QUESTION: Mr. Armstrong; I have been trapped by these gold promoters and they indeed are like used car salesmen, worse since they are not regulated. I listened how they were wrong because the bankers were suppressing gold. If the bankers were eliminated, gold would soar to anything like $25,000 to $100,000. Well, the bankers have all been skewered. Here in Canada, Bank of Nova Scotia is one of the five banks accused in manipulating metals. One would think if the bankers were really preventing the metals from rallying, then why are they collapsing? I suspect you are the only person telling the truth here. Can you explain the real story?

Thank you

PH

ANSWER: Bankers have always fun-run their clients. It is way too tempting to do so when you make the market and you can see the client positions. The big traders are starting to wise up. They are a bit slow. You have to excuse them. Perhaps they were in the special-ed classes growing up. They trusted the big names and are starting to experience being screwed big time. The total gold bullion trade has averaged 4,000 tons annually for the past 10 years. One metric ton equals 32,150.7466 troy ounces. So we are talking about 128,600,000 ounces per year. The US Mint sells about 425,000 one ounce coins. This tend to put the bullion coins in perspective.

About two-thirds is new mine production and one-third is recycled gold according to the World Gold Council. Jewelry accounts for about 50% of gold sales. About 9% of gold production is used in technology. Central Bank demand has fluctuated from 2% to 14% annually of total production. Including ETFs, investment demand accounts for about 33% of world production. This means you have a fresh supply every year of 128,600,000 ounces coming to the market. This is not all “investment”. If the retail trade in the economy slows, jewelry sales decline. That is the bulk of gold but the promoters want to make you think gold is suppressed solely by the bankers for nefarious reasons. There are other factors taking place. This is not all “investment” consumption.
This type of “manipulation” pushing the fix one way or the other to elect stops has been like growing money on trees. This BY NO MEANS suppresses gold or any currency, no less any other commodity that they have played games with. All the big manipulations have ALWAYS been to the UPSIDE, not to the downside. It is absurd to pretend that gold is suppressed perpetually so they can make money in some strange way. Both of the Buffet entries into silver were to push it up. Even GATA knew that was the game in silver back then. Did they tell everyone it was PhiBro & Buffet? Why not?

The bankers get it going from $3 to $7 and and then the promoters talk it up and the retail come in to buy the high every time and they turn around and sell it to them. That is how they make real money. Suppressing gold to keep in down with no volume means no profit. Even the manipulation of Platinum was the the UPSIDE.

Now that the bankers are being forced out of the game, gold was actually being supported by them. They were keeping the hope of a rally alive. Without the bankers, the support will be less and we can see gold fall out of bed. It has fallen to $1201 by 5PM on May 30th. The next support does not come into play until 1170.

Every market has its time and place. The promoters hate my guts because they always want to make a profit getting people to buy. They could care less about the advice they are giving. The market is always right. People are wrong. We can define the levels and the time. Just let the market do its thing.

COMMENT: it is just chaos by politicians destroying the future. cashless society …how did u see this just amazing.I never thought it is coming to india as indians believed in hard MONEY sir.
thank you for your knowledge i think in future u should create an AI to help the people show the path. Coz there is no other way to see this except CYCLES.

We end up making same mistake over and over again.

REPLY: All governments talk. Indian Prime Minister Narendra Modi is now saying that a cashless society will end black money. He is on par with the rest of the political world. The prospect of a cashless society was discussed at the last G20 meeting. They want to eliminate cash worldwide and shut down tax havens. When you have actually worked behind the curtain, you come to realize how things really work. Those who make up conspiracy theories are usually biased. For decades, I have been told in meetings with many governments around the world that IF PEOPLE PAID THEIR TAXES THEY WOULD HAVE NO PROBLEM RUNNING SOCIETY. This has been told to be so many times; it is the prayer they say at the foot of their bed before they go to sleep every night.

There really is nothing new from what they are doing now and the fall of the Roman Empire. The human emotions are the same. This is the ONLY reason I am doing what I am doing. If I acted only for myself, I would run to an island and trade from the beach. But I realize that government is like water in a bathtub. There will be no place to hide. History teaches us that. So the question becomes, how fast will this be over? I follow our models. Once the plug is pulled, everything will go down the drain very rapidly. We spend tens of millions of dollars recreating the world monetary system to answer the question: how fast do governments die?

Look at this chart of the fall of the Roman monetary system. The Persians captured Valerian I in 260 AD. His son Gallienus took over and the economy went into a massive wave of deflation after the people came to the realization that they were vulnerable and began to hoard money. As people hoard, as they are doing right now on a personal, corporate, and bank level (see Fed excess reserves), the economy turns down and that results in less tax revenue. Before, they debased the money for that was the means to increase the money supply to meet expenses. The bottom in the debasement unfolded in 268 AD. So while Rome lasted over 1,000 years, its monetary system collapsed in just 8.6 years. That was without internet, radio, or TV for communication.

Those in power really do see us as the great unwashed who are clueless and hopeless without them. They fight against the invisible hand all the time, and they want to rule the world. I have met with many heads of state over the years. They all know about our computer. They always seem to want to know what it is saying. It is not that they follow it, but rather they call to keep an ear to the ground to see who is winning this eternal contest between the rulers and the great unwashed.

An ancient Roman shipwreck has been discovered in the port of ancient Caesarea, located in Israel. The ship was full of bronze statues and coins that were destined to be melted down. The coins are from Constantine (309-337AD) and Licinius (308-324 AD). The typical bronze Follis of this period weighed 6.5 grams on average. By the end of the century, bronze coins were reduced to under 2 grams.
Shipwrecks like this are rare and typically the main source of bronze objects since most would have been melted down. The Vandals sacked Rome, and, to this day, we retain the word “vandalize” because they ripped the copper off the roofs of every temple. Even bronze went through cycles of abundance and periods of scarcity. There is a cycle to everything.

There was an attempt to restore the bronze coinage under Constans in 348 AD, and again under Julian II in 362 AD. As the empire began to spiral down, the coinage became gold and silver. Bronze was hoarded because it had a utilitarian value and could be recast into weapons or tools. The 4th century finds bronze all but vanish and gold becomes the common means of a medium of exchange until the empire collapses altogether in 476AD.
Even after the fall of Rome, we find the coinage is virtually only gold. The Merovingian coinage is gold, and the same is true in the Celtic coinage. This eventually gives way and gold vanished for 600 years. The Dark Age produced some coinage, but they are rarely found more than 20 miles from where they were struck, which confirms the lack of trade. The coinage simply became silver.

We can even see the debasement of gold being replaced with silver in the coinage of the Anglo-Saxons. The silver denarius of Rome was revived and became the silver penny in Britain. Offa (757-796 AD) even issued coins with his wife’s portrait. This is a direct restoration of the Roman monetary system that always issued coins showing the first lady so to speak.

It is this restoration of the Roman denarius which continues to the present time. Indeed, the penny in your pocket is, in fact, the direct link to the Roman coinage that is alive today until we move to electronic money.