Tuesday, September 25, 2012

Ormolu occamy...


"There is much discussion these days as to whether the price of gold is being manipulated. The answer is simply 'yes.'" Says Jeff Thomas, International Man [Link]. If you have it, not on paper, if you have physical gold, hide it. The same greedy disaster that has befallen the money market is happening to gold as well (and probably everything else) much as banks never have cash anywhere near the amount of money they lend, so too bullion banks hold only a tiny proportion of the gold they sell.
"Of course, this charade cannot go on forever. Eventually, the buyers realise what is being done and will then demand delivery of their gold. This will bring about two major events: a crash in the paper gold market and a dramatic increase in the price of physical gold."
By coincidence, the UK's famous alchemist and instigator of the Brown Bottom was visiting the New York Stock Exchange today: "He showed a rare Midas touch", a new habit that would be: golden Brown texture like sun...

4 comments:

Paul said...

It's more than a little worrying to contemplate that the gold market could actually be operating in a similar way to the banking market (pre 2008 crash) and that there really isn't gold in them thar vaults - everything (or a large precentage of it) exists only on paper.

Span Ows said...

Scary indeed, especially as many hundreds of thousands have been buying gold, thinking they're saving themselves when it seems they could really be in the same boat as everyone else!

Span Ows said...

...and I do recall telling everyone to buy buy buy a few years back! ;-)

Span Ows said...

Blimey...6 and a half years back [Link]