The Secret of Gold Prices - Its Worth $53,000/ounce
04-08-2008, 12:26 PM
The Secret of Gold Prices - Its Worth $53,000/ounce
Gold has recently dropped heavily in price, and most of the peddlers and supporters of Gold suddenly fell silent. But there is a secret to this price fall that everyone is missing - and as soon as you understand this secret it will cause a paradigm shift in you understanding of its value - and you will see it from the view of the Central Banks.
Over at http://www.anomalicresearch.com the falling gold prices only triggered an investigation into WHY was the price falling - however what was found in the analysis was a shocking conclusion, and also demonstrated a weakness in the current international monetary system - and a method to bring it to accountability.
Gold Worth $53,000 an Ounce? - BELIEVE IT. Or as Barrack Obama likes to peddle it - Yes we Can.
The Trading Value of Gold is Completely Irrelevant to the Central Banks As Long as it Remains INVALID.
The second title of this analysis which would simplify it for everybody would sound like this - the market value of Gold is meaningless and harmless to Central Banks as long as it is not viewed as a trading currency. The moment it supplants the current 64 bits in the banks computer as your net worth its value is worth thousands and thousands an ounce. Don't believe it check it out for yourself.
Official Gold Reserves (http://en.wikipedia.org/wiki/Official_gold_reserves)
United States : 8133.5 Tons
Germany : 3417.4 Tons
International Monetary Fund : 3217.3 Tons
The secret lies in reverse analysis - of a scenario where dollars were to disappear and Gold was to be utilized as the trading currency again. The GDP of the United States for 2007 was $13.8 Trillion. Divided by the 261 Million ounces held in the US Central Bank - it works out to roughly $52,000/ounce!
The Secret is Not in Its Trade Value - But that It Remains Invalid.
Again the secret fear of the central banks is that Gold will re-emerge as a trading currency. In other words large holdings of Gold against world wide sales of Gold are held by Central Banks (For the Eurozone, the United States and the IMF Gold holdings are roughly 22,000 tons). Considering that the entire world wide yearly sales usually do not amount to more than 500 tons - they could easily depress world prices for Gold - and will do so from time to time to keep the price of it DOWN. But the reality is they could really care less what the price of it is worth - as long as it does not become a competitor to their international system of trade and balance. This is the kicker in a nutshell. If people readopt the habit of buying and accepting payment for their items in gold again (or even a direct barter system over the internet) - at the same time that the position of currencies is weakened as trust erodes - Gold value could easily skyrocket.
The Coming September 2008 Market Crash?
All the signs of a Fall crash are sitting in the mix right now. Weak Banking institutions, weak and anemic economic forecasting, weak job data, frustration with the war in Iraq. Total mis-trust of the US Mortgage system after they deliberately peddled a pile of junk Mortgages as Triple AAA bonds - all point to a large correction this fall. The Feds were well aware of this, and only and ever move to protect their system.
That is Why the Ron Paul Minter Was Raided...
Now you know why they quickly moved to seize the Ron Paul coin Minter - they were giving Gold validity as a trading commodity again. And the federal reserve and the international banksters DID NOT LIKE IT.
How to Bring the International Monetary Fund and the Rampaging US Federal Reserve Back to Accountability.
The answer is easy - start buying and selling with something other than US Dollars. This could be gold - but doesn't have to be - In fact it doesn't have to be any commodity at all. A good example is if everyone starts using the following site : http://www.freecycle.org/ - but starts trading larger and larger transactions on it. No money was exchanged hands - but a commodity trade was conducted. Thus the banks had no control or rein over the economic activity by the issuance of a currency against the transaction (with its usual interest etc). There is no central site to seize, and no gold coin minter to raid. Everything that goes on could be viewed as a 'ghost transaction' - and it is difficult for them to seize or stop it especially if a decentralized software system was developed on the internet (like a Bitorrent Tracker Transaction Styled Trading System).
Thus if someone wants to truly bring the US government to accountability they only need write a piece of software, and then get people using it. It would work like freecycle, but would be decentralized (and uncontrollable) - but it would also enable 'inter-transactions' where the 'torrent transactions of trade' could be cross referenced and surfed.
The Final Straw. If this 'virtual transaction commodity system' created and maintained on the internet could ever develop a system of storing wealth (virtual accounts) - it would easily and quickly supplant and replace most currencies around the world - and because of its decentralized design no one individual could control or harness it. The Central Banks would have to move to shut down the entire internet in order to regain control of their favorite pet currency that they like to peddle to the masses, and they probably would.
But for now I will take my Burger Take out for 3 Grains of Gold Please.
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