John Embry on gold price manipulation and the pros and cons of personal holding vs. storage
Click download link to listen on this device: Download Show
This is an unedited version of what will be Segment 3 in the upcoming Weekend Radio Show.
Right on!……James, (as BIG Al says)…..the greater. You nailed it….my friend…IMHO
Great comment The Greater,
Thank you my friend!
Big Al
James…..your thoughts cover a wide range of humans………….one,overrides or jockies for position over another……………..where, biblically, gambling is not wisdom,but, reading providedth knowledge ..study to show they self approved….. knowing the difference is wisdom and gets you thur the narrow gate…………ootb
BTW,
Embry is brilliant……..he keeps harping on the same thing…Why?….because very few people get it —– STILL……..
Great comment The Greater,
Thank you my friend!
Big Al
The British destroyed “The Continentals” by counterfeiting them during “The War Of Independence”, I wonder how many foreign governments are counterfeiting the US greenback and using it to buy gold. ( That is so dastardly, how could they, that’s like beating JP Morgan at his own own game) People forget that Uncle Ben has competition in the money printing business, there are probably a number of foreign governments engaged in this manner. DT
The Royal Canadian Mint has been in business for years. They have produced coins for 75 countries plus paper currencies. I was just looking at their site. They have a 10 kilogram gold coin they made. Face value is 100,000 dollars.
Who the hell buys a 10 kilo gold coin?
http://www.mint.ca/store/mint/learn/10-kilo-coin-6500002#.UYwac3DnZjo
I was surprised it was made in Canada, they must have imported Chinese workers, not even popsicle sticks have been made in North America since 1968. DT
One in a thousand!
Big Al
Hedge fund chief loses big on gold http://www.stuff.co.nz/business/money/8646057/Hedge-fund-chief-loses-big-on-gold Hedge fund billionaire John Paulson – so I guess not all paper/ETF are created equal
One in a thousand!
Big Al
IF PAULSON HAD BEEN SO SMART,,,,,he could have told his subscribers,,,,it will take seven years to get them their money back in gold that is……………
after all the US FED, did say to GERMANY….”.we’ll get back to ya”…..in 7 years……
and we all know Uncle Sam is the leader…..and we must follow…….
No its Uncle Ben will bend over & Obama will follow, don`t you know they are sweet on each other…..its an elephant team with the neo-cons of the Senate, its an orgy going on with the President and the central banker`s bank roll. How else could these bankers afford to rent all these players, the Gold they(the bankers) leased out, as in over sold to the Swiss mint is gone. Germany has been played, their toast. A sucker born every minute, as W.C. Fields would say. Just whose holding on to the that elephant tail right now, its the Germans. de Rothschild is long gone to China, his fall guy is guess who ?
Nice EXPOSE’ ….DENNIS………………..
The gold manipulation promoters have often said things like:
“They can manipulate the short term price action but they can’t change the main bull trend.”
Well now those guys are looking disingenuous in my humble opinion.
They have been wrong, either because:
1. The manipulators HAVE changed the longer term trend, at least the trend in silver down 50-60% for 2 years and gold -30% in 18 months, ie.. they have managed to change a bull market into a bear market. In 1980, changing COMEX rules changed a bull into a 20 year bear: so maybe the manipulators CAN change a secular bull to a secular bear overnight – but I think only when all the product is in weak hands already and the bull is at an end anyway.
OR
2. If manipulation can’t change the long term bull market as they say, then something else has. Usually what changes the longer term market is possession of far too much of the product in weak hands – maybe that’s what we have had recently in gold and silver. It does not look as extreme as 1980, so maybe this bear is just a cyclical one (a mid-cycle correction – that’s what I think it is).
So look back to 2011 when silver was screaming up to $50 in April/May and gold was screaming up to $1923 in Aug/Sept, WHERE WERE THE MANIPULATORS? WERE THEY ON HOLIDAY?
I think the manipulations gurus are talking their book.
There has been a longer term trend change in this market. Period. Downside manipulation is short term in a bull market. The downside manipulators can have a field day in a bear market, as they are right now. In fact, they could just step aside and watch the longs liquodate and the price drop on its own.
