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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (56519)	10/15/2009 5:57:26 PM
From: TobagoJack	Respond to of 217948

the volatility may whip and then lash i will stay pure faithful for now

To: carranza2 who wrote (56519)	10/15/2009 11:05:56 PM
From: TobagoJack	1 Recommendation Read Replies (3) \| Respond to of 217948

just in in-tray player 2: news.goldseek.com player 1: if a scandal were to develop over allocated and unallocated gold in London, with the backdrop of unallocated gold 'masquerading' as allocated gold in order to coumouflage a shortage of bars, weeelllll. that would be quite something. next someone would want central bank gold to be audited (ouch!). note, there is a huge, huge paper gold pyramid atop whatever physical gold there really is. if a run on the bullion banks were to develop, it would likely become the most momentous crisis yet. my recommendation: closely watch GOFO and the futures forward curve. if a scandal is about to blow, it will be pre-announced there (i.e. by GOFO going negative, and the futures curve beginning to slope down into backwardation). let's keep our eyes peeled. note: the above is in acknowledgment of Dr. Fekete's theory that a functioning gold futures market (i.e. one that can reliably guarantee delivery of physical bulllion, even if such delivery demands are rare) is an essential cog in the entire monetary machinery. as long as holders of govt. debt and fiat money can be reasonably assured that they can exchange their fiat money for gold in extremis, the system enjoys a certain measure of trust. should even 'free-floating' gold convertibility become dubious, the whole enchilada could blow sky-high.