Comex Gold Open Interest Numbers Show Massive Manipulated Gold Hit In Progress

The Comex is a complete fraud.  It’s one of the biggest Ponzi schemes in history.

With China and Viet Nam (the latter being a major gold importing country) now closed until next Wednesday in observance of their Lunar New Year, the bullion banks have engaged in a major attempt to drive the price of gold lower.    Yesterday (Tuesday) 99,000 gold contracts  – 9.9 million ounces or 287 tonnes – were sold into the market between 9 a.m and 11 a.m. EST, which had the effect of driving the price of gold down over $26.  To put this into context, a total of 179,833 contracts traded between 6 p.m. Monday and 5 p.m. Tues. The entire daily trading period is 23 hours. But 55% of yesterday’s total trading volume – the volume used to slam gold – was traded in a two-hour window of NY trading.

Think about it this way:  in that two-hour window, 35 days worth of daily global gold mine production traded in the form of paper gold.  The open interest expanded by 5,290 contracts, which translates into just over 15 tonnes of gold.  The total amount of gold available for delivery – the “registered” account gold – is 804.9k ounces, or 23 tonnes.  In just one day, the bullion banks (JP Morgan, HSBC and Scotia) sold forward 65% of the entire stock of deliverable gold on the Comex.  And that’s if you really believe the unaudited bank reports which produce the gold warehouse stock reports.  I do not.

Gold was raided again today (Wednesday, Feb 18) – again at 11:00 a.m. EST. This time gold was slammed another $9 in the space of 30 minutes, most of it in the first seven minutes. Today 18,000 April gold contracts traded in the 30 minute space, representing 24% of the total volume in the April gold contract up to that point since 6:00 p.m EST the previous evening. This is 52 tonnes of paper gold – more than twice the amount of gold in Comex vaults available for delivery.

This is very painful for most of us to watch unfold because we understand how corrupt our entire system is and we also somewhat understand just how devasting the consequences will be for the entire population of the United States (and, really, the entire world) when this giant Ponzi scheme blows up.

Folks, these are not free markets by any remote stretch of the imagination. These are markets controlled by dangerous criminals who are in the process of stealing everyone’s wealth and, in the process, destroying our system. Unless something is done, your children’s lives will become a very unpleasant experience. I don’t have children so I don’t have equity in the future of this system other than I was raised with a very strong sense of “right” and “wrong.” I’m just the messenger.

Sometimes I wonder if I might have been better off being one of the 95%’ers who are oblivious to the size and the velocity of the giant two-by-four being swung at the back of their head by those in control of our system…

[post_ender] (please share this with anyone who might care, if even just a little, we need to pry open any doors that are cracked open in the minds of those who care about our country)

46 thoughts on “Comex Gold Open Interest Numbers Show Massive Manipulated Gold Hit In Progress

  1. It´s really depressing to see that yet another gold smash is in the making.
    I really love gold and silver but I had enough for a while.
    I guess I have to stick to my Amazon short and my russian investments.
    By the way Dave your ideas regarding Amazon.con was the best I ever heard!
    When it finally turnes around and crashes it will be something for the history books!

    Best regards from the -0,1% country Sweden!

  2. Wednesday, February 18, 2015
    The Crony Meetings of Fed Chair Janet Yellen

    Via a Freedom of Information Act request, the Wall Street Journal has obtained the 2014 schedule calendar of Fed chair Janet Yellen. A part of this schedule was previously published by WSJ, but now the entire 2014 schedule is available.

    A quick perusal of the list shows various meetings with the bankster crowd, including Lloyd Blankfein and Jamie Dimon. Also there were two meeting with economist Jefferey Sachs. the only non-Fed economist that Yellen met with more than once. Yellen also met with members of the AFL-CIO twice and with the CEOs of the private equity firms, Blum Capital Partners, L.P. and Equilibrium Capital Group, also meeting with Yellen.

    Below are key meetings on Yellen’s schedule, they include the date of the meeting, category as labeled by the Fed, person attending and the length in minutes of the meeting.

    http://www.economicpolicyjournal.com/2015/02/the-crony-meetings-of-fed-chair-janet.html

    change will never come from within…..

  3. Who says it will blow up ? I think the stick approach to the market may be what’s needed so that the donkey gets driven toward gold and market monetization can begin to morph for the sake of creating a form of market liquidity to complement debt. Debt is not our problem …. it’s the massive amount of debt without a complement of circulating assets (currency) that would be debt-free. We’re simply out of balance.

