German Gold Hijinx

I guess it all depends on how you look at it. Either this is all on the up-and-up or it isn't. Either this is a purely political show or it isn't. Either the gold is really there to be repatriated or it isn't. It's up to you to decide.

Just three months ago, The Bundesbank labeled as "lunacy" the idea that German gold needed to be brought home. They announce today that they're doing it anyway, but in sizes nowhere near what had been speculated. Is this just a political trick to mollify the German hoi polloi? Probably. It certainly doesn't upset the status quo or shake the global banking system in the manner we'd all hoped.

However, you could also choose to look at it this way:

  • In preparation for The Great Reset, the Germans do desire to repatriate as much gold as possible but they also don't wish to bring about The Reset any quicker than necessary.
  • So, they bring home "their French gold" but only do so at the rate of 50 tonnnes/year. Why? If it's just sitting in a vault and collecting dust, why not ship it all home over the next few weeks? What's the big deal?
  • And why leave "their English gold" untouched? Is it because all gold stored at the BoE can be leased, hypothecated and rehypothecated many times over, thereby making reclaiming it impossible?
  • And why bring back just 300 tonnes of "their American gold", again over the next 8 years? It shouldn't be that big of a deal to pull up a few pallets of "barbarous relic" from below the streets of lower Manhattan, drive it over to JFK and load it onto an airplane bound for Frankfurt. Should it?

Hmmmm. Maybe, just maybe, their French gold is long gone and the Frenchy-French need some time to come up with new supply to pay them back? ( http://www.reuters.com/article/2009/12/22/ozabs-mali-gold-idAFJOE5BL01520091222) Maybe the English gold has all been shipped to China and other points East, where it has been resmelted into kilo bars with official Chinese insignia? ( http://www.tfmetalsreport.com/blog/3924/gonefor-good) And maybe, just maybe, the American gold is nothing but paper certificates and IOUs, no more valuable than claims on the GLD? ( http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/25_James_Turk_-_The_Entire_German_Gold_Hoard_Is_Gone.html)

Ahhhhhh....what do I know? I'm just a Turd. A dope with a MacBook. I'm sure it's all just fine. Move along. Nothing to see here. All is well. Go back to sleep.

Anyway, it has been a few days so we need to update the charts. Let's start with gold. Take a look at these two, daily charts. You can clearly see the price double bottom. This also coincides with an open interest bottom in late December. In the big picture, me likes what me sees.

Now check out this 8-hour chart. Besides all of the horizontal and diagonal resistance lines I've drawn, gold will likley run into some tough sledding near the 50 and 100-day MAs. The fifty for the Feb13 contract is currently near $1697 and the 100 is near $1718. Taking it all into consideration, the "all clear" for a rally can't truly be sounded until gold gets up and through about $1710-1715, maybe in a week or two. Until then, I just plan to keep stacking physical. I'm not going to buy any more options just yet.

As you might expect, silver has a somewhat similar picture. It came down in late December and then double-bottomed just below $30 about two weeks ago. Since then, it has seen a steady progression higher. Now it just needs to follow through. It is finding resistance near the highs of 1/2/13 (31.50) and it needs to break that level to draw in more buyers. Once through there, expect slowdowns near the 50-day, currently at $32.01, and the 100-day near $32.60.

That's all for today. I need to go take a little boat ride with all my guns and ammunition. It'll probably take most of the day. More tomorrow...

TF

387 Comments

Pegasus's picture

German gold move may spark 'chain reaction'

Germany's plans to repatriate some 60 percent of its vast gold reserves stored in U.S. and French vaults "may trigger a chain reaction," a research group said.

"This move by the Bundesbank may trigger a chain reaction, prompting other countries to start repatriating the gold stored in London, New York or Paris," the Center for Research on Globalization said in a note ahead of Wednesday's expected central bank announcement to bring home $115 billion in gold bullion stored at the Federal Reserve of New York and the Bank of France in Paris.

"So far, only countries that have a strained relationship with the U.S. have resorted to gold repatriation," said the research group, based in Montreal. "Now, Bundesbank will be seen as walking in Hugo Chavez's footsteps."

Article Link: http://www.upi.com/Business_News/2013/01/16/German-gold-move-may-spark-chain-reaction/UPI-66821358321400/

Good night All! - Peg.

