Like seismic tremors preceding a volcanic eruption, ominous warnings of the coming worldwide economic collapse are hitting the information highway with an enormous acceleration. Just last week, in a previous article entitled No Gold Medal For The “Too Big To Fail”, we wrote concerning five portentous and chilling developments involving major banks and their respective governments, that seem to point directly to a fast approaching global financial meltdown.
This week, the trend continues. While Mr. and Mrs. Average American have been lulled into another phase of false security by the stock market’s recent four year highs, the power brokers of the planet are selling into this “dead cat bounce” rally. And…get ready for this…they are also buying gold, and not just a little bit – but a lot!
Gold has always been considered by those truly in the know, to be the ultimate protection and hedge against currency collapse, impending political crisis, banking failures, and wars, all of which are now looming on the horizon.
That is why when someone with the reputation of George Soros, whose killer instincts have earned him untold billions, suddenly dumps all his banking stocks and starts stockpiling gold, it would be wise to become alarmed and forewarned. The following is from the shtfplan.com website:
In a harbinger of what may be coming our way in the Fall of 2012, billionaire financier George Soros has sold all of his equity positions in major financial stocks according to a 13-F report filed with the SEC for the quarter ending June 30, 2012.
Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.
What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust.
Hm…Let’s get this straight; George Soros, one of the most ruthless and highly connected traders on the planet, suddenly hates bank stocks and is hoarding gold. Maybe there is a message here. Actually, that message comes directly from Soros himself. Earlier this year in an interview with Newsweek, Soros ventured the following:
…”The situation is about as serious and difficult as I’ve experienced in my career”, Soros tells Newsweek. “We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.”
But it is not just George Soros, the uber rogue trader, who is buying up gold. The world’s central banks are also in a buying frenzy for the yellow metal. The World Gold Council reports that the quantity of gold purchased by the world’s central banks absolutely skyrocketed during the second quarter of 2012. In just ninety days, they bought over one hundred fifty-seven metric tons of gold, which was a sixty percent increase over the first quarter of 2012, and an incredible one hundred thirty-eight percent increase from the second quarter of 2011.
Heading this charge into gold is China. Zero Hedge is reporting that the Chinese National Bank has purchased three hundred eighty-three tons in just the last six months, which is more than the official gold reserves of Portugal, Venezuela, Saudi Arabia, and the United Kingdom, among others. There are also strong rumors that China’s gold accumulations are far greater than is reported. The Chinese are not just doing this because they think gold is pretty. It can only be for wealth preservation and crisis protection.
Back in the Euro Zone, the banking crisis and the threat to the euro continues unabated. In a brazen warning to the all the Euro Zone member countries, Finland’s Foreign Minister, Erkki Tuomioja, announced just last week that his country was battening down the hatches in preparation for a full blown currency crisis and a breakup of the Euro Zone. Mr. Tuomioja’s words are the bluntest warning so far by a senior Euro Zone minister. There are more sure to follow as the debt ridden European banking crisis expands out of control. (There will be more on this to follow shortly.)
Lastly, the threat of war in the Middle East moves ever forward. The deadly chess game over oil reserves and crucial geopolitical positioning involving Israel, Iran, Syria, the Gulf States, the U.S., Russia, and China continues full throttle. Reason and prudence seem to be totally abandoned at present and we could well be staring at the precipice of ever spiraling global conflict, the outcome of which no one can foretell. This is the time that we, as individuals, families, and micro-communities, must band together and make our own preparations for our survival, both economic and social. The future belongs to those who are prepared.
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Written For: Liberty Gold and Silver News Blog