-- is a fairy tale. Hamilton writes that central banks are just investors in gold like everyone else.
What Hamilton and most people overlook in analyzing central bank gold sales is that they are a farce that beats the best Monty Python sketches. The central banks have printing presses and now computers that can generate loads of fiat money. It is beyond side-splittingly funny that we should take central banks seriously that they need to sell gold in exchange for the stuff they manufacture for free.
Can you imagine the Saudis selling oil in exchange for sand, or Eskimos selling fish in exchange for ice, or Paul McCartney selling an apartment in London in exchange for a Beatles poster autographed by himself? Yes, you think those examples are funny, don't you? So why not have a big fat laugh at a central bank selling its gold for the funny paper it produces in infinite quantities?
Central banks run the world's biggest Ponzi scheme, issuing bits of paper that people will accept in return for real goods and services. If you enjoyed this privilege to the tune of a few trillion dollars that finance an empire, expending a few tonnes of gold to keep it going would be a no-brainer.
Central banks do not sell gold to get a few billion of their own fiat money in return, money they probably would throw on top of the stack of half a trillion freshly printed notes that rolled off their presses just that morning. No, central banks sell gold to make it appear that the paper stuff is more desirable than its true supply and demand fundamentals would allow. And when the game looks like it's coming to an end, the central banks can always buy back the gold.
It is not a problem to buy back the gold at even $50,000 per ounce when any amount of paper currency can be printed.
What is a big problem is if the currency loses its value so fast that no one will sell the central banks any gold for any amount of paper. (Try buying gold with Zimbabwean dollars.)
If that happens, the central banks lose and the people win, because when the music stops the people have the gold and the central banks are stuck with the depreciating paper.
Central banks have to use their gold to support their Ponzi paper creation, but they have to control the destruction of their currency's purchasing power so they can still buy their gold back with their own paper before the game ends and they have to start a new one.
When the paper currency has little purchasing power left but the central banks have bought back their gold, they can introduce a new currency and start the cycle all over again.
In this way they leverage their gold instead of having something honest like one-for-one backing in a classical gold standard. They have even found ways of having more leverage by selling paper promises for gold to make it look as if they have 10 or 20 times as much gold as they really have.
There is another problem. What if someone else with a large amount of worthless paper currency gets the idea to buy back your gold before you do?
Do you ever wonder why China kept so quiet about the 450-tonne increase in its gold reserve over the last five years? Clearly China would not want to tip off the Western central banks that it was going to beat them at their own game. If China has admitted to acquiring 450 tonnes of gold, it probably has a lot more than that.
This is all about world dominance. Whoever has the most gold is king.
Is it any surprise that GATA has been denied its Freedom of Information Act requests to the Federal Reserve and Treasury Department about the U.S. gold reserve? We asked to see how the magician does his tricks. We have been told that this is a "trade secret." You betcha it's a "trade secret"!
-----
Adrian Douglas is a member of GATA's Board of Directors and publisher of the Market Force Analysis letter ( http://www.MarketForceAnalysis.com ).
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PRECIOUS METALS: Comex Gold Pares Dollar-Inspired Gains 7 minutes ago By Allen Sykora
Of DOW JONES NEWSWIRES
Gold and silver finished higher Tuesday in reaction to dollar weakness, although they trimmed their gains when the greenback recovered some and other commodities fell.
December gold rose $2.30 to $946 an ounce on the Comex division of the New York Mercantile Exchange and traded as high as $956.30. December silver rose 11.5 cents to $14.346 and got as high as $14.46.
"The lower dollar is supportive of the market," said Frank Lesh, broker and futures analyst with FuturePath Trading. "And stable equity markets are good for us also."
Investors often turn to gold as a hedge against dollar weakness. At one time, the metal tended to move inversely to equities, drawing support from the stock meltdown early in the year. But in recent weeks, they have tended to move together depending on the risk appetite of markets generally, in turn often based on how the dollar is faring.
Just before the Comex gold pit closed, the September dollar index was down 0.090 point to 78.240. The Dow industrials were around 50 to 55 points higher.
Still, the dollar pared its loss and equities were down from their highs, which may have played a role in gold's pullback from its peak.
Michael Gross, broker and futures analyst with OptionSellers.com, tied the retreat largely to moves in other commodities.
"The energy sector is getting clobbered and copper is down pretty good, so that is keeping a lid on any gains today," he said. Shortly after he spoke, Nymex October crude oil was $2.61 a barrel weaker, while Comex December copper settled 5.70 cents a pound lower.