Hammer's picture

If you do nothing else today,

If you do nothing else today, please listen to Jim from the 9:40 mark. Listen a couple of times to let it sink in.

Excalibur's picture

I bring you

Mantis's picture

Free energy and Tesla

Enjoying this conversation but haven't read all the comments so apologies if i'm repeating.

People who try to discredit free energy do so with variations of this argument. The second law of thermodynamics states that you can't get more energy out than you put in in a closed system, therefore perpetual motion machines are impossible etc.

Free energy however doesn't claim to be a perpetual motion machine just as a windmill or a solar panel isn't a perpetual motion machine. It refers to getting more energy out the environment than you put in yourself, no the total energy going in. 

I believe Teslas idea came from recognising that the earth is a giant capacitor and somehow he had a way of tapping into that limitless abundance of electrical energy. I sometimes wonder if mainstream science refuses to acknowledge the Electric Universe theories because they don't want things like this understood.

With the advent of the internet it is getting harder and harder to keep the people ignorant, free energy could become a reality in my opinion, although you may say I'm a dreamer :)

ratioarbitrage's picture

Gold and silver conspiracy theory

I have written an imagined US Government policy on precious metals dating back to 1997 and still in force. Sorry but it is much too long to post here in its entirety! Those looking to reconcile the metals approach here with more government-heavy views may enjoy it (Daedalus Mugged, Mr Fix and others no doubt). Anyway, FWIW.

The Gold Markets Memorandum

ivars's picture

CHF diving

Interest in safe assets is diminishing?

gernos's picture

The 3000 tonnes of german

The 3000 tonnes of german gold notionally held in the US has never existed as such.

It is nothing more or less than an open trading account accrued during the 50s and 60s when the Federal Republic had such a good trade surplus with the US that they basically allowed deferred payment for goods delivered : “Dear Uncle Sam, no need to pay now, just run it up on our account”. Since the US dollar was fixed to gold (at least for foreign trading purposes) until 1971, the distinction between an open US dollar account and a notional open position in Gold probably didn’t seem like a big deal at the time.

Jump forward half a century, and we have the creditor basically asking for the outstanding account to be settled, “in 1960s gold bitte, …verstanden ?, with a very nice nominal profit of 5000% percent.

I suspect the real reason for the very slow transfer rate out of Paris and the US suggested by the BuBa is that this 60 tonnes/per annum is all the physical gold market could bear safely without invoking turbulence in the (much larger) paper gold markets and a too-rapid collapse of confidence in the present western+BOJ fiat system.

Whatever interpretation one puts on this latest announcement by the BuBa, it provides yet another clear signal that the post Bretton Woods II regime has a very small number of years left to run.

Green Lantern's picture

Gold Repatriation Announcement is Significant

LOOK EVERYONE.  THIS STORY IS NOT TO BE MINIMIZED. 

The tip of the iceberg is not the story.  It's What lies underneath!!!   It's ALOT TO DO OVER ALOT

Whether or not this announcement held up to your expectations of what it meant for the price of gold in the short term is really immaterial.    A story like this doesn't come out without significant ramifications even if it takes a little mental strain to vet out the core issue at hand which has to do with a significant, historic realignment of geopolitical alliances that we haven't seen since WW2 Germany.

But first a little weed picking here on a trend that lies just underneath the surface that seeks to undermine the healthy speculation that takes place here

Horst my man.

You amaze yourself.  Isn't it true? 

There seems to be a trend afoot here that you've signed up for.  Allow me to describe it since you invited it upon yourself.

A news story emerges through either the mainstream or alternative metals media.  Turd shares
it with us.  He  provides us with his theories and speculation and then opens the floor
for all Turdites to provide their high octane speculation.   German Repatriation is a good example.
The other was  Turds post of a youtube video by Debka file on the Mali invasion which was completely and rudely
refuted for no other reason other than Debka file is part of the main stream media propoganda machine giving no other insight or comment on the content.

For two days, we have been speculating on what the German Repatriation means.  The entire metals community
hears the two alarm fire and wakes up out of their narcoleptic somnolence.   Even Turd's threads saw
an unusual amount of activity as lurkers all came out to contribute their viewpoint on this potentially
important news story.  It's good to know the ice berg runs deep.

