• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

Ben Believes Gold Only Has Value Due To Tradition

Tyler Durden's picture




 
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Wed, 07/13/2011 - 12:35 | 1452418 FEDbuster
FEDbuster's picture

.308 match grade hollow points have value due to tradition (and the ability to reach out an "touch" someone at 800 yards).  Make sure you diversify your portfolio with beans, bullets and bullion.

Wed, 07/13/2011 - 13:11 | 1452598 Ponzi Unit
Ponzi Unit's picture

Make that "buried bullion"?

Wed, 07/13/2011 - 13:17 | 1452614 DosZap
DosZap's picture

You limited the range.............

Wed, 07/13/2011 - 14:42 | 1452956 LFMayor
LFMayor's picture

That's a tough shot beyond that.  I admire your optimism and possibly your skill, but think you might have a little bit more of one than the other ;0  

Wed, 07/13/2011 - 11:41 | 1452045 Zero Debt
Zero Debt's picture

Ben should be on stage every day. Every time he speaks the once cute little gold bug is fed a little bit more fiat, growing into a ferocious gold monster.

Wed, 07/13/2011 - 12:34 | 1452413 dwilso39
dwilso39's picture

I working on a real time chart: he spoke from 10-12:30pm - gold increased about $15.36 during that time.

 

I'd like him to do appearances every day!

Wed, 07/13/2011 - 12:55 | 1452530 Ponzi Unit
Ponzi Unit's picture

+1

Wed, 07/13/2011 - 18:19 | 1453892 FEDbuster
FEDbuster's picture

Ben does for gold prices, what Barry has done for gun sales. 

Wed, 07/13/2011 - 11:56 | 1452153 Mad Marv
Mad Marv's picture

If he really believed this, his actions would be otherwise.

Wed, 07/13/2011 - 12:31 | 1452400 bonddude
bonddude's picture

I don't know how RP didn't bust a gut on that.

Wed, 07/13/2011 - 11:24 | 1451921 Mongo
Mongo's picture

He is as pshychotic as they come...

Wed, 07/13/2011 - 11:25 | 1451924 hazek
Wed, 07/13/2011 - 11:31 | 1451968 flacon
flacon's picture

Thank you for posting the video. That was CLASSIC! 

Wed, 07/13/2011 - 11:32 | 1451975 Temporalist
Temporalist's picture

I second that.  Thanks!

Wed, 07/13/2011 - 11:36 | 1452009 hazek
hazek's picture

I'm not the one who uploaded it, but you're welcome.

Wed, 07/13/2011 - 11:37 | 1452022 TheTmfreak
TheTmfreak's picture

Ahhh.. just as sweet as the first time I heard it. thanks! I've duely emailed this out for many to see.

Wed, 07/13/2011 - 12:05 | 1452228 RockyRacoon
RockyRacoon's picture

"The price of gold reflects many things...."  Ben Bernanke.

I'll add that the valuation of the dollar reflects only a few things.

There is a much shorter list of what the meaning of a weak dollar portends.

So, which is the better "asset"?

Wed, 07/13/2011 - 12:20 | 1452332 dark pools of soros
dark pools of soros's picture

I guess Paul will be asking soon 'so how long you think the dollar with last?'  since he can back it up by saying no fiat survives forever so it is a fair question.  But another one to avoid like the plague for the Bernak 

Wed, 07/13/2011 - 12:54 | 1452525 55 men
55 men's picture

You think he would give the same answer....Tradition? 

Wed, 07/13/2011 - 13:53 | 1452754 DosZap
DosZap's picture

55 men,

No, he would say "It's the RESERVE currency of the World".

Wed, 07/13/2011 - 11:25 | 1451926 camoes
camoes's picture

Why not seashells?

Wed, 07/13/2011 - 11:34 | 1452000 morph
morph's picture

Because there is no tradition linking seashells to wealth.

There are rarer things than Gold which have less value. 

An asset is only worth what someone else will pay for it. If everyone thinks gold is great than it is worth money. The same way paintings sell for millions. I personally wouldn't pay 10 bucks for paintings that sell for millions, except for the fact that I know I can probably sell it on to someone who would pay the earth to show how wealthy they are to others.

Wed, 07/13/2011 - 11:38 | 1452030 camoes
camoes's picture

I like seashells, they're pretty! I WANT CBs TO HOLD SEASHELLS!

Wed, 07/13/2011 - 12:02 | 1452208 morph
morph's picture

Well if you can convince enough people that seashells are the thing to have then you'll make millions.

Millions still believe in God. Gold having value is relatively rational by comparison.

Wed, 07/13/2011 - 12:04 | 1452219 knukles
knukles's picture

They're not shiny enuf.

Wed, 07/13/2011 - 12:07 | 1452243 RockyRacoon
RockyRacoon's picture

Here's a checklist for you:

  • Transportable: Must not be bulky, too big or oddly shaped.
  • Divisible: You must be able to easily divide it into different sizes.
  • Storable: You must be able to easily store it.
  • Fungible: One piece of equal size and weight can be substituted for another.
  • Resilient: As your transporting, dividing and storing it it should not rust, melt or decay in any way as to lesson its value.
  • Measurable: Its weight should be unique to itself and easily verified.
  • High Unit Value: It should have a high value per unit of measure, transport or storage.
  • Desirable: It should be widely appealing and considered a luxury in and of itself.
  • Rare: It should be rare, but not too rare, in relation to all other things on earth.
  • Hard to Counterfeit: It should be extremely difficult to reproduce.
Wed, 07/13/2011 - 12:21 | 1452335 BigJim
BigJim's picture

Beat me to it!

