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Author Topic: Why gold is falling even as global economic fears intensify  (Read 8290 times)
loco
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« Reply #75 on: April 18, 2013, 01:25:00 PM »

I was asking Tedim, not you 24KT/JaguarScams.
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« Reply #76 on: April 18, 2013, 01:43:44 PM »

I was asking Tedim, not you 24KT/Jaguar.

Well aware that I am that my responses to your questions would be fully appreciated, my response though quoting you was infact intended as a response to the board. However, you're welcome. Roll Eyes

Stop with the name calling already. It's pretty stale.
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« Reply #77 on: April 18, 2013, 02:13:34 PM »

Well aware that I am that my responses to your questions would be fully appreciated, my response though quoting you was infact intended as a response to the board. However, you're welcome. Roll Eyes

Stop with the name calling already. It's pretty stale.

No name calling.  Your "business" is a scam. 
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« Reply #78 on: April 18, 2013, 02:38:49 PM »

In other Global Currency Trends ...   Cheesy

Ambush at the Comex Corral
Darryl Robert Schoon





Central Banks collude with investment banks to force down the price of gold

Prediction is an art. Heisenberg’s Uncertainty Principle is as operative in the realms of the unknown as well as in the known. But, sometimes, predictions are a slam-dunk such as the large number of put options placed on United and American Airlines in the days prior to 9/11 through Alex Brown Deutsche Bank, an investment unit with close ties to the CIA’s Buzz Krongard.

Note: Alex.Brown’s former Chairman, Buzz Krongard, was appointed Director of the CIA in 2011. Buzz Krongard’s successor, Mayo Shattuck III, who oversaw the purchases of the 9/11 puts resigned from Alex Brown Deutsche Bank on 9/12. For the story of the 9/11 puts, see Mark H. Gaffney’s series in the Foreign Policy Journal, Black 9/11: A Walk on the Dark Side.

In January 2013, analysts at Goldman Sachs predicted gold would fall to $1200. That Goldman Sachs would make such an apparently lucky out-of-the money prediction given the recent ambush of gold at COMEX wasn’t luck at all. Like 9/11, the COMEX ambush was planned and executed with military precision.

In his article at Sharps Pixley, Gold Crushed by 400 Tonnes of $20 billion of Selling on COMEX, former gold trader at NM Rothschilds & Sons and Credit Suisse, Ross Norman, describes how the ambush was carried out:

The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract (see below) in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level... the line in the sand.

Two hours later the initial selling, rumoured to have been routed through Merrill Lynch's floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading.

This was clearly not a case of disappointed longs leaving the market - it had the hallmarks of a concerted 'short sale', which by driving prices sharply lower in a display of 'shock & awe' - would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called 'stopped-out' in market parlance - probably hidden the unimpeachable (?) $1540 level.

The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production - too much for the market to readily absorb, especially with sentiment weak following gold's non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data. The assault to the short side was essentially saying "you are long... and wrong".

Futures trading is performed on a margined basis - that is to say you have to stump up about 5% of the actual cost of the gold itself making futures trades a highly geared 'opportunity' of about 20:1 - easy profit and also loss! Futures trading is not a product for widows and orphans. The CME's 10% reduction in the required gold margins in November 2012 from $9133/contract to just $7425/contract made the market more accessible to those wishing both to go long or as it transpired, to go short.

Soon after we saw the first serious assault to the downside in Dec 2012, followed by further bouts in January 2013 - modest in size compared to the recent shorting but effective - it laid the ground for what was to follow. One fund in particular, based in Stamford Connecticut, was identified as the previous shorter of gold and has a history of being caught on the wrong side of the law on a few occasions. As badies go - they fit the bill nicely.


GOLD STOCKS AVAILABLE FOR DELIVERY WERE FALLING

In an interview with King’s News on April 15th, precious metals trader Andrew Maguire said plunging gold stockpiles necessitated the attack on gold:

Gold and silver only have this type of selling when there are extreme shortages of the physical metal.  I am totally aware that before this takedown occurred there was an imminent LBMA [London Bullion Market Association] default.

We had already seen COMEX inventories plunging.  In 90 days COMEX inventories saw an incredible decline.  So immediately available physical gold was disappearing.  People around the world don’t understand what has been happening since Cyprus....

