This page has been archived and commenting is disabled.
10 Gold Charts Commercial Investment Firms Don't Want Their Clients to See
Here are 10 gold charts that every global commercial
investment firm is terrified to show their clients. When priced in ounces of
gold, major western stock market indexes have performed horribly over the last
8 ½ years. Since, 2002, the US S&P 500 has lost a whopping 78% of its
value. The Australia ASX All Ordinaries Composite (similar to the US S&P
500 index) and the UK FTSE indexes have not fared much better, respectively
declining 70% and 77% in value. So despite all the hoopla about record runs in
global stock market indexes in 2009, the great bubble machines operated by
Central Banks have guaranteed that it may take another 20 or 30 additional years
before investors break even in nearly every developed stock market index and even
some emerging stock market indexes when the returns of these indexes are
measured in gold.
What about emerging markets? Goldman Sachs is fond of
reminding us that they coined the term “BRIC” for the emerging markets of
Brazil, Russia, India and China in November 30, 2001. Despite all the hype
about China’s enormous growth in recent years and the fantastic performance of
these markets in the last decade, when priced in gold, the Shanghai Stock
Exchange has lost 63% in value since the start of 2002. The Brazilian Bovespa
Index? It eeked out a 2% gain over this same time period. And the Bombay Stock
Exchange? This index actually performed a respectable 20% over an 8 ½ - year
period.
Thus, gold's performance slaughtered the performance of the
developed global market indexes and that of China, just about broke even with
Brazil, and only lost to India. If
we look at gold's performance denominated in the world's two leading currencies
during this same 8 ½-year investment period, gold soared by 207% denominated in
Euros and an even more spectacular 324% denominated in US dollars. Even when
priced in live cattle and lean hogs, the value of gold increased enough to buy
1.85 times as many cattle and hogs in a span of just 4 ½ - years. So why has gold performed so well during the early phases of our monetary crisis? Even though Central Banks collude with governments to execute schemes to suppress the price of gold (and silver), because gold has zero counterpary risk, efforts to rig it long term have failed unlike the rest of the casino wonderland of financial products.
Although gold is going through a corrective phase right
now, remember that in the article I wrote last week titled, “The Safest Bet
During Uncertain Markets”, I warned readers: “As long as Central Banks and
their governments scheme against PMs, gold and silver will continue to have
sharp, scary drops in the future at times.” Still, the long-term future for
gold is still solidly higher. If you look at the above performance of gold
against alternative investments, it is easy to realize that all the managers
and financial consultants that are jumping on gold’s bandwagon now are enormously
late in acting in their clients' best interests (though still early as far as
the end game is concerned). Their arguments that gold is only now, a “safe” and
“rational” investment, only further expose their lack of understanding about
the mechanisms of our global monetary system – a scary reality when they are
serving as advisers to thousands of clients whose financial livelihoods depend upon their guidance.
Granted, I wasn’t as early to the party as others with
greater vision. But when my research led me to the conclusion that a monetary
crisis was inevitable in late 2005/ early 2006, I started advocating gold at
about $530 an ounce and silver at $9 an ounce. And what about silver’s
performance from 2002 until present day? A mere 290% return (denominated in US
dollars) as illustrated by the tenth and final chart (admittedly a
silver and not a gold chart, I know).
Again, you may visit the link in the article “The Safest Bet
During Uncertain Times” to understand why gold and silver have never been a
favored asset of large commercial investment firms. Even with the reality of
the deeper stages of the monetary crisis descending upon us, many commercial
investment firms are still directing their clients into fiat gold and fiat
silver in the form of the GLD and SLV ETFs. In the process of doing so, they are
sadly ensuring that their clients will never join the party.
