Filed under: bloomberg, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, equity market, global economy, gold, Great Depression, Greenback, High Frequency Trading, hyperinflation, Inflation, liquidity, liquidity rebates, manipulated economy, manipulated prices, market manipulation, price fixing, Stock Market, US Economy, Wall Street | Tags: Joe Saluzzi
Trader: Market is manipulated and volumes ‘fictitious’
Filed under: comex, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, manipulated economy, manipulated prices, market manipulation, price fixing, silver, silver shortage, Stock Market, US Economy, Wall Street | Tags: john embry, kitco, paper investment
Physical Gold Remains Over +1,000 an Ounce
Gold buffalo 1oz coins are trading between 300 to 400 over spot price on ebay.
Market Oracle
October 24, 2008
It appears that there is a common refrain going around the investment community. It goes something like this:
“Gold should be doing better, and, since it isn’t, I am not going to buy it”
Investors who believe this are making the mistake of thinking COMEX gold is the same as real physical gold. It is not.
COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract. Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can’t produce the gold or cash), COMEX gold fails miserably as a safe haven . This is why COMEX gold prices are falling, while physical gold is disappearing from the market place
Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market means that a large number of December gold contract holders are likely to request delivery. A volume, whether it causes defaults or not, is likely to change the marketplace perception of gold and cause a rush of into a physical gold plagued by shortages. Gold will skyrocket over 2000 in a matter of days.
I am not the only person who believes COMEX gold futures are on the verge of collapse. I urge you to watch this video (skip to 11 minute mark) and read the extract below to see what others are saying about paper gold:

http://noworldsystem.com/2008/10/26..-is-down-when-it-should-be-up/
Demand For Gold Soars
http://www.telegraph.co.uk/financ..-gold-soars-has-price-tumbles.html
Fitch says gold price will hold up reasonably well over 12-18 months
http://www.mineweb.net/mineweb/vie..=Detail
Filed under: 2008 Election, Alex Jones, Amero, asia, Australia, BP, Britain, Canada, China, Control Grid, Credit Crisis, DEBT, Dollar, dubai, Economic Collapse, economic depression, Economy, Europe, european union, exxon mobil, Federal Reserve, gas prices, global economy, global elite, global government, Globalism, Great Depression, Greenback, hyperinflation, Inflation, internationalist, internationalists, Iran, Japan, John McCain, kuwait, Lindsey Williams, london, manipulated economy, manipulated oil prices, manipulated prices, market manipulation, Mexico, middle east, muslims, neocons, New World Order, North American Union, Oil, OPEC, Petrol, price fixing, Saudi Arabia, single currency, Stock Market, United Kingdom, US Economy, Wall Street | Tags: global currency, global currency system, globalization, Mohammad Ali Khatibi, oil bourse, oil cut, one world currency, shell, Stanley Monteith, t-bills, the energy non crisis
Lindsey Williams Predicted Oil Will Be $50 a Barrel
Insider of the Global Elite was told: “Price of crude oil is going down to $50 a barrel. . . gas will be $2 to $2.50 a gallon” (1st video @ 7:11). “The entire Arab world will be bankrupt” (2nd video @ 7:34) “. . . you are going to shout and dance on the street at $2 a gallon and mark my words within 3-4 weeks time you are going to shutter in your boots because the dollar is going to go to zero, they’ll have an excuse to bring in the North American Union, they will be able to issue a new currency . . .” (3rd video)
Lindsey Williams on Alex Jones Show, October 26, 2008
Oil falls to $63, OPEC plans on cutting supply of oil
AP
October 26, 2008
Oil prices fell to 17-month lows at $63 a barrel Monday in Asia as investors weighed Friday’s OPEC output cut against growing evidence of a severe global economic slowdown that would undermine crude demand.
Light, sweet crude for December delivery fell 32 cents to $63.83 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.
Investors brushed off a 1.5 million barrel-a-day cut announced by the Organization of Petroleum Exporting Countries on Friday, focusing instead on falling crude demand as economies across the globe reel from the impact of a credit crisis.
On Friday, oil fell $3.69 to settle at $64.15. Prices have plunged 57 percent from a record $147.27 on July 11.
“The mood is fairly negative reflecting worry about the international economic outlook,” said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. “If there is further weak economic data in the U.S. or Europe, prices could come under more downward pressure.”
Iran’s OPEC governor Mohammad Ali Khatibi said Sunday a reduction in production “will be considered” at the group’s next meeting in Algiers in December — a meeting that might even be held early if necessary.
