Why gold is falling even as global economic fears intensify

[loco]

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.  

Where can I sign up?

LOL...exactly!   

[loco]

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 physical 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 value 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 physical gold can he/she buy as insurance and how much would it cost him/her to transport, store and insure this physical gold?

[24KT]

For those unable to view the Canadian CBC documentary The Secret World of Gold, it will be re-broadcast again Sunday evening. Check your local CBC listings for the time.

For those of you outside Canada, the documentary has been posted here:

It was a great show. Catch the rebroadcast while you can here: http://news.goldseek.com/GoldSeek/1366397576.php

It may be pulled.

[24KT]

Wow, since you've posted it twice, I'm going to assume you must really want an answer, and are not looking for an excuse to fight or be bellicose.

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.

With all due respect, I think Tedim should be allowed to speak for himself. Just because he may not choose to avail himself of my business model does not mean he disagrees with it. It could simply be that he has a strategy that works for him. He may or may not see merit in it, or see where it may indeed be beneficial to others, but that is irrelevant imo. Just as I have the ability to examine his model/strategy, and see where it has merit, but also determine that due to MY particular situation, his model may not be the most practical for ME. It's lack of practicality for ME however, in no way detracts from the wisdom, credibility or viability of his chosen path for HIM.

I don't give financial planning or investment advise. Simply stating my opinions.
Everyone should look at their own personal situation, and determine what is right for THEM

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?

I prefer you refer to me as 24KT.

Unfortunately a criminal with no relationshipship or association to me whatsoever has tainted the name Jaguar Enterprises, and I do not appreciate the negative association the name carries with it, or those who would exploit the name in order to maliciously associate me with the individual.


That said: A quick cursory response because I'm packing to go away for the weekend...

How much gold one can acquire as insurance for $1,000 will depend entirely on what the given price of gold is at that moment. Given current prices the volume of gold one could directly buy out-of-pocket, would be measured in grams.

Some suppliers like mine, provide innovative, alternate ways to acquire & accumulate gold for no out-of-pocket cost. As for the cost of transporting, storing or insuring the gold, that too would all depend on to where & how you transported, stored or insured your gold, and which supplier you used.

I can't speak to other suppliers, but with Karatbars, depending upon the amount being delivered, delivery costs may be free. Storage & insurance costs are also free depending on what storage facility one chose. One also has the option to accumulate, then take delivery periodically. The choice is entirely yours.

If taking delivery into the USA, I know there is I believe a $25 charge required by the US gov't for orders valued in excess of $2,000 Federal Reserve Notes (FRN) if memory serves me correctly.   

Why someone would choose to use GOLD as a form of financial insurance:

If the Federal Reserve Note (FRN) continues to decline as all fundamental indicators predict it will, having any amount of FRN sitting in an account exposes the account holder to risk of loss via confiscation (whether by inflation or "bail-in haircut")

FDIC (provided it will even have the integrity to back it's promise), guarantees the NUMBERS of dollars in your account, ...but NOT the purchasing power of those dollars. In the event of bank insolvency, $5,000 worth of FDIC insured FRNs might buy you a stick of bubble gum (if you're lucky) No hyperbole. I have a genuine $100 Trillion dollar bill that if the seller was feeling extremely generous, might buy me a slice of bread.

Quick scenarios to ponder:

The year is 1971, college student has $175 in savings. he takes 20% and buys 31 grams of gold for $35 dollars as a form of financial insurance, and leaves $140 in the Federal Reserve Note FDIC insured piggy bank.

The real rate of inflation is upwards of 10 - 12%. If you are getting less than 1% yield, in the FDIC insured piggy bank, you are effectively losing 10%+ annually simply for the privilege of having your money in the FDIC insured piggy bank... not even calculating any additional nickel & dime fees those piggy banks may impose. Confiscation via inflation. In addition to the risk definite loss incurred from confiscation via inflation, there now exists the potential for loss via bank insolvency (confiscation via "bail-in haircut")

Fire Depts can respond efficiently if one or two houses were on fire, ...but if every structure within a city were ablaze, ...that fire will burn & burn until there was nothing combustible in the city left to burn. This is analogous to FDIC insurance. FDIC has roughly 250 billion in funds to cover trillions upon trillions of FRNs covered by FDIC insurance. in the event of a financial firestorm... the funds are not there to cover the losses. The Fed can print up the currency to cover the NUMBERS, (provided it maintains the integrity to fulfill it's promise) but with that rate of printing... trillions upon trillions ...what becomes of the purchasing power of those NUMBERS?

If the FED has to print up trillions upon trillions to cover the financial firestorm, the FRN takes on the purchasing power of a Zimbabwe Federal Reserve note. If the FDIC breaks it's promise, uses a Cyprus style "bail-in haircut", what happens to the FRNs in your FDIC insured piggy bank?

Seems like a mighty big risk to me to keep savings in a FDIC insured piggy bank for less than 1%

Interest rates would have to go way up for me to be properly incentived to leave money there, ...but if the interest rates go up, ...that spells disaster for the Gov't due to their level of indebtedness. Meanwhile QE to infinity is in place and will remain in place regardless of what they say imo. Quite the catch 22 no?


