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The Definitive Guide On Physical Gold
It has been a while since we published Passport Capital's exhaustive report on gold. Now that the LBMA's favorite chemical element is once again as notorious as ever, it is time readers again refamiliarized themselves with this definitive guide not only on the pros and cons of owning the shiny metal, but the history of gold through the ages, and why, as John Exter famous Pyramid correctly predicted long ago, when the Kondratieff winter's Minsky moment approaches, physical gold will be all that's left. This is not a gold sales pitch: it is an analysis that everyone who is concerned about the fate of fiat currency should read.
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People have very short memory, just years ago, everybody thinks house will not only keep value but also will appreciate for long run. Now everybody think Gold will do the same. Be honest with you, today someone can sell you Gold still underground or worse someone can sell trash for big profit. You can not trust any kind of value keeping investment these days, the only investment you shall alway have is: Buy when everybody want to sell, Sell when everybody want to buy.
you are wrong
allot of people where barish on houses in early 2000. My dad was , so was Bill Flekinstine.
Boeing, you forget to take into account the kind of people with those opinions. Back then the shoeshine kid was telling you to get into real estate or miss your chance at riches. Today the proverbial shoeshine kid says and knows nothing of gold. Until my idiot coworkers (my shoeshine kids...) start asking me/telling me about gold & silver I am a buyer.
trouble with gold is,
the average american is armed to the teeth
but only about as smart as bread.
the first time you try to trade for something
after the currency collapses, word goes out on the street that you have more, and your house will be the first one raided.
Best place to store your excess wealth is in your neighbor's belly, really.
Fantasy: Why own anything!? It will just be stolen!
Reality: Most people don't steal. Even fewer people steal from armed people. If you have enough gold/silver to steal, you probably have weapons. If the currency collapses, more than likely there will be a LOT of gold and silver that comes into circulation, and quickly. They are just being hoarded now, because their value isn't recognized.
Keep your "everyone" to yourself-- who are you to speak for each and every soul out there in the big bad world? Stop projecting, and stop the pretension.
Even your advice is sophomoric tripe that amounts to a giant Captain Obvious "Duh!" What part of "timing is everything" do you fail to understand? Maybe you can put your dubious honor on the line and provide us with the critical "when"?
I just thought of a word for Bernanke, this morning. I was struck by the ancient use of the word economy which was to save, to economize. In my quote book it’s used in the classic term, i.e., the classic term that you made do – the careful, thrifty management of resources, such as money, materials, or labor:
That means that Bernanke is the Anti-economist, i.e., he’s anti -economy, if you use the classic term.
George Bernard Shaw: Economy is the art of making the most of life. The love of economy is the root of all virtue.
The handiwork of the Anti-economist is evident is this excerpt from Waiting for inflation? It's already here (Minyanville) by Robert Barone, referenced today by Zero Hedge
Artificially Low Interest Rates: In the US, we have a rapidly aging population. Many of these baby boomers are at or near retirement age. As they have aged, many have shifted a larger portion of their liquid assets into fixed-income securities. It's also true that many of the ultra-wealthy, having already made their fortunes, have a significant portion of their assets tied up in fixed income. Comparing today's yield curves with the yield curve of 2007 makes it clear that fixed-income investors are taking a haircut on yield. Three years ago, a bond portfolio of similar duration would have earned an investor between two and 4.5 percentage points more in interest return. On a million dollars, today's fixed-income investors are earning $20,000 to $45,000 less per year, pretax. For many fixed-income investors, this has meant a 40%-75% reduction in income, depending on the duration of the portfolio. A similar reduction in income can be seen for corporate bonds. This represents a significant fall in consumer income. With the price indexes continuing to rise (although slowly), living standards have been impacted, and, as a result, these segments have endured the equivalent of a virulent inflation.
It's clear that the Shadow Bailout (artificially low interest rates) has helped the banks repair their toxic balance sheets. It's also clear that the manipulation of interest rates through the Fed Funds rate, the provision of near zero rate loans by the Fed to the large banks, and the resulting near zero deposit rates to consumers has drastically lowered the incomes, and hence purchasing power, of a large portion of American savers. These reduced rates have also lowered the returns of pensions and endowments, further exacerbating their funding gaps, and putting future payouts in serious jeopardy. It's a tragedy that many hard-working, trusting Americans will be forced to face a future with lower incomes and less purchasing power, which will reduce consumption, the bedrock of American GDP. Lower incomes for the wealthy will also leave less money for investment (as will high taxes, currency issues, and regulation), helping to ensure slower economic growth.
well i will just kill myself, if i ever have to be poor.
