"I still get emails of people who will just not stop with the gold standard stuff. They just don’t get it. BEEN THERE – DONE THAT! We had a gold standard and they still printed more dollars than there was gold at the “standard” fixed rate. It is NOT what is MONEY, but who is in charge of the system. We need POLITICAL REFORM, not some gold standard. Those who keep yelling “fiat” think money is a store of value. It NEVER has been. Gold should be free so you can buy it as a hedge. Why would you want to hand it back to government? Additionally, these ideas that somehow unless money is 100% backed it is not real is nonsense. To create a system they purport you have to eliminate credit, borrowing, and banking. If you have a $20 gold piece and deposit it in a bank and I borrow $20 in gold, we both have accounts showing $20 but there is just one coin. ALL credit leverages the money supply creating a “fiat” system constructively. To create a world where money is an IOU on a one-for-one-basis, there cannot be ANY credit whatsoever. Gold is a hedge. Leave it alone. We don’t need government getting their dirty hands on it. Hello! What’s the problem!"
Agree completely, a gold standard would change nothing, as it is fractional reserve banking and those running it that is the source of our problems.
It all comes down to what is an acceptable level of fractional banking. A competitive advantage goes to the bank that can figure out a way of skirting around the acceptable level. Think 600 Trillion in derivatives floating around out there. It occurs to me that all the banks have flouted acceptable levels of fractional banking for a long time.
Banking would be more transparent if there is a known quantity of Gold in the vault. Obviously no one in the banking game would be content with Gold as the ultimate means of settlement. To that end I would like to see banks separated from trading desks to stop the obscene leverage.
If Willie Sutton had understood what a bank really was he would have opened a bank rather than stealing from the tellers "because that's where the money is"
What do you guys think about the historic lows in commercial COMEX shorts? Possible covering before position limits? Time to get bullish on silver again? Or is it no big deal?
GM - I think it's hard not to interpret this as bullish. I'm pretty tempted to nibble if silver spot goes below $30 again (despite, like everyone else, having been burned twice this year by silver already...)
I'm sort of fantasising about one more sharpish dip down, at which point I hope a serious upward rally to $34 - 35 will commence in earnest. I'm still kicking myself for not being liquid in time to buy in at $26 - that would've been one hell of a money shot...
That said, if the commercial shorts have already covered, then from where will the short squeeze come to drive spot price higher? Or am I missing something really obvious?
It looks bullish but as has been pointed out by Victor it's only 5% of the market. Throw in the record demand at the mints and it's looking pretty good to head higher.
5 comments:
"I still get emails of people who will just not stop with the gold standard stuff. They just don’t get it. BEEN THERE – DONE THAT! We had a gold standard and they still printed more dollars than there was gold at the “standard” fixed rate. It is NOT what is MONEY, but who is in charge of the system. We need POLITICAL REFORM, not some gold standard. Those who keep yelling “fiat” think money is a store of value. It NEVER has been. Gold should be free so you can buy it as a hedge. Why would you want to hand it back to government? Additionally, these ideas that somehow unless money is 100% backed it is not real is nonsense. To create a system they purport you have to eliminate credit, borrowing, and banking. If you have a $20 gold piece and deposit it in a bank and I borrow $20 in gold, we both have accounts showing $20 but there is just one coin. ALL credit leverages the money supply creating a “fiat” system constructively. To create a world where money is an IOU on a one-for-one-basis, there cannot be ANY credit whatsoever. Gold is a hedge. Leave it alone. We don’t need government getting their dirty hands on it. Hello! What’s the problem!"
Agree completely, a gold standard would change nothing, as it is fractional reserve banking and those running it that is the source of our problems.
It all comes down to what is an acceptable level of fractional banking. A competitive advantage goes to the bank that can figure out a way of skirting around the acceptable level. Think 600 Trillion in derivatives floating around out there.
It occurs to me that all the banks have flouted acceptable levels of fractional banking for a long time.
Banking would be more transparent if there is a known quantity of Gold in the vault. Obviously no one in the banking game would be content with Gold as the ultimate means of settlement. To that end I would like to see banks separated from trading desks to stop the obscene leverage.
If Willie Sutton had understood what a bank really was he would have opened a bank rather than stealing from the tellers "because that's where the money is"
What do you guys think about the historic lows in commercial COMEX shorts? Possible covering before position limits? Time to get bullish on silver again? Or is it no big deal?
http://www.gotgoldreport.com/2011/10/comex-commercial-silver-net-shorts-lowest-in-eight-years-.html
GM - I think it's hard not to interpret this as bullish. I'm pretty tempted to nibble if silver spot goes below $30 again (despite, like everyone else, having been burned twice this year by silver already...)
I'm sort of fantasising about one more sharpish dip down, at which point I hope a serious upward rally to $34 - 35 will commence in earnest. I'm still kicking myself for not being liquid in time to buy in at $26 - that would've been one hell of a money shot...
That said, if the commercial shorts have already covered, then from where will the short squeeze come to drive spot price higher? Or am I missing something really obvious?
It looks bullish but as has been pointed out by Victor it's only 5% of the market. Throw in the record demand at the mints and it's looking pretty good to head higher.
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