Quick example:

In 1971, $1 bought 4 loaves of bread, 1 gram of gold bought 5 loafs of bread.
In 2013, $1 buys less than a half loaf of bread, 1 gram of gold buys 20+ loaves of bread.

Governments across the planet are simultaneously debasing the value of their currencies relative to gold. In previous days one could hedge against this sort of currency debasement by exchanging into a different currency not subject to debasement. Now, with the debasement being GLOBAL, and with the pegging of the Swiss franc to the Euro, despite Switzerland not being part of the Eurozone, the only safe haven currencies left standing are physical precious metals.

If a drastic reduction in the exchange rate of the FRN occurs, they approach the value of Zimbabwe dollars. If however, a portion of one's savings are held in hard assets with intrinsic value like GOLD, ...the FRN portion of your savings may be eaten away, however, the GOLD portion of your savings remains in tact.

Because gold has a 6,000 yr track record of not only keeping up but staying well ahead of inflation, it is quite reasonable to consider the possibility that in the event of a FRN meltdown, that 20% that was allocated into GOLD could infact make the difference between losing only some of your savings, and losing it ALL.

By having it in smaller, more affordable, transaction friendly weights, you allow yourself the flexibility you may require should GOLD get so far ahead of inflation that it has many zeros behind it, ...or if it is required for day to day transactions as an interim mechanism.

Just because one may not be able to afford to buy ounces should not imo dissuade someone from accumulating some, ...especially in the event it does what many experts are predicting it could.

I apologize for this quick rambling and disjointed response. I'm not the most succinct or articulate in print, and I got a boatload of things to do before 5am. if you or anyone else requires further clarification, will be happy to do so when I get back on Monday.

[24KT]

In other Global Currency Trends ... 

The US Will be Cyprused & We Will See $50,000 Gold.
April 19, 2013

Today Jim Sinclair spoke with King World News about the ongoing chaos and told KWN the world is witnessing something that has never been seen in history.  Sinclair also warned that “the US is going to get Cyprused.”   Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable and exclusive interview.

Eric King:  “This was from Fed Governor Jeremy Stein’s speech, “If systemically important financial institutions or SIFI, does fail, the losses would fall on its shareholders and creditors, and taxpayers would have no exposure ... Perhaps more to the point for TBTF (too big to fail), if SIFI does fail, I have little doubt that private investors will, in fact, bear the losses -- even if this leads to an outcome that is messier and more costly to society than we would ideally like.”

Sinclair:  “What he is saying is that the potential losses are so large, and he is referring to the more than one quadrillion dollars in legacy over-the-counter market for derivatives, that nobody could create that much money.

So what’s pending now is so large, and these statements from Stein are confirmation that Cyprus is in fact the blueprint in the United States for coming financial failures....


“Recent events have also revealed that the paper gold market is in failure right now.”

Eric King:  “So their intention is to ‘Cyprus’ the United States?”

Sinclair:  “Yes.  No question about it.  It’s the legacy over-the-counter derivatives that are coming in for some adjustment that can’t be made, and the fractional reserve gold system has failed.

There is no gold there to deliver.  What first gave rise to this was the German situation, but then when ABN AMRO shut gold deliveries down it accelerated.  The reason they blasted the gold market was to camouflage the fact that the fractional reserve gold system, which is very important to financing and to the government, failed. 

The truth is that when we take out these futures markets on a failure, gold is going to $50,000.  Not $3,500.  $50,000.  We are in the midst of a failure right here, right now.  That’s what this is all about.  This takedown has been the ultimate can-kick.

This has been to stop the revelation of what the central planners are so panicked about, and the fact that the US is going to get Cyprused.  They have now manufactured a situation right here at this point in time where it is almost impossible to save yourself.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Sinclair_-_The_US_Will_Be_Cyprused_%26_We_Will_See_%2450%2C000_Gold.html


Jim Sinclair was the individual that the Fed chair turned to solve a previous potential meltdown crisis when he was chair of the Fed in the early 80's.

[Tedim]

Tedim disagrees with you and with your business, as he said earlier that buying physical 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 value 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 physical gold can he/she buy as insurance and how much would it cost him/her to transport, store and insure this physical gold?

You mis understood...majority won't buy it because they are ignorant, until its too late. You don't need to insure the insurance. Transportation is a non factor, UPS, FedEx, or USPS so......

Ship it by UPS, buy it at Gainesville Coin/Gold or tulving.com or ebay or any pawn shop in your area.

hide it in your freezer stuff it in your turkey, smelt it into bar bells and paint black....

If you don't believe in it...don't buy it! As I won't buy apple stock.....or any stock. Take my hard earned money, give it to someone I don't know, and they don't know me. Who's sole interest is making the most amount of money for themselves in the shortest amount of time because they don't own the company. Hoping to get a return on my money from this person. Google moral hazard.

[24KT]

You mis understood...majority won't buy it because they are ignorant, until its too late. You don't need to insure the insurance. Transportation is a non factor, UPS, FedEx, or USPS so......

Ship it by UPS, buy it at Gainesville Coin/Gold or tulving.com or ebay or any pawn shop in your area.

hide it in your freezer stuff it in your turkey, smelt it into bar bells and paint black....

