REAL Money vs. Paper Money

Dramatic Spike In Fund Flows Into The Gold ETF GLD And A Major Warning On The U.S. Dollar

For 180 years, it was said the dollar was ‘as good as gold.’ In fact, it was as good as gold; U.S. government creditors could convert their dollars to U.S. gold. The currency was 100% convertible to gold in foreign exchange from 1792 (President George Washington) until the dollar’s tie to gold was severed completely on August 15, 1971 (President Richard Nixon).

The colossal decision to remove the discipline of gold from the dollar was called the “NIXON SHOCK.” Overnight, the dollar was a “fiat” currency (backed by nothing tangible).

Although Nixon killed the gold standard,
the monetary role of gold did not die.

Gold is timeless money. Its sole purpose is to store value. All currencies are constantly measured against the timeless value of this monetary metal. According to the former Board Chairman of the Federal Reserve, the dollar is no match for “the golden measuring rod:”

“Yes. Remember what we’re looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.” (Address by Alan Greenspan to the Council on Foreign Relations, Oct. 29, 2014, Gillian Tett, “Financial Times” of London.)


Gold Coins

  • From 1792 to 1933, 1 HEAVY dollar was equivalent to 1/20th of a 1-oz gold coin.

  • From 1934 to 1971, 1 LIGHT dollar was equivalent to 1/35th of 1 oz of gold.

  • On the day credit collapsed worldwide (August 9, 2007), 1 FIAT dollar equaled 1/662nd of 1 gold oz.

  • On March 14, 2008, the dollar fell below 1/1,000th of 1 0unce.

  •  One dollar now equals 1/1,772nd of a 1-oz gold coin (as of 6/27/2020).


Since the dollar was debauched in 1971, the currency is down 3,600% against gold (it now takes 36 times as many dollars to buy a 1-oz gold coin). On the day of the global credit-collapse (August 9, 2007), gold was $662/oz. Today, it takes more than twice as many dollars to buy the same gold coin. In only 13 years, the dollar has lost about half of its purchasing-power. 

2007 dollars had 2 times more strength (to buy food, housing); 1971 dollars could buy 36 times more goods and services; and 1933 dollars had 65 times more purchasing-power.


Before the dollar was delinked from silver and gold, its purchasing-power was inflated away systematically. Until 1971, ‘money-printing’ was restrained by the nation’s finite supply of gold. Today, the dollar-supply is unlimited.

Now that the dollar does not represent tangible value, the value of U.S. currency is derived from faith (confidence in the “full faith and credit” of government).

But according to monetary history, faith-based currencies (not backed by gold and/or silver) all end the same way. In the last stage, a sudden loss of confidence is the trigger that unleashes ferocious money velocity. That happened twice in U.S. history:

  • In 1776, Continental dollars were printed to finance the Revolution. When people realized the dollar was not backed by silver, panic ignited near-hyperinflation (47% inflation per month).** Congress redeemed the dollars at 1,000-to-1: 1 SILVER dollar equaled 1,000 PAPER dollars.
  • Congress created Greenback dollars to pay for the Civil War. When people lost confidence in the currency, they spent the money as fast as possible. Inflation peaked at 40% per month in 1864 (Greenback $1 fell to 35¢).**

Image result for 1923 us silver dollar

Germany’s booming stock market was the envy of Europe from 1920 to 1922.*** When market psychology reversed, confidence in the papiermark (ℳ) collapsed. In 1919, Germans paid 16 marks for U.S. silver dollars. By the 1923 German hyperinflation, 1 SILVER dollar was equivalent to 4.2 trillion arks.

When currency is backed by nothing, there are no limits to the supply of printing-press-money. As a currency’s value goes down, it takes more and more of the FUNNY MONEY to buy REAL MONEY. For example, it now takes millions of bolívares to buy gold in Venezuela. Last August (2018), 1 Venezuelan bolívar equaled 1/211 millionth of 1 oz of gold.*


  • On August 9, 2007, a single “credit event” (Banque BNP Paribas) sparked a worldwide credit-collapse. Within hours, the dollar was in free-fall; market liquidity evaporated; inter-bank lending locked up; and the international monetary system FROZE.

