think it won't happen?, page-24

Twinturf has a nailed it - specifically the Internet.

No longer do the masses need to read propanganda like -
"The Gospel According to Media Mogul .......[pick any name you like].

The lid is getting lifted off a whole range of shady deals - across a spectrum from Wikileaks --> secrets to --> articles about Financial shenanigans.

Summarising - Silver/Gold as an Investment;

1. Do we all agree that printing fiat paper like there is no tomorrow is not a great plan?

2. Will holding USD be a path to riches, or will it end in worthless paper & hyperinflation?

3. Which country holds massive amounts of US Debt - would this be China?

4. Why would China in Sept 2009, build, market and encourage its citizens to swap paper for 'real stuff'?

5. Why would Europe install ATMs that dispense precious metals?


Voltaire states:

"It really is a funny thing to think everyone buying a oz of silver can destroy JPM.

When was the last time the little man destroyed a megolith?

I think it was.....NEVER.

Nations across the globe are encouraging their citizens to "trade-in" paper-that-can-be-made-out-of-thin-air for "stuff", that can't.

This Sky News report, dated May 2010, clearly shows "the little men & women of China" buying up Precious Metals.

Source:

http://www.noblecoins.com/Gold-and-Silver-Investment/News-on-Silver-and-Gold/china-citizens-buying-gold.html


According to King World News, the PRC [China] has also found a way to "trade-in" paper-that-can-be-made-out-of-thin-air for the "stuff" that can't.

On the surface this does not appear to have anything to do with the physical market.

The spot buyers are indexing, and this is what no one is talking about. They are indexing the metal to the real physical even if they can't get the physical metal at that moment.

What would stop you from putting up a few billion dollars? This is what China is doing.

You're China, you were refused IMF gold, so you are going to quietly sell your treasuries, or swap your treasuries more likely for a spot financial transaction.

What they are doing is buying spot, which is a currency transaction because you can't get the metal. The physical market has now completely diverged from the paper market.

The only way to fight it, and it can't be done in the US, but it can over here in England (the Asians can), is to buy the foreign exchange transaction which is gold versus dollar, silver versus dollar.

So essentially what you are doing is shorting the dollar versus gold, or shorting the dollar versus silver. The great thing about that is even if you can't buy the physical, you are now indexed to the price of the metal.

So even if you can't get the physical at that time, you now have your hedge, you essentially have what you want.

So if the price of gold and silver goes up, the price of your spot goes up.

Even if the Comex defaults, spot will go up.

Even when the market is taken down, it is constructive in terms of filling your physical orders.

As they take the price down, you are happy to pay a premium to pick up the physical.

The point of all of these purchases is to eventually convert them to physical gold, or physical silver, 100% of them. The Fed has to know this, they are not stupid!


So the Asians are exercising patience in converting all of these spot purchases to physical?


If these guys converted all of their spot to physical, there would be a massive default today.

No one in the US understands that, the Asians are laughing at these guys.

It's a way to unload billions and billions of dollars into the market.

Looking at the futures market gives you a totally false impression of what is going on, this is going to totally blow up.

Remember if you are China, your primary goal is to get out of trillions of dollars, that means purchasing hard assets such as gold and silver.

Source:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/14_KWN_Source_-_When_That_Happens%2C_The_Game_is_Over.html


Comment
China has been terrified of social repercussions if the USD collapses - remember the USD is still the global "Reserve Currency".

The PRC Govt was holding around USD 2 trillion in cash around the time of QE1 - their citizens were also holding a lot of US cash.

The questions is, how long will it take for China to ditch their US paper?

Because - after that, China will have little interest in supporting the US Financial System - figure out when, and you will have the timetable of a new paradigm in PM valuation.

My money is backing the hundreds of millions of "Little Guys & Gals" -- be they Chinese, Vietnamese, or Indians etc who are rushing toward PMs - and I am happy to follow...

good luck