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There are two major developments in the past two weeks that are
pushing gold to new highs, with gold reaching $1825/oz. this afternoon.
First, GATA, the Gold Anti Trust Action
Committee, knows more about the gold industry than any other organization on
earth, in my opinion. The last time they hosted two other conferences, few
attended, but enough did so that the gold price exploded both times. Their
conference before the last one was a few years ago in Dawson City, when gold
was about $438, and gold exploded up to about $750 without much of a pause,
and only 100 people attended their show. But the quality of the people was
very high! A billionaire gave a presentation, Hugo Salinas Price. And Adrey Bykov, the personal
economic advisor to Putin, the president of Russia at the time was also
there.
Last week, GATA hosted a London conference to 400 people!! These
people are now educated far more about gold, and are likely influencing tens
of billions of dollars to buy gold. This event alone could push gold prices
to $3000 within 6 months, especially given that the gold market remains a
tiny $136 billion annual industry.
To learn more about GATA, see GATA.org. I'm sure they will make the
content of their conference available to purchase on DVD's sometime soon. Get
on GATA's daily email dispatch list, at the top right of the page, here: http://gata.org/
Also, be sure to sign up for a free two week trial at www.lemetropolecafe.com and
read the daily Midas report by Bill Murphy, the Chairman of GATA, to really
learn what's going on in the gold world.
The major systemic story in the gold world is that gold is often
leveraged 50 to 100 to one. This means that the major banks and brokerages
will trade, or sell, up to 50 to 100 oz. of gold for every 1 oz. that they
have in their possession. This is similar to fractional reserve banking,
which they also do, where they will only have $1 of cash on deposit to back
up, up to $100 worth of deposits at their bank. This fraud only works so long
as people are too scared to take delivery, and guard their own cash or
metals. Every now and then, people wake up, and demand their cash or metals.
The difference with metal is that there is no "lender of last
resort", like with the Federal reserve who can print money to bail out
the banks. The new mine supply of metal is simply not enough to cover the
amount of metal on deposits. But what's worse, is that nations have printed
up hundreds of times as much paper money, more than the gold that ultimately
backs up their currencies. Gold no longer backs up Federal Reserve notes, and
even if it did, US gold has not been audited in the last 50 years, and even
if it exists, it would provide only about a 1% backing to the currency. (Hence, the
100 to 1 leverage).
The second major development in the gold world is that this week,
Venezuela is now trying to obtain their gold, from out of major western
financial institutions that might not have the gold.
http://libertycpm.com/2011/08/as-chavez-pulls...sical-starting/
Venezuela is trying to obtain 99 tonnes of
gold from the Bank of England. The Bank of England sold half their own gold,
selling about 250 tonnes out of 500 tonnes, around 1999-2001 back at $250/oz. to suppress the
gold price, and to "earn" an interest rate on foreign currencies.
The Bank of England might not even have Venezuela's gold!
I wonder if Venezuela is considering a military response to
institutions like JP Morgan if they are not paid back?
Remember, it was France who broke the back of the gold manipulation in
1971, by trying to convert gold certificates into real gold. Back then, the
certificates were called US Dollars! That event started gold on it's bull market move from
$35/oz. to $850/oz.
If history is any guide, gold might begin a major move up over 25
times, up to about $40,000/oz. over the next ten years now.
Here's another two authors who are predicting a similar move in the
gold price, due to outstanding fundamentals such as supply and demand of both
gold and all kinds of paper money:
TOO
LATE TO JUMP ON THE GOLDWAGON?
Egon von Greyerz
Matterhorn Asset Management AG - 15 August 2011
As always, I think silver remains the better investment, better than
gold, because so much silver has been utterly consumed and lost due to
industrial demand as it is the best conductor of electricity, better even
than gold.
Now is the perfect time to buy either silver or gold.
Jason Hommel
Silver Stock
Report
I strongly advise you
to take possession of real gold and silver, at anywhere near
today's price, while you still can. The fundamentals
indicate rising prices for decades to come.
Follow me on facebook I have 3500 friends, and I hear there is a limit
of 5000!
http://www.facebook.com/jason.hommel
Or Youtube!
http://www.youtube.com/user/bibleprophesy
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