Traded paper gold exceeds the actual supply of physical gold by more than 92 times. In other words, there is a massive amount of paper out there, but little physical gold to back it up. There is worldwide voracious hoarding of physical gold, but especially in Asia. Hoarding is putting pressure on those who made paper promises, because the truth is that there really isn't much physical gold on the planet.
As the emerging shortage of physical gold becomes increasingly apparent, the massive Ponzi scheme that the bullion banks have been running for decades is going to completely fall apart.
Governments and central banks have, for decades, leased or sold their gold to the bullion banks. Now bullion banks have a problem: They tried to restock during the massive manipulative selling that we've seen lately in the paper market, but most of the gold released by ETFs and hedge funds was absorbed by Asia. So the bullion banks are still massively short of physical gold.
In an effort to curb consumption by the world’s second-largest gold buyer, India has stepped up taxes on gold, and has banned jewelers from selling gold bars and coins.
As this serious shortage of physical gold becomes increasingly apparent to the rest of the world, we will see a tremendous amount of instability in the financial markets in the months ahead.
Demand for physical silver is also growing and, because silver is used up in thousands of different applications, it is continually being taken out of the overall global supply. If silver continues to be used at the current rate, eventually the global supply will shrink to almost nothing. And right now, it appears that the industrial demand for silver is rising substantially.
So while we may see wild fluctuations in the prices of gold and silver over the short-term, the long-term prognosis for both metals is absolutely fantastic.
Saturday, August 3, 2013
The Coming Shortage of Physical Gold That Will Change Everything
Posted by Unknown at 12:00 PM