting for the black swan event or surprise sideways nudge that will produce this.  The POMO team has kept rates down for several years in a market that shouts for higher rates.
    Hey man, we’re dying out here.
    Mon and Dad can’t make squat on their investments. They are going broke by the millions. This is a damn crime.
    We’ll see the resolutions to these imbalances but I am not sanguine that it will happen any time soon.  2 years is a reasonable term.
    Most here can hold their breaths for a couple of years but tens of millions can’t. I don’t see how this will work out for anyone but the few who stack. The Chinese have stacking figured out. I am going with the winners here and over there. I think they are on to something

    • “I think he is right and then some since he researches these topics and knows the longer game better than most”
      I have to disagree since nobody can predict via usual means, what will happen in a situation that has never been seen before. It reminds me of those who knew real estate prices would never go down by historic evaluation. You can not evaluate, nor predict a scenario that is entirely new and unprecedented. All due respect AGXIIK and Ranger…………….

    • 2 more years, hmmm… at the current GLD depletion rate the price might have to be allowed to rise as incentive to shake more physical loose (Jesse’s theory)
      appreciate your China theorizing AGXIIK, makes complete sense

    • “I think a snapshot downwards is in the cards and am waiting for the black swan event or surprise sideways nudge that will produce this.”
      I agree, AG… partly.  The stock market is teetering at values never before seen in the US.  It is up about 30% YTD.  But the economy did not experience the 30% growth in corporate earnings that would fully justify such an annual price rise.  So, what does?  Well, IMO, it is massive infusions of either free or very cheap money.  A lot of the QE money has been going into the US stock and bond markets.  Many companies with profits cannot find a suitable way of investing them in additional money-making ventures, so are buying back their shares.  The result of this is more money chasing fewer shares.  The simple econ that I understand says that the only way that the discrepancy between the amount of available capital and the number of shares is that share prices MUST rise… and they have been.  If one does a decent analysis of the US economy, one should come to the conclusion that: 1) the US stock market has been inflated by about 50%; and 2) the current stock price levels are not sustainable.  You know what they say about that which is not economically sustainable – it rolls over and prices drop, sometimes precipitously.  As a stock investor, I am very skittish about all the manipulation being done by the Fed and the Gov.  They are like children playing with a loaded gun… which is a situation that you just know is not going to end well.
      Where we might be in disagreement is that I am not convinced that an “event”, black swan or otherwise, is necessary to cause a huge collapse of this house-of-cards stock market.  Thanks to all the manipulation, it is inherently unstable in and of itself.  It could topple at any moment or it could continue to shake, wobble, and shimmy for years yet.  There’s just no way to know with certainty.
      That said, I still feel as if 2014-15 is a VERY dangerous time for the US economy and the US dollar.  Like an over-heated boiler, it is fine until it is not and then… BOOM!

  8. BY the way   what is Sinclair doing going over to China to run one of their precious metals exchanges. What does he know that we don’t?  He helped orchestrate the takedown of the Hunts and the management of their silver stocks and bankruptcy liquidation, aided with $1 billion in  Fed loans, overseen by Paul Volker.
    Sinclair is on to something and I’ve not heard anything from him as to the reason  why. Not that he talks to me.  But if someone knows something, please chime in on this.
    Silver Slicker I’m always torn between the one saying, ‘This time it’s different’ and other one “History does not always repeat itself, but it does rhyme’ Human nature hasn’t changed and it’s what I use as my litmus test. Maybe we can combine the two phrases.
    “This time it’ll be the same thing, only in a different form’
    Or something like that.
    Sometimes I feel like we’ve been handed a live grenade with the pin pulled and no instruction manual Do you try to put the pin back in then drop it in your haste, or throw it, then to get out of the way when it goes off. There’s going to be some damage along the way