  • In 2008, Bear Stearns, Merrill Lynch, and Lehman Bros. collapsed; Washington Mutual Savings Bank was seized after a 9-day bank-run. WaMu was the largest-ever bank failure; the Dow Jones Industrial Average had the biggest-ever 1-day drop; Lehman was the largest-ever bankruptcy

  • The banking system came close to locking up again in Nov. 2011, Oct. 2014, and Aug. 2015. At the Ludwig von Mises Institute, Dr. Jürgen Stark, then Chief Economist for the European Central Bank, told the audience that the only thing keeping the global financial system going since 2008 is money-printing:

“The whole system is based on pure fiction, groping since 2008 to avoid a second Lehman, which if it happens, the system will not survive.” (Professor Dr. Jürgen Stark, then ECB Chief Economist, European Central Bank;


Financial markets are inter-dependent. The next time markets seize up, loss of confidence in one major currency could trigger implementation of controls on cash and investments. You need portfolio insurance (from third-party risk). Physical gold and silver coins will give you liquidity under all market conditions. But if you don’t hold it, you don’t own it:

Get American Silver Eagles
(new 1-oz silver dollars).

Get American Gold Eagles
(new $50 1-oz gold coins).

Take delivery of GOLD & SILVER DOLLARS.
REAL MONEY stores value for your family.


Forbes: “Wait Until You See The Price of Gold In Venezuela Right Now,” by Frank Homes, August 6, 2018.

** Thomas E. Woods, Jr., “The Revolutionary War and the Destruction of the Continental,” Ludwig von Mises Institute Library,, October 11, 2006.

** HYPERINFLATION is a rate of at least 50% per month. U.S. monthly inflation statistics from Professor Steve Hanke and Professor Alex Kwok, On the Measurement of Zimbabwe’s Hyperinflation, “The Cato Journal,” Vol. 29, No. 2, pp. 353 and 354, Spring-Summer 2009, The Cato Institute.

*** Professor Hans F. Sennholz, “Hyperinflation in Germany: 1914-1923,” Mises Daily Articles, Library of the Mises Institute,, October 27, 2006.

*** Steven B. Webb, The Supply of Money and Reichsbank Financing of Government and Corporate Debt in Germany, 1919-1923, “The Journal of Economic History,” Vol. 44, No. 2, pp. 499-507, Cambridge University Press, June 1984.

Submitted by Denise Rhyne.


World Currency Exchange Calculator



TABLE of CONTENTS: Ancient Monetary System; CARAT Weights; KARAT Purity; TROY Weights; METRIC Weights; MILLESIMAL Fineness; FAR EAST Weights; POUND (Pound Sterling, Pennyweight, Sovereign); DOLLAR (Old Gold Coins); Historical GOLD-to-SILVER RATIOS (U.S. 90% Silver Coins, new American Eagles); BIBLE Weights: TALENT, MANEH, SHEKEL, GERAH, BEKAH (Table); WORLD COINS (Gold Contents).Click for a larger photo


Above: $5 Indian, $20 St. Gaudens, and $10 Indian ($1 was equivalent to a unit of gold weighing 0.048 oz or 23.22 grains). The official price of gold was fixed at $20.67/oz (1792); raised to $35 (Jan. 1934); raised to $38 (Dec. 1971); the final official price was raised to $42.22/oz (Feb. 12, 1973).

Money, Metal and Margin Calls

The dreaded event for an investor is getting a margin call from a brokerage. This means he has miscalculated his use of leverage, be it a trade or financial bet. Earlier this year several large banks had a “margin call” because they had too many US Treasury bonds on the balance sheet. The 40% decline in value killed their capital structure and they became insolvent, requiring a government bailout.

Bank solvency has become one of my prime concerns as I structure my personal and family finances. Naturally, this comes up in discussions with clients. Investigating banks leverage, keeping account balances under FDIC coverage limits, and spreading accounts between several institutions are good starts. It is my belief that we will see many more bank failures, and the tool of “bail-ins” will be a feature for “saving” the system. In bail-ins, banks use money from unsecured creditors, which includes DEPOSITORS (like you) and bondholders to restructure their capital. Mechanisms for this practice have been coded in place by the Dodd-Frank legislation from a few years back. 

The bond markets have shown, wit rising interest rates, that risk appetite is waning. This has also shown up in a peaking stock market. This peak optimism allowed unicorn stock bubbles and unlimited fiscal spending, resulting in more money borrowed. Fleeing bad debt and debt payments has given the U.S. Dollar a rally. Get rid of the trash and give me something real is the operative theme now.

Well, did you notice how precious metals rallied? Gold is Money. It isn’t debt. Have you seen who is buying? Central banks are, especially China.

