For the past fifteen years I’ve often mentioned “globalists” in my writings about mass immigration, Islamization, international finance, and other topics connected with the New World Order. In the early days of this blog, ideas about globalist machinations were still widely considered tinfoil-hat “conspiracy theories”. And they probably still are in most circles, but the number of people who subscribe to them has grown considerably, and continues to increase with each news cycle.
Back in 2007 the exact contours of the globalist enterprise were difficult to ascertain. One could read about the meetings in Davos and the gatherings of the Bilderbergs and the strange rituals at Bohemian Grove, but the exact structure of the one-world enterprise was murky.
A lot has happened since then: the financial crisis of 2008-2009, the ascendancy of Barack Hussein Obama, the various “color revolutions” and the Arab Spring, the grooming of Ukraine, the election of Donald Trump, the COVID-19 “pandemic”, and now the Western proxy war against Russia. As the globalists and transhumanists approach the realization of their dystopian dreams, their doings are becoming much clearer. Donald Trump may well have accelerated that process, forcing their hand before the time was ripe. In any case, they have now come out into the open, and are explaining their intentions quite explicitly for anyone who bothers to pay attention.
After watching the news carefully for the past six years, I have identified six major strategies employed by the architects of the of the coming world utopia:
| 1. | Mass immigration from the Third World. | |
| 2. | The Islamization of the West (obviously closely related to #1). | |
| 3. | The destruction of nation states and their traditional cultural institutions. | |
| 4. | The imposition of total social control using mass surveillance and artificial intelligence. | |
| 5. | The implementation of universal personal digital identification and a global digital currency. | |
| 6. | A deliberately engineered financial collapse to usher in #5. |
The primary focus of this blog for its first ten years was on #1 on #2. We occasionally visited other items in the list — especially the various battles in the Culture Wars (#3) — but we mostly concentrated on immigration and Islamization.
The course of events after the election and overthrow of Donald Trump helped shift that focus, however. Then the “pandemic” clarified the overall situation in all its demonic grandeur. The major players who used to lurk behind the scenes have now come out from behind the scrim into the open and revealed themselves and what they have in store for us.
This essay will concentrate on item #6, and specifically on the debasement of the currency, which is essential for engineering a general financial collapse. The West depends on the dollar (USD) as a reserve currency, so debasing the dollar is necessary in order to trigger the collapse.
Up until 1964, anyone who possessed a U.S. currency note could walk into a bank and exchange it for silver — one troy ounce of silver for every dollar denominated by the note. After 1964 the Treasury issued only “Federal Reserve Notes”, and gradually withdrew all the Silver Certificates from circulation. Silver coins (dimes, quarters, and half dollars) were replaced with the nickel-copper sandwiches we have today, known as “clad coinage”, or more sardonically, “Johnson slugs”.
After the “Nixon shock” took the United States off the gold standard in 1971, the last connection between paper money and a permanent store of value was severed. When I was a kid, the dollar was backed by silver, which the Treasury was obliged to give to you on demand in exchange for your paper dollar. Since then the dollar has been backed only by the “full faith and credit of the United States government” — a commodity that been losing value steadily ever since.
You can still get silver for your dollar bills, but it takes a lot more of them to acquire a Troy ounce of it, which costs somewhere between $21 and $22.
The thing is, in a normal precious metals market, silver should be worth more than that. A lot more. The price of every other commodity is increasing rapidly right now — oil, wheat, pork bellies, machine tools, you name it. But for the past few months precious metals have been going down.
It doesn’t make sense. Up until fifteen or twenty years ago, whenever the stock market dropped, the price of gold and silver went up. Investors who dumped stocks during a market crash would hedge their portfolios with precious metals, driving the price up. Market up, metals down. Market down, metals up. It was a rough but reliable rule.
I started paying close attention to the precious metals market just after the 2008 financial crash. For more than ten years there has been no obvious correlation between the price of gold and silver and the value of stocks. The two metrics rise and fall, but there’s no consistent correlation, neither direct nor inverse.
It just doesn’t make any sense.
Given the amount of fiat money that the Treasury and the Fed have conjured into existence in the past fifteen years, the price of silver should be through the roof. It’s hard to say what its true value should be, but $100-$200 an ounce doesn’t seem out of order. At least five to ten times as much as the current spot price, and possibly much more.
So what’s going on?
