There is potentially no shortage of paper gold hence no need to seriously raise the price. Physical might become another matter but only if sellers demand more for physical than for paper. At some point paper and physical must cease to be fungible with each other. It is the presumed fungibility of paper with physical that allows the market to dictate the price of physical metal. At some point a physical long gold or silver owner has to tell the market that the paper price is not good enough and it needs to be a mass movement. The real deal costs more plain and simple.

Really interesting you said that bb. You see I think it is pretty important that the US is about to become the worlds largest producer of energy. The list or resources there includes oil, gas, processed and refined petroleum products, uranium and a host of energy alternatives which include solar and bio-fuels.

You add it all up and what does it tell you?

What this is saying is that the next currency crisis will demand countries prove they have adequate resources to support a global currency. Secondly that they are a net exporter which means they have the means to pay the bills and cover their debts they create.

This is not idle conjecture. It has long been assumed that the next discussions of what is going to back the global currency system will have a commodities component. But more importantly is that the countries coming to the table have sufficient resources to meet both domestic AND foreign demands. Otherwise a reserve has not so much meaning on the international stage.

For example, China is the worlds largest producer or wheat (or is it canola) but they consume ALL of it themselves. That does not give their currency more depth or reach if they cannot transact in that major commodity except as a buyer. Put another way, when the US was the worlds largest holder of gold it could maintain status as the major currency provider because in principal all its dollars at one time could be traded for that commodity.

That is how banks once functioned under a pure gold standard.

So then, what do you offer if you have no gold or if your gold cannot sufficiently back the money you have created and put into the global economy? The most obvious choice is energy and most specifically oil and gas. It is this little connection between resources and the currency a country hosts that gives us a hint as to why the US has put so much efforts into energy production, energy alternatives and locating new finds.

It might also explain why the Arab nations need to be broken up so as to prevent any one of them from coming to the table as equals. Thus we see armed conflicts and crisis in almost all of the major oil producers in Africa and the Middle East and why we see discord being created where Russian sales to Europe are concerned.

Meanwhile, Israel has located monster finds of gas off its coast, England has apparently discovered one of the largest gas fields on the planet and both Australia and Canada are churning out billions of BTU’s of exportable bitumen, coal, oil, gas and uranium as we speak.

This is all connected. The next discussions about what will stabilize the worlds future currency will revolve around commodities (make that exportable commodities) but it will not be gold playing the starring role. It will be fuels and foods. Like wheat and corn and bananas and chickens and sugar and cheese and so many others.

Center stage will be taken by the energy complex itself. It is why I believe we must focus on that area when diversifying during a period of falling assets or during a period of crisis when equities fall. Oil and gas are the new gold. More particularly, those fields that are located in safe jurisdiction’s. Canada, the US and Australia should be the best of class for safety, dividends and growth even as wars heat up and the economy declines.

There is ALWAYS an outlet for capital when the economy turns down. I think this is it.

https://www.youtube.com/watch?v=wNSe4LHVZJw

Nice theory, Ken, except nobody buys the currency of the eventual loser, and the rest of the world has already figured out the U.S. is going to be the loser of WW3. 5000 years of gold, Ken, or 200 years of U.S.$ ? Har, de-har-har-har. ( and -HAR! ) Keep your U.S. $, though, Ken…. they’re almost as soft as Charmin. ( might leave green stains, but who’ll notice ’em there, right? )

LOST BALL IN HIGH WEEDS…….the dollar is going down just as it has for 100 years….

They are still working. It’s just that the manipulation has forced gold into a likely left translated intermediate cycle.

GOOD VIDEO joseph ! Thank’s . Only the BOSS is no Rothschild no Rockefeller !

We have James Brown’s cape ready for you bird, you just have to kneel down so we can put it on.

BIRDMAN ! EVIL RULE’S https://www.youtube.com/watch?v=7rVFse1LLQs

At this point like I said in the interview it does look like May could turn out to be the three year cycle low.

BTW I think there is a big opportunity in stocks soon. They may have even bottomed today. Oil also is due for a bottom anytime now.

Kitco is corrupt media controlled off on electricity off on day control all ! TV is the worst off all ! by strong !