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Showing posts with label physical gold. Show all posts
Showing posts with label physical gold. Show all posts

Wednesday, February 8, 2017

Did the Shanghai Gold Exchange force London to reveal its reserves and try to compete with a new physical market?

In late 2015, China opened up what would soon become the world's largest physical gold market, leaving both London and New York to hide behind their paper trading futures exchanges.  And as more and more action has moved into the Pacific Rim over the past year and a half, one has to ask the question if this is the reason why London suddenly chose to reveal their physical reserves last weekend, and with the intention of opening up their own physical market to compete with Shanghai?

In a move to increase transparency, London's gold bullion market is considering revealing the amount of bullion held in vaults within the city for the first time in its history. According to recent reporting by the Financial Times, this move would include gold bullion held by the Bank of England as well as other institutions. The leaders in the debate over transparency shifts are the London Bullion Market Association. Why might London be considering such a shift at this point in time, and what could it mean for the future of gold, both in England and around the world? 
According to the report, many of the largest banks around the world are pushing for gold to be traded on an exchange, a marked shift from the current bullion market system. The London Bullion Market Association argues that an exchange would work to convince regulators that "banks trading bullion should not have to face more onerous funding requirements." The reason that this shift is necessary, the Association feels, is that London gold is traded directly between sellers and buyers, meaning that essentially no data of those transactions makes it out into the broader analytical world. The Association has estimated that daily gold trades in London may total $26 billion, although that number is difficult to confirm and there are no official data points to cite. 
The Association believes that moving toward an exchange and documenting the transactions of gold bullion in the city will provide greater transparency. How it might affect the market and the gold bullion prices and trade levels in particular is a bit more difficult to say. If London moves to trade bullion through an exchange, will other cities or countries follow suit? Some analysts believe that this could be the beginning of a much larger trend. - Investopedia
In addition, it is rumored that Dubai is in the process of expanding their physical gold markets following January's inclusion of gold investments into Sharia Law Finance.  And with the potential of millions of new customers seeking to purchase physical gold rather than paper futures, it is likely that several markets will look to cash in on the New Gold Rush, and in doing so will have to forego the years of secrecy that they have cultivated in disallowing true audits of their gold reserves.

Monday, October 31, 2016

Shanghai Gold Exchange expands reach into Dubai as the DGCX will now use Yuan benchmark instead of London or Comex

On Oct. 31 China's Shanghai Gold Exchange (SGE) signed an agreement with the Dubai Gold and Commodities Exchange to begin using their Yuan denominated price benchmark instead of the long-standing London and New York gold fix price.

In addition, this new agreement is just the first that the SGE is undertaking with commodity exchanges around the globe as the world's largest physical gold market begins to takeover pricing of metals in more markets.

SGE, world largest physical bullion exchange, says in other talks about similar cooperation 
Shanghai Gold Exchange and Dubai Gold and Commodities Exchange signed an agreement on Friday in Shanghai which makes the DGCX the first foreign exchange to use the SGE's renminbi-denominated gold benchmark. 
The SGE is in talks with other exchanges about similar cooperation, according to an SGE circular. 
SGE is the world's largest physical bullion exchange. The renminbi-denominated gold benchmark, also known as Shanghai Gold was launched in April this year. It is one of China's efforts to earn more say over pricing of the precious metal and increase its influence in the global gold market. 
China is among the world's largest producers, consumers and importers of gold, and it deserves pricing power that matches its position. It should have more say in an industry long dominated by London, which sets global spot prices, said analysts. - China Daily

Monday, September 5, 2016

As central banks funnel fiat wealth to the 1%, gold is becoming the opposite trade to funnel wealth to the 99%

Last week, the world's 'Bond King' Bill Gross continued his message where he proclaimed that stocks and bonds were invariably crap, and that the only true wealth protection right now is in gold and silver.  And at the heart of this clarion call is the fact that he believes the central banks are now in an unavoidable abyss where they not only have to continue to print massive amounts of new money, but also buy up every possible paper asset simply to keep the system going.

But in doing this, the central banks have also had to reverse a trend they were following last year when a large portion of them were out buying physical gold on the open market.  And since the majority of them are now net sellers of the metal at the same time they are net buyers of paper assets, it is creating a unique dichotomy where instead of simply using their policies to funnel wealth to the 1%, they are also opening the opportunity to funnel wealth down to the other 99%.

