-- Posted Wednesday, 25 November 2009 | | Source: GoldSeek.com
Below are some questions from my dear readers and even dearer subscribers who are so gracious in their questions and statements to me, and have so much patience with my tardiness in responding sometimes, as well as missing the occasional weekly letter. It amazes me how many people write in wondering what’s up and if things are ok if I miss a letter. Thank you very much.
Q. You continue to give the best advice about precious
metals, so I was wondering if you think it is at all
likely that the US has (or has access to) far more gold
than is currently claimed to be in its possession? --
A. Thanks Mike, great question, I only wish I gave the best advice out there. There are many pundits and wise masters whom I am continually learning from and am forever in dept to. But I try.
I am quite sure you are referring to the Yamashita gold in the Philippines. You are likely also referring to European war plundering as well as really any war either public or covert. It’s fact that as countries invade or attempt to influence another country or government the real goal is wealth. Gold is always at the top of that list.
John Perkins has some fascinating books from the front-lines and I recommend them to anybody.
Recently I was channel surfing and ran across the movie “Three Kings” where George Clooney and his band of rogue army personnel find, then steal some gold, through a series of worsening events. It’s a thriller and a Hollywood tale of historical facts that have occurred over and over again and are not recorded in the books of history.
Getting back to the Yamashita gold hoard written about in great detail in Sterling and Peggy Seagrave’s fantastic book “Gold Warriors”. There is supposedly so much gold and other precious metals and gems hidden and booby trapped in the Philippines that it could literally knock the price of gold lower by hundred of dollars overnight.
I recommend the book highly since it’s a fantastic gripping tale with perhaps more fact than we will ever know. For me it was almost as much of a page turner as the “Davinci Code”.
So what if this gold exists?
First, the original owner would surely demand the gold be repatriated. That means no gold would ever see the market and have the chance to influence the price. I doubt the country would consider selling or leasing the rediscovered hoard considering today’s world economy.
Secondly, investor and central bank demand would swallow it up easily. As John Paulson just said he is buying now since there will not be gold to buy in a few years, at least in size or at a price anywhere near today’s prices. It’s gold and silver’s time again. It’s as simple as that.
I am not worried. If this phantom gold is there it will have to be leaked into the market very slowly and cautiously. It will never influence the price. I think the real issue is that the US has far less gold than they let on or account for. GATA has been pounding the table over this for the last decade. I have yet to refute or see anyone refute their evidence. Nobody will debate them because they are right, and backed by real evidence.
I’ll also briefly mention the work done by Rob Kirby lately on possible tungsten filled gold bars. Whether this is true and comes to light is a different story all together but the fact is that gold supply is diminishing and will continue to while investor appetite is growing and scams and schemes will come to light. If tungsten filled bars are indeed circulating it says that the real gold supply is much smaller than I believe. It also says those who hold gold are going to great lengths to keep it by gutting then refilling the gold bars. Or they simply don’t have all the gold claimed and have to cover tungsten with their gold for as long as they can get away with it. If true and publicized gold will soar hundreds of dollars overnight.
Gold and silver are going much higher. Get it while you can.
Q. I just read your patient response to the idiot asking loads of dumb
questions about gold. I am not a 'money market' person - I am just
another nobody, who wanted to know why the UK banks were all failing and
why my tiny life savings were earning no interest anymore. I didn't even
know what 'sub-prime' meant. So I read up on the internet and discovered
how our bankers and politicians have been playing with money like gambling
addicts; throwing debt and credit cards at even the unemployed for years!
I discovered how the Fed hasn't had an independent audit since 1951 and
is run like a private club. I watched J.P. Morgan and Goldman Sachs make
big profits out of all the hand outs they have been given, for FAILING. I
learned why Gordon Brown sold off half of the UK's gold reserves for next
to nothing. So, I'm sitting here in my damp, rented farm cottage and I
know nothing about investing in stocks and shares, so I buy myself some
gold coins. If I am doing that - with no background at all in Markets -
then how many other folk are doing it? Quite a few I would think (like
all those Chinese people who have worked their butts off producing cheap
goods for the spoilt, lazy West). Anyone who understands what
'Quantitative Easing' means is not going to hang on to cash savings!
Even if gold does drop down, I'd rather lose my money in gold than see it
become worthless confetti due to the mad money printing going on. So, I
am the real answer to why gold is going up, i.e. one of the millions of
nobodies who has had to wise up and put their faith in gold and silver
instead of any fiat currency.
