November 23, 2017 
 Thursday 
 
 

Forum
Topic:
Gold Enters Major Bull Market

       

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 By bluejay

11/01/2008  10:37PM

Last on gold is $723.70.

Extortion 101

Paulson's Swindle Revealed
By William Greider

October 29, 2008
The swindle of American taxpayers is proceeding more or less in broad daylight, as the unwitting voters are preoccupied with the national election. Treasury Secretary Hank Paulson agreed to invest $125 billion in the nine largest banks, including $10 billion for Goldman Sachs, his old firm. But, if you look more closely at Paulson's transaction, the taxpayers were taken for a ride--a very expensive ride. They paid $125 billion for bank stock that a private investor could purchase for $62.5 billion. That means half of the public's money was a straight-out gift to Wall Street, for which taxpayers got nothing in return.

William Greider: United Steelworkers Union prez Leo Gerard cracks open the sweetheart deal that bailed out nine banks--and likely lined the Treasury Secretary's own pockets--with billions of taxpayer dollars. Does anybody care?

These are dynamite facts that demand immediate action to halt the bailout deal and correct its giveaway terms. Stop payment on the Treasury checks before the bankers can cash them. Open an immediate Congressional investigation into how Paulson and his staff determined such a sweetheart deal for leading players in the financial sector and for their own former employer. Paulson's bailout staff is heavily populated with Goldman Sachs veterans and individuals from other Wall Street firms. Yet we do not know whether these financiers have fully divested their own Wall Street holdings. Were they perhaps enriching themselves as they engineered this generous distribution of public wealth to embattled private banks and their shareholders?

Leo W. Gerard, president of the United Steelworkers, raised these explosive questions in a stinging letter sent to Paulson this week. The union did what any private investor would do. Its finance experts vetted the terms of the bailout investment and calculated the real value of what Treasury bought with the public's money. In the case of Goldman Sachs, the analysis could conveniently rely on a comparable sale twenty days earlier. Billionaire Warren Buffett invested $5 billion in Goldman Sachs and bought the same types of securities--preferred stock and warrants to purchase common stock in the future. Only Buffett's preferred shares pay a 10 percent dividend, while the public gets only 5 percent. Dollar for dollar, Buffett "received at least seven and perhaps up to 14 times more warrants than Treasury did and his warrants have more favorable terms," Gerard pointed out.

"I am sure that someone at Treasury saw the terms of Buffett's investment," the union president wrote. "In fact, my suspicion is that you studied it pretty closely and knew exactly what you were doing. The 50-50 deal--50 percent invested and 50 percent as a gift--is quite consistent with the Republican version of spread-the-wealth-around philosophy."

The Steelworkers' close analysis was done by Ron W. Bloom, director of the union's corporate research and a Wall Street veteran himself who worked at Larzard Freres, the investment house. Bloom applied standard valuation techniques to establish the market price Buffett paid per share compared to Treasury's price. "The analysis is based on the assumption that Warren Buffett is an intelligent third party investor who paid no more for his investment than he had to," Bloom's report explained. "It also assumes that Gold Sachs' job is to protect its existing shareholders so that it extracted from Mr. Buffett the most that it could.... Further, it is assumed that Henry Paulson is likewise an intelligent man and that if he paid any more than Mr. Buffett--if he paid $1 for something for which Mr. Buffett would have paid 50 cents--that the difference is a gift from the taxpayers of the United States to the shareholders of Goldman Sachs."

The implications are staggering. Leo Gerard told Paulson: "If the result of our analysis is applied to the deals that you made at the other eight institutions--which on average most would view as being less well positioned than Goldman and therefore requiring an even greater rate of return--you paid a$125 billion for securities for which a disinterested party would have paid $62.5 billion. That means you gifted the other $62.5 billion to the shareholders of these nine institutions."

If the same rule of thumb is applied to Paulson's grand $700 billion bailout fund, Gerard said this will constitute a gift of $350 billion from the American taxpayers "to reward the institutions that have driven our nation and it now appears the whole world into its most serious economic crisis in 75 years."