About the author: JS Kim is the Chief Investment Strategist
and Managing Director of SmartKnowledgeU, LLC, a fiercely independent wealth
consultancy company that guides investors in the best ways to buy gold and silver
through the progression of this global financial crisis. His Crisis Investment
Opportunities newsletter has significantly beat all major developed stock
market indexes since the first day of its launch, outperforming the Australian
ASX 200, the UK FTSE 100 & the US S&P 500 each by more than 140% to 150%* since inception (*in a tax-deferred
account). JS also maintains an
investment blog, the Underground Investor, in which he presents financial stories rarely covered by the mainstream media.
»
- advertisements -
Thanks for the charts. Sparked a lively, if not completely respectful PM debate as usual... fair criticizm of "dates of charts," both pro gold and "anti gold."
I am looking for a long term "gold versus real estate" chart. Any suggestions?
Paper-Rock-Scissors was just a kid's game. Just because paper beat rock in that case doesn't mean it does when you're an adult. Are you looking for a smart "scissors" buy too?
Yeah so!
I knew gold would come back some day. I'll never forget that the moment I dug up my backyard and my wife looked at me like I was was a fucking cracker 20 years ago.
I dug them up the other day and they looked brand new. The receipt had dissolved and I think I paid 100 bucks or something.
My wife thinks I'm a friggin genius and hot and I could care less becuase now that gold rellay is worth a gajillion bucks it proves my point from 20 years ago. We are fucked!.
How about a chart that starts in 1982 or 1932?
Why would any bank or banking client care about a SPX:GOLD chart? No bank is scared of showing such charts, they're just not relevant that's all.
With D-E-F-L-A-T-I-O-N, they will throw the baby out with the wash...including gold and silver..... I will be hording with both fists...and there will be PLENTY to go around. How soon we forget to let the trade come to YOU!
And I take it the charts are showing the gains before taxes. So you lost vs. gold, and you still paid tax because you had nominal gains in fiat terms. Quite a racket they have going on here. The tax you up front, they tax you from behind. You are simply a slave, with the result of your labours simply taken away.
I have no opinion whether gold is under or overvalued, or whether it's in a bubble. Admittedly, it's not a market I fully understand, and since it's such an emotional trade, fundamentals probably carry less weight than trying to examine other assets.
However, I have seen charts that clearly show that gold has underperformed stocks over certain time periods and outperformed in others. It's also not a very effective or timely hedge against inflation, if memory serves.
In other words, like every other asset/asset class, it moves in and out of favor. Arbitrarily picking a time frame to show relative performance does not prove or disprove anything with respect to the merits of an investment today. There's no bullet-proof investment or strategy that you can sock away and never think about again. Clearly, those accumulating gold over the past several years have done great. Congrats. But I would hope they are not blinded by their own success because stocks, etc. will have their run again too.
I do believe that you are the first person to ever make sense here in the comments. +1
I have to say, nothing brings out the passion (for both sides) like a discussion about the merits of investing in gold. Oy vay.
Old viking proverb "metal good, paper bad"! challenging to predict results on pre-determining the future price of anything one must now do so "GLOBALY"!! every man woman and child on this planet now seeks a similar level of abundance we amerikans have undeniably monopolized since the late 1940's. (recall the days playing MONOPOLY?) revisit that box and re-examine the lessons of it. haunting similarity to current affairs. the feds hate to see folks with any form of control in hand.(take away the booze,take away the gold!=give em back the booze, give em back the gold!) when the citizens control a larger stake in the game the powers that be do every thing it can to manipulate a containment. along with geo-politics and a broader assumption of correctness they perpetuate (untruths)it becomes more appearent that the mission is to control it "all". when you attempt to acquire and require gold/silver...it deeply concerns them. the power of the archaic relic has rekindled it's very nature. mortal men seek it, and forever will. as is such, history not well remembered shall be relived.
I am long gold MF since 1993, and swung out of Euro index in Feb to more gold. It is 25% of my portf. Glad I did. As for now, I will not worry until and if we get to 940. This was not my entry point. This is some TA I did.
