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April 20, 2016 | He who has the Gold makes the Rules! Says China!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

The Shanghai Gold Exchange is creating an emotion for gold and silver as a temporary ‘store’ of value…and also a trend toward truth in trading of gold and silver! Today’s opening of the SGE may start a trend which will be difficult to stop for a time (many years). I have known of the concept called ‘paper’ gold for years. I have exposed this concept in my blog for years! This concept is such a deception as there is no such ‘thing’ (in reality) as ‘paper’ gold. This concept called ‘paper’ gold is nothing but a trading gimmick to suppress the real price of gold/silver and promote our ‘digital’ currencies. Our corrupt banking and political authorities have adopted this ‘paper’ trading strategy on our electronic futures markets merely to deceive those desiring gold/silver as sound forms of money. A few of us have discerned this deception and reported the corruption!

The EAST now has most of the Gold and the WEST is mostly promoting Digits as money!

The Shanghai Gold Exchange may help to wake-up the trading community to the reality of supply/demand!

A few more are now waking up to this ‘paper’ deception and demanding actual settlement in real physical gold/silver when they trade. This trend is likely to grow in the next few months and this will expose this deception which gold bugs call the ‘paper’ gold market. In reality, this market is a ‘digital’ gold market where no delivery/settlement occurs. The word ‘paper’ market actually misrepresents the ‘nature’ of this trading strategy. The END of this phony ‘paper’ market may soon be occurring…and this is healthy for those who desire truth in our markets! Real supply/demand should set the price of gold/silver and the Shanghai Gold Exchange may help to restore this reality to these markets. We will need to watch and see what happens. Our Central Banks may attempt to create another deception if we are not fully focused and aware! Beware of additional deceptions!



The gimmick of ‘paper’ gold on our electronic futures markets has corrupted price discovery for years! Is this changing? I hope so!

As of today, the price of Au on the physical market was $40/gram. There are some 31.1 grams per troy ounce and we now could witness the real supply/demand price of Au going to $80/gram within a couple of months and then to $100/gram by the end of 2016. This would mean that the price of gold in dollars could be around $3000+ by the end of 2016. Emotion and market conditions could play a huge role in creating this huge increase in price by the end of 2016. All this assumes that traders will force the corrupt ‘paper’ market to fold. Traders are like sheep who follow a growing trend. As traders discern that the ‘paper’ market is phony and corrupt we could witness more momentum towards a real supply/demand price discovery mechanism for our precious metals. My sense is that traders are starting to wake-up and this may help the media and pundits to wake-up!

Broken chains? Many financial pundits have predicted an upset in our markets for months…which have been skewed by years of central bank money creations and manipulations (the digitization of currencies, QE, and trading gimmicks)! Is some reality now coming to our markets?

There are many pundits and commentators who still must wake-up to the prior manipulations/rigging within our gold/silver markets. This may take some time as human nature is very slow to change. I still witness most of our media pundits refusing to recognize the ‘nature’ of the ‘paper/digital’ market and its corruption in setting the price of our precious metals. I listen to these media pundits daily and most still can not accept the reality of manipulated and rigged markets. I hope the Shanghai Gold Exchange and what happens with this market going forward will force many more pundits to realize that all our markets are ‘rigged’ and that price manipulation is ubiquitous within all our markets. We must watch what happens in the coming days, months, and years! Enjoy the trend towards honesty and truth in our markets (at least for now)! I am:

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April 20th, 2016

Posted In: Kingdom Economics

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