The following startling information was sent to me by my friend Ken. Thanks, Ken for digging this up for me. Bill Holter verified that the information is true!
State of TX follows NY lead, releases map of gun owners
Bloomberg’s headline on Friday morning – “Gold Falls as Strengthening Dollar Encourages Investors to Sell.” Gold is down $7.30 coming into New York. So just how much did the dollar gain? It’s up a whopping 0.09 to 79.84, which is a gain of 0.001%, which in plain English ain’t didly! This is typical of the lame MSM analysis of the gold and silver market. They never give you the right answers. They always avoid the obvious – the manipulation by JPMorgan, who controls the majority of the short positions on the COMEX. It would require a bit of 774 tonnes of silver to cover the entire SLV short position… more than twelve days of world silver production. In gold, the amount required to cover all short positions is 49.0 tonnes, about seven days of world gold production. That, my friends, is what’s happening. That’s the reason gold (and silver) are being held down, not some ridiculous “rise” in the dollar.
Julian Philips has authored a series of five articles on gold confiscation. To sum up what he says in a few words, there is a good chance that gold will be confiscated and he can show you how to take steps, in advance, to bypass the process. He adds that if he’s wrong, that’s o.k. because you will still have your gold.
All of us at Miles Franklin have given deep thought to the topic of confiscation. We do not buy it! Jim Sinclair’s argument is that as long as China is urging her citizens to buy gold, the West can never confiscate.
I brought the matter up with Sinclair again, this morning and his reply was essentially, don’t waste my time with such prattle. If you are foolish enough to sell your gold because of what he is saying, you deserve the consequences.
I asked Bill Holter and Andy Hoffman to come up with their thoughts on confiscation by Monday. We want to make our position perfectly clear. Frankly, one of the reasons I have my gold stored in a non-bank facility, Brinks, out of the country, in Canada, is to hedge my bets. I am two steps removed for a confiscation that I personally doubt will ever again happen. As long as the dollar is not gold backed, it makes no sense to go there.
But, if the unlikely were to occur, in the very unlikely event that our government issues a recall order, they would want to get the most people possible to comply with the least resistance. Since they can create all the money necessary to acquire it, with a keystroke, it makes sense that they would offer a fair and very high price for the gold – and quite possibly even offer an extra incentive like a provision where no taxes were paid on the gains. This isn’t so far-fetched since many people would be forced to liquidate outside of their own time frame and would face tax consequences that in some cases would not be to their benefit.
If they didn’t make it easy and somewhat fair, many people would flaunt the law and the government would NOT get their hands on the gold they desire.
But all of this is mere conjecture; both the confiscation and my comments as well. Although not likely, it is possible and that is all the more reason to stock up on silver and platinum. That makes sense both as a hedge against gold confiscation and also a sensible way to diversify your gold holdings. Let’s not get too paranoid about this. Phillips’ articles make for interesting reading but if you were to ask long-time gold bugs like Richard Russell and Jim Sinclair what they thought, they would say not to lose any sleep over the subject.
We, at Miles Franklin, still believe in gold and are comfortable selling gold and buying it for our own personal accounts. Remember, just because something is “possible” doesn’t mean it will occur. Things would have to be literally falling apart for this to even be a topic of discussion. Although I am very bearish on the economy and the dollar, I don’t see the world, as we know it, coming crashing down anytime soon. In the last bull market, in the late 70s, even as the dollar was under attack, and gold was going to the moon, there was no mention of confiscation. After Nixon closed the gold window and de-linked the dollar to gold, in August 1971, gold was off the radar screen. Until you see China or the EU announce that they are backing their currencies with gold, there is nothing to concern yourself with. If, however, gold does re-enter the picture as a mandated backing for currency, including the dollar, then that’s a different story. I will re-visit my thinking then, but it won’t happen anytime soon.