Thoughts on the concept of FreeGold, and the differences between the paper and physical markets

Jim H
By Jim H on Sat, Jun 1, 2013 - 3:11pm

I don't usually frequent FOFOA's site because I often find his posts too obtuse.  A recent video post of his was quite refreshing though, as it consisted of the attempts by many of his friends to come up with their own definitions of "freeGold".  For me, reading through all of the quotes helped me to connect some dots on the concept of freeGold, and to further understand why in fact we don't have freeGold today.  In many ways, the non-freeGold that we have today (you might think of non-FreeGold as simply Gold controlled by the paper, derivative markets) is a vestige of the Gold standard, since manipulation of the price of Gold (it is fixed in the classic Gold std) is in fact part of the game.  FreeGold says that Gold is no longer fixed against anything, but simply becomes the mirror against which everything else, including of course fiat currencies, is valued.  I highly recommend watching the video below if you want to expand your thinking on Gold. 

As well, it occurs to me that there is no simpler (Einstenian) illustration of the differences between Gold as practiced in today's paper, derivative markets, vs. Gold as practiced in today's physical markets than the compare/contrast we can set up in viewing two recent stories where Gold was in the news;

1)  The April 12 Gold price smash where 300 tonnes of Gold was dumped in a period 30 minutes.

2)  Germany's plan to repatriate 300 of the 1500 tonnes of Gold stored at the FED in the US, but over a period of seven years.  

So let's see... in the paper markets, where price is set but deliveries are relatively few... 300 tonnes can be "sold" and change hands in the period of 1/2 hour.  In the real, physical world though, 300 tonnes is so much Gold that it needs to slowly metered (or meted) out over a period of seven years, or, to match the time units,     122,640 1/2 hours.  The difference is six orders of magnitude.  How rare is Gold really?  Which of these stories reflects the true rarity and value of Gold that will be in play once the paper markets fail?  Interesting points to ponder this weekend.

Some references;

http://www.peakprosperity.com/blog/81535/gold-slam-massive-wealth-transf...

http://www.zerohedge.com/news/2013-01-16/bundesbank-official-statement-g...

From FOFOA;

http://www.youtube.com/watch?feature=player_embedded&v=74ynFnitLeo

2 Comments

Jim H's picture
Jim H
Status: Diamond Member (Online)
Joined: Jun 8 2009
Posts: 1351
On the concept of FreeGold

Promoting comment to main page.

KennethPollinger's picture
KennethPollinger
Status: Silver Member (Offline)
Joined: Sep 22 2010
Posts: 124
Gold: Beginnings, history, real value

We sure put a LOT of thinking/speculating on Gold and Silver these days.

So, as a "breather" I'd like to offer something different today--Sunday reading.

Have you ever wondered about the origins of Gold?

Have you read about the history (and pre-history) of Gold?  What's myth and what's history?

How did Gold become so precious, as opposed to other resources or things?

Where were the FIRST Gold mines? and how long ago, according to  what EVIDENCE?

Who were the First Gold miners?

Why did the Mesoamerican natives say, "all Gold belonged to the gods?"

Is it true that "at the center of the gold gluttony was the ever-present Vatican, which supplied the exploits of the conquistadores.  The split was SAID (my emphasis) to be 90% for the Vatican and 10% for the Spanish king."

Is it true "that the Vatican holds most of the gold in the world?" How could we possibly know!!

Why are we so obsessed with Gold? What caused this SUDDEN prehistoric obsession?

Well, try Chapter 9, Gold: The Endless Obsession (pp112-138 in

SlaveSpecies of the Gods: The Secret History of the Anunnaki and Their Mission on Earth,

by Michael Tellinger.  Chp 16, The Story of Mankind, is an overall summary of the 14 book research

project of Zecharia Sitchin, with his The 12th Planet, his foundational work about the over than 500,000

clay tablets written in the cunneform language (the first ever?) during the SUMERIAN civilization,

present-day IRAQ.

Sunday reading. A relaxing alternative perspective.  Sheds light on the value of Gold? 

Enjoy,  Ken Pollinger, Ph.D. (sociology, ex-Jesuit, etc)

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