More Reader Comments On "Get Out Of Gold Now While It's High"
Earlier Post Part 1 Part 2 Part 3
Alan: Jared, it’s an honour to offer support. I provide support because your analysis, frankly, is easy to support. Yes, it requires an abnormal amount of reading and digesting of material, hahah! But, your multilateral transition thesis has many friends [easily determined by those that are willing and have the time to read].
For inquisitive readers, here’s one of my secrets It’s always about how you research/google and not necessarily what you are trying to research/google.
With regards to Philosophy of Metrics, every PoM article I read by JC I try to find something, some term, that immediately stands out to me [sometimes it can take days ].
Meaning, I try and find a search string that will enable me to either:
– better understand the theme of the article written along with it’s contents.
– better understand a particular term or reference made within the article.
– offer contrast to what the article presents [for balance].
Or that might;
– define any existing predominant theories, by existing scholars, that support the subject matter.
So, for some really quick examples – here are some search strings I’ve picked out of JC’s articles:
A. the first and the most obvious is RENMINBI DEMAND. What’s really interesting from a google/research point of view is just how quickly I can gather several different results:
A.1 : RENMINBI DEMAND
A.2 : RENMINBI DEMAND
A.3 : RENMINBI DEMAND
[this might be really obvious for some observers, but I’m not taking the time to offer this for you advanced P.I. peeps this is for those who could care for some googling help]
Notice how the same search term above –RENMINBI DEMAND – generates different search results depending on how we search this term or expand upon it with time frames or different google criteria – Web, News, Images,Video. [sorry, I’m out of time. B & C examples are pending
Bausser (@bausser) if I may: here is a link that shows how all markets can be rigged: http://www.nanex.net/aqck2/4661.html
here is a link that show how it is done in the gold market: http://www.gata.org/node/15490
here is a link that points out how the COMEX futures market caps gold prices by simply creating new contracts out of thin airhttp://www.tfmetalsreport.com/blog/7241/futures-market-fraud
It seems to me that if you do not see that gold price is illegally manipulated by various parties with various motives on the COMEX your assessment of the near and midterm will be different than if you do see it.
If it is manipulated then the question really is how long can it last and in this regard the depletion of physical bullion in the COMEX vaults will be relevant: http://www.tfmetalsreport.com/blog/7287/rats-and-sinking-ship?page=1#comments
More of the details may soon be revealed when the Gold Fixing Antitrust and Commodities Exchange Act Litigation commenceshttp://www.law360.com/articles/586999/silver-fixing-suits-against-big-banks-centralized-in-ny
The Gold Antitrust Class Action Lawsuit alleges illegal manipulation of the gold and silver fixing on the LBMA and links the manipulation of the PM spot prices to the derived COMEX futures prices
JC Collins: Gold manipulation is factored into my analysis. Unfortunately I don’t see it having the huge impact that many promote. As you said, manipulation takes place everywhere. I don’t see changes in the gold market, whether paper or physical, having any earth shaking effects. Sorry.
Tony Grqupp: Greetings JC; You asked and here you are; The price of gold was capped by the UK back in 1999… Sir Eddie George;
“”Therefore at any price, at any cost, the central banks had to quell the gold price, manage it””
Shanghai Gold Deliveries and Deliveries on the Comex – The ‘Rest of the World’ According To Bloomberg
Gresham’s law is an economic principle that states ‘when a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.’
Notice the ‘sea change’ that occurred with Shanghai gold flows starting in 2013.
And notice how the Western financial media views this phenomenon.
China Savers Buying Gold As ‘Rest of the World’ Exits
The ‘Rest of the World’ apparently does not include India, Russia, Turkey, much of the Mideast, and the European central banks who have been busy trying to repatriate their gold from New York and London.
I have included a chart showing ‘Silk Road’ gold consumption below.
In addition to all the wealthy individuals in the US and UK who are buying it for their own private vaults.
Who are the idiots who own most of the gold in the central bank crowd anyway? The numbers are a bit hard to come by because for some reason the bankers are notoriously secretive in response to questions.
The ‘official gold reserves’ of all central banks in the world is also included below. And the biggest goldbugs are the US, Germany, Italy, France, the IMF, Russia, China, Switzerland, Japan and the Netherlands.
True, a few central banks have disgorged some of their gold. The UK sold quite a bit of their sovereign reserves at the bottom, the lowest price for gold in dollars. Brown’s Bottom it was called, presumably to rescue some ‘trading houses’ who were caught short.
“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.
>>>Therefore at any price, at any cost, the central banks had to quell the gold price, manage it.”<< Sir Eddie George, Bank of England, September 1999
One might wonder what has some of the NY and London banking crowd so worked up? What have they gottne themselves into now? Their spokesmodels have been quite active in the media lately.
I am sure the truth of this will come out some day. Most likely over some long weekend.
This is how Nixon unilaterally took the US off the international gold standard, and declared a new fiat regime for 'the rest of the world' under the rule of the US dollar reserve, thereby rewriting the Bretton Woods agreement by executive decree.
Is it true that only a few 'goldbugs' really care about this and no one else?
Most of the central banks know the truth of thing. They are just keeping quiet about it for now, for whatever reason. I suspect that they are receiving pressure related to the antics of one or more of the Banks.
"Gold is unique among assets, in that it is not issued by any government or central bank, which means that its value is not influenced by political decisions or the solvency of one institution or another."
Salvatore Rossi, Central Bank of Italy, 30 Sept 2013
Do these fellows take us for complete fools? Really?
JC Collins: No links provided.
Dane: Perhaps these are the links Tony forgot to post. I do that all the time with my emails (forget the attachments that is)
“Sir Eddie George, Bank of England, September 1999”
“Salvatore Rossi, Central Bank of Italy, 30 Sept 2013”
Following on the Jesse’s crossroad cafe trend we can find the charts there also.
Raymond36: Exclusive: China’s yuan may enter IMF basket with lower share – sources
I hope the link works It was in Reuters yesterday
JC Collins: This was the link you wanted to share:
I would interpret this as political pressure to decrease the weighting of the RMB from the 14% to 16% range down to 10%.
Dane: Oh man I almost missed your update on the Fed expediting the meeting! I’ve lost sight JC what is the consensus, to begin the raise of interest?
Bruno de Landevoisin: To my noble adversary J.C. In response to your perceptive and astute assertion regarding gold’s many short comings as a monetary system, I offer the following response…..
I do a agree the Gold standard has certain limitations, and has certainly been corrupted on many occasion, but so has democracy itself, and yet a self governing democratic Republic, even with its many shortcomings, remains the best form of governess. Absolute Purity is not of this world….
However, despite notable limitations, Gold remains the most earnest and least corruptible backing for honest and fair money.
Money is stored labor, labor is part of life. To debase money is to devalue life itself.
Same as it ever was………………..
Bruno de Landevoisin: Dear Alan, I do stand corrected before you, the use of Gold as honest money by the oldest human civilization goes back only a mere 3,000 years.
I apologize for the exaggerated hyperbole on my part;-)
The most authoritative book on Gold as money ever written may be helpful to you.
“The Once and Future Money” by Nathan Lewis.
JC Collins: I would rank The Power of Gold: History of an Obsession by Peter Bernstein as the more factual and realistic of the two.
Alan: Thanks very much for the book recommendations Bruno and JC For a review of this really interesting content:
The Once and Future Money
The Power of Gold: The History of an Obsession
I’d also like to bring readers attention to the value of Google Scholar. For some examples:
the ancient history of gold as money
Substitution Account Reserve Diversification
Comments may be made at the end of Part 5 Thank You