Dylan Grice Discusses When To Take Profits On Gold: Hint - Not For A Long While

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Tue, 03/23/2010 - 09:47 | 273110 RobotTrader
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Saks upgraded by JP Morgan, stock has 43% of its float sold short, now the stock is up 6%...


Tue, 03/23/2010 - 09:52 | 273114 Cookie
Cookie's picture

'The age old question - is gold a currency.'

Spend any appreciable time in Asia and you know this question is irrelevant


Tue, 03/23/2010 - 10:07 | 273121 aurum
aurum's picture

Metals food guns ammo equals peace of mind.

Tue, 03/23/2010 - 10:15 | 273127 sweet ebony diamond
sweet ebony diamond's picture

i don't mean to be a party pooper.

i don't understand gold.

i can't eat it.


Tue, 03/23/2010 - 10:22 | 273133 Hulk
Hulk's picture

Go long sugar, in that case

Tue, 03/23/2010 - 10:24 | 273134 Cookie
Cookie's picture

I hope you enjoy greenbacks with ketchup

Tue, 03/23/2010 - 10:32 | 273147 ED
ED's picture

with tobacco?

Tue, 03/23/2010 - 10:43 | 273161 Dr. Richard Head
Dr. Richard Head's picture

Actually, I am growing my own tobacco here in Ohio.  It's a good medium of exchange with the local farmer's markets. 

And regarding not being able to eat gold, I would suggest that equities go very well with a nice Great Lakes wine.  The fruity taste of a Ferrante ice wine compliment the fruity action behind the scam of equities.  Mmmmm delicious.


Tue, 03/23/2010 - 10:47 | 273169 Hulk
Hulk's picture

I am planting tobacco this year for the very first time.(Va)

When do you plant and how do you deal with the very small seeds?

Tue, 03/23/2010 - 11:01 | 273184 Dr. Richard Head
Dr. Richard Head's picture

depending on where you live, seeds should be germinating in a small hot house right about now or very soon.  They take about 4 weeks to germinate and grow and can get big pretty quickly. Once the last frost makes it way through your area, acclimate them to the outdoors without the top of the hot house.  Plant after acclimated and fertilize with ash from a good fire (Federal Reserve Note work great, but I use the ashes from burnt decorative grasses as they are rich in Nitrogen).  Water regularly and the leaves are ready to pick when they start to yellow late in the fall. 

The seeds were a pain in the ass and I haven't found a good way to sow them without dumping dozens.  Make sure you sow your seeds on top of the soil and mist to water until they establish after growing. 

If all else fails, google "growing my own tobacco" and there should be loads of info. The smoke is a shitton better than this garbage they sell in pre-packaged cartons too. 


Tue, 03/23/2010 - 11:08 | 273194 Hulk
Hulk's picture

I'll be rolling cigars, so will be planting Connecticut shade too.

Watched plenty of harvesting and drying as a kid, just never experienced planting those small seeds.


Tue, 03/23/2010 - 11:15 | 273209 Dr. Richard Head
Dr. Richard Head's picture

No problem. Not only am I addicted to tobaccy, but this forum must have nicotine in it as well. 

Tue, 03/23/2010 - 11:52 | 273247 Hulk
Hulk's picture

The forum is addicting. Can't wait to try "organic" tobacco.

BTW, found a novel way to grow tomato plants from seed, which has always been my bugaboo. I just feed the chickens  tomatoes or mix the seed in with their feed, and then plant the chicken shit.

Fastest, healthiest tomato plants I have ever seen. The warm (108 degree) and moist interior of a chicken is perfect to sprout those seeds....self fertilizing too...no shit!

Tue, 03/23/2010 - 11:59 | 273254 Dr. Richard Head
Dr. Richard Head's picture

That is freaking awesome.  I wonder if there are hundreds of tips like this that have been washed away from our collective consciousness due to the fact that we Americans don't have to make much of anything other than fat and dead brain cells. 

Your tip just brightened the shit our of my day.  I have to tell me buddy who raises chickens about this.

Tue, 03/23/2010 - 12:18 | 273277 Hulk
Hulk's picture

Humankind has lost a ton of knowledge. Archimedes discovered and worked out integral calculus in 225 BC.He understood limits (as they apply to calculus). This knowledge was erased and replaced by religious writings and recovered by a project at Stanford.Had this knowledge of Integral Calculus not been erased, we would be living in an entirely different world, because the discovery of derivatives would be soon to follow.

Burning of the Library at Alexandria another big loss.

The chicken shit planting method was just an accidental discovery on my part. It made my day too! I will put a few tobacco seeds through a chicken and see how that goes....



Tue, 03/23/2010 - 13:42 | 273392 swmnguy
swmnguy's picture

Wow!  Planting chicken shit.  That's unbelievably awesome.  That rocks like a crazy rocking thing that rocks.  I love discoveries like this; it's what makes humans different from non-humans.  I need to figure out how to try this.  They're loosening chicken-raising rules in my area due to increased interest.  I've never gotten decent tomato plants from seed; this will be great.  Wait until Monsanto patents the digestive tract of a chicken; then we're screwed.