Over the last few years I’ve spoken to several precious metals dealers about the weird behavior of the metals market. All of them agree that there is far more “paper silver” — silver futures — floating around than there is physical silver to back it up. The general consensus seems to be hundreds of times as much. That is, for every hundred ounces of silver that various institutions have issued delivery certificates for, there is at most a single ounce of silver that could in fact be delivered to a customer.
From this I conclude that most of the market in silver consists of the exchange of these units of phantom “paper” silver. They are created and exchanged digitally, and purport to represent real silver that the customer could lay his hands on, if he chose to. But it isn’t there. The vast majority of silver that’s traded in the market is completely imaginary.
How is this possible?
Once upon a time, government regulation of banks and financial institutions required them to have X% of the face value of the issued paper as precious metals physically resident in their vaults. Actual gold and silver bullion that could be delivered to the customer. I don’t know exactly what number “X” stood for, but it was more than 1%. A lot more than 1%.
Which tells us that there is collusion between the regulators and the institutions they purportedly regulate. Or even worse: the institutions are engaging in these fraudulent transactions at the request of government regulatory entities.
My contacts among metals dealers named a specific corporate financial entity as the culprit that dumps oceans of paper silver onto the market. I prefer not to repeat the name — I don’t know if I could be sued for libeling a corporate entity, and I don’t want to find out. Let’s just say you’d recognize the name if you saw it.
The entity in question is engaging in this egregious behavior at the behest of governmental financial institutions, both national and international. The SEC, the Treasury, the Fed, the World Bank, the IMF, and lots of other acronyms I don’t even know are up to their eyebrows in this racket. They not only know what’s going on, they want it to happen.
Why?
As I understand it, the prices of gold and silver serve as a bellwether of economic disaster. When the price of metals shoots up, investors take alarm, and panic sets in, leading to a crash of the stock market, recession, and in the worst case, a run on the banks. Constraining the price of silver is crucial for maintaining market stability when all the money that floats around buying and selling stuff is basically imaginary.
I don’t know if any of this is true. I’m just a lowly amoeba in the economic food chain, and know nothing about high finance. This is just what I’ve been told.
One last question: Why don’t more savvy people take delivery of their gold and silver, to make sure they actually possess the tangible asset itself in case they ever need it?
As far as I can determine, the transfer of physical metals is inhibited by what’s known as the “premium”. That’s the amount added for each ounce the customer asks to have delivered. When the financial situation grows volatile, the premium goes up. I’ve seen it go as high as $10/ounce for silver, and even a little higher. That means that if you paid $22/ounce for your silver futures, you might have to pay as much as $32/ounce to take delivery. As long as the spot price isn’t increasing extremely rapidly, investors can’t make a profit that way. So they hang onto their “paper” silver, and keep on trading it.
Common sense tells us that this situation can’t go on forever. At some point people will want the precious metals that they think they own, but only a few of them — the first ones who jump in, pay the premium, and demand delivery — will be able to get any. The rest will be stuck with worthless pieces of paper.
At that point the time-graph of the price of silver will be nearly vertical, hyperinflation will kick off in earnest, and it will be a whole new world for everyone, investors, consumers, and oligarchs alike. Or maybe not the oligarchs — they may have planned in advance for that precise moment, and may be confident they can ride the tsunami safely.
Until then, the market in precious metals is rigged. And has been for a long time.
It seems to me that owning “paper” silver or gold has very little point to it.
By that point, you might as well own gold mining shares. There more upside, and the chances are higher that the gold in the ground is real!
ZeroHedge has flogged this to death since I first became interested in it back around 2008. They name names but I don’t know if its the same ones you are aware of. Just based upon the relative amount of silver in relation to gold naturally present in the earth’s crust the price should be far higher; approximately one sixteenth of the price of gold. And silver is an industrial metal with far more uses than gold; many of them from which the silver is used up and non-recoverable. It would be interesting to know how many of the globalist elites actually hold physical gold and silver and how much. The answer would likely tell you just how close we are to the financial Armageddon.
I find it interesting that Bill Gates is one of the largest owners of farmland, but the ownership would be completely useless if it ever came to a situation where the money was worthless and value was measured by real property, since if one doesn’t actually have possession and the ability to defend it against squatters or mercenaries then one doesn’t actually have possession of it. And if it comes to that then lead and brass will be far more valuable metals than even gold or silver.
