Chris Powell: Gold price suppression -- why, how, and how long?

[MichaelM]

This recent article posted on SOTT caught my interest because of the SOTT editorial comments.
http://www.sott.net/article/268198-Chris-Powell-Gold-price-suppression-why-how-and-how-long

Comment: Not to mention that central banks have been net buyers of physical gold recently (not silver).

Comment: Such a revaluation of gold would not be market-driven - it would be an instantaneous event simultaneous with the current system collapse in which derivatives such as paper gold and CDO/CDS, (interest rate derivatives) are destroyed.

I have a feeling that one of the SOTT editors is reading on FOFOA.
On the FOFOA blog, some long-time readers and commenters have noticed that the FreeGold theory is gaining traction.

This SOTT article sums it up nicely. The FOFOA blog (_http://fofoa.blogspot.com/) delves into more detail to try to paint a background story as to why a gold revaluation would take place and also tries to get a feel of the imminence of the event (i.e. looking for cumulative triggers that would usher in a gold revaluation).

The gist of it is that everything seems to be in place for a gold revaluation to take place, it is just that no one person/nation wants to be the party directly responsible for a gold revaluation. Or maybe that other sovereign nations are delaying the revaluation to "beef-up" their gold hoard before the revaluation. Or some other reason that we could not imagine until after the fact and would only be revealed post-mortem.

What is different from the FOFOA blog compared to the run-of-the-mill goldbug blog is that the author of the blog is very articulate and very thorough and usually breaks down complex economic theories/concepts in to easier to understand analogies.
The only fault of the author is that his posts are long winded for the average reader. But that is the downside of being thorough.

The number being bandied about is a revaluation to around $50K of today's dollar purchasing power, which is quite large compared to the SOTT article which mentions a 7x to 20x revaluation.

I used to think that even a 20x revaluation is a bit much. However imagining the size of the amount of USD floating around the world and if gold was to once again be used to "back" the currency, then a quite large revaluation would be in order.

Somebody on that blog (or was it on Zero Hedge?) also made the comment that most/all of us are probably suffering from some "normalcy bias" if we think that we could still go on with out current monetary system. All the signs are there (or seem to be there) that the current economic system is not sustainable and we are on the cusp of a paradigm change.


Or maybe the "change in the air" that we feel is just the cometary bombardment/"divine retribution" that is coming our way. I do remember Laura saying that monetary/regime changes usually follow _after_ the heavens pass judgement and the dust has settled.

I'm keeping my mind and eyes open but I feel like "the wait is killing me".

 

[gdpetti]

I'm keeping my mind and eyes open but I feel like "the wait is killing me".

That's how they want people to feel, so that they sell out, to them, as they have put the PMs on sale, and Asia is buying it all up, draining the Western accounts, but then they know it's all a farce anyway, with both sides playing chicken with Monopoly money. PM's are the last play in the game and the paper trade is determined to flush out all weak hands for them to accumulate it all and reset the game. You have to wonder how many of these traders/institutions really know what's going on, or if they've been told to just keep the game going until it 'tilts'. China warns, but continues to play the game of accumulating the on sale PMs and letting the Bitcoin game increase as well, another controlled game with no idea who started it....Hmmm, sound familiar? Advertising how hard that nut is to crack should sell a few more and push up the return on their investment.

But the wait isn't much longer anyway as Western holdings keep decreasing and allows Asia to feel strong with the latest 'decline of the west'. How many times have we heard that phrase? Keeps China busy anyway, and the PMs are mostly meant for excess capital anyway before the main event. The pile-on in naming our markets 'balloons about to pop' seem to have become all the rage these days and that Wall Street crowd always likes to send out the memos to make sure everyone follows their lead, but are they in on the real game behind this farce or not? If so, you would expect to see more 'retirements' before they 'pull the rug out'. I would think before the holidays if they really want to 'stir the pot', otherwise, the hangover from the holidays could put them in snooze mode until the deep freeze and that doesn't generate much 'juice'.

Everyone that watches this charade knows it's going to happen, just not when. The lack of attention paid to the solar/cosmic warnings are what seem so odd to me, and from otherwise, 'smart' individuals, at least inside their 'box', but those warnings aren't really given much press on any of those sites, channels, stations etc, so it's to be expected I suppose as no one has brought it to their attention, which is focused on the economic/geopolitical arena they've grown up with. The PM are just an economic bridge during normal civilizational collapse and will spike leading up to the main event, but as for their use after.....? does it really matter if you're on the other side of the mirror?