U.S. Dollar Currency Collapse Within 30 Days (BUY GOLD!)

[zengrifter]

U.S. Dollar Currency Collapse Within 30 Days

Oct 24, 2008 - 10:41 AM
By: Eric deCarbonnel

It appears that there is a common refrain going around the investment community. It goes something like this:

"Gold should be doing better, and, since it isn't, I am not going to buy it"

Investors who believe this are making the mistake of thinking COMEX gold is the same as real physical gold. It is not.

COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract.

Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can't produce the gold or cash), COMEX gold fails miserably as a safe haven .

This is why COMEX gold prices are falling, while physical gold is disappearing from the market place.

Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market means that a large number of December gold contract holders are likely to request delivery. A volume, whether it causes defaults or not, is likely to change the marketplace perception of gold and cause a rush of into a physical gold plagued by shortages. Gold will skyrocket over 2000 in a matter of days.

I am not the only person who believes COMEX gold futures are on the verge of collapse. I urge you to watch this video (skip to 11 minute mark) and read the extract below to see what others are saying about paper gold.



MORE- http://www.marketoracle.co.uk/Article6952.html

[glovesetc]

There will more then likely be NO more Buffalo gold coins minted this year. Kitco amongst others are 4 weeks behind in shipping kruggerands for instance and even silver eagles there is a 7 day wait . The Comex would have to declare a force de majuer if everyone took physical delivery on the expiration date just as some oil companies declared when oil hit $140.00 and the Nigerian rebels took over or destroyed pipelines . It will be an interesting few weeks to see where everything and everybody is headed as well !!!! That being said gold at $2,000.00 will not get here in a matter of days or weeks or even months for that matter !

[N&B]

NOPE, gold isn't going anywhere fast. Buy buillion, not coins. Don't buy the gold miners either, remember, there's a lot of debt needed to get it out of the ground and into a marketable shape for presentation.

Naturally, a lot of the selling/buying/hedging is the unwinding of winners vs. losers. And in some cases insured winners turned loser. IMHO theres a lot of wealth being diverted to hard assets w/o denomination (ie Dollars, Euros, Yen, Francs et al). And I dare presume some it is leveraged.

[zengrifter]

Originally Posted by N&B

NOPE, gold isn't going anywhere fast. Buy buillion, not coins. Don't buy the gold miners either, remember, there's a lot of debt needed to get it out of the ground and into a marketable shape for presentation.

Buying the RIGHT mining shares is critical - especially SILVER mining shares. zg

[zengrifter]

See - Gold coins in short supply, command 50% premium

[glovesetc]

Originally Posted by zengrifter

See - Gold coins in short supply, command 50% premium

At the local coin dealers out here there is only a 12% premium over spot . In calling several they said they are in stock but are currently not accepting over 100 coins per customer per order . Zen we need to get together if we can chop that kind of money up! Sell them for 35% over spot and we chop up the 23% equally . They pay in advance so we have no downside and lock it up . Colonial Coin in the arcade in Cleveland probably has about 400 in his safe the last time i was down there which was on Monday . I have known Tommy for years and for cash and quantity I am sure he will cut us a deal as well . Lets make some coin Zen !! I will be out this afternoon and check a couple other coin dealers as well later today !


There is one coin the Buffalo gold coin that may not be minted again this year is selling at about a 24% ppremium.

[zengrifter]

Originally Posted by glovesetc

At the local coin dealers out here there is only a 12% premium over spot . In calling several they said they are in stock but are currently not accepting over 100 coins per customer per order . Zen we need to get together if we can chop that kind of money up! Sell them for 35% over spot and we chop up the 23% equally . They pay in advance so we have no downside and lock it up . Colonial Coin in the arcade in Cleveland probably has about 400 in his safe the last time i was down there which was on Monday . I have known Tommy for years and for cash and quantity I am sure he will cut us a deal as well . Lets make some coin Zen !! I will be out this afternoon and check a couple other coin dealers as well later today !


There is one coin the Buffalo gold coin that may not be minted again this year is selling at about a 24% ppremium.

