collapseWe are told by the MSM that the sale of $650 million worth of Cypriot Gold has just caused a 3+% drop in the price of Gold (and more than 5% in Silver).  Is this credible?

The Fed is creating $85 billion per month or close to $3 billion per day, 24/7.  The Cypriot Gold at is only 1/5th of what our Fed prints EVERY day!  The U.S. Treasury borrows some $4 billion per day to keep our well oiled economic engine running, ALL of the Cypriot Gold is about 1/7th of what the U.S. borrows each and EVERY day.  Last month, China imported from Hong Kong alone some 97 tons or roughly 7 times the amount of Cyprus’s total Gold holdings, the Cypriot Gold is a mere 4 days worth of imports.  One other way to look at this is that 14 tons is about 6 tenths of 1 percent of the global production of Gold for 1 year…it is nothing.  No, $650 million in today’s world is LESS THAN NOTHING!

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By Bill Holter, Miles Franklin Ltd,:

I had not planned any commentary this weekend but with Gold “down” $65 per ounce I will put my 2 cents in.  As you know, I called “bottom” about 5 weeks ago the first time we hit $1,550 then again about 2 weeks ago on the retest of those levels.  They were broken decisively Friday.  The “reason” for Wednesdays sell off of $25?  And the reason given for today’s $65 by the CNBC know nothings?  ……..Cyprus!

Yep, Cyprus may sell ALL of their Gold and swamp the market!  This weeks price action is merely “front running” these sales in order to get out before the price is CRUSHED!  But wait, Cyprus has less than 14 tons of Gold…this is worth some $650 million (yes, with an “M”) yet they have an updated shortfall of some $23 billion (with a “b”) so how does selling their Gold fix their problems?  Well obviously it does not even amount to a drop in the bucket as it is only 3% or so of what capital they will need to raise!
Let me put this into perspective for you in a couple of different ways.  The Fed is creating $85 billion per month or close to $3 billion per day, 24/7.  The Cypriot Gold is only 1/5th of what our Fed prints EVERY day!  The U.S. Treasury borrows some $4 billion per day to keep our well oiled economic engine running, ALL of the Cypriot Gold is about 1/7th of what the U.S. borrows each and EVERY day.  Last month, China imported from Hong Kong alone some 97 tons or roughly 7 times the amount of Cyprus’s total Gold holdings, the Cypriot Gold is a mere 4 days worth of imports.  One other way to look at this is that 14 tons is about 6 tenths of 1 percent of the global production of Gold for 1 year…it is nothing.  No, $650 million in today’s world is LESS THAN NOTHING!
So, we are told that the sale of $650 million worth of Gold has just caused a 3+% drop in the price of Gold (and more than 5% in Silver).  Is this credible?  And if it had any credibility at all, this is Gold being sold, not Silver so why would Silver, platinum, palladium and even copper be sold off?  I will leave you with a few questions that I won’t answer because the answers are too obvious.  Do you really believe that holders of physical metal would part with their metal if they knew something bad like a system wide banking failure was imminent?  Or a (another) sovereign was going to default?  Or some whackos were going to start lobbing nuclear weapons up in the air?  Would physical holders sell (in panic fashion no less) because a “treasure” was found or some new mine opened that had 14 tons of Gold?
Do you see the lack of logic here?  Literally $ trillions in paper monies are being put into the system and Gold is not only finite, it is scarce to begin with.  More physical has been purchased than produced over the last at least 20 years so we know that “inventories” are shrinking.  Do you not think that the Chinese would like to take an extra 14 tons into their hoard?  How about the Indians?  There are reports of shortages of Gold in south India, wouldn’t they like this 14 tons to alleviate the shortage?
Or, maybe I’m reading this thing the wrong way.  Maybe investors are selling their paper Gold because they suddenly realized that it has no backing.  Maybe they will sell it all the way down to its intrinsic value…ZERO!  All I can say is that in the past whenever Gold was sold off in violent fashion, we soon found out about another BIG problem that was brewing behind the scenes.  This is my bet, something big, REALLY BIG is collapsing out of sight of the public’s eye and we will only learn of it after the fact.
By the way, when the markets close there will be a period of time where no one has a clue about what the “price of Gold” is.  The only thing you will know is whether you have it or not.
Regards,  Bill H.

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    • Did the words credible and cnbc ever go together. Not like Cramer and twat.
      I think Bill is right, behind the scenes panic has set in and they are desparate.
      Looking forward to this week, well a few hours time actually!

  1. Your article makes too much sense.  There isnt a country on the face of the planet that is worried about Cyprus’ gold being sold.  China, in the not too distant past was scolding the U.S. for its monitary and finacial doings.  Why are they being so hush hush about it now.  For Russia to not be pointing a finger at the west is just unheard of.  Everything is being played out, one hand at a time. By the looks of things, Japan might as well have thrown in their hand.  Europe is on the verge of one big final bank holiday, along with scattered countries around the globe. 
    I dont believe this is an “us vs them” game betweeen nations.  Russia and China are not going to cry if they see the U.S. falter and become less than a third world nation controlled by the elitists.  That is where the entire scam runs into a snag.  Nowhere else on the entire globe does a problem arise, except here in the U.S., where a people have enough scrupples to say… what the frick is going on?  The mainstream media is doing an outstanding job of misrepresenting the financial crisis that is unfolding before their very own eyes.  Our elected officials are making a profit off the stock market highs with their legal insider trading ability, so they arent going to be looking out for our best interest.    
    When our financial wizards here in the U.S. call for something to happen that they can see through their own dd.  There is not a single one of them that would make a public fool of themselves by releasing info that is plain as the ace of spades, without knowing what they are talking about.  They are professionals.  Unfortunately they are up against a government backed manipulation that not even these guys can predict.  
    China will remain content until their own interest rates start causing concern.  Our concern is going to be to allow interest rates to rise, without letting them get out of control.  That I do not think can happen.  That is why the U.S. dollar has to be protected by players throughout the globe.  Unfortunately we are loosing players that will play the game on our side. 
    And that leads to three things… a dollar that is worth less and less while it sits in our pocket, an economy that cannot allow real money, being gold and silver to become desirable and third, a society divided between being government sheeples and people that are willing to take a chance on surviving in order to continue our lure of the American dream.  The powers that be are going to do their best to break the wills of the non sheeples with any means possible.  Somewhere along the way, their greed is going to be their downfall, and that will probably lead to war. As for now, I dont see the naked short selling stopping until all the players are on board to hit the long side.  And why stop now, every dollar they drop the price on the way down, is a dollar made.  It makes the dollar look good and I guess they will continue to play into the hands of the East as they continue to buy.  So they will make all the money they desire while the public looses its desire for gold and silver.  At least that will keep them out of our bank accounts for the time being.

  2. Please tell me this is a joke. The amount of $650 million only represents the raw physical product, not the financial worth on the market. Think of fractional banking where gold is M0 money. In the heady make believe leveraged world of banking, I would say the 650 million could be multiplied by 10 by the time it hit the market. The big boys know this, so put out a sell call, this deflates the supply.

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