Is anyone angry? Will anyone look into these very serious accusations? Congress is off campaigning. The financiers at Treasury probably assume any public outrage will be lost in the election returns. I hope they are mistaken.

About William Greider
National affairs correspondent William Greider has been a political journalist for more than thirty-five years. A former Rolling Stone and Washington Post editor, he is the author of the national bestsellers One World, Ready or Not, Secrets of the Temple, Who Will Tell The People, The
 By bluejay

10/30/2008  11:42PM

Last on gold is $733.50.

For a behind the scenes analysis on what's up and where gold is going, go to http://www.jsmineset.com and read Mr. Jim Sinclair's commentary, "The Beginning Of A Great Economic Drama."

Also, in another commentary Mr. Sinclair states that he is buying gold future contracts and will be taking deliveries of the 100 ounce contracts on a monthly trading cycle basis.
 By bluejay

10/30/2008  11:31AM

Last on gold is $734.40.

In another daily vain attempt at approaching the $775 area gold has failed to hold and has slid back with renewed selling pressure. The move above recent resistance at $748 or abouts is now moot.

An anticipated major low on gold will apparently take its time and on its own terms to establish. At the moment, $680 is its recent down spike low.

Yesterday the Fed reduced its benchmark interest rate lower by one half point from 1.5% to 1.0% to lessen major threats to economic growth and did not rule out more reductions to follow.

Lower interest rates eat up bank capital as it stimulates the redemption of higher interest debt. This occurs when the redemption amount is higher resulting from lower interest rates. When rates go down bonds go up, as an example, thus retiring the original debt becomes more expensive and eats up capital in the process. The bailout package is intended to replenish lost bank capital.

The banker's and the Treasury's greatest fear is that the banks will go belly-up for lack of capital. The derivatives mess only adds to their problems. Reacting to banking troubles, people have been pulling their funds out of these institutions and into U.S. Treasuries and into gold and silver. The threat has been so great that the FDIC has recently announced doubling the insurance levels for funds on deposit at banks.

On an important note, people must know exactly what insurance means. In the worst case scenario, what are the mechanics of returning your insured money?? One possiblity that some folks might not like is how the money is returned to them. Will it be in restricted Treasury instruments? Will it be in another short term irredeemable form of some sorts?

This is the main reason that the western central bankers became part of a major price suppression scheme in July to effect gold and silver prices. It seems that the Asian markets have been buying gold when they are open for business and as trading switches to London and in the U.S. at the infamous COMEX Exchange prices fall on a somewhat, regular basis.

Paul Van Eeden of Canada has generally stated that the approximate area of $650 is a rock-bottom low price for gold based on current monetary expansion. Some months ago Paul correctly forecast lower base metal prices based on his projection of reduced economic activity.

These unanticipated lower prices in gold and silver should continue to be considered a rare purchase opportunity and certainly, not a time to sell.
 By bluejay

10/29/2008  6:10PM

Last on gold is $768.10.

Check out this 80 year view on the sell-offs in the Barron's Gold Stock Index.

http://www.kitco.com/ind/sobolev/oct272008.html
 By bluejay

10/29/2008  5:58PM

Last on gold is $766.30

The following in an eye-opening article concerning China's future and our worsening status in the eyes of the world.

Quotable
I'm fed up to the ears with old men dreaming up wars for young men to die in.
– George McGovern

Source: antiwar.com
October 28, 2008
A Win-Win Situation for China


by Sascha Matuszak
China currently stands alone in its ability to weather virtually any storm the banking crisis in the U.S. whips up. With almost $2 trillion in foreign currency reserves, China can afford to be unconcerned about an economic decline in the West that spreads throughout the world, hurting dependent and emerging economies from Pakistan to Panama.

China is not completely insulated from the economic crisis – a slowdown in orders from abroad and a credit crunch at home will hurt the Chinese economy like it hasn't been hurt before – but the difference is preparation. China is prepared, socially and economically, for a slowdown. The U.S. is not.