    How many people consciously realize that the circulation of real debt-free assets actually purges debt based currency out of circulation ? Adding debt-free liquidity (L2) to an existing debt based pool of liquidity (L1) creates a sum of L1 + L2 …. thus allowing L1 to be reduced….. safely. No crashes please. Let the market do this …. wise as serpents.

    It’s a symbiotic hybrid …a yin-yang of liquidity …. debts and assets, combined.

    Fitting when you consider that it is light that comes from darkness in the process of creation. Peace.

  4. Dave, First off- There is absolutely nothing that can be said to the
    majority of the public. Most are to wrapped up in a numb delusional
    state to even make the simplest of decisions. Second- I always believed
    that gold was a insurance policy for if and when everything turns to shit.
    I’m not interested in exchanging my gold for shitty green paper. I started
    buying in 2000 and sometimes regret not selling at $1700 or even $1600.
    I know where this is heading and being in my mid forty’s I view gold as
    safety net for my golden years. So when I watch the manipulations it
    reinforces my resolve to keep the gold. You have to believe that these
    manipulating bastards must be really frightened. I think long term those
    that have gold will survive best. Peace Brother.

    1. David …. good for you. You see gold as a currency. I do too. I had the same survival instincts and thoughts for many years until it dawned on me that if bullion circulates, it adds to much needed economic liquidity but without adding to existing debt. As such, the added debt-free liquidity can allow for existing debt to be withdrawn. IOW bullion in circulation purges debt right out of circulation.

      Now I don’t so much look at bullion as something to survive a debt based catastrophe with , but as an answer in terms of how to prevent one ! It’s up to the market, however, because real-time (floating) gold cannot be introduced to the market in a top-down process by fiat or legislation. The debt currency half of the forming yin-yang could collapse on the basis of the market reaction. The process must be organic…. bottom-up. Rate of change is critical. We must be as wise as serpents.

  5. Dave, the price fix in London will be changed next month. They go from telephone to computers. Welcome to 2015! Anyways, what do you think will be the implications of that move?

  6. Indeed, this is a Ponzi scheme of some note! If we look at it positively, then it is also a great opportunity to acquire physical gold. If there are about 100 paper claims to each physical weight of gold, it does not take much to tip the boat. They cannot continue to suppress physical gold, and it is simply a matter of which way the heard runs. Something spooks the front, and the heard will turn on a dime, most won’t even know why. How many of them will get their gold claims honoured is anyones guess, but it will be very very few.
    Gold is not an investment, gold is true money.
    The system is going to crash, it has happened many times before, but never before on a worldwide basis. This is what we are heading for. Good luck if you face that with paper only. A battle between USSR and USA could be building right now, or Greece might just have had enough, or something we have never even seen coming. The system is balancing on and edge, it will not take much, and this time there will be no prisoners taken, no bankers bailed and no hand under the savers or the stock market, it will be printing and printing while we all drown. It has to clear, and it will.
    Just keep buying as long as gold is available.
    Oh, and just ignore these banksters and their atticks. They are headed for extinction.

    1. Why are you so sure it’s a ponzi. I ask in sincerity because without the advent of the floating USD in 1971, there would have been no participatory floating gold market as we now know it. No floating gold means no far sighted application for gold-as-a-currency where the trade value (liquidity) can be governed by market forces.

      The real-time genie had to be released as it was in 1971. Now we have to get the debt-genie back in the bottle. Here’s the irony too …. the real-time genie holds the only key to getting that debt genie back in the bottle to control it. Real-time gold is a debt free currency with fully scalable liquidity.

      1. Dude, there’s whole body of work with supporting documents and evidence and outright proof at http://www.GATA.org – go back the oldest articles first. I don’t have time to explain it to you unless you want to pay me by the hour via Skype call. I have a many dozens of articles documenting how the Comex is a Ponzi. Search this blog and go to the predecessor, the Golden Truth. My rate for Skype consultations is $200/hour.

        1. I’m not saying that the debt genie has been secured. I’m saying that there was no way to have kept it in the bottle when the real-time genie was to be set free. They escaped at the same time. The debt genie has a mind of its own …. no question.

