The price of gold is under strict control right now, but here’s what’s coming…
(by Half Dollar) An actual gold advocate (not Judy Shelton) wrote a rather interesting article the other day, and two phrases keep sticking in my mind after I read it, and both phrases are in relation to the US Dollar:
- Imminent collapse
- Sudden loss of value
The commentary section of Kitco is mostly made up of inane comments regarding the evolution of the price of gold. Clearly, Kitco is deathly afraid of posting any realistic appraisal of the movements in gold’s price.
Actually, there is no reason at all to read Kitco’s comments, for the gold graphs speak all too clearly of what is going on: the price of gold is under strict control by The Powers That Be, because a surging price of gold would announce the imminent collapse of the value of the US Dollar.
The clue to understanding the present artificiality of the price of gold, lies in the simple consideration of the meaning of what is plain before our eyes.
The recorded price of gold does rise vertically, from time to time, as investors hasten to purchase gold at the lowest possible price.
But there is a daily anomaly: the price of gold regularly falls nearly vertically in value, either in one great step down, on in a series of vertical smaller steps.
Why is this an anomaly? The reason for considering vertical falls in the price of gold as an anomaly – i.e. something unnatural – is that true market sellers of gold invariably want to obtain as many dollars for their gold, as possible, and therefore, market sellers will always sell their gold slowly, in order to obtain the greatest amount of dollars for their gold. True holders of gold, who wish to obtain the greatest possible quantity of dollars for their gold, sell slowly, and never dump their gold in as short a time-frame as possible.
Dumping the possession of gold in such haste, crashes its price – something that true sellers of gold would never, ever do.
Therefore, it is quite evident that the seller of gold that crashes the price down in a vertical fashion, cannot be interested in maximizing the amount of dollars which he obtains through the such an operation.
Such a seller can only be a government or group of governments who are fighting a rising price of gold, in order to defend the value of their fiat currency or group of fiat currencies, for a rising price of gold announces a failing fiat currency.
Very naturally Kitco’s commentators do not tell us this, for if they did, it would mark the hasty disappearance of Kitco.
Hugo’s article goes on to show a whole host of Kitco charts showing the vertical drops in price that we’ve all seen before.
Hugo concludes with this, however (bold added for emphasis and commentary):
However, when the King of Fiat – the Dollar – suffers a sudden loss of value in terms of other currencies, or evinces a persistent tendency to fall in value, at some point, it will dawn upon investors that owning Dollars (and other fiat currencies) is a losing proposition, and they will rush, in mass, to acquire whatever they can of the yellow metal. Official selling to break the price will, at best, only slow down its rise and present a momentary opportunity for panicked investors, to acquire some gold – far less than they might have acquired, had they not been so blind to the danger.
At this point, the price of gold will be rising by hundreds of Dollars an hour.
After the dust settles on this episode of World History – that will be another story.
So, why am I bringing up this article?
It’s simple: Hugo Salinas Price is 88 years old, he was born in 1932, and he has been warning about this for a very, very long time.
Many others are warning about it too, myself included, but there’s just something about those two phrases that give me the feeling that we are very close to that point, and there’s a specific reason for the feeling too: The Zero Hedge type groupthink on Twitter.
That is to say, the mainstream media is talking about inflation expectations picking up, but they’re a day late and a dollar short at best, and propagandists at worst, and the so-called “FinTwit” community (financial Twitter) is either in the “this is deflationary” camp or the “the Inflationistas are wrong” camp.
Here’s my point: Both FinTwit camps are wrong.
As far as the Deflationistas go, well, if you’ve got all of your money wrapped up in these unbacked, debt-based fiat currency modern “financial markets”, then you’re doing it wrong anyway.
Of course, the Deflationistas will be right, only, not in an “epic stock market crash” kind of way, for a stock market that is rising but rising slower than the rate of inflation is, by definition, deflationary for the stock market in real terms.
The Inflation Skeptics, because they’re not really Inflation Deniers, nor are they Inflationistas, like to say things such as “money velocity is down” or “the inflation trade is overcrowded”, but even if it is true that money velocity is down, and even if the inflation trade is “overcrowded”, and I’m not so sure that either of those things are true, here we find ourselves pondering the two phrases from Hugo Salinas Price.
In other words, money velocity can spark in an instant, which would be the sign of an “imminent collapse” in the US dollar, or, alternatively, a “sudden loss of value” in it.
Those looking for signs that money velocity is picking up will likely miss it, especially if the Fed and the US government have been playing funny business with official statistics for decades.
Moreover, inflation and ultimately hyperinflation will affect every single person on the planet, because it’s the world reserve currency we’re talking about, so it’s kind of hard to have too many people on one side of the boat when there is only one side of the boat to begin with.
Personally, I think the crack-up boom has already started, and it has started in the United States and will spread outward, not the other way around.
For people often say, “wait until the flood of dollars come back to US shores”, but I say ” wait until the flood of dollars is unleased on the world in a mad scramble to buy anything and everything not nailed down”.
So with all of that said, If I’m the right in what is about to happen, the US dollar has about one year left, give or take, so I’d say that yes, “imminent” and “sudden” are good words.
Furthermore, it’s time to ditch both the Deflationistas and the Inflationistas because, well, it’s downright perplexing just how much the people still don’t get it, but what is happening is that we’re all about to become Hyperinflationistas!
Which brings me to one last point: Hugo Salinas Price is 88, he was born when gold coins were still a thing, and he was well into adulthood when silver coins were still totally a thing, so if he understands one thing, he understands sound money, but Hugo Salinas Price also has the distinct experience of living through the “sudden” and “imminent” collapse of the Mexican Peso in the early 1990s.
Gold & Silver: The complete opposite of “sudden” and “imminent”.
More like “everlasting” and “timeless”.
Well, it’s kind of like the wheel, but it’s not really an invention at all, and oh yeah, it’s square and doesn’t even roll.
Do the Hipster Bitcoin Fanboys even know anything about an actual currency collapse?
Perhaps poor Venezuelans or Zimbabweans do, but now, since it’s the US dollar we’re talking about, what’s that slogan again?
Is it “we’re all in this together”?
Gold & silver will stand in their rightfull places.
Bitcoin, however, will not be standing at all, and it’s going to be hilarious watching all of the so-called “analysts”, “experts”, “gurus”, and “pundits” scurry into hiding, although I’ve got to admit, I will feel sad for some of them because they’re otherwise really smart and great people, seduced by The Beast and simply too deficient in math, money, or technology to know any better.
Hopefully the winners will be able to cash-in on their winnings from gambling in the rigged casino, but I doubt it.
Thanks for reading,
Paul “Half Dollar” Eberhart