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WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!

 
THE WTF GUY !!
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10/14/2008 09:41 PM
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WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
hiding

[link to seekingalpha.com]

Bullion Shortage and Spot Prices Tell Two Different Gold Stories
by: The Prudent Investor October 13, 2008 | about stocks: GLD
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Having blogged earlier on a physical silver shortage and the drying up of gold bullion purchases, recent events in the precious metals markets justify an update that again arrives at the conclusion that last Friday's silver and gold price plunge on COMEX has pretty little to do with the actual physical investment demand for gold and silver. Tim Iacono had a good post with the headline "Gold prices getting fishier and fishier," that does away with the myth that the US mint faces unprecedented demand. I stumbled across several more reports that show the ongoing dichotomy between official spot or futures prices and premiums actually paid by investors, if they can get their coins or bars at all.



The British Evening Standard ran a story over the weekend that said demand in Germany had grown 10-fold and dealers were not taking any more orders:

German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future.

"The demand exceeds our capacities by a great deal," said Heiko Ganss, head of precious metal company Pro Aurum.

"The requests cannot be satisfied right now," a dealer from the Düsseldorf WGZ Bank confirmed.

"Demand for gold as a conservative investment has risen dramatically," said Stephan Henkel. "right now the demand is about 10 times as high as in normal times."

Gold deliveries now take between four and six weeks.

This was confirmed by the Berlin daily Tagesspiegel, which reported in a very insightful article that German gold dealer Pro Aurum has closed its mail-order business due to demand never seen before.

One reportedly has to wait four weeks to take delivery of one kilo gold bars.

Physically backed gold ETF (Exchange Traded Commodities) see heydays as well, according to a story at investigate:

Physically-backed gold ETCs saw $93m of net inflows, equivalent to 106,000 ounces of gold, in the six business days up to October 6, the largest weekly increase during the past 10 weeks, while silver also saw net inflows.

Despite a fall in gold prices last week, the ETHICs' total assets reached $4.5bn, equivalent to 5,340,000 ounces. So far this year the products have seen $992m in inflows, equivalent to 1,530,000 ounces, an increase of 30%.

ETFS Physical Silver experienced a net inflow over the six-day period of USD7m, an increase of 4% or 1,194,729 ounces. Over the past six weeks, the product's volume of silver has increased by 25% to 12.8 million ounces, the highest level since January 30, and its total assets to $141m.

The new gold rush has also taken grip of Dubai's gold market. According to a report from ameinfo:

We have a similar rush in the souks of Dubai. Gold coins are selling at the highest premiums to spot gold price in 30 years, and stocks are running out.

In silver the premium paid for bullion bars is up to 50% above the spot price as dealers are running low and demand remains very strong.

Vietnam saw gold rising strongly last Saturday too. From Vietnam News:

Domestic gold prices increased strongly here yesterday, rising by VND50,000 to between VND17.90 million and VND18.10 million a tale yesterday as the world share situation became more chaotic.

Nguyen Huu Dang, head of the business department of the Ha Noi-based Bao Tin Minh Chau Jewellery Co, said his shop was full of sellers because of the big profits.

Bloomberg fills in the gaps on the world map, reporting excessively strong demand in more places. In Australia:

The Perth Mint, producer of 10 percent of the world's bullion, doubled output in the past six months, joining a global push to boost production as investors seek protection from the credit crisis.

Perth Mint sold so-called Kangaroo and Nugget coins weighing a total of 62,630 ounces in the three months to Sept. 30, compared with 154,501 ounces for the 12 months to June 30, senior manager Bron Suchecki said in an interview from Perth, Australia yesterday, adding there's been a surge in "moms and dads'' buying over the counter in the past three months.

"It's reflecting a real breakdown in trust in financial products,'' Suchecki said at the mint. "People aren't thinking how do I grow my wealth' but 'how do I protect it."

The shortages don't stop there, reported Bloomberg. In Austria, Muenze Oesterreich, producer of gold and silver philharmonics has added a third shift.

Muenze Oesterreich, which makes the world's second highest- selling gold coin, increased output of the Philharmonic almost fourfold and doubled production of gold bars in the past year, Vienna-based Marketing Director Kerry Tattersall said yesterday. The 800-year-old mint, located in a former Habsburg palace, has also added a third work shift to press more coins.

The US Mint announced already a week ago that it would expand its production after gold coins have been suspended from sale quite many times since one year.