The calls are beginning for China to step forward as a responsible stakeholder and shore up the currencies and liquidity of the Asian economies and help ease the pressure on European banks as well. China, in turn, assures the world that it is "seriously" considering its options and the proposals of near-desperate bankers hoping that China's 20-year economic rise will help defuse the West's 20-year economic decline.

China is now in a position of power that it may have been enjoying for years, but it is now becoming even more apparent. The talk of China taking over the world has always been a "what if" scenario accompanied by calls for social and political reform and sidelong glances at the U.S., still considered by many to be the preeminent power in the world. The next few years will see more and more nations gathering under the umbrella of Chinese solvency and leaving the Coalition of the Willing(ly Misled) behind.

For now, China is taking care of its own through land reform that should give peasants in China the freedom to "lease their land use rights to other individuals or companies, such as big farm contractors, or to exchange them" and send hordes of country folk flocking toward the cities with their loot looking for fortune. This is the latest in a development, started after Deng Xiao Ping took over in 1979, that will bring the peasants of China into the social fold and eventually urbanize the nation.

China hopes to protect its domestic and international interests through increasing the sophistication of its military. In the final frontier, the U.S. is "apoplectic" over the success of a Chinese space program that has now "changed the game" with the recent Shenzhou manned space mission and the addition of a surveillance satellite that passed within 30 mi. of the International Space Station. According to the Richard Fisher in the Asia Times:

"By the middle of the next decade the PLA [People's Liberation Army] will have a robust surveillance satellite network that will allow a many-times daily target tasking on a global level. It will also have the ability to perform 'information operations' by being able to give a range of clients updates on global U.S. military activities multiple times a day."

China might be getting those rushes of adrenaline one gets when victory is nigh and your opponent lies struggling in your dust trail. America's irresponsible, immoral leadership in the White House, on Wall Street, and by extension throughout the world has finally come home to roost with this economic crisis. Now, with the giant of the 20th century down and in trouble, all of the nations in the world that have suffered under America's benevolent hegemony are looking for somewhere to hide.

This is exactly what the Chinese leadership has hoped and prayed for and most likely expected: the return of China to the center of the world.

Supposed allies of the U.S. are looking to China for help in these days of crisis, with Thailand's deputy prime minister, Olarn Chaipravat, who is attending the Asia-Europe Meeting, stating in the Sydney Morning Herald:

''The message of this initiative is for China to consider whether or not China would open up its banking system and allow the strongest currency in the world, which is the Chinese yuan, relative to anybody, to be the rightful and anointed convertible currency of the world."

Pakistan's President Ali Asif Zardari just finished a visit to China in which he declared that he would be ready to "visit every three months" and that Pakistan's economic and security crises are best solved through cooperation with China, not with the U.S.

The whole Asia-Europe Meeting is a sign of times to come. Nobody trusts U.S. leadership anymore, and despite China's list of thuggish buddies (Burma, Sudan, Iran, North Korea, etc.), protest-strangling Great Firewall, and tendency to sell counterfeit and/or tainted goods, world leaders are choosing China. What an incredible statement about the influence and reputation of the U.S.

The bailouts engineered by the central banks of Europe and the U.S. represent the desperation of thieves caught in the act together, not sympathy and goodwill between two staunch allies. The collapse of Wall Street is the last act in the tragedy of America's fall from leadership in the world.

So What?

What we will see is the decisive triumph of the merchants in the low-level battle over what to do with China. Many of the campaigns to halt human rights abuses in China will migrate to the fringe of U.S. policy, if they haven't already, and the tone will ease.

The U.S. will not be able to confront nations with the arrogance of a world leader and the righteous indignation of a moral compass. For many of us, this is a development that has been a long time coming, but for most of America, it will be something very new.

What Americans lack more than anything is a concept of history. It is absolutely natural and normal and desirable for a nation to go through hardship and struggle and eventual transformation. The era of the American Imperium, dependent on historical ignorance and determined action, is over.

