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

Founder
turd [at] tfmetalsreport [dot] com ()

  332 Comments

Eric Original
Sep 1, 2011 - 7:28pm

Irene

New thread. Second one down because the PAGE thread stays at the top as a "sticky".

Look for "Thursday Morning Update"

zaphod
Sep 1, 2011 - 7:34pm

PAGE

To the guys asking about physical deliveries and currencies used in PAGE:
- It is clearly said in the video that PMs will be traded in yuan and usd.
- It also said that there will be storages placed all over the world.

Endzeit
Sep 1, 2011 - 7:38pm

Another very importan reason for PAGE

has not been discussed IMO. With the PAGE China could buy more gold stealthily, since the demand comes from the PAGE and no entity of the banking cartel sees the names of the buyers (different to COMEX). So the PAGE is the buyer and buys the gold in the world and simply can explain it by hinting to the millions of Chinese buyers - while the chinese governemnt could be a massive hidden buyer.

The reason: if gold is scarce and there is not enough available to satisfy the demand, of i.e. China plans to own, then it is crucial that nobody rushes the door. The mass may not notice, that certain buyers are trying to get as much gold in their hands as possible. And not only this: Gold is an indicator of trust in to fiat currencies - so an exploding POG is nit in the interest of the Chinese - they do not want to destroy the trust in the Dollar.

The longer i think about it, that's the only real reason for setting up something like the PAGE. Why? Because now you simply can buy on the COMEX and demand delivery. That's perfectly fine. But then the US-government and the banking cartel knows, who is buying physical. If you can establish a proxy, then they only see, that this proxy is buying and they do not know, who the single buyers are.

speconomist
Sep 1, 2011 - 7:40pm

Tanzanian Royalty Exploration UP 6 % after hours

Tanzanian Royalty Exploration (from Santa) is UP over 6% after hours, any reason?

Posted it in the Gold Miners forum, but maybe someone else here knows something.

Grrr... wrong thread, was reading this one but wanted to post in the other.

RightLeftWrong
Sep 1, 2011 - 8:10pm

Both Parties are responsible

Jones and Cris are correct. Obama is no worse than Bushie.

The dems have Dodd and Frank and the GOP though that the banks/fin services industry could self regulate - HA!

I got involved in politics back in 2003 and don't laugh....I was a huge fan of Howard Dean. In fact Dean and Ron Paul are my two favorite recent politicians. They are not as far apart as one might think at first glance. Its the People vs the System - not Dems vs. Repubs.

I ran for US Representative in 2008 as an Independent candidate. Took 18% of the vote as a 1st time candidate in a three-way race with an incumbent Republican and well known Democratic challenger.

I was a little early in 2008....perhaps 2012 will be more receptive to an Independent.

Would like you feedback on my latest post: Two Parties - False Choice

DK

Lord Koos bern
Sep 1, 2011 - 9:02pm

Well...

What is stopping a resourceful group of people from creating a similarly structured exchange here in the USA?

---

In short, TPTB... those with the recources to do it are part of the EE.

Timber Tim
Sep 1, 2011 - 10:47pm

Nice one Endzeit.They can use

Nice one Endzeit.They can use there large dollar holdings to buy it too.A nice way to reduce there exposure to the dollar.Keep buying American debt a while longer.Sorry keep buying the worlds debt a while longer.Control and transfer ,steady as she goes.

Timber Tim
Sep 1, 2011 - 10:55pm

@tmosley

"Anyone notice how easily Bob Pisani tilted up that 27+ pound bar of gold, and then held it up with two fingers?"

What you say tmosley,that he has strong wrists,from working out vigorously.

campagnolo
Sep 2, 2011 - 3:40am

Turd, I know you are sleeping

Turd, I know you are sleeping now but could you give your opinion on this as soon as you can:

https://www.zerohedge.com/news/massive-wave-lawsuits-be-filed-us-against-americas-biggest-banks-soon-tomorrow

at the same time of this news gold rally to $1850 and silver to $42.15. Thanks

illyasviel
Sep 2, 2011 - 3:44am

Silver going up :) but where

Silver going up :) but where does it end? How high can we go and can we hold it?

TerraHertz
Sep 2, 2011 - 4:02am

Like clockwork

Well that's typical. Silver flat for a few days, I'm forced to sell a kilo, and just a few hours later it goes vertically up.

I should pre-announce here when I'm going to sell. You could all make a lot of money using that as a buy signal.

ssoniindia
Sep 2, 2011 - 4:11am

These Guys get it !!!

