Tag Archives: FOFOA

Two Tier Beer – #freegold

guld

En kommentar om hur det kan vara så att det finns två guldpris och två guldmarknader. #freegold

Marco Polo,

You walk up to the bar and order a beer for $5.00us. The bartender looks at you and says, why do you pay that price for beer? There are drops of beer right there on the bar, which you can have for nothing!

You say, “there aren’t nearly enough drops of beer on the bar to serve my purpose, and it would be way too much work to gather it all, even if enough drops were available. I have no use for drops, I need a full mug. I’ll just pay the $5.00, please.

Two-tier beer.

fofoa.blogspot.com/2014/02/think-like-giant-3.html?showComment=1396784992053#c4266860624531529973

EURO Becomes A Port In The Storm

Intressant. Vad är den hemliga ingrediensen månne? Guld.

Euro Becomes the Port in a Storm
As Central Banks Mull Pullback of Easy Money, Investors Turn to Relatively Stable European Currency

The euro is emerging as an unlikely oasis in the latest bout of market turmoil.

Assets ranging from Japanese stocks to emerging-market bonds to U.S. Treasurys have slumped this spring, as investors brace for the possible pullback from easy-money policies by the world’s major central banks. But the euro has largely avoided the volatile trading that has whipsawed other currencies, including the dollar and the Japanese yen, gaining about 4% against the greenback over the past four weeks to trade late Friday at $1.3345, near a four-month high.

It is a dramatic reversal for a currency that frequently has been at the center of global market turmoil in the past few years. Investors had put on record bets that the euro would fall, fueled by Europe’s economic slump and questions about the long-term viability of the currency union.

Mer här: online.wsj.com/article/SB10001424127887324049504578545601046075438.html

“The euro, probably more than any other currency, represents the mutual confidence at the heart of our community. It is the first currency that has not only severed its link to gold, but also its link to the nation-state. It is not backed by the durability of the metal or by the authority of the state. Indeed, what Sir Thomas More said of gold five hundred years ago – that it was made for men and that it had its value by them – applies very well to the euro.”

Läs mer: – FOFOA EURO GOLD

Ingrediensen:

The End Of Gold – Matrix Sentry

gold hand

Paper gold is not acting dead, yet. As a former trader, I see nothing particularly alarming when looking at the long term Gold Chart. Price is right at the lower boundary of a trend channel that has been in place for over a decade. For the status quo to be maintained we would expect a rally back toward the middle of the channel, then a series of higher lows that stay within the confines of the channel. If that does not occur, I would say the character of the trend is definitely changing.

In order for me to say the bull market in paper gold is over, I would need to see a move down through 1300. That would be a Fibonacci 38.2% retracement and a move through that level violates strong natural support in the bull market. The only time we have seen that kind of retrace was during the crash in 2008, and then there was a very strong V bottom reaction after the 38.2% level was briefly breached. That reaction solidified the notion that market was inherently bullish and the weakened price was refreshing the trend.

A move through 1300 without a strong buying response similar to what was seen in late 2008 and 2009 suggests an end to the bull market in paper gold. Since I do not see fundamentals for gold changing, as a result of a miraculous resolution to the $IMFS crisis, the need for gold will remain. The lack of ability of “gold” to adequately satisfy the need for gold will be reflected. I expect this to be a sudden realization and not a gradual one. That should provide an exclamation point in the form of a waterfall and should set off a stampede. It will not be hard to miss and we will not be asking whether this is the end of “gold.”

fofoa.blogspot.se/2013/02/think-like-giant-2.html?commentPage=4#c7386032956778916722

Think Like A Giant 2 – FOFOA

Nytt inlägg av FOFOFA som förklarar och förtydligar flödet av guld som sker dagligen mellan London/BIS och världens superrika. De som är så rika att de kan leva ett liv i totalt överflöd utan gränser och ändå ha pengar kvar som de måste stoppa undan; “A Giant that has 100mil piling up on its doorstep every day”. Inlägget förklarar varför vi som räkor “shrimps” kan få ta del av denna enorma uppvärdering på ett sätt som inte dessa jättar kan.

Artikeln: fofoa.blogspot.se/2013/02/think-like-giant-2.html

Första artikeln: fofoa.blogspot.se/2012/10/think-like-giant.html

Think Like A Giant 2

“Think that I a fool, because I trade gold for thousands US an oz.?
You will think much on this in the future.”
 –ANOTHER

The true value of gold, as a monetary currency, in today’s current US$ values, is over $30,000. If all currencies were destroyed, and gold only was used, this value would be higher. However, currencies will be used in the future, as today, only their value in trade will change. They will no longer be held as reserves, without gold at their side!

Simple Freegold – FOFOA

bar_pile_54_xlg

Under posten “The Triumvirate of Wealth” skrivs följande kommentar för att beskriva Freegold på ett enkelt sätt.

FOFOA: Fractional reserve in and of itself is not such a terrible thing. The problem is that it creates a moral hazard. This moral hazard is such that even regulation cannot fix it because ultimately the regulators become morally corrupted by the system.

The shift that is coming in the gold market, from paper to a physical market, is the ultimate conclusion to a fractional reserve system. It is the collapse of the system as confidence is ultimately lost that there is any reserve actually being held in your name.

If we only use fiat currency as a unit for trade, and not for store of value, but instead have a non-fractional wealth reserve riding shotgun, the system will once again become sustainable.