  9. Guys, a very interesting video from britherjohn. I’ll provide some cliffnotes for those not wanting to watch..
    He goes over a silver survey talking about prices, demand, mining.
    As we know, the majority of silver comes from base metal mining.
    He then moves to show data on the stockpiles of base metals and their prices.
    It turns out that in the last 5 years that stockpiles of zinc, copper, etc have EXPLODED
    His theory, which in my view is no nuttier than, as has been discussed, the myriad of other theories is that many of these large mining operations exist to keep feeding silver into the market.
    He notes, again, that there should be no need to stockpile these base metals, and in the case where there is a legit supply glut, price should literally collapse.
    Blowing this up further, recall that Goldman Sachs was hoarding aluminum as well.
    So, the million dollar question, is it coincidence that the base metals associated with silver being a byproduct of are being mined at a frenetic pace, despite the obvious lack of immediate need for them – all while the price of said metals although going lower, has hardly collapsed?

    • AGXIIK,
      Gasoline isn’t the same anymore. Much lower octane than the 105 that I had to run in my 63′ Stingray, per factory specs posted inside the glove box door. Yep today Corvettes are different, but not near the same ride. The name plate logo on the car looks the same, but the car, the ride, the price ain’t anywhere close, totally different and not the same. All in all AGXIIK I see a lot of suppositions but no proof of any, just malarky to keep up the interest of the viewer. It has been stated that mathematics can solve any problem.Why doesn’t someone try that?

    • to expand on BroJ’s theory, perhaps they’re continuing to mine an “excess” of silver to not only put out fires at the Crimex, but because they intend on monetizing silver?

    • they could remonetize gold in the sense that it sits in a vault and paper is based on it. For silver coinage, I think ranger is right. You COULD in once sense remonetize it, but it would have to be priced so high it would be impactical.
      I think more and more that at some point silver will be heavily regulated as something that is “strategically important for national security” for it’s uses.

  10. Wasn’t the Chinese government telling their citizens to invest in gold about a year or so ago? Wow, it really fits together that the Chinese would be holding down the price, via the federal reserve, to vacuum it all up at bargain basement prices, for the good of the state and the people.

    • It seems as though we have what amounts to neo-opium wars brewing.
      Recall when the chinese started trading with britain they would trade tea for silver. Britain was concerned about their imbalance, and loss of silver so they introduced opium to the chinese as a trade for tea to save silver.. the rest is blood soaked history.
      Now today, the chinese send us toys, ipads and about everything else, and are happy to exchange the dollars we give them for gold ans silver. What the next step is? Well, probably war..
      from today:
      b-52s flew through a newly marked security zone in disputed areas by the chinese.

    • @dirtlump
      And wasn’t it “cool” how we fly through that area with B52s asap to ruffle the dragon feathers? War looks unavoidable the way the globalists are playing the fiddle right now.

  11. Gold is worth whatever a willing buyer is offering to pay.  If China announced that immediately China would buy or sell gold for 10,000 Yuan per gram, not in dollars or any other currency, that would be the value of gold.  (The 10,000 Yuan per gram gold is equivalent to $51,051 per troy ounce gold at today’s exchange rate.)  You could sell your ounce of gold for 311,035 Yuan and buy some Chinese imports, or stash the Yuan in your safe.  If you became uncomfortable with the Yuan fiat, you can repurchase the ounce of gold for 311,035 Yuan and stash it.  Or you can go the money markets and exchange the 311,035 Yuan for $51,000.  When this happens, China will also announce that all trade with China will be in Yuan.  China has issued a one troy ounce gold coin that is legal tender at 311,035 Yuan.  Note that China is recasting all the gold they are purchasing in one kilogram bars.  A 1 kg bar is bought and sold for 10,000,000 Yuan.  The Yuan exchange rate is still 6.0926 Yuan per dollar (today’s exchange rate).  If you own the world’s reserves, you can imprint any value on the gold metal fiat that you want.  We will be selling gold to buy Chinese exports (the only way to raise Yuan required for trade).

