http://www.paulcraigroberts.org/2013/05/29/corbett-interviews-roberts-on-the-economic-dissolution-of-the-west/

According to the website the PHYS trust has about 1.6m ounces of gold. According to the World Gold Council ( via Wikipedia) the total amount of gold out there is around 171K tonnes.

So PHYS accounts for a tiny percentage ( 0.029% by my calculation) of the physical gold market and since it’s exchange traded its price is much more easily led by the price of paper gold.

Provided the guarantees that the trust makes are genuine, when the paper gold market does finally unravel you’ll likely see the price of PHYS and GLD diverge dramatically.

And why are they all buying GOLD and more Gold and with such alacrity, stepping over each other in their haste. Insatiable and
most strange, given what their manipulated media calls it. Maybe not so strange. You are here to believe in their force and make belief . You are here to comply. . .
Why was the use of Gold prohibited in the articles of agreement of the IMF ? Why no longer legal tender?
Could it be because only when transferred through their IMF into their hands, (all of it and APPROPRIATION takes the rest when the time is right, ) can they impose it as legal tender once again; only you won’t have any. Countries will have only worthless paper and Debt. Through their banksThey will own the largest chunk. And thus they have a plague to offer. Perspectives startle. So do their schedules. A new Empire is afoot, slithering on the ashes of the previous one.
Are you seeing the larger picture? Not large enough? It is their Gold. Their universal despotism. Haven’t sold yours yet? More looting the ETF’s of their gold basis and
price will keep on dropping. They want your crust. They are coming for your savings too. Your Cyprus. Any law to protect you?
You thought their mesiah would be mild….entertaining? He delights in defilement and humiliation. Is a consummate abuser. His servants draw his cards. But do not despair love is in the air.

I was surprised that the number “100,000” wasn’t mentioned.

IIRC, the “right” to demand physical Gold from your ETF GLD shareholdings, is when you have 100,000 or more shares.
.. somewhere in the small print IIRC.

WIKI : …. “If the share price differs from the gold market price, the fund’s manager exchanges blocks of 100,000 shares for 10,000 ounces of gold. The possibility of such exchanges keeps the ETF price roughly in line with the gold price, although the prices can diverge during each day.”….
http://en.wikipedia.org/wiki/SPDR_Gold_Shares

This excludes almost all the small players and of course makes easy meat for the big players like JPM etc.

i.e. (Sell) Short the paper and collect ( buy to cover) the physical.

JMHO FWIW

Mike,

Accept my apologies for being snarky.

The truth is that the creator of the currency does enjoy an arithmetic and asymmetric value advantage over anyone that comes further down the chain.

New money is created by the Fed ostensibly on demand from the Treasury. We now know the Fed acts independently however.

The money is then handed to the Treasury that in turn hands it to the Primary Dealers whom happen to be members of the same Fed that just created the new money in the first place.

In turn the Primary Dealers hand multiples of the original sum to the Commercial Banks who then loan it out to corporations and other banks who then loan it out to you and me.

Each new unit of currency is thus devalued at every step of this dynamic. But the real devaluation happens the moment Fractional Reserve Banking kicks in and at every single stage till the new money reaches our pockets.

If more people understood the monetary (and debt) creation dynamic, we would not be in the situation we are in.

The elite few you speak of, is none of us on this forum. We condemn this particular variety of ownership of money. Conversely, in a healthy economy where money becomes once again a store of value, ownership of money is interchangeable with ownership of productive goods and can be employed to expand the wider economy.

Of course, it could be argued that only the state should own productive capital. If this indeed was your position, then this should be your battle.

Thats OK Golem, glad to help you.

I am telling you the truth when I tell you that I saw what was coming in 1964, I NEVER for one moment thought it would have come this early, I thought at the earliest it would happen after 2030, I tell you the truth, I wrote an essay in school in1964, we were told to entitled it…”What will the world be like in 2050″. I wrote that with the running out of global resources the USA would invade a middle eastern country, from there they would strike out to gain total control of all the oil in the middle east, I remember writing that the “Jewel in the Crown would be Saudi Arabia”.

I didn’t know that as I was writing my essay plans had/were already been/being laid to start all this off by the end of the 1970s!!!. I wrote about the acceleration in world population and the effects that would have on global resources, and many other things. Everything I wrote has happened/happening, except one thing, that I fear is pending, you see Golem, there is no longer enough to go around and keep a capitalist system in place. What did anyone think would happen, did they think it would all be left to actual run out and then deal with that problem ?, seems many do/did think that!. I tell you all there is far, far worse to come.

It was NOT an intelligent essay, it was totally based on having an understanding in the history of mankind and basic common sense, what do you or anyone else think was going to happen.

Just my take on it all, strange though that all this is now happening, I put it to everyone that when they look back to 1981 the writing was on the wall, sadly only a few saw it.

By the way, when I got my eassy back two weeks later it was marked 3/10.

Thanks Just me,

It would seem to back up what I was arguing 100%

http://www.paulcraigroberts.org/2013/05/20/no-bear-market-in-gold-paul-craig-roberts/

THE TIMES OF INDIA

{http://timesofindia.indiatimes.com/business/india-business/Forex-reserves-down-616-4-million-to-293-69-billion/articleshow/20108894.cms}

If I have understood correctly, this looks much like another form of leverage.

Cheers