Thursday, November 7, 2013

Something fishy about the gold market

All I want to say is, something is fishy about the gold market in the sense that if the Germans demand to have a part of the gold received in Germany, I think it would take eight years, we should put gold on three Boeings 747′s and you ship it to Germany and that’s it.

If the gold would be held in Germany, in a vault, and if there was a financial panic and they really needed to draw loans against the gold that they hold in Germany, they could obtain loans at any time from a bank or from another central bank or whatever it is. So they could have the gold in Germany and if they wish to obtain a large loan against those gold reserves and they wouldn't be that much anyway, but if they wanted to obtain a loan, they could have an auditor come and check the gold and then a bank or a central bank would essentially lend them money against that gold.