Return now to the banking discussion. We use banks to keep transactional cash to make purchases and pay bills. However, the function of banks providing a holding spot for savings has now become quite risky. Monetary inflation is destroying the purchasing power of our “accounting units,” also known as Dollars or Euros. Debasing the currency leads to owners of paper assets to sell and be ahead of the devaluation. The smart money will leave paper assets for “hard assets,” such as precious metals, land and other physical assets.

Holding precious metals outside of banks will be the simple way to protect against FIAT risk, and I am not talking about the Italian car.

Gold and Silver are talked about all the time in this environment, but I wanted to bring your attention to another interesting metal’s turning point for price. Palladium.

Palladium is rare and considered one of the four main precious metals. Palladium and its brother platinum are also known as industrial metals. Their unique properties as catalysts are essential. They are mined in South Africa, Russia, Zimbabwe, Canada and the USA. You can see the political risk with some suppliers in unstable countries.

I recently surveyed long term price charts for platinum and palladium and was especially struck at how oversold Palladium is. The chart below uses exponential price charting versus arithmetic prices. Long term periods smooth out better this way.

Note : The price range of $800 to $1,000 is a buying opportunity for palladium. Not shown, but I would say for Platinum, $700 – $900 is a buy.


The next run on physical gold will dwarf the last, worldwide run. Long before the current lockdown, exchanges in London and New York were short of bars “eligible for delivery.” *


Today, the true price of gold is quite a bit higher than the “spot” price quoted in the paper market. Shortages are driving the price of physical gold sky-high.

The soaring price is propelled by HUGE supply-deficits in New York and London of “Good Delivery” bullion (100-oz & 400-oz bars).

Large buyers want actual gold,
not promissory pieces of paper.


In the West, few investors own PHYSICAL gold. Most people prefer the ease of buying and selling precious metals in the form of derivatives: ETFs (Exchange Traded Funds), swaps, options & commodities futures contracts.

Tremendous flows of money into these highly-leveraged instruments establish prices. However, the fractional reserves underlying their value are now depleted. Since 2008, the Eastern Hemisphere has been vacuuming up “Good Delivery” bullion from the exchanges.

The transfer of gold and silver from the West to the East is massive and ongoing. As physical bullion flows to the private vaults of the über-rich, the trading desk of the Federal Reserve “manages” spot prices in the paper market.**


  • The exchanges rarely deliver PHYSICAL bars.
  • The vast majority of accounts are settled with cash.
  • Banks have unlimited supplies of synthetic bullion.

Over-the-counter markets in London and Zürich alone trade more than 940 tons of gold PER DAY. Yet, global mine production increases the gold supply by only 2,500 to 3,000 tons PER YEAR. This means more gold is traded in Europe every 3-4 days than is mined worldwide in 1 yr.

How is it possible?
According to trade data from the LBMA (London Bullion Market Association), UBS (Union Bank of Switzerland), ICBC Standard Bank (Industrial & Commercial Bank of China), HSBC (Hong Kong and Shanghai Banking Corp) & JPMorgan predominantly trade PAPER gold (“synthetic positions”), rather than PHYSICAL gold.

  1. Most bullion traded in this market is mere PAPER.
  2. Digital supplies enable unlimited naked-shorting.**
  3. Prices are determined by banks’ synthetic positions.

2011 Bullion Bank Run

PAPER short-sellers can usually keep a lid on prices. The last time the pricing mechanism for precious metals was controlled by PHYSICAL FUNDAMENTALS was in 2011.

That summer, major mints in Canada, Austria, Perth, South Africa and the U.S. completely ran out of gold. Silver supplies were just as tight. For six to eight weeks, dealers across the nation were unable to satisfy over-the-counter demands. Dealers went “Bid only” — “No offer.”

Spot silver rose from $4.56 [Jan. 2002] to $6.40 [Jan. 2005] to $9 [Jan. 2006] to $13 [Jan. 2007] to $15 [Jan. 2008]. On April 28, 2011, silver hit $49.82/oz.

The year before the global credit-collapse, gold was $525/oz [Jan.5, 2006]. The day credit FROZE worldwide, gold was $662.60/oz [Aug. 9, 2007]. On March 14, 2008, gold surged past $1,000/oz for the first time ever. At year-end in 2010, gold was $1,180/oz. Acute shortages drove that run-on-gold to $1,903.30/oz [Aug. 22, 2011].


