Fortune

I'm far from a fan of JP Morgue but unfortunately this isn't going to make much difference to the price of PMs. They have an UNLIMITED line of credit from the Fed, so if the hedgies want their cash settlement they can go ahead and claim it. 20%, 30%, 60%? Just print up some more and here you are sir. Who cares, since it's the fed (and therefore by extention all dollar holders) on the hook and not the JP Morgue. This game will carry on indefinately until some big boy kicks the table over (i.e. China or Russia). Still we can live in hope they karma catches up with them.

This is an oldie but a goodie: an interesting reminder of gold demand in the 1990's. Fascinating to see how gold was still needed to buy food and other essential supplies even though it was right at the end of the bear market - or should I say near Brown's Bottom in 1999. Gold was and still is money. I wonder who bought the gold that the Koreans and Indonesians sold? http://news.bbc.co.uk/2/hi/business/97438.stm

Just goes to show what a nonsense the 'futures' market really is. What a sick joke. Actually I think the whole lot should be abolished. You want to hedge Mr Producer? Tough. Pay up the cash up front and take yer goods just like every other mortal. If you want to gamble with your stuff then go to the casino. Problem solved.

Ker?

On p.16-17 at http://www.martinarmstrong.org/files/GOLD-5000-11-11-09.pdf http://img840.imageshack.us/img840/7193/ma...onggold5000.jpg

Got me some major fiat that I want to be rid of. Probably going to be my final lot (really). Mainly because my salary isn't going to keep up at $1500, 2000, 3000, 4000 etc an oz. The remaining fiat with be just for living expenses. So you can blame me if the Da Boyz jam a clamp on the 'short gold and silver' button within the next few days. Apologies in advance!

I have thought about this possiblity many many times. Believe me I have. Most 'serious' (no disrespect intended) gold-holders have already factored this into their equations. For instance, what are the chances of the US government grabbing gold from a pivate vault versus the chances of the Swiss or British or Hong Kong governments doing the same? The chances depend upon your own political (and geo-political) outlook. I would say the US is at the top of the potential thief list along with the UK. The Swiss however are probably near the bottom of the list. So we are talking about juristiction now right? As usual, do the calculations and hedge as best you can DYODD. You might ask: so what if the whole world descided to blatantly steal private gold holdings. Really what are the chances of that? I'm not saying its impossible but I personally think it's very unlikely. That scenario sound most definately be like the NWO-era. What's some sovs and krugs in your attic in maistone going to do you for you in that situtation? Good luck trying to cash in your coins then, you will certainly need it. I think what's more realistic is the US and some of its minions going after the metal holdings in the banking system - which is what goldfinger and others have been warning about. Also FOFOA doesn't believe confiscation will happen ever again, and many GEI'ers (including myself) rate his views very highly. So thus I wouldn't get so hung up about the whole issue. The major thing to consider is the juristiction of your gold holdings. Was it Arch Crawford or someone who said that the best way to protect your wealth from the government was to live in one place, have citizenship from another and keep some your wealth in a third country. But how many people can do that? Just be cautious and do what you think is best for yourself is my humble advice.

To add to that, Havey also mentions the return of backwardation: http://harveyorgan.blogspot.com/2010/08/au...commentary.html

I was under the impression that RH believed hold both gold and dollars was the best hedge instead of either gold or dollars. Gold forming the core of your wealth, while remaining liquid in dollars (and silver as a gamble). It's a bit disingenuous to suggest otherwise, to say the least.

The graph show the ratio of the price of gold in dollars versus the Money of Zero Maturity (cash dollar in your wallet and bank account). The last time gold was 'officially' in a bubble the price of gold touched a ratio of 0.25 of the total dollar paper cash available for folks like you and me (I presume this is only is US-centric rather than a global MZM measure). To even get to get to half of the price that was on offer in the late 70's, gold would have to quadruple from here (something like $4000 per ounce, GF?). So thus no bubble here so far.

It will be at this moment when we will have the start of our 'Freegold' era. And not a moment before. If I were to hazard a guess it would be either in 2012 or 2016. It's all about the cycles, jack... The problem is what will happen in between though: could be nuked off the face of the earth from an Israel-Iranian WWIII conflict. I just hope we will be all around (and in one piece) to see it.

I've just noticed this. And I agree (which is the gist of my point).