Not only is gold an auspicious color, culturally, on the mainland, but the People’s Bank of China has long been a major hoarder of its bullion form. Less so, though, as central bankers from Beijing to Brasilia cut gold purchases - by 40% in the second quarter alone. 
While monetary authorities still hold almost 33,000 metric tons of the precious metal, that marks the third consecutive quarterly drop and the longest streak in five years.
And yet, the gold price is rising - up 24% so far this year - even as the biggest buyers back away. What gives? For central banks, waning demand seems partly technical in nature. Weak global exports mean China and other major nations have recorded fewer cash inflows of the kind that normally drive gold purchases. The bigger question, though, is whether G20 leaders are internalizing the three reasons why negativity about the global outlook is driving gold. 
One, of course, is genuine concern about a global financial system still working through the trauma of 2008. Bond guru Bill Gross is making the rounds to explain the second: how central banks, including the Federal Reserve, “all have mastered the art of market manipulation” at the same time the Ph.D. economists on which they rely for advice “have lost their way.” In other words, lingering fear from 2008 and too much money chasing too few investments are combining to pump up safe-haven assets, and excessively so. - Barrons
Central banks are now selling physical assets to protect the new fiat money they are printing which is then being used to buy overvalued paper assets that invariably profit the 1%.  But in doing this they have kept the price of gold down where it can be affordably purchased by the 99%, and where the masses outside the ponzi paper scheme can have a choice and option to both protect and grow their wealth as the bank's failing policies come to a climax.

Sunday, September 4, 2016

As the world rushes to hoard cash, and gold supplies dwindle, what might a frenzy on gold buying look like?

Two interesting events are taking place right now in different parts of the world that threaten to create a frenzy not unlike the bank runs we saw in the 1930's and again following the bursting of the Housing Bubble in 2007.

Trust in banks have seriously eroded in places like Japan and Germany to the point where average people are making a run on home safes, and moving their cash out of financial institutions.  The root cause of course is the advent of negative interest rates and the growing fear that insolvent institutions will soon be forced to conduct bail-ins to stave off bankruptcy.

But it is not just a run on cash that is occurring in different pockets of the market.  Last week demands for delivery of physical gold were met with severe resistance, and this is a signal that most paper gold ETF's are not actually backstopped with physical gold, and which could soon bring about a run that would skyrocket the price to well over $5000 according to well respected metals analyst David Morgan.


Economist David Morgan of The Morgan Report is one of the world’s best known silver investors. In the following interview with Future Money Trends Morgan discusses his personal experiences during the last major run-up in gold, when it hit a price of $850 in early 1980. As Morgan describes it, there was significant panic buying during that time period, and should central banks and governments continue on their current course, we’ll see a similar endgame play out this time around: 
"What’s good for gold is the end of empire… And we’ve got governments that are failing… When these bond markets blow up further, that’s when you’re going to see a run to gold than we’ve already seen… 
Wait until the physical market freezes up, which could happen. I am not saying it would happen, but it could. With the worldwide demand and a failing currency across the world, where do you think people are going to go? They’re going to go to precious metals which have been trusted for thousands of years. 
If that were to occur, and I think it could happen… could you imagine the amount of money sitting on the sidelines in a panic mode that would go into the mining shares? It’s incredible. 
I saw it once… I saw what happened with gold and silver when it was a panic buy… My commodities broker was a woman. She worked for Dean Witter… She was very savvy… She would leave her office at lunchtime and go and buy gold at the local coin dealer… then after she closed her office she would stand outside her front door and sell gold coins to people who were lined up… believe it or not. 
That’s the kind of frenzy you get at the top of the gold market." - SHTFPlan

Friday, September 2, 2016

Duetsche Bank's failure to deliver physical gold from ETF request could become catalyst for price skyrocketing very soon

On Aug. 31, a German gold ETF known as Xetra Gold, and who's fund was underwritten by Deutsche Bank, sparked the first fail to deliver of promised physical gold since ABN Amro did so back in 2013.

