2012 Silver Crash?

There is a lot of cash on the side lines. If inflation hits harder, a lot of money will be lost.
Silver and gold then only have one direction.

Pep

 

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Morgandude11, here's the chart I'd like to see.

Years, 1982-2012, price of gold in 7 currencies: US dollar, Canada dollar, Australia dollar, yen, yuan, pound, and Euro, graphed as a percentage above or below the baseline price on January 1, 1982. This will show true relative inflation among the 7 currencies, which I am curious about.

 

Yes indeed, that would be interesting. For me, an interesting aspect is to understand how PMs can be flat or down if the USD is doing well relative to other currencies...even during times of inflation.

 

What most do is simply measure the dollar versus a basket of currencies, and then measure how much the price increase or decrease in PM is due to dollar action versus PM action. THis is what Kitco does daily. Charts of dollar strength versus other currencies are easily Googlable.

 

You're right...I always enjoy the vast wealth of info at kitco.

 

yea I guess it makes a lot of sense to dutifully believe confirmed liars....... Govt's throughout history have always been honest and looked out for the best interests of their citizens....

 

thanks fatima

 

Supposedly the Federal Reseral Reserve, ( which is neither Federal,or a reserve ) has more gold than Fort Knox.
Only the Shadow Knows.

Pep

 

As long as there are problems like we have today it will be a long time before we see silver below 20 dollars again eurozone and 17,000,000,000,000 in us debt, taxmagedon, fiscal cliff, plus silver unlike gold has alot more industrial uses one being medical (think of all the babyboomers) factor that in and I dont see silver going down anytime soon

 

and physical and paper silver are 2 different things

 

Almost right; only www.shadowstats.com knows.

At the moment, the Fed has one and ONLY ONE mission -- to keep our dear country from falling off the cliff until after the November elections. All other missions are forgotten, compromised, subverted, or subordinated to politics.

 

They are supposed to have the single largest depository of gold in the world at the gold vault of the NY Fed. The US government has more gold than this but it's not all at Ft. Knox. There is a depository at West Point and at least another or two that I don't remember.

The gold at the NY Federal Reserve does not belong to the US Government, US Treasury or people. The Federal Reserve only states this gold is being held for other countries AND for unspecified monetary operations. The best known secret is that a portion of this good is actually the W. German (now just Germany) gold reserves. It could be in the range of ~3000 tons or more. Supposedly it was moved to NY some time after the Cold War with the Soviets got serious. They wanted to prevent the Soviets from getting their hands on this gold should the anticipated invasion of West Germany take place by the Eastern Bloc & Soviets. It hasn't been returned. Also for unknown reasons.

 

Both Germany and Switzerland have requested that THEIR gold, held by the Federal Reserve Bank of New York, be returned (March 2012) --


Blog posted on March 9, 2012 by Josh Renfro

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This week saw two huge developments in the gold and silver world. Earlier in the week Germany request that its 3,396.3 tons of gold be transferred from being held abroad to local storage. Germany right now is one of the top 4 holders of gold as a reserve in the world.
Merely days later Switzerland also announced that they were seriously considering moving their 2,590 tons of gold that are currently being held abroad back to Switzerland. In fact, the Swiss parliament will be considering three different initiatives. First, the government would require that all Swiss gold must be held in Switzerland. Second, the government would be prohibited from selling any of the Swiss gold reserves. Third, the government would be required to always keep 20% of all the country’s reserves in gold. Switzerland currently is the worlds fourth larger holder of gold reserves.

 

Maybe world events such as this might shed some new light on opinions regarding hard assets.

 

Yes, and it's a further reflection of the appeal of physical possession. Plus, the New York Federal Reserve Bank, and all of Manhattan for that matter, remain highly susceptible to terrorist attack. Any one of the dozens of old ragtag freighters entering New York harbor every day could carry a lethal virus or a nuclear weapon. And just who would we retaliate against?

 

Our government used the Social Security funds . Medicare funds have been massaged so why would they not just borrow a bit of gold for a while ?

Pep

 

Not to mention they raided government pensions prior to hiking the debt ceiling last year. Then there is all the recursive gold leasing. Add in that there hasn't been a gold audit of Fort Knox in nearly half a century, and that there is roughly only $350 billion of gold anyway, a drop in the bucket of today's monetary ocean. It doesn't take a rocket scientist to put the pieces together.

 

I see what you're saying and and its a lot like that here in the uk. Sure the percentage of gold st andard in currencies is just a small part of there overinflated value but at least it would be worth something in a big crash.

 

Exactly how were pensions raided? What are the details of that?

 

Maybe (?) this is the story. From the Internet:

[January 2012] In a letter to Congress earlier this week, Treasury Secretary Timothy Geithner said he would "be unable to invest fully" the federal employees retirement system, a tactic the federal government has had to employ six times over the past 20 years in order to remain under the statutory debt ceiling limit.

In addition to shortchanging federal employee retirement, Geithner "has already tapped another seldom-used fund in order to allow the government to continue borrowing without running afoul of the country's laws," according to Reuters, which of course didn't name the "seldom-used fund."

The Treasury-sponsored raid this week follows an earlier one in May 2011, when Geithner once again took to stealing the retirement funds of unsuspecting federal workers in order to finance the voracious, expanding Leviathan State. Then as now, Congress dithered. And a question arises: Did Treasury replace the funds it raided, or did the department do what Congress did to the Social Security system - issue IOU's the government can never repay?

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