Oldtent Archives 2007 - 2008

Good to see you back from your trip.  Moggy

….Moose Hunting season at the Tent is OVER !

….shesh .and we were just luring him out of the woods

….but Oh..re Temex and Ian Campbell…………Just tell him I still got al my shares….and that Wave 3 is comming ..and leave the Mooses..(meeses ?)..alone

  What they show on that page is current stock.

  Delivery on the out of stock items.

  That is today’s stuff. it is possible that it could have been sold today. It bothers me though that some would sell physical to raise cash. The paper markets have an impact on psyche even if they aren’t in reality.

  They are also paying a premium for that stuff. So demand has to be strong. Physical is the last thing I will sell.

Good to see you garnering some respect here…..after a “slow” start…

Care to be added to the Locator..?

Shortly ago I posted the following to SilentOne’s Thread at the MexicoMike forums …

>>>>>

Current Weekly = http://xs432.xs.to/xs432/08425…..08_279.jpg
[ Hopefully an up bounce will come soon But it seems difficult
to say what the upside Objective / Limit might be .. ]

from before are
http://xs230.xs.to/xs230/08330…..08_940.jpg
and
http://xs323.xs.to/xs323/08014/G144_HUI_1.jpg
( where in last link the A x B are backwards )
..
Monthly ( as at 16-Oct-08 )
http://xs232.xs.to/xs232/08424…..08_459.jpg
ref: http://xs129.xs.to/xs129/08272…..08_247.jpg

2_p

>>>>>

….but looks like they have some …..or maybe delayed delivery ?

Heading north tomorrow for a week of moose hunting …. Ian Campbell/Temex territory.  If by chance should I run into Ian, do you have any message you would like me to convey to him for you ? 

” The question I have is this, what will force the JP Morgans to cover their short positions at Comex and drive the paper prices higher? ”

BG, maybe you answered your question with your 2nd paragraph..they precipitated the crash in the markets,( which is completely plausible to me)  and  naked shorted miners ad nauseum and fiddled around with paper gold (hence the disconnect to physical) so they can cover PM shorts at lower prices and when they damn well feel like it.

arch0708.goldtent.net/2008/10/17/look-2/

arch0708.goldtent.net/2008/10/17/the-bailout-is-not-a-failure/

arch0708.goldtent.net/2008/10/17/the-forest-from-the-trees/

no more to come …..

  Yes, that makes sense. Perfect sense. Also makes sense and correlates with Willie’s assertion that Lehman was taken out to save JP Morgan.

  Now, outside of another Bretton Woods where a new currency outside the U.S. is tied to gold and other commodities. What could force the guys in the paper markets to cover and get prices to rise?

 but I’m not sure that guy looked too hard. Hefty premiums on gold and 1 oz. silver. Not on 1000 oz. bars @ CNI.

  Unless he sold out today looks like he has some stock.

  http://www.golddealer.com/bullionpage.html

  This tells me that some folks needed to raise cash. Probably own the miners like we do.

Bill;
Just spoke with bullion dealer friend [one of the largest in Canada, very well plugged in]. Here’s what he said:

- there are zero one ounce gold wafers in North America at wholesale – period.

- Same thing for 10 oz gold bars

- Some kilo gold bars available at wholesale but highly limited supply at 5 % over spot

- Couple of hundred calls a day for small gold [one ounce denominations] and no product to sell

Silver

-` there are ZERO 1,000 ounce [one thousand ounce] bars available in America. A few thousand ouncers are available in Canada but highly limited.

- he laughed when I mentioned the COMEX and said IT IS a JOKE, says he doesn’t price product using COMEX silver any more – looks at E-Bay instead

- Getting 50 calls a day for silver and has no product to sell

I could go on but don’t need to.
R…

FX has been obliterated. Emerging markets ruined. The money is being brought home and away from commodity countries and high yielding currencies.

The money is being created like there is no tomorrow to monetize the debt. Foreign entities will subsidize us no longer.

Bill H:

To all; at this point there is no telling the exact path this financial implosion will take. Financially the existing system is over, the only questions remaining are how long until, and exactly what will the new system look like. What will be the new reserve currency? What will the backing be? Gold? Oil? A basket of commodities?

The Europeans, and BRIC countries are calling for a change and a new “Bretton Woods II” agreement. This can only be good for Gold and Silver long term.

Silver and the mining shares have not held the lows made three weeks ago. So far Gold has held. Please understand that the COMEX quoted prices are completely bogus as recent auctions and physical sales in Europe are showing roughly 50% premiums for Silver, and $80-$100 premiums for physical Gold. It is entirely possible that “the powers that be” can raid Gold down another couple hundred Dollars on the paper markets. It is very important that you go to sleep knowing what you own and waking up the same. Whether or not the metals can be raided down further remains to be seen, however I will not be surprised no matter what happens near term. As long as you understand that your metals are currently in a shortage condition, even if they push Gold to $500 or Silver to $5 it should not scare you since NO ONE is turning actual metal over at anywhere near the current paper quotes.

With the amount of capital sloshing around from the Treasury and Fed, paper shenanigans should be expected until we reach the failure point. I will define failure point as a closure of markets and more than likely capital controls and martial law.

The banks have borrowed $437 Billion PER DAY this week from the Fed just to survive. This number happens to be about 50% of what the Fed’s balance sheet was just 5 weeks ago. Their balance sheet has roughly doubled in size over these same 5 weeks. The Treasury has borrowed $254 Billion in short term T-Bills so far this week. It is taking more and more capital on an exponential basis to hold the system together. Many, many, assets classes are being pushed and or pulled both higher and lower in order to paint the picture that all is well. If you own physical metal and or the shares please understand that the government wants you to believe Gold is bad and paper is good because they only have paper to offer. They are trying to close the exits and get those who already “exited” the system to come back into it.

Don’t take the bait, think it through to understand clearly what it is that you own. Unfortunately this has been a very painful and stressful time for those who own mining shares, but we are marching toward a new banking system by the demand of foreigners. Those that hang in there will be charter members of the next banking system in my opinion. Regards, Bill H.

I’m trying to understand what you’re saying.

They crashed the markets to force money out of stocks and into treasuries? That makes sense because they had to crash world markets so that U.S. investors would sell foreign holdings and repatriate dollars here, sending bond yields lower and the dollar higher.

When you say they are “monetizing the debt” do you mean that the Fed is buying our treasuries because we can’t attract new foreign capital?

  This is economics that are above my head.

  The question I have is this, what will force the JP Morgans to cover their short positions at Comex and drive the paper prices higher?

  We already see a supply/demand issue. What will force the paper markets to correct toward the physical reality?