Gold Falls 31% As Rich Flee ETP Markets

Gold Funds See Unprecedented 31% Slump as World Loses Faith in the very silly ‘ETP’ market whereby one doesn’t own much of anything except a piece of paper saying, ‘You own part of this hidden gold hoard which you can never touch’.  HAHAHA.  One can hardly make up how silly this is.  As silly as the bitcoin scam.  Yes, a Vegas developer selling $7.85M mansion for bitcoin as a publicity stunt.  Also a OC Lamborghini dealership sells car for 91.4 bitcoins which is also a publicity stunt, too.  He could sell this car for one million roosters, for example.  Or a truckload of black tulip bulbs.  Or in exchange for sex with a house full of prostitutes or trade it for a pound of pure cocaine since many of the main customers are connected with whores and drugs.


One can ‘buy’ anything with anything else, this is called ‘trading’.  Money is simply a recognized, government sanctioned trade enabler which can be undermined by the government, of course.  A steady currency leads to social happiness whereas devaluing the currency gives a short boost with long range bad effects.  Back to gold: it is one of many things one can buy if one wishes.  Will it go up?  Or down?  You never know, nothing is set in stone.  Despite gold surging and collapsing ever since the government ceased regulating gold, people think it is a sure fire way to get rich.  Buy gold or better still, sort of buy gold and you sit in your home and it grows in money value effortlessly.


Except it doesn’t!  Never will, either.  The government of India cut off the gold importation market there and as I predicted, the value of gold began to collapse.  IRL Bitcoin Maker Shut Down by US Government is due to the maker’s claim that he isn’t minting coins, he is making TOYS wasn’t lining up with the obvious storyline that ‘Bitcoins are REAL money!’ which the geeks have latched onto.  There are now other ‘real pretend coins’ appearing out of the ether and the sky is the limit for these things, it is a fad.  A ‘get rich quick’ scheme which is nearly totally worthless.


When the value of real, hard gold falls by a third in one year, this is a wakeup call for everyone.  There is no such thing as a sure deal, ever.  They all vacillate and are prey to history, events, accidents and panics.  The emotional attempt at controlling the future via hoarding something ends badly most of the time.  The best thing is to invest in a healthy society with strong families and sane diplomacy.


How to Get Rich on Bitcoin, By a System Administrator Who’s Secretly Growing Them On His School’s Computers | Motherboard shows how delusional the bitcoin mania is:


Unlike the various virtual currencies that have found traction (and attracted some controversy) in the world of massive multiplayer online games, where they’re used to purchase virtual farms or weapons for slaying Orcs, Bitcoins have a more serious glimmer. They rely on a novel mechanism – developed by a Japanese computer science student – by which value is accumulated through peer-to-peer networks. They can’t be forged or stolen, nor can their value be artificially inflated; transactions based on them are untraceable (cue the bad guy James Bond music).


Every one of these assertions proved to be fatally false.  Bitcoins are easy to steal.  And they have been hugely ‘inflated’ insofar as their supposed value at any given time.  And if they are used to non-illegal purposes like buying a fancy car, they can be traced.  The bitcoin maker in the above interview is stealing the computer energy and time from his employer to make this fake money.  Far from being some hero, he is actually a crook.  It is grounds for being fired if he is discovered hijacking 60 computers which are for the use of others doing research.


The anonymous hacker abusing his access to other people’s computers even says ‘mining bitcoins is HACKING’ in that once you have access to the pool of bitcoin players, you can muscle your way into  seizing the value of this fake money via solving a computer system’s programing and thus, take money value from a blocked source.  This young hacker joyfully claimed bitcoins would destroy all currencies which shows how delusional the entire thing has become.  I see bitcoins as a last gasp as people try to flee the logic of the floating fiat currency/free trade gambit.  This system is about to collapse now that China has exploited it to the hilt and will by next year, dethrone the US as the world’s #1 economy.