Image result for gold if you don't hold it you don't own it
If you don't hold it, you don't own it
As Oliver Baron reports, those who ask for gold delivery at this moment, "could encounter difficulties." The reason is that according to Baron, a reader of GodmodeTrader "sought physical delivery of his holdings of Xetra-Gold. For this he approached, as instructed by the German Borse document, his principal bank, Deutsche Bank." 
At that point then he encountered a big surprise: the Deutsche Bank account executive informed the investor that "the service", is no longer offered, namely exercising physical delivery at Xetra-Gold, for "reasons of business policy" and therefore the order form provided by Clearstream Banking AG for exercising Xetra-gold is no longer available. 
Baron writes that since Deutsche Bank is no longer serving the physical exercising of delivery request of Xetra-Gold is remarkable, as Deutsche Bank is the "designated sponsor" as well as fiscal, principal and redemption agent of Xetra-Gold according to its prospectus, and as the explainer of how to exercise physical delivery also reveals. Even if one is a customer of another bank, Xetra-Gold should - at least on paper- guarantee delivery by way of Deutsche Bank, as the Deutsche Borse Commodities GmbH explains in its "process description for exercising units" - Zerohedge
But the question now that needs to be asked is, with so many investors buying into global gold ETF's at the same time others are buying physical metals, are these paper traded gold funds also vastly underfunded and subject to their own failures to deliver?  This assertion was brought up on Sept. 1 by Jim Rickards, author of The New Case for Gold and metals forecaster who believes that the gold price will one day soon climb to over $10,000 per ounce.
Last June, I visited Zurich and was able to meet with some of the most knowledgeable experts and insiders in the physical gold industry. In March, I visited Lugano where I met with the top executive of the world’s largest gold refinery. As a result of these visits to Switzerland, and other points of contact, I have been able to gather extensive information on the major buyers and sellers of gold bullion in the world and the exact flows of physical gold. 
This information about gold flows is critical to understanding what will happen next to the price of gold. The reason is that the price of gold is largely determined in “paper gold” markets, such as Comex gold futures and gold ETFs. These paper gold contracts represent 100 times (or more) the amount of physical gold available to settle those contracts. 
As long as paper gold contracts are rolled over or settled for paper money, then the system works fine. But, as soon as paper gold contract holders demand physical gold in settlement, they will be shocked to discover there’s not nearly enough physical gold to go around. 
At that point, there will be panicked buying of gold. The price of gold will skyrocket by thousands of dollars per ounce. Gold mining stocks will increase in value by ten times or more. Paper gold sellers will move to shut down the futures exchange and terminate paper gold contacts because they cannot possibly honor their promises to deliver gold. - Daily Reckoning
So, is the failure to deliver promised gold by Europe's largest bank, and one of the world's top financial institutions an anomaly, or the beginning of the end for the manipulated and fraudulent paper gold market that tells customers they are buying physical gold, but in the end only have paper promises that are only as good as the value of its ink and parchment?

As with all things in life, if you don't hold it, you don't own it.

Friday, July 15, 2016

Japan joins China in opening a physical gold exchange

The Tokyo Commodities Exchange (TOCOM) is joining with the Shanghai Gold Exchange (SGE) to become the second major physical gold market in Asia.  Beginning on July 25, the TOCOM will begin deliveries for spot contracts, and is the only gold exchange accepted for futures contracts in Japan.

Since Japanese bonds fell into negative yields, investors and consumers have been buying physical gold at incredible rates.  And now that their market will have an official gold exchange like the one that opened in Shanghai last year, the precious metal will become even more liquid and draw more customers into gold.

The Tokyo Commodity Exchange Inc. (TOCOM) has announced today that July 25th will be the start date of new Gold Physical Transaction, pending regulatory approval. Gold is the most actively traded commodity at the Exchange with both futures and options contracts listed. 
Simultaneously, TOCOM will introduce a delivery at settlement option for the Gold Rolling Spot contract. Originally a cash-settled contract, the change is expected to better serve investor needs. 
Financial markets fell in reaction to the Brexit vote and the world economy is turning increasingly uncertain. Hence, Gold is in greater demand as a safe asset that removes credit risk. It is also seen as an effective inflation hedge and superior for long-term asset protection. Additionally, gold provides portfolio diversification, since price movement tends to uncorrelated with equity and bond prices. 
With the launch of this Gold Physical, TOCOM is providing a single platform where investors can conduct spot trading or hedge in gold with transparent pricing. TOCOM is the only regulated exchange that operates a gold market in Japan, and continues to improve investor convenience. - Leaprate

Thursday, July 7, 2016

Most of the world still doesn't get it as money rushes into paper gold ETF's rather than physical metals

Money is an interesting thing.  First, people spend their lives trying to accumulate as much of it as possible but then hand off that money to a stranger with a title or Degree to 'protect' and 'grow' that money over the course of their working lives.

And secondly, people spend more time watching reality television per day than they do in learning to understand the very financial systems in which their lives are so tied to out of apathy, laziness, or misguided trust.

2008 should have been a wake-up call to most investors and especially those who have their money tied up in stocks, bonds, annuities, or other paper assets.  But just as remembrance in the events of 9/11 have faded away more than a decade after the attack, so too have people forgotten how fragile and corrupt the paper based Wall Street market system really is.

Which is why it should come as no surprise that the recent moves into gold and silver have primarily been done using paper based ETF's, and not through the purchasing of real and tangible metals which have no counter-party risk at all to the mechanisms of the financial system.

As Bloomberg notes, holdings in bullion-backed exchange-traded funds rose 4.1 tons to 2,001.4 tons on Wednesday, data compiled by Bloomberg show. That’s larger than the alleged gold reserves held by China (in reality China holds far more gold but it willing to only represent a fraction of its official holdings) the biggest consumer and a consistent central-bank buyer in recent months. The latest increase followed the biggest one-day gain since 2009 in the SPDR Gold Shares, the largest gold ETF. 
Global assets in the funds have surged 37 percent this year and prices are near a two-year high as slowing growth, negative rates in Europe and Japan and the likelihood that the Federal Reserve won’t hike further combined to boost demand. The U.K.’s vote last month to quit the European Union has added further impetus to that pro-bullion mix. Gold has likely entered the early stages of the next bull run, according to UBS Group AG, while ABN Amro Group NV says prices may hit $1,425 this quarter. 
“Investment demand has been very strong, with institutional buyers of ETFs the big gorilla in the room,” said John Butler, a vice president at GoldMoney, which provides custodian and investment services in Toronto. “We’ve reached a psychological tipping point where people see a material increase in the risk of a repeat of what we saw in 2008.” Client demand has been so strong recently that GoldMoney has struggled to keep up, he said. - Bloomberg
As the old saying goes, if you don't hold it, you don't own it.