Today, there is little connection between the enormous “paper short” positions held by the bullion banks and the meager stocks of unencumbered bars (deliverable bars*) vaulted in their warehouses.

Since the 2008 crash, the world’s biggest refiners have been working around-the-clock (24/7) to satisfy demand for gold and silver. However, shortages and delays have occurred every year at the 5 major mints. Product scarcity is now obvious to coin dealers across the United States.

PHYSICAL gold & silver eliminate counter-party risk. Take delivery of available products before the PAPER market completely loses its grip on spot prices.

Gold’s rise is just getting started. On the upside, there will be little resistance for a long, long way.

Submitted by Denise Rhyne

* “REHYPOTHECATION is the practice of using the assets held as collateral for one client in transactions for another. This allows the prime broker to re-lend client securities (or gold) held as collateral… Collateral is used by investment banks for their own purposes” (Financial Times Lexicon).
“Encumbered” fractional-reserves have been “rehypothecated“ − lent, leased, swapped, shipped, sold, resold (the same bars sold to multiple owners), or pledged as collateral multiple times.
** NAKED SHORTING is a trading technique used whenever metals break to the upside. Prices are brought down by massive, concentrated sales of PAPER gold or PAPER silver. Contracts representing millions of ounces are dumped simultaneously on exchanges.
Short-sales are “naked” when sellers do not insure that the bullion can be borrowed or secured prior to sales. If sellers do not have the gold or silver to fill the contracts (if bullion is unavailable), the corresponding half of the transactions cannot be fulfilled. A handful of banks perpetually control the “open interest.”

Washington Gold Exchange LLC
Craig Rhyne offers personalized service and competitive prices.
Call (206) 719-6368.
See our
Model Precious Metals Portfolios.

INFLATION: “An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices. The rise in prices is caused by an increase in the volume of paper money issued.”Webster’s Twentieth Century Dictionary, George Ogilvie, USA, 1904.





As a currency’s value goes down, it takes more and more of the FUNNY MONEY to buy REAL MONEY.

Dollar Will Lose Value Over Time: Guaranteed.

Until 1971, U.S. currency represented tangible value. Today, the dollar has no intrinsic value; and the dollar-supply is unlimited

In 1971, the value of the dollar was tremendous (thirty-five dollars equaled the value of a 1-oz gold coin). Since then, the dollar has fallen 3,600% against gold (it now takes 36 times as many dollars to buy the same gold coin).

Over time, gold preserves purchasing-power. The sole purpose of gold is to store value. On the other hand, printing-press-money loses value over time. If you keep your savings in dollars, money-printing will destroy your purchasing-power — it is guaranteed.


The day  credit collapsed around the world (August 9, 2007), the London gold price was $662.60/oz. After 2007, China implemented a strategy to slowly de-peg from the PETRO-DOLLAR, and aggressively add gold to its foreign exchange reserves. On March 14, 2008, people were shocked when gold surged past $1,000/oz for the first time ever

Image result for forest for the trees luke gromen


Since the global credit-collapse in 2007, the East has been accumulating most of the world’s gold production. Chinese, Russian, Indian, and Middle Eastern purchases have been unprecedented. Buyers from Shanghai, Hong Kong, Thailand, VietNam, Turkey, Singapore, Dubai, Bangkok, etc. vacuum up available bullion on every price-dip.

Gold Kilobars

In the last ten years, there has been a massive draw-down of deliverable gold at the London Bullion Market Assn. [LBMA] and the New York Commodities Exchange [COMEX]. As a result of scrap shortages, the world’s five major refineries have waiting lists for deliveries of pure bullion. Warehouse inventories of available “Good Delivery Bars” [400 oz gold bars, 1,000 oz silver bars] are extremely low at bullion banks. 

Image result for naked silver shorting

Two of the bullion banks under pressure are JPMorganChase Bank (custodian of the silver Exchange Traded Fund “SLV”) and the Hong Kong & Shanghai Banking Corp (HSBC is custodian of the gold ETF “GLD”).


Today, more than half of the world’s population believe that the only real money is gold and silver. On the other hand, less than ½ of 1% of Americans own physical precious metals. Most investors in the West buy PAPER silver and gold ‘derivatives’ [options, commodities futures contracts, and ETFs].

