[Publius]

Concur. Gold is finally in a primary bull market, and this is only the beginning.

If the story is true -- that the central banks have swapped out most of their gold to the bullion banks who have used it to keep the price down to support the Strong Dollar Policy -- then there is going one hell of a short squeeze soon. The central banks will no longer be able to play this game, and they'll have to get that gold back. The bullion banks will have to buy it back at many multiples of the current price.

Then look at collateral damage.

• What will a short squeeze in gold will do to financial markets based on paper -- stocks and bonds?
• What will a huge price jump in gold do to the dollar and other fiat currencies?
• When the central banks defend their currencies by raising interest rates through the roof, what other collateral damage does that unleash?
• What about those financial institutions who have huge amounts of money at risk in interest rate swaps (derivitives) that were once safe but now are dangerous in a world of volatile interest rates?
• What kind of collateral damage do we see in the world of the FDIC and Fannie Mae and Freddy Mac?

I feel like the guy who stands on the beach and sees what looks like a cloud bank moving quickly toward him. Only too late does he realize that the cloud bank is really a tsunami.

[WatchNKorea]

"Concur. Gold is finally in a primary bull market, and this is only the beginning."

Absolutely! No doubt in my mind.

[WatchNKorea]

"If the story is true -- that the central banks have swapped out most of their gold to the bullion banks who have used it to keep the price down..."

Key: "...to keep the price down."
Bttt

[WatchNKorea]

"Then look at collateral damage.
What will a short squeeze in gold will do to financial markets based on paper -- stocks and bonds?"

All the more reason to get your minimum 5% without delay.

[WatchNKorea]

"What will a huge price jump in gold do to the dollar and other fiat currencies?"

Key word: fiat

[WatchNKorea]

"I feel like the guy who stands on the beach and sees what looks like a cloud bank moving quickly toward him. Only too late does he realize that the cloud bank is really a tsunami."

Me too. Shame I'm just now starting a new job. I have NO funds for any gold or silver investments. But at least I'm hired on...so things aren't so bad. :)

[Woodman]

Please see my 92 unles the gold market has redefined a swap it isn't what you think or this guy is reporting. Take it FWIW from a guy who has negotiated billions of dollars worth of swaps when I did FX.