Monday, May 30, 2016

Canadian mint sales of gold up 20% in Q1 while U.S. buyers of Comex gold contracts soar at record pace

For those obsessed with the current slam downward in gold prices, realize that this is a short-term paper driven anomaly by the U.S. central bank to protect the dollar from falling below 92 on the currency index.  And the primary reason to feel decent despite the $100 drop in the price is because demand continues to soar at record levels in both the physical and paper markets.

On May 28, the Canadian Mint released their sales numbers for gold maple leaf coins and for the quarter of 2016, purchases were up nearly 20% from the same quarter in 2015.

The Royal Canadian Mint Sold 212,600 Ounces of Gold in the First Quarter of 2016.
First quarter 2016 Canadian Mint gold sales rose 18.7% year over year in Q1 2016 from 179,100 ounces sold in the same quarter in 2015. First quarter 2016 gold sales put the Royal Canadian Mint on Track to sell One Milion ounces in 2016. 
The Royal Canadian Mint released its first quarter 2016 report this week. 
The report showed that Royal Canadian Mint first quarter 2016 gold sales increased 18.7% year over year from the first quarter of 2015. (212,600 ounces vs. 179,100 ounces) - SGT Report
Additionally, there was an interesting and historic anomaly last week in the Commitment of Traders (COT) report that shows open interest on the U.S. Comex market.  In it, speculators were leaving the gold futures market while at the same time the number of commercial traders going long in the metal did so at the fastest rate in the report's history.
Summary 
Speculative traders abandoned gold positions at a tremendous rate over the past week. 
While speculative bulls were dropping their gold contracts, larger commercial traders were buying up gold long contracts at the fastest rate in the report's history. 
While we have been bearish on gold for the past few weeks, we now think it is a good time for investors to start re-establishing gold positions. 
In the latest Commitment of Traders report (COT), we saw something very unusual happen but it wasn't on the speculative side. Speculative traders did what we expected them to do with the price downturn - longs sold hand over fists while shorts increased their own positions. But what was unusual was that Commercial traders (the big buyers of gold) increased their positions by the largest weekly amount in the history of the new COT report. - Seeking Alpha

Monday, May 16, 2016

China preparing takeover of physical gold markets through purchases of London gold vaults

A few years ago, China acquired the largest gold vault outside of Fort Knox when they purchased J.P. Morgan's former headquarters directly across from the New York Federal Reserve building.  And with that purchase came the underground vault and tunnel that was shared between the two banks.

And now in 2016, China is preparing for the eventual takeover of the Western physical gold markets through purchases of two new vaults, which are located in the City of London.

We thought that ICBC would be content with its purchase of one of London's biggest vaults but that appears to not have been the case. Earlier today, ICBC Standard Bank reported that it was also buying Barclays' London precious metals vault, giving the Chinese bank the capacity to store gold worth more than US$80bn in the secret location.
The vault, which can store 2,000 tons of gold and other precious metals such as silver, platinum, palladium, was opened by Barclays in 2012 and took more than a year to build. The location of the vault is secret, but the lender has said it’s within the M25 road that orbits London. 
"This is an exciting acquisition for the Bank. This enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market,” Mark Buncombe, head of commodities at ICBC Standard Bank, said in the statement. "The acquisition of a precious metals vault allows us to expand our services in clearing and processing." 
Barclays' decision to exit the business comes as U.S. and European Union regulators investigate whether at least 10 banks, including Barclays, JPMorgan Chase & Co. and Deutsche Bank AG -- manipulated prices of precious metals such as silver and gold. - Zerohedge

Friday, May 13, 2016

Comex cupboard so bare that a run on gold in their vaults would collapse the market

Entering into April, the number of paper contracts per ounce of physical gold held by the U.S. Commodities Exchange (Comex) was at an all-time record of 542 to 1.  And while this receded a touch during most of the month of April, by the end of the period it was not only back to 542 to 1, but it is now much higher from recent saturations and naked shorting.

Over the past two years, the Comex has seen its inventory of physical gold drop from several million ounces to now less than one million, and any real run on the vaults, or demand for delivery, would instantly collapse the gold markets, both in the paper realm and in physical.

And perhaps what is most astonishing is that for the first time in several years, the mainstream is now publishing news of this fraud.

