Cyprus Confiscates Gold!

Mark Grant, writing for ZeroHedge, reports on a move that precious metals holders everywhere have long feared.

"Please note that until yesterday all depositors in Cypriot banks were insured up to the value of €100,000 with any one bank. Today that solemn governmental promise has been shown for what it is; a lie. Worse and actually far worse and quite scary in fact is that the European Union and the European Central Bank and the IMF has not just allowed violation of the deposit insurance but demanded it. One thing is certain here; if they can void deposit insurance in Cyprus then they can void it in any country in Europe. Further; if they can void deposit insurance then they can void bond covenants with the scratch of a pen on paper. Nothing now; Nothing is safe!"

What's that   You missed the part about gold confiscation?  So did I, and that's the point.  Cash in a bank is a remarkably easy target for politicians and bureaucrats eager for a fix.  To be clear, so are ETFs purporting to hold gold, and even mining shares.

When things get bad, really bad, the safest counter-party is no counter-party at all.  Parents, it's 10:00.  Do you know where your gold is?

Eric Sprott on the "Recovery" and Gold!

In a few paragraphs, Eric Sprott fillets the notion of a recovery.  U.S. housing?  No.  U.S. employment?  No.  European solvency?  Not even close.

Then he goes on to detail the incredible rising demand for physical gold (Am I the only one that feels silly needing to say 'physical' in connection to gold?) in the rest of the world.  Odd then, that gold prices seem to be an "immovable object" lately.  As I read Sprott, we may soon see an "irresistible force."

"We have written at length about the disconnect between the paper gold price and the physical gold market. If the demand changes stated above applied to any other market, the investing public would lose their minds. "

And when they lose their minds, gold can be expected to go parabolic.  THAT is when we reach bubble territory, and when it's time to consider liquidating your precious metals and converting them to. . .

Gold Ipsa Loquitor

One Ounce Of Religious Non-Money Tradition = $1700

via One Ounce Of Religious Non-Money Tradition = $1700 | ZeroHedge.