Velo,
That's no option, poor, is one thing..........destitute is another.
Hang in there velo. Never give up. We're on your team (most of us anyway)!
well i will just kill myself, if i ever have to be poor.
Velobabe, If you promise to wear that shirt, or one like it every day, you can come stay with me when everything falls apart :D
What is the original date of that report? Based on the TD intro to it it sounds like an older report but I don't see a date on it.
My guess is end of Q2 2009.
None of the included charts go beyond 2008. There is also a reference to China's announcement in April 2009 regarding the increase in gold reserves to 1,054 tonnes.
All in all, it's a well written piece that can be printed and given to your clueless friends. I suspect that most ZH readers will find nothing in this report that they don't already know.
this is a keeper article ! i've sent it to all my friends & it's now forever bookmarked in my favorites !
They can only control the price of gold in the main markets.
The Arabic, Indian, Chinese, Jewish, Christian and Agnostic peoples who don't trust the currency paper any more once the dollar starts to melt, will demand gold -at any price.
Gold is the last, safe bastion of wealth. Just ignore any short-term pricing wobbles and trust your instincts. (Productive land is No. 2, Slaves is No.3, but unfortunately -if we do nothing about all this- most of us are going to be slaves.)
Lame ancient history lesson on gold. More like story telling. Has no clue about the technology, crafting, and architecture of the ancients.
Anyone who thinks gold's use as an industrial metal has been merely for jewelry (instead) is just regurgitating what's they've heard so many times it must be true. Jewelry is more like the middle ground between storing gold or using it up in industry where it can't be recycled, save for only the most worthy projects.
The rest was good though.
Why do most gold bugs hate gold so much? They love the mythology, but deny the reasons behind it.
People look at say oil reserves and think how sweet it is store something that can be used in the future. No one looks at gold, at all the stored gold around the world, and thinks about the wondrous future of metals and technology and how gold can be used for worthy projects, made worthy by the price of gold.
No offense, but are you on drugs!
Why do most gold bugs hate gold so much?
Gold bugs DON'T HATE GOLD; they would defend it with their last breath.
And stand by it for years........good or bad!
Boy you can sure tell it's Friday. I'll pass this along for what it's worth as I've received so much good information from this site over the last year. I've been picking up $1000 worth of half dollars each week from the bank and looking through them on Friday nights with the wife and our granddaughter. Tally for the last 3 weeks: 22 silver halves and 26 40% silver halves. Included in the silver halves are 4 Walking Liberties, 5 Franklins, a 1968-s and a silver 1976. Just for fun, we put together a complete set of Kennedys, sans proofs and 1970-d. All in good fun, I have my gold, might as well exchange my paper for silver while I still have the opportunity.
Now that's a nice little hobby.
It better be a hobby! Cause it sure ain't no way to make a living.
When I buy silver coins I use my digital scale and pay by weight plus some premium for the type-coin collectability. If I searched for every die variety and mint mark I'd be dead in the water. It takes a minute or more to look at a coin with a 10X magnifier and there is just not enough time to search $100 face in Mercury dimes (winged liberty).
Agree, a hobby, not going to quit my day job, just like the garden, it's not for profit just for fun. In my younger days, Friday nights were spent at the bar, when the kids came along Friday night was family night, now our daughter gets to go out while we watch the granddaughter on the weekends. How times have changed but it's all good. The term "collections" was meant to describe the coins in the bank's vaults as compared to an actual collector's collection. Going through the coins by date was just to pass the time.
Have fun with it. Numismatics can be a great way to educate the youth on history and other fine social elements. There is a fella who does a regular column in Coin World called "Found in Rolls". He has discovered some amazing things in coin rolls.
dup post sorry.
So ur sayin the banks have actual silver in their half-dollar collections?
46 out of 6000... 0.77% of half dollar coins in the bank are at least part silver.
Yes, banks still have silver in their collections. The logic I used was that dimes and quarters circulate in our daily change, so the silver ones are spotted and taken. Half dollars on the other hand, do not readily circulate so they tend sit in the bank vaults waiting for someone to scoop the silver ones. Some readers have mentioned that they can't afford gold and this is an affordable way to pick up silver. I could see Chumbawamba doing this on a Friday afternoon at 4:20, laughing heartily with every score.
+ $18 Chumba looking for silver coins. The funny part is that it IS possible!