2. I think as others around these parts that like oil we will never know the reserves/bars really out there in them there vaults. Fort Knox, maybe like Heraldo's vault. EM F ing TY!! Prove me wrong.
ummm, how about the gold chart versus stocks, or housing or whatever over last 50 or hundred years...no doubt last 8 years have been good to gold and bad to stocks...but pick another 8 yr period a few decades ago and charts could be opposite....how about oil versus stocks for various 8 year period in the last 50-100 years...how about gold versus Amsterdam real estate over 400 years...now that would be interesting
You left off the 10yr Treasury note, whoops that one looks good
US dollars have lost 98% of their value compared to Gold since the Fed was founded in 1913.
I really don't understand how anyone can be so foolish as to keep a hoard of wealth in the form of cash.
GOLD IS MONEY. SO IS SILVER.
"The price is going up because China is buying. Blame them. Blame China!" -Paul Krugman.
Chinese dumping worthless currency for gold (17May10):http://www.youtube.com/watch?v=SbUvvfJakfI
Oh and that paper is backed by the world's doelarr. Ha!
"Nothing beats a little cash in a bear market, of course, and the oldest form of cash is gold." - James Grant
Based on the GOLD chart we've been in a bear market since 02.
All those charts say to somebody with common sense is that gold is overvalued relative to other assets.
Of course, gold fell 70 bucks over the last week since making its double top.
Hate to say I told you so. I guess that's why I'm on my way to the pool to drink Pina Coladas in Vegas right now.
Looks JB took over for HarryWanger for the award for "Posting the most BS in one day".. Nothing like ignoring history to make a point.
" I guess that's why I'm on my way to the pool to drink Pina Coladas in Vegas right now." Boy, if you can do that in Vegas, you must be something. WOW. Even the 3 toothed double-wide owner can do that, too, on a Friday morning..
Of course, gold fell 70 bucks over the last week
Thanks for showing us that JB, never experienced anything like that before,
except at 700, 800, 900, 1000, 1100, 1200.....
Buried canned ham in the backyard Biatchies!
Options expiration. We all know what happens after those hit. So you're going to need to add a 1300 line.
On your way to buy condos, eh?
Options expiration is on Tuesday. After that, it will be off to the races again.
Dooood! Where ya been? I've been anxious as to your health. Are you in Vegas to get a good deal on a forclosed McMansion? I hear that's where the deals are.
Does this look over sold?
I think not.
BTW, none of the junks you are about to get is mine.
("None" is a contraction of "not one" so is singular, hence the verb use of "is".)
That's a good grammar tip. I didn't know none is singular.
Knowledge will always be in a bull market.
We are in a 'bubble bubble' right now. Soon, this bubble will burst, and bubbles will come crashing down.
http://google.com/trends?q=bubble
When the retail investor starts calling a bubble, you know we're in a bubble.
My first investment in 1977 was to buy silver, cant remember how that turned out.
The question is will the regulators ever make an attempt to put an end to the PM manipulation which is so blatant now that even my cat is noticing it.
It seems the regulators are there to help the banks defraud the people.
The SEC and CTFC and the like act more like fronts for organised crime. Their lack of action over the past decade on the blantant manipulation that goes on leaves little room for explanation except they are corrupt, since the cannot have missed it.
They should stop to think, that when the melt down happens and the SHTF and the reset button pushed, it will not only be the banksters that are bought before 'truth commissions' but also the regulators will face the music and interogation. They might think they are safe now hiding behind some powerful bankster or politicians, but that will pass and they will be left to hang.
Everybody hates a bent cop, and thats what the regulators have been.
The banks aren't manipulating anything.
They are betting against you, the retail investor, since retail investors are the last to pile on to a rally.
They will make a killing being short as you frantically search to sell your physical gold as the price plummets.
And you will feel silly for not believing the JB. Salvage your portfolio. Don't get hit by the train that is coming.
You have thirty seconds left, and you can see the engine speeding toward you on the tracks.
Will you stand there and shout "goled bitchez" like a retard? Or will you cash out your gains and take your family on a nice vacation somewhere?
