Recently I found a website that listed the top 10 bubbles in the making. In the number 3 spot, the website listed gold bubble as its price has gone up the past few months over $1,100 an ounce. The problem is, the US mass and financial media does not want you to know something…
The amount of gold that is being bought yearly is way more than its production in the whole world. If you don’t know already, gold is produced on about 1,500 tons annually. So how do they supply the demand? Where is the extra gold coming from?
They don’t. A huge short position in gold was slowly but surely put on over many years in order to artificially depress the price of gold. It is also done to artificialy depress interest rates in the US and to keep the economy there going longer than it should without any real correction of all the massive amounts of debt they have accumulated.
When you see the ever increasing gold prices is because of the gold shorts is now trying to break through their short position which will take a few years, considering that short positions are about 10,000 tons worth.
The reason why there is actually no bubble in the gold and silver markets is because there is no excess speculation going on in these particular market. Bubbles for these are years away from now.
If you haven’t already noticed it yourself, most people in the western world do not grasp why anybody in the world would want to buy gold or silver, because they do not understand what anybody would do with that stuff. As naive as it may sound, it is like saying why would anybody in the world want to have real money. Gold and silver are real money. And the western world do not understand what they would do with real money.
The reason being is that western people, especially in English speaking countries, have been brain washed for so many generations to focus more on digital token bits on some company’s or government’s hard drive over real gold and silver. What I refer to by saying “digital token bits” are US dollars, Euros, mutual fund shares, stock shares, bonds… which are nothing but digital token in some computer.
Many people in the western world have been tricked into putting their real ownership under the control of some entities for safe keeping. These entities are the ones who afterward have real control over what they have given up. Their hard drives actually are the ones that hold all those digital US dollars, Euros, mutual fund shares, pension funds, stock shares and bonds.
People are brainwashed into thinking not to worry about their retirement funds or healthcare funds. They are brainwashed that all those are being taken care of by entities that they have chosen to entrust their real ownership to. In the end, the one who takes better care of property is the real owner and not the “caretaker”.
After the stock crash and into the financial crisis, millions of people woke up in shock, realizing that what they have put under somebody’s control is now gone and the amounts of value is stolen from them. In the end, what is the ultimate safe store of value is not all the digital token bits or paper money, but gold and silver.
To most western or English speaking people, it is a radical and uncomfortable thought to actually buy real metal. This is also another reason why there is no bubble in gold and silver markets.There is only a very small number of people in the western or English speaking world that actually takes responsibility for themselves and stores a large percentage of their wealth in gold and silver. There is no bubble here.
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January 9th, 2010
Elisheva Wiriaatmadja
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