What is needed now is a domestic revival and a more nuanced and intelligent approach to international relations. This means talking with people before we bomb them. This means an emphasis on cooperation, not obedience.

China's sound economy and pragmatic, if despotic, leadership make whatever happens in the coming American election into an opportunity to gain political capital or financial assets. It's a win-win either way.
 By bluejay

10/29/2008  11:59AM

Gold $754.00 Up $10.20
Silver $9.83 Up $ 0.64
Gold/XAU Ratio 9.53
Gold/Silver 76.70

Gold is higher today as it has pushed above some recent daily resistance in the $745 area. Gold reached higher into the vicinity of the previous important low spike reached some weeks back at $675 where China was reported to have taken gold from two failing hedge funds. Reaching this level awoke the bear element in the market as the attack dogs were unleashed chasing the buyers and driving the price back down to about $752. Hopefully, the $745 level holds which is now short term support.

We read in the paper that every asset has been effected by margin calls, failing hedge funds and fearful selling but never is it mentioned in the general news that there are entities out there that have agendas for twisting people's minds concerning the banking industry by trashing gold and silver. Sure, it's reported that the public is leary of banks these days but no reports concerning the US Treasury's efforts to depress the precious metals prices.

It's been the belief here that all along that a great transfer of wealth is taking place from the public into the hands of connected people or entities and foreign countries, especially China. One just has to take note of all the shenanigans that have taken place to force all the gold and silver related stocks down to the bottom of the pit.

Unbridled savage attacks of the exploration sector in Canada have left that group devastated with percentage declines of 80% and more common. The naked short sellers have been ravaging shareholder's assets as if they were prey locked in a cage. What has been permitted in Canada says very little of the country's regulators. The regulator's up there run a "so-called" honor system with the naked shorts, they just have to state that they have intentions to deliver sold stock and THAT IS IT. One would have a difficult time proving that the regulators weren't crooks themselves.

In this country the SEC has allowed the gold stocks to be pummeled unmercifully by naked short selling, effecting lower prices without delivering any shares. Not many in Washington care to admit this. The gold and the gold stock shelling is working on the minds of the public and is putting money into the pockets of thiefs.

The trading norm of the relationship of the XAU Gold & Silver Index to gold was, with a few minor exceptions, 3 to about 6. Each time the Index reached the neighborhood of 6 the gold stocks were a buy and when they returned to the 3 to 1 ratio with gold it was time to sell them for followers of this intermediate to long term trading approach.

Last week the Index hit 11.50. Where did this come from? It's all the naked shorts looking for more and more of the investor's blood. Hello, Mr. Cox are you there? Cox is the head of the SEC and is the worst do-nothing Chairman of all-time.

Jim Rogers has said other guys in government along with their handlers, the banks, have messed up the system far more than the average person comprehends. Like Jim Sinclair says, no one wants to talk of OTC derivatives. They are all sucking the system dry in their final attempt to make off with all the silverware before their day comes to an end with disgrace and a lot big money stuffed into their pockets.

Unfortunately as has already been established from the Blanchard-Barrick lawsuit in New orleans the governement and their agents are immune from prosecution, how convenient. So that just leaves the banks and certain connected people to answer.

Jim Sinclair has said that the massive OTC derivatices disaster can't be remedied. All the Treasury can do is hide the problem and hope that it goes away. Fat chance! The Fed buys the junk contracts in exchange for more taxpayer debt and the banks get a free pass with massive infusions so they can start over again. This is the biggest crime of the century, all at our expense. Even the banks have influenced their buddies in government to lower generally accepts accounting standards to put a value on all the worthless derivatives that they still hold.

In Japan the banks did the samething 18 years ago with all their junk real estate loans. Banks that lie about their real worth are known as "zombie banks."

In this country all the banks are basically bankrupt. Why do you think the government is giving them all this money, our money? There capital has evaporated with 28 years of declining interest rates as Mr. Antal Fekete has so brilliantly described in past articles.

Golden Sachs and J.P. Morgan recently reclassified themselves as banks and now the both of them are in line with the other banks milking us of our long term financial security as a country.

