We are told by the MSM that the sale of $650
million worth of Cypriot Gold has just caused a
3 % drop in the price of Gold (and more than 5%
in Silver). Is this credible?
The Fed is creating $85 billion per month or close
to $3 billion per day, 24/7. The Cypriot Gold at is
only 1/5th of what our Fed prints EVERY day!
The U.S. Treasury borrows some $4 billion per
day to keep our well oiled economic engine
running, ALL of the Cypriot Gold is about 1/7th of
what the U.S. borrows each and EVERY day.
Last month, China imported from Hong Kong
alone some 97 tons or roughly 7 times the amount
of Cyprus’s total Gold holdings, the Cypriot Gold
is a mere 4 days worth of imports. One other way
to look at this is that 14 tons is about 6 tenths of 1
percent of the global production of Gold for 1
year…it is nothing. No, $650 million in today’s
world is LESS THAN NOTHING!
2013 Silver Eagles
(Available For Now) at SDBullion!
By Bill Holter, Miles Franklin Ltd,:
I had not planned any commentary this weekend
but with Gold “down” $65 per ounce I will put my 2
cents in. As you know, I called “bottom” about 5
weeks ago the first time we hit $1,550 then again
about 2 weeks ago on the retest of those levels.
They were broken decisively Friday. The “reason”
for Wednesdays sell off of $25? And the reason
given for today’s $65 by the CNBC know
nothings? ……..Cyprus!
Yep, Cyprus may sell ALL of their Gold and
swamp the market! This weeks price action is
merely “front running” these sales in order to get
out before the price is CRUSHED! But wait,
Cyprus has less than 14 tons of Gold…this is
worth some $650 million (yes, with an “M”) yet
they have an updated shortfall of some $23 billion
(with a “b”) so how does selling their Gold fix their
problems? Well obviously it does not even
amount to a drop in the bucket as it is only 3% or
so of what capital they will need to raise!
Let me put this into perspective for you in a
couple of different ways. The Fed is creating $85
billion per month or close to $3 billion per day,
24/7. The Cypriot Gold is only 1/5th of what our
Fed prints EVERY day! The U.S. Treasury
borrows some $4 billion per day to keep our well
oiled economic engine running, ALL of the Cypriot
Gold is about 1/7th of what the U.S. borrows each
and EVERY day. Last month, China imported
from Hong Kong alone some 97 tons or roughly 7
times the amount of Cyprus’s total Gold holdings,
the Cypriot Gold is a mere 4 days worth of
imports. One other way to look at this is that 14
tons is about 6 tenths of 1 percent of the global
production of Gold for 1 year…it is nothing. No,
$650 million in today’s world is LESS THAN
NOTHING!
So, we are told that the sale of $650 million worth
of Gold has just caused a 3 % drop in the price of
Gold (and more than 5% in Silver). Is this
credible? And if it had any credibility at all, this is
Gold being sold, not Silver so why would Silver,
platinum, palladium and even copper be sold off?
I will leave you with a few questions that I won’t
answer because the answers are too obvious. Do
you really believe that holders of physical metal
would part with their metal if they knew something
bad like a system wide banking failure was
imminent? Or a (another) sovereign was going to
default? Or some whackos were going to start
lobbing nuclear weapons up in the air? Would
physical holders sell (in panic fashion no less)
because a “treasure” was found or some new
mine opened that had 14 tons of Gold?
Do you see the lack of logic here? Literally $
trillions in paper monies are being put into the
system and Gold is not only finite, it is scarce to
begin with. More physical has been purchased
than produced over the last at least 20 years so
we know that “inventories” are shrinking. Do you
not think that the Chinese would like to take an
extra 14 tons into their hoard? How about the
Indians? There are reports of shortages of Gold
in south India, wouldn’t they like this 14 tons to
alleviate the shortage?
Or, maybe I’m reading this thing the wrong way.
Maybe investors are selling their paper Gold
because they suddenly realized that it has no
backing. Maybe they will sell it all the way down
to its intrinsic value…ZERO! All I can say is that
in the past whenever Gold was sold off in violent
fashion, we soon found out about another BIG
problem that was brewing behind the scenes.
This is my bet, something big, REALLY BIG is
collapsing out of sight of the public’s eye and we
will only learn of it after the fact.
By the way, when the markets close there will be
a period of time where no one has a clue about
what the “price of Gold” is. The only thing you will
know is whether you have it or not.
