This is from NumismaticNews. I will be posting a link, and in the past have had this OK'd Here is the link: http://numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=10006 I do not thik this violates CT's Policy if it does please let me know and I will remove it. Regards, Stan
1/100th is scary, but not surprising. I did a little bit of research into gold a few years back, but didn't think it was to that extent of a ratio! I sorta surmised that there was a lot of Vapor being pushed around. I'm no expert, but I wonder what the ratio really would be if all the conspiracy theorists are correct, and there's a lot of light bulb filaments mixed into those actual stockpiles too!
If I'm understanding this correct, this is basically a stock market, or maybe just another way of gambling. If I personally want to invest in any precious metal, it will physically be in the palm of my hand upon payment for it. I find it hard to believe that some of the smartest investors and businessmen in the world are stunningly dumb enough to fall for a gold contract.
This is what happens when people start living on promises rather than actually creating THINGS. Why should gold be any different than Credit default swaps or index funds of companies who no longer make their money by producing THINGS rather than empty words and promises.
When reading this the first thing that came to mind was "Black Thursday, October 24, 1929". I mean this is literally just a repeat to some extent is it not? Regards, Stan
The story isn't as dire as it sounds since it is written with a pro-gold slant. It is true that the shorts in the futures market do not have enough gold in their possession to cover a delivery demand. But it is also true that the longs in the futures market do not have enough cash in their possession to purchase the physical gold implied in their contracts. I think what the CFTC is studying are the position limits and regulations needed to enable the futures market to establish a price based on physical supply and demand without stopping the speculators since they are an important part of the price discovery process. Stay tuned.
Now we will start to see where this will go it is starting to get into main stream media( Sort Of) We'll see who picks it up next. http://www.nypost.com/p/news/business/metal_are_in_the_pits_2arTlGNbMK7mb1uJeVHb0O/1 Terry
I'm not surprised to hear this. How is this any different than fractional reserve banking? I guess people have accepted that everyone can't withdrawl cash all at once but I dont' think that mindset is generally accepted on the commodities exhanges - atleast not among individual investors. Institutions know about the shell game because they are running it.
From B. Traven's book "The Treasure of the Sierra Madre", published in 1935: Anyway, gold is a very devilish sort of a thing, believe me, boys. In the first place, it changes your character entirely. When you have it your soul is no longer the same as it was before. No getting away from that. You may have so much piled up that you cant carry it away; but, bet your blessed paradise, the more you have, the more you want to add, to make it just that much more.