Tue, 03/23/2010 - 14:39 | 273452 Hulk
Hulk's picture

LOL, Monsanto is the devil, LOL

I could never get a tomato plant from seed, ever....

Greenest, thickest tomato plant leaves I have ever seen

Happy fucking chickens too...

Great garden fresh tomatoes

An all around winner...

Only downside is you will need to thin out the plants a bit..



Tue, 03/23/2010 - 16:25 | 273632 Hulk
Hulk's picture

Thanks, will read. you may enjoy:

Logsdon, living at nature's pace and contrary farmer

Anything from Joel Salatin

Malabar Farm by Louis Bromfield

The unsettling of America by Wendell Berry

The Good life by Helen and Scott Nearing

Amish living type books:

Better off: flipping the switch on Technology by Brende

   (brende, being a MIT grad, has an interesting perspective

    on Amish techniques)

Great possessions by David Klein


All most excellent books. Enjoy

Tue, 03/23/2010 - 10:37 | 273155 PierreLegrand
PierreLegrand's picture

It preserves your buying power. That is all. And thank goodness for that.

Tue, 03/23/2010 - 10:39 | 273158 Cognitive Dissonance
Cognitive Dissonance's picture

Then why do you understand greenbacks/FRNs?

They are both mediums of exchange and supposedly stores of value. One requires a huge effort to mine, refine and mint. The other is created by keystrokes on a computer. One is easy to debase, the other can't be debased without it being easily discerned. One has no intrinsic value other than the cost of paper/ink/keystrokes and the other contains the value of the labor needed to free it from the earth.

Tue, 03/23/2010 - 15:27 | 273509 nikku
nikku's picture

And you eat Federal Reserve Notes?  Or do you exchange them for things of value to you?... Just like gold?  Let me see, gold--6,000 years as a proven store of value or federal reseve notes--40 years since we totally left the gold standard, hmmm... which is a more dependable stor of value?  I guess maybe you need a higher degree of education, it is a very tough question.  Good news: That education's coming!

Tue, 03/23/2010 - 16:43 | 273675 swamp
swamp's picture

When was the last time you ate a dollar bill?

Tue, 03/23/2010 - 22:50 | 274022 Al Gorerhythm
Al Gorerhythm's picture

It all a dream Sweetness. Yawn, scratch you nether regions and go back to sleep

Tue, 03/23/2010 - 10:22 | 273132 Alex Lionson
Alex Lionson's picture

Guys you probably have noticed it long time ago, however I have realized it just right now – so FUNNY, take a closer look at Big Ben Shalom’s picture on the Time Magazine Cover – the letter “M” behind his head looks like two little horns :) He looks like he came from down under … :)

Tue, 03/23/2010 - 10:25 | 273136 Hulk
Hulk's picture

Bernanke is Australian???

Tue, 03/23/2010 - 10:26 | 273139 Alex Lionson
Alex Lionson's picture

Yeah, from Hell :)

Tue, 03/23/2010 - 10:25 | 273138 Cookie
Cookie's picture

Hey, that's an insult to Australia!!

Tue, 03/23/2010 - 10:24 | 273135 SWRichmond
SWRichmond's picture

"The reason I own gold is because I'm worried about the long-term solvency of developed market governments."

I really wish I could learn to be this succinct.

Tue, 03/23/2010 - 10:28 | 273141 Postal
Postal's picture

I really wish I could learn to be this succinct.

Indeed. Good thing I get paid this week: Need to buy more stuff. :)

Tue, 03/23/2010 - 10:43 | 273162 Hulk
Hulk's picture

I am putting that line to memory

Tue, 03/23/2010 - 11:35 | 273234 DoChenRollingBearing
DoChenRollingBearing's picture

Indeed SWR.  I should just memorize the sentence so that next time someone asks me why I like gold.

Tue, 03/23/2010 - 10:29 | 273143 sweet ebony diamond
sweet ebony diamond's picture

better find a good hiding place for it.


Tue, 03/23/2010 - 10:34 | 273149 Internet Tough Guy
Internet Tough Guy's picture

Mine was lost in a boating accident, along with my guns.

Tue, 03/23/2010 - 10:34 | 273151 dumpster
dumpster's picture

bull buskets .. twice your mouth opens,   each time the quality of brain cells goes down .

why dont the gold bashers know any thing but something they learned in a 3rd grade economics sing about ,


Tue, 03/23/2010 - 12:53 | 273345 A Nanny Moose
A Nanny Moose's picture


Anyone dumb enough to hand their gold over to the Fed. The govt did not come looking for it. People "voluntarily" complied.

In any case, there was always silver.

Tue, 03/23/2010 - 15:54 | 273557 WaterWings
WaterWings's picture

Don't feed the clowns fellow ZHers.

Tue, 03/23/2010 - 10:35 | 273152 Jim in MN
Jim in MN's picture


Ohhh, ohhh, history trivia!  I got one:

Thatcher's demise and the near-complete destruction of the Conservative Party can be traced to:

1. Busting the coal unions

2. The Falklands War

3. The Poll Tax Riots

chee-zee muzak plays....toes tap.... and the winner is....



