Selling a Pawn Business Is Complicated Selling a
Ladies and Gentlemen in Pawnland!
I found a very interesting piece on the wire today and should be of a major concern to the world. It is my belief that with the further deterioration of the US Economy, the Dollar and the Global Economy mixed, we are indeed heading into a world of peril.
I say it all the time to my clients, I wished I knew where we were going to be in a year, or two or five years from now, but unfortuantely I do not posess the proverbial crystal ball as they say.
It is a known fact that countries like China are stockpiling GOLD and are NOT selling their positions in the open markets. They have increased their mining capabilities 10 fold over the past decade and it appears they may indeed be heading to a GOLD standard to protect their currrency somewhere down the road.
How ironic is is it, that the worlds largest Communist regime that is building the largest and most hi-tech military machine the world has ever seen is also the number one debt supporter for the United States?
Here is an interesting what if. Taiwan is protected by the United States. If China wished to exercise more aggression on this tiny country like it has done in the past, the US is there to support them. The irony is, the money we will borrow to defend Taiwan from this aggressor, IS the aggressor. How does that work out? Same scenario bascially applies to north and south Korea FYI as well. China recently unveiled their new super aircraft carrier, been firing off missiles into space along with rockets and much more and I wonder where they are heading with all of this?
China recently told the world their boundaries are now hundreds of miles out into open ocean into territories that have always been considered International waters, wonder where that is heading?
We are living in unprecendented times. Ladies and Gentlemen I have said it before and I am saying it again, GOLD is the CURRENCY of the world today, with volatile stock markets, monetization of the dollars and the rest of the world currency systems, further erosion of the global and US economy, more crisis is around the corner and it’s coming sooner than later.
Here is an interesting piece about Nationalizing Gold, it has happened in the United States before in our history and it CAN happen again!
Enjoy this little read I pulled off the wire today – Jerry Whitehead
Wednesday, August 17, 2011
Chavez Nationalizes Venezuela’s Gold Industry, Recalls Hundreds of Tons of Gold Held Abroad, May Cause a Scramble for Physical Gold From JP Morgan and Others
The two biggest stories of the day – in case you missed them – were that Venezuelan president Chavez is nationalizing the country’s gold industry, and he’s recalling hundreds of tons of gold held in European banks back to Venezuela.
As Zero Hedge notes:
As the WSJ reported earlier, “The Bank of England recently received a request from the Venezuelan government about transferring the 99 tons of gold Venezuela holds in the bank back to Venezuela, said a person familiar with the matter. A spokesman from the Bank of England declined to comment whether Venezuela had any gold on deposit at the bank.” That’s great, but not really a gamechanger. After all the BOE should have said gold. What could well be a gamechanger is that according to an update from Bloomberg, Venezuela has gold with, you guessed it, JP Morgan, Barclays, and Bank Of Nova Scotia. As most know, JPM is one of the 5 vault banks. The fun begins if Chavez demands physical delivery of more than 10.6 tons of physical because as today’s CME update of metal depository statistics, JPM only has 338,303 ounces of registered gold in storage. Or roughly 10.6 tons. A modest deposit of this size would cause some serious white hair at JPM as the bank scrambles to find the replacement gold, which has already been pledged about 100 times across the various paper markets. Keep an eye on gold in the illiquid after hour market. The overdue scramble for delivery may be about to begin.
Both developments could be bullish for gold prices, as nationalizing Venezuela’s gold means less gold available in the free market, and the scramble for physical gold to make good on Venezuela’s recall demand could challenge the 100-to-1 leverage levels of paper gold derivatives to physical gold.
Pawnshop Consulting Group, Inc.
Click on our Social Media Links below