The U.S. (the West) has wanted low gold prices as a show or display that their fiat currencies were “good”.
Now, as the curtain goes down on the West, China will want a very high gold price in yuan for when the curtain rises again. A gold price maybe even higher than it should be will give the PBOC more power initially AND will allow them some room to inflate and grow.
As for the dollar and other Western currencies, they will be revalued downward versus the yuan which gives gold priced in dollars- a double whammy of repricing.
“This is going to be an overnight or over the weekend type of event where you have what you have on a Friday and you wake up on a Monday morning and you can’t trade anything and you’re locked in to your position.
So it’s absolutely imperative that you have what you WANT to have, because you won’t have a chance to change it…
Gold and silver are THE only monies out there that are not “credit based” or derive their values via the credit markets … markets which will ultimately will be closed!”
China and Russia are fully aware of the U.S. falling further and further into a weakened position, that time is running out before a financial collapse, and that a wounded animal often strikes in desperation.
I believe the process may have begun this past week.
Pravda posted an article over the weekend speculating China will very soon announce their gold reserves. The article
I have said all along I believed China would announce their holdings probably this year.
If this is the “pre pre announcement”, it is a very big number and one I believe only as an opening salvo.
Should China themselves make this announcement, please understand the “golden nuclear bomb” this would actually be.
The financial system of the West will be destroyed overnight!
There is now mounting evidence and undeniable proof that the world is actively preparing for economic life after the death of the Dollar.
Collapse of our current financial system is clearly coming. The question is, how bad will it get for those of us trapped in the United States, trapped holding only Dollars?
“My hope is that is doesn’t get this bad, but my suspicion is that it will get worse, where you have no access to ATM’s, credit is completely shut off, we may have power, water, electricity supply problems. What I’m going to tell you is, if you know how to, or can learn how to live like Davey Crocket or Daniel Boone, we may go through a period of time where that’s the case. I hope I’m wrong, I fear that I’m right.”
“We will go to bed with Gold at $1,500 and wake up with it $4,000 bid…and nothing offered“- Reg Howe
This quote by Mr. Howe sounds crazy. It sounds impossible and sounds like the rantings of a raving lunatic right? Well, no it doesn’t. Actually, I believe that something resembling this will not only happen but has to happen. Logically, mathematically and just pure structurally an event very similar is locked, loaded ready for the trigger to be pulled.
Every market is going in the wrong direction in preparation for what is coming. Yes I know, this is always how it works when bubbles are being blown. Money is pouring into bonds in particular, stocks are being propped up and margin balances swollen, people are also being prodded into “selling” their Gold (paper obligations).
As I see it, we are headed directly into a brick wall where everything just stops. “Just stops” as in all markets are closed and you have what you have- which will either be marked up…or down on the day that the music starts again.
What we have just witnessed in the gold and silver markets was merely a pre-shock warning and a “roadmap” if you will to what is eventually coming. A mad rush into the metals can begin at any time for any number of reasons. The list just keeps growing as does the fiat outstanding that will do the “chasing”. The problem is that as just illustrated, supply has no depth whatsoever and the bottom of the barrel has already been exposed. The next time a wave of buying hits this market (not that the current wave is done) may be the last time that the demand gets met by supply. Once supply is gone, it is gone. This is not like the banking system where a bank runs out of money and calls their central bank for more. It takes real sweat, labor, equipment and capital to dig Gold and Silver out of the ground, “supply” doesn’t happen with the wave of a magic maestro’s wand.
When you look at the math, especially the supply/demand and inventory/delivery “math” there is only one question that remains. The question is not whether the PM’s are grossly undervalued. It is not whether supply can meet demand. It is also not whether known inventories can continue deliveries at the pace of the last couple of years. The only question which remains is “when”. “When” does the current unsustainable and lopsided (soon to be proven fraudulent which yes, includes “intent”) business model of the precious metals market blow up in a default?
When does it end in the same fashion that every banking panic in human history has seen?
The CFTC IS the watchdog for abuse in the options and futures markets and Friday April 12-Monday April 15 were beyond obvious as to what was done. Reportedly 1,000+ tons of paper Gold were sold in less than 8 hours of trading. This is 32 million ounces. This is 40% or more of ALL Gold produced on the planet in 1 ENTIRE YEAR! “Who” in their right mind would sell in this fashion? Who in the world even holds this amount of Gold? The answer in case you are wondering is NO ONE (other than central banks and THIS may not even be true any longer)!
Forget completely the nuts and bolts, look at this through the eyes of an 8 year old. The price of the physical metal is different than the futures prices. ONE of these two must be wrong by definition as they cannot both be correct. The “price” is and has been “set” by the paper markets. The “tail is wagging the dog”, this is more than obvious. The futures markets were set up originally to create liquidity and facilitate suppliers hedging and speculators speculating. This has gone on for years now (at least since 1996). Obviously “something” isn’t right when one market has one price and the other another price so …what to do? Just sit back and wait…for the inventories to be wiped bare.
How does Bart Chilton and the rest of the regulatory crew explain the 2013 instant replay of 2008? Price gets crashed from “sellers” yet what supposedly was sold can only be bought at a 30% premium…IF you can find it at all? We are still waiting…and now “Bitcoin” is on the front burner I’m sure that Silver (and Gold) will not be addressed until AFTER exchange defaults occur. For that matter, they won’t be reported on after the fact either because we will then have bigger, MUCH BIGGER problems facing us…like where the next meal will come from.
The “paper smash” that was surely designed to SCARE investors away from the metals has done exactly the opposite. It was in retrospect a MASSIVE MISTAKE! Previous to take down 3 weeks ago we believed that the physical market was “fragile” at best, now we have proof that we were correct in this analysis. Now the question becomes, “can they put this back into the box?”. Can they calm the physical precious metals markets? My guess is that they cannot unless…one of two or both of two things happen. Some way, somehow “sufficient supply” must show up in the cash markets OR the price must rise (and by rise I mean dramatically) in order to ration out the existing supply.
Nothing causes a buying panic greater than a shortage. In other markets a shortage may be just an inconvenience, a shortage in gold and silver will in itself actually create higher demand due to their being Giffen goods.
A complete and total RUN on physical metal supplies and inventories has never ever been more ripe than it is now. “Is this it? ..or can they put it back into the box until a later date?
The very real danger now is that what has been started begins to snowball.
The one chance that you have to survive what is coming is to have wealth that knows no borders, is recognized globally and cannot default. It is wise to own this in as many forms and fashions as possible with as few intermediaries between you and your wealth as possible. Don’t trade it, don’t use margin…just OWN IT!