I have one question:
What does Bill Gates do with his farmlands?
He cannot put it into his pockets and if he wants to grow food / put cattle on it, he needs people. Lots of people (considering how much territory he owns).
And you are right. If push comes to shove, then lead and brass will be more valuable.
It would seem that he wants the land in order prevent the farming of it. Food and healthcare are his attack vectors.
He farms it. You would be surprised how few people are required to maximize yield on cropland today. Automation and corporate efficiencies have done wonders for “worker productivity”. That’s why small towns (less than 10,000) across America are rapidly dying. There are no longer two to four families (anywhere between four and ten workers each) typical working each section (640 acres), even 50 years ago. Today two or three workers are more than enough for one to two sections, and more, much more, automation is on the way from Gates et.al. Along with that decrease of population actually on the land comes the decreased need for an agricultural support network near by, i.e. small town, with barbers, preachers, teachers, grocers, implement sales/repair shops, commercial silos and shippers, merchants of every stripe.
Robots require no social support and a just-in-time corporate supply chain doesn’t require local merchants).
In 1980 the town I live in boasted a population of 4,000. Now it is less that 2,000 and the majority of those are social security retirees who were born, raised, and raised their children here only to see them forced to a metro area for the possibility of employment. I expect to see the population here to reduce by 50% in the next decade and more land turned over to WEF corporations.
A major part of the Great Reset is to prove that the Global Nobility doesn’t require a population of 7 billion deplorables to maintain its standard of living. Indeed it doesn’t even need 500 million, despite what might be written in stone in Georgia. 50 million will be more than sufficient. A much more manageable number and plenty to extract what they really need.
He can restrict the use of farmland for traditional farming practices. Providing a subtle coercion to eat stuff like “Beyond Meat”
cattle, farming not allowed by agenda 21
Tell that to the cattle ranchers in Montana to Texas, they will bury you out on the prairie.
It is all leased out to tenant farmers.
Bill Gates counts on the scenario, that the dollar may collapse, but the US “Law and Order” (bent to his will by the strength of his capital) – will not collapse and that he will ride the beast out – I bet. His move into biometrics, vaccines, GMO’s, etc. may be an indication that he is willing to defend “his land” – against all the peasants, that is.
He overlooks that all the high tech surveillance and control measures require stable power grids, functional supply chains, functional internet infrastructure, and motivated personnel to make it all work. A suburban workforce without fuel to get to work, food for their bellies, and income thats keeping ahead of hyperinflation isn’t likely to be highly motivated or likely to show up.
I think almost all these “elites” think they are far more clever than they actually are; mistaking their successes at gaming the financial system to their favor as proof of their superior intellect and fitness to rule as neo-nobility in their dreams of neo-feudalism.
Moon, these so called elites are in for horror and shock as things don’t go according to their plan.
and so they will throw their idols of gold out into the street. (NKJV)
I found a great gold mine company based here in New Zealand several years ago that I did well out of. It did so well that the MSM took notice, which made Goldman Sachs Pacific take notice. SO they bought a large holding of shares. Up until then the share price would mirror the rise and fall in the Gold price, but always a little more. It was a solid reliable money maker. After they bought in every time the Gold price moved – either way – the share price dropped. GSP destroyed my Gold mine, I had to sell out and save what I could.
It’s just one more example of the egregious manipulation of the metals which is itself just one more example of how everything is manipulated, or a better word might be broken: the Law; politics; the MSM; banking; Science; Medicine; Big Tech companies. Everything is rotten. Although I’ve been saying for years that the West is a dead and rotting tree it still took me by surprise just how broken every single thing is.
There’s no way anyone can argue otherwise now though. It’s all in plain sight.
Excellent detective work, Baron…. you have really surpassed yourself lately. Just another reason so many value your insights so highly.
Precious metals represent a port in the financial storm, a place where those with the acumen and foresight can park their wealth until the latest boom-and-bust cycle has passed and some degree of normalcy returns to the markets.
Given that fact, it makes sense that the biggest players at the top of the financial pyramid, many of whom are quite active in the globalist movement, would move to wall-off the precious metals refuge. As they systematically collapse global supply chains and the economies behind them, they are also closing off escape routes that folks further down the hierarchy might have used to escape the trap they are now beginning to close.
