Posted on 01/18/2014 5:34:02 PM PST by logi_cal869
As skeptical as I am of our government, if the gold is in Ft Knox and NewYork do you REALLY think “Tittle” is going to matter?
That old “ possession is 9/10ths “ thing?
One of my retirement jobs is silversmith. I seldom work gold but on occasion or demand, make some jewelry. Lately I have received several commissions and below show off some of my pieces. The piece on top is a necklace faricated from small castings and gold wire. It is all 24 carat. To the side are the companion ear rings, 24 carat textured half round wire. Enjoy
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The material is 24 carat Hypothocated gold purchased in London
I hope you will not consider me sexist or chauvinistic, but you might appreciate some thoughts not so abstract.
See my post 42 that presents some of the gold I have fabricated into very very fine jewelry
Is there a link?
Look closely....... what do you see?
Nothing.
The pic didn’t show up for me.
Please keep in mind, the material is Hypothacated gold..... now, have another look.
You are on the verge of seeing it
I get it.
Need
More
Coffee
Your bank has possession of your money, but it is yours. The same goes for nations that store their gold in US vaults. It is on deposit very much like your money in on deposit in your checking account. Neither you nor they would peacefully accept the confiscation of their money. If the bank did that, you and I would shout fraud, and demand criminal action against it and its officers. If the USG were confiscate gold legally owned by other nations, it would properly be classified as a rogue state, a rogue state with nuclear weapons and a history of liberty perhaps, but otherwise no different from Cuba and less honorable than the likes of Russia and China. (Consider the gross immorality of an affluent nation defrauding and then outright stealing the wealth of poor nations.)
The title problem arises from the possibility that there may be multiple claims of equal validity on each ounce of gold.
Actually, I think you are extremely skeptical of government. Maybe even a little bit more skeptical than I, but not much, because I do think that there is a possibility that there are multiple claims on the gold. Otherwise, why no audit unless there is something to hide? If this is the case, the USG is already a rogue state, and it only remains to be recognized as such.
Paul Craig Roberts, so, BS.
ping
tx fer the ping!
The fact that PCR is loonytoons is no big thing. What never ceases to amaze me is all the people that believe him. Kind of like all the folks that buy into global warming.
I’m assuming you’re not very familiar with the futures market, so let me fill in a few details.
We normally think of selling something only when we have possession of it. Not in the futures market. People can sell futures contracts at any time if they anticipate the price of the underlying to fall, so they can buy back the contracts at a later date at a lower price and make a profit. It is the same as buy low and sell high, only in reverse: sell high first and buy low later.
Each gold futures contract obligates the seller to deliver a specified amount of physical gold to the buyer on the contract date, usually a few months away. (A seller can always buy back the contract before the contract date to avoid making delivery. In fact, that is what most speculators do.)
When the Fed sells massive amounts of gold contracts, which is akin to dumping a lot of supplies on the market, prices will fall and those who have bought gold contracts will begin to lose money. Fearing further losses, most of them will get out before the contract date at a loss (by selling their contracts thus depressing price even further). As a result, most of the contracts are ultimately settled financially with the Fed making some nice profits in dollar terms, and the Fed never has to actually deliver most of physical gold it sold…until now.
With the Asian buyers, even though they incur massive losses when gold prices fall, they are able and willing to withstand the losses (in dollars) and hold their contracts to the contract date, thus obligating the Fed to deliver the physical gold per the contracts. Physical gold is apparently what they are after but who can blame them?
In a sense, it is incorrect to say the Fed prints all the QE money out of thin air. We are actually paying for it with our gold reserves; and if the dollar collapses, there won’t be any gold to back a new currency.
So they say.
In the mean time we're just going to have to consider that whole idea to be just another goofy fantasy. I mean, in the case where the fed bought a lot of T-bills on the secondary market, we can show dollar amounts the fed says it spent, signed receipts from the sellers, and brokers' records reporting sales/purchases. In the case of this gold futures shtick we got nottin' but rants from PCR and his hapless dupes.
I wish I could share the apparent trust you have in the government, and in the integrity of the people running it.
Roberts and Kranzler are not the first to raise these suspicions. They are just the latest in a long list of analysts/observers questioning the Fed’s possible involvement in the gold market since the precipitous fall in price that was not indicated by any fundamental or sentiments data.
The Fed would never present itself as the big seller even if it was indeed behind all the heavy selling. And it doesn’t have to. All that is required is to signal its intention to the brokers and dealers that are the Fed’s agents. I won’t be surprised if those brokers and their brothers all sold heavily at the top at $1900 in their personal accounts and rode the market all the way down. With each contract representing 100 oz. of gold, every $100 drop in price translates into a profit of 100x100=$100,000 per contract. Now the market is taken down, everyone is happy, and the Fed has nothing to do with it.
...dollar amounts the fed says it spent, signed receipts from the sellers, and brokers' records reporting sales/purchases...
...the apparent trust you have in the government...
Typical; change the subject from hard evidence to my trust or lack of same in the government. You can trust what you want but those of us working in the real world of earning a living have to deal with physical realities. For T-bill sales we look at sellers' signatures and brokers' records. T-bill sales are real because we can see and touch hard evidence of them. There are no hard copies of "gold contracts" whether we're talking "massive amounts" or the 'non-' kind. The gold contracts are not real because they exist only in people's imaginations. I don't do imagination; I try to leave that to professional career types who're good at it.
Cheers.
One last thing I must add before wrapping up on this thread lest anyone be misled.
Gold price manipulation by a central bank to prop up its currency is necessarily a covert operation in order to achieve its goal, otherwise it could further erode confidence in the currency. Comparing such a free-market subversive operation to the normal transactions the Fed conducts on its portfolios and expecting it to show on the Fed’s books is both naïve and downright delusive.
So far, not a single investment expert or advisor could claim they helped clients avoid losses by warning about gold’s top, but we can count on the only people who were prescient and profited immensely from it to remain tight-lipped, because they knew it was a covert and insider operation.
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Correction: 100x100=$10,000, not $100,000
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