We need more folk like you in this world, who tell us the truth!
From a self titled “nobody” in the U.K.
A. Thanks and good for you “Nobody”. I wonder how much time you invested in research before you came to the conclusion to buy physical gold, I surmise that most people don’t have the time and certainly not the inclination to look into these complicated matters. Once you get into it, the facts really do seem to be far to outrageous to believe, but they’re not.
More people will be coming in en masse to physical gold and silver in the years ahead. Whether they revolt when they learn the truth is another matter.
Thank you for your statement. Insights like this help me judge just where we are in this secular bull market. We are a long ways off from the blowoff top I assure you of that. There is still so little interest in gold from what I can tell. People are beginning to learn how to spell it, but have a hard time believing in it and certainly don't understand the proper way to invest in it. This is the basis of the second phase of bull markets which is termed as climbing the wall of worry. You are far more advanced and enlightened than you give yourself credit for.
Q. If the world is coming to an end then what to do with the Gold at that time. Shouldn't we all get back to basics learning agriculture, building thatched houses, storing water. What will we do with the Gold, unfortunately we can't chew it to appease our hunger.
A. Yes, if you believe the world is coming to an end in financial terms then you should focus on farming and learning to be self sufficient. However, physical gold and silver will not disappear and you can use them as bartering tools along with your skill-set and anything you produce.
My personal view is and has been that the US dollar will not be the world’s sole reserve currency. The latest piece of evidence came today as Russia has voiced their desire to diversify into Canadian dollars. I’ve had the view that the Canadian Dollar will perform very well in the future since, while they don’t hold much gold in their reserves, they have a vast array of commodities within the country which essentially backs the currency.
Canada also has a much better monetary policy than the US. Canada is actually trying to pay down their debt! Also, Canadian banking regulations limit speculation which has and still does make them much safer than their US or European counterparts.
What I’ve done.
I moved back to my home country, Canada, from the madness that is Taipei, to a small town in British Columbia, away from any major city or population area that could be targeted for strategic reasons or be engulfed in panic. This was an easy choice since I was burnt out of living is such crowded conditions. I prefer the quiet calm that gives me more time to reflect and think without as many distractions.
I am not a doomsayer, I prefer this lifestyle and now seems to be a great time to get back to it...just in case!
We have very close access to one of the best salmon producing rivers in the world. We can, freeze, and smoke salmon during the summer months. Not only for security reasons, but it’s damn good stuff! Wild vegetables and fruit can either be grown or grow naturally nearby. We like to take advantage of this free, natural, unprocessed or modified food for the same reason as above.
We have a very efficient large wood-stove which we heat our house with. While buying wood is not free, it’s much cheaper than heating with natural gas or electricity and there is really nothing like wood heat. It just feels great. Don’t you get that warm fuzzy feeling when you see an old photo or painting with a roaring fireplace? I do, especially around christmas when the snow is falling outside.
We also have a chainsaw which I use on occasion to get some firewood which surrounds our area and gets me out of the office to get some good exercise. As they say having a wood stove warms the bones not once, but twice. In reality it’s more since you have to cut it load and unload the truck, split it, stack it, then once dry move it into the house. It also gives me a nice chance to get outside with the earphones in and listen to Eric King or Jim Puplava’s great weekly interviews. And heck, you never know if I’ll need the fireplace to burn paper money as the german’s did.
It’s all done for simple piece of mind. I realize most people don’t have the freedom to work from anywhere in the world as long as you have internet, but I do and am very thankful for that. I designed my life that way.
There is much to look into on the subjects above and I hope I have piqued your interest enough for you to do some digging. As I always say, I like to investigate the mild to the wild and usually form an view somewhere in the middle. I do love a good conspiracy story though, and in them usually lies a grain of truth.
On a totally different topic from the perhaps not so wild side, one of the best recent conspiracy theories is the 911 tradgedy. While I may lose some ignorant readers and dear subscribers, I think you owe it to yourself to watch the old video “Loose Change” if you haven't already. At the very least it’s a good documentary and hopefully it will raise some questions and perhaps inspire you to dig further, but more importantly, ask questions and realize not to take everything at face value.
Sorry for the lengthier than planned rant. There’s a lighting storm on the way so I must send this off quickly in case the power goes out. Until we talk again, have a happy Thanksgiving in the U.S. And everywhere, else enjoy gold’s rise rather than a golden turkey.
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-- Posted Wednesday, 25 November 2009 | Digg This Article | Source: GoldSeek.com