  12. I hear you Ranger. Some of the data is real, some is a best guess on my part and those of others.
    Connecting the dots is a beast.  Since there are not enough dots to know what is going on behind the silk curtain I feel like the deer in the headlights.  Jump left;  jump right; stay still or crap and go blind. Every day something new pops up to thrown assumptions into the cocked hat. 
    I’ve reread some of my past posts in the Best of.  After what we’ve been seeing lately, some are loopy.
    One thing that is pretty certain  If you folllow the money (Precious metals),  it’s leading to China and other eastern countries. 
    As for anyone interested in my posts, I’m working it like a day job,  hope to make some sense of what comes our way, avoid the worst, and make the best of it given our resources and stay optimistic

    • AGXIIK,
      A common belief is that as long as the military industrial complex can still convince the majority of the world that the dollar is sound and that our military maneuvers are a threat, the climb to precious metals as real money will be long and hard. But holding out hope that a country, maybe Russia or China may be close to calling America’s bluff! America is not the America protector it once was, but a bully that needs to be put in it’s place.

    • Canada put the American bully in its place when it tried invading in 1812-1814; Miffed by the British embargo on America’s abetting Napoleon, they outnumbered Canadian troops something around 10:1. But the valiant Canucks fought them off. Now there’s something to be thankful for.

  13. The governments of the world wouldn’t allow this to take place if it was all for real. There is  a lot more stories behind the lines. There is a lot of theories here are some. The most believable first. # Most of the gold is being laundard through china then is going to the war chest for the world government. 2# All the government crooks of the one world government knows that gold will never be worth its true value they wont let it so no harm done. 3# Major nuclear war is coming who cares about gold. 4# Its actually real an china does hold 8000 tons and is in a plot to take down all the governments of the world so there can be a one world government

  14. there’s a post on ZH that appears to report on some immediate happenings in the Sendakus.  Those military minded and knowledgeable about strategies and tactics might want to read it.   I remember when the Soviets shot down KAL 007 in Reagan’s time.  That was a large event and warning to us.  We shot down an Iranian civilian airliner as a big but misplaced warning that we can strike them any time and willing to hit civilians.   With China, Japan and Taiwan (billions of US dollars given to J and T for defense) eyeballing each other over gunsights, just one ‘mistake’ would be freaking disasterous.  Or, like the article states, China fires the FIAT weapon and dumps $500 billion of their US currency reserves.  That would jam a big cork in the bottle—or Obama’s pie hole
      I hope he, Michele and their girls have a pleasant Thanksgiving.  Tomorrow or this coming weekend might be dicey.
      Probe with steel  
    When weakness is found, move in. If strength is found, move back. 
    China’s carriers look pretty bad-ass.  Their fighter jets are knock-offs of ours so they are probably formidable.

    Ranger what you noted about superpower standoffs makes my stomach ache.
    You and I are old enough to remember CONLRAD, the air raid sirens going off once a week and the school child warning “If you see a nuclear blast,get under your desk, duck and cover’
    I hope TPTB wait until we’re finished dinner tonight before doing something incredibly stupid. I’m not as flexible as I used to be so tucking my head between my legs and kissing my henie goodbye isn’t going to work out too well. Gumby I ain’t

    • @AGXIIK:  Since you brought up the Korean Airlines flight 007 shot down on Sept. 1, 1983 have you ever heard the name of Larry McDonald that was a Democratic Senator on this flight and his ties to silver?  Interesting to say the least.
      “…The most outspoken sales opponents are hawkish conservatives who argue the nation’s defense would be weakened without a silver reserve, especially with sharply rising prices pointing to a world-wide shortage of the metal. At yesterday’s Armed Services Committee meeting Rep. Larry McDonald (D., Ga.) argued the government should be buying silver rather than selling it.”