Entities went to the LBMA and said, ‘We don’t trust anybody anymore.  We want our physical metal.’  They were told they would be cash settled instead by a bullion bank.  The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.

This is why this smash has been orchestrated because of the run that has been taking place on physical metal.  So Western governments had to do this because of an imminent run on the unallocated LBMA system.  The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash.

This orchestrated smash in gold and silver was nothing short of a bailout for the bullion banks.  So there is a run on physical gold that is taking place and the Ponzi scheme the West is running is being threatened because of it.



 

Maguire also added: We are nearing the end of this decline.  Physical demand is already beginning to catch up with leveraged paper.  If gold were to trade into the low $1,300s it would be unsustainable for very long.

THE USUAL SUSPECT:  GOLDMAN SACHS

While the fund in Stamford Connecticut may have placed the $20 billion worth of gold shorts but, if they did, it is far more likely they acted as the agent of far-larger entity such as Goldman Sachs which had months before predicted gold would fall to $1200.

Goldman Sach’s January prediction of the fall of gold reminded me of an after-dinner conversation I had a few years ago in Europe. The conversation was with a gold trader at a major European bank and the topic of conversation was gold.

Gold had been falling for several days and I remember his excusing himself the previous evening and saying quietly, “I think it’s time to buy gold”. The next morning the price of gold began moving higher.

What he told me during that evening’s conversation bears repeating, especially after what has happened. He said that he had been watching gold’s movements in real time when a highly anomalous event caught his attention, the bid price of gold had been followed not by an equal or higher ask price but by a lower ask price and, as he watched, the price of gold began to fall.

He said he began watching for this anomalous trade and discovered when it occurred, it was always followed by lower ask prices which meant gold was being driven lower. The source of the anomalous lower gold ask price was always J. Aron & Co., the commodities trading arm of Goldman Sachs.

Note: Lloyd Blankfein, Goldman Sach’s CEO, worked as a precious metals salesman at J. Aron’s London offices before going to Goldman Sachs in New York.

TIME OF THE VULTURE GOLD STAGE III
In 2007, in my book, Time of the Vulture: How to Survive the Crisis and Prosper in the Process, I wrote:

Quote
GOLD
AN ECONOMIC INSURANCE POLICY
FOR A COLLAPSING ECONOMY
THE TIME OF THE VULTURE
AND THE FIVE STAGES OF GOLD


STAGE 1:  THE SUPPRESSION OF THE PRICE OF GOLD Central Banks collude with investment banks and gold mining companies to force down the price of gold.
STAGE 2:  THE PRICE OF GOLD MOVES UPWARD Gold begins to rise, doubling in price even as Central Banks fight its rise.
STAGE 3:  THE PRICE OF GOLD BECOMES INCREASINGLY VOLATILE The price of gold is subject to increasing highs and lows as large investment funds move in and out of gold as global economic uncertainties wax and wane, a sign that gold is increasingly a haven in uncertain times.
STAGE 4:  EXPLOSIVE ASCENT IN THE PRICE OF GOLD A crisis results in a monetary breakdown which drives the price of gold to never-before-seen highs. Investment capital floods towards the safety of gold. Central Banks capitulate.
STAGE 5:  THE PRICE OF GOLD STABILIZES The crisis recedes and order begins to return to the markets. Though losses are substantial, a new order based on new realities slowly begins to emerge.



The recent 20% fall in the price of gold indicates we are currently still in STAGE 3. STAGE 4 with its EXPLOSIVE ASCENT IN THE PRICE OF GOLD is next. When STAGE 4 happens is anyone’s guess as prediction is always an uncertain art—unless, of course, you’re Goldman Sachs.

Buy gold, buy silver, have faith.


Darryl Robert Schoon
www.survivethecrisis.com
www.drschoon.com
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« Reply #79 on: April 18, 2013, 03:34:15 PM »

Then your statement that "its ALWAYS a good time to buy gold" only applies to a very small fraction of the general population.  The only time that they could buy gold is when its value is extremely low and the currency reasonably high.

About hiding/storing gold, my point is that it's very impractical and unaffordable.  Buying physical gold right now is not only very expensive, but storing and insuring it is very expensive as well.  The average citizen just can't afford that.

Since nobody can predict the value of gold, stocks, and currency, historically the average person is better off saving and investing the money he/she would spend on buying, storing and insuring physical gold on other things, like stocks, bond, CDs, high yield savings, etc.  