Hope he would be sipping on a beer to make the experience even better.
What do you mean by "collections"? Banks get rolls of quarters, dimes, and halves as a normal business transaction. Many of them home-rolled and include silver coins. I might look at the edge of a roll of any reeded coin to see if there are any not "sandwiched" but don't search by dates or mint marks. Too tedious and there is no payoff in the time spent.
Yes. Not uncommon to see a silver coin or two amongst a box of coins from the bank (at least in Seattle). A 25 roll box of quarters used to get you at least a couple dollars (face) in silver qtrs. That was in the 90's period. Used to run a store and so I went through loooots of qtr rolls. Saved every silver one I came across. Got a nice size pail/tub of them from over the years. Of course, silver was in the low single digits back then so they were worth less than a buck each in silver value per.
If tptb want to attack gold, could they not come up with some vat type sales tax on the sale/purchase of gold? Would drive it underground but would allow them to assure the masses everything is ok.
I ask only because some think tptb might try to confiscate gold or force redemption at some point to prop up fiat currency.
Seems taxing it would appear less fascist to the masses then trying to confiscate it or force redemption.
You just drive up to Canada and sell it there if you own it.
or you find another individual that wants it and you trade straight up with that person that has something you want - no tax.
"If tptb want to attack gold, could they not come up with some vat type sales tax on the sale/purchase of gold?"
Do you believe that TPTB are not buying gold? A tax on gold would be a tax on small holder and TPTB...They certainly do not want that...Of course they could exempt themselves from a gold tax but they cannot exempt themselves from the backlash that would unleash.
"If you don't trust Gold, do you trust the logic of taking a beautiful pine tree, worth about $4,000 - $5,000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it one billion dollars?"
4K-5K...Is that what a tree is worth now? Reminds me of Kerry sparring with Bush during the debates, when John said Bush owned a timber company he wasn't disclosing. Bush tactfully replied "Wanna buy some wood?" Classic dubya
yeah...who doesn't miss ole shrub now, huh?
It was good seeing a President who KNEW he was flat out in way over his head instead of a pathological bullshitter.
Ron Paul during committe asking for a consideration for stronger Fed audit:
http://www.youtube.com/watch?v=RFQHWooDURw
Fwank is so passive aggressive it is ridiculous.
Fwank is the Johnny Bravo of Congress.
"Fwank is the Johnny Bravo of Congress."
LOL...JB is just your average fiat crank...whereas Fwank is a very dangerous qwank.
Bearish Schultz say hyperinflation may happen suddenly by Peter Brimelow | MarketWatch | June 10, 2010
Commentary: Crash-predicting letter says recovery might not come until 2028
NEW YORK (MarketWatch) -- Stocks continue to flounder. A remarkable veteran editor says get used to it.
Harry Schultz' International Harry Schultz Letter was one of 2009's top 10 performers because it ran with the rally. ( See Dec. 28, 2009, column.) And I named it Letter of the Year for 2008 because it undeniably did predict the crash, although by Hulbert Financial Digest count it didn't benefit, for various technical reasons. ( See Dec. 28, 2008, column.)
Despite 2008, IHSL's longer-term record remains strong. Over the past five years, the letter has achieved an 11.39% annualized gain, vs. 1.02% annualized for the dividend-reinvested Wilshire 5000 Total Stock Market Index. Over the past 10 years, it has achieved a 6.12% annualized gain, vs. 0.22% annualized for the total return Wilshire.
Schultz specialized in grand theorizing, and his current Big Idea, based on pure intuition as far as I can see, is that stocks and the economy will head down, then up, in two 10-years swings, complicated by counter-trend rallies like that of 2009-10.
He writes in his most recent issue: "Remember my now-classic 20-year multi-faceted buying power 'V' formation? It's proven its worth so far. It's most unlikely to be totally prescient, but may be largely correct. Some thought, briefly, after the recent 12-month stock market rally and a few green shoots, that the 'V' would be broken. But things have returned to the pattern as so many events have occurred (including Greek financial explosion) -- which signal a fresh downtrend all round. Theoretically, not until 2017-2018 does the downward part of my 'V' end, and begin a positive, upbeat 10-year uptrend working back to where we were in 2007 ... reaching that level in 2028. We'll see. At least, you'll see. Maybe not me."
(After many years of being secretive about his age, Schultz has begun to complain loudly that he is "86.9." His dramatic prediction reminds me of an earlier "Market Methuselah," Edson Gould, who famously called the 1980s bull market which occurred long after his death.)
