Gold/Currency Warning!!
The following posts (taken from Kitco) reveal a very extreme view of what may happen to the currency and metals markets. Does anyone have an opinion on the accuracy of these posts, and the likelihood of the proposed scenario?
FWIW:
Date: Sun Sep 14 1997 21:12
ANOTHER (an answer?):
This could be an answer directed to the "Red Baron"?
The CBs are becoming "primary suppliers" to the gold market. Understand
that they are not doing this because they want to, they have to.
The words are spoken to show a need to raise capital but we knew that was a
screen from long ago. You will find the answer to the LBMA problem if you
follow a route that connects South Africa, The middle east, India and then
into Asia!
Remember this; the western world uses paper as a real value, but oil and
gold will never flow in the same direction.
Big Trader
Date: Sun Oct 05 1997 21:29
ANOTHER ( THOUGHTS! ) ID#60253:
Everyone knows where we have been. Let's see where we are going!
It was once said that "gold and oil can never flow in the same direction".
If the current price of oil doesn't change soon we will no doubt run out of
gold. This line of thinking is very real in the world today but it is never
discussed openly. You see oil flow is the key to gold flow. It is the
movement of gold in the hidden background that has kept oil at these low
prices. Not military might, not a strong US dollar, not political pressure,
no it was real gold. In very large amounts. Oil is the only commodity in
the world that was large enough forgold to hide in. Noone could make the
South African / Asian connection when the question was asked, "how could
LBMA do so many gold deals and not impact the price". That's because oil is
being partially used to pay for gold! We are going to find out that the
price of gold, in terms of real money ( oil ) has gone thru the roof over
these last few years. People wondered how the physical gold market could be
"cornered" when it's currency price wasn't rising and no shortages were
showing up? The CBs were becoming the primary suppliers by replacing openly
held gold with CB certificates. This action has helped keep gold flowing
during a time that trading would have locked up. ( Gold has always been
funny in that way. So many people worldwide think of it as money, it tends
to dry up as the price rises. ) Westerners should not be too upset with the
CBs actions, they are buying you time!
So why has this played out this way? In the real world some people know
that gold is real wealth no matter what currency price is put on it. Around
the world it is traded in huge volumes that never show up on bank
statements, govt. stats., or trading graph paper. The Western governments
needed to keep the price of gold down so it could flow where they needed it
to flow. The key to free up gold was simple. The Western public will not
hold an asset that going nowhere, at least in currency terms. ( if one can
only see value in paper currency terms then one cannot see value at all )
The problem for the CBs was that the third world has kept the gold market
"bought up" by working thru South Africa! To avoid a spiking oil price the
CBs first freed up the publics gold thru the issuance of various types of
"paper future gold". As that selling dried up they did the only thing they
could, become primary suppliers! And here we are today. In the early 1990s
oil went to $30++ for reasons we all know. What isn't known is that it's
price didn't drop that much. You see the trading medium changed. Oil went
from $30++ to $19 + X amount of gold! Today it costs $19 + XXX amount of
gold! Yes, gold has gone up and oil has stayed the same in most eyes. Now
all govts. don't get gold for oil, just a few. That's all it takes. For
now! When everyone that has exchanged gold for paper finds out it's real
price, in oil terms they will try to get it back. The great scramble that
"Big Trader" understood may be very, very close.
Now my friends you know where we are at and with a little thought , where
we are going.
Date: Tue Oct 07 1997 22:37
ANOTHER (THOUGHTS!) ID#60253:
The market is changing now,,, it will go up but you will not be happy with
the outcome.
Why did LBMA go public?
Ever notice how many important middle eastern people keep a residence in
London. It's not because of the climate. The most powerful banks in the
world today are the ones that trade oil and gold. It is in the "city" that
the deals are done by people who understand "value"! Westerners should be
happy that they do because the free flow of oil and gold has allowed this
economic expansion to continue this past few years.
Understand that oil is still traded for a certain number of US$ but after
the deal is done a certain amount of gold is also purchased "with the
future flow of oil as collateral". If the world price of gold gets to high
then the oil price is falling. So long as gold stays cheap in currency
terms oil will be in good supply.
Too hard to follow? If real physical gold trading dries up it's price will
rise forcing down the value of oil. All this year physical gold volume kept
drying up as paper short volume exploded. But,each time before a squeeze
started to run the price the CBs would sell thru LBMA . You see, when paper
trading ( of anything ) volume dries up it's a bearish sign but when real
physical gold volume drops it's bullish! Thats because gold is being
cornered on a scale never seen in history. LBMA is doing it's best to show
real volume exists! The problem is, "if the CBs don't expand their roll as
"primary suppliers" LBMA will implode and in the process create the
greatest bull market in oil and gold the world has ever seen. That is why
some "Big Traders" are holding ONLY gold as events unfold. Interesting,
don't you think? |