Regards, Bill H.
million worth of Cypriot Gold has just caused a
3 % drop in the price of Gold (and more than 5%
in Silver). Is this credible?
The Fed is creating $85 billion per month or close
to $3 billion per day, 24/7. The Cypriot Gold at is
only 1/5th of what our Fed prints EVERY day!
The U.S. Treasury borrows some $4 billion per
day to keep our well oiled economic engine
running, ALL of the Cypriot Gold is about 1/7th of
what the U.S. borrows each and EVERY day.
Last month, China imported from Hong Kong
alone some 97 tons or roughly 7 times the amount
of Cyprus’s total Gold holdings, the Cypriot Gold
is a mere 4 days worth of imports. One other way
to look at this is that 14 tons is about 6 tenths of 1
percent of the global production of Gold for 1
year…it is nothing. No, $650 million in today’s
world is LESS THAN NOTHING!
2013 Silver Eagles
(Available For Now) at SDBullion!
By Bill Holter, Miles Franklin Ltd,:
I had not planned any commentary this weekend
but with Gold “down” $65 per ounce I will put my 2
cents in. As you know, I called “bottom” about 5
weeks ago the first time we hit $1,550 then again
about 2 weeks ago on the retest of those levels.
They were broken decisively Friday. The “reason”
for Wednesdays sell off of $25? And the reason
given for today’s $65 by the CNBC know
nothings? ……..Cyprus!
Yep, Cyprus may sell ALL of their Gold and
swamp the market! This weeks price action is
merely “front running” these sales in order to get
out before the price is CRUSHED! But wait,
Cyprus has less than 14 tons of Gold…this is
worth some $650 million (yes, with an “M”) yet
they have an updated shortfall of some $23 billion
(with a “b”) so how does selling their Gold fix their
problems? Well obviously it does not even
amount to a drop in the bucket as it is only 3% or
so of what capital they will need to raise!
Let me put this into perspective for you in a
couple of different ways. The Fed is creating $85
billion per month or close to $3 billion per day,
24/7. The Cypriot Gold is only 1/5th of what our
Fed prints EVERY day! The U.S. Treasury
borrows some $4 billion per day to keep our well
oiled economic engine running, ALL of the Cypriot
Gold is about 1/7th of what the U.S. borrows each
and EVERY day. Last month, China imported
from Hong Kong alone some 97 tons or roughly 7
times the amount of Cyprus’s total Gold holdings,
the Cypriot Gold is a mere 4 days worth of
imports. One other way to look at this is that 14
tons is about 6 tenths of 1 percent of the global
production of Gold for 1 year…it is nothing. No,
$650 million in today’s world is LESS THAN
NOTHING!
So, we are told that the sale of $650 million worth
of Gold has just caused a 3 % drop in the price of
Gold (and more than 5% in Silver). Is this
credible? And if it had any credibility at all, this is
Gold being sold, not Silver so why would Silver,
platinum, palladium and even copper be sold off?
I will leave you with a few questions that I won’t
answer because the answers are too obvious. Do
you really believe that holders of physical metal
would part with their metal if they knew something
bad like a system wide banking failure was
imminent? Or a (another) sovereign was going to
default? Or some whackos were going to start
lobbing nuclear weapons up in the air? Would
physical holders sell (in panic fashion no less)
because a “treasure” was found or some new
mine opened that had 14 tons of Gold?
Do you see the lack of logic here? Literally $
trillions in paper monies are being put into the
system and Gold is not only finite, it is scarce to
begin with. More physical has been purchased
than produced over the last at least 20 years so
we know that “inventories” are shrinking. Do you
not think that the Chinese would like to take an
extra 14 tons into their hoard? How about the
Indians? There are reports of shortages of Gold
in south India, wouldn’t they like this 14 tons to
alleviate the shortage?
Or, maybe I’m reading this thing the wrong way.
Maybe investors are selling their paper Gold
because they suddenly realized that it has no
backing. Maybe they will sell it all the way down
to its intrinsic value…ZERO! All I can say is that
in the past whenever Gold was sold off in violent
fashion, we soon found out about another BIG
problem that was brewing behind the scenes.
This is my bet, something big, REALLY BIG is
collapsing out of sight of the public’s eye and we
will only learn of it after the fact.
By the way, when the markets close there will be
a period of time where no one has a clue about
what the “price of Gold” is. The only thing you will
know is whether you have it or not.
Regards, Bill H.
Comment