Wednesday, April 8, 2020

Gresham’s Law And The Gold And Silver Squeeze

by Dave Kranzler, Investment Research Dynamics:

“Bad money drives out good money.”  When Gresham put forth this proposition, sovereigns were diluting gold and silver coins with metals of lesser value yet the diluted coins were given the same value for legal tender purposes as the more pure coins. Gresham observed that the more pure coins would be hoarded and the lesser value coins would be used for trade.

Sound familiar?  Go find pre-1964 dimes, quarters and half-dollars and try to buy them for their legal tender value.  Pre-1964 silver coinage contains 90% silver.  Post-1964 silver coins are made from nickel and copper.  No one who holds pre-1964 coins would use them for their face value. They have disappeared from circulation. The melt-value of the silver in a 1963 quarter currently is $2.60.

COMEX COMPLETELY BROKEN(BLEW UP)

by Harvey Organ, Harvey Organ Blog:

GOLD ROCKETS NORTHBOUND BY $32.00 TO $1650/SILVER ALSO RISES BY 50 CENTS TO $14.85/COMEX COMPLETELY BROKEN(BLEW UP)/CORONAVIRUS UPDATES FROM AROUND THE GLOBE//BORIS JOHNSON IS SERIOUS CONDITION IN UK/TAKEN TO ICU//JAPAN ISSUES A STATE OF EMERGENCY SET FOR TOMORROW//TRUMP FURIOUS WITH CHINA..JUST THE START..//OIL MEETING PUT OFF//PROBABLY THE MEETING THIS FRIDAY//SAUDI ARABIA SET ON KNOCKING OUT THE SHALE BOYS//THIS WILL BE A WORK IN PROGRESS

‘Gold Bugs’ Smug as Precious Metal Set to Thrive Amid COVID-19 Pandemic in ‘Financial Apocalypse’

from Sputnik News:

For years, “gold bugs” – investors encouraging buying precious metals at low prices as a hedge against future global economic risks, were shunned amidst consistently rallying global equities markets.

“Gold bug” analysts who have long advocated investing in gold and silver ahead of an allegedly looming “financial apocalypse” appear to be correct as markets crash and the accumulation of physical metals is predicted as likely to pay off in a big way, writes Bloomberg.

The Comex Does Not Trade Gold

by Dave Kranzler, Investment Research Dynamics:

Unequivocally, gold does not trade on the Comex. The Comex trades paper gold derivatives. It is a futures and options exchange on which a small amount of 100 oz. gold bars change ownership each contract month. The transfer of title is facilitated by the creation of an electronic record called a “warrant.” But even these “warrants” which assign title to specific bars are derivatives. Presumably gold is “delivered” to the parties who stand for delivery (the “stopper”). But that “delivery” most commonly is the electronic transfer of a warrant from the entity short a paper gold contract to the entity who is long the same.

There’s a major sovereign debt crisis looming

by Simon Black, Sovereign Man:

By the mid 1300s, the Republic of Florence in modern day Italy had experienced one of the greatest economic booms in human history.

In less than a century, Florence had grown from a tiny, irrelevant backwater to become one of Europe’s largest cities and preeminent financial center.

The expansion was truly impressive. Florence’s population had grown 10x. It had become a leading manufacturer in both weapons and textiles.

(Many etymologists believe the word ‘pistol’ is derived from the name of a town near Florence called Pistoia, which was renowned for its quality arms.)

A Link For GATA

by Turd Ferguson, TF Metals Report:

As the new-and-improved Comex delivery charade continues for April, additional details are being brought forth to assure the world that there is plenty of gold available for immediate delivery. That’s nice. What’s always left out, however, is how many separate entities believe they own each and every ounce. 20? 50?? 100???

So let’s begin today with another check of the Apr20 gold “deliveries”. As of last evening, the total has reached 21,909 contracts for 2,190,900 ounces of gold.

A primer for gold newbies

by Alasdair Macleod, GoldMoney:

The purpose of this article is purely educational. Increasingly, the wider public is turning to gold in a spontaneous reaction to financial and economic problems that have become suddenly apparent, hastened by the spread of the coronavirus. For everyone now thinking of buying gold it is a leap into the unknown, so they should know why.

It is not just the financially inexperienced, but investment managers and financial advisors are equally unaware of what is happening to money and capital markets. We are in the early stages of a radical debasement of state-issued currencies which is on course to collapse the entire financial system.