[[Their main stealth maneuvers will be accumulating gold]]
Jim, as you know, I agree with you on this and believe that the chinese/islamic nations will eventually use gold to put the US to its knees. The piece below, from Harry Schultz, is a bit dated 3/02 but speaks to the concerns you've been addressing.
hsletter.com
Gold shareholders: My motivation in pushing gold mine chairmen to close out their hedges quickly is to help them realize the danger, as follows: A gold bull mkt (which will ignite on a 2-day close over 305) will later, freakishly & ironically, bust most investors holding shares in gold producers who have hedges of any kind. Gold will, IMO, streak first to $354 (that number produced via derivative extrapolation), where all hedged mines will bankrupt, & central banks will sell gold, sending it back to $270-$300 (?) scaring out the bulls. But derivative damage will have been so great, & mine output slashed, the price will resume its rise (as it did after a 50% fall in 1974-76 from $200 to 100), till it reaches $1,450 or better, drawing in the bulk of the public at prices over $354, 529 & 800. Then when every short has covered, who will buy? Nobody, & the fall thereafter will be so violent as to disqualify gold as a reserve asset, for such volatility. There would go our hopes for a return to the Gold Standard. The result could be gold back to $35 in our lifetime. We must prevent that. Read on.
A mega-derivative squeeze is coming from Hung Fat & Dr. No. (ie, 1-2 trillionaire Chinese), which will shred the present day gold cartel into confetti. With them will go all the hedged mines! And their shareholders! Currently, U must note the concentrated gold buying on reactions, very different from the past 2 decades. Gold's bull move will only help Hung Fat & Dr. No & traders using our new gold chart service (& following it when the stakes are high & unrealized!). Before Central Banks fight the $305 & $354 levels, gold producers have the greatest (& last) opportunity in their corporate lifetimes to 'get the hell out' of every hedge position. They risk class action suits & worse if they don't. There is very little time left to do this. |
