If you look at JP Morgan, their eligible gold, which is the stock they can deliver, has been down 65% just in the last couple of days. And COMEX, their stock is also down to about half of what it was over a year ago. Premiums now in Singapore are up $3 per ounce. If we now look at the Swiss refiners, remember Swiss refiners refine 70% of the world’s gold, the Swiss refiners are increasing premiums substantially.
They (Swiss refiners) already increased it (premiums) once, and they are increasing it again, and they can’t keep up with production. They are producing 24 hours a day, 7 days a week. Some refiners have major delays now, up to four weeks, because they can’t keep up with demand.
Now as an investory/zombie how do you avoid the scrap heap of the greatest collapse in history. Oh....wait.....you ask...what collapse? So you still don't think we are in collapse because you can still go to Starbucks and stand in line while the zombies stand in line for 5 dollar cups of coffee...or you go to Applebee's and there's a wait while hoards of zombies watch big screen TV's and swill cold beer. You my zombie friend are delusional. You my friend are ignoring what is happening all around many parts of THIS country NOT TO MENTION THE REST OF THE WORLD. Spain is in full depression and in full revolt. Same in Greece, Ireland, and Cyprus. Italy is entering depression this year as is Portugal and Slovenia. All of these countries will drag Europe and the rest of the world into recession then depression. Western banking powers are looking for wars to stimulate economies and trying to avoid all out nuclear exchanges (limited exchanges acceptable so watch out).
We are NOT in obvious depression because we enjoy a currency that still (albeit barely) retains the status of the world's reserve. Imagine that .....the ability to print trillions of counterfeit FRNs and spend them on goods and commodities from ALL the other countries that have to recognize the dollar's status. AND YOU THINK WE ARE REALLY not that bad. ITS A PONZI!!!!! Not only is it a ponzi but it WILL END badly. Maybe you believe since its lasted this long it will go on MUCH longer than I or anyone else can possibly imagine. I hope you are right. No...I pray you are right. Here is why. When this collapses, you are going to be shocked about what is under the emperor's clothes. As we continue to employ more and more socialized solutions to our economic problems we are trapping ourselves in a potential calamitous outcome. Without a private sector to support the economy....there is NO FLOOR when the music stops. WHO pays for our massive private and government pensions. WHO pays for our health care. DON'T forget...the world has said YOU ARE NO LONGER THE RESERVE CURRENCY. YOU ABUSED YOUR PRIVILEGE. More and more trade swap agreements between nations are accelerating so don't expect the dollar status to go on for multiple years. These agreements portend a fundamental change nearing.
China is not accumulating thousands of tons of gold because it thinks it makes nice jewelry folks. WHO do you think is aiding the West's Central banks in suppressing the paper price of gold. China could end that suppression in a NANOSECOND!!!. THEY are part of the suppression. And don't you ever forget that all the non western Central banks are buying gold by the tons as fast as possible. Germany is trapped. They'll be the odd man out when they pull the plug. Their gold is in the bankers hand....probably already rehypothecated into kilograms and in far eastern vaults. gl getting it back.....EVER.
If you think that this gold suppression game can go on indefinitely then gl to you. My hope is we get one more nice flush as gold bounces off of the much ballyhooed breakdown level at 1500 or so. Carter Wirth was all over this gold short tonight on CNBS. Short gold as it bounces up to 1500.......So is Credite Swisse ...they issued a short Gold at that level. So they're lining up for the battle there. They're pushing this technical level in the MSM. Is it a set up for a short trap. Be careful jumping on obvious trades. I hope they do knock the hell out of gold one more time. I know the Chinese will not fight it, but can another takedown be tolerated by the bullion banks, the LBMA, and the COMEX?? This game is breaking down and I wonder if they can pull it off one more time. They are good though......aren't they. They make Michael Corleone look like a piker.