Tuesday, June 5, 2012

It happened in Argentina, so it could a lot of places

    I repeat this for the benefit of those of who get lost in the thicket of news and conflicting data. It may or may not happen this way, but the way things have shaped up in the last Month, make me think that any day we could awake to this News Release by the FINANCIAL AUTHORITIES as the word of their STEALTH RE-CAPITALIZATION of BANKS with UP-VALUED GOLD TIER 1 ASSETS leaks out :
Considering the talk of Re-Capitalization; the Federal States of Europe, the re-classification of GOLD as a TIER 1 Reserve ASSET, and the rest, this is not too far fetched:

 Oh yes, Bank Runs all over Europe, Spain now BEGGING for a bailout, what is next ?  Maybe this:

  Straight out of a Jim Sinclair scenario:
   "Today is Monday the XXth, and Gold opened at $ 3,010.24 with Silver opening at $54.21.  Markets are chaotic but the general markets appear stable to stronger led by a huge rally in the Precious Metals complex that started stealthily during the week of April 23, but appeared subdued.   Monetary Authorities, as such had mostly "NO COMMENT", except for the Dutch Govt that was concerned that popular support for the Party that released Dutch Gold into the market stream in the last decade would be summarily removed from power as early as this afternoon.  Market analysts suggested that large Asian buyers had triggered this move, as the market shuffles Gold around as the markets attempt to substitute Gold shipments for payments formerly made under the SWIFT System.  One trader suggested someone was not waiting for the ABCDE XX deadline, but protecting their assets before the Banks freeze all accounts."

Saturday, June 2, 2012

It will be time to re-float the ship of finance>thecrash

Gold  will probably be necessary to go to 10K or farther as Alf Fields or Jim Sinclair might calculate, to actually recapitalize the institutions necessary to the survival of the financial systems of trade.
I'll make the same case I did for it in 1974.  Gold needs to a reserve asset, valued realistically so that trade CAN float on a sea of liquidity.  Right now the tide is going out and leaving everyone stranded. We need to have enuf liquid to refloat things after they ground themselves on the reefs of derivatives.

Lets make the case.  Sovereign Gvt Debt is used as a reserve for  $ 710  Trillions of derivatives.  When that balloon goes POP, what props up the derivatives?  Gee what do we have here we can use for reserves ?  Banana's?
Quionua?  Tomatoes ?  NAW, all too perishable.  Maybe LUMBER?  How about Marble ? They wont rot........hmmm Naw.......OIL, maybe OIL?   OK, sour crude or sweet API 40 ?  What will "GOOD DELIVERY OIL" look like?  Will central banks trade it amongst themselves?

 Gee if there were  only enough Silver and Gold.  Duh....... What we have too much of, and are awash in, is currency, digital, paper, debt etc.  So as J.P.Morgan, ya know the REAL GUY, said, GOLD is MONEY, everything else is credit (debt).  WoW, now that was a FLASH !  So gold, @ USD 100 per OZ overvalues the U$D and undervalues GOLD.  NEWS FLASH, GOLD Values Paper.

Ok, lets move forward.  So Gold @ 1,000U$D per oz, overvalues U$D and undervalues GOLD.  OK, lets try this AGAIN, only this time, lets use the system that JIM SINCLAIR let out of the bag last year:  INTERNATIONAL RESERVE CURRENCY VALUATION PEG.  Gold starts out, trading @ 10,000 U$D per OZ, trading amongst Central Banks bidding on it through a SUPPLY & DEMAND algorithm calculated via an independent 3rd Party whose integrity is guaranteed by all the member banks( do you think they trust each other?LOL).
There is a Limit UP and a Limit DOWN daily.  No gold is traded outside the IRCVP system, but gold dealers are free to trade it where they want.  Currencies are thus linked to gold by their respective countries and are bought and sold thru FOREX reflecting these values and the trade balances thereof.
NOT ROCKET SCIENCE and very mundane in this day and age of computers.

IMO, Sinclair let this out of the bag, as he knows it WILL be the way, as it is the ONLY WAY it can be to maintain world trade, and finance as we know it.

Again, IMO > all the yapping lapdogs of the finance establishment can howl to their masters hearts content, but in the final analysis, nothing will stand, except GOLD, to be the foundation for the new system that will be necessary to re-kindle the fires of trade, and to float the boats carrying the goods to and from our respective countries.

Friday, June 1, 2012

June 1, 2012
As OF 5/30,2012 11am
US Silver Eagle U$D32.55
CDN Maple Leaf $CDN 32.73
US 90% Silver Coins 21.7X Face
CDN 80% Silver Coins 16.85X
Deliverable Silver (wholesale/local)$31.60 U$D@oz. ASE U$D 35.81CML $C 36.00.
   By the close JUN 1,   FAIR TRADED Local Deliverable Silver price for 1 CML or ASE=C$37.86 or U$D 36.36.

  Naw, the wheels didn't come off today............the lugs have been loosening for a long time and the driver just keeps turning up the radio to cover the noise.......... 

This time it was different, as TPTB realized a De-railment of "Business as Usual" was in progress.  Gold and Gold Stocks disconnected from the almost 300 Pt drop in the Dow, and it was like "Back in the Day" when the Gold Stocks countered the moves in the Gen'l Mkt.