The price of gold is headed below the cost of production for many MANY
producers. It is not being dictated by supply/demand which is as great as it has ever been.
POG is being dictated by the Master Plan for getting the 1942 Bretton Woods Currency Accord implemented, which calls for a second reserve currency which they then labelled European Monetary Unit or "EMU"...
that is until someone in the 90s pointed out an EMU was t'name of a rather rare but tasty large bird)
Most of us goldbugs are currently unequivocal about 5 things:
1) Price of Au production in So. Africa is above $308 T/oz even with hedging programs...
2) The normal 9yr gold cycle has been interrupted. It has been a sell all rallies market for 15 years now.
3) The normal annual "buy the 'demand months' of Sept-Nov" hasn't occurred for 2 yrs in a row now...further proof of manipulation.
4) The role of gold in Central Bank reserves is still the ultimate measure by which a nation's creditworthiness is STILLLLLL measured.
(Just look at what the IMF requires member nations to fork over as a price of admission inorder to insure their international lender of last resort status: yep, GOLD!)
5) The Bretton Woods Act Timetable is just 14 months away from full implementation of the EMU.
Please visit my website if you haven't gotten there yet, and review the EMU/Bretton Woods Time Line chart as published in Business Week over 1 year ago.
worldaccessnet.com
worldaccessnet.com
Speaking of a gold sell-off, Robert Prechter, who is a reeeeeal researcher at heart, was the first one to pound the table back at $450-480 gold that we'd see $265 T/oz before we'd see $500 Au again.
It is my conviction that we will quite possibly see $195 gold before all is said and done, frankly.
Why? Two reasons: Pendulum swings are as customarily overdone on the low side as the swing was on the high side...ala $810 T/oz gold back when.
And,
2) the 5-8 year gold forward contracting at mucho higher prices most big producers implemented was done to get them past this EMU introduction phase until the global foot came off the brake of gold prices!
You know something, it's funny,
but Peter Munk (ABX CEO) in an CNBC interview just a couple weeks ago talked about the impact of the introduction of the EMU as being the single most overriding factor in the pricing of gold currently. And he further stated that most folks didn't understand this.
Now if the CEO of the world's Largest Gold Mining Company sez this....
well, it's nice to know he thinks what I've noodled out all by mahselfen!(grin)
Just for a minute, say you still have an open mind at the moment:
The bottom line is this:
Gold HAS BEEN AND STILL IS the reserve "currency of Choice."
US $ has been officially tagged as t'"new reserve currency" of choice, meaning that owning the US dollar is as good as gold. Why?
Mainly because of WIDE DISTRIBUTION of both!!!..yellow gold is
widely distributed a/w/a green pictures of our dead presidents.
For there to be a "successful" introduction/57+ year timeline for the EMU (aka Bretton Woods Currency Act of 1942)
then
2 things must happen to make the EMU instantly appear as strong
(read above as "brilliant idea by original BWCA committee")
Gold Price has to be weakened by manipulating the perception of above
ground supply (aka the "selling pressure-Gold" of Central Banks"--to other central banks of course but the media doesn't tell us that!!)
and....
the CONCURRENT of the US Dollar.
When...
these two weakenings is pronounced "Mission Accomplished" (and the major deval of the US$ is weeeelllllllllllllllllllllllllllllllllllllll underway) and another deval chunk lies ahead of us, folks!...
then...
Gold=US$=EU
One thing I'd like to remind you of in closing:
The World Bank Head Honcho is none other than Paul Volker...the gent who oversaw/engineered the biggest-inflation-US$-spiral-in-our-
Gold=US$-in-Carter-Administration-as-the-head-of-our-Federal-Reserve-
Central-Bank history! (Some say it started w/Pre-Volker Miller)
Volker didn't leave the Fed Reserve Post as a failure...he was kicked upstairs and the world renowned goldbug, Alan Greenspan, was installed here as Volcker went to Europe to implement the next phase of Bretton Woods Currency Act of 1942.
Now, you want a peek into the future? Comtemplate that last paragraph and then throw this into the grist mill:
The Bretton Woods Currency Act of 1942 was designed to do 2 things:
Restore European Financial Stability after WWII
AS WELL AS
Japan's Financial Stability after WWII.
There is a sequel to the EMU...it has not been named yet, but it IS labelled in the Bretton Woods Currency Act Accord of 1942...
Yes, ladies and gentlemen:
We will go through this again after the launch of the EU in Jan 1 1999
and it will be an Asian Monetary Unit-AMU.
So, what should one be collecting in this
Gold=US$=EMU=AMU period?
GOLD!
ALL THE REST IS JUST (TOILET) PAPER! |