Germany has a press conference and tells the world that it's going to take 8 years to move the gold.  The hot
air comes out of the balloon and those with no more critical thinking skills than a donkey, than make their move,
and come out and issue their own press release

"What? Turd again got fooled by the media and/or politicians? Quel surprise. He's still looking for
a savior somewhere that will make all well. Cute. But naive. And he's dragging the lot of you down with him, which makes him not only cute & naive, but irresponsible."

And then for the benefit of the entire community (I'm sure) provide us with a link of your your own speculation which in your own mind is worthy of a Pulitzer Prize. And in the end, it was nothing but taking a contrary opinion to whatever Turd wrote. And then pounding your chest like a 600 lb gorilla and announcing to the world "I got it right"  OF course during the entire process of asserting your superiority you  denigrate Turd and the community at large as a group of borg's tightly controlled by the master borg. 

Seriously Horst.   For a guy that speculates on the monetary policy of a foreign economy wholly incorrectly, the announcement of QE3 which you got wrong big time, don't you think a little humility might be called for.

And to the guy who criticized Turd because he published a youtube video on Mali and then you promptly rejected it and poked fun of it simply because of the source without providing any commentary or insight of his own addressing the content and only the source.  Fuck you too!  Pardon my french.  I don't mind attributing fowl language to the french as they bomb the shit out of a country in Africa where everybody speaks francois instead of their own indigenous language.

This trend of calling people out and trying to diminish them for not being 100% accurate on their speculation is the work of cowardly, arrogant, inept thinkers who usually bring very little to the table other than their ability to point out the weakness's of others. 

The fact of the matter is this announcement still remains significant.  If you think that this announcement by Europes Economic Power on repatriating their gold is nothing simply because the outcome isn't what you expected, than you missed the point.  Climb back into your  lair and climb back into the nice cozy womb of the matrix until an overt crisis hits the mainstream newspaper.

It is not that this is unimportant news.  It is simply not what everybody hoped.  Big difference.

For the first time in 60 some years, Germany is telling the world that it is now taking back it's sovereignty from the United States. 

From the RT (And don't give me the RT is run by an elite group of people)  If you want to debate the content of the article.  Debate the content not the messenger

The former head of the West German Military Intelligence has issued a book revealing secret details of a 1949 US-German treaty, alleging America and its allies have been deliberately suppressing the nation’s sovereignty.
 
Twenty years after the Berlin Wall fell and the most painful wounds have healed, there seems to be no more uncomfortable truths left for Germans.
 
Yet some still manage to come up with hot potatoes – and the biggest these days is from the former head of the intelligence service in West Germany.

In Gerd-Helmut Komossa’s book “The German Card”, he claims Germany has, until now, been controlled by the United States and its allies, and was even viewed as a possible target

At a NATO meeting, I realized that a possible plan was for the alliance to hit the largest dam in West Germany with a nuclear bomb. If strikes had taken place, a great number of civilians would have died,” Gerd-Helmut Komossa says in his “The German Card” book.
 
The retired General details a secret pact he alleges was signed in 1949 between Germany and the US, and which will be in force for another 90 years.

Second, per Zerohedge who summarized it nicely which ain't no small potato's.

"In simple terms, Germany has just announced that it doesn’t trust the US Fed."

There are other significant components to this story that deserve to be highlighted but again Mr. Farrell does a better job than I and highlights the above points as well as the continued obfuscation of the amount of gold in the world, the rehypothecation and the most important point.

The German  announcement represents a significant geopolitical realignment. 

There has been no dirth of writers, Rickards for one.  Richard Maybury another, that there is a profound realignment going on similar to World 2 Allies vs Axis countries. A line is being drawn in the sand and everyone is quickly picking sides.  We are finding out that most of us here from US and Great Britain are becoming the great
world menace. 

The BRIC countries are realigning themselves with China and Russia and now it seems that Germany is realigning itself.  I recently saw a photo by somebody from Brazil who pasted it on facebook that summarizes what those in the BRIC countries think about their relationship to the United States.  For the most part, the good citizens of S. America and in many places in the world feel like they have been OWNED by the US for too long and it's time that all ended.   Just as Hong Kong, India, Pakistan didn't want to be OWNED by Brits anymore.    Time to be adults and own up to our governments misdoings.