The currency will fluctuate per the actions of the printer, but if he prints too much, more value will flow into the wealth reserve. If the printer is responsible, people will gradually be willing to hold the fiat for longer and longer periods of time. Ultimately, if the printer remains responsible, some people may hold the fiat as a store of value. But then this will tempt the printer to print more and value will flow back into gold.

This is where evolution is taking us. It is not taking us back, it is taking us forward. We are evolving to a place where governments print the money we use for trade, but not for savings. They will have to earn our trust again before we will save in their currency.

FOFOA

freegold_Money_Triangle

Freegold_Quadrangle

After Freegold – MatrixSentry

Image: Berlin's First

MatrixSentry om sparande efter FreegoldLegs – FOFOA

The “public” will not bring on Freegold through a rush into gold coins. The public will never get onboard until after the fact, when the wisdom of owning physical gold is self evident.

A market for convenient allocated gold products will spring up following the demise of gold derivatives. Joe Public will simply trade his currency for allocated ounces to save, then trade his ounces back into currency when he is ready to consume. No need to “learn” physical gold, it will be exactly like what he is used to now with stocks, ETFs, and mutual funds. Joe will simply understand that his “allocated physical gold fund” offers the ultimate safety after living through the destruction of his paper wealth, including paper derivative gold.

fofoa.blogspot.com/2013/01/legs.html?showComment=1358525602230#c2565412715724535269

It’s The Flow Stupid – Guld & Olja

flow of value gold

Olja är den marknad som är tillräckligt stor för guld att gömma sig i. Anledningen till att priset på olja har legat relativt stilla senaste årtiondena är att guld handlas för Dollar + en liten mängd guld. Detta har dock ökat och olja handlas nu för Dollar + en större mängd guld. Detta sker under bordet och borta från rampljuset.

CBs säljer guld för att guldet måste flöda. Guld måste byta hand för att olja skall flöda. Olja och guld flödar i motsatt riktning. Väst har snart slut på guld. Olja måste flöda för att vi skall kunna leva som vi gör och för att samhället som vi vet det skall fungera. Högre guldpriser kommer innebära att guldet slutar flöda i den mängd som behövs för att hålla oljan flödande. Om det inte sker en uppvärdering av värdet på guld för att representera den oljerikedom som har tagits upp ut jorden.

LÄS: fofoa.blogspot.se/2010/10/its-flow-stupid.html
Från The Gold Trail: usagold.com/goldtrail/archives/another1.html
Läs ovanstående. Nu. Köp. Guld. I går.

Oljeproducerande land: You don’t care what the current commodity price of gold is, your future generations will keep it as real wealth to replace the oil that is lost. Before the future arrives gold will be, once again valued as money and can be truly counted on to appropriately represent all oil wealth!

You see, when paper trading volume dries up it’s a bearish sign, but when real physical gold volume drops it’s bullish! That’s because gold is being cornered on a scale never seen in history. LBMA is doing its best to show real volume exists!

The Western governments needed to keep the price of gold down so it could flow where they needed it to flow. The key to free up gold was simple. The Western public will not hold an asset that’s going nowhere, at least in currency terms. The problem for the CBs was that the third world has kept the gold market “bought up” by working thru South Africa! To avoid a spiking oil price the CBs first freed up the public’s gold thru the issuance of various types of “paper future gold”. As that selling dried up they did the only thing they could, become primary suppliers!

In the early 1990s oil went to $30++ for reasons we all know. What isn’t known is that its price didn’t drop that much. You see the trading medium changed. Oil went from $30++ to $19 + X amount of gold! Today it costs $19 + XXX amount of gold! Yes, gold has gone up and oil has stayed the same in most eyes.

Ever notice how many important Middle Eastern people keep a residence in London. It’s not because of the climate. The most powerful banks in the world today are the ones that trade oil and gold. It is in the “city” that the deals are done by people who understand “value”! Westerners should be happy that they do because the free flow of oil and gold has allowed this economic expansion to continue this past few years.

Understand that oil is still traded for a certain number of US$ but after the deal is done a certain amount of gold is also purchased “with the future flow of oil as collateral”.

AND THE KICKER:

Last one on this topic until more ANOTHER posts. I’m not sure that it would be necessary to have that large a cabul in on the “offer” of oil for gold. Given the rather small market in gold in comparison to oil/currencies it would only take one or two well endowed oil states to pull this off. Here’s why.

Let’s say the Saudi’s have been accumulating gold through the back door ( approx. 5,000 tonnes ) . They sell say 20 Mln Bbl oil a day. Close enough. At one ounce of gold per thousand Bbl oil that’s 10,000 ounces of physical gold per day. That’s a lot of physical gold.

The first few moments after the Saudi’s proposal to trade oil for gold at a very steep discount of 1000 Bbl/oz ( approx. 1.5% of current US$ price ) there would be
roars of laughter. One fast thinker after another would think “Hey. I buy some gold at $300/oz, trade for oil to receive 1 Mln Bbl, then sell the 1 Mln Bbl for US$ 10 Mln. Net profit is

$10,000,000-$300,000=$9,700,000. Easy money.

Everyone at once turns to the gold market to buy, which promptly shuts down. Now no one is laughing. Because everyone realizes that gold is now worth at least $10,000 per ounce and no one is prepared for that revaluation. Whoever has gold now has 66.67 times the purchasing power in that stockpile. What appeared to be a stupid offer has now become a complete revaluation of all gold stockpiles vs all currencies.

Who has the gold?