The PAGE Is Turning

332
223
Wed, Aug 31, 2011 - 7:16pm

Our Australian friend, "Turdle", recently brought all of this to my attention. What we are about to discuss will truly have significant and consequential effects on the global trading and pricing of gold and, by extension, silver. Pondering the potential impacts of the Pan Asia Gold Exchange will require some time and mental clarity. If you feel you currently have appropriate levels of both, then let's proceed with the discussion.

First, some background. The Turd has been of the opinion for years that the forward-thinking Chinese are not necessarily planning for tomorrow, they are planning for 20 years from tomorrow, 50 years from tomorrow and 100 years from tomorrow. For example, if you listened to the "Time Monk Radio" interview of Jim Rogers, you heard me ask Jim about the possible, future "gold-backing" of the renminbi by the Chinese. I believe that one of the reasons the Chinese central bank is buying gold is to accumulate gold reserves for this purpose. Of course there are other reasons, too, but at some point in the future, China will sponsor a new regional or global currency that will be at least partially backed by gold. As part of this plan, Beijing is currently developing alternative futures and physical metals markets. The Hong Kong Mercantile Exchange is part of this plan. The soon-to-be-opened Pan Asia Gold Exchange is another.

Update: Comex Alternative: Pan Asia Gold Exchange, Silver Contracts start 22-7-2011!

It is this Pan Asia Gold Exchange (PAGE) that is the short term game-changer. By providing the world with a physical settlement and pricing structure outside of the bounds of the current LBMA/Comex scheme, the PAGE may, once and for all, allow for true price discovery of physical metal. The PAGE will make the current pricing system obsolete as global investors seek true physical metal that is unencumbered by leasing, titling and derivatives. A good starting point for your understanding of this concept is this 15-minute video from James Turk's GoldMoney site. Watch it right now.

https://www.goldmoney.com/video/naylor-leyland-turk-interview.html

Turk went on to have a follow up conversation Richard Poulden. Mr. Poulden is the Director of Power Capital Financial Trading. PCFT is the only private company allowed as an investor in the exchange. It's safe to say that he knows a little bit about the exchange, its dynamics and its opening date.

https://www.goldmoney.com/video/poulden-turk-interview.html

Now, I need you to think about what this all means and what the ramifications will be for the price of precious metals in 2012. Many have wondered how gold could ever possibly trade to Santa's target of $12,000/ounce. Under the current price suppression scheme of fractional bullion banking, it would be a significant, if not insurmountable, challenge for it to get there. If the PAGE succeeds in becoming the preeminent pricing mechanism, $12,000/ounce may prove to be a conservative estimate. No, gold won't trade to $12,000 in 2012. It might make it there by 2020, however. In this context, consider, too, the news last week that Venezuela was repatriating their gold from London. Does El Commandante want to get his little fingers on his gold before the LBMA house of cards crashes to the ground? It's what the hell I'd be doing if I were him.

My questions for you are some of the same that Senor Chavez undoubtedly asked himself:

1) Do you own physical gold?

2) Where is it stored?

3) Is it in an "allocated" or "unallocated" account?

4) If it's allocated, have you ever actually seen it? Have you ever actually touched it? Have you ever tried to withdraw it?

5) Do you own shares of GLD and/or SLV? Are you confident that they "own and hold" all of the gold they claim?

6) Do you trade leveraged paper ETFs like AGQ or UGL? What is your plan should the Comex fail?

My answer to these questions is simple: Physical is physical and paper is paper. You don't own it unless you hold it. Those relying upon the permanence of the status quo are about to receive a very rude wake-up call. Those of us who own and stack physical metal are about to see the fiat-conversion value of our metals skyrocket. The time is now for you to prepare for this historically transformative event.

About the Author

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turd [at] tfmetalsreport [dot] com ()

  332 Comments

Eric Original
Aug 31, 2011 - 7:27pm

I was sitting here for like 5

I'm sitting here for like 5 minutes thinking I could post "Second!!" , but I don't want to look like a dick.

I Am The Unknown Comic
Aug 31, 2011 - 7:28pm

Turd!

same way I felt about posting "turd" in line

schmederling
Aug 31, 2011 - 7:28pm

Chacez/Exchanges

Folks,

I remember reading somewhere , ( I will have to look) the Chavez thing was already a done deal and he as received all his gold - it was kept secret to avoid public awareness. Make scene to me - most big players make their move first and then announce it - not the other way around.

As for the exchanges the Rothschild are involved and you can bet they are helping set up the next war... they are playing both sides as they have for ever and profiting along the way.

timpa
Aug 31, 2011 - 7:32pm

grow up

all you fellows that post first, second etc are children...

turdfan
Aug 31, 2011 - 7:32pm

miners?

Turd, are you suggesting that mining shares should be sold now to buy physical gold?

the_PeteEric Original
Aug 31, 2011 - 7:33pm

Eric Original.... need a

Eric Original.... need a mirror? (tongue in cheek of course)

Adventures
Aug 31, 2011 - 7:34pm

My thoughts are based on history

I think you are correct that the Chinese think more in generations rather than day to day. Where the USA say "Time is Money", the China sees time as free so they take a longer view. Oh course this is my simplified view. They also almost always tell you what the intend to do. The problem is no one ever believes them or think it's a bluff. It happened during the Korean war before they got involved and on the Indian border incidents in the early 60's.

margaritatime
Aug 31, 2011 - 7:34pm

eric

pffffftttt!!!! I just spit my drink on the keyboard LMAO.. Don't know why it was so funny, perhaps because I was in deep thought reading the Turd, then saw your post.. Back under my rock now.

tyberious
Aug 31, 2011 - 7:35pm

check

And mate! Question of the day. There seems to be a lot of, umm how shall i say, prodding towards all physical. I think having some miner equities and options accounts are still a good idea, as for me they provide cash liquidly and income. And to me my PM's are precious and will not be sold until the Dow = 1 oz Au or a new monetary system is born.

exiledbear
Aug 31, 2011 - 7:35pm

The gold market has to expand somehow

The current structure is too small for an expanding bull market that will inevitably attract more and more players.

This is just another hallmark of the ongoing bull market in gold and how things always seem to work out to support the underlying trend.

I wouldn't be trusting the Chinese with your gold but as long as they're delivering physical, it's no worse than the weasels at the COMEX, etc. And might even be an improvement.

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