“I thought the OPEC cut was a fairly decisive act, but concerns of recession in the major economies remain dominant,” Moore said. “OPEC’s cut does take a step toward tightening the market.”
http://www.reuter..dName=domesticNews&rpc=22&sp=true
Oil Can Fall to $50-$60 if Credit Stays Tight
http://www.cnbc.com/id/27160853
Oil down 50pc from July high
http://www.telegraph.co.uk/finance/finance..-July-high.html
Filed under: Big Banks, comex, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, food crisis, food market, food prices, food shortage, gas prices, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, manipulated economy, manipulated prices, market manipulation, nationalization, Oil, Petrol, price fixing, silver, silver shortage, Stock Market, US Economy, Wall Street | Tags: kitco, paper investment, run in banks
Why Gold Is Down When It Should Be Up
Alex_Wallenwein
The Market Oracle
October 13, 2008
Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” – and because it deceptively pretends to be ‘the’ price-setter for real gold.
Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.
The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will ‘go up’ in value while everything else is going down.
However, these very same fund managers and their paper-bound investment psychology are the exclusive reason why Comex gold is dropping in these times when everyone (including fund managers) expects gold to rise. As already stated, though, and as they now finally realize to their own dismay, Comex-gold just isn’t gold – and that causes even further selling.
Two Losing Bets, Compounded
Fund managers’ other bets are losing money fast, now, so they need to raise cash to keep up the overall value of their respective funds, so they can earn their management bonuses and avoid getting booted for lack of relative performance. Guess what they cash in on? The very same Comex paper-gold they mistakenly bought as a ‘hedge’, of course.
Meanwhile, real investors in real gold are enjoying their shopping spree – except that the spree turned into a treasure hunt as the shelves and display cases of gold dealers look more and more like the supermarket shelves in the old Soviet Union – bare.
This is the only ‘bare-market’ in real gold the world will see for a long, long time to come.
With this split, this disconnect, between Comex illusion and gold reality, one thing or the other will have to give, and it won’t be physical gold that gives.
The system built up around the reputation of Comex-gold as being a price-setting mechanism for real gold plays right into the hands of the financial establishment. The establishment depends for its (now increasingly meager) existence on the illusion that gold “isn’t living up to its promise” as a real inflation and disaster hedge. The implication, of course, is that investors might as well stay in the computer blip and paper world.
As the Comex gold price illusion drops, many retail investors are still persuaded to keep their money circulating in the paper world, and that ultimately feeds the system. Of course, by now that ‘feeding’ mechanism looks more like life-support, but try and unhook someone who is on life-support. The results are dramatic, inevitable, immediate – and final.
Yet, even on life-support, the system is deteriorating at a catastrophic pace. It would be hilarious to watch if it wasn’t for the fact that we are all depending on this phony system for our real-life support. Without credit freely circulating through the commercial paper universe, for example, grocery stores won’t have food on their shelves, there won’t be gas a the gas station, and your bank will be shut. Cash doesn’t transfer very well without the bank settlement process.
That’s the problem.
COMEX Gold Drops $681 on October 24, 2008
Filed under: austria, Bank of England, BOE, Britain, Central Banks, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, Europe, european union, Germany, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, Lehman Brothers, london, manipulated economy, manipulated prices, market manipulation, mortgage, mortgage companies, mortgage lenders, nationalization, platinum, silver, silver shortage, south africa, Stock Market, switzerland, UBS, United Kingdom, US Economy, us mint, Wall Street | Tags: HBOS, Jurg Kiener, Krugerrand, run on banks
Gold Runs Out In Germany
Allan Hall
London Evening Standard
October 12, 2008
Risk-averse Germans are turning to gold in troubled times – but there’s none left.
German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future.
“The demand exceeds our capacities by a great deal,” said Heiko Ganss, head of precious metal company Pro Aurum.
“The requests cannot be satisfied right now,” a dealer from the Düsseldorf WGZ Bank confirmed.
“Demand for gold as a conservative investment has risen dramatically,” said stephan Henkel. “right now the demand is about 10 times as high as in normal times.”
Gold deliveries now take between four and six weeks.
The US mint said on Monday it had exhausted some of its supply of bullion coins and was struggling to meet demand for gold, silver and platinum.
South Africa’s Rand Refinery, producer of the world’s most popular gold bullion coin, the Krugerrand, temporarily ran out of the coins in August.