When this mess finally ends, if ever, all these criminals will be holding gold, silver and all the related companies and they will have secured them at fire-sale prices that they, themselves, created. That is why it is important to just tune out from all these temporary, ridiculously low prices.

What do you do when a burglar approaches your home at night? You lock all the doors and windows, hunker down and be prepared, you most certainly don't run away crying in hysterics.

On another note, the Chinese have been recently more vocal with their thoughts on our continuing meltdown. The "People's Daily" the official newspaper of China's ruling communist party recently stated the following, "Growing chorus of Chinese disdain for Washington's economic policies and financial dominance in the wake of the credit crisis." "The U.S. has plundered the world's wealth."

China is quite worried and with the recent strength of the dollar inspired by financial unrest in Europe who could blame them for quietly reducing their masssive exposure to the dollar. This is one significant reason that the recent strong rally of the dollar is doomed and gold's rebound is near.

One reason that Fannie Mae and Freddie Mac were temporarily saved is that China holds one fifth of their total agency debt. This amounts to $447.50 billion as of June of 2008. China also for the same period holds $502 billion in US treasuries.

One thing the Treasury doesn't want and that is a panic out of the dollar of which China would not really want to be part of. China is more of a methodical buyer and seller. It would be quite naive if anyone would assume that China is not buying gold, silver and many of the bigger precious metals companies along with base metals and their producing companies and relieving themselves of their excessive dollar holdings.

Go Gold!
 By bluejay

10/27/2008  10:23AM

Last on gold is $741.30.

A link is provided to the December 08 commodity chart where you can get an idea of trading volume in the most popular month. This does not include the electronic market.

It is difficult to pinpoint volume. Dan Norcini does a commitment of traders volume chart about every week at jsmineset.com with comments.

http://www.marketwatch.com/tools/quotes/intchart.asp?intflavor=advanced&symb=GC08Z&sid=1633395&freq=1&time=8&dist=TQP_chart_image
 By Hans Kummerow

10/27/2008  6:06AM

Over here in Europe Gold is trading at US $ 720,00 per ounce right now.
The traders say that Equity Funds are unloading large amounts of gold to cough up cash for withdrawals and to meet stiff margin calls.
As far as I can see, Scoop, no purchases are possible at US$ 600,00. Not yet - at least.
 By SCOOP

10/24/2008  10:36AM

Please, please, please, Bluejay or someone with the access to and the brains to figure this out. What amounts of gold in ounces(volume) are trading to set these lows. Shocking to see $600's. Who were the lucky stiffs who now own it and how much was available at that price?? Can we get this from future contract sells and buys? Scoop's not too flush right now but Gold in the $600's, who could resist if we knew how to get gold at that price?
 By bluejay

10/24/2008  9:30AM

Last on gold is 745.60. We may have hit bottom today.
 By bluejay

10/24/2008  9:24AM

UPDATE

Gold is currently higher at $736.50 substantially above an early morning low of $680.30.
 By bluejay

10/22/2008  6:23PM

Last on gold is $721.50.

It wouldn't surprise me with the storm of storms hitting the precious metals and especially their stocks that the manipulators eventually someday will all be behind bars.

The following attachment is must reading for those that continue to hold part or all of their wealth in Treasury bonds.

http://market-ticker.org/archives/622-Fiscal-Cat-5-Hurricane-Warning.html
 By bluejay

10/22/2008  10:18AM

Gold $735.00 off $34.90
Silver $9.38 off $ 0.65
Gold/XAU Ratio 9.58(This figure indicates that gold stocks have never been cheaper compared to the last in gold)
Gold/Silver Ratio 78.36

The suspected secret meeting to assassinate the precious metals and their stocks between the Plunge Protection Team and bankers, plus possibly some select hedge funds, that took place in late June continues unchecked.

As Hans has pointed out physical gold is more fun. Well, this paper party that is permitted to persist by the SEC with the shares along with the CFTC's and their controlled paper exchanges is becoming disheartening to all believers in honest money.

