The PAGE Is Turning

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.

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.

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

turd [at] tfmetalsreport [dot] com ()


Aug 31, 2011 - 7:38pm


Are you just jealous ? I think is cool and a nice hold over from the old site :)

Aug 31, 2011 - 7:39pm

I'm calling that tomorrow is

I'm calling that tomorrow is a big day in the metals. Silver has putz around for too long. I just have that feeling.

September is going to be wild!

Aug 31, 2011 - 7:42pm
Aug 31, 2011 - 7:42pm


My opinion is short and simple:

The scarcity of an item is directly related to it's price / value. Anyone that thinks this has no impact on future prices is smokin'. The other question to ask is this: Do the larger players and CBs already know this impact? Of course they do. I think your estimate of 2020 is way too conservative. It indicates to me that another much larger train is leaving the station right across from ours... nuff said.

Aug 31, 2011 - 7:44pm

Got my Yellow Hat yesterday

If I can only figure out how to post the pic...

I tried dragging and dropping the pic but that didn't work...

Can anyone offer me some advice here? What am I missing? The pic shows when I drag and drop it into the comment space but it doesn't show after I save the comment...


Edit: Aha...

Aug 31, 2011 - 7:44pm


Use the image insert button at top of the Comment box.... <--- next to this button

Aug 31, 2011 - 7:45pm

the next war

Maybe we're already in the next war, and it's an economic one, and it will be the first we lose?

China has been around for a long time, their plans do involve time spans that exceed the next quarter numbers. Maybe we are outclassed. Sure we have the big guns but maybe this time it is different. WTFDIK

This new exchange does give me hope for some reality to enter into the picture though. Imagine a reality based pricing structure to use for investment decision making.

Thanks Turd

Turdle GG
Aug 31, 2011 - 7:45pm

Thanks Turd

You've done a great service by bringing PAGE to the attention of more people.

I know Ted Butler has been commenting frequently on his view that he big run-up in gold prices recently was caused by bullion banks covering shorts. Maybe they see the writing on the wall, with PAGE a real threat?

I've sent your article to Ted so that he is aware of PAGE.

rock collector
Aug 31, 2011 - 7:45pm

It can't just be gold going up....

It also will likely be a grand and profound realization that the dollar is crap.
I wish it wasn't so but it is.
At 58 yrs, with a memory that goes back to the 60's, I resent the hell out of what they have done to our dollar.
What's coming down the pike is going to be painful for many.

Pax Argentum
Aug 31, 2011 - 7:46pm

"My answer to these questions

"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" Very true, however there is a middle-ground in this argument, namely that of the allocated funds such as CEF and PSLV. Do I 'hold' the PMs I 'own' in these funds? The answer is of course no. Are they 'as safe' as if I had them in my own hands? Perhaps, maybe better as things stand today. Both of these funds provide some benefits worth considering prior to simply taking delivery of a heavy box from UPS. Both hold the balance of PMs in allocated status and in Canadian treasury vaults. While I am an American and love my country, I don't trust the men and women that run it with my wealth. An out-of-the-U.S. bank suits my particular level of paranoia. Second, I don't have a zillion dollars worth of PMs (yet, as hyperinflation is still a future threat) but taking delivery of my physical is simply impractical in terms of storage and security. Safe deposit box perhaps? Please see trust issue above as I don't believe a deposit box is any safer than my garage safe, and probably less so in the long run. So for now, CEF and PSLV it is.....subject to change as circumstances dictate. Pax

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