One of the thesis's we make on Turd that support the argument for gold and silver is the historical precedence of civilizations who have debased their currency, inflated it and run extravagant amounts of debt.  Isn't that the primary thesis? 

It's almost correct.   Money debasing is a secondary cause and not the primary cause that creates end games to civilizations.   The primary reason for the defeat of Rome Empire, the end of the "the Empire on which the sun never sets"  British Empire and many, many others was not money debasement but extending it's borders well beyond it's homeland in attempts to rule the world.  Imperialism or Manifest Destiny.  We should have ended with Louis and Clarke but we kept going out into the Pacific, up to Russia and now we try to own the world as our fighter Drones drop smart weapons on a group of indigenous people in Mali who don't speak their original language but that of KIng Louis XVI or whoever. 

The other major contributor to the decline of civilizations that goes along with control of money and power is the illicit drug trade.  Catherine Austin Fitts writes about this all the time.  Britain did it to undermne the Chinese and bring back loot for the crown.  And for petesakes, the Romans and Greeks were STONED out of their gourds most of the time.  This is one of the most minimized topics because few connect how it effects their investments.   Suffice to say that HSBC's pardon on illegal money laundering is no small story either.   It's the crux of the matter.

No civilization has been able to  sustain world conquest and not end up with the same fate as Napolean or Alexander the Great.  This is the reason I ascert that the geopolitical happenings in the world are the #1 factor to  the price of our investments.  Debt and inflation are the result of this geopolitical maneuvering which result in the popularity of gold and silver.   So whether we discuss the ancillary issues on main street or the forums or on the back of a match book is of little concern to me.    Compartmentalizing issues is fine.  Sometimes focus is good.  However,  those that see many of the issues discussed here as unrelated and not relevant are operating in a different paradigm.  The elite agenda is ONE and connected.    A Ben Bernanke speech on monetary policy is less relevant than the events happening in the world that dictate our monetary policy.   Drones over Mali point in case.

The German repatriation of Gold is much more significant than originally thought.  And don't worry Horst while the United States is getting what we deserve as the world plans to ruin the dollar and bring us to our economic knees,  the Axis Nations will certainly throw Austria around like a tennis ball like it has been since Emperor Francis of the Holy Roman Empire owned your ass until the late 1800's and then let you out of slavery to form  another failed empire along with Hungary. You have your stuff to worry about.

Byzantium's picture

@ Gernos

Interesting......

And by that logic, affects other CB claims to gold too, being nothing more than claims accrued in a system now defunct.

On the other hand, Venezuela got its gold, which appears to suggest that these claims are indeed still legitimate, even if the gold never existed.

So anyway, if the CB's don't have it, then somebody has a lot more than we thought. Is is Indian housewives?

achmachat's picture

Byzantium

I sure hope there's SOME gold left.

Because as soon as the gold to silver ratio goes down towards 15, there is going to be a lot of silver that will want to be converted into gold!

(just imagine... with 15 mint boxes of silver, you'll be able to get 500 troy ounces of pure gold. That is the equivalent of a real pirate treasure chest ^_^)

p.s. Boy! silver is cheap these times!

Byzantium's picture

@ ahmachat

So many of us are planning that trade, but harking back to an earlier post I made, I wonder how many of us have our strategies ready?

Prompted by your post, but not to you in particular;

Suppose one has a strategy to convert all their silver at 15:1, but it never gets below 16:1? Missed opportunity!

Suppose the strategy is to convert it all by the time it gets to 10:1, but it carries on going to 1:1 or beyond? Missed opportunity!

I do have a strategy, though I am always tinkering with it. Essentially, it is to swap gold for silver over 54:1, and to start converting it back under 45:1 at in increments as we head lower, conscious of course that we do not know how far (or not) the ratio will go.

So my latest strategy is to start swapping at 45:1 and to follow this phasing:

(and note that as we go further down the list, the less chance there is of it ever happening; a bird in the hand and all that; the higher GSR's might be the only trades we get to make):

GSR /  %age of original silver stash retained

45:1    100%

40:1    90%

30:1    70%

20:1    50%

15:1     40%

10:1     30%

5:1       20%

1:1       10%  /// this 10% is a speculative retention, for T Moseley's wildcard scenario / panic prices for silver.