Sure, the value of their currency could free fall or inflation could skyrocket, or both.  But since nobody can predict that with total accuracy, it's a more acceptable and affordable risk than depleting their income and savings right now on buying, storing and insuring physical gold.  

That is correct, not everyone can afford to buy gold....not everyone is tall or has high calves and a strong chin. So the average joe would have to "stack" smaller amounts, or other "hard assets".

"like stocks, bond, CDs, high yield savings"...there is NO diversification in these instruments, gold is a hedge against systemic failure....all these (except some stocks) would be rendered worthless leaving the investor in possible ruin. If a financial adviser does not diversify and shield his client but has him leveraged, his license should be burned.

Storing valuables has never been an issue, it might be to you. But not as a general concern for others.

You buy insurance on cars, houses, rental property ect. but protecting your financial position buying gold in case of systemic financial failure is risky? Why?
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« Reply #80 on: April 18, 2013, 03:48:42 PM »

No name calling.  Your "business" is a scam. 


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« Reply #81 on: April 18, 2013, 03:50:00 PM »

That is correct, not everyone can afford to buy gold....not everyone is tall or has high calves and a strong chin. So the average joe would have to "stack" smaller amounts, or other "hard assets".

"like stocks, bond, CDs, high yield savings"...there is NO diversification in these instruments, gold is a hedge against systemic failure....all these (except some stocks) would be rendered worthless leaving the investor in possible ruin. If a financial adviser does not diversify and shield his client but has him leveraged, his license should be burned.

Storing valuables has never been an issue, it might be to you. But not as a general concern for others.

You buy insurance on cars, houses, rental property ect. but protecting your financial position buying gold in case of systemic financial failure is risky? Why?

This is what happens when people are blinded by bias and hate. The common sense goes out the window.
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« Reply #82 on: April 18, 2013, 04:12:24 PM »

This is what happens when people are blinded by bias and hate. The common sense goes out the window.


I think its conditioning, very little margin exists on physical gold sales, so brokers don't make money....stocks stocks stocks bonds bonds bonds.

The brokerage houses make money, the clearing houses make money, the brokers make money, and the corporations make money....investors....so metimes.
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« Reply #83 on: April 18, 2013, 04:33:44 PM »

I think its conditioning, very little margin exists on physical gold sales, so brokers don't make money....stocks stocks stocks bonds bonds bonds.

The brokerage houses make money, the clearing houses make money, the brokers make money, and the corporations make money....investors....so metimes.

Then too there are the financial planners & advisers who are not licensed to sell gold, so they will actively steer clients who enquire about gold AWAY from it, and into something they do make money selling.

Many commodity brokers don't like a buy & hold and take physical possession strategy because they don't get a piece of profits. They only make money per transaction, so they'll have you buy & selling & buying & sellling 'til the cows come home... all the while collecting transactions fees hand over fist... til you have no money left.
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« Reply #84 on: April 18, 2013, 05:05:09 PM »

This is a good civil discussion, lets keep it that way. Lets stay on point....nm
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« Reply #85 on: April 18, 2013, 05:26:54 PM »

CBC's 'The Secret World of Gold' may approach relevance

An interview broadcast Tuesday by CBC Radio in Canada with filmmaker Brian McKenna makes it seem that his new documentary, "The Secret World of Gold," which is to be broadcast on CBC Television at 9 p.m. Eastern time Thursday, will approach relevance -- evidence of the manipulation and deception of the gold market by central banks.

Audio of the interview begins at the 9:40 mark at the CBC podcast Internet site here:

http://podcast.cbc.ca/mp3/podcasts/current_20130416_22647.mp3
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« Reply #86 on: April 18, 2013, 05:35:50 PM »



Brian McKenna explores The Secret World of Gold
 
Documentarian reveals the drama and danger behind one of the world’s oldest currencies
 
By T'Cha Dunlevy, GAZETTE FILM CRITIC April 18, 2013


The Secret World of Gold is “the toughest documentary I’ve ever made,” says
 Montreal director Brian McKenna. “It took over a year, and led me down so many corridors.”
Photograph by: Graham Hughes , The Gazette



MONTREAL - Brian McKenna didn’t predict the recent nosedive in gold prices, but he knows someone who did.

