muses of the moment

June 10, 2014

That China Issue…

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 10:40 am

Groovygirl is getting more and more concerned with the “disappearing” metals in China’s commodity warehouses. This will, of course, effect China and the national links of collateral, first. But, this is a global market. It is all connected.

The dark pools, unregulated trading, and questionable legal accounting practices, globally, make the end result unpredictable. gg can make one prediction: the Big Banks will get their money first….

gg remembers that it took about 12-18 months from the first rumors of trouble to the full blow up of MF Global. Looking back you could see the signs of MF Global well before JP Morgan called its loan. Twelve to eighteen months is usually how long it takes for these things to trigger and then impact other markets. But since investors are now aware of the MF Global-like possibilities, a race to the exits could occur at any time.

This story is not about fake gold, missing gold/copper, or really commodities at all. It is about the loans, debt, and credit that have been created and now are backed by nothing that is about to collapse and move into other markets/countries.

Click here. And here.

Jesse shares gg and others’ concerns. Click here.

groovygirl is watching this story closely. Have you personally visited your physical gold and silver lately? By the time this goes down, it will be too late to get your money out or get physical delivery, just like MF Global. Prepare, if you have not already.

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2 Comments »

  1. Welcome back GG for the big ride. Thought that you were somewhat disenchanted with precious metals as you had been quiet on this front and been investigating property investment.
    I think that tunsten story could throw a spanner in the works of the physical market : Bad money drives out good money. Are you sure that you can trust warehousing your physical? Legislation could change your claim overnight. I´m asking as I´m wondering whether now´s the time to take possession. The essential problem here is that doing so would mean that I cannot sell it as quickly when the time/price is right. And there´s the conundrum about selling at the peak since that´s the moment when people mistrust money most! The contrarian´s paradox which is a direct result of his wanting to profit! It´s crazy and I´m sure there´s a gem of a moral to be found there.
    Best wishes,
    Guy

    Comment by deshepherdhere — June 11, 2014 @ 5:07 am

  2. grrovygirl stills likes physical gold and silver, but she never puts all her eggs in just one basket 🙂

    gg

    Comment by totallygroovygirlfriday — June 11, 2014 @ 11:18 am


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