Tue, 03/23/2010 - 10:54 | 273153 THE DORK OF CORK
THE DORK OF CORK's picture

Glad to be at the top of the class for once -

Remaining on a positive note, the Irish trade surplus is setting record levels chiefly because of a huge decline of imports which fed unnecessary consumption - also our exports while down are still in demand as they chiefly consist of goods that do not rely so heavily on consumer credit.


  P.s. - We may be Green Austrians now but we still rely on the rest of the world to be nice Keynesians and Friedmanites

Tue, 03/23/2010 - 12:55 | 273347 trav7777
trav7777's picture

The Irish experience is like the Great Famine.

Britain and the BOE ran that ponzi and now it's like "take your medicine, fuckers."

Meanwhile, the larger UK gets a nice dose of QE and the City gets bailed out.

Tue, 03/23/2010 - 14:48 | 273458 THE DORK OF CORK
THE DORK OF CORK's picture

Yea if the potato crop fails this summer we will be truly fucked

Tue, 03/23/2010 - 10:37 | 273154 lsbumblebee
lsbumblebee's picture

Mr. Grice you're gonna piss a lot of people off when you use common sense like this.

Tue, 03/23/2010 - 10:59 | 273180 Postal
Postal's picture

I did that on anther site last week. Got meself banned for it, too. :)

Tue, 03/23/2010 - 10:38 | 273157 Bigdaddydvo
Bigdaddydvo's picture

Great read, thanks.

Tue, 03/23/2010 - 10:44 | 273163 Invisible Hand
Invisible Hand's picture

Excellent article with many points to ponder.  I think that the US leadership will act more like the Weimar Republic than Ireland (or England under Thatcher).  For one thing, our current administration is a wholly owned subsidiary of Big Labor.

However, at the risk of coming across as Cato the Elder, I will repeat often raised point about owning gold (although I own some, secondhand, through mining stocks) is that by the time precious metals become the best asset class, ownership will become illegal.  It happened during the Great Depression.  It will happen even quicker under our current government.  The politics of envy are more prevalent than in the 30's and the concept of individual liberty is greatly eroded.

Buy gold if it makes you feel more secure but it will not protect you in the country I see us inhabiting in the near future.  It will only make you a target of theft from our government, or of thieves (sorry, I repeat myself).

Just as in Rome, this system will only change through collapse.  We are too big and too dysfunctional to reverse course (even temporarily) as Great Britain did under Thatcher.

Still, excellent article.  Thanks, ZH, for bringing it to my attention.

Tue, 03/23/2010 - 11:01 | 273183 Postal
Postal's picture

Not only is the current system too big, but--as you pointed out--any resistance to needed change will be accompanied with the force of law. :(

Tue, 03/23/2010 - 11:53 | 273250 Arm
Arm's picture

Exactly.  There is also an additional consideration.  When faced with extreme economic distress, societies become unwieldy.  Thus having gold is not the same thing as being able to consume it or keep it.

Since we are looking at Romans, a good example can be seen in the silver hordes unearthed in Britain.  Roman culture continued in Britain for more than a century afte ther departure of the legions.  However, Viking raids and general strife slowly engulfed the province (then kingdoms).  Rich merchants buried their silver and gold hordes thinking they would recover them when times calmed down.  They never retrieved them; obviously they died.

This is what survivalists do not understand.  Forget about government expropriation which would come much before this.  You simply cannot live in a bunker all your life.  Society has to be stable to enjoy your wealth

Tue, 03/23/2010 - 14:11 | 273423 tmosley
tmosley's picture

SOME of them were never retrieved, and you don't know how those people lost their lives.  It's just as likely that they died of plague, an infection, or they were killed in some other way.

Also, the Vikings didn't invade the British Isles until the 800s.  The Romans pulled out in 410AD.  That's a 400 year gap.

Tue, 03/23/2010 - 12:58 | 273351 trav7777
trav7777's picture

You can carry gold to another country.

May surprise people, but the legal status of various articles does not arbitrate their value.

Or are hookers and coke worthless?

The GD illegalization was to coin that traded in competition with the FRN.  There is no such article now.  And if ownership of bullion were illegal, you will see a sudden resurgence in the popularity of being Mr. T.

But gold won't be "worth" more than its equivalent in oil or land or anything else people want.  It's not special to rob it anymore than it was 1000 years ago.  Jesus, people steal cattle and chickens too, as well as vegetables.  Hell, they may cart off your daughters.

Tue, 03/23/2010 - 10:46 | 273167 jimmyjames
jimmyjames's picture

Should a full blown government crisis develop and price supression mechanisms be removed, watch what happens when the rush to cover massive shorts ensues.


The short squeeze will be triggered by the world's Central Banks-as they buy in a panic-trying to stabalize collapsing currency's--

That's who will be paying the big prices to gold holders-

So what will the little guys do-when gold is so expensive?

They'll buy silver-which will outperform gold in terms of % gains--



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