Tuesday, October 7, 2008

ANOTHER (QUOTES!) II

It's time for another edition of ANOTHER (QUOTES!). This is where I post quotes from Another, written in the late 90's that seem eerily apropos today. This first one is a classic. And considering we may be facing a COMEX default in the next few weeks, and that gold lease rates have shot up, this one seems like it could have been written today. Also, consider that mere weeks ago gold was at the current "production cost" value.

Someone once said, "noone wants gold, that's why the US$ price keeps falling". Many thinking ones laugh at such foolish chatter. They know that the price of gold is dropping precisely because "too many people are buying it"! Think now, if you are a person of "great worth" is it not better for you to acquire gold over years, at better prices? If you are one of "small worth", can you not follow in the footsteps of giants? I tell you, it is an easy path to follow! An experienced guide is not needed for this trail, look around you and see. The real money is selling ALL FORMS of paper gold and buying physical! Why? Because any form of paper gold is loosing value much, much faster than metal. Some paper will disappear all together in a fire of epic proportions! The massive trading continues at LBMA, but something is now missing? The CBs are no longer lending! They will not anymore! We have reached production costs. Oil will have nothing of "gold paper" if gold must stay in the ground! And a CB values the wishes of oil far above it's return of leased gold! Hear me now, "if gold tries to go lower than US$ $280 the BIS will buy it OUTRIGHT in the OPEN for all to see"! They must! They will! I know. For no currency system could stand if "Oil" were to bid for gold!

Oil has kept "the deal" as the CBs sold paper to lower golds price! All is fair. Asia will bid for gold not as in the past. They now know that the free flow of oil has more value than the Pacific economy. But the price that was paid may be more than the world currency system can endure.

To close:

The US$ has risen on a flight of fear. That will now end as the LBMA shorts are given to wolves. If this fire burns too hot, gold will turn and it's trading halted. The price of oil will explode as gold becomes the "world oil currency"! Even now oil has locked the IMFs gold, Asia will bid against them no more. We come to extreame times.

Risk not your wealth in paper, we enter a period of truth.

This next quote is about silver. FOA seemed to be much harder on silver than Another was. Personally, I own some physical silver. But since I discovered Another and FOA it has been only gold for me. I still hold my silver, and I am on the lookout for one of a couple possible scenarios where I will either trade it in for gold, or it will become quickly apparent that my silver will come in very handy.

This quote is also a classic. I believe it was the first time Another was questioned about silver versus gold:
Silver will always be part of "gold money". But, is far too small a market for large, modern economies. Silver will do far better than any paper asset, only it will serve better as a "personal holding" than as a major money. If it is of your way to balance wealth, then silver will show value.

Metals have not shown their true worth for many years as the world has done very well. This is very good. But, all things do change! As it is our time and place to live this change, our thoughts must view the future as it must be. Who can know the minds of men and countries as paper burns?

This next quote seems prescient given our current situation:
As you read this, persons buy companies thru your Dow Jones at values that reflect "the supply of cheap oil" and it's good effects for business in general. What they do not see is the undoing of the currency world that "good business" must have to operate. The "oil standard" created and held this currency world intact, thru much abuse. Today, the "derivatives", that require a long future of "good business", are being "devalued"! Look far and wide as you are, now , at the top of this hill! The world will head down this slope because it is not a machine and is subject to "thin air".

History has shown that as persons slip from a high stance, they grasp for items that are known to be secure! They do reach for real things! Derivatives offer not a solid hold. It is well known that the modern gold market is fat with contracts derived from "intentions to supply". It is also known that the US$ continues on the "oil standard" because of this paper. No doubt, oil will continue to flow, but what currency will take this supply as we "walk down the mountain"?

In that day, "good money" will become "bad money" and "derivatives" will be paid to the holders of "derivatives"!

As we stare at the possibility of an imminent "paper gold" default, this next quote gives us a formula by which we can "see through the curtain". I would be very interested if someone who reads this could apply this formula today...
Look to LBMA, for currency looking for gold! Compare the Comex average open interest with it's average daily trading volume. Now use average daily trading volume at LBMA and convert to open interest in London, using comex ratio. Here you will find "real currency" in "paid for" gold derivatives ( not futures ) ! This money is now looking to convert to physical! It is caught in this paper with no way out! Know that this amount covers not CB gold moved by big trader! That wealth is safe, as it is for the good of all in those countries!