If you don't believe in it...don't buy it! As I won't buy apple stock.....or any stock. Take my hard earned money, give it to someone I don't know, and they don't know me. Who's sole interest is making the most amount of money for themselves in the shortest amount of time because they don't own the company. Hoping to get a return on my money from this person. Google moral hazard.

Moral Hazard is the license banks and other institutions have been given to run with scissors.
They don't care 'cause the eyes they take out, will not be their own.

It's a giant BlackJack game where the banks don't have a problem hitting on 19 in hopes of getting 21,
...despite the fact that the dealer has 18. They don't care. They want the extra bonus for getting 21, ...but if they bust... well the taxpayers or now the bank account holders will have to cover the banks losses because they are systemically important financial institutions (SIFI) aka Too Big To Fail (TBTF). Fed policy incentivizes the banks to take even greater risks, and make unwise decisions because in the end, ...it's no skin off their noses. Banks keep the profits, ...everyone else eats the losses.

IMO, leaving money in bank accounts, stocks, bonds, CDs or any paper derivative is the fiscal equivalent of putting an apple on your head, and inviting the banksters or anyone they pull off the streets to start playing William Tell with a handgun. If they make the shot and hit the apple, the banksters win $1 Billion. If they miss the shot and don't get the apple, ...authorities will keep letting them try until they hit the apple.

Precious metals... that's your head-to-toe kevlar

[24KT]

Latest word on the street is that Hong Kong's bullion exchange is completely sold out.
They've had to get gold from Switzerland. Could be this may be another factor in Switzerland's need to acquire a further 1,000 tons of gold?

[24KT]

In other Global Currency Trends ...  

Gold's Black Market?
By Staff Report
9

Meltdown? 15% of world's gold miners face collapse after plunge in price strips $169-billion off market value ... Gold's 9.3% plunge on April 15, the biggest one-day drop in New York since March 1980, couldn't have come at a worse time for gold companies. Barrick Gold Corp. and Newmont Mining Corp., the world's two largest producers, are among companies in the FTSE Gold Mines Index that have collectively lost about US$169 billion in market value since bullion peaked in 2011. Gold equities are trading at the lowest level relative to gold. – National Post

Dominant Social Theme: It is getting grim out there.

Free-Market Analysis: So here is the conundrum: There are reports from all around the world that it is difficult to buy physical gold and silver.

Yet the price of gold has plunged by hundreds of dollars and now mining companies are getting ready to shut down.

What's that all about? Here's more from the article:

Gold producers, ignored as global stocks rebounded in the past two years and investors turned to exchange-traded funds that track bullion, face closing mines or shutting themselves down after the metal's worst slump in three decades this week made 15% of miners unprofitable ...

Barrick took another hit this week when the cost to insure its debt surged to the highest in four years after Moody's Investors Service said it may downgrade the company's bonds.

The review of Barrick's Baa1 debt rating was prompted by a legal challenge to its US$8.5 billion project in the Andes, Moody's said in a statement. Toronto-based Barrick is the biggest producer of the precious metal with US$7.5 billion of bonds.

This month's futures price drop to as low as US$1,361.10 an ounce brings gold closer to the global average production cost of about US$1,200 an ounce, according to Nomura Holdings Inc. That puts producers such as Canada's Semafo Inc. and Golden Star Resources Ltd. at risk of mine closures or "financial distress" if prices fall to that level, according to Macquarie Group Ltd. Tanzania, Africa's fourth-largest gold-producer, said a sustained slump may shut mines there.

"Any company that hasn't been focused on efficiencies and costs for the last three to four years is going to fail in this market," said Gavin Thomas, chief executive officer of Sydney- based gold miner Kingsgate Consolidated Ltd.

Gold's 9.3% plunge on April 15, the biggest one-day drop in New York since March 1980, couldn't have come at a worse time for gold companies.

Despite 12 consecutive years of rising gold prices, shareholders have lost faith in the gold-mining industry, which has seen soaring production costs and made money-losing acquisitions. Investors have instead flocked to exchange-traded funds, or ETFs, such as the SPDR Gold Trust, which are backed by bullion and track the price of the metal.

Have investors really lost faith? We read that gold demand in Asia and India remains very strong and informal reports from gold buyers (for physical gold) seem to indicate that it is difficult to buy gold at any price. Silver, not much better.

One explanation for this would be that the paper market and the physical market are diverging. The paper market, according to those who see this crash as manipulated, is easy to push down. Illegal (yet tolerated) naked shorting and other sorts of paper manipulations are responsible for the price crash of the physical.

The physical market might reject these manipulations were it a mark-to-market operation. But it is not. The physical price of gold is apparently fixed twice a day by a consortium of wise men.

If it were simply a market operation perhaps physical gold would be higher, even much higher. But the wise men setting the price must have (apparently so) an affirmative obligation to consider the price information (manipulated or not) being generated by the paper-gold industry.

Thus, the wise men take into account paper gold indications even though the REAL physical market would not reflect them and would tend to emphasize scarcity.

