NYSE Runs Out of Gold Bars: What Happens Next?

[Peter Lemkin]

Jan, Peter, David.

Frankly I was pretty firmly in the GATA 'The shorts will eventually be trapped' camp until reading David's 'The Secret Gold Treaty' - and that from a deep deep sceptic on all things 'official'. (Who was it said 'never believe anything until it has been officially denied? - well that's me in spades). Add to that my background in trading paper gold using well-known measures that were (and to some extent remain) solid evidence of manipulation by people with VERY deep pockets, and it's a pretty fair bet that most traders and the vast bulk of the general population with any interest in gold as an investment regard the official 147,000 MT's above ground gold as being in the ball-park so-to-speak.

The alleged vast quantities of Black Gold explain so much. It does not have to be under the control of the Banksters yet - necessarily. Just the fact of its existence and Bankster knowledge of it is quite sufficient to explain their cockyness. I now expect gold to remain a reasonable investment on any ong-term view - in the sense that its value measured against a basket of necessities will probably always hold; but waiting for a price explosion whilst accumulating offical gold looks more and more like what the Banksters both want and expect people to do - and their plans are laid accordingly.

You can see why the interest I expressed to David in my original Lounge postings was about the stratagems employed to launder large and ongoing quantities of the Black stuff - because that is the key to them maintaining rigid control over its price. Analogous to drugs and diamonds, the crooks are pretty much an indispensable tool of official policy.

What I NEVER understood before - and less than zero NOW - is how anyone with sense would think they 'owned' gold when they only have a paper [and now electronic trace] that they do own it. Whatever game the Deep Black Gold Holders are going to do; when the move comes, those with paper gold will have only paper when the company/bank/whatever they got it from and is 'holding' their gold goes belly-up; those with physical posession of real gold at least have something to trade with other un-deep and small-time traders. Paper gold seems to have always been a scam or disaster in waiting.