Goldman Does Gold

Goldman Sachs and JP Morgan are leaping head-first into gold futures, do you wonder why? It should be fairly clear. If you need an explanation, feel free to get in touch. I invite any of the Evil Twin rats to comment... anonymously, of course. Come on, we see what you're doing, why don't you chime in? I normally don't republish this much here on GS666 but this is extra important and you'd do well to pay attention. It's too obvious not to. - JDA

What Do You Mean "Gold Shortage?"

WC Varones teaches us a lesson in gold:

In related news, the U.S. Mint suspends production of proof and uncirculated gold and silver coins. They claim that they can't get the blanks fast enough to mint enough coins, which is complete bullscheisse. You may recall last year's shortage of physical gold. That would obviously have been a sign that the Mint needed to ramp up production. But no, a year later, they still can't meet demand, claiming that they can't get enough "blanks," the coin-shaped pieces of gold on which the Mint impresses the images and writing.

Let me let you in on a little secret. If the government wanted you to have gold, it would not be a problem to find a company that was able to form gold into little blank coin-shaped pieces. A hobbyist machinist could set up a pretty good operation in his garage to do this.

JDA hereby tips her hat just for use of bullscheisse alone. Oh, and he's right. I'd tell you to hit the bunker but chances are if you aren't hunkered down by now, it's too late to start your disaster planning. Sorry about that.

JDA also recommends Antal Fekete's Gold is pale because so many thieves plot against it (via GATA):

Let me spell out for my readers what the vanishing of the gold basis means from the point of view of the puppet-masters of the gold futures markets.

It means that they are fighting a losing battle. They are desperately trying to coax gold out of hiding by offering ever higher bribes -- not in terms of the price but in terms of the basis. A low basis means that they offer to take your cash gold and let you have gold futures in exchange at a discount price. (The discount is contango minus the basis, so that the two are inversely related: As the basis falls, the discount increases.) This will allow you to invest an amount equal to the price of gold (less 5 percent, the margin on the gold future) in any way you want and, having paid the reduced contango, you can keep the profits. The point is that you will still benefit from any advance in the gold price, just as you would if you owned cash gold. You can have your cake and eat it too.

read the rest via Jr Deputy Accountant here [JDA hereby disclaims she's no gold bug but come on, you can't help but connect these f&^*ing dots]

Like WC Varones declared... "so how about that gold?"