Gold Is Explosive!
October 11th 2009 00:01
Adrian Douglas is a member of GATA and sits on the board. He was interviewed by Eric King of King World News about the supply and demand for physical gold. You can hear that interview here.
Importantly, you can read his views in more depth at his website Market Force Analysis in a piece just released.titled The Dynamics of the Gold and Silver markets?...Explosive!
You've heard about fractional banking. Every dollar deposited at a bank gets reloaned nine times. Only 10% of each dollar deposited is required to be held in reserve, That means the bank can loan out 90%. The same thing has happened to Gold and Silver only 20 times over. Now, countries and investors are demanding their deposits back and the metals are not there and can't be replaced except by going out into the market place and buying it back.
Douglas writes:
When some argue that Gold and Silver are bubbles, you should know they are wrong. What we have, really, are giant short positions and these entities short are in real big trouble. Only much higher Gold and Silver prices will result. It has already cost Barrick Gold Corporation (ABX) over $3 Billion to cover their shorts.
Importantly, you can read his views in more depth at his website Market Force Analysis in a piece just released.titled The Dynamics of the Gold and Silver markets?...Explosive!
You've heard about fractional banking. Every dollar deposited at a bank gets reloaned nine times. Only 10% of each dollar deposited is required to be held in reserve, That means the bank can loan out 90%. The same thing has happened to Gold and Silver only 20 times over. Now, countries and investors are demanding their deposits back and the metals are not there and can't be replaced except by going out into the market place and buying it back.
Douglas writes:
The gold short position could well be 300,000 tonnes (15,000 times 20) against a total world inventory of only 140,000 tonnes, much of which is not available to the market. Could you think of a more bullish scenario?
When some argue that Gold and Silver are bubbles, you should know they are wrong. What we have, really, are giant short positions and these entities short are in real big trouble. Only much higher Gold and Silver prices will result. It has already cost Barrick Gold Corporation (ABX) over $3 Billion to cover their shorts.
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