“Zero Hour is the moment the price of physical gold starts to run away from the ‘paper price’ you see on CNBC’s ticker. The most likely catalyst is a chain of events that goes like this: Western central banks have leased their gold to commercial banks like JPMorgan Chase at an interest rate of less than 1%. The commercial banks have sold that metal and ploughed the proceeds into assets that earn more than 1%. The chain of custody on gold bars has become so cloudy that a major exchange like the Comex in New York is liable to ‘default’ on a gold contract – settling in cash, instead of metal. A rush for real metal would then be underway.”
http://www.moneymorning.com.au/20130717/with-gold-dont-miss-the-top.html
Related posts:
Jurisdictional Competition: Why the West Became Rich While Asia languished
The Real Founders of Democracy Would Be Pissed
Iraq back at the brink
Three major fault lines in Syria! Will they explode?
Employment: Trending Down
A New Yorker's view of gun control
The Largest Gold Share Rise of All Time
The Magic of Monetary Figures
Could They Really Take Away Your Citizenship?
Hans Hermann-Hoppe: From Aristocracy to Monarchy to Democracy
Bill Bonner: The Day the ATMs Run Out…
Why US government IT fails so hard, so often
The Unbearable Truth About Infrastructure and Urban Sprawl
Decentralizing Science: Local Biohacking
Rand Paul: Is 1984 Now?