Gold & Silver News

[alan2102]

Implications of China’s Appetite for Gold

China’s appetite for gold is featured in this post found on the gold-eagle forum, and apparently not available anywhere else (I did some searching on bing and google to verify). This one is worth reading, IMO.

Money quote (pardon pun): China’s dire need to diversify its foreign reserves will propel the price of gold to unprecedented new all-time highs … regardless of what action the US Federal Reserve bank takes in cutting the Fed Funds rate.

Well all RIGHTY then!

It has been obvious for many years. The fundamentals are all in alignment, and grow stronger by the month. As admirably as gold and silver have performed over the last 10 years, the best is clearly yet to come.

—alan2102

…………………………

http://www.gold-eagle.com/cgi-bin/gn/get/forum.html

(Ho_Yen_Tsi) Sep 17, 17:28

Monumental ramifications of China’s necessity to buy gold to diversity foreign reserves

text continues here:
http://alan2102.wordpress.com/2012/09/18/implications-of-chinas-appetite-for-gold/

• Tweet

[Jb]

alan2102,

Thanks for the links. It seems like such a Herculean task for the Chinese to diversify at this point. If the Chinese continue on this path, then I think you're right: 'the present secular bull market in gold is today in its early infant stages.'

• Tweet

[agelbert]

Tungsten-Filled 10 Oz Gold Bar Found In The Middle Of Manhattan's Jewelry District

UH OH...

Details fake gold 1

fake gold 1

Details fake gold 2

fake gold 2

Details fake gold 3

fake gold 3

Details fake gold 4

fake gold 4

Submitted by Tyler Durden on 09/18/2012 20:42 -0400

It is one thing for tungsten-filled gold bars to appear in the UK, or in Germany: after all out of sight, and across the Atlantic, certainly must mean out of mind, and out of the safe. However, when a 10 ounce 999.9 gold bar bearing the stamp of the reputable Swiss Produits Artistiques Métaux Précieux (PAMP, with owner MTP) and a serial number (serial #038892, likely rehypothecated in at least 10 gold ETFs across the world but that's a different story), mysteriously emerges in the heart of the world's jewerly district located on 47th street in Manhattan, things get real quick.

Moments ago, Myfoxny reported that a 10-ounce gold bar costing nearly $18,000 turned out to be a counterfeit. The discovery was made by the dealer Ibrahim Fadl, who bought the PAMP bar in question from a merchant who has sold him real gold before. "But he heard counterfeit gold bars were going around, so he drilled into several of his gold bars worth $100,000 and saw gray tungsten -- not gold. The bar was filled with tungsten, which weighs nearly the same as gold but costs just over a dollar an ounce."

What makes so devious is a real gold bar is purchased with the serial numbers and papers, then it is hollowed out, the gold is sold, the tungsten is put in, then the bar is closed up. That is a sophisticated operation.[/color]

MTB, the Swiss manufacturer of the gold bars, said customers should only buy from a reputable merchant. The problem, he admits, is Ibrahim Fadl is a very reputable merchant.

Raymond Nessim, CEO Manfra, Tordell & Brookes, said he has reported the situation to the FBI and Secret Service.

The Secret Service, which deals with counterfeits, said it is investigating.

And cue panic on the realization that virtually any gold bar in the world, not just those in Europe and Australia, which have already had close encounters with Tungsten substitutes, but also New York may be hollowed out and have a real worth of a few dollars max. Which, sadly, is fitting considering our main story from last night was the realization that an unknown amount of Chinese iron ore had either never existed or had simply vaporized, and was no longer serving as the secured collateral to various liabilities circulating in the electronic ether. After all, only the most naive out there could conceive of gold being sacrosanct when every other asset class is being diluted to infinity by a regime that has long since run out of money.

As for gold-based transactions on West 47th street: look for that market to grind to a halt at least for as long as it takes for this scandal to be forgotten too.
The only open question remaining will be how much of the gold located 90 feet below Libert 33 is in the same Tungstenized format. For what it's worth: it is unlikely we will ever find out.

This is what glaring gold counterfeiting looks like.