    • @AGXIIK
      “We shot down an Iranian civilian airliner as a big but misplaced warning that we can strike them any time and willing to hit civilians.”
      Well, perhaps.  The official story on that was that the US carrier fleet in that area had warned ALL civilian aircraft to keep clear of the fleet and to not approach or they would be considered as hostile aircraft and shot down.  Apparently, the captain of that Iranian airliner had bigger balls than brains and decided not to veer off.  Maybe it’s just me but if a bunch of foreign war ships with itchy trigger fingers were warning me off of my current flight path, I would GTF outta there.
      Radar resolution is not very good.  It shows an aircraft as an off-white blob.  Sometimes it is good enough to tell the difference between a small and a large aircraft but there is no way that it can tell the difference between an airliner and a bomber.  Of course, these are the same guys who think that flying airliners into buildings to make political statements is a fine idea, so whether or not the craft is ID’d as an airliner isn’t that relevant.  It IS a threat if it is on an intercept course and ignores warnings to veer off.  In any case, this was a true air tragedy that was fully on par with that of KAL 007 5 years before.

  15. Well, things can’t be that bad after all, just think about how rich we are going to be 7 years from now, reminding everyone that there will be no Silver left on earth to mine. Now you do remember that it was said by the super knowing that a year or so ago it was profoundly stated that there was less than 8 years of Silver left to be mined out in the entire world? Well if we are all still above ground in 2020 we gonna be rich!
    Reminds me of the story of Zeke and Leroy, Scalp hunters of the wild West. Zeke woke up one morning and at least 100 Comanches surrounded their small camp and poked Leroy and said, “Wake up Leroy, we gonna be rich”!

    • Ranger stated: “just think about how rich we are going to be 7 years from now, reminding everyone that there will be no Silver left on earth to mine. Now you do remember that it was said by the super knowing that a year or so ago it was profoundly stated that there was less than 8 years of Silver left to be mined out in the entire world? Well if we are all still above ground in 2020 we gonna be rich!”

      Ranger, there’s a lot of people on the internet discussion forums who’ve played the children’s game ‘telephone’, and have changed the original story to something different, but sounding a little the same.
      In ’09 the USGS reported that silver would be extinct from mining in 20 YEARS, NOT 2020.
      20 years from 2009 is 2029. You’ll have to wait a lot longer than you thought.

  16. Bay of Pigs  I appreciate the correction
     Hey, I get to wear the DA hat twice today. Wifey caught me being DA this AM too.  Not tellin’ but it might have had something to do with a 300 CC front wheel trike that caught my eye.  Or was it the FLIR night scope? Both are good preps but  are Chinese-made and I’m on an all American buying diet for a while.
    Sinclair is heading up the Singapore Precious metals Exchange.  NOt Shanghai. 
    I am not sure if that’s as big a mistake as saying ‘lightening and lightening bug’ but reading JS Mineset Jim does say Hong Kong, Shanghai and Singapore will lead the Golden Parade.  He sees Singapore as the precious metals hub for this region.  I would not argue with him on that score. BTW there is some good intel on that site too.
    Singapore is different than Shanghai if for no other reason that China has different rules that could affect Sinclair’s plans. Singapore is way more laissez-faire when it comes business freedoms.
    In scanning his blog, he was making some pretty strong comments about the Sedakus.  He notes  oil and gas deposits are a large prize .  China loves to home grow oil and gold.  That could be the battle we are seeing shaping up.   Japan is desperate for oil since all their nuke plants are down.  I wonder if Abe, a real hard ass and big America-phile, has the stones to go up against China if Obama throws him under the  bus. 
    I bet Obama probably couldn’t care less about Japan if it comes to blows. They are on a no-American debt diet too.
     KLUMMAC has a habit of making enemies for free but  I think he’s committed strongly enough to the TPP so that means China has to be in his corner.
    This 3 dimensional chess  game is giving me a headache.
      But Sinclair moving to Singapore is telling

  17. you got me there Ranger.
    You’ve ruined a perfectly sour-ass mood I worked on all this AM. Leroy and the Comanches Good one. Laughing all the way.
    Yep Charlie, add geography to my weak skills, right along with math

    I’m more inclined to seek out the Vegans than Asians. 
    easy to catch, easy to clean. 
    No guts or spine.
    Kind of like Progressives and Schmos. 
    They cook up nice on the barbie. 