Then starting in 2014 and trending to mid-2015, the number of registered “owners” moved strongly up, to about 100 per ounce, and then 300 per ounce. Note that this was also a period when Comex sold down significant amounts of physical inventory, from several million ounces in vaults to well under 1 million ounces. 
By late 2015 and now into 2016, registered “owners” against Comex gold spiked to a nosebleed level of 542-to-1. Thus if even one claimant shows up for an ounce of yellow metal, the cupboard will be bare — and there are 541 other claimants as well! 
“Uncovered” speculation has gone exponential. There’s lots of “paper” gold and almost no “real” gold, which makes for a high-risk scenario — certainly if you don’t hold gold. It’s high return if you do hold gold. 
The cupboard is so bare for gold that Comex could collapse into the equivalent of a “run” on vaults. If that happens — rather, “when” that happens — watch gold prices spike. On that golden day of reckoning, you’ll see more than a buying frenzy or even a panic. It’ll be utter pandemonium.  
When this bomb explodes, gold prices will melt upward in ways we can scarcely imagine. Instead of a few dollars up or down on the ticker, you’ll see hundred-dollar moves in a matter of minutes. Of course, it’ll be a good day for investors who own physical metal and a strong hand of mining shares. - Business Insider

Thursday, May 12, 2016

Gold demand for first quarter of 2016 is the highest on record

As the numbers come in for the gold industry in the first quarter of 2016, demand for the precious metal, both in physical purchases and paper equities is the highest total amount on record.  And with institutions such as J.P. Morgan publicly calling a new bull market in full swing, chances are likely that not only the second quarter, but the rest of the year, will see massive inflows of buyers into the gold markets.

Demand for gold soared at the start of the year, the strongest first quarter on record, the World Gold Council (WGC) has said. It predicted that negative interest rates, global uncertainty and a good monsoon season in India would bolster buying further in coming months. 
Demand surged 21% between January and March, as negative interest rates in Japan and Europe, which have led to rock-bottom savings rates, slower global growth and stock market turbulence drove investors to bullion, seen as the ultimate safe haven
The WGC’s report [pdf] noted that China’s devaluation of the yuan had fuelled fears over the country’s economic health and the impact on the global economy, and that the pace of US interest rate rises was widely expected to slow. - The Guardian

Wednesday, May 4, 2016

Gold buyers still ignorant of physical market as traders pile into S&P; paper gold at record levels

When a paradigm belief is strong, very little will ever change the minds of those held within its thrall.  And a great example of this is how U.S. and Western investors continue to trust in paper assets rather than trading in physical commodities that have real tangible value.

Last month the Shanghai Gold Exchange ushered in a new era for gold by declaring the first new price discovery mechanism in over 100 years.  And while the SGE established itself upon a foundation of physical gold, record numbers of investors in the West continue to buy paper gold through stock market ETF's rather than buying physical gold which they can be sure is in their hands, and not under the authority of known criminals and convicted manipulators.


Investors are piling back into gold, and they're coming in droves. 
Holdings in SPDR Gold Shares, the world's largest exchange-traded fund backed by gold, surged 20.8 metric tons on Monday, the biggest one-day expansion since 2011, data compiled by Bloomberg show. 
About $7.1 billion in new money poured into SPDR Gold this year, the most of any ETF tracked by Bloomberg around the world, as holdings soared to the highest since 2013. - Salt Lake Tribune
Perhaps the most substantial difference between paper gold owners, and those who own physical gold, is that they choose to ignore the incredible manipulation that takes place by the bullion banks in the paper gold market.  In fact, last month Deutsche Bank publicly announced they were guilty of manipulating gold prices through the London Gold Fix, and the U.S. Comex has little actual gold, with more than 500 paper contract demands tied to every individual ounce of gold held in their vaults.

Which means that investors own meaningless paper, and simply a promise to deliver gold, rather than actual gold itself.

Gold: If you don't hold it, you don't own it.

Tuesday, April 26, 2016

The final battle between paper and physical gold is underway, and the line to defend for the cartel is $1300 per ounce

One of the most significant elements in gold price determination is the technical data points that usually spark the central banks to summarily kill any rally, and work to suppress the price using billions in paper contracts.  We saw this most recently on April 21 when in less than 5 minutes, a bullion bank dumped over $2 billion in naked gold contracts, which is 20% of the global mining output for the precious metal.

But these desperate efforts are quickly beginning to fail, and have only a very short-term affect on a price that is strongly in favor of going much higher.  And just as quickly as the central banks and Treasury ordered their lackey banks to naked short gold to protect the dollar five days ago, the price rebounded strongly to actually close the day in the green by a few dollars.

In the newest publication put out today by Dr. Jim Willie, the esteemed statistician and analyst announced that with the opening of China's new price mechanism at the Shanghai Gold Exchange, the final battle between paper and physical gold is underway, and the last line of defense for the paper markets is to hold the $1300 price.


