Thursday, September 3, 2009

WATTA MOVE IN GOLD

As I have said many times ...we are going to get a correction in Gold.......BULLSHIT.....I have been so wrong to date....but there is always tomorrow. You should be happy with your position in the miners gg ssri auy slw boom boom kaBOOM....Isn't life great......barf on my silver short hedge ZSL.......but I am still holding .. watch 1000 tomorrow if it breaks over its onward for gold. Things are very messed up here.. the China demand for gold today from the London banksters is big and foretells problems down the road for the banksters......Is this the long awaited parabolic move beginning......dunno. but it is worrisome.

Banksters do not have the physical gold to cover their shorts and paper gold so things can really get hairy here. I am counting on the banksters to maintain the Ponzi awhile longer so pullback on metals comeing (wishful thinking see multiple previous posts)...anyway couple of links provided but not a fear trade on gold today. This is all a titanic struggle between fiat banksters and sovereign banks......fighting the stranglehold of the dollar status.....

http://www.marketwatch.com/story/hong-kong-recalls-gold-reserves-from-london-2009-09-03?link=kiosk

http://www.econlib.org/library/Columns/y2009/Hummeltbills.html


Big move coming in metals......keep informed gang look at all sides.......
http://news.goldseek.com/GoldSeek/1251987803.php

3 comments:

  1. heheheh

    Where do you think natural gas learned all the tricks for selling oversubscribed future paper assets from? The who needs to produce when you can get rich trading paper, while everyone freezes later this winter.

    Wonder whose physical gold London will "borrow" to repay Hong Kong's repatriation of their "real money"?

    In natural gas you sell forward contracts to drive down the price to wipe out your smaller competition and then buy their assets at a fire sale to cover your physical obligations not covered by offsetting contracts.

    With gold you find some physical reserves not long borrowed away on the gold/yen/dollar carry trade, preferably from another sovereign nation or private trustee who fell asleep at the hen house. Anything else still missing you have to scrounge on the open market (Good Luck).

    Currently in the article Hong Kong has about $63 million in physical 7/31 or about 68000 troy oz, or 680 100 oz. bars (100mm x 63.5mm). Only 5 square feet (The area of nice toilet stool and about as high) out of their 3,660-square-foot depository is needed for their pre-repatriate gold. This amount is somewhere between 2 to 3 tons. Some wealthy individuals and families have close to that amount stashed under their mattress.

    No the bigger issues include how much of China's forex reserve currently and going will be in physical gold, how much of the US and ECB physical gold reserves are still left and not loaned out long ago and are now just accounting entries, the quality of the remaining physical reserves of the US and ECB, how many other countries will follow HK in repatriating their physical gold home from London and New York before it becomes just another accounting entry with the physical looted and hidden under the mattresses or used to line the toilets of one the 300 ruling families.

    2008:
    The US gold reserve totaled 8133.5 tons in September 2008, accounting for 76.5% of its total forex reserves. The ECB’s 533.6 tons and Japan’s 765.2 tons, respectively, accounted for 20.1% and 1.9% of total forex reserves of each. China’s holdings of 1054 ton of gold make up about 1% of its total forex reserves.

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  2. btw keep you eye on the shell game to find out whose physical gold goes to Hong Kong.....someone will cough it up....

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  3. Thanks for the tip on GORO Kli and Anonymous. Got in at $7.00 early.

    While I did miss a chance to buy on what looks like the most obvious shakeout I've seen in months, shakeouts like that tend to be bullish signs. Better to be approximately right than exactly wrong and it looks like someone wanted to dump a bunch of people who picked the "exactly wrong" time to play with stop-losses.

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