Londoners Queue-Up on Sidewalk to Buy Gold in Rush for Money Haven
Bloomberg
October 9, 2008
Londoners stood in line outside the largest gold coin and bar retailer in the city’s West End shopping district, clogging the lobby and trading among themselves as they sought a safe haven for their money.
“People want something tangible, something they can hold on to, something the banks can’t give them,” said Chris Burrow, the owner of ATS Bullion, the gold dealer in the Strand that traces its roots back to the 17th century. “There’s no time to breathe. We’re rushed off our feet. Staff are exhausted.”
As U.K. stocks tumbled to a five-year low, paced by financial-services companies, gold advanced. Since Lehman Brothers Holdings Inc.’s Sept. 15 filing for bankruptcy protection, exacerbating the worldwide credit crisis, gold for immediate delivery has jumped 19 percent.
“Investors are rushing to safe havens and physical gold seems to be the favorite one,” said Frederic Panizzutti, a senior vice president at MKS Finance, one of Switzerland’s four bullion refiners.
British government action to prop up the banking industry has failed to reassure investors. The U.K. on Oct. 8 promised 50 billion pounds ($86 billion) of capital to banks, the same day the Bank of England cut its benchmark interest rate by half a percentage point. Last month, the government brokered a takeover of HBOS Plc, Britain’s largest mortgage lender, and seized control of Bradford & Bingley’s mortgage division.
Austria Witnesses New Gold Rush
BBC
October 12, 2008
The financial crisis is prompting people to look for safer forms of investment than stocks and shares.
The interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic – one of the best-selling bullion coins worldwide.
Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.
Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.
“We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.
Read Full Article Here
Central banks all but stop lending gold
Javier Blas
Financial Times
October 8, 2008
Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.
The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.
Gold lease rates for two, three, and six months and for a year also jumped to levels not seen in the last seven years.
Traders said the jump reflects the fact that central banks — mostly European — have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.
“A number of central banks have been cutting back on their gold lending,” said Tom Kendall, a precious metals strategist at Mitsubishi in London.
John Reade, a commodities strategist at UBS, added that there had been a lot of talk about some central banks being unwilling to lend their gold because of a redoubled focus on the risk of borrowers not returning it.
http://seekingalpha.com/article/99680-..ces-tell-two-different-gold-stories
Blatant Banker Manipulation Of Gold Prices
http://www.prisonplanet.com/blatant-banker-manipulation-of-gold-prices.html
No Mass Mania for Gold Yet – Less than 1% of Public in Western World Have Invested in Gold
http://news.goldseek.com/GoldSeek/1224161100.php
Spot Gold Price Is Now Meaningless
http://www.istockanalyst.com/article/viewarticle%2Barticleid_2713209.html
Gold expected to rally above $1000 in Q1 2009
http://network.nationalpost.com/np/b..o-rally-above-1000-in-q1-2009.aspx
What the Pros Say: All that Glitters is Gold
http://www.cnbc.com/id/27095525
Kiener: Gold Prices To Double On Paper Market Default
http://www.prisonplanet.com/kiener-..o-double-on-paper-market-default.html
Filed under: 2008 Election, Ahmadinejad, Alex Jones, Amero, Canada, central bank, Congress, Control Grid, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, Euro, exxon mobil, Federal Reserve, gas prices, George Bush, global economy, global elite, global government, Globalism, Great Depression, Greenback, indonesia, Inflation, Iran, John McCain, Lindsey Williams, manipulated economy, manipulated oil prices, manipulated prices, Mexico, middle east, neocons, New World Order, North American Union, offshoring, Oil, OPEC, petro, Petrol, price fixing, Ron Paul, Russia, single currency, SPP, Stock Market, Tehran, US Economy | Tags: oil bourse, oilstorm, shell, Stanley Monteith, t-bills
Lindsey Williams: ’Price of crude oil is going down to $50 a barrel’ ’the dollar is going to zero’
http://www.youtube.com/watch?v=U9q9hYDmBeQ
Ahmadinejad: Oil Prices Are Fixed
http://news.yahoo.com/s/nm/20080617/ts_nm/iran_oil_ahmadinejad_dc
Traders manipulated oil prices – U.S.
http://money.cnn.com/2008/07/24/markets/cftc/index.htm?eref=rss_topstories
’Oil price may hit $500 a barrel’
http://www.presstv.ir/detail.aspx?id=64986§ionid=3510213
Pickens sees $300 oil unless U.S. cuts imports
http://www.canada.com/vancouversun/news/business/stor..f-a4325ad8691c