And for the reading challenged:

New York News | NYC Breaking News

All that said, with false flags rampant these days, we would not be surprised if this is merely yet another attempt to discredit gold, this time physical, as an undilutable medium of warehousing wealth. So buyer beware: in a time when everyone is broke, triple check before exchanging one store of wealth for another.

http://www.zerohedge.com/news/tungsten-filled-10-oz-gold-bar-found-middle-manhattans-jewelry-district

• Tweet

[RE]

Tungsten-Filled 10 Oz Gold Bar Found In The Middle Of Manhattan's Jewelry District

This is one of the numerous reasons I don't think it is possible to return to a PM standard of any type.

Coin Counterfeiting is actually EASIER to do than Paper Currency counterfeiting, just about anybody can make the Molds in Plaster to do this.  Much harder to make finely engraved Plates printed on Special Paper only Da Goobermint has access to.

With Gold skyrocketing to the MOON here in value, the temptation to Counterfeit is enormous.  How are you going to Test a Coin you buy from a Coin Dealer?  He's not going to let your Drill into the Coin.  With Tungsten so close in Density to Gold, you can't detect the difference with Archimedes Testing.  Unless somebody comes up with a cheap tester that measures Magnetic properties or something like that which might identify the purity of the Coin, the chances it is a Counterfeit grow by the day and until you cut it open you won't know if it is Counterfeit or Real.

Similarly, the idea you could TRUST a Centrally held Gold Horde in either a Private Bank or a Goobermint CB is exceedingly small here.  They can easily Inflate their Gold Paperweight in the Vault by hollowing out a few Bars now and then, and even it you HAD good Auditors who were not on the Take, the bad bars get hidden deep under the pile and don't get sniffed out for quite some time if ever.

Then comes the problem that if indeed the Currency is truly Convertible to Gold (or Silver), who in their right mind would hold onto savings as the Paper Certificate?  You go to the Bank and ask for the Gold Equivalent.  So pretty quick the Horde of Gold held by the Bank is now distributed out, and the Bank holds nothing but PAPER!  Said Bank of course will not remain in Bizness too long after that happens.

One wonders with all these stories coming out here now about Counterfeit Gold Coins how many Gold Bugs are busy Drilling Out their Coins to see if there is a Tungsten Slug inside?  Gotta be a bit worrisome for a Gold Bug.

RE

• Tweet

[g]

Quote from Agelbert's posted article, All that said, with false flags rampant these days, we would not be surprised if this is merely yet another attempt to discredit gold, this time physical, as an undilutable medium of warehousing wealth. So buyer beware: in a time when everyone is broke, triple check before exchanging one store of wealth for another.

That is all it is Diners. Another tactic from the banker filth to keep the dim dim and the brainwashed brainwashed as they turn in the toilet paper they created for you into gold and silver as most of the dim watch with their head up their ass.

I hope there is no one here silly or idiotic enough to think it has been any of the 99% or OWS that has sent gold into its orbit of recent years as they struggle with the USURY and Inflation that their evil bankster filth have bestowed upon them.

"Doing God's Work" is what the bankster dog shit call it.  " Gold Sucks Paper and Credit are Good"  so sayeth my friendly bankster.

They do good work, don't be conned again by them.

Details 1 oz Gold Ox

1 oz Gold Ox

• Tweet

[Surly1]

This above would be another worthy avatar for you, GO!

 

• Tweet

[g]

This above would be another worthy avatar for you, GO!

 

Thanks Surly, Strange you mentioned it , had the same thought, but after the events around here lately, I just hate to join the group that has two faces; pun intended.   

• Tweet

[g]

 Quote Surly "FWIW, this exchange is one of the reasons I come to the Diner and have invested so much tme and effort in it. It is difficult to have a genuinely human exchange in a virtual community, but here it is. The humanity and decency in AG's approach is a model we all ought to emulate. Well done.

Glad to see you back.

And take heart-- some of us are reading, and listening, whether we reply or not."

No truer words ever uttered Surly, Agelbert has fast become one of our treasured posters, a truly outstanding person.

