WHAT PRICE FOR GOLD BEFORE THE BIG SHORT?

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I had assumed the trigger price for the big short was $US2,500, and it still may be. Gold is just a tradable commodity like onions, beef, and corn. The only difference is that it’s for big players. The gold price has been sent to the heavens by India and China buying the metal. What is making “the shorters” nervous is that they are not sure of the buying power and hunger for gold in both of those countries. Shorting anything is a dangerous game, especially if the shorters are trying to “rob” (no other word was appropriate)—shorting is a criminal act sanctioned by money. It’s the biggest criminal poker game on planet Earth.

Okay, maybe the number for the big short is $3,000, or just shy of that. There is 100% a number at which it will commence. The challenge is in picking that number.

I will say one thing: there is 5,000% (not the 250% they claim) more paper gold than physical gold playing in the market. The ratio of paper to physical gold may be the catalyst for the timing. Additionally, gold in the ground will be fully mined within 60 years. The only thing saving the gold price now is its price. The higher the price, the lower the gold grade that can be mined viably.

Read On:

So, what is the future? The future is about determining what day and what price will trigger the big short.

AI plugged into all the data will determine the press-button day. Considerations include:

1. How much physical gold is readily available for sale.
2. How much paper gold is readily available for sale.
3. How much paper gold exists in the world?
4. What is the leverage multiple for gold trading companies now?
5. At what price will central banks likely sell?
6. How much gold has China and India purchased in the last 6 months?
7. What is the global ratio of physical gold to paper gold?

The current estimation of the ratio of physical gold to paper gold is between 200 to 250 units of paper gold for every ounce of physical gold. Put that into the AI algorithm and watch the smoke and flames.

My guess, having been in this business for 60 years, is that there are around 2,500 ounces of paper gold for every 1 ounce of physical gold. I base this judgment on a clear memory from years ago when the gold price bounced and people tried to swap paper for physical gold—the ratio was 3,000 to 1.

It is also estimated that 50% of all gold bullion may be fake, with the metal being gold-coated tungsten. Tungsten has almost the exact same specific gravity as gold: 19.3 tonnes per cubic meter.

So now you realize the game you are in! Gold is like walking on a hot bed at the moment.

So, what should a gold trader, holder, or buyer do now? Whatever the answer, the word “sweat” keeps coming up! How can you tell if your bullion is real or fake? I’ll let you know in the next chapter.

Good luck, punters.

by Wayne McCrae