bill holterWe 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.

 

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Submitted By Bill Holter, Miles Franklin Ltd,:

“We will go to bed with Gold at $1,500 and wake up with it $4,000 bid…and nothing offered”- Reg Howe (many of you know him, some of you don’t but we all owe him a debt of gratitude).  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.  But how can I say this?

All you have to do is look at the supply and demand of both Gold and Silver.  We know now that “new” supply has not met demand for years, at least 20.  We know from export data from the U.S. (courtesy of detective work by Eric Sprott) that 4,500 tons of Gold has been exported from U.S shores since the mid ’90′s and that just the first 2 months of this year 130 tons were exported (courtesy of Harvey Organ’s detective work).  But how can this even be? The U.S. only produces just under 250 tons of Gold per year.  How could we have exported 130 tons in Jan. and Feb. if our mines only produced 40 tons?  How could we have exported 4,500 tons over the years if we only produce 240 tons per year?  We know that the mint uses Gold, jewelry has been produced each and every year and so has industry for various applications.  So how is this possible?
Where did the Gold that we know was used and are told was exported come from if the “total” is far and beyond what we produce…every single year?
  Let me backtrack just a little bit.  We are also seeing big movements of inventory reportings.  The COMEX has been bleeding down both Gold and Silver inventories as have the ETF’s GLD and SLV.  Deliveries are being made and inventories are declining at the same time that we are being “told” that no one wants Gold or Silver based on their price actions.  We are being told that they are THE most hated http://www.zerohedge.com/news/2013-05-18/it%E2%80%99s-official-gold-now-most-hated-asset-class investments on the planet and the prices are crashing.  But why then are physical prices trading above the paper prices and who in their right mind would be taking deliveries?  …And “why” would they be taking deliveries in such big portions?
Add to the above the anecdotal evidence from India that they are now only getting 10% of their orders or the Shanghai exchange making huge deliveries through April and now in May they have delivered almost nothing.  Huge demand in China, India, Dubai and the UAE, throughout Europe and in the U.S, did I forget anyone?  Or what about ABN Amro informing their customers that “no more physical deliveries will be made”?  Why are there premiums to get the real thing instead of just being “happy” with paper receipts?  Why did Germany ask for their Gold back and why are the Swiss doing a referendum on the same?  There are many more pieces to this puzzle but you get the gist, something really weird (fraudulent) is going on here because the numbers don’t (have not for years) add up and there are huge movements of inventories in the face of exploding demand (and crashing prices) all over the world.
Something big, REALLY big is happening behind the scenes that we are not “privy” to but…you don’t have to be a rocket scientist to know where this s going.  As I started this piece with a quote from Reg Howe “you will go to bed with Gold at $1,500 and wake up with it bid at $4,000 and none offered”.  The point is this, something has and is changing with the supply demand situation in the precious metals.  We know that demand has exploded, inventories are being drawn down and that investor appetite is to have the metal delivered, no more “I think I’ll just leave it with my ‘trusted’ custodian”.  No, it is now cash and carry and many of those who had previously purchased are only now getting around to the “carry” part.
So, in case you were wondering what the “answers” are and what exactly has changed I will tell you that only the “insiders” know for sure.  Well, that’s not exactly correct but the “insiders” have apparently seen the bottom of the barrel with their own eyes.  “We” on the other hand can only deduce and logically “know for sure” based on all of the evidence.  I think that it is safe to say that the game is coming to an end.  The U.S. who has acted as “custodian” for much of  the world’s Gold since WWII is running out of Gold to deliver.  Sadly, if you put all of the numbers together on a piece of paper you can deduce that we are probably not only running out of our own Gold…but also Gold that we were entrusted with as custodian.
I will leave you with this one thought.  I’m sure that you have heard about the toilet paper shortage in Venezuela.  What do you suppose the value of one roll of tp is worth to a Venezuelan?  …And if the government fails to obtain more like they say they will, what then?  What would the value of one roll be then?  $5?  $10?  50 DOLLARS?  Or…to someone who is rich, really rich, could a roll of toilet paper really be worth $100?  Good questions huh?  Wait, not really, the real question is whether someone would part with their last roll of toilet paper for 100 U.S. American Dollars!  Now ask yourself, “in a financial system that is collapsing where banks are closed and ATM’s and credit cards no longer work…would you sell 1 ounce of Gold for $4,000?  Or will that maybe be the bid but…”none offered”?  Regards,  Bill H.
  1. Reality tells me tht it will go up when they decide it should go up – and it will go where they decide it will go. We get confused and think “they” are a small group. Let us not forget that “they” own EVERYTHING – all banks, etc. They will want gold to go up so they can direct us towards their next monetary scheme.