You must admit, though, it's hard to print seashells.

Wed, 07/13/2011 - 12:25 | 1452359 dark pools of soros
dark pools of soros's picture

so those japanese school girl used panties vending machines are really ATMs?

Wed, 07/13/2011 - 12:43 | 1452466 tarsubil
tarsubil's picture

He gave 10 characterists for sound money and your example has one of them: rare. This is just for the record. May God have mercy on your soul.

Wed, 07/13/2011 - 12:25 | 1452366 Temporalist
Temporalist's picture

Rocky just to add to Fungible: It is globally substituted and exchanged for like amounts. 

Wed, 07/13/2011 - 12:48 | 1452479 knukles
knukles's picture

Yeah!
Like used Japanese school girl panties.
The panties I mean.

And people think the Japs have a problem because of Fuckushittinme.

Humanity is doomed.
There is no veneer of civilization remaining.

 

Wed, 07/13/2011 - 12:48 | 1452490 camoes
camoes's picture

Bitcoins???

 

Hmmm silver rusts and decays, maybe that's why it won't be held by CBs?

Wed, 07/13/2011 - 19:43 | 1454186 smore
smore's picture

Bitcoins?  Have you ever had a hard drive crash? Ever had a memory stick die on you?  Bitcoins are just bits, not quite as durable as metal, or diamonds...

Wed, 07/13/2011 - 19:37 | 1454162 smore
smore's picture

How about "easy to get through a metal detector" ?

As we head into Armageddon, diamonds will rise in value too.

Wed, 07/13/2011 - 12:21 | 1452341 PlausibleDenial
PlausibleDenial's picture

Umm, not so true.  Go to Papau, New Guinea and see their shell money.  They still use it as a means for exchange.  Even the IMF could not convince them to reduce the use of shell money.  I have some, but you could google for more info.

Wed, 07/13/2011 - 12:59 | 1452549 camoes
camoes's picture

But if they don't use shells at Wall Street, why do they keep playing the shell game with us?

Wed, 07/13/2011 - 14:45 | 1452971 LFMayor
LFMayor's picture

They don't have much indoor plumbing though. Or live past 55 years old. Not that either is a necessity, but both nice to have.

Wed, 07/13/2011 - 12:38 | 1452435 tarsubil
tarsubil's picture

Do these rarer things have similar characterists to gold (elemental, metal, non-toxic, non-reactive, et al)?

Wed, 07/13/2011 - 11:44 | 1452064 Long-John-Silver
Long-John-Silver's picture

Crowded Beaches as people search for seashells would cause land shifts. Problems  such as Guam tipping over would happen all over the world.

http://www.youtube.com/watch?v=zNZczIgVXjg

 

Wed, 07/13/2011 - 11:56 | 1452155 LFMayor
LFMayor's picture

Good call, bringing that back to light.  But you know that these are the annoited and illustrious leaders you're villifying,  didn't you hear yesterday from King Putt himself that these matters are best left to professional politicians.  Tiny filthy peons like us need not understand.

Wed, 07/13/2011 - 13:55 | 1452764 Mad Cow
Mad Cow's picture

"King Putt" LOL!

Wed, 07/13/2011 - 14:47 | 1452973 LFMayor
LFMayor's picture

can't take credit for it, read it on another blog yesterday.  But I'm sure as hell going to spread it around!

Wed, 07/13/2011 - 11:26 | 1451927 Thisson
Thisson's picture

That's funny, when Ron Paul asked GREENSPAN the same question in 2005 he got a COMPLETELY different answer:

http://www.lewrockwell.com/paul/paul267.html

 

 

Wed, 07/13/2011 - 11:32 | 1451978 Bay of Pigs
Bay of Pigs's picture

That might be the dumbest and most ridiculous thing Bernanke has ever said.

Wed, 07/13/2011 - 11:35 | 1452005 Temporalist
Temporalist's picture

Here is where it all went wrong then.  Alan Greenspan on gold and gold standard: "So I think central banking, I believe, has learned the dangers of fiat money, and I think, as a consequence of that, we've behaved as though there are, indeed, real reserves underneath the system."

Wed, 07/13/2011 - 12:01 | 1452195 flacon
flacon's picture

I wonder where Alan Greenspan learned how to speak English. 

Wed, 07/13/2011 - 12:05 | 1452225 Cognitive Dissonance
Cognitive Dissonance's picture

I'm always amazed how quickly Greenspan changed from speaking with a mouth full of marbles to being quite coherent. It began two minutes after his term with the Fed ended.

Strange coincidence, don't you think?

Wed, 07/13/2011 - 12:11 | 1452261 RockyRacoon
RockyRacoon's picture

Not really.   If he really is, in his heart of hearts, a Randian then his job is done.   He has done more than any other to bring the system down.

http://www.caseyresearch.com/gsd/sites/default/files/Purchasing%20Power.png

Since the bottom in gold in the first quarter of 2001...the U.S. dollar has lost almost 85% of its purchasing power vs. the yellow metal since then. I would think that the chart for every other currency on Planet Earth would bear a striking resemblance to this chart.

http://www.caseyresearch.com/gsd/home

Wed, 07/13/2011 - 12:35 | 1452416 DoChenRollingBearing
DoChenRollingBearing's picture

Nice Rocky, may have to add that one to my blog list.  I had not visited that link before.

+ $1570

Wed, 07/13/2011 - 12:46 | 1452477 RockyRacoon
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