    We’re having Thanksgiving dinner, served by a Vegan couple.
    I told them “NO Tofurky”
    Try that and there will be an industrial accident.
    He told me he’s a Vegan except when he eats meat.
    He’s also a gun homie so I can forgive him almost anything.
    Except tofu of any sort

  18. Copy that Ranger
      Like the vegans who eat meat, I’m a teetotaler except when I drink.  Butt parked in my easy chair, car keys in the other room, scotch in my right hand, I let the amateurs have their way.
      In my little town, Incline Village, there are two 2 sports.  Skiing, gambling and  competitive drinking.  Some clowns mix all three,  going at it 24 hours a day.   I know people who’ve had 5 DUI–in one year.  They know the local judge. He’s hammers it all day long too, and it’s not the gavel.

    • “In my little town, Incline Village, there are two 2 sports.”
      Then you proceed to list THREE! 
      Great Article, old friend! 
      I was prepared to be sceptical, but it is well laid-out. 
      Not to say they do not have help from the JPMorgues of the world…  :-/

  19. @AGXIIK …Let’s take it one more step. 
    What if China, not the Western Central banks, was the big short in the PM market?  What if Blythe Masters was actually telling the truth when she said JPM was acting on behalf of a client.  What if China was willing to burn some of it’s U.S. dollars by shorting paper gold at a loss, (What do they care they know their fiat dollar holding are going to become worthless anyways.) for the purpose of stealthily draining the West of her gold.  The purpose being to drain the West more so than to acquire more.  Because, I like you, believe China is holding far more gold than she publicly reports. 
    Odd thing about gold buying psychology is that when the price drops the public sells and when the price rises that’s when the public buys.  And what if you are the Western Central Banks and you have no way to stop this for fear China will go nuclear a.k.a. carpet bomb the markets with UST’s.  Jim Willie has opined as much and it makes strategic sense to me.  What say you?

    • Ugly Dog   That is a whole extra level and nothing surprises me.  If JPM gets thrown under the bus by Holder and Obama over their mortgage tranche problems, forced to cough up $13 billion and more, Dimon offended Obama by not being totally behind him during the campaign (hanging offense to the Progressive crew), if I was Dimon i would not hesitate in doing a big FU to the USD and Fed by dealing with the Chinese.  Blythe has gone dark.  Where is she? Maybe they were trading with the ‘enemy’, now a trusted ally in the world of precious metals.  JPM as a world wide bank is so covert and labyrinthine that Dimon must be a real brainiac to manage it all. Frankly, he’s screwed up many times—London whale, mortgage fraud, metals manipulation (cost JPM $410 million)   But these losses and fines are fairly miniscule compared to the money being made in all those dozens of off shore trading companies that are completely opaque.
      I think it was Lehman that had something like 200 plus when they collapsed, and Lehman failed in part due to the effect these firms were having on the company’s finances. They became an anchor that couldn’t be cast off in time.
      The CEO of Lehman was shifting many items off the books to these island corporations but the collective weight crushed all of them in time.
      If Lehman could do this in their opaque little shadow banking corporation then Dimon can certainly ring fence his trading with China or any other country. So long as it’s good for JPM I think he’d do it regardless of the consequences.  He’d screw Obama in a NY second if he thought he could get away with it. Banksters are running our government, not the other way—or so said Bernanke at his last sock wash.
        Maybe Blythe went rogue; is one of those 500 bankers who’ve bunkered in and working the back channels.
      As for using their USD and other reserve curencies, why not commit the equivalent of the FIAT shock troops, cannon fodder FRNS, to short a metal that the Chinese know from 5000 years of history has real lasting value. The Chinese invented paper ‘flying’ money. They wrote the book. What irony, as you put it Ugly Dog, what if they were using our FIAT to buy or convert our western gold to their vaults via 250 offshore corporations, and thus end up shipping half a trillion in USD reserves back to our banks via the indirect exchanges. Those who have the gold, makes the rules.
      Losses on the dollar would just be trading friction, sacrificing the paper Ponzi pawn dollars, just like the money laundering banks such as UBS and HSBC take 20% off the top while the cartels reaped the big money.  The cartels didn’t care. They ended up with their inventory, which ironically was valued in FIAT. No one, to the best of my knowledge, was laundering gold and silver like drugs and other ‘illegal items’. 20% was just the price of business.  The real profit was in the product.  The money and profit in paper FRNs was and is a transactional medium of dubious value when you measure that FRN stacks with a truck scale in ton lots. 
      It’s like the Joker in the recent Batman movie setting fire to a 20 ft high stack of USD bills. 
      He could care less about the money. He wanted Gotham City (a metaphor to the corruption) on its knees and Batman destroyed.  Money was just a light in the sky for the Joker.
      But no one was using this skim so much for gold and silver until maybe now, when many are coming to the realization that gold and silver are the real deal. The manipulation of PMs in the past was pocket change. Now we see $20 billion in gold traded in a day. Once that fat was in the fire, nothing else seemed to matter
      The race for cheap precious metals is on, with the smart money knowing time is short. Burning FIAT to get gold makes sense in that light. Ranger’s got me thinking 2 years is a time frame to see the paradigm shift. Lots can happen in 2 years. There’s a lot of FIAT to sacrifice and there’s still a good bit of gold left for the Hoovering.
      But 2014 China does their gold store report. That report will be fun to read

