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To: Zakeet

Paper gold to zero? That defies the law of supply and demand. To make such a statement without establishing and defending your premise is intellectually dishonest. Explain please.


15 posted on 05/17/2013 5:14:33 AM PDT by CincyRichieRich (Keep your head up and keep moving forward!)
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To: CincyRichieRich
Paper gold to zero? That defies the law of supply and demand. To make such a statement without establishing and defending your premise is intellectually dishonest. Explain please.

The demand for paper gold and paper silver will drop to zero as more and more people realize that the ETFs are not backed by physical precious metals. GLD and SLV are is nothing more than an IOUs that are payable in fiat currency. You should carefully read and analyze their prospectuses if you didn't already realize this.

Physical precious metals are already in backwardation, premiums for physical are growing every day, arbitrage is failing to equate paper and physical prices because people are afraid to part with their physical, the Comex and JP Morgan vaults are at low extremely low levels, many believe a default similar to recent ABN AMRO debacle is imminent for both the LBMA and Comex.

For much more information on the subject, I recommend you read the Zero Hedge, GATA, Harvey Organ, Eric King and Turd Ferguson blogs.

22 posted on 05/17/2013 6:07:53 AM PDT by Zakeet (If idiots could fly, Washington would be an airport)
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