Thursday, March 3, 2016

Got Karatbars? Central banks and hedge fund gobbling up gold bullion at rates not seen since the early 1970's

In two different eras in recent memory, governments and central banks worked in tandem to dissuade people from accumulating gold by both destroying the price, and by using negative propaganda to make precious metals appear to be a worthless asset.  Those two time periods were the early 1980's and the past five years starting in 2011.

But when it comes to gold, it is only false perceptions that have allowed its value to deteriorate in relation to currencies like the dollar and euro.  And while a large portion of the American and European populations divested themselves of precious metals following the advent of Quantitative Easing and zero interest rates, behind the scenes the gold that was being sold off here was quickly being bought up in the East, and by peoples outside the West who saw the depressed prices as a golden opportunity to hedge against the monetary destruction being implemented in the U.S. and in Europe.

One of the more interesting cases in the gold selloff was with a hedge fund known as the Permanent Fund, which leading up to 2011 had accumulated over 1.4 million physical ounces of U.S. gold eagles in its possession.  And like many who began to dump their gold following QE, ZIRP, and the drop in price from the all-time high of $1940, Permanent Fund became a key contributor in facilitating the fall in price by dumping their inventory onto the market.

But as with all cycles in the business model and in history, eventually the circle comes back around and a new study into the two entities that were prime instigators in the selling off of gold since the beginning of the century, both central banks and Permanent Fund, are now not only accumulating it once again, but are doing so at rates not seen since the period between the end of the gold standard in 1971, and the implementation of 20% interest rates in 1980.

While "greed was good" in the '80s, it appears "gold is good" in the new normal. As much as the barbarous relic is despised by all the mainstream money-peddlers in public (aside from those who have left the familia like Alan Greenspan), it seems to be loved in private. Central banks have been net buyers of gold for eight straight years, according to IMF estimates, the longest streak since the first troops were deployed in The Vietnam War
As Bloomberg notes, Russia, China and Kazakhstan among the biggest hoarders, International Monetary Fund data show. Countries purchased almost 590 metric tons last year, accounting for 14 percent of annual global bullion demand, the World Gold Council estimates. Central bankers are using the metal to diversify from currencies, particularly the dollar, said Stefan Wieler, a Toronto-based vice president at GoldMoney Inc., a financial bullion services firm. - Zerohedge

Chart: Bloomberg

There is only one reason why a central bank would accumulate physical gold when they have the legal capacity to print paper money at will, and that is to prepare for a return to a gold standard.  And when this will occur, or how long it will be before it takes place may be intrinsically tied to how quickly the next financial crisis comes to the global monetary system.  And ever since the beginning of 2016, analysts by the dozens have pinpointed this year and possibly into the next as being inevitable for a full scale collapse to take place which will force the current paper money system to either die off, or have to change.

As the saying goes, millions of people can't be wrong, and it makes no difference if those people are in the U.S., Europe, India, or the Far East.  And for those people who are paying attention to what is really occurring in the global monetary system, their choice to buy physical gold at a time when central banks are working desperately to keep people in paper money and paper assets means that they will not only be protecting their wealth from negative interest rates, bail-ins, capital controls, and inflation, but it also means they will have the one true asset that will allow them to come out way ahead when gold is once again recognized as the basis of real money, and the foundation for the system that emerges out of our debt induced wreckage.

So how can you get into physical gold when convenience and affordability are major factors in choosing whether to protect your wealth or continue trusting in governments and the paper market system?

You can so this with a company called Karatbars

Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.

The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.


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