Bill Buckler Discusses The Last Price Standing Of "True Money", Answers The Only Question Relevant To Gold Bugs

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
CashCowEquity's picture

I am a Privateer subscriber. This is an  excellent newsletter and I recommend all to subscribe. Job well done!!!

tictawk's picture

Great article.  The one major problem remains i.e. over the last 40 years, all the debt was created in a FIAT currency and if the dollar becomes a hard currency, it will make it impossible to repay the debt because the means of easy credit creation will be unavailable to the Fed. Real wealth payback is a in a hard currency is impossible given that this nation has exported is blue collar and white collar job overseas. 

So all that remains is DEFAULT on the trillions in DEBT.  Shhhh! don't tell our Asian vendors :-)

GoldSilverDoc's picture

Finally, somebody who says the same things.  It is silly to think of a "price" of gold in a fiat currency.  It is sort of like believing that wealth is equal to numbers on some bankster's computer.  It is only wealth as long as the "greater fool" theory is operative; when that stops (and it always does, and it will),  it becomes, once again, just a bunch of electrons.  

Producing ag land.  Gold.  Producing factories.  Tools.  Guns (another type of tool).   Knowing HOW to do things.  These things are wealth.  "Financial products" based on fractional reserve banking and government counterfeiting are simply ways to STEAL wealth.


The Rogue Economist's picture

Actually, that happened in 1971. It's just that everyone has pretended that it wasn't a default to keep their economies going. Over the last 30 or so years, they've started believing the fantasy. But the time for dreaming is almost at an end, it's time to pay the hotel bill

Hulk's picture

+1279. Gold Bitchez!

CashCowEquity's picture

Physical Delivery Bitchez !!

Squid-puppets a-go-go's picture

see the figures above, dude - Gold is Silver's bitch

UGrev's picture

I bought as much as I could afford when it was like 11-12/oz.. I'm a happy man :)

DoChenRollingBearing's picture

Hulk is right!  Keep buying, I am off to the coin shop for more PMs.  I want to show (if it comes to that) the IRS that the prices I paid for gold are high!

DoChenRollingBearing's picture

Hulk, re your comments on another thread, yessir I remember chiggers when I lived in a small town in the South when I was a kid!  Worse than mosquitoes, worse than No-see-ums.

All of this scary talk tonight makes me want to think about buying some rural property in PERU, and maybe have sharecroppers work it...  Could Peru be a better place to be if .gov gets out of control here?  Beats me, I am watching and paying attention every day. 

The Navigator's picture

Not sure what the political situation in Peru is like, but here are their tax rates (not much in savings compared to US rates). Not so sure they'd let you keep your guns to protect your gold either. Not many place to run to now.


IQ 145's picture

Silver, Bitchaez !!

Jendrzejczyk's picture

Beyond all the insanity that is happening in the world now, nobody really noted the interactive chart posted here a while ago from "Scientific American"

showing only 19 to 20 years of easily mined silver and gold left in the ground.

The elders here will attest that you can "Rip VanWinkle" 20 years away in a heartbeat. Even if this architectural, playing card Taj Mahal manages to stay upright for a few more years, buying PM's should ensure that your ancestors will be bringing frankincense and myrrh to your shrine for eons.


Threeggg's picture

Knocked back down to where it started.

in a very few minutes I might add.

Bodes very well for this weeks expiry.

=1274  Gold Bitchez

Hulk's picture

Manipulation, Bitchez!

Snidley Whipsnae's picture

It's 2:10am gold = 1283, silver you know where your PMs are?

IQ 145's picture

 Yes, they'in a nice quiet basement of a financial institution in a medium sized country with a wonderful tradition of bank secrecy; in the care of a nice family of bankers who've been bankers for generations and have no desire to be criminals.

DosZap's picture

Clue us in, that used to be the more.

IrrationalMan's picture

I wish that for the decade returns he would not compare spot prices between the dates for gold and silver and price levels of the indexes.

The metals have a cost of carry and the indexes have a dividend return.  The gold investment would have to have decuctions for the cost of storing and insuring etc, while the stock market would need to be adjusted for dividends etc. 

I am not saying that Gold has not outperformed paper assets, but comparisons should be fair at least. 

Oracle of Kypseli's picture


You can not compare gold with the stock market. Gold is wealth preservation and the other one is investment on potential growth.

When governments are behaving responsibly, you do want to allocate more on growth stocks and less on wealth preservation.

Obviously, this is not the case. Europe, Japan, America are on steroids printing paper money and are racing to deflate their currencies.

if it all blows, people's 401k index fund will be worth less than an oz of gold. 

rocker's picture

Well Now, Bloomberg ironically is having fun talking about which currency is going down the most.

Hmmmm, must me something to come about this Major debasement of fiat money.