By divorcing market-based physical prices from the "on the ground" reality of what is occurring, those fixing the price of physical gold are apparently giving a good deal of credence to the paper gold market, despite any manipulation that might be occurring.

The situation is further complicated by the inability of gold miners to divorce themselves from whatever price the London physical exchange sets. Gold and silver jewelry are in great demand and apparently many who want to buy gold cannot find it at any price.

Yet according to this article, gold miners are set to go out of business because the price of gold has slumped. In fact, it may not have slumped but apparently to go outside the "fixed" price of the London bullion exchange is nearly impossible.

Perhaps the problem is regulatory in nature. But in any case, it is a bizarre series of events we are witnessing. There is plenty of reporting that seems to indicate high demand for physical gold. But the "price" of gold is down regardless and even though miners might be able to sell their gold for prices high above the stated price, that is not currently happening.

Instead, many miners are preparing to shut down! In the end, if this analysis is correct even partially there will be a divergence from the paper market and gold and silver will generate prices unrecognized by the official marts.

In other words, not recognizing the reality of gold and silver and the actual supply and demand equation will tend to create gray and even black markets in the metals.

Conclusion: Maybe this hasn't happened yet, but maybe it will if the demand actually exists and is not recognized by official prices.


Barrick is in such serious doodoo, it ain't funny!   

[24KT]

There are 4 ways to acquire gold

1) You can marry it or inherit it



Unfortunately, there are only limited amounts of  J Howard Marshalls or Duchesses of Alba around


2) You can mine it or pan for it yourself




3) You can buy it with any extra cash you have laying around








OR

The least known way, ...but most accessible way for the greatest number of people...

4) You can acquire it for FREE... zero out-of-pocket cost through a system that empowers you to be on the right side of the cash flow quadrant. (B or I quadrant)





95% of the population operates on the LEFT side of the Quadrant. They have 5% of the wealth.

5% of the population operates on the RIGHT side of the Quadrant. They have 95% of the wealth.

[24KT]

In other Global Currency Trends ... 

Sinclair: Swiss Bank Just Refused to Give My Friend His Gold


Today legendary trader Jim Sinclair stunned King World News when he revealed that a dear friend of his who is very affluent just had a Swiss bank refuse to return his large hoard of gold when he asked for it out of an allocated account.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable and candid interview.

Eric King:  “Maguire spoke on KWN yesterday about the fact that one of his clients went to the LBMA to get the metal from them and could not get it.  They told him he would be cash settled.  This is what you have been talking about is the failure of the physical markets.”

Sinclair:  “A person that I know with significant deposits in one of the primary Swiss banks, in allocated gold, wanted to take out his gold and was just refused on the basis of directives from the central bank....


“They told him the amount was in excess of 200,000 Swiss francs and the central bank had instructed them not to do it because it has to do with anti-terrorism and anti-money laundering precautions. 

I really wonder whether those are precautions or whether the gold simply isn’t there.  Now you tell me that a London delivery has basically failed.  It has to raise our suspicions that the lack of physical gold behind the paper gold is literally so severe that we are coming to understand that it is in fact not there.

The gold that people think is stored is not stored, and the inventory of the warehouses for exchanges may not be holding deliverable gold.  There has always been speculation about whether or not the physical gold the US claims to store is in fact in those vaults. 

The greatest train robbery in history might be all of the gold, and it would only be something like we have described above that would happen right before gold makes historic highs. 

There simply is no gold behind the paper.  One example is AMRO, a second is your example with Maguire, and a third is my dear friend who was refused his gold on the basis that its value was too high.  Remember this friend of mine had his gold in an allocated account in storage at a major Swiss bank.  I repeat, there is no gold.”

Eric King:  “Jim, when I listen to what you are saying, to what Maguire is saying, it really does tell me we are at the end game in terms of the paper market.  It’s collapsing right now as you have been warning.”

Sinclair:  “The vicious and blatant manipulation of the gold price (lower) via paper, on Friday and on Monday, may very well be the biggest mistake that the manipulators ever conceived of.  I firmly believe it revealed that the price of gold has nothing to do with gold itself.

But I would add that if in fact the physical demand remains at these levels or even increases as the price of gold rises, I believe that the warehouses for the exchanges will be so significantly drawn down that it will force cash settlement. 

The bottom line here is the paper market for gold may have just lit itself on fire, and served to burn the manipulators’ houses to the ground.  You’ve heard of the phrase, ‘The emperor has no clothes.’  Well, this is infinitely worse because it is finally being revealed that the paper market for gold, in fact, has no gold.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Sinclair_-_Swiss_Bank_Just_Refused_To_Give_My_Friend_His_Gold.html

[24KT]

If you're outside of Canada, or missed Brian McKenna's CBC DocZone documentary "The Secret World of Gold",
you can view the full documentary below


Secret World of Gold - Full Documentary

Here is Max Keiser keeping it real, discussing why the price is falling.
He is also accompanied by JP Morgan whistle blower Andrew Maguire

All of you who are enamored with paper gold or ETF's like GLD are highly encouraged to pay close attention

Keiser Report: Stalinism of NYSE (E436)

[24KT]

Your logic implies every Tom Dick and Harry should be able to own tanks, rocket launchers, land mines, fighter jets and m 50 cal machine guns.