          I’m well aware of the machinations and the use of derivatives at the COMEX. I’m a bug and a bug that was born on the 4th of July … my 1st domino … 🙂 My father was also a coin collector. I learned young.

          I guess what I’m trying to convey is that the architecture of the currency system works its way to debt-free liquidity with the use of bullion and real-time applications, thanks to a floating USD. The dollar is not a currency in the new paradigm of real-time gold-as-currency (floating). It acts as a real-time measure for weight….. a bridge.

  7. Hi Dave;

    I give you credit for the perseverance you exhibit in exposing the deep state of fraud that now underpins every aspect of our governing establishment. Very few people have the balls, the tenacity and the smarts to expose the dark forces that wreak havoc on our way of life as we know it. In 2010, I uncovered major fraudulent practices in the Canadian banking and investment institutions (Canada is as corrupt and bankrupt as any other Banana Republic on the planet). At the expense of a very lucrative career and above average lifestyle, I finally had to pick up my sticks and go home. The oligarchs that run Canada have cornered every traditional litigation channel from regulatory bodies to the legal system itself. Nothing can be done to over come the existing establishment by conventional channels. The system will simply implode on itself as EVERY other system or regime has in recorded and non recorded history.
    All civilizations have their chroniclers, the wise and brave few that stay the course, record the events and most importantly — TAKE NAMES!
    The day will come, when the music stops and the perpetrators either head for the hills or are rounded up and emasculated for their crimes against humanity. Your chronicles Dave, will be the records the next governance establishment can refer to when a new system is created. For now, we have the ignorant masses oblivious to what’s upon them, we have the fearful masses whistling past the graveyard and we also have a small tight coterie of fearless informed and determined individuals ready at a moments notice, to enact PAYBACK on behalf of our fellow citizens and family members. That PAYBACK encapsulates the writings and teachings of courageous individuals like Dave Kranzler.
    As someone who knows how tough the battle is, I encourage you and many others of like-mind, to continue the fight and stay the course.

    Sincerely,
    Bill Sodomsky.

    1. Thanks for the feedback – much appreciated. I agree with your assessment of Canada and it will be intereting
      see how the relationship between the U.S. and Canada develops/unfolds/unravels when the real brown stuff
      starts flying off the fan blades.

  8. “The COMEX is a complete fraud”. Whole heartedly agree.

    Some history:
    Chicago Mercantile Exchange Group (CME) own;
    COMEX
    NYMEX Holdings Inc.
    Dow Jones Indexes

    In Joint Venture, owners of S&P Dow Jones Indices
    McGraw Hill Financial
    CME Group
    NewsCorp

    Do a little searching of your own using the above company names. You will be first amazed, then shocked that so much power and control is so concentrated.
    Oh, by the way, the CME Group is the world leader in derivatives, including futures!

  9. Hey Rooster

    The fly in the ointment is the fact that the system dies back in 2008, maybe earlier. Your formula fails to take into account the underlying assets backing the debt. There are none. Or at least none that haven’t been hypothecated and re-hypothecated 100X over. We have QE1,2,3 ( 4 ? ), NIRP, ZIRP, < interest rates to keep the ponzi going. A fiat currency system can work. But it needs checks and balances and everyone has to agree to play with the same ball. But when they removed the Gold & Silver backing. When they removed Glass Steagall and began to selloff Central Bank Gold ( and Silver ), it was simply an attempt to loot the wealth of the Nation and the Planet on behalf of the eleech. We live in interesting times. The Empire is exhausted. It's wealth has been cleaned out. There is nothing but debt and negative interest rates left. Lets be honest. Take away the reserve currency of the USD and the US is Greece on steroids. I don't say this proudly. I say it because from my cat bird seat it's the truth. The system needs a cleansing. I just hope it doesn't go nuclear and that cleansing occurs with the last of the Windex as everything has been turned to glass.

    1. Paul … the theoretical price of gold is undefined … unlimited, actually. There are no technical constraints. The assets needed to offset the debt that you see are incorporated right in the bullion …. but the numbers warrant higher valuations, I agree. You must also envision the circulation of bullion (or fully backed derivatives, by weight) for the sake of the purging of existing debt and true debt elimination. The numbers, alone, don’t look at this element of reality and this is where economists and intellectuals get “stuck”. Asset must circulate. You end up getting an effect that amounts to “21st century fishes & loaves”. Currencies, whether they be debt based or asset based derive value from MOVEMENT ! Grease the wheels.