The PAPER market is an entirely ‘different breed of cat’ than the PHYSICALS market. Physical bullion cannot be printed; the supply is limited. The highly leveraged PAPER market has an unlimited, ‘virtual’ supply of silver and gold. In this securitized, fractional-reserve system, they sell gold and silver contracts without the bullion to back the contracts ounce-for-ounce [the practice of selling 100s of ounces to every 1 oz of stored physical silver is called “naked shorting.”]*


Thanks to an unlimited supply of PAPER silver and gold, the digital market is in control of spot prices. Prices do not reflect actual supply and demand for physical bullion. During intervals in 2011, 2013, 2014, and July 2015, supplies of silver were so tight, U.S coin dealers were unable to satisfy over-the-counter demands. But each time, the market was flooded with massive tonnage of PAPER silver to suppress the price.

Shortages of actual silver and gold bullion can be hidden as long as naked shorting controls the pricing mechanism. The last time free-market forces prevailed against the trading desk of the New York Federal Reserve was in 2011.When silver and gold supplies completely dried up around the world, silver climbed 160% in only nine months. Coin dealers across the nation were “Bid only” – “No offer.” 



The official money supply quadrupled from 2009 to 2014. But the Federal Reserve no longer reveals how much or how fast the total monetary base is expanding. To avoid the spotlight on the ballooning total, the Fed quit publishing the “M3” monetary aggregate in 2006. [Image of the Adjusted Monetary Base courtesy of Zerohedge.]

Image result for st louis fed adjusted monetary base

The chart above shows how rapidly the monetary base has been expanding. Money-printing is showing up in rising costs: in the inflated stock market and select real estate markets, for insurance, rent, utilities, tuition, medical care, groceries, gold, and crypto-currencies.


A whole lot more money-printing is headed our way. And deliverable bullion in the West is in short supply. Extreme product shortages always end up triggering runs to higher highs. The next move up in precious metals will be propelled by HUGE supply deficits. The exchanges are selling the same ounce of physical gold or silver over and over. It is estimated there are 400 claims to every 1 oz of “deliverable” silver at the N.Y. COMEX.

Silver is called ‘the poor man’s gold.’

Take delivery while actual coins are readily available in North America. If markets are disrupted, old U.S. silver dollars and U.S. 90% silver dimes, quarters, and halves [pre-1965 coins] could be used in small transactions. PHYSICAL silver and gold coins are valuable under all market conditions. Don’t end up holding a piece of paper!

Submitted by Denise Rhyne


* NAKED SHORTING (three articles):

The British Pound Sterling lost its status as the primary basis of global trade in 1944. Why? Because the Treasury of the United States held title to about 4/5ths of the world’s officially-held gold reserves [more than 20,000 tons after WWII]. The dollar became the world’s “reserve currency” because U.S. government creditors could convert their dollars to U.S. gold [from 1792 until Aug. 15, 1971].


Since gold convertibility was suspended in 1971, the dollar has retained its reserve-currency status because of its forty-year monopoly in settling OPEC oil trades.


TABLE of CONTENTS: Ancient Monetary System; CARAWeights; KARAT Purity; TROY Weights; METRIC Weights; MILLESIMAL Fineness; FAR EAST Weights; POUND (Pound Sterling, Pennyweight, Sovereign); DOLLAR (Old Gold Coins); Historical GOLD-to-SILVER RATIOS (U.S. 90% Silver Coins, new American Eagles); BIBLE Weights: TALENT, MANEH, SHEKEL, GERAH, BEKAH (Table); WORLD COINS (Gold Contents).


We Already Have HYPER-CREDIT.

The combination of currency debasement, falling production, and rising debt always ends in credit collapse. In all history, there are no exceptions. But ten years ago, few Americans had ever considered the possibility.

Image result for credit freeze

Suddenly, on Aug. 9, 2007, inter-bank lending locked up; the dollar was in free-fall; and credit completely FROZE here and around the world. The following year, Bear Stearns collapsed (March); Merrill Lynch and Lehman Brothers collapsed (Sept. 15); and the stock market crashed (Sept. 29, 2008). The Dow Jones Industrial Average had the biggest one-day drop in U.S. history; Lehman was the largest bankruptcy in U.S. history. 

Since the global credit-collapse in 2007, the economy has been rocked by a series of violent after-shocks: the banking system came close to locking up again in Nov. 2011, Oct. 2014, and Aug. 2015. The Federal Reserve has kept the dollar-reserve system afloat by ‘doubling down’ on the excesses that led to the debt crisis. For nine years, the world has been on the biggest debt-binge of all time (U.S. debt has more than doubled). 