Classic carrot-and-stick approach: Even as they build the new world order and its features, offering up its rewards to those who want them…. UBI, universal basic income, for example…. they are also walling off escape routes and preparing to punish those who refuse to play ball. Taking away other options so ordinary people and even nations, will have little choice but to submit to the new way of doing things. That seems to be their play, at any rate.
It is germane to note that the PRC (People’s Republic of China) and Russia – along with a number of other nations – have hoarded physical stocks of precious metals such as gold and silver, and now possess quite large amounts. One cannot help but wonder if those stocks of U.S. government gold are still inside Fort Knox, Kentucky… or if those have been looted or otherwise removed somewhere along the line.
Many people – including many Americans – do not know that their local bank is not required to keep their entire deposit-on-hand or those of other customers. That’s what fractional reserve banking is. That’s their business model. Only a small part or “fraction” of the bank’s assets (its deposits, etc.) are required to remain available at any given time. The rest of it can be put to work making them money.
Moreover, when you deposit money in a bank, you may not know that your money is no longer strictly speaking, “yours”… for if you read the fine print in those documents when you open an account, hidden inside the dense jargon and legalese is the fact that your deposit buys you “stock” in your bank. In other words, you are investing in them.
Which in turn means that if there is a panic of some sort or a run on banks, they are not obliged to return the full amount of your deposit at that time. The FDIC – Federal Deposit Insurance Corporation – was formed in the aftermath of the Great Depression for precisely this reason, to insure depositor’s assets. But again, they protect your wealth only up to a certain point, and if everyone needed them at the same time, the Feds could not cover everyone’s losses.
Baron, I suspect that the precious metals market functions in something like the same manner as fractional reserve banking. I’m not a specialist or authority in that subject, but given the particulars you have laid you, it seems like a logical inference.
I believe the term financial specialists give to playing the margin over and over again is leverage. It is common knowledge that our financial system, from the biggest central banks to the federal government on down to Main Street USA itself, is so badly over-leveraged that when the bubble pops, everyone is going to get hurt. It is just a question of when, and how badly. The U.S. and the West have blown the biggest asset bubble in history. When it pops, it is going to be positively seismic in scope.
Many people also don’t know that as soon as they put their money in the bank, it belongs to the bank not them anymore.
Surly belligerent berserker rabble before they kill us all.
Great read–Thank you!
Yes–all you say appears to be “spot on,” like the varying premium over-and-above the PM spot price.
There’s another issue as to why buyers of AG seem to reply upon ownership of “paper” silver rather than the actual “phyzz” or physical possession of it. That is the safe storage of the precious metal they perceive as being “owned” by them.
Who in their right mind would store vast quantities of physical silver in their home or garage? Already here in the American Midwest, we see our 5 gallon cans of gasoline brazenly stolen from inside our garages, barns, and outbuildings. Silver? It would be a crook’s dream to cart it away by any form of robbery. Call your homeowner’s insurance agent and get a yearly premium on a policy insuring against theft of physical silver in your home. Big eye-opener.
Enter the term “perceived security.”
So, buyers of AG who actually take possession of their PM usually store their metals in a secure facility specially adapted for this.
Only a few problems here: the “security” of a PM storage facility can be lubricious. For instance–your PM may be stored in unidentified batches–like any other fungible commodity. That is to say, YOUR bars of silver are chocked on a sturdy steel shelf with many other bars owned by others. This is termed “co-mingled.” Your “bag ‘o silver” is like any other stored there. More on this later.
Another problem is the “paper” security of a PM facility being “insured, bonded, guaranteed, or surety indemnified.” That is to say, if you get fixated on this concept of protection, you may be sorry. If you take this at face value, you are a fool. You must drill down deep and review ALL insurance, bond, or surety contracts involved. Each clause, tittle, and jot.
These agreements are a legal minefield. Often, they are not worth the paper they are printed upon. Sure–there may be protection afforded you today at 12 noon, but, due to the fact a premium has not been paid or missed (unknown to you as a third-party) there is ZERO security on paper.
Correspondingly, has the storage facility’s corporate officers–by way of a separate and duly authorized corporate minutes transaction accepted, in writing and sealed by the company’s secretary, your individual silver and documented each piece? If not, stay tuned.
