Nice post bobby. From USA Gold site.................
!!!!IMPORTANT ANALYSIS TODAY READ CAREFULLY!!!!!
MARKET UPDATE (02/20/98) AM-----Gold was down this morning in quiet, directionless trading. The lack of news had traders on the side-line waiting to see which way the metal was going to go. Silver's getting hammered while Warren Buffett continues to take delivery of massive amounts in London. Physical silver in the U.S. continues to be bid at 50› to 60› below the posted spot prices in New York. Much of the silver in the United States is in the form of 100 oz. bars. These are non-deliverable loco London and have to be remelted into acceptable 1000 ounce bars. There is a cost involved for remelting. In addition all the refineries are booked solid for meltdown. With the market in backwardation, clearing houses in the United States, and around the world, are having to pay double interest -- once to buy the silver from the public and second, as a penalty, for the market being in backwardation when they try to forward the metal. THIS IS NOT A GOOD TIME TO SELL SILVER. HOLD and WAIT. Some questions have arisen why Buffett is taking delivery in London. There is a reason for it and it would be interesting to know why he has chosen London over U.S. storage. A respected source of USAGOLD says that Buffett's sending the silver to London may have to do with the suits filed by the short sellers who have been caught in this market. The suit has been a failed attempt to put a stop to Buffett's purchases with NYMEX coming out publicly against the short sellers. All of this is an interesting story which will be covered in depth in the next issue of News & Views.
All of the things that have happened to silver in recent months could happen to gold in the future. Do not forget that Berkshire-Hathaway is only one of many mutual funds that could be moving into the precious metals markets in the months and years to come. If you are a physical buyer of gold, there is very strong incentive to acquire gold now while you can at reasonable prices. The central bank selling and lending is coming to the end of the road with the launching of the new gold-backed euro. Today the ruling LDP party in Japan came out for a greater role for the yen in Asia. "Can we keep depending on the dollar?" said Shin Sakurai, a senior LDP official. "Europe will be using two main currencies, the dollar and euro. We are looking into a new currency system where the yen will play a central role." This is nothing new, fellow goldmeisters. It is something talked about in THE ABCs of GOLD INVESTING when others kept it from the public. The central bankers have been talking about a tri-currency system to replace the dollar for at least two years. The concept first publicly surfaced at a conference of central bankers in London in late 1996. The mainstream press has simply dropped the ball on this like they have so many other important issues to the American people. This will be an unmitigated disaster for the dollar as all that fiat currency will be looking for a home -- inflation will skyrocket in the U.S. We doubt that you will see much in the way of realistic analysis on this subject from the mainstream press in the futre. This announcement by the ruling LDP party is more posturing before the big G-8 meeting in London. It will be no doubt rancorous like other recent meetings with all sides sniping at each other. There is no doubt though that the dollar is being thrown over the side and those engineering the upcoming dollar tragedy do not want the American public aware of it, or get an inkling of its consequences. It is fitting that it takes place in London where so much of the intrigue in recent years has been centered. |