I'll take my end in SILVER! High premiums are being paid for immediate deliver on silver bullion as well, and a number of private auctions are throttling up. See - http://silverstockreport.com/ssrarchive.htm zg

[glovesetc]

guess we are not going to skin those idiots . We inc. and can call it Zen-Glo purveyors of precious metals . Oh well it was just an idea . Silver eagles here are selling at $2.50 to$3.50 over spot unless you buy a 1,000 and pay up front then it is very negotiable so I was quoted !!!!!

[glovesetc]

Ok folks and fans of my musings here is how . Sterling silver is .925 fine ,mexican silver such as used in Jewelry is .900 fine and German silver is usually .800 but always wise to test it . Hit up antique stores , flea markets , bazaars and etc to look for people selling it . If you find a sterling silver service set that is monogrammed or missing pieces you will find willing sellers at less then spot normally . Weigh the pieces { all except for knives which contain next to nothing silver } and lets say you have 100 ounces of total weight! you then multiply 100 oz times .925 which gives you the melt value at the buyer of last resort - the refinery . you know you have 92.5 ounces of pure silver and the refinery usually charges 3% refining and handling fee.This in turn gives you 92.5 ounces silver less the refinery charge of 3%!Multiplying 92.5 ounces times .97% =89.725 ounces pure to you . If spot is at $10.00 times 89.725 ouces equals $897.25 so you offer them $750.00 or maybe even $800.00 and you make quite a nice profit especially when you do this maybe 5,6,7,8,10 times a day !!!!! Silver is not only in silverware sets but it is found in Jewelry, trophies, plaques, armed forces metals pre 1977 such assharpshooter etc ,ashtrays, figures, and many other numerous places like wire even! Put an ad in your local paper - buying sterling and silver coins too if you wish . A two line ad depending upon your location and city size should be no more then $10-$50.00 in the sunday paper . Class dismissed!!! never hurts to look for 5,10,20,25 year service pins pre 1960 that were given for awards ceremonies cause they are usually sterling yet MANY are 14K gold . I would give you all the formulas for figuring gold in karat form but it is too much typing at the moment .

[zengrifter]

Originally Posted by glovesetc

Ok folks and fans of my musings here is how . Sterling silver is .925 fine ,mexican silver such as used in Jewelry is .900 fine and German silver is usually .800 but always wise to test it . Hit up antique stores , flea markets , bazaars and etc to look for people selling it . If you find a sterling silver service set that is monogrammed or missing pieces you will find willing sellers at less then spot normally . Weigh the pieces { all except for knives which contain next to nothing silver } and lets say you have 100 ounces of total weight! you then multiply 100 oz times .925 which gives you the melt value at the buyer of last resort - the refinery . you know you have 92.5 ounces of pure silver and the refinery usually charges 3% refining and handling fee.This in turn gives you 92.5 ounces silver less the refinery charge of 3%!Multiplying 92.5 ounces times .97% =89.725 ounces pure to you . If spot is at $10.00 times 89.725 ouces equals $897.25 so you offer them $750.00 or maybe even $800.00 and you make quite a nice profit especially when you do this maybe 5,6,7,8,10 times a day !!!!! Silver is not only in silverware sets but it is found in Jewelry, trophies, plaques, armed forces metals pre 1977 such assharpshooter etc ,ashtrays, figures, and many other numerous places like wire even! Put an ad in your local paper - buying sterling and silver coins too if you wish . A two line ad depending upon your location and city size should be no more then $10-$50.00 in the sunday paper . Class dismissed!!! never hurts to look for 5,10,20,25 year service pins pre 1960 that were given for awards ceremonies cause they are usually sterling yet MANY are 14K gold . I would give you all the formulas for figuring gold in karat form but it is too much typing at the moment .

Years ago I found my BR at low ebb and decided I would pawn "grandma's
sterling" - took it to the hawk shop - the guy says this is only PLATED!
The whole family used to make such a big deal over grandma's sterling!

Right now the BIG RIPOFF are those services that send you an envelope to put your old jewlery - they are paying about 50%.zg