Don Coxe Dissects Gold, As "The Oldest-Established Store Of Value Moves To Center Stage"

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Sun, 06/20/2010 - 22:58 | 424377 DoChenRollingBearing
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Anyone with wealth who does not have any gold should start buying gold & silver immediately.

Diversification and insurance all wrapped up into one nice package.  So simple.

Mon, 06/21/2010 - 04:47 | 424670 justbuygold
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I continue to buy as much of Central Fund's  Silver Bullion Trust   ( SBT.un on Toronto Stock exchange) as I can get my hands on.   Right now it is trading slightly below its NAV which is a steal compared to the normal 10% premium.

Sun, 06/20/2010 - 23:06 | 424391 nuinut
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How Can We Possibly Calculate the Future Value of ... Gold?

Stocks to Flow ratio.

The fact gold has no utility is its utility.

Sun, 06/20/2010 - 23:12 | 424402 Gold...Bitches
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actually, it has many utilities... just no economic ones at anywhere near the current price.  Thats another indication that its not anywhere near to being a commodity, like say copper, or nickel, or uranium.

Sun, 06/20/2010 - 23:46 | 424451 dnarby
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So howcome you get to embed links in text and I don't? >: /

Mon, 06/21/2010 - 00:02 | 424473 nuinut
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HTML. Use disable rich-text link below comment box.

Anyone can use it.

Mon, 06/21/2010 - 02:05 | 424599 thisandthat
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c&p

Sun, 06/20/2010 - 23:54 | 424463 sheeple
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FOFOA always have interesting articles on gold

Sun, 06/20/2010 - 23:14 | 424407 M31Capital
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Thanks DoChen for the timely advice.  

Sun, 06/20/2010 - 23:52 | 424457 DoChenRollingBearing
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M31, since my Sarcasm Detection Meter doesn't even work, I say:

Thank you for the kind words.

Even though worthies beyond me have been howling at the winds saying the same...

I completely agree with the highly esteemed Gordon_Gekko that time is short, buy physical gold now.

 

Sun, 06/20/2010 - 23:16 | 424410 QuantumCat
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The masses are almost always wrong, and we would be wrong at looking at a snapshot of public reaction to debt crises.  The lessons they learn are generally applied at the wrong time.  Gold is making new highs, yes, but the momentum is waning at all degrees... from 1 min to monthly. I think we will see at least a multi-year correction during deflation and the average opinion on the matter, almost by definition, is sure to get it wrong. 

Sun, 06/20/2010 - 23:37 | 424438 Implicit simplicit
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The masses are not buying gold. ZH population is an outlier to the general population.

Sun, 06/20/2010 - 23:56 | 424468 DoChenRollingBearing
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Quantum, I quite agree with Implicit.

I only know two (2) people who have physical, non-jewelry gold.

I think that we are still in the early innings.  And if things go really bad ("TSHTF"), gold may be a life saver.

Mon, 06/21/2010 - 08:12 | 424745 goldfish1
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In your opinion, how great of an outlier?

Mon, 06/21/2010 - 11:08 | 424939 Blindweb
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An outlier in the financially educated space alone.  Then determine what percent of the population is financially educated. 

Mon, 06/21/2010 - 00:21 | 424494 technovelist
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The masses are almost always wrong

Let us know when "the masses" have 10% of their assets in gold. Oh, they don't have any significant assets? Hmm, that is a quandary...

Not really, of course: those who don't have any significant assets don't have any significant effect on prices. However, those with significant assets also don't have any meaningful amount of gold; there isn't enough gold in the world for that... at these prices.

Mon, 06/21/2010 - 00:29 | 424513 Quinvarius
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Is that the latest anti-gold idiocy?  Failing momentum?  That doesn't even make any sense.  Doesn't that imply that it is moving on something other than momentum?  Wouldn't that be a good thing?  Maybe you should try more critical analysis and less parroting someone else's discredited arguments from 2 months ago.

Mon, 06/21/2010 - 01:11 | 424558 QuantumCat
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For example, RSI... market tops are generally built on waning momentum.  If you don't know I'm talking about, then you are making a great counter point to Implicit Simplicit's proposition.  Your position on Gold seems to be quite emotional... I challenge you to consider the implication's of that.

Mon, 06/21/2010 - 02:21 | 424611 JLee2027
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God told me to buy silver.  Was that based on emotion too?

Mon, 06/21/2010 - 06:07 | 424693 Anton LaVey
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No, if a chunk of metal "told you" to buy other chunks of metal, it means it's time to get your head examined...

Bada-Bing! Thank you, I'll be here all week! Do tip your waitress!

(Sorry, could not resist - and I agree with you, Gold and Silver are your best friends right now)

Mon, 06/21/2010 - 07:56 | 424724 FrankIvy
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Anton, you're going to have to find another venue.  You wrote - "No, if a chunk of metal "told you" to buy other chunks of metal, it means it's time to get your head examined..."