Now back to the crux. Are the Chinese buyers that smart? They were loving gold at $1600-1900 and it is now $1460. Oops! The Indians were apparently much smarter, pulling away from buing above $1600 as they do on every large rally.
If we have a continued bear market for the next couple of years, some more of these late buyers will puke their gold and silver, paper AND physical – and buy stocks or whatever with whatever money they have left afte swallowing their losses. There is a lot of denial on the way down and a lot of bottom calling.
When the bottom calling stops, the bottom is reached. All the weak players and latecomers will be out. Guess where the gold could be? Back into the hands of the elites where it belongs (in their opinion), back where it always goes – to the descendants of “Mayer Amschel” and the other dynastic families.
Interesting take…very interesting…and well-thought out too. What to do? Hold baby…just hold!
It’s going to be interesting, Marc, when we hit the “strong hands” bottom and it is not good enough for the elite, they will want nobody but them to hold gold. The smart middle-class people will just lock their precious metals away until the metal price reflects the shadow price ($10,000+), no matter what the elite do to the paper price.
In the meantime, the final shakedown will close down junior miners and local coin shops with bankruptcy. Permanent backwardation, as the smart money will buy new production all the way up to 1 year in advance. When do we see this on the mass-production lines that make Iphones and Ipods?
Job Description: My clients are a group of world beating hedge funds and quantitative trading companies based in London, New York, Chicago, Switzerland, Singapore and Hong Kong; they focus on innovative high frequency trading strategies, intensely mathematical statistical arbitrage strategies, or occasionally exploiting global macro trends…Oh yes you have to be totally Ruthless, take-no prisoners type of guy or gal. http://jobs.efinancialcareers.co.uk/job-4000000001166279.htm?_utma=157191919.1601376617.1368136613 Cheated out of a bonus? Sick of investment banking? Stuck in UBS or BarCap? …………. this is a real job…… sure sounds like most of the investors on this site are out classed
James the LESSER and all: HERE IS THE SINGLE MOST IMPORTANT REASON (S) YOU GUYS ARE IN GOLD AND SILVER! YIKES….http://www.munknee.com/2013/05/shift-from-u-s-dollar-as-world-reserve-currency-underway-what-will-this-mean-for-america/
Munknee is about as original as a N Korean FRN.
http://theeconomiccollapseblog.com/archives/10-reasons-why-the-reign-of-the-dollar-as-the-world-reserve-currency-is-about-to-come-to-an-end
I know regurgitated….I saw this before.
marc………………this is exactly,why,……..we have been talking about this for a couple of years…………….china,russia, …..iran, ..etc…..they are tired of the bs from the us…………
BTW,
Period….exclamation point…….end of story! Now where in the sam h___ is Irish when you need him…..yeah, I know…let’s go drag him out of the pub! Wait a minute – I go a better idea…let’s JOIN HIM……..bottom’s up my friends! 🙂
Irish is still polishing the candlestick……trying to get his fingerprints off, before the queen catches on ,,,that not all that glitters it gold ,,,,I mean silver…………..ootb
25/April/2013
How to get the US economy going again
Hugo Salinas Price
I am reading a great deal of alarming information regarding impending economic collapse in the US.
I feel sure that most of the predictions I read are based on facts, and ought to scare the living daylights out of all readers.
What I fail to see is an explanation of the causes of this terrible, atrocious situation in which the US economy finds itself.
Let me cut through all the dire warnings and offer readers a solution. However difficult it may be to get a solution in place, it is absolutely necessary to understand that there is a solution; if you want it badly enough, it is there waiting to be implemented.
HOW TO GET THE US ECONOMY GOING AGAIN.
In order to re-invigorate the US economy the following policy must be put in place:
The United States will only accept just as much imports from foreign countries, as foreign countries are willing to purchase from the US. (But the US will not resort to high Tariffs to restrict imports and protect local production.)
Question: Then you are saying, Mr. Salinas, that the US should not just import what it wants from foreign countries, and pay in dollars for those imports?