My logic tells me that a people living under a constant decline of freedoms had better have the ability to defend themselves against any entity that would seek to destroy their country. Gold plays an important part in economic self defense against the global currency trends of paper money debasement.

Thats about as logical as buying gold implanted on a credit card.

Karatbars doesn't sell gold implanted on a credit card.

The only credit cards we issue are the customized Karatbars Mastercards used to pay affiliate commissions and/or residuals on monthly gold sales, or provide quick liquidity to account holders who desire to take advantage of the highest guaranteed buyback price for any gold they hold in their accounts.



The little gold piece you see on the Mastercard is a microchip to facilitate ATM and point-of-sale transactions.
The Karatbars Mastercard may at some point in the future contain a gram of gold embedded in it, but at the moment it does not. If you're going to mock or disparage something, ...then at least know the facts rather than make silly assumptions.

The gold that Karatbars does sell, when delivered, comes embedded in a plastic card that is the size of a credit card for convenience. The credit card sized plastic sheath also provides the protection necessary for the gold ingot piece because 999.9 pure 24KT gold is extremely soft. Unlike other coins & bars which add various alloys to make them durable, Karatbars gold is the purest form of gold available. The card also acts as a certificate of authenticity verifying the weight, purity, as well as it's production via an LBMA GDL refinery.



And if the idea of gold embedded in a plastic card, complete with attached security features is so ridiculous a concept, why has UBS chosen to follow our lead by producing 1 gram weights embedded in a plastic card?



Evidently there is a demand for small weight gold. It is no longer for those who cannot afford to purchase larger weights. More and more people are waking up to the importance of owning small, transaction friendly weights of gold as a protection against currency debasement.

FOCUS: Small Gold Coin, Bar Will See Only A Temporary Shortage
By Debbie Carlson of Kitco News
Thursday April 25, 2013 2:30 PM

(Kitco News) - Gold dealers were caught off-guard by the public’s rush to buy small coins and bars in the wake of one of the sharpest-ever drops in the price of gold in mid-April, as many dealers had only limited supplies on hand when demand surged.

That’s led to sharp rises in premiums over spot gold prices in many parts of the world, particularly in Asia and the Middle East as bullion dealers try to avoid completely running out of stock. The demand is strongest for the smallest-sized denominations,...

http://www.kitco.com/reports/KitcoNews20130425DeC_1.html

[24KT]

You mis understood...majority won't buy it because they are ignorant, until its too late.

...

If you don't believe in it...don't buy it!

Wow Teddybear, I didn't know you played basketball. I'd say that was a definite 3 pointer!

[24KT]

Tedim disagrees with you and with your business, as he said earlier that buying physical 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 value free falls while inflation skyrockets.

You mis understood...majority won't buy it because they are ignorant, until its too late.

...

If you don't believe in it...don't buy it!

Hey Loco, I notice you don't have an avatar. Maybe I can help you resolve that? Will this one do? 

[24KT]

Everytime gold has had a severe manipulated takedown like the one we just experienced, we have seen it rebound back by at least 36%. It'll be interesting to see how much further it goes up as well as how quickly. I think there could be some incredible volatility from here on out, ...but it may not be the case. I don't think central planners want to see it shoot up too fast, because they'll lose control, and this latest stunt has clearly backfired on them. But if gold does do what I think it's going to, physical gold just might breach it's previous high of Sept, 2011 and go over the $2,000 mark a lot sooner than anyone expects. I'm beginning to wish I had taken avxo up on his bet. j/k. avxo. I'm secretly hoping the gold cartel orchestrates another successful takedown, ...but hopefully doesn't blow up the economy in the process. The lower they push the price of paper gold, ...the more of the physical I'll be able to accumulate, both out-of-pocket, and FREE.

[24KT]

Sprott - Incredible Global Gold Rush Triggers $3,000 Target
April 28, 2013



Today billionaire Eric Sprott told King World News that the incredible global gold rush we are witnessing right now has triggered a $3,000 price target for gold.  Sprott also spoke about the extraordinary events we have just witnessed in these key markets and what it means going forward.  This is the second in a series of three written interviews with Sprott that will be released today.  Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in part II of this remarkable series of interviews.


Eric King:  “We’ve been discussing quite a bit on King World News the desperation of the central planners, and especially when we saw the very unnatural action taking place in gold and silver.  When you see that kind of desperation, Eric, what does it tell you?  Because it’s become more pronounced than we’ve ever seen it.”   

Sprott:  “It’s just pure insanity.  When gold and silver got hit, gold traded about 120% of its annual production in one day (in the paper market).  We had offerings of 25% of the world’s mine production at one time, and who in the hell would have 25% of the world’s mine production available for sale in a minute?  And who would want to sell it in one minute?  It’s just ridiculous....

“So we see all of these paper (trading) volumes going through that bear absolutely no relationship to what’s going on in the physical markets.  As you know I have always been a proponent of the fact that supply in the gold market was way less than demand, and by a very large factor.  I think demand exceeds supply by at least 60%.  The central banks are surreptitiously supplying that gold, and ultimately they will be running on fumes.