The Federal Reserve’s remedy for the on-going debt-crisis is the creation of HYPER-CREDIT. The entire financial system is sustained by exotic financial instruments called “derivatives.”

Image by Martin Kozlowski, Wall Street Journal.

The Federal Reserve monetizes debt (here and abroad). From nowhere, trillions of dollars spring into existence (new debt becomes brand-new credit). The Fed and other central banks have created, issued, financed, or enabled an estimated 1.4 QUADRILLION dollars of derivatives debt to ‘paper over’ the fragile banking system. The number attached to this debt has three more zeros than the combined value of all of the goods and services produced on earth (10 to the 15th power)!

 $1 trillion = one million million dollars
$1 quadrillion = one thousand million million dollars

By definition, one thousand trillion dollars of derivatives debt “derive value (cash flows) by reference to underlying assets.” What possible collateral could give value to more than one quadrillion dollars of derivatives debt? The following logical conclusions can be made about this historic debt bubble:

  • There is relatively little real collateral underlying the debt.
  • The debt can be repaid only by more HYPER-CREDIT.
  • The debt is merely delaying a monetary catastrophe.
  • The climactic end of the bubble is certain (Herbert Stein’s LAW): “If something cannot go on forever, it will stop.”

A few years back, Dr. Jürgen Stark, an economist with the European Central Bank, shook the financial world when he told the Ludwig von Mises Institute that the global financial system came “within hours” of collapse in Nov. 2011. He said:

“The whole system is based on pure fiction, groping since 2008 to avoid a second Lehman, which if it happens, the system will not survive.” [Professor Dr. Jürgen Stark, European Central Bank;]

Dr. Stark told the audience that the only thing keeping the system going since 2008 is money-printing; central bankers are “flying blind;” no one knows how much money (credit) is being created or where it is going. He recommended allocating savings to traditional safe-havens such as silver and gold. 


The year before the global credit-collapse, gold was $525/oz [Jan.5, 2006]. The day credit FROZE worldwide [Aug. 9, 2007], the gold price was $662.60/oz [London p.m. fix]. On March 14, 2008, people were shocked and amazed when gold surged past $1,000/oz for the first time ever. However, soon after the stock market crashed [Sept. 2008], gold dropped 30% (from $1,000 to $700/oz) and silver fell 70% (from $21 to $9/oz).

Did the precipitous fall in silver and gold prices mean low demand and abundant supply? NO. The ‘hit’ on precious metals was accomplish by “naked” short-selling.* Every scared gold-bug wanted coins; and every U.S. dealer ran completely out of coins and bars – almost overnight

Within a few days, the supply of PHYSICAL gold and silver dried up all over the country. The major world refiners had nothing. NO gold or silver was available from the five major world mints: Canada, Austria, Perth, South Africa, and U.S. Mint. Dealers could not get delivery for well over a month. In 2011, the same thing happened; and silver deliveries were delayed even longer. When the next financial crisis rocks the dollar, will supplies of gold and silver completely disappear?


Today’s market indicators do not reflect what is happening beneath the surface. The monetary system ‘as we know it’ is coming to an end. The International Monetary Fund says a “Money Standard Shift” will be concluded during the next crisis. 


If you take delivery of silver and gold, you will have protection from illiquid markets, third-party risk, and overnight currency devaluations. Today, the price of the 1-oz gold coin [above] is $1,350. Since the day credit collapsed, the PAPER dollar has lost more than half of its value against PHYSICAL gold.

Submitted by Denise Rhyne.


* Gold and the dollar are competing currencies. A rising gold price indicates a failing dollar. For this reason, the trading desk of the Federal Reserve “manages” the spot price with a trading technique called “naked” short-selling. When gold and silver break to the upside, spot prices are brought down by massive, concentrated sales of derivatives (PAPER gold and silver). Contracts representing millions of ounces are dumped simultaneously on London and New York exchanges. 

Things You Probably Didn’t Learn in School About Gold & Silver-pdf : Includes articles on NAKED SHORTING.


“Indeed, one can be deceived in many ways; one can be deceived in believing what is untrue, but on the other hand, one is also deceived in not believing what is true.” [Danish philosopher Søren Kierkegaard, 1847 Works of Love, Haper Perennial, p. 23, 1962; Kjerlighedens Gjerninger, SKS, vol. 9, Gad & Søren Kierkegaard Forskningscentret, p. 13, 2004.]

