Eurozone Failure Could Send Shockwaves Around World Akin to Soviet Union

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Gold Core
Thursday, November 10, 2011

The failure of the Eurozone and the European monetary union looks increasingly likely. This has incredible political, economic and monetary implications for the world and could lead to shockwaves akin to or surpassing that seen after the collapse of the Soviet Union.

Given the scale of the crisis, we continue to amazed at the lack of animal spirits in the gold market – both from media coverage and from public participation.

The majority have no idea of the ramifications of these momentous geopolitical developments. The public knows the developments are negative but most are resigned to their fate and many are like deer in the headlights failing to join the dots and realize the ramifications for their investments, savings and financial wellbeing.

While demand in Asia has fallen from the very strong levels seen recently – demand continues and Chinese New Year should see Chinese demand pick up again in the coming weeks.

Western investment demand continues as seen in increasing allocations to the SPDR trust.

Holdings of the SPDR Gold Trust added 3.025 tonnes from a day earlier to 1,267.153 tonnes by November 9, the highest since late August. The ETF saw an inflow of nearly 24 tonnes so far this month, after an 11.6-tonne gain in October and a fall of more than 30 tonnes in the previous two months, showing reviving interest in gold from investors.

  • A d v e r t i s e m e n t
  • Eurozone Failure Could Send Shockwaves Around World Akin to Soviet Union

As we have said for some time ETF buyers are primarily long term diversifiers in nature and not speculative ‘hot’ money likely to flee the gold market on signs of weakness. Much of the ETF buying is from institutions including pension funds who are diversifying their portfolios with very small allocations to the gold trust.

Bullion dealers in western markets continue to see demand but demand is nowhere near the levels seen at the height of the Lehman crisis or even towards the end of gold’s sharp rise to over $1,900/oz in August.

The public is nowhere near the gold market and the majority of people in the western world could not tell you the price of gold today – let alone how to buy it. The mainstream, non financial specialist, media continues to cover gold sporadically at best.

Price falls tend to be headline news rather than price gains.

Much of the buying we are seeing is from existing precious metal buyers choosing to sell existing precious metal type investments such as ETFs and digital gold in order to own physical bullion.

Given the significant counter party risk seen in the world, as graphically illustrated by MF Global, more buyers are choosing to take delivery or opting for personal allocated accounts with legal title to the bullion which is in their name

This position is understandable given massive counter party risk due to the risk of corporate, banking and national bankruptcies.


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18 Responses to “Eurozone Failure Could Send Shockwaves Around World Akin to Soviet Union”

  1. we pore people wont notice burn baby burn

    SkippyGriff Reply:
    November 10th, 2011 at 12:10 pm

    The time for the return of Scottish Independence is drawing closer! The Old Blue and White Saltire is better and always flies higher than the Union Jack.

    My grandmama was descended from King Robert the Bruce! and I like battle axes too! Split their heads open from the sweetspot at the top down through the shoulders! A good swinging shot like that is in the grip and a good weight shift.

    Quantummonkeybutt Reply:
    November 10th, 2011 at 2:49 pm

    (www.) youtube.com/watch?v=l3w2MTXBebgfeature=related
    (EPIC RAP BATTLES OF HISTORY: DR. SUESS vs. SHAKESPEARE)

    Tom Reply:
    November 10th, 2011 at 3:00 pm

    Would that be the Robert the Bruce who betrayed our young William Wallace? Or a different one? Just sayin’…..

    wildcat Reply:
    November 10th, 2011 at 3:34 pm

    With the overspend on the Scottish Parliament buildings, the Edinburgh tram lines, debate over a 1/4 mile rail extension to Edinburgh Airport, and deadlock over building city bypasses?

  2. What will wake up most of the sleeping ones is ”Necessity”

    There will be no one spared no Rich no poor no middle class will be spared from NECESSITY

    THis is what will eventually end WAR and create peace on this planet: Necessity

    Vic Reply:
    November 10th, 2011 at 10:30 am

    And from the hands of necessity will die big numbers of warrior types.!
    that includes: the military warriors, the riot warriors, the desperate ones who will follow no laws no guide lines in order to maintain a balanced society that could face the chaos to come?

