Gold and silver will go into hiding. People will not sell their gold or silver for fiat currency…
Is zero reserve requirement at the banks a sign we are getting close to the end of the Ponzi scheme we have been living through? Financial writer Bill Holter says, “I’ll answer this with a familiar saying, and that is ‘desperate people do desperate things,’ and that’s pretty desperate. How safe is a banking system that has no requirement for reserves?”
This all circles around to gold and the increasing demand for physical ownership. Holter says, “There is huge demand for physical gold. The amount of gold standing for delivery has increased almost every single day since first notice day. . . . If you go back two years ago, that never ever happened. . . . It looks like the Bank of International Settlements (BIS) is supplying the market to tamp down the price. We don’t know when an actual failure to deliver event is going to happen, but the system has gotten so large that once you get a crack in the credit markets or a question of the credit worthiness of the U.S., you will see capital flow to gold and clean that market right up. Once that does happen, gold and silver will go into hiding. . . . People will not sell their gold or silver for fiat currency. . . . People are waking up to the fact that there is a massive problem in the credit markets. In the past, the safe haven has been the dollar and Treasuries, but if the problem is the dollar and the credit worthiness of Treasuries, what’s the next step of protection? All capital roads lead to gold. That is your safe haven. Gold is the ultimate safe haven. It’s God’s money.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Bill Holter of JSMineset.com.