 

Re-read his post.  He said GOD told him to buy silver.

 

Of course, maybe Gold is God.

Mon, 06/21/2010 - 08:13 | 424748 Anton LaVey
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Ah, yes, I knew I needed to clean up my glasses this morning...

On the other hand, if "GOD" told him to buy Silver, it is definitely time to get that gentleman's head examined.

Last thing I noticed is that Deities are not really big on investment advice for the punters.

Mon, 06/21/2010 - 12:52 | 425105 JLee2027
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Wrong!!  The Bible is filled with investment advice. Hundreds of passages.  The only real money is Gold and Silver, paper money is an abomination. God owns all the Gold and Silver, we are the authorized custodians. 

"The silver is mine and the gold is mine," declares the LORD Almighty (Haggai 2:8).

 

Deuteronomy 25:13-15 (ethical business dealings)

You shall not have in your bag differing weights, a large and a small. You shall not have in your house differing measures, a large and a small. You shall have a full and just weight; you shall have a full and just measure, that your days may be prolonged in the land which the LORD your God gives you.

Tue, 06/22/2010 - 07:15 | 426416 Anton LaVey
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Ah yes, indeed.

On the other hand, have you ever read the following?

Then he said to them, "Watch out! Be on your guard against all kinds of greed; a man's life does not consist in the abundance of his possessions. (Luke 12:15)

Or maybe this?

Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. (1st Timothy 6:17)

I rest my case, your honor.

Mon, 06/21/2010 - 09:39 | 424837 Treeplanter
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If we are seeing a market top, it is likely very temporary.  The central banks are trying to smack the metals down right now.  If they can, we get a buying dip.  The growing problems with supply are going to join up with increasing demand.  I'm the only one I know buying gold and silver.  Wait til Sarah Palin's facebook page discusses the advantages of having a stash of real money...  Money and emotion are old friends, we do get carried away.

Mon, 06/21/2010 - 01:12 | 424551 QuantumCat
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Gentlemen,

Perhaps we are only in the first inning of this gold bull market, and only ZH and moneyed individuals are participating, but I think we are near the end of it.  This "inning" has lasted nearly ten years, and unless you are linearist, markets work in cycles.  Gold commercials currently dominate FOX "Buy your gold where I buy mine... Rosland Capital (G Gordon Liddy)", and quite a few non-financial market types have liquidated their assets in exchange for gold. Perhaps gold will go to $10,000, but timing is the bitch.  What was your stance on the dollar last year, out of curiosity?  Just asking...

Mon, 06/21/2010 - 01:42 | 424582 Apostate
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I agree that there is an extremely remote possibility that gold will decline in price in dollar terms, but you're incorrect that all assets move in cycles.

Fiat currencies - like companies - often go to zero.

In fact, just about every company in history has gone to zero. Every fiat currency except the ones currently in circulation have also eventually gone to zero.

In gold terms, the megatrend in the dollar is overwhelmingly towards zero. 

Mon, 06/21/2010 - 02:12 | 424605 DoChenRollingBearing
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Apostate, you too are a marvel to ZH!

Long may you write!

+ 10,000

Mon, 06/21/2010 - 02:28 | 424619 Apostate
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It's an honor to write beside you.

Mon, 06/21/2010 - 02:16 | 424606 DoChenRollingBearing
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Dupe post sorry

Mon, 06/21/2010 - 02:15 | 424609 DoChenRollingBearing
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Dupe post sorry

Mon, 06/21/2010 - 02:48 | 424628 PhattyBuoy
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..

Sun, 06/20/2010 - 23:16 | 424411 lawrence1
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Good article, and I would recommend reading fofoa to better understand gold and its place in the world and what may well happen. And I would welcome reading any critique of fofoa's viewpoint.

Sun, 06/20/2010 - 23:37 | 424434 nuinut
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A discussion about that here: www.zerohedge.com/forum/freegold

Sun, 06/20/2010 - 23:40 | 424442 Ragnarok
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Same.  I asked for critiques of fofoa'sviewpoint a while back as well, and what people disagreed with was what happens after the fiat collapse.  Will "Freegold" manifest itself or will gov't/bankers become aggressive?

Sun, 06/20/2010 - 23:56 | 424467 nuinut
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There are no critiques that hold water. I've looked, and asked, and only ever found the same old tired BS that gets wheeled out by occasional commenters here, ie. "you can't eat it", "it has no utility", "my dog ate my homework", etc etc.

The only people I see debating it are the ones who don't understand it, whilst thinking they do.

The latest post, linked in my first comment above, should put the nail in the coffin.

FOFOA said:

With each pass-through of the dollar more "flow gold" is moved into "stock gold", not the other way around like commodities and paper.

That statement explains one hell of a lot, but the real problem with peoples understanding is this:

Another said:

Your past holds little of knowing value outside of currencies, this does block the good view!