As 2009 showed, Schultz is capable of great tactical flexibility. But right now, all his flexibility appears bearish.
He comments: "Red alert if the S&P500 breaks below 1,035." (It closed Wednesday night at 1,056). On gold, he writes: "I said the next target will be $1,400. I'll stay with that forecast." Schultz says his eventual gold target is $6,000 -- the highest I've seen him mention.
One reason for Shultz' skittishness: what he sees as the extraordinary precariousness of the world financial system.
He writes: "We (collectively) are poised at a heart-stopping moment in economic times. On the one extreme side, the world is on the edge of massive deflation and depression. At the other extreme ... hyperinflation. My view is: Both these extremes are possible. Certainly deflation is, on balance, in play today and gaining ground as money supply is actually declining! Hyperinflation seems impossible when there is not much inflation in most economies. But ... hyperinflation is a monetary event, not an economic one, and will happen on an overnight basis, not via a general uptrend in inflation data."
Overnight?
Schultz added this late comment: "Meantime, as I write, gold is holding very near its high, as most stock markets are bungee jumping. This implies the unexpected hyper is pending, because if it were exclusively deflation ahead, gold action would be less buoyant.'
Schultz currently recommended asset allocation:
· 30-40% government notes/bills/bonds
· 8-10% stocks (non-golds)
· 10-15% commodities
· 40-50% gold stocks and bullion
· 0-5% bear stock-market protection via inverse exchange-traded funds
http://www.marketwatch.com/story/hyperinflation-could-happen-suddenly-20...
So, is it now true that Israel’s blockade of Gaza is an economic story? Writes Sheera Frenkel for McClathchy Newspapers:
JERUSALEM (Jun 9, 2010) — As Israel ordered a slight easing of its blockade of the Gaza Strip Wednesday, McClatchy obtained an Israeli government document that describes the blockade not as a security measure but as "economic warfare" against the Islamist group Hamas, which rules the Palestinian territory.
Israel imposed severe restrictions on Gaza in June 2007, after Hamas won elections and took control of the coastal enclave after winning elections there the previous year, and the government has long said that the aim of the blockade is to stem the flow of weapons to militants in Gaza.
Last week, after Israeli commandos killed nine volunteers on a Turkish-organized Gaza aid flotilla, Israel again said its aim was to stop the flow of terrorist arms into Gaza.
However, in response to a lawsuit by Gisha, an Israeli human rights group, the Israeli government explained the blockade as an exercise of the right of economic warfare.
"A country has the right to decide that it chooses not to engage in economic relations or to give economic assistance to the other party to the conflict, or that it wishes to operate using 'economic warfare,'" the government said.
McClatchy obtained the government's written statement from Gisha, the Legal Center for Freedom of Movement, which sued the government for information about the blockade. The Israeli high court upheld the suit, and the government delivered its statement earlier this year.
Sari Bashi, the director of Gisha, said the documents prove that Israel isn't imposing its blockade for its stated reasons, but rather as collective punishment for the Palestinian population of Gaza. Gisha focuses on Palestinian rights.
(A State Department spokesman, who wasn't authorized to speak for the record, said he hadn't seen the documents in question.)
The Israeli government took an additional step Wednesday and said the economic warfare is intended to achieve a political goal. A government spokesman, who couldn't be named as a matter of policy, told McClatchy that authorities will continue to ease the blockade but "could not lift the embargo altogether as long as Hamas remains in control" of Gaza. …
Read more: http://www.mcclatchydc.com/2010/06/09/95621/israeli-document-gaza-blockade.html#ixzz0qZU98ClU
They are easing the embargo and allowing a few more items to go through due to the bad international publicity.
The list, announced Wednesday, includes soda, juice, jam, shaving cream, potato chips, cookies, candy and a variety of herbs, including coriander.
I guess those potato chip bombs aren't so dangerous.
http://www.marketwatch.com/video/asset/digits-world-cup-kicks-off-espn-3-d-network-2010-06-10/679EBBB3-3609-4232-901B-0B1ADED64077
World Cup Kicks-Off ESPN 3-D Network
Be careful folks
http://blogs.forbes.com/docket/2010/06/10/sec-files-charges-over-300-mil...
Some short term good news for the gold bugs i guess.
http://www.msnbc.msn.com/id/21134540/vp/37624564#37624564
Thanks Tyler, you da man.
Hey Döden
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