When the gold's and silver's early upward momentum waned, they finished with inside days on a chart, in which the highs and lows were contained within the prior session's trading range. "That sets us up for a nice breakout tomorrow technically," said Larry Young, senior trader with Infinity Futures.
Overall, gold volume remained low in quiet summer markets, Lesh said.
"I think that's one of the reasons we're stuck in a range," he said. "It doesn't want to break out either way. The dollar is sort of range-bound as well, albeit with a downward bias."
Volume may not pick up significantly until after the Labor Day holiday, he added.
Lesh pegged support for December gold at $933 and $921. He put resistance at $956 and $958.
Gross pegged his support for December gold at $926.70 and resistance at $974.30. He put support for December silver at $13.53 and resistance at $15.225.
Meanwhile, December palladium gained $3.55 to $290 an ounce and hit a fresh high for the year of $292.70 an ounce. On the surface, the metal's continued strength appears to be a "head-scratcher," especially with the U.S. cash-for-clunkers program ending, said one trader. This has helped demand for platinum group metals in auto catalysts.
Nevertheless, speculative demand remains strong for the metal, with holdings in exchange-traded funds rising for some time now, he said.
Meanwhile, October platinum finished nearly flat - falling just 30 cents to $1,247.80 an ounce. The metal was unable to benefit much from a strike against Impala Platinum Holdings (IMP.JO) at its Rustenburg operations. The trader said market participants had already been anticipating some type of labor conflict and may think it won't last long.
"For now, it seems like the investment side of the market is turning a blind eye to it and not paying much attention to it," he says.
-By Allen Sykora, Dow Jones Newswires; 541-31...; allen.sykora@dowjones.com
ex.... Roxmark plans to reopen the Northern Empire and Leitch/Sand River Gold Mines (the latter once Canada's richest and now 100% owned by RMK to feed its fully permitted, upgraded mill
In addition, the Company will continue to delineate gold resources at other Company-owned properties, both unilaterally and through joint ventures like The Hardrock Project where Premier Gold is enjoying great success as operator 2009 priorities include drilling the rich new structures just identified at the Northern Empire Mine
San Gold options 50% of Strike Point from StrikePoint
2009-09-17 08:43 ET - News Release
Mr. Dale Ginn reports
San Gold Corp. and StrikePoint Gold Inc. have entered into a letter agreement setting forth the terms and conditions of a transaction whereby San Gold can earn a 50-per-cent undivided interest in the Strike Point property that lies adjacent and to the north and northwest of San Gold's mining lease that contains the Rice Lake mine, the Cartwright deposit and the high-grade-gold Hinge mine and Cohiba zones. Pursuant to the letter agreement, the parties have agreed to negotiate a subsequent definitive option agreement.
The letter agreement provides that San Gold shall pay StrikePoint Gold a refundable advance deposit of $150,000 cash upon execution of the letter agreement. In addition, San Gold shall pay StikePoint Gold $50,000 cash on the first anniversary of the execution of the letter agreement and shall conduct $1.5-million in exploration work on the property over three years at a minimum rates of $400,000, $500,000 and $600,000 per year, respectively, to earn a 50-per-cent undivided interest in the Strike Point property. The advance deposit shall be refunded by StrikePoint to San Gold in the event that the option agreement is not executed by Dec. 31, 2009, or such other date that is agreeable to both parties.
StrikePoint Gold will be the operator of the project subject to a standard joint venture operating committee structure. StrikePoint Gold shall have the right to accelerate exploration by spending its own funds and an amount equal to such expenses shall be added to San Gold's work requirement for the year in which they are expended. When San Gold has earned its 50-per-cent interest, both parties shall become working parties, each responsible for 50 per cent of expenditures, subject to standard dilution provisions. San Gold and StrikePoint Gold shall each have 90 days to remedy any shortfall to prevent dilution. Each party to the option agreement shall have a first right of refusal to purchase the other party's interest. San Gold and StrikePoint Gold will agree that no party shall purchase any common shares of the other party without the approval of both boards of directors, during the existence of the option agreement or for a period of two years following the termination of the option agreement or ensuing joint venture agreement. The proposed option agreement between San Gold and StrikePoint Gold is a reviewable transaction as defined in TSX Venture Exchange Policy 5.3 since Richard A. Boulay and Courtney Shearer are directors and officers of StrikePoint Gold and directors of San Gold.