Mon, 06/21/2010 - 00:23 | 424499 Shameful
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FOFOA seems to think that our govs will encourage it's citizens to hold wealth in gold. Holding wealth in something like gold could be a great idea for the citizens but that removes the govs ability to loot savings via inflation.  Now it should be clear to anyone that the state particular in the US only exists to pillage the public.  This is the first goal of all governments, to provide for the care and well being of it's political elite and bureaucrats. Sure he might be right and the value may go to the moon, but I expect Uncle Sugar to eye it greedily. After all Uncle Sugar is willing to kick on capital, wage, and price controls as history shows. Does anyone think that the IMFS$ system will crash and Uncle Sugar will just kick back and say "You gold bugs got it right! I like you guys so I won't try to come after you"?

Now if FOFOA is right and we do see Freegold, then it seems to me that anyone with any significant gold holdings would be well served by hitting the bricks and fleeing the epic center of the IMFS$ collapse.  Now I don't expect confiscation but I do expect a mighty tax.  Uncle Sugar will demand his piece of the action, he always does.

I like reading FOFOA and hell he could be right, but Uncle Sugar is not letting a looting opportunity pass him by.  Particularly when it would be so easy to rally the populace for a gold tax to attack those evil "speculators"

Mon, 06/21/2010 - 02:04 | 424559 nuinut
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Shameful, nice to see you back.

This comment: #12, in the ZH Freegold forum, addresses your point about Uncle Sugar wanting his cut. There is a lot more to say on that front, but that comment sums up my take on it.

I think Uncle Sugar, and the $IMFS, is coming under real pressure at this time.

 

Mon, 06/21/2010 - 07:19 | 424706 Übermensch
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That is correct. To few people in the US own gold for there to be an uprising for the draconian policies the government will start implementing against gold holders.

Sun, 06/20/2010 - 23:55 | 424466 sheeple
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+1

'Reflection' is a great article [recent] from FOFOA

Mon, 06/21/2010 - 00:08 | 424483 DoChenRollingBearing
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It is really hard to predict the future, so I go with what is cautious and makes sense to me.

FOFOA's writing is dense but has the ring of truth to me.

...

If FOFOA's prediction of $55,000 / oz (2009 non-hyperinflated $) comes true, I win the Lotto!

But, Chumbawamba, at 110% all-in-gold will win the POWERBALL and be the Alpha-Male around here.  Comely virgins will knock at his castle gates...

So if that comes to pass, go ask Chumba for a loan and not me!

Sun, 06/20/2010 - 23:24 | 424414 Gubbmint Cheese
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Read Lewis' "The Big Short" over the weekend. Whether you liked the book or not, I (for one) loved Eisman's approach to traders when he'd ask, "so how are you going to f*ck me?". So as we process these bailouts and read about the steps the govt is taking to 'save the system' - I hope more people ask:

"okay, so let's say I help you save this system.. how are you going to f*ck me?"

edit: that's totally rhetorial btw.. ;p

 

Sun, 06/20/2010 - 23:29 | 424424 Implicit simplicit
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Great book. Finished it a couple of weeks ago. A good story with a nice educational message regarding the crookedness of wall st..

Sun, 06/20/2010 - 23:33 | 424432 Implicit simplicit
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Many people who don't like gold still believe that everything is going to be fine with the economy and the stock market. It's sad really.

Mon, 06/21/2010 - 02:52 | 424630 PhattyBuoy
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... yep, and tragically, with their life savings trapped in a 401K.

Mon, 06/21/2010 - 07:49 | 424722 FrankIvy
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Well this is it, really.

For most of the anti-gold folks out there, it's really just a question of not agreeing/seeing/believing that the end is nigh.  If I thought that we were "pulling out" of the "recession," for example, and I thought it would soon (read - within a few years) be BAU, then I'd certainly sell gold right now and take my 300% profit. 

It's like this - if they're right about their fundamental premise, then they're right about their fundamental conclusion.

Of course, IMO, their premise is wrong.  The end is nigh.

Sun, 06/20/2010 - 23:53 | 424460 sheeple
sheeple's picture

Whoa BEEM-MO is actually circulating a constructive article ... nice post ZH!

Mon, 06/21/2010 - 00:46 | 424528 Spitzer
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nothing wrong with BMO.

I have noticed more gold bugs saying that you can get rich by buying gold and gold stocks now, for a while they just said to have 20% or so as insurance.

I never liked the insurance dribble, fortunes will be made in gold over the next few years.

 

Mon, 06/21/2010 - 09:48 | 424846 Treeplanter
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You nailed it, Spitzer.  I have everything I own in gold, silver, and the miners.  I see low risk combined with once in a lifetime gains.  Yesterday I sent my family an email discussing the coming short squeeze, that time is running out to get in at a decent price.  No interest, other than calling me Goldie.  Kids! whatsamattawitkidstoday...   

Mon, 06/21/2010 - 00:52 | 424538 strannick
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Dang that was good.

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