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AlDente67

Paper Gold

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Came across a brief post recently and thought it was interesting....

 

I recall inquiring about moving a good amount of my old IRA accounts into gold a few years ago when the doom and gloom about the markets was all over the place (which is not to say it will still tank tomorrow, but anyway....)
So I contacted one of those that you see on TV with the B-list actor pitching the benefits. The company said they store their gold in a facility in Texas somewhere and that I could withdraw it anytime I wanted and take physical delivery.
Now that typically would trigger the full tax and penalty from the IRS, if you have ever found out by taking an early draw on a stock or cash account and not restore the funds within 30 days.
So I often wondered about other claims of taking possession and still be considered an IRA/401k. But a few of the did.
In this case, this company would only hold the metals and send a paper statement. I never felt comfortable with that (just a piece of paper anyone can do in MS Word), so I backed out. They called me every day for a year...even tried to threaten me with contract breech even though there wasn't any contract.


But here is the article:


ONCE AGAIN WARNING: PAPER GOLD IS NOT REAL
I have mentioned this a couple times over the years, and something BIG just happened on this topic - a German man who had 299 ounces of paper gold tried to cash it in for real gold, and the company he bought it at did not have it on hand
So let me entertain you with how the scam works, and how gold prices have been kept low:
Jacob decides to open a gold trading business selling paper gold. Daddy Jacob Senior happens to have about 500 million he can loan Junior. Junior then sets up a corporation which is a person under the law just like you and me. That "person" and not Junior, will take the rap when Junior pulls out and robs everyone. I know, that should not be legal but it is. It's how the modern scam is run. Anyway -
Jacob decides to name his newly created "person" Equity Asset Group, and actually does have daddy's money (at first) to back it up. He gets some physical gold on hand for audits, (lots of it) and it all looks legit. He then puts the gold on the market, and advertises "Buy gold from Equity Asset Group" and we'll even store it for you, so you don't need to worry about security and having it be stolen. Then Clyde, who's getting old, sells the farm and buys gold from "Equity Asset Group" and is happy, because he knows his gold is safe if his apartment gets robbed.

200, 000 people just like Clyde "buy gold", SO MUCH gold that in total, they put 2.5 billion into the kitty, which is only backed by $500 million in gold. Jacob Junior then buys a couple jets with the excess 2 billion and funds Planned Parenthood and others because that will keep him safe during audit time in this satanic system, and throws a little more into parties and paying back daddy the original 500 million and perhaps even sets up a few foundations so he can do a little laundering and play the Soros gig.

Everything's sailing along just fine, so he decides to "sell more gold" and leverages that original $500 million's worth to 10 X instead of 5 X. He MILKS IT GOOD, repeatedly, until it is out 20 or 30X. It all works fine, because Clyde and the rest of them are happy their "gold is safe somewhere" and Jacob Junior did have enough to answer the occasional request for it. But when taken, he never put anything back. Now he's got $190 million worth of gold but so what, it's working and he's floating in BILLIONS.

Then, someone calls out the last batch of gold like this guy in Germany did, and it can't be delivered. Jacob then declares the "person" he set up to front it all as the culprit, people sue that "person" - Equity Asset Group - get nothing, and Jacob walks free, having robbed that person blind. Now he's got a few billion left over to start the process all over again and invents an entirely new person out of thin air to take the rap.

The above is a bit simplistic, but it outlines the situation PERFECTLY.
Right now, the gold markets are leveraged at least 10:1 against actual gold available, there's not a chance they can pay it all out. That means they stole 90 percent of people's money based on a fiction of "value" and an illusion that something was actually there to cover it. This can't possibly end well, if you have paper gold you had damn well better cash it out for real gold - one little bit at a time - because the vast majority of the people who got suckered into it are going to get screwed. BE THE FIRST IN LINE BY ACTING NOW. Do not let the guy holding the short stick be you!

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1 hour ago, AlDente67 said:

ONCE AGAIN WARNING: PAPER GOLD IS NOT REAL

 

1 hour ago, AlDente67 said:

Right now, the gold markets are leveraged at least 10:1 against actual gold available, there's not a chance they can pay it all out. That means they stole 90 percent of people's money based on a fiction of "value" and an illusion that something was actually there to cover it. This can't possibly end well, if you have paper gold you had damn well better cash it out for real gold

That last sentence is the main point. Gold is so manipulated, if you don't hold it in your hand, you don't own it.

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1 hour ago, AlDente67 said:

Came across a brief post recently and thought it was interesting....