      I would not jump to any conclusions about how high bullion would have to trade at, either, if you are thinking that bullion would have to satisfy total USD debt. Our problem is not the existence of debt but the existence of unmanageable debt.

      Our answer …. just add assets and stir…. gently. The market will do its magic

  10. What are you talking about??? Your post is contradictory and confusing.

    Assets? There are ABSOLUTELY no assets left (debt based or whatever) that have not been rehypothecated many times over. Including paper based bullion.

    I really don’t think you know what you are talking about. Sounds like double-speak!

    1. Thank you. I don’t have time to deal with rooster’s inanities! All the information he needs to figure out the truth has posted over the years on this blog and it’s predecessor The Golden Truth and at http://www.gata.org. If he want’s to leave absurd assertions that make him look clueless to those of us who understand the truth, that’s his problem.

  11. Gold and silver can’t go lower now because they are in the options sweetspots so driving price lower would cost the banks. Further, the banks are ‘covering’ their shorts into this induced momo selling. Also, we are back at strong support levels and come Feb 28 the duty on gold likely ends in India driving massive physical buying. Since we know that the Comex has very little gold/silver left in their vaults to pay out (ie they have to ‘raid’ what little is left in Slv and Gld to get enough to cover their existing raids they can’t raid now since that would force them to get on the bid to buy gold/silver in the open markets to pay off China/Russia/India and all the other sovereigns now seeking physical in massive quantities. Besides, volume on this retracement has been very low relative to the volume on the upside again supporting that this retracement down is about to end. Further, we know that most bullion buying is occurring on Eastern bourses and that tectonic shift is accelerating rendering the days of control for the comex limited

  12. Well, i’d love to hear an honest and thoughtful reply as to why real assets such as gold & silver cannot be monetized in order to enhance liquidity for the sake of supporting the economy .

    Any takers ?

    1. I’ll step in here with one last attempt to answer Rooster’s question, as to why gold & silver can’t be monetized. It’s not about whether gold & silver could be monetized, Rooster, it’s about where is that gold & silver going to come from. The US, on paper, is supposed to be holding over 8000 tons of gold and is supposed to be the largest holder of gold on the planet. The problem is…after decades of selling gold for the purpose of price suppression, a complete unwillingness to allow an audit of any kind by any party, an inability to return even the most modest amounts of gold back to Germany, the raiding of Ukraine’s 35 tons of gold, etc. etc., a lot of very smart, well-connected people are asking the simple question “what if the gold isn’t really there anymore?” A country can’t monetize something it no longer has – that’s everyone’s point. For most people, Germany was the proverbial tell – they ask for 300 tons back, and the US tells them they need 7 years to come up with it, then are only able to send 5 tons the first year. Even the most ardent gold-opponent would have to admit there’s something wrong with that picture…

      1. Thanks Eric …. I know the argument all too well. Used to use it myself, as a matter of fact. The reality is that we don’t know where the “missing gold” is and the real truth can be well guarded with a circle of CB’s, treasuries and the BIS, so I have to throw that out as fact and I don’t wish to use that as a premise for the moment.

        I’ll address another premise you might have. I suspect that you think gold monetization has to have some aspect of legislation or decree from “on high”. It doesn’t. Because gold is a sovereign debt-free asset, it can operate on the natural laws of supply and demand. Fiat law for fiat currency. Market law for market currency. Render unto Caesar , etc.

        The common blind spot for the market’s perception of real-time gold-as-currency is that it has to be top-down. We tend to default to that assumption. Old habits. There is nothing in Law that prohibits me from trading an ounce of gold directly for a new color TV on the basis that the merchant and I agree.

        Here’s the kicker. If real-time gold-as-currency has a systemic benefit for the sake of adding debt-free liquidity , in the process of creating a yin-yang hybrid, the elite cannot condone it. They can’t even appear to condone it even if they were to support it. They simply can’t because we are now operating in real-time and consideration has to be paid to rate-of-change and the health of the debt paradigm (legacy system). That has to be preserved. It’s a yin-yang. No crashes please ! This is exactly why the features of organic change must come from the marketplace and cannot come top-down from the apex of political or financial power.

        You have quite a bit to digest for the moment. You may want to consider the above over the next few weeks. This time is truly different because the real-time genie has been released. Over to you.