In July the banks went wild shorting gold and silver in an unaccustomary manner. By requesting their help to join in on the raid the Treasury and the Fed thought it a good idea to build up their dwindling reserves a little at our expense.

The psyche of short sellers significantly hinges on massive destruction and pain. So, has the plan not accomplished their goal?

A government's role in manipulating gold and silver has always been the same: destroy competition when our fiat currency system starts to falter. Stalin did it to silver years ago when the people hung on to their coins as that currency's value was collapsing. Stalin even executed his collecting agents when they didn't acquire it fast enough from the poor people and even some clerks who were tallying up how much had been collected. Following, the people fearing for their lives relunctantly turned it over.

Are we not almost in the same position today as fear of declining prices scare us into either selling or contemplating it? In 1931 when the gold was called in by FDR there were also threats extended to the people that scared them to part with it. If you didn't turn it in you would be fined and possibly sent to jail. Fear is the name of their game. Today in modern times, it's instilled fear through manipulation of rapidly falling prices to hold a faltering malignant currency and keep our funds in a suspect banking system to save their asses.

So, when any fiat currency starts to falter, as is the case now from increasing astronomical debt, the SCARE TACTICS have surfaced boldly once again. If you and I tried this scheme why wouldn't we expect to be incarcerated? Manipulating the precious metals and stocks is no less than a crime against the public.

History will always be our guide: Who did it benefit and who did it hurt to part with the gold and silver during financial upsetting and confusing times? The answer is clear.

In the months and years ahead severe price inflation as the result of mounting monetary increases will result. The true time and tested wealth protector will mostly be in holding gold and the companies that produce it. There will no other way around this. Eventually, gold will be the victor not some debt ridden paper factory.

It's important to accept that the prices being reported on gold, especially, is just a vain attempt by scared public officials to remove the threat by the people against their imploding mismanaged US dollar. The sad part is that certain closely associated private entities are greatly benefiting by the use of inside information being supplied ahead of time by criminals that work inside our government and their friends.

The friends are the banks and the two remaining big brokerage firms that are now calling themselves banks plus some suspected loyal hedge funds. Hedge funds? Believe it or not, some hedge funds have actually attended meetings of the Plunge Protection Team consisting of the Treasury, the Fed, the SEC and the CFTC. And who controls the PPT? It's our commanding chief.

The good news for holders of gold and their gold stocks is that this man's family is long gold through their interest in the powerful Carlyle Group. The Carlyle Group holds the majority of the remaining long sides of many gold hedges that producers continue to hold.

If history is any guide, time will not wait much longer for gold prices to turn abruptly higher and the lofty artifically pegged dollar much lower.
 By Hans Kummerow

10/21/2008  11:13PM

Whilst trillions of US-Dollars and Euros are handed over to the financial markets by the Feds of this world we should remember where all this money comes from:

I is not coming from tax-increases because everybody is talking about tax-cuts.

I is not coming from saved gov't expenditures because additional gov't spending is encouraged anywhere on this globe during the crisis.

Money is created as book-money garanteed by the people who have the authority to print the money on real paper if the markets won't believe in their books.

And as far as the physical markets and the paper markets for gold are concerned - let's stay physical. It is more fun anyway.
 By Michael Miller

10/20/2008  3:16PM

Massive selling or selling pressure usually drive prices down faster than massive buying or buying pressure. True or false?

Short selling, naked selling or selling what you do not have but either have a source for delivery or a source for borrowing influences driving a price down. True or false?

Owners or keepers of a commodity usually are more reluctant to sell the commodity when they believe the current price will increase in the days ahead. True or false?

In order to gain insight about spot price fluctuations of gold, one needs data about the volumes of outstanding: short sales, pledged supply, daily or monthly new mine production, sources of supply (the more the better), coin sales, bullion sales, central bank exchanges, and……more.

Facts are important for gaining a worthwhile opinion. Next comes a useable formula. Then a good market statistician well versed in computer programming could set the gold speculation world aglow. Are you out there? If so please write this FORUM. I would be one of many interested gold players.
 By bluejay

10/18/2008  11:29PM

Last on gold is $782.90.