How I laugh to myself when I think of Ilargi beating up on him with his billy club, what a dunce.

Oh God forbid, there is that friggin Censorship topic brought up again. Sorry everybody, it was just a slip of the tongue. No way, it slipped out, please believe me.      

• Tweet

[g]

Sounds reasonable to me.       


U.S. QE3 signals deepening credit crisis: Dagong
English.news.cn   2012-09-28 00:07:21    [RSS]    [Feedback]    [Print]    [Copy URL]    [More]

BEIJING, Sept. 27 (Xinhua) -- China's leading credit rating agency Dagong said Thursday that the third round of quantitative easing implemented by the United States signals the country's deepening credit crisis and dropping solvency.

Dagong Global Credit Rating Co., Ltd. said in a statement commenting on the U.S.'s third round of quantitative easing, also known as the QE3, that the policy cannot promote the country's economic recovery and may further worsen its macroeconomic environment in the mid- and long-terms.

Dagong said the QE3 cannot alleviate the private sector's debt burden in a short time and rid the financial system of excessive liquidity, and, thus, will not serve to provide new impetus for economic growth.

The policy will also weaken the private sector's willingness to save and will drive up international commodity prices, Dagong said.

"It will plunge the country's economy into a long-term recession, create reliance on loose monetary policy and expansionary fiscal policy, and lead to a rising debt burden and increased credit risks," Dagong said.

The open-ended QE3 signals a drop in the country's solvency and has caused the continuous decline in its national credit, it said.

On Sept. 13, the U.S. Federal Reserve announced a new round of bond-buying program and extended the duration of its ultra-low interest rates to bolster the country's weak economic recovery.
Editor: Mu Xuequan

news.xinhuanet.com/english/business/2012-09/28/c_123772151.htm

• Tweet

[Jb]

Agreed; thanks GO.

• Tweet

[g]

Gold perking along nicely huh Jb?  I have never seen a 250 point rally in gold draw so little attention, a very very good sign me thinks. Triple witching Friday today, the markets could get quite crazy.

Gold stocks finally coming to life, strong seasonal influences at work also.   GO

• Tweet

[monsta666]

Any bets that gold will reach $2000 within the next 12 months?

• Tweet

[g]

Any bets that gold will reach $2000 within the next 12 months?

I think it is highly likely Monsta, but what is your point?

• Tweet

[monsta666]

I think it is highly likely Monsta, but what is your point?

It will be a significant landmark since gold has not reached the $2000 mark. There was not a big point to this remark but jumping to $2000 would send a large message that the state of the overall economy is weakening even further. Moreover, if gold rallies and beats inflation year on year investing in gold will become a more mainstream idea that will not be limited to paranoid gold bugs. At least the MSM can no longer use that argument against gold if the price keeps going up. You can argue this wider acceptance of gold is a good thing but this greater acceptance could also get unwanted attention namely through gold counterfeiters. 

In any case what could be interesting is to make a bet on the price of gold for the coming year. The one with the best guess wins a price of some sort?

• Tweet

[g]

I think it is highly likely Monsta, but what is your point?

It will be a significant landmark since gold has not reached the $2000 mark. There was not a big point to this remark but jumping to $2000 would send a large message that the state of the overall economy is weakening even further. Moreover, if gold rallies and beats inflation year on year investing in gold will become a more mainstream idea that will not be limited to paranoid gold bugs. At least the MSM can no longer use that argument against gold if the price keeps going up. You can argue this wider acceptance of gold is a good thing but this greater acceptance could also get unwanted attention namely through gold counterfeiters. 

In any case what could be interesting is to make a bet on the price of gold for the coming year. The one with the best guess wins a price of some sort?

Yes Monstsa, I get your point about the fanfare and attention those round numbers cause in the minds of the simple. Amazing how a move to over 1900 has very little significance to them, but 2000 causes the horns and trumpets to come out.
Will pass on making a bet, have quite a few Quid laid down upon the green felt on real money vs make believe already. It has been a winning bet for forty years in my case and wish to just stay pat for now. GOOD LUCK

• Tweet