The Latest Gold Fraud Bombshell

[edit on 13-4-2010 by Cincinnatus]

reply to post by OBE1


Those pictures of Iraq gold reminds me of the Gulf war film 3 kings with Clooney.

www.imdb.com...

In the aftermath of the Persian Gulf War, 4 soldiers set out to steal gold that was stolen from Kuwait, but they discover people who desperately need their help.

I wonder how much gold they got from Iraq and where it is now?

Afghanistan has a legendary amount of gold as well.

reply to post by OBE1


WHOAA..

Are those pictures seriously real?

Can you imagine the difference between the price then and now?

Could have retired in Palma Majorca at the ripe age of 26 with a few of those taped to my legs hahahaha

Originally posted by whiteraven
....where it is now?

Dipped in tungsten &

serving as ballast on the Bush family yacht.

Originally posted by GreenBicMan
Could have retired in Palma Majorca at the ripe age of 26 with a few of those taped to my legs hahahaha

Position yourself in the right Jr's and you can retire where-ever in about 3yrs

I have a sinking feeling that the revelations of metals fraud will come to naught.

Too many people with "paper gold." Too much vested interest (World Bank, IMF, Fed, BIS, etc.) in keeping metal prices down.

I would like to think the fraud will end but somehow I'm not hopeful.

This hit the Motley Fool today...

And I quote them

Everybody Out of the Gold Pool!
Although I'm not a lifeguard, I can tell a blue sky from a thunderstorm.

Following a series of astonishing Revelations over recent weeks, which have further demolished common misperceptions regarding the structure of the global gold and silver markets, you don't have to carry a whistle or dab zinc on your nose to know that investors need to climb out of the unallocated gold pool

At the same hearing, GATA chairman Bill Murphy presented allegations of gold and silver price-suppression by bullion banks such as JPMorgan Chase (NYSE: JPM) and HSBC (NYSE: HBC). Revelations from London metals trader (turned whistleblower) Andrew Maguire heaped additional corroboration onto evidence that GATA has been building for more than a decade. As a result, I urged investors to give careful consideration to their choice of bullion investment vehicles, and pointed out that the custodians of popular proxies like the SPDR Gold Trust (NYSE: GLD) and the iShares Silver Trust (NYSE: SLV) are the very same bullion banks alleged by GATA to maintain massive short positions on the COMEX.

www.fool.com...

reply to post by silent thunder


Exactly right.

There aren't enough people to ever take delivery at only $110,000 a contract LOL!

It doesn't matter anyway, its all based on the faith of the US DOLLAR!!!

reply to post by OBE1


GBP/AUD

&

HSI Futures


It's my only way out of mediocrity, and I am quite close on securing a big enough sum of money where I can change my saying in this upper left corner. But hate to count eggs before they hatch.. In real time watching my future on the line.. last 8 days have been pretty stressful, could use that trip to Majorca

The other thing is, if people lose confidence in gold ETFs/other gold-backed paper (which, as I stated above, is a far from foregone conclusion), logic would dictate that the value of these instruments would drop sharply. People seem to assume that the value of physical gold would be decoupled from such instruments and skyrocket as "paper gold" drops, but is this really the case? I find it far more likely that if paper gold falls, people will shy away from all gold, including physical gold, and the price of physical gold will drop too.

The simple truth is that most investors will always be leery of holding physical gold. Are they going to install safes in their office buildings? Take to burying it in coffee cans in their backyards? I could see a few ATSers doing this, but I don't think the majority of the investing public would go along with this strategy. Instead, I think a loss of confidence in paper gold would also translate into falling prices for physical gold.

reply to post by silent thunder


You are probably right with everything you said.

But I don't know because people still love AIG at $30 a share, haha.. I mean its at 20 : 1 split but let's get real. That is speculation at its finest with a few big holders pulling the strings.

It's something to talk about I guess if nothing else.

Still most of the world ...meaning India (bigger pop then China now) and China value Gold and silver as money...so demand will continue.

I am not so sure about paper money though. If the US dollar loses its luster then how will we measure its value, the value of gold?

Crazy question right?lol

I am very used to be able to spend US cash all around the world and now it seems the US dollar may not be sought after as it once was.

Is it being traded in the Islamic and Asian money changers as it used too?

reply to post by whiteraven


I wouldn't worry about any of this and what other currency would you rather have?