Now–the ultimate: when a PM storage facility goes bankrupt or into receivership, due to many reasons: greed. incompetence, factoring or hypothecating and other shenanigans of silver–your ownership of your Ag is at great risk. If your stored silver is “co-mingled,” you are in for a heck of a ride, since the presiding bankruptcy judge sees this ‘pot of silver’ as the funds to pay off any and all other creditors–OTHER THAN YOU! Courts are always looking for that ‘deep pocket.’
This stems from the fact your precious metals cannot be specifically identified ounce-by-ounce, since it’s been “co-mingled.” Likewise, your “iron clad” guarantees on paper–insurance, bonding, surety–are similarly voided by a bankruptcy judge declaring: “No valid corporate insurance/bonding company officer signed a side agreement in writing with you on YOUR specific stash of metals.” And, POOF! YOUR metals become just another “asset of the bankruptcy estate.”
By the way, unless you have the resources, like $1,000/hr per person for a good bankruptcy court litigation team, (usually an entire law firm of specialists or “x” X $1,000/hr) kiss your metals goodbye. Add in the five star accommodation for T&E, forensic account fees, investigators, etc. for your legal challenge and you get the picture.
Bankruptcy court is quite the arena for all manner of devilment. Even for those “investors” of silver who are or were CPAs, lawyers, doctors, and engineers–all got skinned in the 2008-2009 debacle of a bankrupt storage facility. Don’t ask me how I learned all this.
Be smart–like Ann Barnhardt always says: “If you can’t hold it in your hand, feel it, caress it–it is NOT YOURS!”
Trick is: “Where to store the physical silver safely?” Think long and hard.
Pssst, I would take a trip to Switzerland and put your gold,silver, precious gems etc in smaller Swiss Banks which do not adhere to EU banking rules and are safe and secure and have been for over a thousand years. Everybody wonders what happened to the Knights Templar and all their riches after the Frogs and Frog Pope turned on them to get their wealth, whala, a year later Switzerland is formed with standing armies that could withstand anything Europe could throw at it and has kept the Pope on the straight and narrow with the KT(Swiss Guards) ever since. So good people, if you have physical precious metals and gems, head to Switzerland. Otherwise put a safe in the basement floor.
Check that those US laws imposed on Swiss banks a few years back don’t get in the way. Same for any American citizen anywhere in Europe who would like to open a bank account. Unless you want to let go of your US citizenship.
Once you step into Switzerland, those so called rules go out the window. The bigger banks are under the yoke of the EU and US, the smaller banks are not,frankly speaking, those smaller banks have more wealth on hand at any given moment than the larger banks. My grandfather opened bank accounts for all of us grandkids when we were born in Zurich where his family has banked for hundreds of years, it’s safe.
Vicious anti-Christianity is at the base of this flim-flam. The Main Line protestant sects collapsed decades ago, while the horrid pedophile scandal of the RCC slowly eroded the soul of that global institution. One must be pro-LQT or traditional Christian and opposed to “civil rights”. In Europe, only Hungary and Poland, who lived under true Marxist tyranny, are willing to fight to preserve their ancient Christian roots. The EU doggedly attacks them with massive fines, insisting tht only Marxist judges in their country can be “just” to the LQT ideology.
Did you know that the Vatican is is headquarters for the New World ODOR?
Actually it is not but thanks for playing dear.
The problem with metals or any other alternative “investment” is that they are still denominated in fiat money, and you have to sell them for fiat money in order for them to be useful.
In other words, you don’t purchase a tankful of gas or a couple bags of groceries with an ounce of troy silver.
And the only way to make money on metal is to hope that price inflation in the metals market beats overall consumer inflation — for instance, if you bought silver when it was $10 and gas was $2, if you sell the silver at $13 when gas is $5 you haven’t really come out ahead, you’ve just created a nice capital gain tax for the government, plus you have to go through the hassle of converting it back to fiat money.
The only real investments that are truly valuable are income-generating investments, i.e. productive enterprises that constantly sell a product for cash, or property rentals.
Well it is no secret that JP Morgan has massively manipulated the silver market. A year and a half ago they had to pay the federal government nearly a billion dollars over illegal manipulations of the silver market, as well as pay plaintiffs in the silver market tens of millions of dollars in a private lawsuit as noted here:
https://www.cnbc.com/2020/09/29/jp-morgan-settles-spoofing-lawsuit-alleging-fraud-in-metals-trades.html
However, people claim large banks in general manipulate the precious metals market. Here is an interesting graph that shows the price of silver vs. the stock market (DOW and S&P) and gold. If you set it to show the last 80 years you see there was a big spike that started in 1979 and that started in 2008, which were both big recessions. The price went back down when the economy recovered.
https://www.longtermtrends.net/stocks-vs-gold-comparison/
Scary stuff.