  20. Power Ball  I remember that note too
    A Congressman on a liner with the number 007.  Korean to boot.  Some much in those messages.  The Kremlin was in a serious lather over Reagan calling them out  “Evil Empire” ‘ We Launch in 10 minutes”   Reagan knew words had meaning.  The Soviets were scared and reacted the only way they knew.  Kill and destroy.
    I wondered about why that airliner. The passenger manifest with a Congressman.  Silver can get you seriously killed if you screw with its overlord.  Ask Kennedy.   That whole mess was buried quickly. That usually means something was afoot.  Don’t look to closely.  Someone may be looking back

  21. “They’ve used our currency reserves to buy up our gold.”
    And, in the name of flooding the US with cheap Chinese junk to make more paper profits, we LET it happen.
    “Which would you prefer to hold?   An unbacked FIAT currency or a gold backed currency?”
    This a “trick question”?  lol  Seriously, though, backing is one issue.  A much bigger one, IMO, is convertibility.  To be of REAL value, even a gold backed currency has to be payable in gold to the bearer on demand.  If it is, then it is real money since it can be swapped for gold or silver as stated on the certificate.  If it cannot be converted to metal on demand, then the value of its backing is considerably less.
    “$50,000 an ounce could become a real figure.
    I agree.  I have read a number of articles from people with considerable experience in the metals market and this figure derives from the price that gold would have to have in order to back all of the fiat that the US says it has printed.  This makes some BIG assumptions, among which are the amount of fiat printed and the tonnage of gold actually held.  So, IF we have 8300 tons of gold and IF there really is $16T worth of fiat out there, THEN the gold value has to be equal to about $60,000 per oz.  With assumptions of this kind, getting to within ±$10k per oz. of the final price isn’t that bad as a guesstimate.
    “The Chinese Central bank’s fingerprints are all over the gold manipulation story.”
    There are so many fingerprints on this story that it might make a shorter list to show those who are not involved in it.  lol
    Also, the US Gov has been involved in PM price suppression for decades.  This is much longer than the recent rise of China as a global economic power.
    “20,000 ounces would be worth $32 trillion.”
    No, not ounces but TONS.  See, I really do read your articles!  😉
    “Which currency will win?  Gold backed or BS backed.”
    There is more to this equation than fiat and gold.  Currently, the US Military is backing the US dollar with mucho firepower.  That is what is maintaining the US dollar as the World Reserve Currency… at the moment.  The thing is, this is not sustainable because our economy is not creating enough real wealth to sustainably fund our military at these levels.

  22. Aunt Karen says that there are 130 thousand tons of Gold at the B of H alone.  That’s how I’m rolling.  Gold is a barbaric relic.  Henry the I got everybody through dark times without any Gold.  We’ve got bitcoin.  We make money out of nothing. 

