Acquiring precious metal via PAGE, Comex, LBMA, etc, etc should be secondary to owning the physical metal. End the end, if you don't hold it, if you're not your own Central Bank, then its only a "promise" to deliver in my opinion. That said, acquire as much physical as you can and store it properly, secretly and safely. When it comes to Precious Metal..."Be the Bank".
China will be selling real physical gold & silver, not dubious ownership of gold that is probably sold to 100 different people that can't ever get the actual gold for delivery unless they are the super rich or somehow influential. Because it is real gold with real ownership rights it will be a price discovery mechanism which will be real & not the manipulated crap that the comex and LBMA fob off on the population. It is hard to manipulate real metal with real owners. Silver soon!!! GREAT!!!
How is this in any way different than any other gold exchange market.. there's one in america, canada, london england.. not clear on how this is in any way unique.
If the gold from the LBMA is cheaper than the Pan Asian Exchange, it will create an arbitrage.
This is smart, in that investors will buy contracts at the LBMA and sell contracts at the Pan Asian Exchange - this will deplete the LBMA gold and transfer it to the Pan Asian Exchange until LBMA goes bust and runs completely out of metal.
@fuzzywzhe Once PAGE is fully established and known for its high quality fully backed gold contracts, almost no prudent investor will risk their capital on risky fractionally reserved LBMA gold contracts. Unless they are playing the greater fool theory & hoping to sell LBMA gold contracts to someone who won't take the time to understand the difference between PAGE and LBMA gold contracts.
@tlewisj78 "Once PAGE is fully established and known for its high quality fully backed gold contracts, almost no prudent investor will risk their capital on risky fractionally reserved LBMA gold contracts. "
Why not? The worst that will happen is the LBMA will force a cash settlement, and sellers on the Pan Asian Exchange will simply have to buy back a contract. Sure, they will lose money, but only once the LBMA is forced to a cash settlement.
@fuzzywzhe If one were willing to accept cash for settlement on a "gold contract" as opposed to receiving actual gold then that would be their prerogative. But in my opinion, settling for a currency that has been losing its purchasing power since Aug 1971 does not make good investment sense.
@tlewisj78 I'm ONLY pointing out that if an arbitrage exists, the LBMA contracts will be at a discount.
This basically means, easy money. VERY easy money. Just sell a contract at the Pan Asian Exchange while buying a contract at the LBMA, and you are GUARANTEED TO MAKE MONEY.
China is essentially providing an incentive for traders all of the planet to wipe the LBMA clean of gold if the LBMA trades at a discount, and it very well might. I'm just pointing that out.
@fuzzywzhe Only thing is how would you hedge the USD/RMB exchange rate? The LBMA contract is denominated in dollars, whereas the PAGE contract will be denominated in RMB.
@93msinclair "Only thing is how would you hedge the USD/RMB exchange rate? "
Gold wouldn't be denominated in Renminbi,or any currency. All that has to happen is that the gold at the Pan Asian Exchange sells at a premium at the time of the contract to the LBMA which it always should because the Pan Asian Exchange is one for one backed.
Of course it doesn't. The whole point of buying gold is to divorce yourself from the digital financial system. PAGE gives investors the option of trading and prospecting in the future price of gold in fully allocated accounts.
@FreeGoldObserver Yes, I understand that cash settlement can't drive the physical spot price on the Pan Asian Exchange.
My point it, that you can always take physical delivery from the LBMA, and if there is an arbitrage between the LBMA and Pan Asian Exchange, you can take physical delivery, deplete inventory, and deliver it to the Pan Asian Exchange. Eventually inventory at the LBMA goes to 0, you can't take physical delivery, and the manipulation ends, with the metal in Asia.
Acquiring precious metal via PAGE, Comex, LBMA, etc, etc should be secondary to owning the physical metal. End the end, if you don't hold it, if you're not your own Central Bank, then its only a "promise" to deliver in my opinion. That said, acquire as much physical as you can and store it properly, secretly and safely. When it comes to Precious Metal..."Be the Bank".
tlewisj78 5 months ago
China will be selling real physical gold & silver, not dubious ownership of gold that is probably sold to 100 different people that can't ever get the actual gold for delivery unless they are the super rich or somehow influential. Because it is real gold with real ownership rights it will be a price discovery mechanism which will be real & not the manipulated crap that the comex and LBMA fob off on the population. It is hard to manipulate real metal with real owners. Silver soon!!! GREAT!!!
dishesdealer417 6 months ago
How is this in any way different than any other gold exchange market.. there's one in america, canada, london england.. not clear on how this is in any way unique.
smokydave 6 months ago
@smokydave
Those are all futures markets that are settled with unallocated gold.