        1. Thanks Rooster, “weeks” won’t be needed to digest what you’re saying. And it’s not a case of my disagreeing. If you’re saying – and I’m oversimplifying for the sake of brevity – that it’s time for the peasants to rise up, grab their pitchforks and storm the castle, which in effect is what would result by default if the masses were to attempt to initiate a new system of commerce outside the framework of the current fiat system, lots of people wouldn’t disagree. However, in terms of a gold-monetization system within this country specifically, it can’t happen. This country is gold-poor, and I’m not referring to the government. Too few people have any actual wealth in that format, and too many others sold off whatever wealth they did have to the flood of “Cash for Gold” shops that popped up over the last 4 years. All that gold has headed eastward and isn’t coming back. If you want to start a system where people barter using Devil Dog snack cakes or Chicken McNuggets, you’re living in the right place. Gold & silver? That time is long gone. Owning gold & silver now is simply about wealth preservation for those people who understand the gravity of the situation – I respectfully dismiss the idea that you own gold and silver because you’ll be using it to buy bread and milk.

          I do agree with you that the entrenched elite cannot allow an alternate system to evolve without levying severe consequences. The status quo must be maintained, from their standpoint. Any such alternative system, were it to spring up and take root, would not arise in this country. Pacific Rim maybe, Germany, Netherlands, I don’t know…but not here. That’s just my take on it.

          1. Eric … you mentioned ” This country is gold-poor, and I’m not referring to the government. Too few people have any actual wealth in that format, and too many others sold off whatever wealth they did have to the flood of “Cash for Gold” shops that popped up over the last 4 years”.

            Are you confusing gold as a store of value with gold as a form of currency ? As with any currency, debt or asset based, the value is in the movement. It’s not just about the having. If the US can earn its keep through the movement of wealth (and networking), then you should be looking at the transactional aspect of bullion when measured with USD’s. Keep in mind that USD’s are the lone market measure for bullion whether the other side of the trade (the TV) is priced in dollars or any other fiat currency. The use of the USD is buried into the transactional algorithm and the use of the fiat measure is the use of intellectual property for the sake of a transaction …. but keep mind that this is transactionally based (economic), not time based (usury). It is not usury in this application. It’s like paying a fee for hopping on a streetcar.

            Make and market whatever you like. The currency, whether it be gold or otherwise, will come to you. Even when Paddy in Ireland buys widgets from Bob in Canada and the widgets are priced in Canadian dollars, the FED can still get a piece. The USA baked this into the cake in 1944. We still have two “leftovers” from Bretton Woods….. the USD price peg ….. and the current floating relationship. Both are still with us. Stay with the facts. Facts won’t lie to you.

            You might also have a common blind-spot (very, very common) where you see fiat currency as only serving a function as currency for “settlement”. They serve that “settlment” function on the “dark side” of the liquidity yin-yang ….. but on the emerging light side of that same yin-yang, it’s assets that act as liquidity , while fiat “numbers” act as measuring tools for bullion’s weight. The whole relationship is symbiotic.

            The floating USD is more than just a currency. It is a real-time measure for real-time transactions to support debt-free trade.

            It is light that springs forward out of darkness.

          2. I tried to understand, Rooster, but I don’t follow. It’s above my head, apparently. My parents told me I’d regret dropping out in the 4th grade, looks like they were right.

          3. Eric … here’s a more rudimentary approach. Let’s jump forward a few years. Let’s say you go to buy a pair of shoes. You’re in the USA and the shoes are from Italy on an Italian website and they’re priced in Euro’s. They have a payment processor that allows you to buy in Euro’s or bullion, based on the real-time trade value of the bullion. The bullion payment would be weight based. In essense, a bullion payment would be a transfer of ownership (weight) on reserved bullion that you already have in an account. The concept is much like e-gold if you were ever familiar with it. . In order to translate the fiat price (Euros) into gold weight, the algorithm starts at Euros, translates to USD’s ad then into gold weight using the real-time value of gold relative to USD/oz. The title ownership of the unencumbered and debt free gold goes into the merchant’s account and is deducted from yours. The payment is a debt-free payment and the transaction is a debt-free transaction. The transaction is closed upon the trade and there is no counter-party risk. The trade was gold for shoes … that’s all. In the transaction, the use of the Euro and the USD supported the calculation for the amount of weight to be used for the gold weight settlement, only. Gold is the settlement currency in this case.