“Andy sent me an email early Friday morning,” recounted the Montreal director. “He said, ‘There’s a big event happening. Someone’s dumping 500 tons of gold into the market.’ That ended up driving the price down by $78 an ounce. And 500 tons is 16 million ounces — we’re talking about a serious intervention here. Who’s got that kind of money?”

“Andy” is Andrew Maguire, a key source in McKenna’s fascinating new film The Secret World of Gold, which premières Thursday at 9 p.m. on CBC-TV. The hour-long documentary plunges into the dramatically rich narrative of gold, unveiling some shocking facts along the way.

“I was just going to do a history piece, until I stumbled over a whistleblower,” McKenna said.

A veteran gold and silver trader, Maguire denounces the shady tactics of the industry, breaking down the ways in which precious metal prices are manipulated using insider trading.

“He was tremendous,” McKenna said. “It took me eight months to persuade him to come on camera, but I was willing to wait. I knew he was critical to the film. It turns out he was burned by the BBC. He spent seven months showing them everything, going online and showing them the way things worked. Then after all that, they said, ‘The show’s been killed.’

“Word on the street is that Tony Blair, who is on a retainer to JPMorgan for $2 million a year, made a call (and the story was dropped). Did that happen? I don’t know. It’s an opinion that people hold; it doesn’t make it so. But something made the BBC stop an important investigation into which they had probably invested three-quarters of a million dollars.”

McKenna’s film also explores the secretive smuggling of European gold reserves during the Second World War, and how gold has gone from a reliable physical currency to an abstract concept, bought and sold in the blink of an eye on the stock market, taking on all the baggage of modern global finance in the process.

An investigative journalist and historian, McKenna estimates he has made 100 films over his career, including many provocative documentaries on war and politics. The topic of gold presented itself to him in the form of a rumour.

“A long time ago, I heard a story which I wasn’t sure was true,” he said, “about all this gold coming to the Sun Life Building’s vaults, far below the surface at the height of the Second World War. I thought, ‘That’s curious,’ but it turned out to be a critical moment in the war: if that gold had ended up at the bottom of the ocean, England wouldn’t have had the money to buy arms from the U.S., which was operating on a cash-and-carry basis, and fight off Hitler.”

Vast amounts of French and English gold were shipped to North America to avoid being claimed by the Nazis, McKenna reveals, with Montreal and Ottawa becoming important for storage. It’s but one example among millions of gold being moved, hidden, stolen, reclaimed and sunk to the bottom of the sea through the ages, making and breaking many a nation along the way.

Those expecting an escapist narrative about the enduring allure of one of the world’s oldest currencies don’t know McKenna. A founding producer of The Fifth Estate, he’s like the anti-Midas: he can’t help but dig up the dirt on anything he touches.

His 1992 CBC documentary The Valour and the Horror received five Gemini Awards, while sparking a CRTC investigation, a senate inquiry and a $500 million lawsuit by Air Force veterans, which was dismissed. All to say, the man is used to ruffling feathers. In keeping with tradition, The Secret World of Gold is far from a puff piece.

“It’s the toughest documentary I’ve ever made,” McKenna said. “It took over a year, and led me down so many corridors. Once you go down one corridor, two doors open, and you don’t know which one to take. This happened over and over. It’s virgin territory. No one has been down this path before, to report it.”

Though his film reveals amazing things about humanity’s conflicted relationship with gold, McKenna was most excited by the human story at its centre. Maguire may well have put his life on the line by speaking out, the director explained.

“We weren’t able to include it in the film, because it’s still a mystery, but it looks like somebody tried to kill him. Two days after he blew the whistle (to the Gold Anti-Trust Action Committee, in 2010), out of nowhere a van rammed and almost demolished his car. And there was almost no investigation.

“Andrew Maguire standing up as a gold and silver trader and saying, ‘This is wrong’ — that’s the kind of courage I like to capture in my documentaries. Whether it’s people who (survived) Auschwitz, who escaped and lived to tell their story, or veterans who thought bombing women and children in the Second World War was not the best strategy, and stood by me when all hell broke loose.

“Celebrating heroes — I like to do that.”