When we hear about the LBMA not willing to deliver gold, and JP Morgan’s inventories at the COMEX have gone from 2.4 million (ounces) down to 160,000 ounces, it just makes you realize that all of this paper trading means nothing.  It’s the real physical market that you have to rely on. 

Everything I believed in keeps pointing to more and more buying.  God forbid that I might be able to say that investment demand might go up 100% this year because everyone is buying gold.  Where would it come from?  There is already a shortage.  So it’s just pure insanity. 

I think we will look back at the gold chart and you will see this panic selling at the bottom and (we will be at) new highs in the market.  We will realize when we breakout through $1,920, and we got down to $1,320, it’s going to count for the gold price being another 50% higher.

We are going to have an excellent shot at $3,000 gold because this thing is totally sold out here based on the action of the Friday and Monday of the previous weeks.  The whole exercise backfired.  If it was central bank manipulation or somebody trying to break the market, it totally backfired.

I can’t believe that I can say to you that the US Mint has sold 1,000% more gold this month, than April of last year, and the month is not even over.  I’m shocked that I can say the UK Mint has sold 200% more.  You hear numbers out of China and India of hundreds of percent differences.

I mean these are staggering developments in a market where the supply has been essentially fixed for 13 years.  The mining supply went down last year.  Mining supply will go down this year, and yet we see a huge surge of physical buying all over the place.  This has been a wonderful response from people who realize the ridiculousness of what the central planners are doing.”


Eric Sprott predicts $3,000 Gold  <-- click me to hear the full interview


Eric Sprott: Chairman, CEO & Portfolio Manager of Sprott Asset Management - Eric has over 40 years of experience in the investment industry and manages over $10 billion.  He has been stunningly accurate in his writings for over a decade, and is one of the most respected industry professionals who accurately foresaw the current crisis. Eric chronicled the dangers of excessive leverage as well as the bubbles the Fed was creating, while correctly forecasting the tragic collapse.  Sprott Asset Management is one of the top firms in the world. The firm has become well known not only for its performance, but also for creating a gold and now silver trust.


Bio - Eric Sprott, CA
Chairman, Chief Executive Officer & Portfolio Manager

Sprott Canadian Equity Fund; Sprott Energy Fund; Sprott Hedge Fund LP & LP II;
Sprott Bull/Bear RSP Fund; Sprott Offshore Fund Ltd.; Sprott Capital Fund LP
Eric Sprott is Chairman of Sprott Inc., CEO, CIO and Senior Portfolio Manager of Sprott Asset Management LP and Chairman of Sprott Money Ltd. Eric has over 40 years of experience in the investment industry.  He has been stunningly accurate in his predictions including foreseeing the current financial crisis. He chronicled the dangers of excessive leverage, as well as the bubbles the Fed was creating, while correctly forecasting the tragic collapse of the housing and financial markets in 2008.  Eric's predictions on the state of the North American financial markets as well as macroeconomic analysis have been presented in a monthly investment strategy newsletter entitled "Markets At A Glance”.

Awards and Accolades:

November 2010, Absolute Return Awards: Sprott Capital LP awarded Fund of the Year

October 2008, HFM Week Best Long/Short Hedge Fund globally: Sprott Offshore Fund Ltd. selected

April 2008, Barron’s World’s 75 Best Hedge Funds: Sprott Offshore Fund Ltd. and Sprott Opportunities Hedge Fund LP selected

November 2008, Absolute Return Awards: Nominated for Management Firm of the Year and Top U.S. Equity Fund for Sprott Hedge Fund LP

December 2007, Eric Sprott named Fund Manager of the Year by Investment Executive, a widely circulated publication for Canadian financial advisors.

October 2006, Ernst & Young Entrepreneur of the Year Awards: Eric Sprott recipient of the Ernst& Young Entrepreneur of the Year (Financial Services) and Ernst & Young Entrepreneur of the Year for Ontario.

September 2006, MarHedge Annual Performance Award: Sprott Offshore Fund Ltd. winner under the Canada-Based Manager category.

December 2004, Canadian Investment Awards: Opportunistic Strategy Hedge Fund Awarded to the Sprott Hedge Fund L.P.

Our Companies

Sprott Asset Management LP (SAM) is the investment manager of the Sprott family of mutual funds, hedge funds and discretionary managed accounts. Sprott Asset Management offers a best-in-class investment team led by Eric Sprott, world renowned money manager. The firm manages diverse mandates united by the same goal: delivering outstanding returns to investors. For more information, please visit www.sprott.com.

Sprott Private Wealth LP provides customized wealth management to Canadian high-net worth investors, including entrepreneurs, professionals, family trusts, foundations and estates. For more information, please visit www.sprottwealth.com.

Sprott Consulting LP provides active management services to independent public and private companies and partnerships to capitalize on unique business opportunities. The firm offers deep bench strength with a highly-talented and knowledgeable team of professionals who have extensive experience and a proven ability to design creative solutions that lead to market-beating value improvement. For more information, please visit www.sprottconsulting.com.

Sprott U.S. Holdings Inc. offers specialized brokerage and asset management services in the natural resources sectors.