 

I recall inquiring about moving a good amount of my old IRA accounts into gold a few years ago when the doom and gloom about the markets was all over the place (which is not to say it will still tank tomorrow, but anyway....)
So I contacted one of those that you see on TV with the B-list actor pitching the benefits. The company said they store their gold in a facility in Texas somewhere and that I could withdraw it anytime I wanted and take physical delivery.
Now that typically would trigger the full tax and penalty from the IRS, if you have ever found out by taking an early draw on a stock or cash account and not restore the funds within 30 days.
So I often wondered about other claims of taking possession and still be considered an IRA/401k. But a few of the did.
In this case, this company would only hold the metals and send a paper statement. I never felt comfortable with that (just a piece of paper anyone can do in MS Word), so I backed out. They called me every day for a year...even tried to threaten me with contract breech even though there wasn't any contract.


But here is the article:


ONCE AGAIN WARNING: PAPER GOLD IS NOT REAL
I have mentioned this a couple times over the years, and something BIG just happened on this topic - a German man who had 299 ounces of paper gold tried to cash it in for real gold, and the company he bought it at did not have it on hand
So let me entertain you with how the scam works, and how gold prices have been kept low:
Jacob decides to open a gold trading business selling paper gold. Daddy Jacob Senior happens to have about 500 million he can loan Junior. Junior then sets up a corporation which is a person under the law just like you and me. That "person" and not Junior, will take the rap when Junior pulls out and robs everyone. I know, that should not be legal but it is. It's how the modern scam is run. Anyway -
Jacob decides to name his newly created "person" Equity Asset Group, and actually does have daddy's money (at first) to back it up. He gets some physical gold on hand for audits, (lots of it) and it all looks legit. He then puts the gold on the market, and advertises "Buy gold from Equity Asset Group" and we'll even store it for you, so you don't need to worry about security and having it be stolen. Then Clyde, who's getting old, sells the farm and buys gold from "Equity Asset Group" and is happy, because he knows his gold is safe if his apartment gets robbed.

200, 000 people just like Clyde "buy gold", SO MUCH gold that in total, they put 2.5 billion into the kitty, which is only backed by $500 million in gold. Jacob Junior then buys a couple jets with the excess 2 billion and funds Planned Parenthood and others because that will keep him safe during audit time in this satanic system, and throws a little more into parties and paying back daddy the original 500 million and perhaps even sets up a few foundations so he can do a little laundering and play the Soros gig.

Everything's sailing along just fine, so he decides to "sell more gold" and leverages that original $500 million's worth to 10 X instead of 5 X. He MILKS IT GOOD, repeatedly, until it is out 20 or 30X. It all works fine, because Clyde and the rest of them are happy their "gold is safe somewhere" and Jacob Junior did have enough to answer the occasional request for it. But when taken, he never put anything back. Now he's got $190 million worth of gold but so what, it's working and he's floating in BILLIONS.

Then, someone calls out the last batch of gold like this guy in Germany did, and it can't be delivered. Jacob then declares the "person" he set up to front it all as the culprit, people sue that "person" - Equity Asset Group - get nothing, and Jacob walks free, having robbed that person blind. Now he's got a few billion left over to start the process all over again and invents an entirely new person out of thin air to take the rap.

The above is a bit simplistic, but it outlines the situation PERFECTLY.
Right now, the gold markets are leveraged at least 10:1 against actual gold available, there's not a chance they can pay it all out. That means they stole 90 percent of people's money based on a fiction of "value" and an illusion that something was actually there to cover it. This can't possibly end well, if you have paper gold you had damn well better cash it out for real gold - one little bit at a time - because the vast majority of the people who got suckered into it are going to get screwed. BE THE FIRST IN LINE BY ACTING NOW. Do not let the guy holding the short stick be you!

Gold...meh....  silver coins, canadian simver maple leafs, in hand.

 

Or just a shit load of pre 65 quarters

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26 minutes ago, father-of-three said:

If something really bad happens, the other valuable precious metals are copper, brass and lead, in cartridge form, of course!

Ha... for sure...

With brass/lead, you can get all the Gold and Silver you want!

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4 hours ago, father-of-three said:

I like the (mostly) silver coins too.  Yes they're not worth as much, but they do feel good in my hand!

If something really bad happens, the other valuable precious metals are copper, brass and lead, in cartridge form, of course!

I read somehwere cant recall where that ther is a huge price differential to the silver to gold price..something like silver should be higher based on the gold price...