Booming gold demand in Abu Dhabi

2011-SEP-01

gold demandJewellers in the United Arab Emirates are experiencing difficulties meeting rapidly growing demand for gold bullion. The strong rise in gold prices over recent months did not detract from domestic investors´ willingness to transfer capital into precious metals. On the contrary, locally operating gold traders reported that Abu Dhabi´s demand for 100 gram gold bars has reached new highs. Capital flight into safe havens continues among wealthy and middle-class investors, who fear that the world’s economy may face a double dip recession.

The monetary character of gold and silver makes both precious metals an interesting investment alternative. Paradigms have shifted since the outbreak of the worldwide financial crisis. Wealth preservation, rather than high returns, is now the main goal of investors. Precious metals have seen many different economic systems come and go in the last 5,000 years, while proving to be excellent safe havens. In times of fiat currency debasement and central bank money printing, investors are turning once more to precious metals.

Abu Dhabi´s jewellers have already adapted their business model to new market conditions. Sharply rising gold prices have led to a decline in jewellery demand in the United Arab Emirates, so many local jewellers have started offering gold bars to their clients. At Al Awadhi Jewellery, one of the largest jewellers in Abu Dhabi´s gold Souk, about 30 customers a day ask for gold bars, from 100-gram to 1-kilogram. The prices for these gold products vary between 22,000 dirham (about $6,000) per 100 grams and 220,000 dirham (about $60,000 per kilogram). According to Al Awadhi´s management, the demand for gold bars of these sizes has increased by 60 per cent in the last two months. Demand comes primarily from wealthy and middle-class investors seeking for safe investment alternatives.

donnojackshit
Sep 2, 2011 - 6:06am

$15 TRILLION Debt reached on debt clock

Holy stinking duck shit Batman! A couple more hours and we are there!

I Am The Unknown Comic
Sep 2, 2011 - 6:16am

Pailin's Patient Canned Ham Dip Recipe

Pailin's Patient Ham "BTFD" Dip

Ingredients:

  • 1 cup sour cream
  • 1/2 cup canned ham
  • 1 teaspoon Sherry (can substitute Cheryl, or Shirley, or a little bit of each ;>0)
  • 1 1/4 teaspoons prepared must"turd" - one must be prepared
  • 1 teaspoon grated onion

Preparation:

Do not buy fresh milk and do not buy fresh cream. Wait until cream rises, and then sours, and then buy from crazed cash strapped margined farmers desperate to sell. Don't buy on margarine.

Grind canned ham with a fork every day for weeks, preferably while chewing the fat. Grate onion until you find yourself crying, and that's when you know it's time to be buying. Mix all ingredients; chill thoroughly, and chill out for a very long time
Makes about 1 1/2 cups. Set aside, chill and wait a little longer until ham and cream has soured before telling people they can buy this fantastic dip (BTFD). Best served with S3 and garnished with a paltry sprig of RSI. Dip with your daily bread and drink the wine. Best Way To Eat: Wait, then take a nibble, then wait, then a small bite, then wait, then nibble a bit more, then wait. Take a bigger bite. Best when shared with newfound friends and/or total strangers. (some folks say that this is the Mother of All Buy The Dip Recipes)
Stormdancer ghost
Sep 2, 2011 - 6:23am

...

...

Stormdancer
Sep 2, 2011 - 6:59am

Boy, looks like Europe just

Boy, looks like Europe just went all wobbly on us again....

Edited to add:

RPT-Greece, EU/IMF pause talks; to resume in 10 days

(Reuters) - Greece's talks with EU/IMF/ECB inspectors on a fiscal adjustment programme before the release of a new aid tranche will resume in 10 days, a finance ministry official said on Friday.

"The first cycle of negotiations is completed. They (inspectors) will return in 10 days to see the budget plan for 2012 and conclude the procedure. Talks are not frozen," the official told Reuters.

Greek officials had not previously suggested that there would be a pause in the negotiations with the team of EU/IMF/ECB inspectors.

The country's finance minister will hold a news conference later on Friday.

The government and its international lenders said on Thursday, Greece would miss its budget deficit target this year, but they disagreed on how big the fiscal derailment will be and what is to blame.

(Reporting by George Georgiopoulos; Editing by John Stonestreet)

bern Lord Koos
Sep 2, 2011 - 7:17am

What is stopping a

What is stopping a resourceful group of people from creating a similarly structured exchange here in the USA? - bern

---

In short, TPTB... those with the recources to do it are part of the EE. - Lord Koos

Well, let's find some Arab investors and mythical libertarian billionaires and set one up in Austin, TX. We could call it the Texas Metals Exchange, or TEXMEX for short. It would be mildly spicy.

