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Show me my ‘paper’ gold! What is ‘it’ (in reality)? Do you know?

September 27, 2014

The term ‘paper’ gold is a confusing concept…as when I ask for my physical gold (supposedly being represented via the words ‘paper’ gold) in realtime, there is no ‘thing’ (coin/bar) which I receive. I receive NOTHING (which ‘exists’ within our space/time universe)! So what is ‘paper’ gold, in reality? Think about the nature of physical gold in realtime. Physical gold is a coin, bar, grain, or some accumulation of real metal that I can hold in my hand. Gold is an element from nature which we dig out of the earth and then mint into coins, etc. So why do traders buy into the notion of ‘paper’ gold. The term ONLY has validity if you provide me with a paper contract which is backed up (in realtime) with real physical gold. But what are traders now trading when they trade ‘paper’ gold and there is ‘nothing’ backing up the paper? Can you discern that a ‘paper’ unit of gold (with nothing underlying the paper ounces written on the paper) is (in reality) IMAGINARY gold. Today, traders are buying/selling/betting on units of IMAGINARY gold to effect ‘prices’ (called price discovery). This so-called ‘price discovery’ is a complete JOKE! A complete FARCE! A complete FANTASY!

Buy yourself a real physical coin so that you discern the difference between real gold and fantasy gold!

What a huge farce and fantasy is occurring today in our markets! Traders are purchasing contracts (now digital contracts) via their computer trading platform in the Globex electronic markets (and other electronic markets globally) under the ‘assumption’ that they are actually trading real GOLD. In reality, however, most of this so-called ‘paper’ trading is totally trading within the ‘imagination’ of the traders (their MIND). All the ounces of ‘paper’ gold that is traded does produce ‘prices’ for the real physical gold BUT these ‘prices’ (called price discovery) is a total SHAM AND A FARCE. All that is happening is the trading of millions of ounces of IMAGINARY gold that does not ‘exist’ within REALTIME. If I desire to have my shares of ‘paper’ gold delivered, I discover that there is NO gold underlying any of these trades. Yet our traders keep clicking their buy/sell computer buttons under the ‘assumption’ that they are trading REAL GOLD. What a fantasy of the imagination and what a sham on investors who hold real physical gold and silver. Isn’t ‘price discovery’ supposed to be based on a real exchange of physical gold/silver?

Legal tender should be some ‘thing’ which EXISTS in realtime! Paper gold is a ‘semantic’ deception! Today, practically all trading is electronic (where digital contracts are exchanged within the computer screen)!

What is happening today is mostly a ‘semantics’ problem as traders assume that ‘paper’ gold represents underlying physical gold which could be delivered in REALTIME (now time). Another term which is totally deceptive within the gold/silver markets is the concept of ‘allocated’ and ‘unallocated’ gold. Today, many buyers of gold purchase shares under the ‘assumption’ that their gold is stored physically in some vault or storage warehouse. In reality, however, (due to leverage) much gold and silver are traded as ‘unallocated’ gold/silver ounces. Sellers of this ‘unallocated’ gold (bullion banks, etc.) will sell contracts which much exceed the actual resident gold which they have to sell. Buyers (unaware of what the seller institution actually owns) will often be purchasing (because of leverage) some 10 to 20 times of the actual shares of this resident gold held by the selling institution. If I desire delivery of my shares of ‘unallocated’ gold, I most likely will get NO physical gold (as the seller does not own sufficient quantities). This entire game of ‘paper’ gold and ‘unallocated’ gold is a compete SHAM, FANTASY, AND GAME OF unadulterated IMAGINATION (within the ‘minds’ of the traders). Can you discern this ongoing sham and fantasy? Watch out for words like (paper, unallocated, and leverage)!

This Authority has no desire to clean-up the ‘semantic’ fantasy called the PAPER gold/silver market! Why?

Traders today trade imaginary contracts, imaginary currencies, imaginary gold/silver and THINK they are getting rich! What a sham on the investment community and the investing public!

What needs to happen in the gold/silver trading markets is a comprehension of REALTIME reality. When I buy shares, the shares must represent shares (ounces) of real physical gold/silver (in the now). Also, since almost all trading is electronic today, we should NOT call trading by ‘names’ like ‘paper’ gold. In reality, there is no ‘paper’ being exchanged today. What happens in realtime is that digits (within our computer screen) get transferred from buyer to seller, etc. There is NO ‘paper’ being transferred or exchanged during these realtime trades (all is digital and electronic). The old system of OPEN OUT-CRY trading is now totally obsolete and all trading has become electronic and WITHIN THE COMPUTER SCREEN. Isn’t is time to get our ‘semantics’ (words) in line with realtime reality? Isn’t it time to ‘think’ and ‘act’ in terms of REALTIME transactions? What do you think? My sense is that most pundits and traders are LIVING IN A FANTASY WORLD (all within their own metaphysical MIND’S) and unaware of realtime REALITY! What a shame on the Authorities which run this CASINO of fantasy! Enjoy! I am:

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