Currently, the number of contracts on the COMEX represents 300 times as much paper gold as there is physical metal in the COMEX vaults. Moreover, this number has ballooned at a faster pace over the past two years or so. The 300:1 ratio of contracts to physical ounces is propped by powerful restrictions. The COMEX forbids delivery of gold on the ramps to satisfy a gold contract, under threat of banning the party from participation and entry in the door. Almost nobody takes actual delivery of their metal, except for the big Wall Street banks which steal gold from other depositors. These banks also routinely rig the windows to enable removal of investor gold in the GLD Exchange Traded Fund, and silver from the similar SLV fund. Imagine a gold futures contract with no delivery possible. How absurd! But it has been the reality since June 2012. 
The situation is perhaps even more frightening in the London Bullion Market Assn (LBMA). This market sees $trillions worth of gold trades every day. The activity is truly baffling. On individual trading days, more gold changes hands within contract trading (paper shuffling) across the London market than all the available gold in the world. Yet no metal moves anywhere, in a grand charade. These are merely paper transactions, with almost no actual metal ever in movement. The staggering leverage and dilution should not make any sense to the rational observer. However, in sharp contrast, the Eastern nations are accumulating gold in large volume.
GOLD & SILVER PRICE REVERSALS 
The gold reaction to the Shanghai market development has been muted. But a powerful reversal is in progress, which should be impossible to halt or to obstruct. An unsual pattern shows itself in an upward bias Cup & Handle toward a reversal, where the $1300 level is well defended. - Jim Willie, Silver Doctors

Monday, September 21, 2015

Want the signal that gold is going up in price soon? Now we may have it

The first rule of precious metal stacking club is that you don’t talk about precious metal stacking club.  And while this may be a clever play on words from the cult classic movie, Fight Club, in the investment arena it is a given rule that you also don’t talk about positions you are accumulating until you already have your shares bought.
The reason why is, if everyone discovered that a heavy trader or hedge fund manager like Carl Icahn or George Soros were buying something in great quantities, then people would rush in to get on their coattails to profit from some inside information only they might have.
Which makes it very interesting to discover that the insiders and elites who have publicly discredited physical precious metals like gold and silver for years now are themselves buying it en masse when the media and their paid tools on business television are dissuading everyone else that gold is worthless, and little more than a ‘pet rock’.

Sunday, September 13, 2015

Got Karatbars? Your options to get physical gold are now limited as even London is virtually wiped out

Over the past several months, the run on physical metals such as gold and silver have been as great as the demands of 2008, and even those that took place in 1980.  And besides the fact that sovereign mints such as those in the United States and in Canada have halted sales of bullion coins to brokers and dealers since early summer, even independent dealers and mints are experiencing backlogs of nearly six weeks to get their customers any physical metals.

But as the financial signals spreading from Asia to Europe, and again to the U.S. scream of a market and currency collapse, or at the very least a severe recession coming upon us, North America is not the only place where physical gold and silver is getting scarce, and according to well known metals analyst Koos Jansen, it is nearly impossible to get it from ground zero... ie... London.

Just after my colleague Ronan Manly wrote a very extensive article on how much gold is left in London (not much), Petropavlovsk Chairman and Co-Founder Peter Hambro discusses gold at Bloomberg Television. He, like Manly, concludes there is very little physical gold left in London. From Mr Hambro:
My baseline is they [the Chinese] have been buying and the Indian have been buying in enormous quantities. It’s virtually impossible to get physical gold in London to ship to those countries. We get permanent requests from Russia, would we please sell our physical gold to India and China. Because there is no physical, only endless promises. And I really worry that the market, that paper market, could be stamped on and people will say “sorry we’ll have a financial close out”, and it’s all over.
Perhaps this quote explains why UK gold export directly to China in June was not a net outflow from the UK - because there is little gold left in London (Manly, Hambro) and thus the UK had to ramp up import from the US in June to send forward to China.
The Financial Times reported on similar gold shortages in London. From the FT (2 September):
The cost of borrowing physical gold in London has risen sharply in recent weeks. That has been driven by dealers needing gold to deliver to refineries in Switzerland before it is melted down and sent to places such as India, according to market participants.
“[The rise] does indicate there is physical tightness in the market for gold for immediate delivery,” said Jon Butler, analyst at Mitsubishi.
I’ve also asked BullionStar CEO Torgny Persson in Singapore what he’s currently seeing in the precious metals markets. He replied there are shortages in both the gold and silver market. From Mr Persson:
I just got off the phone with A-Mark which is one of the world’s largest wholesalers. They are reporting that they have no gold and silver at all live available, that they have stopped taking orders for Silver Maples and Silver Philharmonics altogether and that Silver Eagles are available first in the end of November. ForPamp, there is similarly long delivery times for all minted gold bars.
We still have most products in stock because we stocked up as massively as we could in the last weeks but for many products, we are unable to replenish as of now when we run out.
Big squeeze with shortages starting now both on the wholesale/retail level and at the bulk level… Unless the paper price is reverting up, it may not subside this time around and then the paper fiat mess (including paper prices of gold and silver) is in trouble. If it goes to the point of shortages at the bulk level like 1kg gold bars and 1000 oz silver bars, the emperor will stand without clothes. - Bullion Star

So if you are still looking to get some physical gold now that demand is at a near all-time high, and supplies are so scarce that delays are upwards of two months before delivery, what alternatives do you have to not only secure your wealth, but protect yourself from the coming paradigm shift that will end the era of fiat currencies and bring a return to the gold standard?