    War will and has always kept our race in dyer dictatorships. after all count the number of good patriots who join that org? were they mind conditionned? did they use there free will? I guess you have of both ? NOVEMBER the month to remember those who gave there lives and all those innocent who died to the hands of these good patriots?

    There are much more innocent people who have nothing to do with that job of being a soldier that are killed in wars.The numbers to not compare. It is all about genocide and population reduction. There is no logic to war. Greed and selfishness feeds that war energy.
    It does not need to be that way. but we humans have been convinced or we remain silent about war??? We know what is wrong and what is right? The lord has always teached:
    Thy shall not kill but?????????????

    Tom Reply:
    November 10th, 2011 at 3:00 pm

    Well, if Canada ever becomes NECESSARY, then you can be woken up by necessity!

  3. my classmate’s sister-in-law makes $77/hour on the computer. She has been fired from work for 6 months but last month her check was $7622 just working on the computer for a few hours. Read about it here Strongrich.com

  4. Being a paranoid conspiracy theorist for over 10 years now, I have been buying gold and silver when it was much much cheaper back then. I am going to get rich the more metals go up, without ever having bothered with college or getting any high paying jobs. The American dream, going from poor to rich is still possible, but only for who don’t have faith in society and the economy and bet against it like me.

  5. Collapse of the Eurozone is only a small part of the coming GLOBAL SUPERSTORM TRILOGY OF HORROR.

    1. Massive bank failures, chaos, murder, robbery, rape, fires and gun fire.

    2. Darkness, no power, abandon cars. Empty store shelves

    3. Mankind descends into a frozen, dark, and deadly mind numbed predators wondering through
    the frozen abandon cities. Hiding from air zooming monsters firing stinging rays from its tail
    Deadly high tech hunter killer machines are brought to the surface from the underworld of
    THE MILITARY AND SCIENTIFIC INDUSTRIAL COMPLEX OF HUMAN EXTERMINATION.

    HAVE A GREAT DAY LIBERALS!!!!

    MARK OF THE BEAST Reply:
    November 10th, 2011 at 10:56 am

    AND THE SEASONS SHALL BECOME AS ONE.

  6. This has all been designed to fail or that failure was inevitable as a consequence but notice how the focus is on the failure of monetary union rather than the wholesale failure of the EU which is what it really is but this wont mean the end of the EU unfortunately or not yet anyways so in the meantime the cause of the problem will offer the solution as usual and if they dont have a solution right now they will be working on it and they will do anything to stop the EU empire collapsing completely and they thrive on the chaos that they cause.The collapse of the USSR is another example of the same thing.

    The collapse of EU monetary union will more than likely result in stronger monetary union if they have their way.

    Its all speculation on my part so i await their response………………

    wildcat Reply:
    November 10th, 2011 at 3:40 pm

    All the central European countries (France, Germany, Spain, Belgium, Luxemborg) have borders hundreds of miles long and capital cities connected by high speed train, motorway, shuttle plane flight and ferry. Academic research requires international collaboration, corporations have divisions all across the world. It’s a bit hard for these countries not to do trade with each other.

  7. This article has been taken from a news source that targets a more specialized audience, and assumes everybody knows what a gold ETF is. However many in this audience will not know.

    ETF is a acronym for Exchange-Traded Funds that claim to track the price of gold, generally using derivatives. Gold exchange-traded Funds are traded on the major stock exchanges including Zurich, Mumbai, London, Paris and New York. Some gold ETFs do hold physical gold, and some don’t.
    The bottom line is: Gold ETFs are paper not gold. If you invest in gold instead of paper buy .999 pure 1 ounce bullion coins minted by a national government. ETFs are just more paper.

    dhsn Reply:
    November 10th, 2011 at 1:57 pm

    FDR, man of the people who was a wall st investment banker after graduating from from man of the people harvard, stole all the nations gold that wasn’t numismatic.

  8. The ussr survied and became a more free nation.

    So let’s go.

  9. The European Union will not “fail”. It’s in its final form and will be propped up for as long as it takes. If the FED can fool the United States for 100 years, then the NWO can do the same thing with the (relatively) newly-created European Union.

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