FreeGoldObserver 5 months ago
If the gold from the LBMA is cheaper than the Pan Asian Exchange, it will create an arbitrage.
This is smart, in that investors will buy contracts at the LBMA and sell contracts at the Pan Asian Exchange - this will deplete the LBMA gold and transfer it to the Pan Asian Exchange until LBMA goes bust and runs completely out of metal.
fuzzywzhe 6 months ago
@fuzzywzhe Once PAGE is fully established and known for its high quality fully backed gold contracts, almost no prudent investor will risk their capital on risky fractionally reserved LBMA gold contracts. Unless they are playing the greater fool theory & hoping to sell LBMA gold contracts to someone who won't take the time to understand the difference between PAGE and LBMA gold contracts.
tlewisj78 6 months ago
@tlewisj78 "Once PAGE is fully established and known for its high quality fully backed gold contracts, almost no prudent investor will risk their capital on risky fractionally reserved LBMA gold contracts. "
Why not? The worst that will happen is the LBMA will force a cash settlement, and sellers on the Pan Asian Exchange will simply have to buy back a contract. Sure, they will lose money, but only once the LBMA is forced to a cash settlement.
fuzzywzhe 6 months ago
@fuzzywzhe If one were willing to accept cash for settlement on a "gold contract" as opposed to receiving actual gold then that would be their prerogative. But in my opinion, settling for a currency that has been losing its purchasing power since Aug 1971 does not make good investment sense.
tlewisj78 6 months ago
@tlewisj78 I'm ONLY pointing out that if an arbitrage exists, the LBMA contracts will be at a discount.
This basically means, easy money. VERY easy money. Just sell a contract at the Pan Asian Exchange while buying a contract at the LBMA, and you are GUARANTEED TO MAKE MONEY.
China is essentially providing an incentive for traders all of the planet to wipe the LBMA clean of gold if the LBMA trades at a discount, and it very well might. I'm just pointing that out.
fuzzywzhe 6 months ago 3
@fuzzywzhe Only thing is how would you hedge the USD/RMB exchange rate? The LBMA contract is denominated in dollars, whereas the PAGE contract will be denominated in RMB.
93msinclair 6 months ago
@93msinclair "Only thing is how would you hedge the USD/RMB exchange rate? "
Gold wouldn't be denominated in Renminbi,or any currency. All that has to happen is that the gold at the Pan Asian Exchange sells at a premium at the time of the contract to the LBMA which it always should because the Pan Asian Exchange is one for one backed.
fuzzywzhe 6 months ago
@tlewisj78
Of course it doesn't. The whole point of buying gold is to divorce yourself from the digital financial system. PAGE gives investors the option of trading and prospecting in the future price of gold in fully allocated accounts.
FreeGoldObserver 5 months ago
@fuzzywzhe
Thats the difference with PAGE. Cash settlements will not be what drives the physical spot price.
FreeGoldObserver 5 months ago
@FreeGoldObserver Yes, I understand that cash settlement can't drive the physical spot price on the Pan Asian Exchange.
My point it, that you can always take physical delivery from the LBMA, and if there is an arbitrage between the LBMA and Pan Asian Exchange, you can take physical delivery, deplete inventory, and deliver it to the Pan Asian Exchange. Eventually inventory at the LBMA goes to 0, you can't take physical delivery, and the manipulation ends, with the metal in Asia.
Low risk.
fuzzywzhe 5 months ago
@fuzzywzhe
Yes exactly. Good money drives out bad money. Reverse Gresham's law
FreeGoldObserver 5 months ago
China makes me feel like a babarian.
jgbloyd 6 months ago
will this torrent of good interviews ever end, ahhhhhhh
georgemargaris 6 months ago 4
@georgemargaris :) tell em about it > i only wish i was at the GATA conference in LONDON
metalmadnessTV 6 months ago