Now can someone tell me why gold is always falling ahead of the US trading session? Dan Norcini offers daily insights, alleging gold price manipulation for quite some time. Check out his daily commentary jsmineset.com.
Anonymous Coward
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10/14/2008 09:54 PM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
bump
floydian slip

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10/14/2008 09:57 PM
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ebay is the real gauge of market price

Thread: Silver = $25.43/oz.
Anonymous Coward
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10/14/2008 09:59 PM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
Could someone please explain exactly how TPTB keep Gold and Silver from escalating?
floydian slip

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10/14/2008 10:07 PM
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Could someone please explain exactly how TPTB keep Gold and Silver from escalating?
 Quoting: Anonymous Coward 381949


That is a good question. If we knew the answer we could make money money, make money money!!
Anonymous Coward
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10/14/2008 10:16 PM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
"Demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future"

gold charts move just slighly up and down => Metals Shortage And Spot Price Complete Disconnect

so even if you sell now: forget the "official" prices -> THE SELLER sets the price
Anonymous Coward
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10/14/2008 10:22 PM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
Could someone please explain exactly how TPTB keep Gold and Silver from escalating?


That is a good question. If we knew the answer we could make money money, make money money!!
 Quoting: floydian slip


There is over 100 times more paper silver shorted into the comex silver market than there is silver in the world.. that is how. If they are ever made to cover they are screwed.
von doom
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10/14/2008 10:23 PM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
interesting to think about is this: currency in this country used to be backed by the value of gold

gold in this country is now, as has been for 35 years, valued in fiat dollars.

so what has more value, gold measured in fiat dollars or dollars not measurable in gold?
Anonymous Coward
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10/14/2008 10:30 PM
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Agree. My brother is trying to buy gold and the dealer is out.
Anonymous Coward
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10/14/2008 10:30 PM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
yeah good question...

if the imaginary dollar collapses how do you want to meassure the value of gold?

...ok I give you one apple for your 3 ounces?
Anonymous Coward (OP)
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10/15/2008 12:22 AM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
Could someone please explain exactly how TPTB keep Gold and Silver from escalating?
 Quoting: Anonymous Coward 381949



Short selling !!
Short selling !!
Short selling !!
[link to www.investmentrarities.com]

hiding
Anonymous Coward (OP)
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10/15/2008 12:29 AM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
Could someone please explain exactly how TPTB keep Gold and Silver from escalating?


That is a good question. If we knew the answer we could make money money, make money money!!
 Quoting: floydian slip


Its not that difficult , when Market Masters had to cover their short positions then Bump !! Game over !!
The time is near ...price is right ... shortage already began ...demand is high ...supply is tight ....tic tac

[link to www.investmentrarities.com]
Anonymous Coward
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10/15/2008 12:40 AM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
Could someone please explain exactly how TPTB keep Gold and Silver from escalating?


That is a good question. If we knew the answer we could make money money, make money money!!


There is over 100 times more paper silver shorted into the comex silver market than there is silver in the world.. that is how. If they are ever made to cover they are screwed.
 Quoting: Anonymous Coward 526398


Sorry, forgive my stupidity, could you elaborate? I'm still not understanding that.
Anonymous Coward
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10/15/2008 05:43 AM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
There is over 100 times more paper silver shorted into the comex silver market than there is silver in the world.. that is how. If they are ever made to cover they are screwed.
-----------------
Sorry, forgive my stupidity, could you elaborate? I'm still not understanding that.
 Quoting: Anonymous Coward 381949


There are more paper contracts than there is material silver. If the buyers of these contracts decided to take delivery, the sellers (COMEX) have no actual silver to deliver. In other words, they are selling non-existant silver or gold. It's a money-making scheme.
.
Anonymous Coward (OP)
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10/19/2008 06:46 PM
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Re: WTF !! WTF !! GOLD / SILVER BULLION SHORTAGE , SPOT PRICES DISCONNECTED FROM PAPER PRICES !!
Could someone please explain exactly how TPTB keep Gold and Silver from escalating?


That is a good question. If we knew the answer we could make money money, make money money!!


There is over 100 times more paper silver shorted into the comex silver market than there is silver in the world.. that is how. If they are ever made to cover they are screwed.


Sorry, forgive my stupidity, could you elaborate? I'm still not understanding that.
 Quoting: Anonymous Coward 381949



You must be young and stupid and Its Ok: no your fault !!

Let me explain the easy way : apples !!

Imagine for a sec , you sold to your friends 100 apples but instead of an physical real apple you gave a certificate promise paper promising to deliver later but you only got one apple in your stock .
At one point when they asked for delivering their apples : game over, you will default !!





GLP