TSX:LSG.DB - Post by User
Post by
Majormac79on Aug 23, 2013 8:17pm
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Post# 21694423
Clouds gathering
Clouds gathering
Gone from an atmosphere of expecting lower gold prices, driving them down to the point of physical delivery defaults from 2 European banks. This all leading up to Backwardation of the physical gold market which has lasted 33 consecutive trading days and counting going out over 6 months of future spot prices.
There has only been 2 recent points in history of backwardation one was early 2001-2002 ish and the other 2008 both of which only lasted a couple trading days.
The demand in gold is either we dont have a recovery and everyone will want gold the Western developed world along with the emerging markets or we get a recovery and the emerging market's economy picks up even more allowing them to afford more gold. Either way the demand isnt going away.
The fractional gold reserve system that the Western bankers have fraudulently sold people, paper backed by gold 100 to 1 is one of many large ponzi schemes in the system that have been leveraged to the max. There is over 1 quadrillion dollars of leveraged derivatives in the market which are ALL interest sensitive. When people want to collect saying "show me the money or gold" is when the house of cards falls apart. And like all people at the bottom of the pyramid scheme they lose from investing in something that was never there.