Answer: That is just what I am saying. Because, you see, if you pay in dollars, there is no need for local industries in the US. They are not needed – and in fact they have disappeared – because imports can be paid with dollars. What do you want: lots of Asian imports available at Walmart, but no jobs, and what jobs there are – at tattoo parlors and restaurants – paying miserable wages? Or do you want industries which will employ workers, pay higher wages and pay taxes to your government as well?
You see, what happened to your country, the USA, is that since 1971 the US has no need to pay for imports with EXPORTS – and exports require local industries to feed the export trade. Since 1971, the US has been paying for everything under the Sun, with dollars. And the result has been that US industries just dried up. They were unnecessary. The jobs disappeared. Detroit shriveled up, and the whole US is shriveling up, without industries. All this has happened because US imports can be paid with dollars, and exports are not really necessary.
This was great for China and Asia in general. It was party-time there! They sold everything they could make, and received dollars in exchange. The US had a party – for a while; until the industries died out and unemployment took over. All because dollars can pay for imports. Exports – forget it! The exports which sustained the industrial base – and the employment base – of the US are not needed anymore. And so the heart of the US has been rotting away – bringing with it unemployment and 47 millions on food stamps.
That’s where you are today.
So how do you solve the problem?
Very simple! I won’t say it won’t be painful, at first. But it’s the only solution:
GOLD MUST RETURN TO THE MONETARY SYSTEM OF THE US.
The US must declare that as of now:
The US will pay for all imports either with goods and services or with gold.
The US will provisionally initiate the re-industrialization of the USA with a gold price of $10,000 an ounce of gold.
Exporters to the US will have their choice:
Take their payment in US-made goods and services, or
Take their payment in gold at $10,000 dollars an ounce.
The US will not attempt to reduce the flow of imports by means of Tariffs. Tariffs offer no solution; in fact, Tariffs derail the only solution.
The definitive price of gold will be determined this way:
As long as gold continues to leave the country, instead of goods and services, then the gold price must be hiked further, until the outflow of gold is stemmed and no gold leaves the country (because foreigners find American products more attractive than high-priced gold).
If gold pours into the country, then the price of gold in dollars is too high and American exports are too cheap. The price of gold will be trimmed down, until the movement of gold is practically nil, with exports paying for the mass of imports.
The result of this measure will be an immediate rebirth of manufacturing in the US, with a return to full employment and prosperity.
The only solution for the dire circumstances of the US is a return to gold as the international money on the part of the US.
Let me make it perfectly clear: This solution – which is the only solution – will absolutely wreck the whole financial system of the US, without a doubt.
What is more important:
The recovery of the US as a productive powerhouse, employing millions of Americans in reborn industries?
Or keeping alive a rotten, insolvent, bankrupt and corrupt financial system?
Do you want an America that is alive, working and prospering at work?
Or do you want to continue in the present situation of decay and eventual collapse, which is inevitable if the solution is not applied?
Yes, the financial system has to go down the tubes. The National Debt and its 16.8 Trillions will be cut to about 1/7 of its present weight.
In exchange, Americans get life and opportunity; a way out of this miserable situation, which will become impossible sooner or later anyway.
This is the meaning of gold at $10,000 dollars per ounce for the average American:
A reborn US, bursting with opportunity and jobs for everyone.
If you haven’t read this article I would highly recommend it. DT
The sting has back fired, Asians make the goods and America sits on it’s duff and prints the money, now they have the gold, the manufacturing plants and America has butt pain. DT
A reborn economy, as I have said many times is the only answer!
Big Al
I can listen to John Embryevery day of the week and three times on Sunday.
Yes Marc, very good reminder. We need to stay focus and keep the big picture in mind. Once the $ is not the reserve currency it will crash. We are getting closer to that day.
Paul L …Super Good article, thanks for posting it.
Ditto Paul
Daniel Baker A major reason Paul never seems to exanpd beyond his fan base is that his fellow Republicans routinely slaughter him in the debates. He has to be the worst debater the libertarian wing of the party has ever put forward: confused, off topic, unable to directly answer even the most easily answerable barbs thrown at him. Anyone from the editorial board of Reason magazine could outperform him on the podium.