The choice is yours.
LOL!
Paper comes and goes.
Gold and silver have been around for centuries. You don't 'trade' gold and silver, that is what the Ponzi paper markets are for. You buy gold and silver and keep it locked up someplace safe for the day when the wheels finally come flying off the whole god-damned, debt-ridden, three-ring circus, cluster-fuck they call our 'economy'.
I buy gold and silver every stinking month, and I will probably never sell it until the entire Ponzi blows sky high. I am only 31, so I have plenty of time to wait.
Johnny, you do realize you're accusing others of shouting like a retard by yelling through a megaphone?
You're right, the "banks aren't manipulating anything," they're working together with the corrupt government to manipulate everything. And you're right again, there is no history of any bank, S&L, or financial institution writing the rules and paying the big boys to look the other way. And once again, you're correct, given the tremendous financial health of our country and our banks, there is absolutely no incentive for any of them to do this.
JB loves assets that can and are being reproduced endlessly by other parties. That's why he want's you to take "profits" by selling your gold for some paper.
JB has always been wrong, and will always be wrong about metals.
Therein your argument goes all to hell. I admire your idealistic comment, but can you really expect the cop on the take to do the right thing? It always has been thus, and shall continue to be.
This should firm up the precious metals values:
Fed Assets Reach Record $2.35 Trillion on Mortgage PurchasesI find this disconcerting because minimum with Tulving is 20 oz Au and 500 oz Ag
So I guess the bullet train left the station.
I see Johnny B., alias Master B., has arrived on the scene. Rubber-necking to see if there is any carnage and hand-wringing. None here, Johnny. You can go back to lurking in Ben's bushes as Akak pointed out.
Tulving is out of 10 oz Credit Suisse and their spread/oz. went from 14.95 to 22.95.
what city are you in and do you remember the buy-sell for gold and silver?
Silver and gold are disconnecting from the paper prices.I went to get some Silver this morning and it was $25 for ase eagles. Flea markets are getting about $22 for 90%..The paper markets are starting to become non existant.It is at the end of the day a supply and demand.And the demand is through the roof, atleast in my area.
Retail investors are always the last to buy the rally.
They help with the pump, before they get killed by the dump.
It's not an accident that the biggest banks have been short, and increased even more short interest since gold's top.
Told y'all mothaf&**ers. I just found out I have wifi in my hotel room, despite paying for it for the last week. LOL
hey johhny b gold,
start asking your friends and neighbors if they own any gold. i personally don't know anyone who owns more than 2 coins their father left them. in the 90s grandmas were buying tech stocks, in the oughts kids fresh out of college were buying houses - that's what a bubble feels like. i bought in 2002-3 and i'm not getting out now. i'd bet you a gold coin you're wrong, but you won't have the ante.
Less than 2% of Americans have ever physically owned an oz. of gold, so much for the "retail" investor pumping the gold market. Let's talk about retail investors when 10% of Americans own at least one oz. of gold.
JB,
You're SOOOOO right. I want to avoid the pump-n-dump, that's why I invest in STOCKs S&P 500 BABY!
/sarcasm off
I made a killing on VXX since the S&P top.
God bless the VXX.
Oh, and FAZ! Forgot about the FAZ.
LOL if your so called VXX & FAZ trades are anything like your gold calls so far, you must have had to walk to Vegas on foot after fireselling your car for margin call money.
I agree. The disconnect is beginning. Forget the Comex. Dealers are seeing increased demand for physical from regular Joes and are adding the premiums. It's about awareness. The only way for this thing to come down would be a classic shortage. Those holding paper will settle in cash and be hush about it because they will get a bump up.
They're getting their premiums where they can. It has nothing to do with a "disconnect."
It's just the retail investor lambs being led to the slaughter. Here, pay 25 bucks for a coin that is worth 20.
Sheeple: *baaaa* Okay! Silver, Bitchez!