This phasing ignores for simplicity, the fact that the GSR might oscillate, giving trading opportunities along the way.

I'd be interested to know how others plan to phase their silver to gold swaps. I think the format above is quite simple, and useful. I ask because I am hoping to learn by sharing and exchanging. I suspect that many assume they will do this in principle, but have never sat down and thought about the phasing.

Byz.

Byzantium's picture

Probablistic modeling

Harking back to my previous post; the silver ounce converted to gold, at a GSR of 1:1, buys 10 times as much gold, than if converted at 10:1, and 30 times more, than if converted at 30:1.

The chances of a GSR ratio of 1:1 however, might be close to zero.

If the paper market for one metal collapses before the other, then anything is possible in that period.

Saving all your silver ammo for a specific GSR, may mean waiting all your life for an event that never comes.

The GSR got to 30 in April 2011, and to around 16 in 1980.

The correct strategy, depends on one's appetite for risk, or risk aversion; and also on one's assignation of probabilities as to how low the GSR will go, and as to the milestones along the way.

I am convinced that the GSR will go sub 30, but will start converting at 45, because I expect to see oscillation that  I can trade, back and forth. Such oscillation needs a no-mans land in the middle, else one will just reverse earlier trades to no gain.

This is such a big topic; deserves its own thread!

Byzantium's picture

and finally

If the masses are planning at converting silver to gold at 16:1 (say), then you wouldn't want to be waiting for 15:1.

There is a lot of psychology, and mass psychology, to assigning probabilities to this.

16:1, and 30:1, are significant resistance points, as they are historic apex's to the GSR.

15:1 in my view, is therefore the wrong level to wait for.

The risk / reward profile of 18:1, is multiples better than for 15:1  !

See why we need a devoted thread?

tpbeta's picture

@ Puck T. Smith

Yes I saw that too. Couldn't tell if Dave was being ironic or alluding to some deeper meaning. If he actually thinks that "it's kind of like flipping coins and getting 12 straight "heads" -- the odds of a "tail" coming up rise with each head" then he's probably not the world's best trader.

Having said which, with every successive "heads" the odds rise that Blythe has switched the coin for one with heads on both sides. But I guess that just makes him more wrong.

boatman's picture

TF.........RE: off topic but.......

first time i ever saw Monti T'eo tell that girlfriend story i said to myself he sure sounds like he's lying about SOMETHING.

but i figured who would be dumb enough to lie about something like that when u are under that much scrutiny.

ivars's picture

GL

The decline in civilizations happens because the marginal return on increasing cost of increasing complexity to govern diminishes over time.

The increasing complexity of civilizations is like a natures law. In thermodynamics, increasing complexity is sustained by increasing flows of energy/per mass unit. The same in civilizations - but energy may sometimes be substituted by money or flow of money per unit mass of civilization. To achieve that , there is a need for new revenue all the time. However, sooner or later run up in revenues ( or e.g fossil energy availability ) it comes to the end and complexity can not be maintained and civilization dissolves ( Tainter).

There just few typical ways how increaed complexity is financed/energized as Empires expand/want to survive:

1) Looting ( remember Roman empire) , including slave labour from conquered provinces or other forays

2) Expansion ( again , any empire) to distribute centralzed complexity over larger resource region, reducing fixed costs in hope that expansion will give more in revenue than require in complexity increase to govern ( e.g USA taking over Canada or Mexico, or historically Anschluss of Austria and annexation of Czechoslovakia, conquest of Poland). The limit is of course other empires, and this is also only part time solution. So there is a balance, but it is the usual course empires take since NOT expanding means inevitable decline

3) Decomplexify intentionally reducing cost and living standards dramatically- only once done in History , by East roman empire ( Byzantium) - result- existence for another 1000 years after Rome collapsed, stable currency for 1000 years.

From fantasy land there are 2 options:

4) New accumulated (fossil or nuclear) source of energy found more total cost effective than oil , coal, gas(including the added complexity to manage its usage, so nuclear as of today does not qualify)

5) Expansion outside the Earth

That is it. No other solutions to maintain the level of current life style in Western countries. I vote for options 1 ( used all the time in 20th century by exploitation of third world countries) and 2) expansion ( possible only for USA at this moment, an option for China and Germany together with Russia).