May I add something to this debate. If I reading you correctly RH are you saying that it was the perception (or 'confidence' if you will) of the dollar which led many to associated it with real value, not just the backing of the dollar to gold? I thought that in the case of the US Great Depression, the pegging of gold to the dollar was one of the primary reasons for the onset of the depression. Reason being that, as gold cannot be printed out of thin air, the amount of dollars in existence reduced in the face of banking failures and money hoarding - a classic deflationary spiral. And so, in order to stop the spiral of falling wages and prices in the economy, the US government confiscated the people's gold to boost the money supply and create inflation. This was their way of 'printing money' on a gold-standard. Thus (and some others have also argued) in those days it was the perception of dollar as being backed by gold which gave them the confidence to have faith in the dollar as money. In the present era, people still hold on to this belief even though all currencies are now fiat since 1971 - they believe dollars, pounds, yuan, yen, euros are backed by something (if not gold then something precious or valuable). This is why as you say the dollar's purchasing power could still increase measured against many assets yet at the same time decrease when measured against gold. The true awakening in the gold market will only occur when people realised that they have been had for generations. Recently I have begun to accept this notion of currencies bobbing up and down against each other, with gold (and perhaps silver) as the lord of them all. Well it's the only one that can explain all the paradoxes out there in the global economy. I think.

Sounds somewhat similar to Martin Armstrong's approach. Fiat will still surprise everyone and go on a tear in either direction, all the while deprecating against real money. The problem with the dollar is that most foreign governments and central banks don't want it to die just yet (since they hold most of the stuff) so don't be surprised if they do as much as possible to keep it afloat. For instance, Armstrong believe we will see wild swings in the dollar. Although he didn't give any particular targets, it's entirely possible to see an instanity of the USDX at .100 with Gold at $2500. House, cars, boats etc will be very cheap in this scenario measured in dollars but they will also be much much cheaper measured in gold. Just my 50 pence.

Hey all. Been VERY busy for the past few months with housebuilding and I still haven't finished! Hope to complete the bugger before september, so no PM purchases for me at the moment. On the bright side though I sill have time to exchange real assets and labour for pieces of toilet paper with ink on.... Anyhow, what's up with the dollar? Are we in the death spiral already? Any significant news? Uploaded with ImageShack.us

The open in New York on monday could be explosive with this news....you have less than 24hrs to get your hands on some silver before the moonshot

Whoopsie indeed! Inside every gold bull is a silver heart?

The open in New York on monday could be explosive with this news....you have less than 24hrs to get your hands on some silver before the moonshot

At the risk of jumping the gun a little too early (or is it too late?), it looks like Armstrong is on the money again. Summer doldrums part two here we come.

I don't think they will confiscate this time around: they will tax the living daylights out of your 'profits'. Look for a 50% capital gains tax on the proceeds of PM's. Gold holders will be as popular as bankers in the mainstream media. Whether you physically own it or not, they will 'confiscate' it from you at the point of sale.

All the signs seems to be pointing towards Asia (or more specifically Hong Kong, Malaysia and Singapore) and South America as the final defenders of private property rights. What irony! So much for the so-called 'leaders' of the western world - what a joke. Goldmoney has recently opened a vault in Hong Kong if you don't trust the Swiss (and I increasing don't). Unless you are a millonaire, this is probably the only option left for the little guy / girl. As I've mentioned before, the only sure way to protect your PM's is to hold physically in at least 2 different countries. Preferably with at least one of those countries outside the anglo-saxon banking orbit (is that even possible?). I'm thinking some in Asia, a little in western Europe and some in South America. Jim Willie keeps his PM's in Puerto Rico, I believe, and the legendary CGNAO is somewhere around that area too. I read somewhere that the ideal way is to own a passport of one country, keep your wealth in one country, and live in another country. But who can do that but the mega rich? Put it this way: when this thing comes down, there really will be no escape. Don't be under any illusions that you can easily side-step this global crisis with a bag of krugs or brits. We are all going to get shafted in some way. You better believe it. Escaping with a least 75% of your wealth intact will be a result.

Can't you just give it a rest now? It's all very clear what you think about RH so just leave it be, eh? Why come back to start a fight...it's so petty.

Link?

Another nail in the coffin for Switzerland. I am seriously considering moving vault to Hong Kong on GM... Does anyone know what the tax agreement between the the UK and Hong Kong is? Persumably not as bad as Switzerland at the moment right? Or were the 'if you don't hold it, you don't own it' brigade right all along? Decisions, decisions...

So who's willing to make the jump to the Hong Kong vault at GM?