  2. Many members on here are concerned about the ‘power’ of TPTB to dictate when or how the metals move. I’d like to contribute some real life experience from Zimbabwe’s currency collapse.
    At first it can seem as though we are all at the mercy of the system and those who run it. In Zim the price of the Zim dollar to external hard currencies was carefully controlled, and openly so. So was the price of many foods over time. However, over time the people who NEEDED to conduct commerce found ways around this. If the official price of X commodity is dictated at say 100 by TPTB, then someone who NEEDED X commodity or Y currency offered 100+premium. Over time the premiums grew for everything. Shops had empty shelves and there was no foreign exchange in the official ‘channels’… but alternative Channels were awash with anything you desired at a different price.
    The emergence of alternative channels in Eastern Europe and elsewhere is very well documented so I wont bore you with more details. HOWEVER if you don’t NEED to swap your gold for FIAT hold onto it. Everything fundamentally tells you that one day someone who NEEDS gold to shelter from confetti USD is going to offer you much more than it is worth now or even whatever the official/paper price is if it continues to get suppressed.
    The word here is NEED. When you feel panicked ask yourself about your NEEDS today. Right, you dont need the fiat. Focus on how you will pat yourself on the back one day when someone else NEEDS your hard asset when the currency is loosing value at a rapid pace. I can assure you that when the time comes what the fiat value of your wealth is will not matter. What will matter is how many oz of hard currency you have.
    *The NEED to be right or validated in your choice of gold/silver over fiat does not count as a ‘NEED’. LOL.
    BTW in my own humble opinion I think the bankers are going long with us, its easier money for them than staying on the short side and risking a real default. After all remember that the bankers are in charge, and getting everybody to let longs go and go short just when they are loading up long seems the easiest way out of any potential ‘default’ on physical.
    *Just my opinion.

    • @ ZimSilver If you ever start a blog about your experiences with hyperinflation in Zimbabwe I should would be interested in reading. Tiger

  3. The huge cracks are everywhere you look….and it’s starting to resemble the Grand Canyon with the level of corruption and fraud. If you can’t see this you are either willfully ignorant or simply a troll. I’ve seen plenty of both recently on Mish’s board, ZH and right here. It’s utterly sickening to have to defend gold and silver ownership in this toxic and fraud ridden environment. The FED, UST, COMEX, bullion banks, GLD and SLV have literally destroyed the gold and silver sectors. Anyone disputing this should be treated with derision, scorn, and avoided like the plague.

    Good luck to all and keep stacking.

    • @BayofPigs
      I’m not sure why people can’t see a complete wealth transfer from paper to physical.
      There is no reason why a complete switch couldn’t occur. In the same way, I still wonder why it cannot be seen that silver has the potential to be 1 to 1 gold. As it stands the 9:1 mining ratio is completely achievable. Plus there are always over shoots.

    • “It’s utterly sickening to have to defend gold and silver ownership in this toxic and fraud ridden environment.”
       
      It’s also utterly unnecessary, IMO.  Look, man, one either believes in REAL money or one does not.  Changing minds is very hard to do and there is virtually no upside to it.  I don’t try to sell anyone on the idea of owning gold and silver.  I am not in that business and I definitely do not need a bunch of people running around in a SHTF scenario remembering that I probably stack because I have harped on the subject to them. They may not try to take it but they WILL blab to someone else who might.  Only those in my family who NEED to know, know.  Friends, shirt-tail relatives, neighbors, and anyone else simply does not need to know this.  Loose lips sink stacks.  lol
       

  4. On the main Belgian craigslist type site, there are 2 tubes of Maples being offered. And that’s it. And hardly anyone bidding. Very strange. Seems the pampered western nations are the slowest on the uptake here.
    German eBay is also really slow. Stackers of course rarely offer, but strangely they are also not buying. waiting for $15 silver? Or all-in past their shoulders? That was my reason when we crashed and I did not buy. I was too all-in to join.

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