  23. Good morning Ed 
    Reading your notes and responses I am in agreement on the snap shot downward by 30-50%.  It could take weeks or months, or be like 1987, when the market cratered and the DOW went from 2700 to around 1700 in short order.  The DOW has taken several years to go from 7000 to 16,000 and yet it still climbs.  That isn’t normal.  We’ve not had a decent pullback even with bad news piling up.  The QE and POMO appears to be at work since the S&P earnings don’t support this  But Greenspan QE supported the irrational exuberance of the tech boom until sock puppet stocks failed to jazz the buyers any more.  
    I am more convinced that something harsh willl kill this market like a sucker punch to the jaw of the over the hill champ. 
    Jim Willie is relentless in his criticism of ZIRP and its effects on our economy.  The big companies buy back stock instead of investment in infrastructure and people. It produces mal investments and bubbles everywhere.  People stuggle for yield and the market has been the place for yield in the last 2 years now. 
    When the break occurs—next month, early 2014 or gasping for breath, it goes to 2015, it will break and so will the last money into the market.  Lunch bucket Joe will get in last, has he is now, throwing his IRA and last few dollars on this FIAT fed horse lottery until those who know how to play the game crash the market and take Joe’s last dollar.There’s some $20 trillion in retirement pans in the US and a goodly amount must be in the market today, searching for yield.
      Wealth reditribution is the game here. The top players are willing to let Joe play in the game until Joe’s got nothing left.  If I had been exposed to the wisdom of the authors and books that Doc put in a post about 15 clicks back, my net worth would be 10-100 times as much as it is now.  Missing opportunties are only one part of that.  Getting out at the right time would have been the big part. I played that hand misearable, thus the reason I went ‘all in’ to gold and silver to break that addition to poor trading techniques.

    20,000 TON TONS TONS–not ounces. I’m so used to typing ounces, that typing neural pathway is hard to jump out of.

    The Iranian shoot down was a real cluster bungle.  The story I heard was the Iranians were flying their fighter jets in the radar shadow of the jet, a nasty trick IMO.  We launched the missile to protect our warships.  The civilian jet was hit.  Whether we did this to show the IRG we meant business and would kill civilians, it was an itchy trigger finger or just a tragic error, I imagine the Iranians were shocked by that action. 
    I would have loved to be a fly on the wall when Kruschchev realized that our government was complicit in Kennedy’s assassination.  It must have shocked him we were capable of that gross an action.  Perceptions in a cold war are often just as effective as those in a hot one. I bet the Soviet leadership was equally amazed that we tried to wack Castro with a poisoned cigar and one Marine sniper could kill a president from that distance. Uneasy lies the crown. Even commies are not invulnerable. We play for keeps too.

    Wouldn’t it be ironic if we did have 10,000 tons or more in our vaults.  We might find ourselves the beneficiaries of a gold back currency again.  If that was the case we would have lucked out. I doubt if that is the case. If it was, someone would have written a book on it and narked out the deceivers in this gold game.
    It brings me back to the notion that those who know will never tell. Those who were inclined to tell were killed.   The lure of gold is seductive and IMO everyone has their price: even if it’s not in  the form of gold.
    RGR you got me.
    I left that in to see if someone noticed it.  Ed caught me on the 20,000 ounces vs tons.  That was one of my typical mistakes Like Singapose and Shanghai. 
    So I leave the small but deliberate inaccuracies to pull readers off my trail.  I should know better.  This is a preceptive group; difficult to put something over on anyone.
    As for tofurky, my vegan friends cooked a real turkey and were kind enough to send some back with us. 
    I am a turkey addict— probably explaining why my stock investments do so poorly.