The answer lies in Karatbars




Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.



The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Monday, August 10, 2015

Got Karatbars? Economist Marc Faber shows why you need to have gold stored offshore

As we prepare for the months of September and October, which in the normal market cycle are periods of extreme economic and financial swings, the message from most of the alternative economists remains the same.

Have money (cash) outside the banking system, have a modicum of physical gold and/or silver in hand, and following the passage of Dodd-Frank, the G20 January resolution, and the bank holiday just experienced in Greece, have most of your wealth stored offshore, and in assets not tied to any particular currency or country.

But for those who are either trying to get started on their accumulation of physical metals, or are using the lowered spot price to add to their stacks, the supply situation is getting extremely dire.  In fact from a personal anecdote, when I recently took someone to my local coin shop to buy some silver we ended up taking their entire supply of generic rounds, which was only about 100 to begin with.

And even beyond a local standpoint, shortages are growing nationwide, and across the globe.  In fact, just over the weekend the Royal Canadian Mint out of Canada defaulted on a delivery of silver bars, which is a huge story and a massive signal that demand is at or near all-time highs, and the manipulation of prices for silver and gold has been too much, and has opened the door for investors and savers worldwide to grab any and all metals they can.

Yet with all localized or sovereign bullion metals there is also a cost, and a fear that these coins could be confiscated, nationalized, or even taxed to the point they no longer provide the necessary protections that gold and silver are against currency devaluations.  And while it would be much harder for governments to try to pull off what several of them did in the 1930's when nations in Europe and the U.S. called for a turn in of privately held gold bullion, hedging one's bets is not only prudent in troubling times, but a necessity.

And that hedge at this point in time is to have much of your wealth out of the banking system, and away from any potential confiscation or nationalization by a government that created a monetary crisis through their own speculation, debt creation, and out of control spending.  But above all, available if necessary to be accessed and used as well.

In fact, this thesis is one that is shared right now by well known economist Marc Faber, who speculated on Aug. 7 in an interview that while governments and the mainstream media have been downplaying gold and silver for several years because it reflects the true value of their worthless paper currencies, these same governments when the next crisis comes will attempt to vilify owners of gold and silver as being the 'greedy people' who created the crisis because of their hoarding of the metals, and by them leaving the playing field of paper currencies.



What about gold? Being in a correction mode for a couple of years already, it recently has broken down some more.

I really don’t know, all I know is that I own gold and it doesn’t worry me that it went down because as I mentioned to you I have this diversification, the bonds in US dollars and the cash in US dollars has been a good investment essentially over the last twelve months. Then I own equities and I own properties in Asia that have been reasonably good investments so the fact that gold is going down doesn’t worry me and I buy every month a little bit but I think on this weakness I will increase the position substantially because I had maybe say 25% in gold but because equities and properties went up, the dollar went up and gold went down, the allocation to gold is no longer 25% but maybe only 10 or 15%.

So then I have to stock it up again. But I would say an individual should definitely own some physical gold.

The bigger question is where should he store it? because I think if we think it through, the failure of monetary policies will not be admitted by the professors that are at central banks, they will then go and blame someone else for it and then an easy target would be to blame it on people that own physical gold because they can argue, well these are the ones that do take money out of circulation and then the velocity of money goes down, we have to take it away from them.

That has happened in 1933 in the US. With our brilliant governments in Europe that follow US policies and with the ECB talking every day to the Federal Reserve, they would do the same in Europe, take the gold away from people. - Marcopolis

So, taking into consideration the three protective layers (cash in hand, metals in hand, and wealth offshore stored in metals outside the banking and sovereign system), what is the best solution to accomplish two of these three things?

The answer to this lies in a company called Karatbars.





Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.



The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Monday, July 27, 2015

Got Karatbars? Ignore the price of gold... shortages are the real story as breakout on horizon

For gold bugs, and those who have watched the cartel crush the spot price of gold in recent weeks, it is very easy to believe that capitulation may have finally arrived, and that gold is no longer able to hold on to its support levels that have held over the past nine months.  But while this assessment on the surface may signal the end of the gold bull, things occurring underneath are signaling a much different future direction.