Posted On: Sunday, October 19, 2008, 12:10:00 AM EST

The Bullion Market Versus The Paper Gold Market - An Explanation

Author: Jim Sinclair


Dear Friends,

It is axiomatic that the most leveraged gold market most often (95 percent of the time) sets the price of any cash market. First derivatives (listed futures) commands price.

This remains true as long as the COMEX warehouse of gold is NOT meaningfully depleted by long gold contracts by taking delivery from the exchange warehouse.

As long as an exchange maintains a warehouse that historically overwhelms historical demand for delivery the first derivative, The COMEX listed gold future, will be the primary cause of price.

Taking delivery from the COMEX warehouse is not an easy process as the system is designed not to violate your contract but to be a world-class pain in the ass.

The COMEX requires re-assays, assuming you wish to re-deliver. This then places another raving pain in the ass in your way.

The COMEX market is effectively an international 24-hour market as there is no location where you cannot buy or sell a COMEX clone.

Cash bullion gold as opposed to the semi cash markets that non-USA banks trade is the only totally private means of buying and selling gold.

As currency problems increase, first the knowledgeable public such as you clean out the coin market.

This is the first time that the international coin markets have been cleaned out everywhere. This did not happen globally in the 70s.

Large gold bars are still available in major markets but the backup inventory is getting low.

As long as the COMEX warehouse remains adequate and large bars still are available, the paper market, the leveraged COMEX market, will rule the price.

Only with a decline in COMEX warehouse inventories and a run down in large bar supplies of the cash market will the cash bullion market command the price of the COMEX futures market.

It was not the buying by the Hunts that caused silver to move above $30 into the $50 area, but rather the universal belief that they would take delivery, which would deplete or exceeded the COMEX warehouse supply.

The War between paper gold and bullion gold is a war to determine which will take command of the price of gold, nothing more, nothing less.

There will be no two markets trading at different prices.

All this battle is about is IF the bullion gold market is going to take the lead in making the singular price away from the traditional axiom that the most leveraged market makes the price. I believe the bullion, in these most unique conditions, will command the one gold price making it hard to impossible to manipulate the gold price via the paper gold market, as is the practice every day.
 By bluejay

10/18/2008  9:21AM

Last on gold is $782.90

The following link is to an article that clearly details what is occurring to our financial system and the corruption behind it.

Owning physical gold in this environment makes perfect sense.

It's an enigma how folks can sleep at night with their savings entrusted to any financial institution.

http://www.321gold.com/editorials/willie/willie101708.html
 By bluejay

10/17/2008  10:02AM

Gold $778.90 off $25.40
Silver $ $9.26 off $0.49
Gold/XAU Ratio 8.94
Gold/Silver 84.11

Gold Stocks Make Historical Bottom

In what everyone thought farfetched when gold breached the magical level of $1,000 the precious metals and the precious metal shares following were abosultely thrashed. They were taken behind the barn, severely assaulted by the powers to be and whooped by the media in an unprecedented attack that left us all shell shocked and dizzy.

This vicious storm was inflicted on us all by the western bankers who still believe they control the financial world whose fiat controlled systems were coming apart at the seams and continue to unravel. Their motto through the years has always been the same, eliminate the competition, destroy gold.

We are all aware of the trickery they have employed to dislodge us from the only real money, gold.

Around the world, believe it or not, there is a counter-balance of smart people that consistently make money on the antics that bankers use against precious metals and their shares to mold public opinion.

Aside from the gold follower's predictions and forecasts concerning this group, many have errored in understanding the bankers capabilities, including myself, over the years in commenting on the short and intermediate directions of the metal. Basically, gold continues firmly in its bull market but the bankers have used unbelievable resources in an attempt to disturb our confidence.

