-- Published: Thursday, 19 February 2015 | Print | Disqus
The ongoing war between Martin Armstrong and all 10, 20, maybe 40 gold promoters probably needs some perspective.
Every day on CNBC or Bloomberg you get at least 50 people a day promoting stocks or bonds. You may have someone promote gold once a week. Bears are at an all-time low in stocks. Margin debt is unimaginable and valuations are indefensible on any metric. As for gold, here is what we know about gold.
Look back less than a decade and you will all remember the mantra was “Buy what China is buying!” That mantra disappeared from the airwaves as CHINA’S DEMAND FOR GOLD EXPLODED. I defy anyone to find me a clip on either CNBC or Bloomberg that shows what is actually happening to demand for gold in China using SGE withdrawals. The demand for gold is simply on fire in China right now and it gets ZERO airtime anywhere in business television.
The 2015 run rate for Chinese gold demand eclipses all annual mine supply and then some. That is news that is not spoken of anywhere in the mainstream media. It is precisely the opposite of what is occurring in oil. The issue that needs exploring is supply. Paper versus physical is a side-show. The number one issue is where is the gold coming from to satiate the world’s demand for it. Is it CB leasing? If so it has to show up somewhere on export numbers does it not? We have documented previously that the Washington Agreement is pointless, as no gold has been sold since the dollar bottomed.
Somebody is selling gold in massive quantities and no one knows about it. Yet, there should be a paper trail somewhere but I know of no one that has documented it. What will happen when word finally does get out?
If we take China’s current run rate and make it quarterly, they are on pace to buy $33.5B worth of gold this quarter. That seems substantial but in context it is paltry. The week of February 9, the US Government issued $64B in debt without a hitch. Apple had revenues of $74B last quarter. If the populace ever came around to doubting the soundness of government money there is nowhere near enough gold to go around. So don’t look for the real numbers in gold to ever hit the airwaves ever again. Governments and their agent banks cannot afford it.
It’s a Mystery
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-- Published: Thursday, 19 February 2015 | E-Mail | Print | Source: GoldSeek.com