Well , the first one in expansion  to move is obviously the USA and its on its way, since living standards has stopped to improve and without 1 or 2 are not possible by the character of the development of civilization to higher levels of complexity that gives less returns and then these returns get negative. The debt system is part of such increasing complexity which seems to have rapidly reaching the point of negative returns on complexity ( derivatives etc).

So its really simple. The options are few, and they are well known to elite. I suggest that the expansion of the USA empire in combination with looting has been going on at least since 1990...as such is the logic of survival of civilizations. Law of nature, unless you willingly give up living standards and decomplexify...but than, even its possible internally by an autocratic , dictatorial regime, you can not- because the others are waiting to catch you exactly at the point when you have decomplexified enough to become an easy target for conquest. Unless the whole world decomplexifies in synchrony. But the old grudges will not let it happen, not now. So, back to expansion. Back to the USD as reserve currency. These are targets, and motives behind them I listed above- it is a one direction road, you can not step back.

Once it is understood , the inevitability of some processes and the targets they put in front of elites which reside on the top of complex governing system, all else starts to nicely fit the framework, and the propaganda mist can be lifted from your eyes.

One can watch Tainter explain his groundbreaking but simple in conclusions research in these few short  videos:

http://www.tfmetalsreport.com/comment/189966#comment-189966

swg1001's picture

@ Urban Roman

The $70K is profit made from trading one GC contract if you were to emulate Andrew's trades.  One contract currently has an initial margin of $6600 and maintenance margin of $6000.

tpbeta's picture

$31.54

Running at the stops again. Finger crossed.

Byzantium's picture

Ticker tidbits

At time of writing, oil is at 94.8; does 95 beckon?

Yen back in 89 territory, at 89.37. Dollar index looks flat, because the weak yen is counterbalanced by a strong Euro at 1.3367.

By implication, oil price is steady in Euro, and Yen priced in Euro is too 'cheap' based on recent history.

Meanwhile, oil up while yen down; oil is appreciating fast for the Japanese.

Looks like we are in a transition period; I wonder what we are working towards, and how it will affect us?

Harald's picture

flipping coins

I've always disagreed with the old gamblers theory that after flipping heads twelve straight times the chances of flipping heads on the thirteenth flip is still 50/50.  If you look at it as thirteen separate flips it is 50/50 but looking at it as a series, it is still highly unlikely that someone can flip head thirteen straight times with an honest coin and the odds grow exponentially with each successive flip.  Enough monkeys sitting at enough typewriters, eventually one of them will type out Gone With the Wind but it's highly unlikely.  Someone asked Einstein to explain infinity.  His response was something along the lines of:  The human brain isn't smart enough to comprehend infinity so don't worry about it.

Corsair's picture

@ Byzantium

my ounce ratio silver-to-gold is 250:1

GSR 40:1, unload 40% silver

GSR 30:1, unload 40% silver

GSR 20:1, unload 10%

GSR 10:1, unload 10%

ag1969's picture

The Value of Silver

Whether you know it or not, silver probably plays a big part in your life. With the new high-tech era, silver can literally be found everywhere. It's in your iPhone, your new LCD TV and laptop, and you're staring at it when looking at yourself in the mirror. This is a result of silver being the best conductor of electricity out of all metals as well as an excellent reflector of light. Silver has gone from limited industrial use in the photography sector to one of the most crucial ingredients in modern technology. Many experts claim that silver is the most important metal we have, as our way of life wouldn't be the same without it.

You are most likely aware of silver's outstanding price ascent over the past 10 years, but what is really driving the current bull market in silver and how far will it go? And is there such a thing as a fair value of silver? In this article we will try to delve into most of the factors in the tiny silver market and try to at least get an idea of how to answer such questions. We will also make a lot of historical comparisons, since history, as Mark Twain once noted, does not repeat itself, but it does rhyme.

Silver as money

Silver was first mined some 6,000 years ago in today's Turkey. It has since been used for mainly two things: jewelry for its beauty and transactions for its wide acceptance as money. The first silver coins were minted around 600BC and silver has throughout history actually been used more often and widespread than gold in transactions.

The apparent reason seems to be silver's suitability for daily trade compared to gold's much greater purchasing power per unit of weight. The chemical symbol for silver is "Ag" derived from the Latin word "argentum" which translates into "money". That should say something about the extensive history of silver considered as money.