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On 1/22/2020 at 4:31 PM, USRifle30Cal said:

I read somehwere cant recall where that ther is a huge price differential to the silver to gold price..something like silver should be higher based on the gold price...

I understand one thing to look for in metals is the silver gold ratio,  now it is about 85silver to 1 gold    85 onces of silver to buy 1 once of gold,  when and if it swings to gold you convert your silver to gold,  im not an expert but thats what I have been told.     I also break up all my purchases (converting paper cash metal)  some eagles some bars and some 90% coins.   90% coins they say are the best value but I dont trust the govt to make melting them illegal if the value shyrockets,     dont want to be stuck with a very expensive  coin collection that I would have to sell 1 coin at a time.

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16 minutes ago, revenger said:

dont want to be stuck with a very expensive  coin collection that I would have to sell 1 coin at a time.

That's what you need to think about, if it really came down to where you need to use your coins to buy necessary items, which would be easier to use in commerce, gold coins or silver coins, when buying vegetables or meat from the local farmer?

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22 hours ago, Sniper said:

That's what you need to think about, if it really came down to where you need to use your coins to buy necessary items, which would be easier to use in commerce, gold coins or silver coins, when buying vegetables or meat from the local farmer?

Good point.  "Hey mister, I will take 3 loaves of bread.  Got change for a thousand?"

 

Then again, if it came to that, youmight not be getting change anyway.

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4 minutes ago, AlDente67 said:

Good point.  "Hey mister, I will take 3 loaves of bread.  Got change for a thousand?"

 

Then again, if it came to that, youmight not be getting change anyway.

More like i will give you 10 .22lr round for that biscuit

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1 hour ago, AlDente67 said:

Good point.  "Hey mister, I will take 3 loaves of bread.  Got change for a thousand?"

Then again, if it came to that, youmight not be getting change anyway.

If you're at that point of having to swap your gold coins for food, trust me, life in the neighborhood isn't going to be all that pleasant. Just trying to not be eaten by the Zombie hoards will be a full time job!

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Silver would make a lot more sense for small transactions! I think bartering and trading for goods will be the preferred method.  Precious metals won't keep you alive today and getting your money back from them requires that you survive and some sense of normalcy returns!

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Silver would be a better choice, but cash will work a lot better. When it gets to the point that you'll be breaking out your silver to buy food, I think it will be tough to find someone who will take it. Anarchy will be the norm, since 3/4 of the population lives paycheck to paycheck, and has less than a weeks worth of food in their house.

After a few weeks of paychecks not flowing, guess what the streets will look like?

I see silver or gold being use in a specialty situation for barter for buying something special, or finding someone really desperate to unload something, and will take that in exchange. The majority of the population have no idea what a silver or gold coin is worth, and will think a silver 1 oz. coin will be worth $1.

I have both silver and gold, but have no illusion I'll do anything with them. Probably my kids, when I'm gone, will have fun spending them....

Here's an example of the population, a great 3 minute video:

People Choose Free Candy Bar over Free 10 oz Silver Bar (Worth $150) in Experiment

 

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16 minutes ago, JohnnyB said:

That video shows what idiots the general populace truly are! 

This is true, but if you look at those people, they seem to be your average middle class Joe6pack, not one offs.. Very few know what a silver/gold coin actually is, and even fewer know what they are worth. That's why using them will be really tough.

Here's two more videos, one for a 1/10 gold coin versus candy bar, and the other, a 1 oz gold coin for $25. It will amaze you the stupidity of the sheep...

Offering random people a free 1/10 ounce gold coin (worth around $140.00) or a free Snickers bar,

Mark Dice tries to sell a 1 ounce solid gold coin for $25 outside of a coin shop in San Diego, CA. HINT- It's worth WAY more than $25, but does anyone want it?

 

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Gold and silver are a shit investment. Unless radically mis-priced, they are just an inflation hedge and stable.  Paper is worth shit as it's mostly backed by either nothing, something under 15% of the paper value in money, or more paper in the form of mining contracts. 

Metal is also kind of worth jack shit the market for turning metal into cash and vice versa has a premium attached to doing either that will mean you likely lose money on the transaction. 

Unless it is inherently useful as is, it won't have any trade value remotely equivalent to what you paid until you have a flourishing black market that happily takes it in trade. Before that black market will take gold and silver, it'll take decent barter of actual useful things. 

The fact that you have faked ingots of precious metals that are a pain in the ass to detect means even that may not happen. 

The only SHTF use I can find for it is if you have roughly enough to buy transport someplace from persons not intending to participate in your current domestic economy.  

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