Check out the right-most column at https://www.usdebtclock.org/ to see paper vs. real ounces of silver and gold…
Thank you for this timely analysis. We are all standing on the brink of a precipice, wondering which parachute chord to pull.
What about food? Is there a chart somewhere that correlates the price of a loaf of bread (or the like) to gold or silver? Even farmland is being rendered useless due to weather via engineering these days. If you don’t know about this, I strongly suggest you peruse this priceless site: geoengineeringWatch.org
Great post Baron, excellent comments. Thanks one and all.
How the silver futures manipulation on COMEX works:
https://www.tfmetalsreport.com/blog/8252/econ-101-silver-market-manipulation
They use gold and silver as derivatives.
One of the commentators gave me the suspicion that he wanted people to come out and declare their safe storage methods of physically held silver, only a suspicion. But holding physical PMs’ is the way to go, because anything held by a govt, or govt regulated industry is going to stay there when it hits the fan. Since all the banks and all the govts (but I repeat myself) are corruption inc. and have been for a long time, this is a simple thing for them to hold your earnings, while you plead in THEIR courts for justice. Not just rigged boss, but the deck is stacked against common people like the black jack table in Vegas. And just like in Vegas, if the house doesn’t win the way they want, you may get dead. People for the most part don’t seem to realize that govt. is force, deadly force, especially when you cross them while they’re stealing your money. Good article, all the way.
That’s why I started to buy small silver and gold coins. It’s more expensive than the market value of the metal, but I reason they will always be exchangeable, and people won’t have to X-ray the thing to find out if it’s real, as the coin itself gives a sort of proof of what metal it is and how much of it. The way I see it, it’s good to be ready for the destruction of national currencies. These things happen, worldwide, repeatedly, and they never tell the people until it’s too late.
Also don’t forget that FDR outlawed the possession of specie, under threat of confiscation, in the 1930’s. Gold could only be held in a form of intrinsic value, coins or jewelry. That was rescinded when Nixon took us off the gold standard but rest assured it will return. Then again the Bolsheviks simply outlawed and confiscated all gold and silver. Since the modern Democrat has much more in common with Lenin than FDR (yes he was commie, but not commie enough) I expect much the same from them.
Déjà vu…Rome inundated and overthrown by the Huns and Barbarians! The enemy is definitely within our gates!
Without the understanding of the Trojan Horse tactics of our enemies, and the training and will to defeat them, we are doomed! It is far too late to depend upon the actions of the lying, treasonous, parasitic slugs we “elect” as our so-called representatives.
The buck stops at YOUR doorstep! Each citizen must be prepared to die for their freedom and liberty, because no one will be coming to save us! Make no mistake about it…we are now in the midst of a globalist world war designed to eradicate our republic and the people who would defend the Constitution. NOW is the time to train and organize for the coming storm!
You were spot on until the paragraph on premiums. Premiums would be included in the original contract. And therefore have no bearing on deliveries.
Your understanding of how many contracts are in existence for every once of silver is correct. There are dozens, maybe hundreds, of contracts written for the same ounce of PM. As long as the contracts don’t all take delivery, the Ponzi scheme stays hidden. However, sometimes the contract holders want more deliveries than stock. They then make cash settlements and pretend the Ponzi isn’t there. That has happened a handful of times including last week, iirc, for silver.
The big disconnect comes from hedging by big, big money.
Most investment happens with ‘leverage’ or borrowed money. That money is then invested. When the bank makes the loan it is based on the investment’s asset price. Price goes down, some of the loan has to get paid back. Just in case the investment doesn’t pan out, some of the loan is used to buy PM contracts, which are easily sold to cover margin calls. This is hedging. These investors don’t want physical PM’s, they want immediate cash flows for margin calls if they come, and it’s all just digits and paper contracts. The fact that these are paper hedges, allowed the CME and London Exchange to issue multiple contracts for physical product. Like a little kid that gets away with a cookie from the jar and goes back for more and more, they did the same on the metal exchanges.