This quote is Another's standard warning to those who would rather "trade" gold on the exchanges than to go to the coin dealer and buy some coins:
The price of "hunch" is very to high for investment! It is the reason so many paper gold buyers take on appearance of " to much sun"! I offer this, do not use the solid reasons for owning physical gold, as a purpose to trade it. Your profits from such trade, will, on the last day, in the heat of fire, burn as paper does! Sir, the world is going to change, and the rules of engagement will also change. Gold will be repriced, once! It will be enough for your time of life.

And finally, this last quote for today seems completely apropos considering the reference to the Great Depression, down the barrel of which we are right now staring. I will include the question to which Another was responding. Note that all the above quotes came from January and February of 1998!! This particular one was made on Valentine's Day, 1998. Was it wrong? Or are we just now being forced to face a reality that has been lingering over our heads for more than 10 years? As I have said before, read Another's comment slowly, and read it two or three times. I think you will be amazed...
REPLY:

Date: Sat Feb 14 1998 20:00
WetGold ( to: ANOTHER ) ID#243180:
This appears to be a monumental world crisis much worse than the depression of the early 20th century. Could U expand further ?

Mr. WetGold,
In the past, nations and states have lost all as " the world changed" and these entities lost the ability to trade, at a profit. It is as history, and happened many times. Today, it is not the same. The "wealth of nations" are held as "thoughts of value" not real value! And even these thoughts are "in debt" as they are owed to other nations. As it has always been, time moves the minds of people to change, and with this, the thoughts of value also change. In this day, as not in the past, the loss of paper value as a concept will destroy the very foundation of wealth that this economic system is built on. This drama has started and is well underway!

There are nations that will try to "resource a new currency" as the old financial system implodes. Oil or gold or both may be used. If it is done at the correct time, much will be gained by all! Fail this Attempt, and gold will never trade on an open exchange again, in our lifetime! We will see this end in our time. [He means FreeGold will be born! Gold "on an open exchange" is gold as a commodity. FreeGold is gold ONLY as a store of wealth!]

thank you.

FOFOA

3 comments:

FOFOA said...

Just a postscript.

There were some interesting posts on USAGold today. They will probably continue after I post this. But here they are in the order of appearance:

#1 Not remarkable other than it spawned a few more.
#2 Slightly more remarkable as it spawns a thought.
#3 Randy connects the thought to 1999.
#4 PA connects the dots in an interesting way.

I must say that I do not agree with PA beyond his first #4. I think he is giving WAY too much credit to the powers that be. They just aren't capable of what he says. And also, those "conspiratorial" steps are not necessary to get from there to here.

Another saw what was coming and now it has arrived. It is as simple as that. You don't have to assign a conspiracy theory to every step along the trail. Some things are simply inevitable.

Anyway, the point of this postscript was to point out a quote from Another on Feb. 16, 1998, 19 months before the Washington Agreement was made, in which he gave us a rare hint at his identity:

"So where are we now? I'm' not sure! How much gold paper is out there? If you look at the comex ratio of average daily volume to open interest, it's sometimes around 8. Funny thing that ratio is close to the gold commitments traded in London. Multiply, say 40 million ozs by the ratio of 8 and we get 320,000,000 ozs. of gold. Now, the money is in this gold paper, paid up. Just no gold yet, I think? That's about 10,000 tons, I'll be dam! That's a lot of IOU gold, don't you think? Add to this, that between the IMF and what CBs could sell, only about 1/3 of it is available at a much higher price, if at all! Then again, I'm not in any position to know this, am I?"

Very interesting when you finally put it all together.

Capt Goodvibes said...

very interesting indeed.

I have been playing catchup with this blog.

Having read all of Another and FOA, I was pleased to read your post 'The King And His Gold'.
I would be most interested to see what additions/changes you would make to the story now?
A valuable piece for those of us who are relatively new to this trail, although without the persistence to read the original USAGold forums, such an introduction to the Thoughts may well be easily dismissed for it's seeming simplicity.

FOFOA said...

Hello Captain,

Thanks for the comment. I'll have to read through that post again and see what I would change. Been a while since I've read it, and I have learned a lot since then.

Sincerely,
FOFOA

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