Sprott Global Resource Investments Ltd., our full-service U.S. brokerage firm, specializes in natural resource investments in the U.S., Canada and Australia. Founded in 1993, the firm is led by Rick Rule, a leading authority in investing in global natural resource companies. More than just brokers, the team is comprised of geologists, mining engineers and investment professionals. For more information, please visit www.sprottglobal.com.

Sprott Asset Management USA Inc., offers Managed Accounts that invest in precious metals and natural resources. For more information on our brokerage services, please visit www.sprottusa.com.

Sprott Money Ltd. is a leading precious metals dealer selling gold and silver coins and bars online. The company was founded in February 2008 and is privately owned by Eric Sprott. As one of Canada’s largest owners of gold and silver bullion, the company’s goal is to facilitate ownership of precious metals no matter how big or small the portfolio. For more information on Sprott Money Ltd., please visit www.sprottmoney.com.


I don't listen to guys who manage billions of dollars of other people's money.
I prefer to listen to guys who manage billions of dollars of their own money.

[Chadwick The Beta]

"I prefer you refer to me as 24KT" 

 

[24KT]

"I prefer you refer to me as 24KT" 

 

Actually, I'm kinda vibin' to Goldilocks lately. 

[24KT]

In other Global Currency Trends ...  
 
Sinclair - The Elites Frightening Plan to Control The Masses
April 28, 2013



Today legendary trader Jim Sinclair told King World News that the elites plan to use the coming financial chaos and destruction to control the masses.  Sinclair spoke about the “Great Unwind,” what this means for gold, and how investors can protect themselves from what is in front of us.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.

Sinclair:  “The enormous violence in the markets is obscuring a very clear message.  The message from Cyprus, that has also been written in various white papers and signed by central banks, the FDIC, Bank of England, and the BIS, is to get out of the system.

What happens to readers around the world is of primary importance to King World News and to myself.  The meetings that I have already had, and future meetings still to take place around the world, have been for the purpose of keeping investors from having large portions of their wealth destroyed or stolen from them.



People have to understand that going forward large deposits by ‘non-insiders’ are no longer going to be permitted.  The goal of this pre-arranged wealth destruction is to equalize the ‘new rich’ and the ‘upper middle-class.’  Those not on the inside, with the right families and the right companies, are not going to be tolerated in the ‘New Paradigm’ of currency and metal that we are now moving into.

So the only means of being able to protect yourself will be to understand the answer to the question, ‘What is the final end game for the most powerful families that are in fact running countries and markets?’....

“Take into consideration that the recent and violent drop in the gold price, especially if followed by an equally violent recovery, was primarily for the transfer of physical gold from financial and other entities to the families that are running the Western governments and financial world.



In my opinion that’s exactly what has just happened.  A very strong and immediate recovery, that is sustained, makes the message clear that gold is an ingredient for these wealthy families to maintain their wealth and power, not simply over a generation, but over multiple generations.

We are coming very close to a point where the manufacturing of unprecedented amounts of fiat currency has to have a global impact.  You simply can’t increase the amount of currency as violently as what been done without having to face the consequences, one of which is the collapse of the purchasing power of those fiat currencies.

The massive and ongoing currency war the world has been witnessing may come to a head much sooner than any of us realize.  So investors must have an understanding of how the system will be preserved, and eventually reset, in order to survive the coming wealth destruction.



Maintaining significant deposits inside banks in the current financial system is setting up that portion of your wealth to be destroyed or stolen from you.  Whereas maintaining physical gold inside a private storage, outside of the banking system, is one of the ways you can survive what is coming.

Physical gold will be the primary beneficiary of the ‘Great Unwind’ that is still in front of us.  This is why the latest attempt to smash gold in the paper market was met with one of the most ferocious physical buying sprees the world has ever seen.  

Owners of physical gold may end up being the quality non-North American gold companies, as well as individuals which move out of fiat money and into physical gold while the price is cheap.  From now on every dip you see in paper gold will be met by a corresponding move by savvy investors around the world to trade in their fiat money for physical gold.  

The time to get out of the system is immediately in order not to be destroyed by the ‘Great Equalization’ that is about to take place.  This phase will serve to bring humanity to its knees.  It is going to be about control of the masses, for the benefit of the few.

Derivatives will be a primary tool for the destroyers of wealth, and bank deposits all over the Western hemisphere will be invaded.  So investors must get out of the system and have physical gold and gold related investments in order to survive what is still to come.”    

Eric King:  “Talk about what this will this mean for the price of gold going forward.”

Sinclair:  “The price of gold is going to significant new highs, and that drive to new highs will be as a result of a continued move into physical gold.  Because the manipulative tool of the paper market has been revealed as a fraudulent determiner of price, the physical gold price will now be free to move to levels that even you and I will be surprised at, and it will be maintained at that level for generations.”

[24KT]

In other Global Currency Trends ...  

Sinclair: Day of Financial Infamy As Cyprus Depositors Are Flushed
April 28, 2013



Today legendary trader Jim Sinclair told King World News that today is a day of financial infamy as Cyprus depositors have now officially been flushed.  Sinclair also stated that history will show this day as being as serious as the flushing of Lehman Brothers.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.

