muses of the moment

January 26, 2010

paper gold breakdown

Filed under: Gold and Silver Investing, Precious metals, Tangible Assets — totallygroovygirlfriday @ 12:52 pm

Jim Willie in his latest letter suggests that the London Gold Market is out of physical gold. And that the paper gold market price and the physical gold market price will begin to reflect this.

Click here  for more info. Scroll down to view Jim’s note.

I think the most important development to support a break in price from physical and paper gold markets was the move by two major hedge funds last year to sell all their paper gold and hold only gold bars.

The average investor may not understand that the paper gold market is a scam, a derivative of physical gold at best, but the institutional investors will very soon, if not already. Countries already understand this, as they (China, India, Saudi Arabia, Iran) took possession of their gold bars in 2009.

The price may not break soon, but it will break at some point during this current gold bull market. And when it does, physical gold could have an unlimited price. At that break, you will not be able to find physical gold to buy at any price. So, make sure your investments are in place before the break.

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