Hypnotician: Gold will only go up because it's pretty, shiny, and you can hold it in your hand.
Sheeple: *baaaa* Goled Bitchez!!! Gold to 6000!
LOL at goldbugs. Doesn't look like it's going to hit your 2000 an ounce by June price target from December, does it?
Hey Johnny, the DC cop who arrested you for masturbating in the bushes outside of Bernanke's office window in your "I Heart the Fed" T-shirt told me that he couldn't understand why, as he led you away in handcuffs, you kept screaming "It's all gold's fault! Gold made me do it!"
LOL
Is it just me or when people are jumping up and down screaming rally.... isn't there supposed to be some UPWARD! Movement?
How about just a lil bit of UPWARD! Movement?
No UPWARD! Movement and in fact DOWNWARD! Movement is not a rally! Well, unless you are a Gold Bug!
I read... "Stupid is, as Stupid Does!"
Hurry... Limited time only!!!
Buy into the Gold Bubble...
But hurry! Before prices dip any lower!
Don't be left out!
Don't be one of those who Bought Low to sell High!!!
The End is Near... We are waiting on your call... 1 (800) You-Idiot or 1 (800) Gold-Bug
Republicans, Evangelicals and Sheepeople get here fast!
Before...
The Uni-Bombers, Rapture Crowd and / or other idiots steal your top spot!
Remember Gold will not be at all time highs forever! Hurry and buy at the top!
For a limited time only we will offer You! For! Free!!! a “How to scare your friends and family into buying Physical Gold!” kit, as taught by an out of work used car salesman! A $5.00 value for free!!!
Remember that the End is Near!
Don’t get caught Buying Low to sell High!!!
Ignore the 30 year charts at all costs? http://66.38.218.33/scripts/hist_charts/yearly_graphs.plx
And, it should be pointed out, gold has lost ground to inflation from its 1980 peak of $850 to now. Adjusted for inflation, $850 in 1980 would be $2,221. Those who bought gold during the last inflation scare are still waiting for the big payoff.
http://www.inflationdata.com/inflation/images/charts/Gold/Gold_inflation_chart.htm
Please repeat that again. I wasn't paying attention.
Insert fake concern for you as well. I wish you the best and all that crap.
Cuz it will help me manipulate you if you think I care.
I think your problem is that you are pissed off... about the same shit I am pissed off about... I think that I bash you maybe even when you dont deserve it becuase I am pissed off about something else.
But, having admitted that I have bad days and even mis-place my anger... does not change the fact that you share nothing but some pretty writting...
You use spell check and even have a great rythum... but you dont offer charts and you bad mouth the facts wihtout the use of facts... really its like you are one of the beltway gang, or a wanna be beltway gang member... sweet talk or shot talking that really never addresses anything... no point to your points, just broad sweeping crap being spewed all over.
You are commenting in a gold thread, and bad mouthing without even offering an opinion on the subject of the thread?
Now I can say your a spinless, non-point making idiot... but let me be clear, your behavior! NOT! my mentioning the facts make it so.
Good luck standing for nothing and falling for everything, it takes all kinds? I guess?
As for manipulating someone with a fake name in a chat room? why? have I ever once, EVER tried to win a popularity contest? I submit facts for review by all, I offer arguements for all to engage in... I try to spark conversations that go somewhere for the betterment of all NOT! win beauty pagents... seems to be a lil more up your alley.
I say what I mean, I site facts and I dont suger coat shit... Bull in a china shop? Maybe? but I dont blow smoke up peoples asses like you do.
Heres some manipulation for you... go fucking shoot yourself, in the face with a paintball gun... maybe the pain will get you to wake up a little and get you off that nasty high horse you think you are sitting on... maybe even google something or a subject that you are interested in... and if you find some interesting facts.... share them with everyone...
OR!!!!!!!!!!!!!!!!!!!!
Sit back and take pop shots at people who are really sharing, its really your choice and we are what we do...
Sincerely, JW