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Eric Sprott Says Gold Is Now The World's Reserve Currency, Says Silver Was Manipulated Lower
Eric Sprott making headlines in Vegas:
- SPROTT SAYS GOLD IS NOW THE WORLD'S RESERVE CURRENCY
- SPROTT SAYS SILVER WAS `MANIPULATED' DOWN IN PRICE
- SPROTT SAYS PEOPLE IN IRELAND, GREECE ALREADY FLEEING BANKS
- SPROTT SAYS SAVERS WILL FLEE BANKS TO PUT MONEY INTO GOLD
Naturally he will be called a nutjob and a tin foil-hat wearing moron, until he is, of course, proven right, at which point the conspiracy theory becomes non-conspiracy fact.
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Don't you mean "out" instead of "up"?
Perhaps I should have phrased it:
"Methman will let you manipulate 1000oz bars up his ass for $5."
I was joke making.
"WAS `MANIPULATED' DOWN IN PRICE" ---- or "IS BEING..."
exactly
WOOHOO.
Gold/silver to the moon or should that be fiat debt-based paper currencies to the hell or both of these things.
go eric!!!
So why aren't daytraders paying a premium on spot price to take inventory immediately off of the comex floor? The house is cheating. All the traders know. Buy all the house chips and set up shop somewhere else.
Someone shut this terrorist up... there's plenty of room in the ocean for the likes of him you know.
heh heh.
Right alongside bin Laden. Check out the raw footage of the at-sea burial of bin Laden:
http://www.youtube.com/watch?v=mfF1vkMQ0h0&feature=player_embedded
Bin Laden's last picture just released. http://wuxinghongqi.blogspot.com/2011/05/buried-at-sea-within-24-hours-osama-bin.html
It's Osama Bin Bacon! Hahahahahah!
OK, Zh'ers - you gotta go look at this link. LMAO
Why the hell would the biggest gold equities funds be on margin.
Big mistake to be on margin just like the Hunt brothers leveraging up back in 1979-80.
there's no "big mistake" buying on leverage unless in hindsight the market pops the wrong way ....what happened to the 1980's Hunts and 2011 private investors was that their 'business partners' who provided the leverage pulled the plug, and worse, did it suddenly
there's a big fuking difference between getting a market call wrong and your 'partners' knifing you by changing the terms without decent notice
According to the Playboy article the Hunt bros were given notice and they blew it off, much like VanNottinghiem. The Hunts at least stayed out of jail.
One thing he knows is how available it is out there in the REAL world.....he doesn´t shuffle paper....I am betting he is right....and after this last two weeks..I know he is...they drain Comex every day....yet the paper price is dropping...lol
not that I'm calling him a nutjob but he does have a huge horse in the race. PM's are what he does. Would you expect him to say he's scaling back on physical at the same time he's launching new products in the space?
highly unlikely.
He has been right on PM's for 11 years.
Show me another Portfolio Manager with that track record.
Why is it that if a long talks his book it's wrong but if a SuperTroll like Nadler at Kitco constantly pisses all over the product he's, supposed to be, hawking that that's okay?
Nadler is a completely discredited joke as a so-called "analyst" of the gold scene, and is nothing but a laughingstock to anyone who can tell their ass from a hole in the ground (note that MethMan is still working on the distinction).
Why is it that if a long talks his book it's wrong but if a SuperTroll like Nadless at Kitco constantly pisses all over the product he's, supposed to be, hawking that that's okay?
Fixed it for ya.
So what you are saying, is that he is merely talking up a game rather than trying to actually make a profit on a fundamentally sound investment when everything else is apparently out of wack?
I wonder what John Hathaway feels like when he sees names like Coach, Abercrombie, Polo Ralph Lauren, etc. rocketing up to new highs day in, day out and seeing his own fund get absolutely hammered.
Time to step in and buy this gold stock capitulation.
RobotTrader - Thu, May 12, 2011 - 10:23 AM
Some kind of vicious bear market rally is due in this group.
ITG and my fellow members on Team Gold!
Ease up on Robot! He is a trader... It's in his name!
And has anyone taken him up on buying his monster box of silver? Hmm?
True, I have seen you at FOFOA. But why are you still bullish on plat and Ag? You know better, bearing.