Watcher
Sep 2, 2011 - 7:21am

I remain convinced we are due

I remain convinced we are due a liquidity event this fall, anytime between now and the end of October. Greece has effectively defaulted and the rest of the PII(G)S are not far behind. An unfavorable decision by the German Constitutional Court in a week could well kill the Euro and start a cascading default of $600 trillion in derivatives.

https://www.321gold.com/editorials/mo...rty090111.html

Vincent
Sep 2, 2011 - 7:28am

Thanks TF!

I Love GLD & SLV... LOL

ohiometalman
Sep 2, 2011 - 7:36am

I am not buying any of this!

All of this makes sense (if your looking to distract the sheep), I am drinking my coffee and I read:

1 - Wiki Leaks all the info on banking

2 - Not more than and hour goes by and the government releases they will be sueing the pants off of the banks (oh, what timing)

3 - Its labor day weekend upcoming, so everyone is knocking off early for a long weekend

4 - 7.1 quake in Alaska

5 - Market watch releases "Obummer is to run on an 8% unemployment rate"

6 - next wee Obummer is making his "jobs plan" announcement

7 - We just took out the $15 trillion number on the debt clock

Finally - Gold and silver make another strong jump (actually the one headline I enjoyed reading)

This is going to be one hell of a day! Good luck to all!

turnoffthewater
Sep 2, 2011 - 7:59am

Wouldn't U know it

Well I finally decided to sell some Ag & Au for the upcoming payroll number knock down and Trichet goes and opens his mouth, Geesh..

ECB Doesn’t Rule Out “PIIGS” Gold as Collateral for Gold Backed Eurobonds, Sends Gold Soaring

Submitted by Tyler Durden on 09/02/2011 - 07:32 Bond British Pound Central Banks Citigroup European Central Bank Eurozone Hong Kong Ireland Monetary Policy National Debt Newspaper Reuters Swiss Franc Trichet United Kingdom World Gold Council

Today, the President of the ECB, Jean- Claude Trichet did not rule out a gold backed euro bond in an interview with ‘Il Sole 24 Ore’ published on the ECB’s website.

2turdledoves
Sep 2, 2011 - 8:23am

Non Farm Payrolls in 10 min

Hold breath for 7 minutes.

argent rampant
Sep 2, 2011 - 8:50am

$43+

$43+ at 0847. Happy I went to the coins shop yesterday!

rotbrador
Sep 2, 2011 - 8:53am

9.1% unchanged, jobs added=zero

Au +47 and change, Ag +1.5 and change

rotbrador
Sep 2, 2011 - 9:03am
Tecumseh
Sep 2, 2011 - 9:18am

Turd

Wherefore are thou, Turd?

Tom L
Sep 2, 2011 - 9:28am

SVM Rebuttal Letter

From my Scottrade NewsWire this morning. Stock is at $7.75 in the pre-market.

Someone dropped an anonymous letter on the SEC stating the company grossly over-stated earning and is lying about its cash position.

Silvercorp Notes Large Short Position in Stock and Receipt of an Anonymous Letter Attempting to Discredit the Company and Manipulate the Share Price

33 minutes ago - Marketwire via Comtex Marketwire

Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM)(NYSE: SVM) announces that there has been a dramatic increase in the short position of its shares over the past two months which is now approximately 23 million shares (Source: (https://www.dataexplorers.com/products/data), or 13% of the total outstanding shares.

Late yesterday afternoon, the Company was forwarded a copy of an anonymous letter dated August 29, 2011 addressed to the Ontario Securities Commission, the Company's Auditors, and various media outlets maliciously alleging a "Potential $1.3 Billion Accounting Fraud at Silvercorp". The anonymous author also stated that his firm held a short position in the Company's shares and intended to make his concerns known through internet postings. The Company has not confirmed whether the letter has been disseminated to all the addressees or if any postings have been made.

Recognizing that the anonymous letter may be disseminated the company wishes to proactively respond to the most serious allegations and has posted supporting information on its website to provide investors with comfort regarding the following allegations made in the anonymous letter:

1. The central allegation is that while Silvercorp reported net profit of US$66 million to the SEC in calendar 2010, financials purportedly available from the Chinese State Administration of Industry and Commerce (SAIC) shows "SVM" reporting a loss of US$0.5 million for calendar 2010. This allegation is false.

