DUMPING, page-157

Appreciate your view Joe. Personally l think the gold price will appreciate significantly over the next 24 months and this current consolidation is healthy for the longer term growth. Too many things factor into the price of gold so its just a matter of opinion as to where it settles. l think this time is different. l think the US Dollar has had its day, but will linger for quite some time as the world needs the convenience of a universal currency and the mechanisms are all in place and there all American. The problem of course is that Fiat Currency notoriously devalued by inflationary forces and money printing. Since 1970, the US dollar has lost 97% of its value. In the past 12 months, gold has appreciated from roughly $2000 US to its current $3000. An increase of 33%. Here is the tricky bit for most people. Gold didn't actually go up at all. Its an illusion that fools just about everyone. The currency that you redeem gold for when you sell it actually lost 33% of its value, hence to own one ounce of gold from a year ago, new investors need to pay $1000 dollars more. Reserve Banks know this and smart investors know this, which is why demand for gold has increased beyond historical levels. The only way gold will retrace is if demand for it wanes and l am very confidant demand will continue to increase. I guess the other way to suppress its run is to dump paper gold via ETF holdings like the big US banks are still doing with silver. I think gold has escaped the clutches of the shorters however.

Institutions and investors are diving into gold because of a lack of confidence in the US Dollar and how the Yanks have managed the currency. Its clear they now have 36 Trillion Dollars of debt and at least another 100 Trillion of maturing (OFF BOOK LIABILITIES) maturing before 2030. Given they have no hope in hell of ever repaying just the 36 Trillion in debt, let alone foreward liabilities - what are they going to do?

I want to make one thing crystal clear. They cannot extinguish that debt. The Americans owe that money to the rest of the world largely through Government Bonds. The joke here is that they used to say US Bonds were as good as gold. lm rolling around the floor now in hysterics. Truth is the Yanks are never going to repay bond holders in gold but in paper currency. The very thing more and more rich people don't want. What a shite fest. I dont have the answer as to how this will be resolved, but lm pretty confident Fiat currencies globally are in for a severe time of reconing. Hence again the unrivalled interest in gold.

If all these underlying debt problems were resolved, l would be the first to agree gold could retrace considerably. Unfortunately, things like this and the debt in society is getting worse. Logic suggests that since these issues are the drivers of the "apparent increased" gold price, and that they are actually getting worse. Then there simply is no case for a fall in the gold price. The new normal may in fact be a base gold price of US $5000 or higher. Remember debt has to be monetised. Currently it is with worthless quickly deflating currency, but a ground swell of people are opting out of the system with gold holdings. If the average dummy in the street finally cottons on to this ponzi scheme, a sumani will flood the gold sector driving prices to unimaginable levels.

Will the Yanks make it unlawful for citizens to hold gold like they did under Rooservelt? l am fairly confident the price of gold will increase for the forseable future because the US dollar will continue to depreciate. I dont mean relative to other currencies which are worthless too, but relative to gold itself. The true preserve of wealth since man invented money.