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  #11  
Old 05-26-2011, 12:45 PM
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Quote:
Originally Posted by Moonstruck View Post
So many 1/2 truths, so little time.
+1
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  #12  
Old 05-26-2011, 01:05 PM
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My question is if we moved to the gold and silver standard witch is what i think that IMF guy that got busted was working on.

What would that do to the price of physical gold and silver?

If it goes up wont the price of food and everything go up?
What would that do to property values would it start going up or down more?

I understand gold and silver is for saving wealth but personally i think silver is beyond that point and is now so low compared to where it i think it should be that its the only one that will make me money.
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  #13  
Old 05-26-2011, 01:33 PM
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Quote:
Originally Posted by packrat View Post
My question is if we moved to the gold and silver standard witch is what i think that IMF guy that got busted was working on.

What would that do to the price of physical gold and silver?

If it goes up wont the price of food and everything go up?
What would that do to property values would it start going up or down more?

I understand gold and silver is for saving wealth but personally i think silver is beyond that point and is now so low compared to where it i think it should be that its the only one that will make me money.
when FDR 'outlawed' the ownership of Au, it went from 20USD to 35USD. My guess is we will see another depreciation of fiat once converted (in recent times see Argentina).

So 100FRNs might become 70(insert new named currency here) and PMs will go up just as in '33, where 1ozt Au will be 100 to 150(new name currency)

we shall see
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  #14  
Old 05-26-2011, 02:00 PM
AlbyVA AlbyVA is offline
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Originally Posted by Silvercoin View Post
I'm more and more convinced that the IMF is going to play a role in the devaluation of the US dollar.


There is a push by some unknown hand in world economic circles get the
nations of the world to adopt the IMF's (SDRs) as the world's reserve
currency.

Personally, its a foolish idea because we would then have to start settling
debts with SDRs and that would be bad news if we are running a deficit
of SDRs in our treasury. We might as well use Gold as a world reserve
currency if we are going to use SDRs.
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  #15  
Old 05-26-2011, 02:24 PM
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Default In my opinion....

I wouldn't be surprised regarding the OP.

BUT for those that think we the USA and all of North America, does not have as much if not more gold and other PMs in the ground as the rest of the world, better think again. The PNW is the mother of all AU loads.

OTOH, South America has the most AG in the world still in the ground.
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  #16  
Old 05-26-2011, 03:53 PM
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The OP's premise could be correct. But besides the 300 tons per year that China actually mines, we have no clue how much they are buying from producers outside of China. It could be just as large an amount. Chinese investors pulled in 571 tons of gold in 2010. Now while that quantity is not going to the state, it is held in Chinese hands. The total quantity of gold held by China and its people is arguably more important than the quantity held by the Central Bank. They would well be growing it on the order of 1,000 tons per year.

The USA is the world's 4th largest gold producer.....80% of that coming from Nevada. Hence, Nevada is the world's 4th largest gold producer.

Numisgold
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  #17  
Old 05-27-2011, 12:10 AM
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Silvercoin Silvercoin is offline
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they can't be buying very much as they would move prices. even 10 billion going in gold would move prices up sharply.

the best they can do is expand their domestic production and consume it all.
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  #18  
Old 05-27-2011, 10:14 AM
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Quote:
Originally Posted by Silvercoin View Post
they can't be buying very much as they would move prices. even 10 billion going in gold would move prices up sharply.

the best they can do is expand their domestic production and consume it all.
Move prices? You mean like this ???

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  #19  
Old 05-27-2011, 10:44 AM
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Quote:
Originally Posted by Silvercoin View Post
they can't be buying very much as they would move prices. even 10 billion going in gold would move prices up sharply.
the best they can do is expand their domestic production and consume it all.
Since most of what is moving the price of gold upwards is investment demand rather than industrial/consumer demand that's a rather difficult thing to track. If China were consuming 30-100% of the recycled scrap showing up each year (500-1500 tons recycled annually) it would be hard to track where that's going. What if they were the final recipient of all the ****4**** schemes? In the first quarter of 2009 scrap gold reached an amazing 594 tons. The GFMS can reasonable track gold miner production, but how about all the world's recycled gold, especially jewelry? The world's biggest "miner" is the recycler.

Numisgold

Last edited by Cajus : 09-05-2012 at 12:57 PM. Reason: For legal reasons we have been advised to remove any references to the ****4**** company from the forum
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  #20  
Old 05-28-2011, 03:06 PM
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There is no way China could have got 500 tons of scrap gold in 1 year.

It took then 8 years from 2000 to 2008 to accumulate 500 tons of gold in stealth so how could they have got 500 tons in 1 year since then especially since investment demand has climbed?

Secretly China feared in 2008 that the US with 6500+ tons of gold might dump the dollar and switch to a gold backed currency. With only 1000 tons in their reserve, they would be at a disadvantage if the US suddenly did this.

China originally claimed to have only 500 tons but suddenly announced in 2008 that they had an additional 500 tons which they had accumulated in stealth. Reason they did that is because they feared the US might dump the dollar if it felt China was at a 13:1 rather than 6:1 disadvantage in terms of gold.

Even if China consumes their entire domestic mine production which is merely 250 tons per year, it would take many decades to catch up with the US stock pile by which time the US would be even further ahead.

In order to not provoke hostilities with China by declaring their mountain of paper dollars worthless overnight, the US will give them some time to accumulate gold. That will offset the loss of their paper dollars which US plans to inflate away after a switch to worthless IMF SDRs. But they wont be allowed to accumulate too much gold because US wants to maintain a large enough lead over them to remain the #1 superpower. I suspect the US has far more than the 6500 tons it claims and so too Canada.

Last edited by Silvercoin : 05-28-2011 at 03:08 PM.
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