Want in on a little something the time monks are willing to share publicly? OK, try this one on --- but remember, this is a probability only and may or may not happen as expected...so think in terms of it being a possibility only for now...



Ask yourself what would happen if a large financial entity - and it could be a private mint, an ETF, or something like that - was discovered in the next, oh, two or three weeks - to be holding a lot of counterfeit gold that was apparently made in China? Suppose further that the discovery happened during some kind of official audit process and that as word spread, it was discovered that not only were gold bars involved, but perhaps gold coins of recent vintage and maybe some involvement of silver as well. How would that work out?



Curiously, as I've been penciling it out over the weekend, it might initially send people scurrying to US Treasuries and it would drop the price of gold perhaps as low as $650-$700 before launching to $1,900 after the shortfall of real gold comes into focus...which is what Robin Landry's charts infer. It would also keep a lid on interest rates since Treasuries would be seen as an ideal safe haven. With all those treasury auctions to fund the bailout/printout festival, the flight of hedge managers from recently acquired metals would certainly keep rates low and these, in turn, could be seen as the reason for some confidence in financial markets returning until July 18th, or thereabout.



Of course, this is all only a possibility (although I find myself now wondering about Hillary's recent trip to China...was she there to warn them what our plans were and not to freak out?). Did I mention that a fraud discover in gold would do marvels for the US dollar's value in world markets? It would be a one-size solves all problems kind of solution - sort of like a mini War on Terror...a war on gold. Oh, and the leading edge of it seems to be showing in a Chinese counterfeiting story in Coin World, too...

There have been 2 long articles in recent issues of COIN WORLD about the Chinese fake coins. They are making fakes of all U.S. gold coins, silver dollars, commemorative silver halves and dollars, British gold sovereigns, Krugerands, Maple Leafs, 100 Coronas, and they even make fake slabs to hold the coins with miskleading labels.
This represents a very serious threat to the hobby. But our government has done nothing to stop it.
The article says many of these fakes have appeared on E-Bay and Craigslist.com and other web sites as well.
The articles in COIN WORLD gives tips on how to detect these fakes.