PART II
QUESTION: Is he breaking the London metals sellers’ maintain to suppress the gold worth?
FD
ANSWER: I’m drained listening to the identical fixed bullshit about gold is suppress deliberately by sellers and that’s the reason it’s not $10,000. I’ve traded in opposition to these folks for years. Here’s a clip from the Forecast with Barclay, who used to work for me years in the past, speaking about how he checked me out earlier than taking the job with Goldman Sachs.
Each manipulation that these sellers ever pull off was to the upside – to not suppress gold. They promote 10x extra when folks assume gold is rising, not declining. This BS declare was defined that they had been suppressing gold to assist the federal government preserve inflation in verify. That is complete BS!!!!!
Again within the Seventies once I was one of many largest market-makers in gold, I used to be shopping for the scrap gold from shops within the nation that individuals had been promoting to again then and refining it at Engelhard into 100-ounce bars for supply into COMEX. PhiBro was who you’d name to promote to Engelhard, locking within the costs. PhiBro made a lot cash that they purchased Solomon Brothers, the bond home on Wall Road, and took the manipulation techniques to Wall Road, after which that blew up. That’s when Warren Buffett stepped in to avoid wasting the corporate, and that’s how he acquired pulled into silver manipulation scams of the day.
Nelson was one among my clients. Within the early days, we purchased silver certificates and redeemed them on the Treasury for 1,000-ounce bars. They often had a everlasting marker utilized, usually with two numbers, 102.6 and 120. The primary implied it was 102.3 oz., and the second could have been the variety of silver certificates it represented. Nelson was shopping for them when silver was $1.29. The U.S. Treasury primarily used 1,000-troy-ounce silver bars for the redemption of silver certificates. These bars had been standardized for business and governmental use, aligning with trade practices for environment friendly storage and dealing with.
- Historic Context: Through the redemption interval (late 1800s–1968), the Treasury managed massive silver stockpiles, usually saved in bulk. The 1,000-ounce measurement was sensible for large-scale transactions and storage.
- Business Requirements: The 1,000-troy-ounce bar was (and stays) a typical “good supply” normal in valuable metals markets, guaranteeing consistency in home and worldwide commerce.
- Laws and Practices: Acts just like the Pittman Act (1918) and the Silver Buy Act (1934) concerned melting silver cash or buying bullion, doubtless utilizing standardized bar sizes. The Treasury’s silver reserves, together with these backing certificates, had been held in kinds suitable with industrial and financial wants.
Thus, 1,000-troy-ounce bars had been virtually actually the usual, although smaller denominations (e.g., cash) had been additionally obtainable for particular person redemptions.
A joke, I had $1 million credit score line by the point I used to be 21 with the financial institution. It was humorous since you didn’t must take care of age or issues like that. I had a enterprise with workers and stock, in addition to gross sales. They granted you credit score primarily based on these issues. They’d assume I used to be older and simply say, “You look good in your age.” I’d simply reply: “Thanks.”
I went to my native financial institution and needed to borrow $2 million to purchase silver. I informed them I had a consumer, Nelson, who was going to take silver up dramatically. I’ll have even stated $50 – I don’t recall. I informed the financial institution they may maintain the silver, which I believed made sense. I used to be turned down, and my banker known as me in and defined that I ought to have simply stated it was for stock, and I’d have been permitted. It was unlawful for them to lend for hypothesis. For years, he informed folks that if he had purchased silver himself, he may have retired by 1980.
By February 1979, Hunt’s identify was being thrown round in every single place, and so they had been saying silver was going to $100. That lured folks in to purchase, and so they took silver as much as take a look at the $50 between February 1979 and January 1980. All of the manipulations I’ve witnessed within the metals have been to lure folks to purchase, not promote, and suppress the costs. That’s simply silly. Do they not generate income by suppressing silver or gold to assist the federal government? Come on.
Nelson was additionally an avid historical coin collector. Sotheby’s offered his assortment, and it stays a major sale usually referred to. His assortment ranked up there with J.P. Morgan and King Faruk.
I’ve stated numerous occasions, gold rises NOT with inflation, however with geopolitical points. Right here was the Nationwide Debt Q2 1980 at $877.614bn. As of Q2 2024, it stood at $36,218bn. The debt has risen 40.29% since 1980. Gold hit $875 on January 21, 1980, within the money market. If gold rose due to inflation or the debt degree, then it ought to be $35,260 per ounce. The gold supplier may purchase all of Wall Road with that worth.
These individuals who make up these excuses are unbelievable. Gold pays no curiosity, which is why they lease it out. In any other case, it’s a useless asset that brings in no earnings. It’s a hedge in opposition to the federal government in occasions of uncertainty—that’s it. It isn’t a hedge in opposition to inflation or the scale of the debt. That has been an excellent gross sales pitch, however that’s it.