The Chinese knew that value lies in the structure of society and its physical super structure.   The US decided to bomb all its major cities and turn them into crime infested hell holes while importing stuff made in China.  Our destruction of major cities is our own bitcoin lunacy.  All the gold on earth can’t hide the fact that we destroyed our industrial base.  Spain was a strong nation until they took over the New World and began shipping home tons and tons of gold, silver and copper.  This bounty, in turn, utterly destroyed Spain’s ability to be industrious and highly educated.  Instead, the empire became lazy, week, denatured and defeated and repeatedly went bankrupt since everyone was speculating and living beyond their means.


That is, the immense hoard of gold and other mineral wealth was a poison that destroyed Spain and left it languishing for hundreds of years, prey to invaders, riots, dissension and social chaos.  Just as oil wealth does the same.  Back to the gold news: all the huge super rich billionaires are selling off their gold holdings.  They understand it has no value except if they want it to have value and if the market for buyers drops for any reason, gold switches from a must-have easy money deal to a poison pill eating away at one’s wealth.  Property can do this, stocks often do this, I can’t think of anything that isn’t prey to this.


And if China decides the US dollar isn’t worth holding, our happy days where our dollar bitcoins flow effortlessly overseas will abruptly end and we will suddenly be unable to buy our toys anymore this way.

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15 responses to “Gold Falls 31% As Rich Flee ETP Markets

  1. ziff house

    re gold; tell that to the chinese lol

  2. Ahem.Gold didn’t fall 31%.Paper gold didn’t fall 31%.
    Paper ETF’s outflowed 31%.
    The Price of gold will be supported by the Chinese and the Indians as more paper gold disappears and physical flows East.

  3. You write two things that caught my attention.

    First you write, When the value of real, hard gold falls by a third in one year, this is a wakeup call for everyone. There is no such thing as a sure deal, ever. They all vacillate and are prey to history, events, accidents and panics. The emotional attempt at controlling the future via hoarding something ends badly most of the time.

    I respond that up until October 23, 2013, all lived under the paradigm and age of liberalism, where economic growth was the result of the operation of the dynamo of creditism, corporatism and globalism, which bubbled up Total Credit, as presented in Federal Reserve Chart of TCMDO to stand at 58,082 Trillion, as of QE 2013. Benson te presents the concept that the UK’s economic growth was due to the growth of credit, and provides BoE documents showing credit growth in real estate, hotel and restaurants and construction, beginning when the BoE began it second wave of QE in late 2011.

    The sweet spot in life under liberalism came through credit. It came via the crack up boom liberality of the world central bankers monetary authority, in particular the Bernanke put in late 2010 with QE2, and getting leveraged up, on debt trades, currency carry trades, and margin credit, together with a sell of gold, to experience economic life in economic systems such as crony capitalism, European socialism, Greek socialism, and Chinese communism.

    Take me for example, I lived in clientelism. Yep, I’ve been a client of the Federal Government, living on some social security funds, and on some disability funds for a number of years.

    And did you note, I wrote, “together with a sell of gold”; investors were short gold; this made other forms of wealth bubble quite high.

    The Revelation Of Jesus Christ, which foretells those things which must shortly come to pass, these being presented in Revelation 1:1; means a series of events, that once they begin, as they did on October 23, 2013, when Jesus Christ, acting in dispensation, that is in the administration of all things economic, PIVOTED the world from the paradigm and age of liberalism into that of authoritarianism, by releasing the First Horseman of The Apocalypse, presented in Revelation 6:1-2.

    The Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, effected a bloodless global coup d’état, is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and by steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, thereby destroying fiat money.

    An investment demand for gold is commencing as fiat money, and now wealth, are turning lower in value. Under authoritarianism, the only two forms of sovereign wealth and sustainable wealth will be the physical possession of gold bullion and diktat, as it produces diktat money.

    And secondly you write, the best thing is to invest in a healthy society with strong families and sane diplomacy.