Euro? . No

GBP? No

AUD? No thanks

CAN? Maybe, but CAN is too strong and I wouldn't

NZD? Laughable

JPY? No

But our dollar = War Machine, and until this stops (not likely) there will always be demand for US DOLLAR.

I remember reading that the reason that defense stocks are a good investment is because most of our r and d money goes into weaponry.

If you got the best weapons you get the gold.

Good point GBICMAN.

Take a look here if you want a different perspective on money, gold and debt. It's perhaps not all true, but if just a little bit of it is, well, it will make you really think about your current situation and investment goals. It's called the crash course by a guy named Chris Martenson - it's been posted on ATS before, so no real revelation here, but just in case you haven't seen it, it's really worth a look.

Originally posted by whiteraven
I remember reading that the reason that defense stocks are a good investment is because most of our r and d money goes into weaponry.

If you got the best weapons you get the gold.

If that is true, why is America now bankrupt?

reply to post by Silver Shadow
[more

Somebody else must be challenging us and manipulating the system.

economics is war...for real...so somebody or something fired a warning shot in 2008

Edit..speculation only

[edit on 14-4-2010 by whiteraven]

Not only is there not enough gold in vaults to fill delivery orders if everyone decided they wanted possession of the hard stuff, I suspect there is a significant percentage of 400oz bars that are gold coated tungsten.

If both stories ever catch legs and are proven to be even partially true we are in for one rough ride. Could trash the entire world financial system.

Originally posted by silent thunder
The other thing is, if people lose confidence in gold ETFs/other gold-backed paper (which, as I stated above, is a far from foregone conclusion), logic would dictate that the value of these instruments would drop sharply. People seem to assume that the value of physical gold would be decoupled from such instruments and skyrocket as "paper gold" drops, but is this really the case? I find it far more likely that if paper gold falls, people will shy away from all gold, including physical gold, and the price of physical gold will drop too.

The simple truth is that most investors will always be leery of holding physical gold. Are they going to install safes in their office buildings? Take to burying it in coffee cans in their backyards? I could see a few ATSers doing this, but I don't think the majority of the investing public would go along with this strategy. Instead, I think a loss of confidence in paper gold would also translate into falling prices for physical gold.

On the contrary , an outright break-down in Gold/Silver derivatives would create a wave of panic buying in the [real] physical market.

A recognized shortage in any "commodity" puts upward pressure on price. Bear in mind that the movers & shakers on the Comex futures exchange are the large bullion banks , major producers , major hedge funds (aka: tech funds) , major jewelry fabricators and industrial end users. Average goldbugs , including mom & pop investors buy from coin shops - mainstream retail dealers - ebay - an so on. This class of investor will continue to buy and store Gold/Silver in the manner they have always bought and stored precious metals. With a little imagination & ingenuity there exists multiple alternatives for safe storage.

On the Comex , it's basically the large commercial shorts (bullion banks) vs the large specs (tech fund longs). All short contracts have to be covered eventually...either by delivering actual product , or by assuming (buying back) an offsetting long position [from a stopped-out spec]. This is why we see prices gradually advancing across the past 10yrs in spite of consistent manipulation/price capping. The cartel strategy is to cover their massive short positions incrementally at a "controlled" pace , avoiding a rapid melt-up in price/default...and rob the mindless black-box specs in the process. It's common knowledge that there is never enough physical inventory to cover the outstanding short interest. In light of the information brought to bear at the recent CFTC hearing , a handful of deep pocketed , determined longs could begin to turn the tide....expect a process...chess..not checkers

Investors in allocated/unallocated pool accounts and various certificate programs are exposed to counterparty risk...the universal goldbuggery No-No. If unable to redeem , they're likely to get "caught inside on a big set"

gold also has no function, it doesnt pay dividents and it doesnt have an interest rate

So are you saying that fiat paper money is better when the real rate of inflation is close to double digits and your doing well if you get 2% interest on your money from saving and then have to pay taxes ?

Gold is, has and always will be worth something due to limited quantities and when it comes to silver which is an industrial metal then it is paying a very good interest rate and thats before all the money from the printing press hits the streets.

We don't use copper in money now because the price of copper is worth more then the money itself and lets face it copper is dirt cheap so does that instill much faith for you in bits of paper and do remember your goverment is taxing you to death for owning property one way or another.

time will tell but i'm hopeing for a dip in the price of silver/gold so i can get some more.