The Secret World of Gold airs Thursday, April 18 at 9 p.m. on CBC-TV.

http://www.montrealgazette.com/entertainment/Brian+McKenna+explores+Secret+World+Gold/8255149/story.html
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« Reply #87 on: April 18, 2013, 05:38:19 PM »

To view the Brian McKenna CBC DocZone documentary, ...click here:
The Secret World Of Gold
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« Reply #88 on: April 18, 2013, 05:50:22 PM »

That is correct, not everyone can afford to buy gold.

Exactly!
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« Reply #89 on: April 18, 2013, 05:57:19 PM »

I would think it to be a good thing when gold sellers innovatively make gold affordable to everyone.

That is why I believe the ability to acquire it in smaller, more affordable, and transaction friendly weights provides the most benefit for the majority of people. It also offers the most flexibility imo
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« Reply #90 on: April 18, 2013, 05:58:52 PM »

Exactly!

It's individual preference...I chose to have semi auto assault weapons (many) at my home, I conceal carry. Others would not....their choice. BUT don't cry when a mugger has a weapon and you don't. Agree?

Same with gold, just a different tool for self protection.
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« Reply #91 on: April 18, 2013, 05:59:36 PM »

In other Global Currency Trends ... Cheesy

The Rise of the PetroYuan
By Dan Collins

How the Chinese currency is replacing the U.S. Dollar in global oil markets

History is being written in the East. As the U.S. stays distracted with stone age warriors in Central Asia and the Middle East, the last platform of the American economic foundation, the U.S. Dollar's currency reserve status, is being underminded by their trade partners in Asia. Both Australia and Japan are set to start direct-trading in Chinese currency and they are not the only ones. There are almost 20 countries whom have currency swaps in place with China all in order to side-step the U.S. Dollar in global trade. At the China Money Report, we have written extensively on the "Rise of the Renminbi". What is new and largely unreported and what we will cover in this article is the "Rise of the Petroyuan," as China is now converting its oil imports into Chinese Yuan as opposed to U.S. Dollars. This will be a new challenge and possibly the fatal blow to the U.S. Dollar as the dominant global reserve currency.

With their industrial base all but gone, the housing market bubble popped, and the Federal Resereve funding the majority of the government debt with printed currency, the American economy can ill-afford a new challenge to its currency's reserve status. It is this very reserve status which has led to America being able to consume more than it produces for decades upon decades as foriegn countries were willing to trade consumer products for paper IOU's. The Dollar's reserve status came about naturally after WW2 as the U.S. was the world's larget trading nation, exporter, and creditor. Today, China occuppies all of these slots.

China will soon occupy a new slot: That of the world's largest oil importer. OPEC has confirmed on April 4th of this year that they expect China to surpass the United States as the world's largest oil importer in 2014. This shift in global oil flows is being driven by the twin pillars of a booming Chinese economy and America’s newfound booming domestic oil and gas supply. This shift in the oil trade carries with it massive geopolitical implications that will reshape the world as we know it.

China’s Increasing Oil Imports

The demand side of oil from China has already reshaped geopolitics and global supply chains. Between 2002 and 2010, China's annual imports of crude increased from 70m tonnes to more than 270 million tonnes. Saudi Arabia’s largest customer for oil is no longer the U.S. but the Peoples Republic of China. In the year 2012, China’s net oil imports were still 1 million barrels per day lower than in the United States, but in some months, China was very close and even surpassed the U.S. in net oil imports. In December 2012 for instance, China imported 6 million barrels a day compared to only 5.98 million barrels in the U.S. From 2010-2015 alone, oil imports in China are expected to grow over 40%. China's oil demand growth is expected to represent 64% of all new demand for oil in 2012-2013.

The upside potential of oil imports into China are still not understood by most analysts and the potential on how large they could become is incredible. Car sales in China are already almost twice the levels in the U.S. and sales are up 20% for the first two months of 2013. Keep in mind that 90% of car sales are paid cash-up-front and most large cities have prohibitive taxes and quotas against new car sales. Despite these regulations, sales are still up 20% so far in 2013. All of these new cars and trucks will of course require more oil that China will need to import. General Motors already sells more vehicles in China than they do the United States and their sales are growing double-digits.

China's increasing dependence on imported oil has threatened the country's energy security and it is of major concern to the government. China’s oil dependence is expected to reach 59.4 percent in 2013. Be assured, China is building a blue-water navy and developing the global relationships, which will be required to protect this supply of crude they require today and the ever increasing amount they will need in the future. Indeed, the country of China may be forced into becoming the reluctant miltary superpower to guarantee that they have access to global oil markets.