All drama and no substance in that article, Dennis. It was a fluff piece designed to rally the troops and the conclusions are dead wrong while the data is totally misinterpreted. Course if you want to go into battle on the basis of what was written there then feel free but I will suggest it is a mistake. Precious metals are still in a declining trend and the bloodletting is not yet over. Gold senses the indecision and is trading in a tight range. I fully expect a breakdown once enough buyers have been roped into believing we are on the verge of a massive rally.
That is when they will stick in a fork and confirm the downward trend line.
Don’t be surprised when it happens this time.
Oh look…..Gold just tanked by 3% and hit 1425. Silver did a virtually parallel fall.
I told you guys. Why did you doubt me?
The thing is that this is not really about suppressing gold at all. It is about squashing the extremists in the gold camp and taking their money. The power behind the scenes wants that gold too and bit by bit they are getting it. All of it if possible.
When the goal is achieved then metals will rise. Nobody wants to miss out on a great rally. There is an expression that describes what is about to happen perfectly……”If life hands you lemons, then make lemonade”. Which is another way of saying that if the plan backfires you can still make a truckload of money on the trade.
See that’s the thing. Nobody really overplayed their hand. They played it perfectly actually. Next time gold rises both the miners and most of the metals will be firmly in the hands of those who covet them. The rally will be missed by almost everyone else who got burned these past two years and is reluctant to step back into the game.
Until it is too late of course. Checkmate.
And that is how it works.
Gold price is determined by paper trading and physical demand has not had much to do with gold prices.
Unless your a miner yourself, & is there really that small amount of gold out there OR perhaps tons of gold that nobody knows about because they don`t have a chemical process to extract it as of now in the general population of the average gold miners. Virgin gold, gold that hasn`t been mined, because they don`t know its there. What would these smart elite do then……go fishing or commit suicide……gold hiding in plain sight…….what came 1st the chicken or the egg, but what happened to the egg = the salts of the earth
Paul L, just read what you said, I was writing unknowing that you have written what you have. Yes that`s it. The futures market in paper is what`s been controlling the price of the physical. The disconnect for paper is coming, when it occurs the present demand for the real McCoy, ie. physical gold/silver will boom.
BIRD MAN………………PRIDE COMETH BEFORE THE FALL…..,,,that means,,it looks like one man’s misfortune,,,,is about to change…… …..gold going higher,,,,if it is not going down,,,,it must he going up………………….ha,ha……thanks…have a wonderful day …..
Until investors finally wake-up and just turn lose of the paper, the disconnect will take place. Holding on to the fake gold paper tiger, is what`s pushing down the present prices of `gold`, be it physical or paper. Unless you put down that live power line in your hand, you will certainly die.
that is ok ,,,,,the paper ,,,will still be paper,,,,and not worth what is not printed on….gerold cellente……….2001
I just like the invaluable deitals you offer you as part of your reports.I’ll bookmark your site and check once again here often.I am rather confident I’ll know a good deal of new stuff suitable right here! Very good luck for the subsequent!
Again In my Openion
Keep enough Silver to barter with for a couple of years, and the rest in Gold as your main saviings.
Dutch
DUTCH…………….save enough silver,to get the solar panals installed on your roof ,,before they shut off the electric………….plus ,,you can run the rain water over the silver,,and it is potable…(drinkable)……………ootb
oh,,,,,,then you can sell some electric and water to your neighbor….
don’t forget the dog food to have your installation protected…
dogs love veggies…………….grow and recycle…………but,,wake the dog,at the park..