ITG, I like platinum MUCHO. Silver will be grocery money in a SHTF.
The bulk of what I have (and will give to my descendants) will be gold.
He already sold it, and is now trying to buy back eagles and maples for LESS THAN SPOT.
He is going to be sorely disappointed. He will NEVER be able to buy back the same number of coins that he sold with the proceeds of that sale. That is, unless he wants to go to federal pound me in the ass prison for tax evasion.
I am against taxes, but that thought would bring a smile to my face. Laugh at what you can not change, and all.
He wants to buy it back at less than spot. Good luck on that.
I am against almost all taxes too. But, if they got rid of the Income Tax, Death Tax and some of the more odious ones, I could live with a National Sales Tax. But, it would "hurt the poor" and makes so much sense that it will never happen.
I want to buy his monster box if still available. I'm in Pasadena, which is a 20 mile drive to Inglewood.
Make sure to buy plenty of .22 - that's a lot of zombies.
he's all talk, and if ever there was a wannabe it's robo. he actually fancies himself some sort of zh board comedian or moderator. but he's an obvious and transparent phony, a modern day walter mitty dreaming of a life of luxury in the hampton's which he defines as success in life.
This is how I picture RoboLemming:
http://www.nationalcynical.com/images/computerbettermaintained.jpg
holy mackeral. shocking. you got me on that one. wasn't ready for it.
Like what you say, akak (even if you do encourage the trolls), but had to junk you on that one! My delicate sensabilities, and all.
Sorry (not really)
That's OK, TD --- no offense taken. It was a foul photo.
Holy ****!
A computer to play on....
...doesn't seem like much of a punishment for grabbing that woman by her pony tail and dragging her underwater until she drowned.
'bout blew my drink out my nose...careful!
DaddyO
why do you know where to even to find that
robert trader is a world class merkin
The same way I feel when I see Blankfein or Dimon.
It is interesting how i have seen 3 reports in last 48 hours discussing how must of these retailers, are carrying to much inventory.....again.
Also, momo trade. This too will turn, same as commodities and every other asset class. There is no bar bell trade anymore. One side of the boat, or the other with about 30 second space in between.
Ampex is selling 90% silver dimes an only 14.99% over spot
I have 7.5%. Which is FUBAR if I've ever seen it.
Normally such things sell AT spot.
There are two attributes of money - store of value and unit of exchange.
Fiat is not a store of value in a ZIRP world.
For oil and other commodities the $dollar is close to losing its unit of exchange function.
As Europe fall again, who in their right mind in the EU will buy the bonds of the EU states and who will want Euro-denominated or BP denominated government debt instruments?
Then there is Japan who created $700 billion within 3 days of the tsunami/earthquake/nuke disaster and has since announced that the $trillion mark will be eclipsed. Never mind that it was bankrupt before the event.
Infinite fiat will lose infinite value.
Yes...all these dogs are still out of the pen....among others ....so why the drop in PM´s...me thinks its the Big boys getting their hands on all they can by any way they can...that be the HFT computers boys....I own some CEF....the volumes have skyrocketed in the last two weeks of game playing.....it used to be a quiet stock with very quiet big holders....no day traders...that has all changed with 3-4 times volume in a single day...does anyone here think the GS Blankfein is having his Jet fly to a yet to be determined country with ETF´s or might it be filled with GOLD..."its for the kids".....lol
Bernanke just shit-crapped his pants dumb and dumber style.
Bank runs and holidays should not be feared....
....they should be preempted....and their viewing enjoyed....like an old Jimmy Stewart movie...perhaps "It's a Wonderful Life"
Sprott is a bitch, bitchez!
For most recent (and probably ongoing) mechanics of smack down, in The Wrap, at bottom of page, here's a view from Ed Casey. I don't know much about the silver market, but seems accurate. Anyone?
http://www.caseyresearch.com/gsd/home
It's Ed Steer from Casey Research. He is also on the board of GATA.
I am glad that his talks is published in a more mainstream media.
Silver down over a dollar on the Globex in 30 minutes.
Looks like The Cartel has informed their "friends" that margins are going up again tonight.
Thanks for the update, Turd.
We'll keep watching... But, maybe not sniffing the air!
Turd:
Up and down 8% in under 24 hours = Huge vol spike
Not too hard to predict another margin increase.
