10 votes

The East is Buying Physical Gold While the West is Selling Paper Gold

In a video on CNBC the announcer makes the point that the price of gold is dropping as those in the west sell paper gold. In the east, however, the announcer notes that physical gold is being bought en masse mentioning the long lines to buy coins and bars to hold for the long term and t hat such purchases amount to a wealth transfer.

We noted last month that physical buying of gold and silver is increasing while the sales of paper gold and silver are pushing their prices down.

Earlier this week the CME reported a $640 million sell trade on the CME executed almost all in one shot. An example of paper manipulation?


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$1 billion in gold shipped from NY to South Africa

A massive shift of scrap gold moving from west to east. SA must just be a transit point / straw man. Something big is happening and it is not good for the USD. As soon as a major Eastern currency declares a move to the gold standard the house of cards begins to fall.

"It turns out the $1.1 billion swing is entirely due to unusual shipments of gold from the US to South Africa in February and March. So far this year, 20,013 kg of unwrought gold, worth $982 million, has left John F. Kennedy International Airport (JFK), in New York, for somewhere in South Africa, according to the US Census Bureau’s foreign trade division. (Unwrought gold includes bars created from scrap as well as cast bars, but not bullion, jewelry, powder, or currency.)"


"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

The west is counting on continued acceptance of Fiat currency

the east seems to be putting its trust in gold and silver

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China on Way to Currency Checkmate

When China does finally tell the rest of us how much gold they have, they will probably be just a move or two away from checkmate.

MEET THE NEW GOLD-BACKED WORLD RESERVE CURRENCY: http://www.theburningplatform.com/2013/06/04/meet-the-new-go...

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Gold Spikes 3% After Debt Ceiling Rises & U.S. Downgrade

Global sales of bullion bars and coins gained 78% in the second quarter, according to the World Gold Council, showing that demand actually accelerated.


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Asian demand for physical gold surges


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paper gold? you mean those

paper gold?
you mean those thin sheets of gold a mm thick

How about these


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Here's Andrew Maguires

Here's Andrew Maguires lastest interview. Also check out Art Cashins awesome article on the advance of inflation during the Weimar Republic.

Cashin Article

I love King World News

everyday there is a story about how gold is "on the verge of skyrocketing" "going parabolic" "headed to the stratosphere"
The audio clips are worth listening to just to hear "JOINING US NOW..."

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$640 Million Trade in Gold in a Minute on the CME


This tells me one of two things that makes trading in paper gold risky
-the gold market has some extremely dumb and volatile traders or
the gold market is manipulated

Either way it requires caution if you want to trade gold.

Physical Gold deposited in a third party insured vault and left there is over time is a hedge against the monetary and fiscal madness

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