The SAIC website (https://wznj.saic.gov.cn, Attachment A) discloses the following for Silvercorp's four Chinese operating subsidiaries: (i) Henan Found filed net after income tax profit for Calendar year 2010 of RMB514,786,392; (ii) Henan Huawei filed a net loss of RMB6,091,388; (iii) Guangdong Found filed a net loss of RMB4,758,879; and (iv) Anhui Yangtze filed a net loss of RMB1,214,663. On a consolidated basis, the net profit of these four Companies is RMB502,721,462 (US$ 73 million). In addition on the cover of each filed SAIC document there is an anti-fraud code displayed which readers can use to independently verify those reports on the Chinese Certified Professional Accountant website (www.henicpa.org.cn). Further information to reconcile this China GAAP consolidated total net profit with the US$66 million figure will be posted on the Company's website. The anonymous author's numbers are clearly false.

As further evidence of Silvercorp's net profit, copies of the 2010 Annual Income Tax Filing Forms for Henan Found and Henan Huawei, which include a receipt chop issued by the State Tax Bureau of the Luoning County of Henan Province, is also attached (2010 Income Tax Filing Form, Attachment B). In the 2010 Annual Income Tax Filing Form, Henan Found reported net revenue of RMB964,812,316 (US$140.1 million), and a pre-income tax net profit of RMB590,727,919 and paid income tax payable of RMB74,441,229.

In China, on each sale of goods the seller must charge Value Added Tax, and the receipt issued for the paid value added tax must be approved and is stamped by the government. The Company is posting details on its website showing a reconciliation of the Value Added Tax paid by Henan Found on its revenues along with copies of the government receipts. (Attachment C)

2. The letter further alleges that the Company's cash position is grossly overstated. In fact:

(a) Silvercorp, as at June 30, 2011, had a cash position of $230.5 million - more than all the cash ever raised in the Company's history. Copies of Silvercorp's current bank statements (July 31, 2011) are available on the Company's website. (Attachment D);

(b) Since 2004 Silvercorp has raised in total $202.5 million through equity financings. Over the same period of time it has paid out $40 million in dividends, and has spent $31 million repurchasing its own shares, including $16.5 million in the currently ongoing Normal Course Issuer Bid announced June 17, 2011; and,

(c) The Company has $544.6 million in total assets and no long term debt as at June 30, 2011. 3. The letter also states that the grade of the Company's deposits is simply "too good to be true" compared to comparable companies. The Company acknowledges that its SGX Mine within its Ying mining district does have some of the highest grades in the industry. As disclosed in its most recent NI 43-101 report measured grades at the SGX Ying mine are 845g/t for silver. The mineral resource estimate for SGX was prepared by Mel Klohn L.P. Geol. of Spokane Valley, Washington, who is a Qualified Person with the firm of B.K Exploration Associates. Details of QA/QC procedures and assay lab information are described in the Technical Report filed on SEDAR under the Company's profile and available on the Company's website.

The Company has long established plans for an investor tour to the Ying mine site in the third week of September. All interested investors, analysts and media wishing to visit our mine site and view the ore and operations with their own eyes are asked to contact the Company to join the tour.

4. The anonymous author also alleges that Henan Found's 22.5% JV partner, the Henan Non- Ferrous Geological and Mineral Resources Co. Ltd., which is a state owned enterprise, sold a 5% interest in Henan Found for US$7 million, implying the Henan Found assets are worth only US$140 million. The anonymous author fails to mention that the transfer was to an affiliate. Based on the joint venture contract and articles of association of Henan Found, the 22.5% joint venture partner can assign its interest to an affiliate.

In accordance with good governance practices, the Company has established a task force of independent directors consisting of Dr. Robert Gayton, Paul Simpson, LL.B. and Earl Drake, Canada's former ambassador to China, to work with regulatory authorities to immediately investigate and discover the identity of the party behind these allegations. Silvercorp will pursue all legal options, whether in Canada, the United States, or China, to recover damages incurred by the Company as a result of these allegations.

Dr. Rui Feng, the Company's Chief Executive Officer, noted "this type of manipulative scheme is baseless and which depresses our share price and harms our shareholders. While we are fighting these manipulation schemes, we will continue with our ongoing share buyback program, increase our investor relations efforts, and continue to focus on growth through exploration, acquisitions, and mine development. We are pleased with our current operations and look forward to reporting another profitable quarter."

argent rampant
Sep 2, 2011 - 9:30am

Are we on the current thread?

I saw earlier posts here that indicate maybe we are not. But, if that's the case, where do we find the current one?

Eric Original argent rampant
Sep 2, 2011 - 9:37am

This is not the current thread

Look for "Thursday Morning Update"


Sep 2, 2011 - 9:41am

better and better wrote: I

better and better wrote:

I saw earlier posts here that indicate maybe we are not. But, if that's the case, where do we find the current one?

Please read what Turd said yesterday: https://www.tfmetalsreport.com/comment/22851#comment-22851

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