I mean…..walk the dog…….I am not yet awake……………
impeach………………….I was wondering if you could steer our new committee on IMPEACH OBAMA………………,DENNIS, says it would be a good idea…………what you say……………….ootb
Sorry, Jerry, I dread committees. When reading the comments at the dailybell, on the Fekete piece on gold backwardation and the Tacoma bridge, I thought how lucky we’d be if the B0bummer dog were to become the only casualty of the events unfolding. Evil has advanced, the people don’t seem to defend their Constitution, impeachment now seems like a quaint historical concept. For now, more prepping, and estimating when and where the fun on the rollercoaster bridge (all-time highs, yeah, bottom called, yippiee, derivatives freak farm opportunites, wow) will suddenly slide into a partial collapse seems like the better idea.
impeach…………..thanks for the quick response………I am sorry,,,that you have decide to reject the offer……I must now tell you that the salary was quite substantial……..oh,well……btw…………do you mind if we continue to use IMPEACH AS OUR campaign slogan…………….ootb
That happens to e where we are Dutch.
Another brilliant session. Thanks Al
Snip from a short article posted on Feb 20/13.
Quote:
“In August 2007, gold mining shares were hated even by long-term bulls because they were not participating in the global equity rally to new all-time highs. Then by March 2008, gold mining shares were media darlings. Imagine gold at two thousand U.S. dollars per troy ounce, and remember how an extreme of sentiment in one direction can easily transform into a similar extreme in the opposite direction.
“Gold mining shares often complete important bottoms prior to other equities. Most investors will do their heaviest selling when they should be buying, and vice versa. Such is the present scenario. Buy high, sell low.
“Because gold mining shares have become so oversold, they are likely to rebound merely to regain their previous already undervalued levels, which will then put them on the radar of momentum players, chartists, and many fund managers that buy anything which is showing upward momentum, regardless of circumstances.
“Buying gold mining shares at current valuations is most likely the easiest trade of the first half of 2013!” ~end quote.
http://www.etftradeadvisor.com/trendwatch/2013/02/our-thoughts-on-gold-mining-etfs/
The above is just as relevant today as it was 3 months ago; however, as I’ve been doing nothing and still hold my desired allocation, I’m happy to wait for a retest of April’s lows.
Thanks Irwin,
I needed your reminder amidst all the noise that John Embry’s session seems to have released. There’s a lot to be said for not being too clever, given that JE and Al’s clarity of insight make perfect sense for one such as myself! Too much babble (like the old Tower of Babel from where we get the word) can only do our heads in, if not distract us altogether from why any of us got into PMs in the first place.
Best, Andrew
Hi Andrew,
Can be a full-time job filtering out the “Babel”, so I usually have something lively within clicking distance.
For one and all .. The Whites : Keep On The Sunny Side
http://www.youtube.com/watch?v=rf8RGhSZmfU
Thanks very much Irwin.
Amongst others you’ve introduced me to Chalee Tennison and her magnificent Go Back. Truly great antidote to all the treachery out there!
Andrew
Thanks again, Andrew
You are amazed why people want to hold $ without any return. Because that is all they know. The vast majority of people today have been brought up in an electronic society with electronic transactions and paper bills. Can you blame them? Gold was their grandfathers generation. Many things that are taken for granted as being normal are simply so because that is how everyone is doing it and how they remember it always being. It really is ridiculous if you think about it. I go to a restaurant, have a great meal and at the end of the dinner hand over some paper with green writing on it and it is completely acceptable. Seems very strange to me. Just like little children get on yellow buses in the morning and go off to some building where strangers mold them into societies children. This is all normal. Was this normal two hundred years ago? Three hundred years ago? Today nobody gives it a second thought. People hold paper $ because that’s all they know. They need to seek and search out gold. They need to educate themselves. The crowd will always be wrong. Why? What does Jesus say in Matthew 7:13-14 wide is the gate, and broad is the way that leadeth to destruction, straight is the gate and narrow is the way that leadeth to eternal life,came few there be that find it. You have to find it! Not just go with the crowd. Same reason the favorite at the racetrack only wins 33% of the time. Season in, season out. Any track. Any horse. Any time. The public is always wrong 2 out of 3 times. Doesn’t matter how good the favorite looks. That statistic never varies decade after decade. Explain that to me! The public is always wrong. They miss the wedding and show up at the funeral. Same with gold. The late comers are taking a beating and will continue to do so. Is China the answer? I don’t know. But if Confucius was still around he would probably say a bird in hand is worth two in the bush.