            Do you see how the fiat numbers were used in the transaction ? Do they warrant a small part of the transaction fee ?

          4. Now that you’ve taken it back down to the 2nd grade level, I’m back with you Rooster.

            As I understand it – and correct me if I’m off – the system still requires financial and/or custodial intermediaries to make trade possible at more than an arms-length distance. I guess that would be the one area where I’d first want to ensure that risk of hypothecation is eliminated, if that’s even possible. The assumption of a “cleaner” banking system being part of your plan notwithstanding, it feels like having an untrustworthy banking system is something I’ll be living with the rest of my life, and even a monetized-gold system as you’re suggesting requires the insertion of intermediaries. Maybe I’m becoming jaded and skeptical, but where there are banks and financial intermediaries as currently constituted, change seems too far off. But maybe therein lies the rub…maybe such dirt does get cleansed under a system where gold creates debt-free and unemcumbered transactions. I appreciate the exchange – hopefully others get value from it as well. I know as the thread began, it seemed too contentious when I think ultimately we’re not all on opposite sides of this.

          5. That’s a good summary, Eric …. necessary evils and all. The thing about necessary evils is that they are necessary and therefore written into God’s script.

            Had the real-time genie not been let out of the bottle to give us floating bullion valuations back in 1971, real-time floating gold values would not be part of the landscape. …. nor would gold currency , which now has complete scalable liquidity.

            The unfortunate price is that the evil debt genie escaped the same bottle at the same instant. The market irony is that the real-time genie (based on the gold price) holds the only key to getting the debt genie back in the bottle to seal and control it.

          6. I understand what you’re saying, Rooster. We’ll have to agree to disagree about any of this being part of some God’s script, however. Have a good weekend.

          7. I get that from people from time to time. When I read my Bible, 100% of the characters in it are NOT good guys. It’s an interesting script.

  13. All of you are on the hamster wheel going round and round…..You don’t understand, this will never end. The Gov’t can’t let it end. The market will tease you for the next 10 yrs making you think the PM’s will be set free. They will never set them free. Fundamentals mean nothing, shortages mean nothing, demand means nothing….when you can naked short millions of contract of which you actually own nothing, it’s a suckers bet. People say this can’t go on forever….yes it can, and it will. The criminal elite will just create a new and improved way of screwing us over.

  14. Take a big step back and look at the picture. Gold ceased being a currency when Gold was in insufficient amounts to back the factual world currency – for Gold to do so, it would have to be worth closer to $20,000 per ounce. At that time, Gold was a precious metal for other reasons other than it is today.

    At that time Gold was not an asset that was consumable – i.e. depleted – once you burn oil it is gone, back then Gold was not used in such a fashion so it transformed but did not deplete.

    Interestingly enough Gold for the first time IS a non-renewable resource as it is being consumed today and disposed of (circuit boards and other uses), so factually total Gold potential is going down. In addition to this the amount of Gold we have access to is not much.

    There is no replacement for Gold when it comes to it’s electrical properties or it’s use in Jewelry – so for this reason alone, it is an actual asset worth funds.

    The manipulation in Gold is due to preventing a basis banking system being set up by China and Russia. For the next several years you may even see Gold go down to $300.

    HOWEVER, as the asset comes to a close when mines start being unable to extract the remaining Gold (we have mined 80% of the worlds Gold that can be reaosnably obtained), the prices will rise – and sharply.

    This is terrible news for traders but excellent news for those who can wait. Attempt to imagine a moment when the cost of Gold extraction reaches very high levels and when mines shut down completely and we area advised there are only 1-2,000 tonnes left – what happens then?

    Gold will rise, and go through the roof because the desire to own it will not cease nor it’s use in gadgets – once you have an asset that can only go down and the amounts of it’s existence is known well, previous buyers become winners.

    Oil can be replaced by Wind, solar and other technologies – Gold CAN NOT.

    I estimate Gold will rise to levels that will truly define it as an absolute treasure, but that time is 12-18 years away.

    China and Russia may cash in their Gold paper to cause the price to rise, but they will wait as long as they can to do this. Possibly the rush that will happen will leave Gold high, and some without – but those people will be given the contracts price paid out in a market crash – who will pay it is the question.

