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Monday, September 8, 2014

e-gold does not glitter


E-GOLD DOES NOT GLITTER

Electronic gold might not glitter but it is a favorite tool for bankers.  Not because it is wealth but because it is control and power.  How a useless derivative constitutes wealth is a fun and frightful fact we get to soon enough.  Since the advent of modern technologies and fuels there has been more gold mined in the last two centuries than in all of history combined, and by a wide margin.  Just the large fertile strip down in South Africa constitutes 40% of all gold EVER mined ( it is largely played out, now.  The remaining big mine is THREE miles underground and consumes the electricity of a city of forty thousand.  It takes a lot of blown air to ventilate and it takes thousands of tons of ice a day to lower the temperature to tolerable levels.  Interestingly, illegal miners picking at the areas no longer commercially viable must stay down in the old shafts for weeks and even months at a time because of such complex series of tunnels the transport times are too long.  They develop grey skin- a fun filled fact you never read about in relation to fallout shelter stays in fiction ).  Yet, today’s population is fifteen times the solar carrying capacity of pre-industrial economies and even with so much more gold available with that many people the demand is even greater than the new supply.  The price of gold should be much higher.

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China looks to be on her way to being the next gold backed currency.  Gold purchases are high and unrelenting, a strategic move.  China also recently became one of the globes top gold producers ( given the long history of banned mining by every other government, there was a lot of untapped potential compared to other areas ), yet given her long history of production it was a short lived phenomenon that without Mongolian mining would have already been over.  China is not about a single large gold mine but about many smaller ones adding together.  Given that the surge in production is short lived, and given that nationally she is stockpiling physical gold to protect against western manipulation, the price of gold today should be much higher.  Now add in global peaking of production ( still a lot left, and unlike petroleum this gold was always hard to get to and extract, so the stuff still there isn’t any harder to get than it was for the last hundred years.  But the total amount mined is going to decrease ).  This too should be increasing the price of gold.  Increased general demand, increased Chinese strategic demand, general supply contraction.  Gold should be much higher.  Add in the obvious American economic troubles, AND the move away from the Petro-Dollar and gold should be thousands of dollars an ounce, not hundreds ( as in three to five thousand, not thirteen hundred ).  Just to match the price spike in 1980 gold should be $2500-$3k adjusted for inflation.  And the world was in no where near as sorry shape then as it is now.  $3k is low balling the minimum price.

CONTINUED TOMORROW

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12 comments:

  1. Isnt it strange how "speculating" on currencies is federal crime? (Im probably missing something here, feel free to enlighten me)
    -Sumdude

    ReplyDelete
    Replies
    1. If you are rich enough to have a lawyer, almost nothing is a crime

      Delete
  2. SILVER! SILVER! SILVER!

    ReplyDelete
    Replies
    1. Is the physical supply getting better?

      Delete
    2. the local military surplus / sports card / gold and silver shop in my area has all you can afford to lug out at 1.50 over spot price.

      Delete
  3. Yep. almost all the precious metals should be a lot higher given the circumstances. It MUST be being manipulated in some way. When the manipulation ends is when the siezures will begin of publicly held PMs. And the paper stuff will just evaporate.

    ReplyDelete
    Replies
    1. When the manipulation ends, so does the dollar. Economic collapse, so the PM price won't help us at all until a recovery ( or more likely a foreign occupation )

      Delete
    2. I'll happily spend an oz of silver for medical care to save a family members life. Or to pay the taxes to keep our land. Otherwise the metal is just another metal - worth investing in only for those sort of purposes. Oh! and silver is good for its anti-microbial properties.
      Spending the same amount on pure water storage/filtration would probably pay off just as well or better in the long run.

      Delete
    3. Well, not JUST another metal but a store of stable wealth. I agree on the bartering for far more important items, but it is also another form of wealth to pass on to heirs not subject to tax.

      Delete
  4. There is light at the end of the tunnel, for US types.

    Check this out: http://wealthydebates.com/limits-growth-right-new-research-shows-nearing-collapse/

    YKW
    MM

    ReplyDelete
  5. I am actually thinking of buying some wheat!!!! After all the ridicule I have subjected you too over the years I don't think I will mention it when I do. It will look real nice sitting next to my my rice and beans, Spam and tuna and sardines, oh and the 1000 microwavable pizzas! ha ha ha ha ha Keep you powder dry old friend!

    ReplyDelete
    Replies
    1. Glad to hear you are still atop high ground and alive after all the flooding down there. Still not enough water to wash away all the turds infesting his once great state, however.

      Delete

I must moderate-trust me. You don't want to see what happens otherwise. Sometimes it takes awhile to respond as I only check two or three times a day. No N-Bombs, nothing to get me libeled. Otherwise, have at it. If you criticize me, make sure to praise my hair first.