The Doc: “We will go to bed with Gold at $1,500 and wake up with it $4,000 bid…and nothing offered“- Reg Howe
This quote by Mr. Howe sounds crazy. It sounds impossible and
sounds like the rantings of a raving lunatic right? Well, no it
doesn’t. Actually, I believe that something resembling this will not
only happen but has to happen. Logically, mathematically and just pure structurally an event very similar is locked, loaded ready for the trigger to be pulled.
Submitted By Bill Holter, Miles Franklin Ltd,:
“We will go to bed with Gold at $1,500 and wake up with it $4,000
bid…and nothing offered”- Reg Howe (many of you know him, some of you
don’t but we all owe him a debt of gratitude). This quote by Mr. Howe
sounds crazy. It sounds impossible and sounds like the rantings of a
raving lunatic right? Well, no it doesn’t. Actually, I believe that
something resembling this will not only happen but has to happen.
Logically, mathematically and just pure structurally an event very
similar is locked, loaded ready for the trigger to be pulled. But how
can I say this?
All you have to do is look at the supply and demand of both Gold
and Silver.
We know now that “new” supply has not met demand for years, at least 20. We know from export data from the U.S. (courtesy of detective work by Eric Sprott) that 4,500 tons of Gold has been exported from U.S shores since the mid ’90′s and that just the first 2 months of this year 130 tons were exported (courtesy of Harvey Organ’s detective work). But how can this even be? The U.S. only produces just under 250 tons of Gold per year. How could we have exported 130 tons in Jan. and Feb. if our mines only produced 40 tons? How could we have exported 4,500 tons over the years if we only produce 240 tons per year? We know that the mint uses Gold, jewelry has been produced each and every year and so has industry for various applications. So how is this possible?
We know now that “new” supply has not met demand for years, at least 20. We know from export data from the U.S. (courtesy of detective work by Eric Sprott) that 4,500 tons of Gold has been exported from U.S shores since the mid ’90′s and that just the first 2 months of this year 130 tons were exported (courtesy of Harvey Organ’s detective work). But how can this even be? The U.S. only produces just under 250 tons of Gold per year. How could we have exported 130 tons in Jan. and Feb. if our mines only produced 40 tons? How could we have exported 4,500 tons over the years if we only produce 240 tons per year? We know that the mint uses Gold, jewelry has been produced each and every year and so has industry for various applications. So how is this possible?
Where did the Gold that we know was used and are told was exported
come from if the “total” is far and beyond what we produce…every single
year?
Let me backtrack just a little bit. We are also seeing big
movements of inventory reportings. The COMEX has been bleeding down
both Gold and Silver inventories as have the ETF’s GLD and SLV.
Deliveries are being made and inventories are declining at the same time
that we are being “told” that no one wants Gold or Silver based on
their price actions. We are being told that they are THE most hated http://www.zerohedge.com/news/ 2013-05-18/it%E2%80%99s- official-gold-now-most-hated- asset-class investments
on the planet and the prices are crashing. But why then are physical
prices trading above the paper prices and who in their right mind would
be taking deliveries? …And “why” would they be taking deliveries in
such big portions?
Add to the above the anecdotal evidence from India that they are
now only getting 10% of their orders or the Shanghai exchange making
huge deliveries through April and now in May they have delivered almost
nothing. Huge demand in China, India, Dubai and the UAE, throughout
Europe and in the U.S, did I forget anyone? Or what about ABN Amro
informing their customers that “no more physical deliveries will be
made”? Why are there premiums to get the real thing instead of just
being “happy” with paper receipts? Why did Germany ask for their Gold
back and why are the Swiss doing a referendum on the same? There are
many more pieces to this puzzle but you get the gist, something really
weird (fraudulent) is going on here because the numbers don’t (have not
for years) add up and there are huge movements of inventories in the
face of exploding demand (and crashing prices) all over the world.
Something big, REALLY big is happening behind the scenes that we
are not “privy” to but…you don’t have to be a rocket scientist to know
where this s going. As I started this piece with a quote from Reg Howe
“you will go to bed with Gold at $1,500 and wake up with it bid at
$4,000 and none offered”. The point is this, something has and is
changing with the supply demand situation in the precious metals. We
know that demand has exploded, inventories are being drawn down and that
investor appetite is to have the metal delivered, no more “I think I’ll
just leave it with my ‘trusted’ custodian”. No, it is now cash and
carry and many of those who had previously purchased are only now
getting around to the “carry” part.
So, in case you were wondering what the “answers” are and what
exactly has changed I will tell you that only the “insiders” know for
sure. Well, that’s not exactly correct but the “insiders” have
apparently seen the bottom of the barrel with their own eyes. “We” on
the other hand can only deduce and logically “know for sure” based on
all of the evidence. I think that it is safe to say that the game is
coming to an end. The U.S. who has acted as “custodian” for much of
the world’s Gold since WWII is running out of Gold to deliver. Sadly,
if you put all of the numbers together on a piece of paper you can
deduce that we are probably not only running out of our own Gold…but
also Gold that we were entrusted with as custodian.
I will leave you with this one thought. I’m sure that you have
heard about the toilet paper shortage in Venezuela. What do you suppose
the value of one roll of tp is worth to a Venezuelan? …And if the
government fails to obtain more like they say they will, what then?
What would the value of one roll be then? $5? $10? 50 DOLLARS? Or…to
someone who is rich, really rich, could a roll of toilet paper really
be worth $100? Good questions huh? Wait, not really, the real question
is whether someone would part with their last roll of toilet paper for
100 U.S. American Dollars! Now ask yourself, “in a financial system
that is collapsing where banks are closed and ATM’s and credit cards no
longer work…would you sell 1 ounce of Gold for $4,000? Or will that
maybe be the bid but…”none offered”? Regards, Bill H.
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