Hypothecate defined HERE! If I sold you something of value, but I did not give you title to it or possession of it, would you be a little uneasy about your purchase? Now if someone had “hypothecated” something, and then decided to “rehypothecate” that something, would you get even more nervous? This is what is going on with gold and silver in the market place. GLD and SLV are ETF‘s. GLD and SLV ETF’s are a system of selling “hypothecated” gold and silver. See HERE!

Last this writer heard, GLD had sold 130 ounces of paper gold for every one ounce or “real” gold GLD actually possessed. Some analysis HERE! The bankers are behind this dilemma, and they are fast approaching the end of the road, and you the taxpayer will pick up the tab.

Imagine, someone sells you an “hypothecated” house. You were now a real estate investor. Time to go live in your house. You arrive at the front door, and there’s 130 people in front of you who say they own the house also. What do you do? Where will you live? Who actually owns the house? Can 130 people and their families live in the same house at the same time? What do you think?

Paper assets representing hypothecated assets are very highly suspect and risky investments tied closely to derivatives. Derivatives are sophisticated gambling ploys, and the odds are ALWAYS with the house! NOTE: the “house” in this case is the banksters! Be very, very careful!

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