One has to remember a single truth about gold prices at this time in history... the price is determined by a committee known as the London Gold Fix (notice there is manipulation even in their name), and that it is based solely on the paper market for gold, and has little to do anymore with the physical gold market.

In fact, the U.S. based Comex futures market which is the determinant for spot gold prices has not delivered a single ounce of gold in over two years, and their function right now is to use the gold price to protect the derivatives market, which the bullion banks are leveraged beyond measure, and would be insolvent if the Comex stopped manipulating the price.


(Notice how J.P. Morgan has severely leveraged their derivative exposure since the first quarter of 2015, and exactly during the recent slam down of the paper gold price on the Comex.)

This manipulation and unhinged leverage can only last so long, especially since there is an opposing issue that even the Comex can control.

The shortages occurring in the physical gold markets.

The paper market is telling one story. But the actual physical bullion market is telling quite another.

The U.S. Mint has sold over 100,000 ounces of American Eagle gold coins so far in July. That’s the highest monthly demand volume registered since April 2013. And that’s just as of this week. There’s still another week left to go before the final sales tally for Gold Eagles comes in for the month of July. It could be one for the record books with 109,000 1-ounce Gold Eagles sold — with bargain hunters purchasing 6% of the U.S. Mint’s production from Money Metals Exchange.

As for Silver Eagles, the U.S. Mint has given up on trying to keep up with demand. After brisk sales during the first week of July, Mint officials suspended deliveries of Silver Eagles to dealers. Sales of the popular coins are set to resume next week. But we expect the Mint will be unable to get its act together and keep up with demand.

Listen: Full Interview With Chris Powell Of The Gold Anti-Trust Committee (GATA)

The shortages occurring in the physical market are pushing the bullion banks into an interesting dichotomy... not only are they working to crash the paper price by dumping $2 billion worth of naked paper shorts in just four minutes on the market just one week ago, but they are also buying long positions, as well as physical metals, in what is known in the industry as a hedge.

Hedging is done to limit one's losses, and since bullion banks like J.P. Morgan and Citibank have for years been depressing the paper gold price through thousands of naked short contracts, their goal of pushing the price well below $1000 per ounce has failed, and now to protect their trillions of dollars in risky investments they are buying both longs and physical as a double hedge for when the price suddenly takes off higher, or when the Comex loses control over price determination.

Which by the way is extremely likely after September when China begins its own price declaration on the Shanghai Gold Exchange.

So if gold in the West is finding itself in extreme shortages, and playing the ETF's or Future's markets is out of the question due to the massive manipulation, what is the best way to protect yourself in gold, especially with the dollar, euro, and fiat currency system entering the next new recession and liquidity crisis?

The answer lies in Karatbars.






Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.

How to make money in both the Dual and Uni-level systems of Karatbars



How to make a six figure income using Karatbars in just 7 weeks.



The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Wednesday, April 17, 2013

Asian countries buying gold hand over fist as central banks dump paper to drop price

Since last Friday, the gold spot price fell more than 9% as central banks dumped up to 500 tons of paper gold onto the markets.  These actions dropped gold from $1500+ to a low of $130 on April 15.

But even as the Western central banks work to manipulate paper gold prices, Asian countries such as China, Austrailia, and Japan are using this price drop to purchase tons of physical gold, at discounted prices.


Australia:
Gold sales from Perth Mint, which refines nearly all of the nation’s bullion, have surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.
“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said, without giving precise figures. “There’s been people running through the gate.”
“There’s been significant sales made as people see this as great value,” Mr Moffatt said. “Gold owners are very reactive to significant market movements.”

China:
Beijing gold store two hours to sell 20,000 grams of gold bullion trading volume of nearly 200 million

Japan:
Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal.

In the U.S., many gold and silver dealers such at Kitco have been experiencing buying so great, they have run out of stock, and hiked premiums by more than 50% on physical ounces.  And according to many analysts, this may be the last time to get physical gold and silver before it either runs out, or becomes to price restrictive to purchase.

Thursday, February 16, 2012

Central banks continuing to buy physical gold in record quantities

Central banks, particularly in Asian countries, are continuing to dump US treasuries and diversify into more gold accumulation at record numbers.  Even Europe, which is trying to sell the world on toxic and sovereign debt, is purchasing physical gold behind the scenes with the knowledge that the game is almost over for their fiat economies.

Global gold demand was worth a mere US$205.5 billion which is not a substantial sum considering the size of global capital markets today. It was the first time that global demand has exceeded US$200 billion and the highest tonnage level since 1997.

Central banks were net buyers of gold and their demand surged nearly 6 fold (570%) to 439.7 tonnes in 2011 - compared with 77 tonnes in 2010.
Demand for gold bars and coins accelerated, reflecting a blend of positive influences including concern over the financial health and future viability of the euro area; high inflation in some countries; positive price expectations; and the relatively poor performance of a range of alternative investments. - Goldcore via Zerohedge



Chart courtesy of Bloomberg and Goldcore