Americans Turning Off Oil Imports

In comparison to China, the US reliance on foreign energy imports has declined considerably, and many are predicting that the US could be energy self-sufficient by 2030 thanks to its surging domestic production of shale gas and oil. The US is now expected to be a gas exporter by 2020 instead of the previously projected 2022. Domestic oil supplies as well as Canadian supplies will make North America energy independent. This is good news for the U.S. and this new found wealth could be used for a new platform for a revitalized American economy if they can substianlly restructure the tax and legal system which has driven production out of the country.

Trading Oil for Yuan

Recent reports from Reuters, have confirmed that China is now trading their own domestic currency, the Yuan, for oil. Both Russia, and Iran are now using Yuan for oil sales to China. Venezuela is sure to follow. With Russia and Iran accepting Yuan for oil that means there are now almost 1 million barrels per day being exchanged for Yuan instead of USD. Angola can be expected to move oil sales into Chinese Yuan if they haven't already. Over half of their oil sales are now to China. For Venezuela, the political relationship with the U.S. is well known as fear of the U.S. military might be the only thing stopping them from shifting oil sales into Yuan now. Sudan is another country, highly dependent on China politically and will most likely convert their oil sales into Chinese Yuan.

If Russia, Iran, Angola, Sudan, and Venezuela all convert just their oil sales to China into the Chinese Yuan the world will see over 5 million barrels per day traded not in U.S. dollars but in Chinese Yuan. Good night Petro Dollar...Hello Petro Yuan.

Geopolitical Shift and Rise of the Petro Yuan

Does China, as the world’s largest importer of oil then take charge of global sea lanes to ensure the trade in oil? This has been a priority of the U.S. military for the last 50 years. The Pentagon is spending $1.58 trillion annually on hardware for trucks, planes, ships, and guns. In 2013, their cost increase alone was $74 billion. The cost increases this year alone, of $74 billion, is more than Russia’s entire military budget. Can America justify a defense budget of this size to protect sea lines for Saudi crude going to China?

What about the so called “King Dollar”? For decades you could trade oil for dollars. This relationship has gone a long way towards making the U.S. dollar the world’s reserve currency. What happens when the U.S. no longer needs to buy imported oil. As time goes on, the oils futures markets will no doubt shift more to Dubai and Dalian, than West Texas and Brent Crude. In decades past, America's thirst for energy imports resulted in all oil contracts being denominated in U.S. Dollars, the so-called Petro Dollar. The Petro Dollar is now headed for extinction to make way for the Petro Yuan.

We are all witnessing the birth pangs of a new global reserve currency and the "Rise of the Petro Yuan".
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« Reply #92 on: April 18, 2013, 06:00:34 PM »

PS if the choice is gold or guns....BUY GUNS!!!
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« Reply #93 on: April 18, 2013, 07:40:41 PM »

<a href="http://www.youtube.com/watch?v=SHdfpYK-ntc" target="_blank">http://www.youtube.com/watch?v=SHdfpYK-ntc</a>
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« Reply #94 on: April 19, 2013, 02:48:20 AM »

Speculation abounds that there's a very severe shortage of physical, that could soon be compounded with the insolvency of many gold mining companies. Spot price approaching or falling below extraction costs is bad enough, ...but Barrick has a whole lot of more serious problems that by themselves threaten to tank them.

Now I hear Switzerland is in need of 1,000 tons of gold, so an orchestrated smash down to shake out easily spooked speculators and free up gold at a lower price so that Switzerland will be able to get it's 1,000 tons at a lower price.

Swiss citizens are demanding repatriation of their gold, ...as well as for the Swiss government to buy back 1,000 tons of Swiss gold they previously sold into the markets. Who knows whats what anymore? ...lots of intrigue. One thing's for sure... it's gonna get even more interesting here on out. There's supposed to be another smash down coming soon. Che sara, sara. I hope to take advantage of it when it happens again.
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« Reply #95 on: April 19, 2013, 02:59:48 AM »

Dennis Gartman of The Gartman Letter, wrote:

"Concerning gold, let's note firstly something sent to us by our old friend John Brimelow, who had a most interesting piece in his commentary this morning regarding the violence of the recent price changes. He noted a piece written by Russell Rhoads, CFA of the CBOE Option Institute, who wrote the following:

"'Friday was a 4.88 standard deviation move in the price of gold. For simplicity's sake let's call it a five standard deviation move. Statistically we get a five standard deviation move approximately once every 4,776 years. So we should not expect another move like this out of the price of gold until May 17, 6789. ... Currently the two-day price change in GLD is 16.65, which can be converted to just over eight standard deviations. I wanted to share what this comes to, but the table I use only goes up to seven standard deviations. Let's just say the sun is expected to burn out first.'"

