A Warning to Those Who Have Been Investing in Gold and Silver


I have written several articles on how tightly held the REAL trading in gold and silver really is, and how the small investors don’t have a chance to “move” in the market.  I am sure a lot of my readers have been investing in gold and silver, and why not look where the market is going.  But Caveat Emptor!

If you do not have PHYSICAL possession of the gold and silver you think you have invested in, you may have already been screwed big time.  If you google “gold and silver oversubscription” today, you will get over 66,000 “hits”.  Almost every gold and silver commodities vessels are grossly oversold.  What that means in very simple terms, the “certificate” you are holding that says you own “X” amount of gold or silver may NOT be redeemable in physical gold and silver if you demand it.

When we hit the hyperinflation panic point, and that is say oh RIGHT NOW!, then everyone will scramble to get their gold and silver that is NOT there.  If you have been paying to “STORE” your gold and silver with the brokerage firm, you are still in that boat.  You guys are the real smucks to these slick trading firms because not only did you pay in advance for your “bullion”, you also paid “storage fees” for stuff that doesn’t really exist!

If you think I am kidding, try and get physical delivery of your gold or silver and see what happens next.  I want you to consider what some of the biggest Hedge Fund Investors are quietly doing behind your backs and how the MSM is complicit in keeping everything on the “QT”.  The following move was made today by The University of Texas Investment Management Co., the second-largest U.S. academic endowment.

They took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board.  The fund, whose $19.9 billion in assets ranked it only behind Harvard University’s endowment as of August, according to the National Association of College and University Business Officers, added about $500 million in gold investments to an existing stake last year, said Bruce Zimmerman, the endowment’s chief executive officer. The holdings are worth about $987 million, based on yesterday’s closing price of $1,486 an ounce for Comex futures.

The decision to turn the fund’s investment into gold bars was influenced by Kyle Bass, a Dallas hedge fund manager and member of the endowment’s board, Zimmerman said at its annual meeting on April 14. Bass made $500 million on the U.S. subprime-mortgage collapse.

“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services,” Bass said yesterday in a telephone interview. “I look at gold as just another currency that they can’t print any more of.”

Also consider this: Belarus’ central bank has stopped selling gold to local retail customers for Belarussian roubles, it said on Friday, after demand for precious metals soared due to expectations of a currency devaluation.  The bank did not explain its decision.  Belarus is in talks with Russia on a $3 billion bailout package that Minsk hopes will help it avoid a painful devaluation of the rouble and offset the large current account deficit.

Belarussians bought 470 kilograms of gold from the central bank last month, up from 209 kilograms in January and February together, as they sought to protect their savings. Analysts say that Belarus will have to eventually devalue the rouble by about 20-30 percent even if it receives aid from Moscow. However, the central bank has said it would not make any such moves until late April.

What this means is we have reached the tipping point, I believe, that I have been warning everyone about for weeks now.  Because the central banks are trying to print their way out of the crisis we are in, currencies around the world are headed for huge devaluations and within, I think, a matter of days.  I am not talking about some small corrections in currency valuations, but more in the range of 20 or 30%!

So my good friends, I would advise( friendly advice, not investment advice, as I am not an investment professional) you to really pay attention and if you are exposed here, get your gold or silver in your own hands.  The value of these commodities could go up even higher, but if you don’t physically possess them you are a lamb ready for slaughter.  I also wouldn’t be surprised if governments globally don’t start trying to confiscate privately held gold and silver in the near future.  It has happened before and it can happen again.  As I said Caveat Emptor!

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Author: redhawk500

International business consultant, author, blogger, and student of life. After 35 years in business, trying to wake the world to a new reality. One of prosperity, abundance, and most importantly equal opportunity. it's time to redistribute wealth and power.

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