    An inquiring mind asks, what if society gets corrupted, and what if one’s family gets destroyed or goes off down another track, and what if a nation falls to regional governance, as I’ve been postulating for many years. I would have to conclude that one would be up the creek without a paddle.

    I thing the best thing to invest in is an ism.

    In EconomicReview Journal, I blog on regionalism, as I comment on Liberalism and Authoritarianism, in light of dispensationalism.

    An ism is defined as a process that produces a state-of-being from ideas; one adopts an ideology, embraces an ism, and the two produce the individual’s state-of-being, having life experience. There be many isms; each has an ism; yes each has economic action in some movement. Liberalism provided such things as clientelism, socialism, keynesianism, corporatism, globalism, and creditism. Authoritarianism provides regionalism. And there are outside of the box, alternatives, such as libertarianism and dispensationalism.

  4. I read the first two posts, that came in before mine, and I have to thank Peter C. as he has it right. The gold disappeared into only God knows where

  5. Elaine, thanks for this. Now, what if another crypto currency (A.k.a Bitcoin) realizes a way to be backed only with capital and assets. Do you think it could work ?

  6. Jim R

    Jesse occasionally posts a graph of claims per ounce for gold in his Cafe Americain blog.

    Last time he posted this graph, there were about 60 ‘paper’ claims per physical ounce known to exist — thanks to fractional reserve banking.

    From that fact, we can anticipate that there will be more MF Global types events, where the trusted financial institution “absconds” with gold which never existed, or which has been sold overseas and long since shipped out.

  7. emsnews

    Bitcoins and paper gold are the same thing: vapor.

    I am all for physical gold holding. But this can be in many forms, the main one being jewelry which is funny because a woman will wear her gold day and night for the most part so it is guarded by her vigilance.

    Hoarding gold has dangers namely crooks stealing it all. And it doesn’t add to the capital value of anything if it sits idle hidden in the ground or elsewhere.

    Capitalism thrives when people save wealth and it ‘grows’ thanks not to speculation or deals but via lending it to others who pay interest. This system was deliberately destroyed during the last 50 years and I have complained about this endlessly.

  8. Jim R

    Well then, since capitalism is so important, why not invest all your money in Palm (ticker symbol PALM), the company that makes those little personal-organizer thingies! It’ll make you rich, I tell you!

    Gold and silver in your personal possession will not go to zero value. You may be robbed, but that is another matter. ETPs, stocks, and perhaps bitcoins, WILL.

  9. Joseppi

    How is a person to store wealth for future needs living in a country that half the citizens are on medications, where the rule of law has been corrupted, and the laws of mathematics have been replaced by the manipulated perceptions of debt?

    This group of people may be on to solving the riddle of money……

    SINGAPORE, Dec 16 (Reuters) – E Fund Management Co Ltd has launched China’s third gold-backed exchange-traded fund (ETF) but, like its predecessors, the product has failed to make a splash as investors in the world’s biggest bullion user show a preference for physical metal.
    The muted response to ‘paper’ gold in China shows that investors there prefer owning physical gold assets at a time of weakening prices.

  10. Luc

    ‘I see bitcoins as a last gasp as people try to flee the logic of the floating fiat currency/free trade gambit. This system is about to collapse ‘…
    I wager [pun in tended] its spelled P_O_N_Z_I.
    But let folks do what they will with their money.

  11. CK

    I traded some engraved paper for some books full of knowledge today, and a few hand tools and couple of pennyweights of gold the metal.
    It was a good trade. I received some things I valued more than the paper, he received some paper he valued more than the things.

  12. Luc

    We are [not yet] Weimar!

  13. Were Can I read more about Healthy Capitalism and how this should work ?

  14. emsnews

    Healthy Capitalism exists only where there are Healthy Labor Unions. Otherwise, it causes hideous things to happen to societies that crush labor and abuse the masses.

  15. I agree dear Elaine, but there is a book going directly to the point ? A recent one besides Das Capital ?

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