Something BIG is Collapsing Out of the Public’s Sight…

We are told by the MSM that the sale of $650 million worth of Cypriot Gold has just caused a 3+% drop in the price of Gold (and more than 5% in Silver).  Is this credible?

The Fed is creating $85 billion per month or close to $3 billion per day, 24/7.  The Cypriot Gold at is only 1/5th of what our Fed prints EVERY day!  The U.S. Treasury borrows some $4 billion per day to keep our well oiled economic engine running, ALL of the Cypriot Gold is about 1/7th of what the U.S. borrows each and EVERY day.  Last month, China imported from Hong Kong alone some 97 tons or roughly 7 times the amount of Cyprus’s total Gold holdings, the Cypriot Gold is a mere 4 days worth of imports.  One other way to look at this is that 14 tons is about 6 tenths of 1 percent of the global production of Gold for 1 year…it is nothing.  No, $650 million in today’s world is LESS THAN NOTHING!

By Bill Holter, Miles Franklin Ltd,:

I had not planned any commentary this weekend but with Gold “down” $65 per ounce I will put my 2 cents in.  As you know, I called “bottom” about 5 weeks ago the first time we hit $1,550 then again about 2 weeks ago on the retest of those levels.  They were broken decisively Friday.  The “reason” for Wednesdays sell off of $25?  And the reason given for today’s $65 by the CNBC know nothings?  ……..Cyprus!

Yep, Cyprus may sell ALL of their Gold and swamp the market!  This weeks price action is merely “front running” these sales in order to get out before the price is CRUSHED!  But wait, Cyprus has less than 14 tons of Gold…this is worth some $650 million (yes, with an “M”) yet they have an updated shortfall of some $23 billion (with a “b”) so how does selling their Gold fix their problems?  Well obviously it does not even amount to a drop in the bucket as it is only 3% or so of what capital they will need to raise!

Let me put this into perspective for you in a couple of different ways.  The Fed is creating $85 billion per month or close to $3 billion per day, 24/7.  The Cypriot Gold is only 1/5th of what our Fed prints EVERY day!  The U.S. Treasury borrows some $4 billion per day to keep our well oiled economic engine running, ALL of the Cypriot Gold is about 1/7th of what the U.S. borrows each and EVERY day.  Last month, China imported from Hong Kong alone some 97 tons or roughly 7 times the amount of Cyprus’s total Gold holdings, the Cypriot Gold is a mere 4 days worth of imports.  One other way to look at this is that 14 tons is about 6 tenths of 1 percent of the global production of Gold for 1 year…it is nothing.  No, $650 million in today’s world is LESS THAN NOTHING!

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Philosophers stone – selected views from the boat

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