The Strike Point property consists of 26 claims covering 3,595 hectares adjacent to the northwestern boundary of San Gold's Rice Lake gold mine and mill property at Bissett, Man., located a three-hour drive from Winnipeg. During 2008, StrikePoint Gold conducted mapping and prospecting activities on the Strike Point property and added six more claims to the original 20 claims to cover new showings to the north. The Strike Point property is underlain by Archean volcanic rocks that are identical to or similar to the hangingwall volcanic rocks that host San Gold's Hinge and Cohiba zones. As well, an embayment of volcanic rocks extends northward across the regional Wanipigow shear, where it contains mafic volcanics and interbedded iron formations that remain largely unexplored. More importantly, the hangingwall volcanics of the southern part of the Strike Point property contain structural elements that are identical or similar to the structures that host San Gold's Hinge and Cohiba zones. Significantly, the Strike Point property contains the western five kilometres of a 10-kilometre-long faulted fold axis that extends eastward from Horseshoe Lake to the San Gold No. 1 mine. This important 10-kilometre-long structure is considered to be a possible mineralization conduit for the multiple parallel hinge structures on the San Gold mining lease.
During 2008 and early 2009, a new exploration strategy was developed to explore various properties in the central part of the Rice Lake gold belt as well as properties at the distal ends of the belt to the east and west. The new strategy is based on the fact that San Gold's newly discovered high-grade Hinge and Cohiba zones located in the thick hangingwall volcanic sequence consists of pure gold and very sparse associated sulphides lodged in thick, pure quartz veins that intrude highly siliceous volcanic rocks. Consequently, with no geological contrast, the gold-bearing veins are not identifiable using standard magnetic, electromagnetic or resistivity methods. During 2008, it was established that San Gold's high-grade Hinge zone mineralization was structurally controlled. Consequently, StrikePoint Gold and San Gold flew a 580-square-kilometre very-high-resolution LiDAR survey in May, 2009. LiDAR (light detection and ranging) generates large amounts of data in a data "point cloud" from which can be extracted various datasets that can be used for structural information, including very accurate digital elevation models. StrikePoint Gold is currently processing the data for the central part of the belt, primarily the San Gold mine lease and the adjacent Strike Point property. Initial testwork by StrikePoint Gold geologists using initial LiDAR products indicates that the data are effective at delineating detailed structure, even in swampy terrain.
Dale Ginn, San Gold's chief executive officer, stated: "As a result of this joint venture, all of the hangingwall volcanics that host the high-grade Hinge deposits, together with their important structural elements are now accessible to San Gold, at surface as well as possible important western and northern extensions." Richard Boulay, chief executive officer of StrikePoint Gold, noted: "This agreement consolidates the Central Rice Lake belt structural domain that has hosted over 95 per cent of the Rice Lake Belt's recent and historic gold production. San Gold's recent high-grade gold discoveries have greatly expanded the volumetric potential of the Rice Lake sequence stratigraphically upward to incorporate the volcanic rocks of the Strike Point property."
StrikePoint Gold currently has one of its geological teams dedicated to the Strike Point property. San Gold and StrikePoint Gold will immediately convene a technical committee to establish a systematic exploration protocol for the Strike Point property.
Sample LiDAR images can be viewed on the graphical version of this press release. This press release has been reviewed by Mr. Ginn, PGeo, San Gold's qualified person for this project under National Instrument 43-101, and by Daniel A. Beauchamp, BSc, PGeol, StrikePoint Gold's qualified person under National Instrument 43-101.
Goldcorp GG LT chart show a very high performance on NYSE :-)
GG with all dividends and stock splits giving shareholders a new share for each held it has been a LT pleasure ride :-)
I haven't find a better higher performance Gold stock for long term safety :-)
---- Beware: Anyone buying Gold have to do assays on every gold coin, bars etc...it will be lots of extra work for the assays labs.... plus that bolsheviks government confiscated gold in the past - also made it illegal for private persons to hold gold bars, coins etc. the 666bolsheviks only works for elites banksters and not for the people!
I can see gold auditors descending both of our foreign depositories and I can assure you that French authorities are now descending into their vaults beneath the Seine River to conduct assays on every gold brick that they have received in trade with other nations....
is the bolsheviks banksters clowns getting longer fingers for every day? -
Tungsten-Filled Gold Bars Found in Asia Posted November 11th, 2009 by JoeDanger
1. Rumor: GOLD BARS filled with tungsten at major banks -- from mid-October (17th):
“What can I tell you that you don't already know?
They are all scrambling big time since a number of large interests have demanded audits. Independent auditors are NOW descending onto the various vaults to verify, validate and certify.
They can move this as many times in circles as they like to try to fool people.
In an Asian depository they’ve found “Good Delivery” bricks that had been gutted and filled with tungsten.
