What can and will break the paper Gold shorts?
Just one thing.
Buying physical.
People all over the world, buying the real thing.
...and buy they will.
Gold (and silver) coins, and bars.
The disconnect between the paper, and the physical market
is what will break the backs of the derivative shorts.
When no one will sell you any gold for the manipulated
"paper" price... it will end.
And it's not too far away.
401K's have been halved. Money isn't safe in money market
accounts. Everything has bank, mortgage, agency, or derivative
exposure. State's going bankrupt. Pension funds disappearing.
People who wouldn't know a Kuggerand from a Kangaroo, will
soon be buying and holding gold.
A week, or so ago, a historic market event took place. It
was the equivalent of a nuclear tipped missile fired across
America's bow.
I've actually been waiting for someone to mention it here. I
don't think anyone has? In fact, it didn't receive nearly
enough press coverage, or follow up commentary. I don't think
people realize the ramifications of it.
And that event was China and Russia bypassing the dollar
denominated oil market.
atimes.com
China is paying Russia $25 billion now (total deal $50 B)
to develop Eastern Siberian oil supplies sent directly to
China.
No more OPEC $USD's circulated into US Treasuries
= Big US Dollar Problemo!
Russia and China... Global Powers #2, and #3 teaming up,
and bypassing #1's reserve currency.
On top of that... private Russian coporations are about to
default on $400 Billion in loans to European Banks.
That on top of... 3/4th's of Eastern Europe also about to
default on loans to Euro banks.
That on top of... the already ongoing economic implosion
in Europe... with Banks like Deutsche Bank leveraged more
than was Goldman, or Citi.
And then there's the realization that this will not be our
last bank bailout, or stimulus package... with even Nancy
Pelosi saying yesterday that "nationalization is just a
matter of semantics."
Yesterday we had Sen. Bob Corker from Tenn. trapping
Bernanke into a "creeping nationalization, dead man
walking... zombie bank" reality. And then Nancy Pelosi
admits it... saying it's just "Semantics" and then hours
later Obama saying we won't nationalize?
Just weeks ago, Obama told us the world was going to end
if we didn't get this stimulus package passed and now.
Congress didn't get to read it, and Americans didn't get
to see it.
And then last night, he wants to throw a "homecoming pep rally"
and tell us everything is fine, and recovery is just around the
corner (when things are really much worse)?!?!?!
I can't believe that that the gallery didn't start throwing shoes?!?!
He basically told America a complete and total lie last
evening. Obama handed us a shit sandwich and told us it
was Kobe beef.
There are already plenty of reasons to own physical gold,
and I can assure you that the world is going to have a lot
more... very soon.
Trade paper to accumulate physical.
And as Mark Skousen just said...
kitco.com
"As gold inevitably moves higher in price, and stock prices and the dollar fall further, the politicians of envy will speak out against the hoarders of gold and silver. They may not confiscate your gold, but they might dump Treasury gold on the market, or tax it heavily. Smart gold bugs buy their silver dollars and American eagles privately, and store it away secretly."
Be a good scout, and be prepared.
SOTB |
