|Not always a straight line !!|
|Not always a straight line !!|
|Do you have one of these ?|
A CITI for Two Tails or Three Blind Mice?
Well CITI might be a player but the Mice are represented pretty clearly.
Mouse #1, ETF JNUG, VanEck GDXJ fund. Gets cheese from;
Mouse #2, Miners in the GDXJ, past, present, and future, provide Cheese;
Mouse #3, Spot Gold price(the Cheese, here), driving price of Cheese.
All of which get their tails cut off by the Farmer’s Wife who manipulates the Gold Price and hence the price of the CHEESE. They own the dairy.
Simply put, there is a not enough Cheese to go around. Imagine for a moment, Montgomery Gentry’s song “Daddy Won’t Sell the Farm”,
see in your mind’s eye the run down dairy farm outside a major metro area such as the Boston to Washington Metroplex. Never ever in Ma & Pa’s wildest dreams will they supply cheese to this MetroPlex. Not even 1% Soooo,
What we have here
“...is a failure to communicate…”, the reality that Gold Equities are less than 0.15 % of the assets in just pension funds alone in the US.
JUST PENSION FUNDS !! Not even Investment Funds !!
Let that sink in. LESS than 1/7th of 1 % ! ! I’ll let Kevin Muir of The Macro Tourist’s Blog recent article help you digest that at his blog,
There is not enough cheese to go around even if it’s ground into little teeny tiny crumbs like Parmesan !!!
So if we take a scientific wild-assed-guess (SWAG), we do “back of the envelope” math and figure there is about 23 grams of gold per person on the planet. Check and see if you have yours. No ? Ok then who has it ? Very close to home and you find out that sovereign entities have most of it under their legal control. Now sad to say that includes both the ECB and the IMF. But they are the tip of the iceberg. In no particular order, Gold is held by Austria, China, Russia, Switzerland, Turkey, Italy, Japan, Netherlands, England(UK), Germany, India, France, USA, and Taiwan, in the name of their country(people). But it all seems stuck in national treasuries, not part of the tangible wealth of their populations. Only China and Turkey have encourage long term acquisition of Gold by the common people, and Turkey is suspect of considering calling all it can, into the national treasury.
Who has physical gold under their control? Not The People, but rather the governments. Who has control of the governments? THEY control the GOLD, and are making sure it is NOT distributed amongst the populations of those countries.
Thus obtaining the Gold by exchanging it for fiat paper notes, and digital debt promises, those controlling the Govts, have managed to obtain the lion’s share of the physical gold and keep accumulating more.
As long as you play ball with the members of this club, you can keep your gold, but don’t do what Libya did and distribute it to your population and base a trade system on it. That would disrupt the flow of gold into said govts, in trade for paper fiat notes and digital debt promises.
That a No-No. Big No-No, backed up by bullets and bombs.
Pretty easy to see why the Farmer and his Wife, the Bullion Bankers work with stealth, and determination to flim-flam the markets out of the physical gold by manipulating the physical price with paper contracts as long as they can. Indeed one day, physical may rule, but only after we de-throne the Paper (Moon) trade(con-game).
Conclusion: (at least mine) The GDXJ dislocation and kerfuffle comes about because:
A/ People want a stake in Gold and Gold Equities;
B/ Manipulated prices for PHYSICAL Gold make it impossible for fair distribution for physical, considering the propaganda war on gold, and
C/ Manipulated Gold prices make it impossible for enough companies to survive to supply the ETF’s with the stock needed to supply demand for the ETF shares.
Simple as A, B, C. Follow the crumbs down the Yellow Brick Road, maybe you’ll find some cheese. For a “Cheese-Detector” Sign UP !!
Good luck cheese hunting.