DoChenRollingBearing's picture

Oracle, one day I have to talk with you about farmland in Peru.  For now I am OK with gold.

Next time you are in in Lima visit our bearing company at Av. Benavides 5495 (Surco).

Bearings = Steel Gold!

Snidley Whipsnae's picture

Precisely correct, I have been accumulating AU/AG since 1968. Price to store is negligible. It is like storing an insurance policy. One needs a safe place to store so that policy will not go up in a home fire, tornado, etc...same applies to gold/silver.

One also needs to store enough fiat so that one is not force out of PM positions...but, not too much. A couple of years worth of paper. Don't trust the FDIC to make good on claims to bank deposits...they are broke.

cossack55's picture

Storage is 4" ID PVC and insurance is multiple weapons and booby traps.  Enter at YOUR own risk.  Paper gold my ass.

Misstrial's picture

Don't forget to have some coins to give in case anyone comes to the door:

(...take note of the Liberty center-front...)

Misstrial's picture

I'm staying away from dividend stocks - reason being that if the companies reduce or can't pay the dividends, the stock price is knocked down at the knees.

Further, the only thing that can stabilize dividend paying investments is a recovery of some kind. If there's no recovery, then more stock offerings will have their dividends cut.

imo, we are faaaar away from a recovery and at the very best, we're looking at years of deflation/inflation which is not good for profits or dividends.


watchingdogma's picture

You forgot to adjust the indexes for the companies in them that went bankrupt (GM, AIG) or were replaced because of stock price loss (C).  I can't remember the last time Silver was worth nothing because it went into bankruptcy.

Most stock pushers seem to conviently forget this tidbit.

GoldSilverDoc's picture

"The metals have a cost of carry" - this is akin to saying that a tax cut "costs the government money".  

Miss Expectations's picture

SPEAKER PELOSI: Well, what I say is what I've said all along. The tax cuts at the high end have not produced any jobs.  They've only increased the deficit.

Something Wicked This Way Comes's picture

Always some minor hairsplitting...this is the guy who whines because his sister got the grape popsickle and he got the orange one. We should compare the grape v the grape and the orange v the orange. Yawn.

Supernova bitchez! I've been buying my gold in the smaller ingot size. The tradeable size. The dealer I work with says buyers outnumber sellers 97-3.


CashCowEquity's picture

Do you mean 0.25oz and 0.50 oz coins?

or the 0.10 oz coins

Misstrial's picture

No, he's referring to the Suisse PAMPs.

2.5/5.0/10/100-gram size. Very small ingots with assay certificate.


silvertrain's picture

 The higher Gold goes the better those fractionals look..Even the 1 grams are great for trade etc..And at $50 or so right now virtually anyone can play the physical PM game..

Snidley Whipsnae's picture

I buy the 'monster boxes' of US 1oz silver coins. 500 of them take up little space. They come in plastic tubes and all tubes in one plastic box. Very good feel when lifted. Very good feel in the hands. Also have a bunch of old walking liberty halves, mercury dimes. No doubt about what they are, even to someone that has never hefted them before.

Bearster's picture

In times of crisis, it is the bid that disappears but the offer is always there (flash crash, c.f.)

The gold bid for paper dollars will be withdrawn at some point, which is a point the author makes very well.

Snidley Whipsnae's picture

Permanent backwardation! It's coming.

geopol's picture

1/10 Gold eagles by the ton

Hulk's picture

You must get paid by the word!

Hulk's picture

You most definitely should! Your many words have edumacated me greatly!!!

rwe2late's picture

 Article needs to embrace a more global perspective.

 Globally, the fiat dollar reserve status serves as the medium in a brutal extortion racket.

 Dollars are required to obtain commodities, particularly oil. The extraction and marketing of petroleum must be controlled to enforce that requirement. The global Pentagon acts as the paid enforcer for a cabal of international financial and war industry corporations. Subservient Mideast despots and sheikhdoms have to be militarily protected, and recalcitrant governments (Iran, Iraq, Venezuela) that would abandon the petrodollar are thwarted.

Meanwhile the US may endlessly exchange its fiat currency for the products of the world, and devalue the worth of foreign dollar holdings by endless printing and rising commodity (oil) prices.

The dollar is backed by guns and oil - some would dare call it empire.

Hulk's picture

It is an empire, but just like its infrastructure, its crumbling...

rwe2late's picture


the two co-dependent addicts will probably hold on to one another to the very end.

 The military machine needs the unlimited credit fiat funding only the Fed Reserve system can provide.

 And the Fed Reserve system needs the global military in order to sustain its dominance over the international flow of funds. 

minus dog's picture

"The military machine needs the unlimited credit fiat funding only the Fed Reserve system can provide."

Until it doesn't.  Money isn't the only way to get things done - nor is it the oldest.  Don't forget that.