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What Happens When They Won’t Take Dollars Anymore? DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

What Happens When They Won’t Take Dollars Anymore?

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What Happens When They Won’t Take Dollars Anymore? Empty What Happens When They Won’t Take Dollars Anymore?

Post by Ponee on Mon May 13, 2013 6:52 pm

Sorry, I do not have a link.... shared by a friend on FB....

What Happens When They Won’t Take Dollars Anymore?
At the heart of what we call “Goldscam” is this simple fact...
4
According to U.S. Geological Survey records, for every 400 ounces of gold that are traded via “futures” contracts on the American commodities exchange (known as Comex), only one ounce actually
exists in the exchange’s vaults. That’s around $1,600 worth of assets covering $640,000 worth of trades.
On a typical trading day, contracts representing as many as 18 million ounces of gold can trade
hands. Most people are simply betting on which way the price will go, without ever intending to take
delivery. They settle their contracts with dollars.



Now, it’s not unusual for commodity markets to operate this way. Futures contracts of every kind
trade in multiples. And today, the options market runs smoothly because many people are still willing to
trade their gold for dollars.


But I believe that at some point they won’t...
I believe we’re approaching a day when people will no longer exchange their dollars for gold.
As you know, our country is in a precarious financial position. I’m sure you’ve heard the countless
stories about the enormity of our national debt. I’ve written volumes about it myself.
The numbers are too large to truly comprehend. We’ve borrowed so many trillions of dollars, it’s
impossible for us to pay back any of this money by honest means. Our only option is to print an endless
stream of dollars to meet those obligations...


And that’s what our government is doing. The Federal Reserve calls it “quantitative easing.” It’s simply the process of creating more dollars.


However, the more we print, the less each dollar is worth. Eventually, our creditors will no longer
accept the dollar. When the global financial industry loses faith completely in the U.S. dollar, it will look
for another sound currency. It will want gold...


And once we reach that tipping point... I believe those who hold futures contract that give them the
right to receive gold will demand delivery. They won’t take dollars in exchange.
But remember... it’s impossible that all the gold that people supposedly have the “right” to actually exists. [I can’t say exactly what will happen to gold ETFs and similar investments during that kind of
run on the gold futures market...] But I believe any investment vehicle based on these futures will be in
trouble.


I realize I’m describing an extreme situation. And so long as people are content to hold paper claims
on gold, no problem... But what happens when people realize their paper claims are worthless and want
to take possession of the actual bullion?


Many people, myself included, have already lost complete faith in the U.S. dollar. I’ll never sell a single ounce of my gold for U.S. dollars – not at any price. And I’m putting as much of my money as possible into other hard assets, like real estate.


I firmly believe this will soon become the mainstream opinion. And I think many of the folks who
have bought gold investments will discover what they really own is paper as worthless as the dollar

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What Happens When They Won’t Take Dollars Anymore? Empty Re: What Happens When They Won’t Take Dollars Anymore?

Post by Kevind53 on Mon May 13, 2013 9:54 pm

The writer exhibits a basic misunderstanding of the futures market. A futures contract is an agreement to buy or sell a particular commodity at a pre-determined price in the future. They may call for physical delivery of the asset, or stipulate that the contract is settled in cash. The buyer is typically betting that commodity X will actually be worth more than the stipulated price, while the seller is of course hoping it will be worth less. Both parties are governed by the terms of the contract, in other words, if it is a gold futures contract that is to be settled in dollars, they can't say, "I don't want dollars, I want the gold". You want gold, buy gold.

It is important to know that when buying commodities, you are often buying crops or minerals that are somewhat theoretical. The gold or oil might still be in the ground, in essence you are buying the promise that it is there.

Is the wholesale printing of USD a concern? Absolutely. Will having a safe full of gold bullion be enough to keep you safe in the event of a wholesale collapse of our economy? I really have to question that. You can't eat gold, so are you going to shave filings off the bar to buy dinner? Gold is heavy, and bullion and bars are not available in small values. To me, silver would be a much better bet for that purpose, you still can't eat it, but you are working with smaller values and weights making it much more practical IMO.

Actually, as I think about it, I saw this recently, and I want to say it was put out by a gold expert who just happened to sell physical gold ...

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