Soon, there will be xxxx hitting the fan all over place.”
...There are two foreign depositories for gold:
1. Bank of England
2. Bank of NY
There is no doubt that the source of the "tungsten" is the Bank of England.
...In summary, we have learned that the Bank of England had three types of gold in its foreign depository
1. London Good Deilvery bars
2. Gold of Coin Melt (.90000 gold ) received no doubt from Fort Knox
3. Gold bars filled with Tungsten and not .999 gold.(discovered by Chinese owners of gold at a foreign depository)
I can see gold auditors descending both of our foreign depositories and I can assure you that French authorities are now descending into their vaults beneath the Seine River to conduct assays on every gold brick that they have received in trade with other nations. --
NYBOB- "Unhedged", who I love that word on our GG !!
mick, >>gold is in it 8th year of super cycle bull market<< - and has been gov. manipulated since 1934 - the more a commodity is manipulated - the Higher & Longer it will FlY :-)
Do we like to be kicked, laughed at and walked on and spit on, did the 666 enjoyed it - its sad but it maybe so - that's all the 666banksters doing - they done nothing good ever? - please, tell me if You feel that - the 666elites done ever anything good? -
FYI. - fiat dollars & the 666banksters frauds -
Prosperity Money Reformers advocate that the virtual - Monopoly of Money fraud Creation must be removed - from the private banking system and we work - to establish a publicly-created supply of - debt-free money, created on behalf of the people -
Do not let any volatility shake You out - the more volatility the higher it will go -
the new trend waves will often be - Fibonacci - 162% of the previous correction -
when the weak hands exhaust themselves - Silver - price start to turn around - from a 500 year very negative downturn - it made a hardship for all people of ex. Potosi - a Long Term Turn Around is Overdue - http://www.monetary.org/2008schedule.html
we'll see the next waves up -
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt -
Unless the United States gets all of its economic 666 house in order ? -
Gold and Silver will become the basic real money again - (which PM's has been for 1000's of years) and national currencies will only be money - if backed by - Gold.
With the exception only of the periods of -
- The Great Gold Standard -
practically all 666governments of history -
have used their exclusive power to issue fiat money -
to defraud with totalitarian bureaucratic powers - rob, plunder and to make slaves - of most the people -
GOLD POG The more banksters manipulations the HIgher Au FLY :-)
POG from 1980 of $875/oz to 2001 of $255/oz is 20 years of the banksters manipulations -
Central banksters sold off the Peoples GOLD for 20 years - POG from 1980 of $875/oz to 2001 of $255/oz is 20 years of the banksters manipulations - it took our GrandFathers since the viking time and many more wars to fight and to store in the central banks for the people - the people should demand it to be bought back every ounce - the 666banksters of today should all be taken to - The Justice of the people -
GOLD POG 2nd page in the Golden book - to FLY for next 10 years -
Goldcorp (NYSE:GG) (USD) $40.06 UP $0.83 (+2.12% :-) Bid 39.85 Ask 40.11 Volume 9,144,783 Days Range 39.54 - 40.50 Last Trade 3/3/2010 4:10:25 PM Click for detailed quote page
Check out Drudgereport with Citigroup and the bank run that should come with that bank in the next 45 days. Even more bullish on the yellow shiny stuff NYBOB!! by Tim, thanks good info :-)
****
Home ownership to decline, say lenders - ..666-banksters 666-gangsters destroy America - and the Western World Societies -
Bankster Bailouts Of 2008/9 Exceed Over 200 Years Of Major ... 18 Jun 2009 ... I want less government in my life, not more. Shrink it down. ... Check out this misinformation from Bill Maher: ... Bankster Gangsters Says: June 18th, 2009 at 7:17 pm ... Recent conversation during the formation of TARP… ... definition of Bail-OUTS = still from the poor to enhance the banksters ... http://www.prisonplanet.com/bankster-bailouts-of-20089-exceed-over-200-years-of-major-government-spending.html
In his interview, Rogoff confirms his findings that after a banking crisis there is a much higher likelihood of a country default, because government debt is used to bail out banks and others.
The interview says that debt to GDP is a problem at 90% to 100%.
The quick calculation is that the U.S. has $12.5 trillion gross debt growing at $2 trillion per year on GDP of $14.3 trillion. Next year it will be 12.5 + 2 = 14.5 on 14.5 GDP or 100%. We're doomed.
I also found interesting Rogoff’s assertion that, unlike the common perception, the U.S. government has in the past defaulted on its obligations – during the Great Depression when it went off the gold standard, then revalued gold upwards.
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