Eric King:  “Jim, we now know the answer to the ‘Cyprus Solution.’”

Sinclair:  “Yes, Cyprus depositors have now been flushed.  The Bank of Cyprus, the island’s largest bank said it has converted 37.5% of deposits exceeding 100,000 euros into a Class A share, with an additional 22.5% held as a buffer for possible conversion in the future.

Another 30% will be temporarily frozen and held as a deposit.  So the amount of money that has been taken from the Cyprus depositors is in all practicality almost their entire accounts.  Major depositors funds have now been taken in grand style.

Depositors everywhere are now defined as lenders to the banks.  Today is a day of financial infamy.  History will see this event as serious as the flushing of Lehman Brothers....

“Lehman Brothers was flushed to create a flow of huge funds into the financial system.

The flushing of Cyprus was done to steal massive funds from depositors.  The major percentage of their funds taken were replaced by worthless stock in a bankrupt bank.  Up to now everything in Cyprus was speculation as no definitive action had taken place.  Now it has.

Are you a depositor in your bank?  Then know you are now lending your money to that bank with virtually no return.  So the bank earns big money and you get none of it, but assume all of the risk.  If the bank goes broke because of their criminal activities, you lose your money.

They’ve taken an accounting title of ‘unsecured creditor,’ and now converted that, in the elites’ best interest, to ‘lender,’ for which there is no supporting case law whatsoever.  Get out of the system now or you will pay the penalty.  Depositors everywhere will have their money stolen at some point.

Gold is for saving.  Gold producers with low cost and low overhead are the only holders of the new supply of physical gold.  The price of gold will not only reach our original target of $3,500, but it will greatly exceed that level as the fires that are burning in the financial world turn now into an inferno, but physical gold will allow you to survive the massive blaze and financial destruction.”

[24KT]

Why Did Silver & Gold Collapse?
Mike Maloney and Chris Martenson

[24KT]

Gold Standard 2013
Breaking Inequality - Why you will always be poor

[24KT]

In other Global Currency Trends ...

Suppliers & Bank Clients Denied Gold As Shortage Intensifies
May 24, 2013




Today Egon von Greyerz shocked King World News with more stunning news regarding clients having problems getting their physical gold out of Swiss banks as well as other major banks as the gold shortage intensifies.  Greyerz also discussed the fact that suppliers cannot keep up with demand and the reason will surprise KWN readers around the world.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this remarkable interview....


Greyerz:  “Eric, at our company we are hearing more and more stories about banks not delivering gold that belongs to the client.  We are talking about Swiss banks here once again.  One client went to a Swiss bank to inspect his gold and the client manager said, ‘You can’t see it, but it looks like this,’ and he took a gold bar out of his drawer.

And the client showed me that he had a statement showing ounces of gold.  Well, you don’t own physical gold in ounces in Europe.  You own gold bars either in grams or in kilos, but not in ounces....

 "You know automatically that it was paper gold the client owned because it was in units of ounces from a European bank. So he didn’t have any physical gold, but the man in the bank told him that he did have physical, but he just couldn’t show it to him.  

Another client went to a major Swiss bank and he wanted to inspect his gold, but the account manager said, ‘I can show you the documents, but we are not allowed to show you the physical.’  And this was a major Swiss bank.

And just today we heard from a client that was going to take his gold out of two major Swiss banks.  This bank told him that he could only take out 200,000 Swiss francs worth of gold per annum.  They started off by telling him 50,000 to 80,000 Swiss francs of gold could be taken out, but eventually they went up to 200,000.  The other bank told him that he could not take out more than 80,000 Swiss francs worth of gold per year.

So clearly these banks don’t have the physical gold.  If they do, it’s very strange they won’t show it to clients and the clients are not allowed to take it out of the bank.  So it’s clear that many banks don’t have the gold.  

The bottom line is the banks don’t have enough physical gold to cover the commitment to their clients, and governments also have a lot less physical gold in the West than they claim to have.  As the paper market is 100 times larger than the physical market, it means that paper market has virtually no physical gold to back it.”

Greyerz also added: "the latest shocking news from suppliers is they are having a very difficult time getting hold of physical gold.  Therefore, this week again they increased their spreads on physical gold.  So again, Eric, my message is very clear:  Investors must hold physical gold outside of the banking system because this paper market will explode one day.”


Wow!  First Germany, then Jim Sinclair, then Arn-Ambro clients, now Egon Von Greyerz...  soon everyone is going to know someone who can't get actual physical delivery of the gold they thought they had, ...the gold upon which they have been paying storage fees for years. When that happens, people will discover these ETF's are not even worth the paper they're not printed on, ...and we will have a decisive de-coupling of physical from paper. It's gonna be a wild ride!

[avxo]

4) You can acquire it for FREE... zero out-of-pocket cost through a system that empowers you to be on the right side of the cash flow quadrant. (B or I quadrant)

Anything you can "acquire" for free has a value - it's exactly zero.

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Garçon! I'll take 500 golds please! It all makes sense to me now, after seeing this crude Microsoft Paint infographic! And make it fast, before I end up having to get a J.O.B.!

5% of the population operates on the RIGHT side of the Quadrant. They have 95% of the wealth.

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