Gartman continues: "We shall confidently say that we will never, ever see a day such as we saw yesterday in the gold market in our lifetime again. It will not happen. The sun will indeed burn out before we see anything such as that again. Nor shall we ever want to see anything such as that again. We can reasonably deal with deviations from the norm of 2 or 3 or perhaps even 4, but 8+ standard deviations is beyond our ken or that of anyone else anywhere. Yesterday's price action will go down in history as an aberration of truly historic proportions.

"We judge the violence of the market's movements by the numbers of requests for interviews made of us, for the correlation between high numbers of such requests is nearly 1:1 with peaks and valleys of various markets. A large number of requests made of us is four or five a day; a truly large number is eight. Yesterday we had 12, and we've agreed to give several more today that we could not fit into our schedule yesterday. This befits an 8+ standard deviation day."



Che sara, sara... I'll keep stacking.
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« Reply #96 on: April 19, 2013, 05:08:25 AM »

It's individual preference...I chose to have semi auto assault weapons (many) at my home, I conceal carry. Others would not....their choice. BUT don't cry when a mugger has a weapon and you don't. Agree?

Same with gold, just a different tool for self protection.

We just agreed that the majority of the population can't afford to buy, store and insure gold.  It has nothing to do with preference.  I gave you the example of the college student with $5,000 in savings and you said it wasn't for him/her.
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« Reply #97 on: April 19, 2013, 01:40:25 PM »

We just agreed that the majority of the population can't afford to buy, store and insure gold.  It has nothing to do with preference.  I gave you the example of the college student with $5,000 in savings and you said it wasn't for him/her.

A college student with $5,000 in savings can certainly afford to buy gold.
Granted maybe not a whole lot of gold, but they can still afford to buy some.

I think an argument that says I only have $5,000 in savings so I can't afford to take 20% of my savings to insure 100% of my savings does not make any sense. It's not like they'd be losing anything. They'd still have their savings, ...but 20% of it, would simply be in a different form.

That's like saying, a college student with $5,000 USD in savings can't afford to take 20% of those savings and convert them into CDN$. The college student STILL has his money, ...but 20% is denominated into a different form of money. 

It's those who have very little, who need the insurance THE MOST! imo.
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« Reply #98 on: April 19, 2013, 09:22:14 PM »

A college student with $5,000 in savings can certainly afford to buy gold.
Granted maybe not a whole lot of gold, but they can still afford to buy some.

I think an argument that says I only have $5,000 in savings so I can't afford to take 20% of my savings to insure 100% of my savings does not make any sense. It's not like they'd be losing anything. They'd still have their savings, ...but 20% of it, would simply be in a different form.

That's like saying, a college student with $5,000 USD in savings can't afford to take 20% of those savings and convert them into CDN$. The college student STILL has his money, ...but 20% is denominated into a different form of money.  

It's those who have very little, who need the insurance THE MOST! imo.

Tedim disagrees with you and with your business, as he said earlier that buying gold as insurance and transporting, storing and insuring it is not for the majority of the population and that they would be screwed if currency free falls while inflation skyrockets.

Okay, Jaguar Enterprises, I'll play along.  Since you insist on quoting me and trying to answer my questions to Tedim.

Will you please be more specific and break it down for this hypothetical college student?

20% of $5,000 is $1,000.  So he/she keeps $4,000 in a savings account that has say 0.95% annual percent yield.

So he/she takes this $1,000 and does what exactly with it?  Please break it down for me, how much gold can he/she buy as insurance and how much would it cost him/her to transport, store and insure this gold?
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« Reply #99 on: April 19, 2013, 09:22:26 PM »

I'm surprised the price keeps dropping.

With all the spamming you do on this board, I would have thought that the price would have quadrupled by now.  Roll Eyes

Where can I sign up?
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