Q: I have two questions for your Q&A day on Wednesday. If one buys a gold future and takes delivery can it be delivered to Miles Franklin for storage? As well, do you sell annuities or manage trust funds?
Andy Schectman’s Answer:
Answering the second question first, although we understand them, we do not sell annuities or manage trust funds.
We can however store for you at Brinks Montreal a Comex delivered gold bar.
With that being said, you would be far better off purchasing 100 one ounce gold bullion coins or one ounce gold bars and not crossing over the penny wise pound foolish threshold with a 100 ounce gold bar.
If you already have a Comex gold bar, we can easily bring you back over that penny wise pound foolish threshold and assist you in making a “like for like” exchange into one ounce gold bars or coins.
Whether you are playing poker, driving on a crowded highway, living life or simply buying gold you can never have too many outs, too many options or too much flexibility.
Taking possession of a 100 ounce Comex gold bar drastically diminishes both your flexibility and liquidity, and In this example by a factor of 100.
Thank you for you Question Joan, please feel free to call me directly with any further questions. 800-255-1129 or firstname.lastname@example.org
Q: I have a question for your Q&A day on Wednesday.
Could you explain WHY many analysts are so afraid of the large short positions held by the Commercials as recorded in COT and BPR data? The price of Gold has risen despite the short selling so it seems to me that the only thing the Commercials can do is keep on shorting even more to try to depress priced further. But if the momentum is against them, isn’t that a dangerous strategy as they may be forced to cover massive short positions at much higher prices? What am I missing?
Philip in Bali
Bill Holter’s Answer:
You’re not missing anything Philip, this is what is meant by a “commercial signal failure”. Yes, this past month saw gold go higher while the commercials shorted in massive amounts. In the past when this happened, gold would eventually be put back into the box and all was well. Now, China will import over 250 tons for the month of January. This annualized is over 3,000 tons while the world (ex China and Russia) will produce only 2,400 tons or maybe less. The COMEX currently states they have a whopping 23 tons of gold available to deliver. Stepping back to look at this, the COMEX has less than 1/10th the amount of gold that China is importing EACH MONTH! Talk about an emaciated tail wagging a very big dog! COMEX will be overrun.
Q: Gold is manipulated down to make the dollar appear strong. If the fed wants inflation, a weaker dollar would help get it, so why don’t TPTB let gold rise to just the right point to weaken the dollar a bit and take the next step in the great currency war, improve our export position, create jobs by raise inflation etc. if they believe in their inflationary cure? Speaking of the inflationary cure, if we look at shadow stats they suggest actual inflation calculated the old fashion 1970s way is actually at 8 to 10% rather than 2 or 3%… Now the Keynesians of yore used the old 1970 s method when they thought up their inflationary cure beliefs, so why doesn’t someone point out that inflation should have cured the problems in our economy already if their theory is correct?
Andy Hoffman’s Answer:
It’s not about a “strong dollar,” or even a “weak dollar” at this point. Sure, Treasury Secretary’s for years used the Robert Rubin coined “strong dollar policy” as a mantra; but once the economy got weak enough – permanently so – they stopped using that term for political reasons. As you certainly can’t accuse China of suppressing their currency, when your supposed mantra is to have a “strong dollar.” Of course, the “strong dollar policy” consisted simply of surreptitiously suppressing gold; not so much to make the dollar appear “strong,” but to prevent people from growing fearful of the dying fiat Ponzi scheme. And not just the dollar, but all currencies. And even the government economic morons know a weak dollar doesn’t yield jobs; as if it did, the Japanese would at some point have gained some from 25 years of money printing – let alone, two years of Abenomics.
The key point is that nothing can be done to save the dying system; and thus, “weak” or “strong” against other currencies, the U.S. economy has nowhere to go but down. It is terminally cancer-ridden with debt, and has permanently lost manufacturing market share to cheaper, more efficient economies that will never come back. Plus, at this point it’s quite clear that all aspects of Keynesianism were pure hokum. Thus, all the government/Fed/Wall Street want at this point is to influence perception enough – via market manipulation and propaganda – to kick the can as far as possible; and thus, maintain a status quo in which they are the 1% – to heck with everyone else.