    • AGXIIK,
      Your estimate of 20,000 tons owned by China actually jives with with my own thoughts of what they hold. I also think think that the US Treasury (not the Federal Reserve) actually hold about 12,000 tons (I include the GLD physical stock). As for everyone thinking that GOLD being revalued once, to USD50,000 (and up), will cause massive price inflation – IT IS NOT SO. Gold is a metal that is not vital to any industrial use! It is very limited in quantity and does not corrode – which makes it very useful for long term holding. The price of gold (in any currency) does not affect the price of all other things, which makes it the perfect vehicle for use as a Storage Medium of Very High Value.
      If an offer by People’s Bank of China (or the BIS, Bank of International Settlements or the US Treasury Department) is made to buy physical gold at $50,000 per ounce (and sell at 0.5% percent more), what will be the effect? It just made everyone who owns real physical gold, a bit richer, depending on how much each one has. If they offer to buy gold at $1 million/oz, the US Treasure can afford to pay off all the outstanding $17 Trillion dollars of debt, with much more left over for deficit spending for the next 20 years.

  24. Hi ALL,
    I very much appreciate all the comments here in SD, especially AGXIIK, Ed_b, Ranger, even if my english is not good enough to understand all the nicety of some sentences. There is a high level of smart and clever people here, i read SD 5 or 6 time a day. Hope this will continue for long.
    I have read 100′ of articles everywhere in the web and 1 question is not clear for me. Will silver be really in shortage in the next decade ? Will silver price increase? Because since it’s almost a by product, we can guess that until will have some mining (copper, lead, zinc etc…) we will have some silver also, and even if the silver price is under the product cost, since the main metal is extrated, the silver is also extracted for almost free (the costs are for the main metal)
    I believe the price will increase in the next decade. If not will be for my kids.
    That’s my second post, hope will be not deleted like the first one. Sorry for my poor english (I’m French). I keep stacking silver. Bought 2x MonsterBox Philarmonics (500 x 1 Oz coins each) this week since that’s look a bargain now.

  25. Hi Max  thanks for weighing it.  Your English is just fine as you parlez vous in the ville.  
     About 1,500 years  ago my ancesstors migrated from  the province of Gascony, ending up in Scotland.  With a middle name that’s completely French and a last name  hark’s from France back in the middle ages.  
    Just saying. I guess that makes me  a Franco-phile. 
    Your question is something we talk about often. What about that silver that comes from base metal production?  70% of silver is derived from zinc, lead et al.  These are highly valued commercial metals that can’t be done without unless the world comes to an end. 
      China and other countries have stockpiled millions of tons of base metals and, like any good prepper, even countries seek stocks of these metals if they foresee shortages.
    China is questing world wide for base metals along with gold and silver mines, buy much of the production of some African countries, buying the resources with their US Dollar reserves.  They don’t seem to be able to get their fill.  Demands of a country with 1.3 billion people, all seeking a better life tends get focus the attention of the leaders to see to it they have massive supplies of strategic metals.  The winds of war are blowing, east and west, so metals of all types are going to in demand, base and precious.  Weapons of war demand the greatest stacks of precious metals, more than consumer goods pretty much any day of the week.
    My thought is that we are seeing some supply pinches in the consumer phyzz.  Doc spoke to that in his pod cast with Eric today.  People in the street see it with the US Ming shutting down for weeks at a time, get close to a  force majuere scarcity.
    My thought usually tend to seeing the nervousness and fear that people feel when they see their currencies devalued world wide. We’ve not tipped in abyss yet. Most people in most countries haven’t gotten the email that their currency just imploded. That will occur in about 1 nanosecond. The race to phyzz will be epic.
    There is absolutely no accident that China is buying and acquiring about 1.2 times the entire world’s production of gold (2,600 tons).  India is right there with them.  Between those two countries it’s estimated they will also acquire about 35-40% of the entire world’s production of silver (300,000,000 ounces) or so.
    When these prepper nations start piling on to our two favorite metals, it’s best we take notice. If they know something we don’t know—such as something this wicked this way comes, or just preplanning for their own national wellbeing, I’ll be a buyer. When the PM barometer starts falling, the wise prepper takes notice.
    Or as Charlie says, Keep Stacking

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