Only 500 tons ETF Paper Gold were seemingly being dumped on Friday following the panic on Dragi's call on Cyprus to sell out it's gold for the temporary debt bail out to be released, and also on questionable Goldman Sachs etc prompts being released. Looks like a grand plan to scoop up real physical gold on the cheap to me with record demand hitting the markets right now apparently. Likewise with the better run lower cost gold miners! Guess China cannot believe it's luck scooping up all it can without causing any buying alerts. What will the west do when all the real gold has gone east and all that remains is insolvency and debt. Better change the plan pretty quickly now before its too late. Guess weakening the markets also gives the bullion banks another chance to reduce some of their massive shorts which would likely create havoc if they burn on a renewed gold price surge. Gives them a little more time I guess, but nowhere near enough gold left to cover all that paper. When the storm hits that's all the paper players will be left with just grubby bits of paper. May take a little while to play out but looks like small paper players/shareholders are being scammed big time, and on face value is all quite depressing. My conviction is all is not real. Bet if 500 tons of real metal (not paper) was being offered up on the cheap it would not last long either. Lots of paper out there and rapidly diminishing real metal bars, otherwise how come Germany has to wait many years for just a fraction of its gold hoard to be re repatriated. If there was plenty left how come they can't get their hands on right now or this year? Real smoke & mirrors I think here. If Cyprus, and other debt strapped desperate countries are forced out of their gold reserves just who is in the queue to buy. Wouldn't that be interesting! Where did the Iraqui/Libian gold holdings go. Would also like to see what would occur in the markets if paper gold holders/players instead of dumping their paper gold holdings, asked for physical metal bars instead. Wouldn't that cause a stir! Then my guess is we would quickly have a major transformation in the precious metals markets with all the dire global debt and money printing now occurring on a scale the world has never before seen. Then we would all have a reality check I guess. Guess we all have to follow our gut feelings from here on and maybe we should be taking with a pinch of salt what we are being told now on almost a daily basis. Lots of ulterior motives in play! Despite the Friday price plunge I wish I was invested in real metal now rather than battered junior miners, but when reality returns the better run mining outfits will also return to the fore too. However the damage is now so great that those with only pipe dreams and little cash will likely quietly dissappear en masse. The better run low cost juniors will then become much more visible to all, and likely again prosper in the years ahead. But what kind of world will it be then? cheers mamba
