Click here for the audio.
I would like to discuss a couple of Jim's topics. First, from the first half of this audio, I want to take a look at the EU, Russia, (Japan?), and Middle Eastern plans to replace the dollar with something else as the world's reserve currency. I would like to put forth a theory that they all might be planning this... but only one of them has the Ace of Spades.
Now think about Dubai.
What do you know about Dubai?
Here's a little reminder:
Even Donald Trump is building a hotel there! Click Here
So what does Dubai have to do with FreeGold and Jim Willie? Well, Dubai has spent the last 10 years building "the future". And now the future is almost here!! Think about when Another was writing in 1997. Look at the "before picture" above. Do you understand? What Another predicted didn't happen back then. Now they are ready for it IN SPADES.
Dubai now has a fully operational stock exchange! Gold and oil will all be traded through this exchange.
The UAE has the Dirham, but they are supposedly close to a unified Dinar for the Middle East. (Many currencies in the ME are called the Dinar, derived from Greek meaning "give").
The point is that I believe we will soon have a big surprise out of Dubai, one of the seven emerates in the United Arab Emerates. Dubai is going to be the equivalent of New York City in the new world, as far as international commerce and glamour is concerned.
And in this world... FreeGold! Remember, they may get less gold per barrel under FreeGold, but all gold is worth more, and that includes the 200 Tonnes they have accumulated since Another's warnings were delayed by 9/11 and Alan Greenspan. Our folly has given them untold wealth in the past 10 years, while what WE thought was wealth was just a desert mirage.
I am sure Jim Willie's "source" is correct about the plans in Europe, Russia and Japan. But right now, the Arabs hold all the cards. They have oil, they have gold, they have a currency in the works, and they have a shiny new exchange and a shiny new city.
None of this was true when Another was writing. "Oil" has had ten years to prepare since Another first saw this coming. Now "oil" is ready, and the rest of the world is failing. The EU may have plans... Russia may have plans... but the Arabs have a shiny new city, currency and exchange to go with their oil and their gold.
Look out world... this is the hidden news of tomorrow! And you heard it here first.
The other thing I would like to discuss is Jim Willie's comments about silver versus gold. Jim has clearly placed himself in camp with the likes of Ted Butler and Jason Hommel. But this is in clear contradiction with what Another and FOA said, as well as a growing contingent.
With the gold/silver ratio at a record 83:1 today, this has become a hot topic. People like Jason, Ted and Jim are telling you to play the ratio... exchange all your gold for silver. DON'T DO IT.
Jim's rationale is that the CB's can't sell silver because they don't have any. Therefore, they can't drive down the price. Ted and Jason proclaim the relative scarcity of silver. But here are some messages about silver that were posted in the last 24 hours from people I respect... all in line with the (THOUGHTS!) of Another:
From Jim Sinclair:
10. Exchange Traded Funds will not return the assets upon which it is based to you.
11. Sliver will demonstrate the fact that it is more industrial a metal than precious.
12. Silver is not a currency because it is simply too HEAVY to settle debts or to be universally fungible.
13. Silver performs best when there is reasonable industrial demand and distrust of currency. When this happens rounding up the gang and their money will have a lot to do with which party is elected.
Randy (usagold.com 16October2008; 15:03)
Some thoughts for Topaz
This is in response to your 4:17 commentary regarding silver’s market behavior being torn between “money” and “commodity”:
“Those who watch the red (or green) Ag line on it’s daily meander across the screen will be aware of her price tendency one minute to resemble and track Gold …and otoh at times to resemble her commodity cousins.
She just can’t seem to make up her mind - am I a commodity …or am I money!”…etc…
I’m going to put some thoughts out there as an opening premise that you might not immediately agree with, but just bear with them for a bit and we’ll see whether it all stitches together in the end.
You said, “If the free market held sway, I think you’d find it would come down squarely on the side of ‘money’…”
Since that premise leaves ample room for the consternation you’ve expressed, let’s simply try the other premise on for size — that silver is an industrial commodity first and foremost over any other role at which it may dabble. (And frankly I think it is appropriate to take this commodity-oriented view of silver because, whereas central banks are not shy about making use of gold reserves, they do not similarly hold silver.)