The British and Roman Empires are two examples in history of silver being utilized as money. The two powerhouses of today's world economy, the U.S. and China, are no exception. Silver was regarded as legal tender in the U.S. from 1792 up until 1873 when the country abandoned the bimetallic standard for a gold standard.(1) China finally abandoned the silver standard in 1935.(2)

Read more:

https://miningstockvaluator.com/articles/the-value-of-silver.php

Dr. Fix's picture

Reply to Green Lantern:

Your latest commentary on the German gold repatriation story is a classic example of why TF Metals has the best analysis on the planet.

You tied the big picture together in a way that is very rarely done, and raised points that are completely overlooked by the vast majority of those in this field.  

In the past few years, Jim Willie has speculated that the United States will be isolated  in the world monetary system.

I think he actually said “the  West”.

Your analysis properly concludes that Germany has chosen sides, and it is not with the dead weight that has become the Western civilization, is with the BRIC nations, China and Russia.

You know that war is about to heat up when countries are choosing sides in it already.

It would appear to me that the worldwide consensus is that the United States world wide reign of tyranny on the planet is about to end, and nobody wants to be on the losing side of that battle.

I think the pace of the events will start to accelerate now, there are many more shoes to drop,

 this will not end well.

ag1969's picture

Honduras police seize $50,000 gold-plated AK-47 rifle

The gun, estimated to be worth more than $50,000 (£30,000), is believed to belong to drug traffickers.

Following a tip-off, police also found a number of weapons, along with other military equipment and passports.

Two security guards were detained during the raid at a ranch 300km (186 miles) from the capital, Tegucigalpa.

Honduran authorities said the gold-plated rifle had an engraving associated with the Malverde drug gang - which is allegedly connected to Mexico's Zetas cartel.

http://www.bbc.co.uk/news/world-latin-america-20931468

Byzantium's picture

@ Corsair

250:1, wow!

If the GSR goes your way, you are going to be the man!

by the way; conversions in 4 discrete batches, or in an even & steady flow? (e.g. ten even mini batches between each of your milestones?) 

Byzantium's picture

@ Mr Fix re choosing sides

I think that the whole of South & Latin America are fed up with the USA.

US tentacles still strong in Mexico and Columbia; don't know about the sentiment of civilians there though.

ClinkinKY's picture

@ fertzeltwist--Boring

Kinda sucks that we are not allowed to talk about anything but metals on Main Street anymore!- boring, very boring. Metals shiny- yes. Metals stackable?, yes. Metals repressed?, without a doubt, but why is this so?  The answer is blowing in the wind, soul kitten! Time is now to be strong, grow a shlong, and carry on, donkey kong! The reason metals are repressed is cause WE are repressed. Until this is addressed, you will all remain victims.

---------------------------------------------------------------

In light of this, in order to stay "on topic", I would just like to say that I really like Gold and Silver.

-----------------------------------------------------------------

ps-

Posted Image

Green Lantern's picture

@Ivars

I concur with your cost analysis of expansion.  

I would add with the British Empire it was two billion angry hindustans who were pissed off and fed up with domination get ready to storm the castle.

With us and Britain, it's a few billion people in the world who remember the pain of their father, grandfathers and great, great grandparents that are willing to wage war by walking into a crowded square with dynamite strapped to their chest.   

Hey, if you can't fight a war with smart weapons, you use what you can get.    Then some putz in the White House calls it terrorism instead of what it really is, WAR using the tools you have in the kitchen.

At some point expansion is unsustainable because of the economics and the people who you've violated don't care if they die as long as they take you along with them.

achmachat's picture

cheap silver and gold

The ratio between gold and silver in this household is pretty much exactly 1 to 10.000

You read correctly. This is how much we think that silver is "cheap" compared to gold.

Our final goal when to convert (almost) everything to gold is the famous historical 16 to 1 ratio. From that point on, the "wealth" will be in wealth-storage form, aka gold.

From a ratio of 25 on, we are slowly going to start the silver to gold conversion.

Whenever the ratio goes lower than 16, we will just be looking at the prices and say: "Boy! gold is cheap compared to silver...." and park our savings straight in gold instead of silver.

Syndicate contentComments for "German Gold Hijinx"