Physical Gold Supply Countdown

Source:, by Andy Hoffman

It’s funny how little news is published when stock markets are rising – as if nothing could possibly be wrong.  Sure, the horrible headlines are still there; in my view, more plentiful, and widespread, than any time in our lifetimes.  However, as human nature tends to ignore bad news if at all possible, MSM “ratings” only weaken when they report it.  “All’s well” stories don’t garner ratings like death, misery, and calamity – but they sure beats those of “Cassandras” like the Miles Franklin Blog.

The perfect case in point is Europe, where 16 months ago the continent’s problems were supposedly “saved” because Mario Draghi said he’d do “whatever it takes” to rescue the Euro; i.e., PRINT as much money as possible.  Six months later, he was named Financial Times “Man of the Year”; sharing the same title bestowed on other world-killing money printers like Alan Greenspan and Ben Bernanke.  Imagine, being named the most important of the world’s seven billion denizens, simply for pressing the “print” key on your laptop – regardless of the massive inflation, debt, and societal breakdown it causes.  By the way, if you want to know just how “in bed” the MSM is with America’s “leadership”; consider that three of the most destructive Presidents in U.S. history – Bill Clinton, George W. Bush, and Barack Obama – have all won Time’s “Person of the Year” award – twice!

Twenty months ago, Greece’s stock and bond markets collapsed, en route to its second ECB bailout.  Queue “Goldman Mario,” and voila – four months later, Greek financial markets surged on his promise to PRINT unlimited money.  And how has Greek’s economy done since then?  Well let’s see; RECORD unemployment, plunging GDP, 157% debt/GDP, and calls for a third bailoutnext month.  In fact, Europe as a whole is experiencing record unemployment; while the supposedly “recovering” PIIGS are witnessing RECORD bond defaults, relentless worker strikes, and potentially – major political upheaval.

However, with global Central banks mimicking the “U.S. Model” of combining money printing – both overt and covert – with “PPT mechanisms” to support stock markets, bad news has been effectively “swept under the rug” for the time being.  No matter what the list of “since the 2009 lows” economic data continues to rise – such as corporate cash flow; or that the supposed economic “superpower” – i.e., America – is experiencing plunging infrastructure and retail spending, whilst its largest corporations continue to reduce orders and lay off workers.  So long as new money printing and “swap arrangements” hold up equities, all is well.  Heck, following last week’s reiteration of Fed and Bank of Japan QE programs, all the rage this week is Thursday’s ECB meeting – supposedly causing stocks to raise on expectations of an additional rate cut.  Even the MSM’s leading cheerleader, the New York Times, is begging Mario to take the already ridiculously low Euro funds rate – at 0.5% – lower; as clearly, real “recovery” is but a pipe dream.

With gold and silver prices trading well below their respective costs of production – as mining capex plunges into oblivion – the long-term outlook for physical supply has NEVER been weaker.  Meanwhile, whatever metal still remains in the Western Hemisphere is rapidly moving eastward; per the “New York/London to Switzerland to Hong Kong/Shanghai” trade corridor described in great detail over the past few months – such as this MUST READ article by fellow Denver-ite, Michael Kosares.

I’m not sure how much more clearly I can be that the “Achilles Heel” of the global financial system is TPTB’s inability to print PHYSICAL gold and silver.  The confidence game that is the Ponzi fiat currency regime is rapidly deteriorating; and all that naked shorting PAPER PMs accomplishes is a temporary “can kicking” – which will ultimately end catastrophically, and much sooner than most could imagine.  Once the rapidly awakening world realizes there’s no actual gold and silver behind the naked shorted empty promises, the rush for the scarce remaining supply will be as massive as it is quick.  We’ve already seen several PHYSICAL supply shortages since 2008 – including two this year alone (in January and April); and in my view, when the “Big One” hits, the opportunity to purchase real money at any price may be permanently ended.  And thus, I vehemently reiterate that the time is NOW to protect one’s assets.

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Categories: REAL Money

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