Platinum Markets-Brace for Uncertainty, Keep Door Open for Opportunity

by Aran Murphy

The market-makers wondered aloud at the end of 2016: Which way will our economy turn with new policy makers in Washington? Will our national debt become difficult to service with higher interest rates? Will our unfunded pension liabilities force broad-scale local bankruptcies? Or will we pull the government back, liberate our taxpayers and traders, and allow our entrepreneurial base to do what it does best?

A consensus emerged in December that our days of forestalling hard debt and demographic-driven choices are limited. Many worry that it is too late, or that the incoming President is too politically inexperienced to put our national finances back on track. Others think – with the recently elected – we may see tremendous opportunity to re-establish growth and loose our economic fetters. From bonds to stocks to more pure measures of market volatility, President-elect Trump continues to bring opposing views out after long years of – what many will consider stagnating – policy consensus.

After the US elections, stock market indices took off. The bond markets tumbled. The Federal Reserve Bank raising rates didn’t help bonds, of course. Gold, silver and platinum prices eased as the world creeps out from under the Sword of Damocles that has long been the official policy of zero interest rates(One can’t have functioning capital markets when central banks are pricing capital at zero). The markets overall seem tentative about what direction, economically, the US should expect. Will the US experience crisis, or will it find the real growth in incomes and economic opportunity that has eluded us for the past 12 years? Continue reading Platinum Markets-Brace for Uncertainty, Keep Door Open for Opportunity

Beware Of The Dollar: The U.S. Ponzi Economy Is Malfunctioning.

Gold is the true SAFE-HAVEN currency. The dollar is ‘strong’ only when compared to more toxic currencies. Since the 2007 credit-collapse, the dollar has fallen 100% against gold. In other words, it now takes twice as many dollars to buy the same amount of gold.

On the day markets FROZE worldwide [Aug. 9, 2007], the price of gold was $662.60/oz [London p.m. fix]. It now takes twice as many dollars to buy the same Troy ounce of PHYSICAL gold. The price of gold is signaling declining confidence in the dollar-reserve system.


It is generally acknowledged the current crisis in financial markets began with a liquidity freeze on August 9, 2007. France’s largest bank, Banque BNP Paribas, cited that date as “the day liquidity completely evaporated from certain segments of the U.S. securitisation market.”* Continue reading Beware Of The Dollar: The U.S. Ponzi Economy Is Malfunctioning.

Gold Price Manipulation Will End.

We are living in an age of manipulated financial markets – interest rates are artificially low, and the stock market is artificially high. Demand for physical gold is at historic highs, supplies are strained, yet the price is relatively low. When will manipulation of the price of gold come to an end? 2020.

First, it is important to understand why the Federal Reserve is pulling out all the stops to repress the price of gold. A high gold price makes the dollar look bad. No one would want dollars if the price of gold were allowed to rise according to actual demand and actual supply of PHYSICAL bullion.

Over many decades until 2007, the Federal Reserve kept the price of gold artificially low by selling tons of bullion. However, coordinated gold sales by central banks stopped after the 2008 crash. Continue reading Gold Price Manipulation Will End.


Global financial markets are integrated and inter-dependent. The markets look ahead and trade on anticipation. It is now extremely bullish for gold!

Zero% Interest Rate Policy (ZIRP)

Since 2008 (for the first time in the history of the world), 90% of the developed countries have had 0% interest rates and a steady flow of “Quantitative Easing” (QE). A small number of “too-big-to-fail banks” [domestic and foreign] have been able to borrow from the Federal Reserve at or just above 0%. (For seven years, overnight/inter-bank lending was 0% to .25%. On Dec. 16, 2015, the nominal rate was raised to .25%; the maximum rate is now .50%).  Continue reading The HYPER-CREDIT BOOM – BUST

Very Little Available Gold is Left in the West.

The last time gold and silver moved like a freight train was in the 2011. One country triggered the RUN on gold and silver. Overnight, supplies of gold and silver dried up; and mints worldwide ran out of deliverable bullion.

In less than nine months, gold and silver made new highs. Gold rose $600; silver climbed 160%. Silver was just as scarce as gold. (Silver was $9 Sept. 2005; $50 April 2011.) 


When the leading currencies were backed by gold, the United States exported more than 40% of all manufactured products used by the world. While today the U.S. is the greatest debtor nation, fifty years ago, America was the greatest creditor nation. Back then, other countries needed sufficient gold to buy made-in-America products.
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