    1. Gold is still currency , IMO, albeit market currency that abides by market law and not legal tender, which is not a market concept, anyway. The drawback to bullion based systems of the past was liquidity, when prices were fixed. Gold’s liquidity in the role of currency was tied directly and strictly to the amount of gold that was on hand for monetary applications. It is only since 1971 that gold has been able to freely trade with a floating value that gold can be re-monetized and utilized as a store of value that has fully scalable liquidity …. all debt-free.

      The story for bullion, whether it be for monetary reasons or other forms of utility, just keeps getting better.

      Wait until a new wave of private bullion based payment processors comes to market. Then we’ll really see a whole new demand for bullion.

  15. This was a fascinating thread to read. I’m not sure I get it all, but it was surprising to read Rooster’s positive take on it all and I get that gold will always have to go through intermediaries. I’m solid with the fact that shortages of the physical will ultimately force the price up, up up and that the current game is about preventing the Russians and Chinese from launching their own basis banking system. I’m not sure I understand what a private bullion based processor is exactly, so any clarification would be helpful. My ultimate take on it all is that continuing to purchase physical gold is still a good idea, unless you want to gamble on the price falling even further. Hope someone responds to this post because I’d really appreciate it.

    1. JoanBee …. I guess the shortest definition I can give on a bullion based payment processing would be in the spirit of e-gold where banked bullion was held on account for account holders and account holders owned and had clear title of their bullion . Think of it like PayPal but with weight as the unit of account rather than fiat currency. An account hold could send the title ownership (the currency) of his/her gold to any other member and again , the unit of account is based on weight. This is basically a lovely marriage of debt-free store of value with the convenience and liquidity of digital currency.

      1. Hi Rooster,

        I enjoyed the interchange of ideas – basically, I agree with you: that gold is the debt-free antidote to the over-indebtedness currently being experienced by the western world. However, whereas you foresee ‘private’ e-gold exchanges springing up to offer the alternative gold-based approach to trade, it’s quite clear to me that the existing financial banking system already has all the ‘trust’ mechanisms in place to enable such a parallel gold-currency trading system to take place. All it requires is for government to legislate to allow gold-settlements to take place, and also (along with the banks) to get their ‘take’, i.e. appropriate transaction fees and taxes etc. This would allow government & banks to start re-accumulating their gold reserves again.

        What’s not clear to me is when this will occur……..clearly, the US government wants to maximize its extraordinary privilege of owning (and being able to print) the global reserve currency; and since gold cannot be printed (and it is also owned in large part by the Eastern countries etc.) the US is therefore somewhat disadvantaged.

        However, as you very importantly say, in many respects it’s not absolute quantity of owned gold that is important, but its ‘velocity’ of being used in many transactions. Hence, for a large economy like the US, as long as economic activity is being transacted (i.e. get out of the current depression, and get the economy truly back on its feet!), then even a small amount of gold could make a large difference; indeed, allowing gold to greatly inflate in value (and make the current debt-mountain appear that much smaller) would also help. Gold just needs to be set free from its downward manipulations. Somehow, the powers that be need to stop fearing gold, and recognize it as the solution to the current economic depression.

        Chances are, that once the economy is on an even keel again (i.e. interest rates normalized, debt mountain back under control and a manageable percentage of GDP, real economic growth, etc.), the government would legislate against gold again, and marginalize it again from economic activity……but that would be the next stage in the very long-term economic cycle……..

        1. Hi Mike ….

          Why would it require legislation if the system is run from outside of the USA ? Better yet, what if it embraces some of the block-chain features that we have seen with BTC ? When has it become taxable to trade a widget for a piece of gold ? I understand that trading a piece of gold back into a fiat position may have tax implications but are we sure that this applies to a trade that is based on the spirit of barter ? This is not my area of expertise, but I wonder if this may be one of the small windows that God leaves open for us from time-to-time ?

          The ole boys are not cut out for the transactional realities that you recognize in relation to transaction fees. The are event driven , however and relative to the support of an economic transaction, not much different from “hopping on the subway”. The are not time (debt) based.

          1. start your own blog please – if you really think your views are worthwhile, you need to start your own blog and you clearly have the time to write material.

      2. Thanks Rooster. I get that. Do you really think the powers that be will allow it though? Of course the need for the intermediary would still enable them to manipulate it somewhat I guess, yes?

        1. Get his email and communicate with him that way. Or tell him to start up his own blog. He doesn’t need to conduct a non-public blog in the comments section of this blog.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.