If a stock or other investment goes bad, the bank can make a ‘margin call’ because the collateral of the investment may not cover. Then a portion of the loan needs to be paid back immediately. That’s when the hedge for contracts for PM’s comes in.
Market has a blood bath. Banks send out margin calls to investors. Investors sell their PM paper contracts. Really bad market = lots of margin calls = lots of sales of paper contracts. Price goes down, more sellers than buyers. Lots and lots of contract sellers and no buyers = actual suppressed prices, exponentially worse depending on how many contracts per oz.
And that my friends is what ruined the correlation between markets, inflation, currency issues, and PM’s. A happy accident for the Ponzi’s.
It ends when everyone realizes the Emperor has no clothes, and hedging becomes less important than keeping wealth out of the collapse.
That will come when currencies go back to gold standards (Russia, and soon China) and deliveries are more important than paper hedges.
And that time is right now.
Brace for impact.
Funny that no one knows that Russia has the largest physical gold deposits in the world and why they are not too worried about what is happening to them as a result of the Ukraine invasion. Oh and let us not mention the oil and gas they have, plus the acreage for the growth of food and cattle.
A look at a map of Russia might lead to the conclusion that it has huge acreage for food and cattle. As a matter of fact, the 2/3 of the russian territory is located north of latitudes that allow any kind of agriculture or ranching. Maybe one reason why they wanted to reincorporate Ukraine.
BTW, I spotted several cars with ukrainian license plates here in my german town. Those poor refugees apparently had the means for buying huge top notch SUV , Porsche, BMW, VW.
My state is on the same latitude as Russia, and the agriculture is booming here. Cattle, dairy farms, hay farms, various small vegetable farms, so Russia can grow and raise food. A bunch of American cowboys brought hundreds of cattle to grow their own cattle farms are booming there from what I am hearing. Seems the Russians have got a taste for beef.
Whoa! Great read. I live in NZ and looked at buying gold or even how you buy physical gold and from where. I have no clue about this process or even if the first page of “Buy Gold” search results is the right place to look.
This was a couple weeks ago. Looking now the price seems about the same at about $NZ 3,000.
Yeah it looks like time to start doing more than umming and ahhing and get things moving for what’s clearly coming soon.
So I gather from this and all the comments the message is Buy and pick it up.
Although this was more about silver. Is that the better option?
I’m swimming blind here, any advice would be appreciated.
Both silver and gold are widely considered to be undervalued, but silver much more so than gold. Therefore silver is a better bet, IF the price ever returns to something resembling real market value. That’s a big “if”.
Thanks, awesome. I suspected that from the article but also I found the margin was higher for silver.
NZ 33.75 but they were just over 40 to buy.
Whereas the margin on the 1oz golds were much smaller.
Happy I’ve finally gone ahead anyway thanks for the timely push 🙂
Thanks that’s what I gathered. The margins were far higher on the silver (NZ33 but cost over NZ40) but still pleased I finally did. Thanks for the timely push …
I’ve gone ahead. Some gold and some silver.
At least it’s not just paper or electronic digits that can turn off.
(Baron buys up large – Sends out a message, Panic buying ensues Price surges records smashed – Baron sells)
LOL!
Regal Castings in Auckland is a high volume dealer, with the lowest prices I’ve seen in NZ (where I lived for twelve years).
In the US, I don’t think getting a license to buy and sell gold is as easy as a real estate license. The benefits is the reduced cost of transactions cause you get a commission or fee. I think you need a broker license for gold.
Just another comment – with hyperinflation, in those states that reassess property values every year, how many years would it take for you to deplete your savings to pay your property taxes and then lose your property in a tax sale. Hmm didn’t they also want to tax you (and me) on unrealized gains. You would have nothing and be happy by a newly realized definition of the word happy. Definition of happy: without property or assets. I am sure someone thinks it would be funny to tax you (and me) on the inflation in that situation. You would have to eat your french fries really fast to reduce the unrealized gains while you ate them.
I think by happy they’re referring to the 10% or so that don’t get genocided to the dustbin of history. So yeah I can see a form of happy.
Lots of posh vacated homes to pick from to so mmm, a happy but dumb subprimate species population. Fits in quite well with the plan.
He wasn’t talking to us that’s for real.
What makes you think that these so called elites and one world order types will live to realize their dreams?
Monkey business brings monkey disease. Brings what next?