Today, is just a continuation of those underhanded efforts of propaganda by selling paper gold contracts at the CRIMEX(COMEX) market in New York. One has to wonder where all this gold is coming from. During president Reagan's administration he once considered going on a gold standard. Unfortunately, when an audit was completed of our gold holdings at Fort Knox none was found. It seems that the privately run Fed was holding all of our gold as collaternal for all of the country's debt. What a great invention, create a currency out of "thin air" and end up with gold. The Fed was greated in 1913 when only a few Senators were present for the confirming vote.

In the constitution it clearly states that the our currency will be managed by the US Treasury. The Fed is an illegal entity that is privately run for the bankers that comprise that institution. Ownership of it is a closely guarded secret with its chairman appointed only by the president.

The Fed has done such a miserable job at managing our currency that the Treasury recently had to bail it out because it went bankrupt(not reported in the press for obvious reasons). Has the Fed been selling the country's gold? If not, where is it??? A major point is the Fed will do anything to preserve its illegal power and that means selling the so-called collateral held by them against US debt.

Gold's contrived weakness is a total sham to protect the Fed against this dangerous truth and they are not in it alone. One of its co-members of the Plunge Protection Team is the SEC. The SEC has blatantly allowed the precious metal shares to be savagely beaten down by the connected bullion banker's stock trading divisions. These cohorts have been allowed by the SEC to sell precious metal shares they don't own and can't even borrow. For them, this is a currency that painly does not exist but the bullion banks are allowed by the SEC to practice this fraud upon share holders and destroy their wealth.

In the history books of the future this price manipulation scheme will be discussed as one of the greatest financial crimes the world has ever known.

Aside from all the dirty players and their tactics, the current values of gold, the rest of the precious metals and their shares is not going unnoticed by the big players that know value.

A person would have to be really "out to lunch" not to conceive the idea that with China holding its massive reserves of dollars that the Chinese are now and have been recently exchanging them for the precious metals and shares at these fire sale prices.

Some years ago a commentary discussed on these pages stated that gold had breached its long term 5000 day moving average line and had entered a new major bull market at around $350. These long term averages are quite potent and hold siginificant forecasting abilities.

In the last few days the Philadelphia Gold & Silver Index(XAU) has crashed into its 5000 day average, sold through it at 90.00 or so and has hit a low of 82.01 today with a last of 87.03. Even though the mark was penetrated its significance still holds until such time that it starts presenting resistance problems.

These long term averages hardly ever get eliminated by severe drops from higher levels over short periods of time. On its last major advance the XAU Index hit nearly 210. Current trading levels represent at drop of 61%. All probabilities infer that a MAJOR low has been established in the Index today.

If anyone has any money available or can convert some assets into cash it is suggested that core assets of gold stocks be added to with the following three stocks:

Agnico Eagle at $35.92

GoldCorp at $20.04

Royal Gold ar $30.44

The Original Sixteen To One Mine shares continue to be one of the best perpetual call options available in today's market waiting patiently for expected firmer gold prices in 2011 which will be considerably higher that these current Alice In Wonderland prices for precious metals and their shares.
 By Mark R

10/17/2008  4:51AM

Gold up/oil down? Seems a fair amount of moneyed folks must think the dollar's been inflated and the U.S. economy (oil demand) is going to go down far enough to increase oil supply. W & W (the new firm of Washington and Wall St) are stealing from our great great grandkids.
 By gfxgold

10/16/2008  4:34PM

It's truly amazing how, in just a few hours, when things look promising, it can all just fall apart.
They refer to people as cattle and sheep. This really applies when it comes to the markets. Something spooks one of them and all of a sudden you have a full blown stampede. Today, it looks like the "herd" decided to play musical chairs with some commodities and drove the price down on just about everything that is used in industry. Just because somebody is predicting that the U.S. economy is going to take a big dive and industry will not be needing such a large supply of those commodities. So, it's sell now before it's to late. The upside to this is, If you wish you had bought some of those commodities when the price was lower, like gold and silver, now might be the time. The platinum group metals have taken a big hit and may be worth a second look. The one good thing about palladium being at a lower price is that maybe now, the meth heads will slow down on catalytic converter thefts.

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