And with this premise being at odds with the one you initially hold, let’s gently ease into to by imagining it none the less remains a close race, with the commodity play dominating the monetary play by a slim margin of, say, 52% to 48% among bidders averaged over time.
For the sake of brevity and simplicity (but which I hope is still adequate to be instructive) we’ll limit our musings to what would be the naturally expected outcome of silver’s performance on the price-setting futures markets. Granted, it’s a dodgy business, but for the time being there is no getting around the fact that the futures markets hold sway with regard to the price quotes that make the headlines.
With central bankers pumping liquidity in the face of a credit seizure and an imminent economic downturn, there is certainly a mental tug-o-war in a silver investor’s mind regarding whether they should seek a monetary safe haven (from expectations of currency depreciation and/or financial system default) versus whether they should run away from a commodity that will almost certainly experience less industrial demand during an economic recession.
Looking at the downdraft in the wider commodity complex, our opening premise that silver is foremost a commodity goes a long way toward explaining it’s general price direction at the moment — with short sellers dominating the futures markets.
But we can’t forget that there is a significant camp of investors who steadfastly believe silver ought to perform more in line with its ancient (bimetallism) monetary kinship with gold. There are inevitably days in which the commodity camp players are largely on the sidelines according to the ebb and flow of economic and financial news, times at which the silver monetary camp can get the occasional upper hand in dominating the action on the futures market and thus setting the day’s price performance. These monetary silver boys would generally choose one of two alternatives. They would either simply go long silver, or more likely they would be bewildered by the current 83:1 silver:gold ratio (compared to the ancient monetary/currency kinship between 12:1 to 15:1) and would therefore go long silver while simultaneously shorting gold in an expectation that the ratio will eventually narrow.
This goes a long way toward explaining how you can witness the flip-flopping days of performance for its split personality.
But of course, with the majority of participants trading silver according to industrial commodity, downward pricing pressure will tend to win out in the current market environment. And on the other side, there is a larger (deeper pockets) contingent of participants who turn to gold as the foremost monetary safe-haven, thus putting upward pressure on the silver:gold ratio, overwhelming the silver camp’s lesser efforts at shorting gold. And eventually, in drips or in droves, the participants in the silver money camp capitulate their loss-making positions — they sell their silver contracts and unwind their gold shorts, thus driving the ratio to new heights, perhaps even to ratios large enough and tempting enough to lure in the next herd of silver monetary sheep to be unceremoniously sheared.
Steer clear of those meadows, or at least step nimbly, my friend, it’s a minefield out there!
Ender (usagold.com 16October2008; 15:48)
Sir Randy, can’t help but view your public thoughts
When the Ender looks at these two metals, it appears that there is a commodity - along with a monetary - function. IMHO, anyone would do well to hold either metal until the system breaks.
There is one significant difference between the two, one is a reserve asset on the books of the banks and the other is not. This is a significant distinction in the realm of monetary function. Gold stands ready to bailout the system, silver does not. If a bailout is required, CBs will not wait in line for Silver, but rather use what they already own – free and clear – to perform the job.
Silver will do very well if gold cannot perform the function.
Trade silver, save gold.
I must say that I agree with the above. I still have a considerable amount of silver myself. But it was all purchased BEFORE I discovered the truth that ANOTHER spoke ten years ago. And I would add that I have read dozens of opinions on this subject, and I find the opinion that Another spoke to be the most likely. Not just because it came from him, but because of thoughtful analysis based on all my readings.
That said, I would simply encourage you to not panic about the silver you already hold. It is much better than dollars or even Dinars. But I would encourage you to put all future efforts into gold. That's if you find what I say to be at least a little bit credible.
Silver may hold value, but gold will explode!
Remember, the future is known by nobody. It is only a collection of probabilities. And my goal is to identify the most probable of these.
I will post more later hopefully. Be sure to check comments if you are looking for updates. Sometimes will put new "finds" not worthy of a post in the comments section.
One final note. This does not make me in the least bit happy. I support Israel and I am at odds with these developments. But to survive in this world, you must look at reality without bias and then react. In this case, the only thing to do is to buy physical gold with any money you have that you do not need to live on for the next 6 months to a year. That's it. It is how it is and it is as simple as that.