SGM Metals: Wall Street Paper Gold Scam vs Real Gold Unravelled!

PALM BEACH GARDENS, Fla. - July 15, 2013 - PRLog -- Zerohedge.com reports: [ Paper Gold  vs. Metal Gold

There are two types of ‘gold’ for sale. One is metal, the other is paper. It is paper gold that is being dumped not the metal.

   The metal is being bought at a fair old rate but because there is so much paper gold around & the major sellers & market makers in paper gold prefer metal & paper to be confused, even thought to be identical (their trade depends on this confusion), no one seems to be pointing out the very different dynamic happening in paper & metal gold.
   Paper gold is being sold & those selling it are the likes of Soros Fund Management LLC & BlackRock Inc….Does that mean Soros & BlackRock no longer want gold? No, it does not. It says they don’t want paper gold.

For those that don’t know, ETF’s are paper claims on something rather than the thing itself. If you buy an ETF based on bank shares, for example, you do not own any bank shares. You own a piece of paper which says it will match the price of the gold or bank shares. It is these paper claims that big players seem to be selling as fast as they can without it looking like they are going for the exit. In fact, I think that is exactly what they are doing.

Metal Gold vs. Paper Gold; The Advantage

The fact is there is a vast pyramid of paper claims on gold which dwarfs the amount of actual gold available. Since the trade in gold ETFs took off we have been living in a fiat gold world. There are as many claims on gold as there are bits of paper on which to print them – & this fact confuses a great deal of the punditry about gold as a safe haven.

Soros & BlackRock are selling paper gold because they know paper claims are not safe. Bits of paper with the word gold printed on them are not gold & their claims in the metal are not safe. They have sold paper & bought metal. I think they have sold paper gold because the reasons for holding safe haven assets have not abated but are getting stronger…

Sell Paper Gold; Buy Metal Gold * As people sell gold ETF paper, it is causing the price of not only paper gold but metal gold to decline as well & I think this is creating a buyers paradise!

   With one hand you sell paper claims on gold, let people confuse paper & metal & talk about how the price & desire for ‘gold’ is declining. The end result is that the amount of paper gold declines. Along side that decline some people sell real gold. With the other hand buy metal gold.

You end up, if the game holds together, being able to buy real metal as the price declines, knowing that the price of paper & metal will diverge, at some point drastically]

Zerohedge also reports: [ If you want to know what it’s going to look like in front of precious metals dealers when confidence in our govt’s ability to manage this crisis is finally lost for good, then look no further than the streets of China. These pictures depict some 10,000 Chinese citizens lining up to buy physical gold, providing all the evidence you need for the argument that gold is, in fact, money.

These are absolutely stunning.

The pictures are reminiscent of Americans lining up around the block during the gold buying sprees of the 1980′s in an attempt to get their hands on physical gold & silver.

Just as is the case with food, guns, ammo, Xboxes, & iPhones, when widespread demand strikes it’s nearly impossible to get your hands on the goods you need at a fair price. Get yours now, before the panicked masses realize what has happened. ]

Wall Street shylocks realized that they had over played their hand with the feds endless money printing & had accelerated the “boom bust cycle’ to as frequent as every 5-7 years compared to the once a generation wealth destruction scam they had been running up that point. This resulted in allocating 15/20% of portfolios to precious metals as a hedge against this threat & banks created precious metals derivatives in order to give the illusion that investors “could have exposure to metals w/out having to store the bulky metal at home & risk a burglary”, but the truth is its simply a means to keep private investors from taking delivery of physical metals keeping the investment capital in their commissionable control on Wall Street.

Imagine how much money has been lured into SLV & GLD over the past decade alone, then imagine how much money has been suckered into the futures contracts via the COMEX market. Now add them together & imagine if that volume of capital had been used to buy physical gold & silver bars, coins & bullion & permanently removed them from the market place prior to the housing crash. The infamous April 2011 $50 silver would have been markedly higher had there been a considerably lower volume of available bullion when the rush to silver began.

As the media talks about the likes of Soros “dumping gold/heavily reducing his exposure to GLD & SLV as proof of the US recovery” you need to know the truth behind what’s really going on here. Soros & the other Wall Street registered entities are legally permitted to redeem their shares of the ETF derivatives for the actual hard asset collateral that backs the shares. They are desperately rushing towards the exits to do just that in order to physically stockpile what will soon be the most sought after asset on the planet. They realize that what is at stake is the possibility of the first time in human history that the world reserve currency falls from grace which will force the world to fall back on precious metals as a store of wealth during the tumultuous period of global resettling we will experience as we establish an alternative medium of exchange.

Take the talking heads on TV with a grain of salt knowing that they are paid by the Wall Street firms that advertise on their channels. Accept that the wealthiest people in America & their banker buddies, are getting ready for this period of transition by establishing a wealth preservation strategy with gold & silver bullion. Maybe you should do the same in order to shoulder the global currency war that has resulted in TRILLIONS of new paper dollars all around the world & actually has Japan out printing the FED QE by a ratio of 3/1! During the Great Depression we saw the privately owned gold & silver taken by force thanks to a presidential decree to protect the bankers, sadly now we are seeing the same happen again ahead of the next depression but investors are being tricked into thinking it was their idea or were “forced to relinquish their metal because of the market”. Get your precious metals insurance policy before this ugly truth comes to the surface & the frenzy begins, I can assure you there will be a frenzy this time around as the western govts will not be able to step up & print a couple trillion more to bailout the banks because they have given the banks permission to “BAIL THEMSLEVES IN” by confiscating your deposits. Get ready!