At this point though, I don't know what kind of idiot would be fully levered long... but hey, I guess there might be some left.
Short those rallies people.
The whole commodity complex is going under, followed by the market, then bonds. Then, in November, QE Extreme.
Until then, cash is king.
I have no idea why anyone junked you for that. I see that as "their" game plan as well; going to start buying Puts on the SPY soon, then once the post-crash dust settles and the new dollar printing program starts ( who knows what name it will get, doubt they're dumb enough to go with QE3 ) I'm backing up the truck and buying as much gold and silver as I can get my hands on.
Turd, Alot of us could give a shit about the margins. Our battlefield is down at the local coin shop, we buy with fiat and hide the stuff. This fight will be one by the little physical investor, not the monolithic pricks. PS Sprott is on of the good guys, he has the metal and the stones.
+ $1500 to another warrior doing it the way I do!
Agreed. I get caught up in people posting about long this and short that and margin calls, and get a bit nervous. Then I remember that I am not a trader, have nothing invested in any markets anywhere, and wouldn't know how to execute a call or a put if my life depended on it. I've never even ordered metal off a website. I've built my entire stash over the last 3 years from two local coin stores. My entire nest egg is tucked away in a safe deposit box in a small local bank. I even visited my stash yesterday to add a 1 oz gold maple. So while the Kitco charts are interesting to watch, I give a flying fuck about the silver and gold "crash" last week. Every ounce I've ever bought was still sitting in my box yesterday, just the way I left it. So my metal didn't "crash."
Do you not know what the PM owners consensus is about bank deposit boxes then? Get your own safe and hiding places.
I do. And it certainly worries me. But I bank at a small local started by a friend of mine, so there is a bit of trust there (I realize we're talking about trusting a banker). I figure the folks on this website will keep me waaaaay ahead of the sheep as far as sounding the alarm that the shit is indeed just about to hit the fan, and I'll have some lead time to bring my stash home and hunker down.
All I know is that when it ticked down below 34 I pulled the trigger down at my coin guy's place. I looked back and it was about a month and a half. Every time I think is the last time. But, damn, you can't have too much.
Physical shortage = buy it while you can, wherever you can.
And when the local coin shops run out and ebay runs out and comex runs out and all the miners run out, we can all just go buy shovels and dig in the backyard like MM says! (/sarc)
The main problem is that the big players appear to be stocking up on gold and silver right fucking now. They were late to the party, turned back the clock and scared those who believe MSM away, so that they can stay marketmakers.
Tyler,
Good post - I do sincerely appreciate it.
But gold is clearly NOT YET the world's reserve currency! I'm always amazed at how many of our countrymen want the US Dollar to be decimated and repudiated as reserve currency; do they not understand much of our wealth is based on the ability to write checks that are never cashed?!
I like gold and silver as long-term stores of value, and occasionally markets to trade, but I fully support the USD Standard. Why wouldn't I? Why wouldn't you?
Regarding SILVER.......
You *ARE* a nutjob if you believe the comex is out to get you, or that it was "manipulated" down. $50 is resistance. Simple as that.
Silver got its pussy crushed at $50 because it had a parabolic run higher and smart money sold near resistance....just look at the top tails on the daily chart of July futures. C'mon, Tyler!
You tin-foil hat wearing silver permabulls [FANATICS!] better pray to your personal god silver doesn't go to $200+.
Because that means the world as we know it....is coming to an end.
Good luck bartering, I'm sure it'll be a lot of fun.
NOT.
The economy is Wile E Coyote, already run off the cliff. Don't look down! Gravity's a bitch.
well... like I always say...:
FUCK THE REST!! SCREW'EM!
200$?
FUCK YOU!
451$!
Why not support ....?
Easy:
Would you support a company that issues 5% more shares every month while NET LOSSES CONTINUE TO RISE ??????????????????????????
In my lifetime Gold has changed in price from $35/oz to today's price and the sky didn't fall. Some investment banks are being cornered. There is a potential that they could lose some prestige and money. That's all. I'm going to keep buying the ride down as I bought the ride up. None of the markets are trustworthy. Silver bugs will gain more clout over time if they can bide their time with their growing inventories.
And what position do you hold at the CME?
Secretary of pretending to crush pussies.
In run amok silver bug nightmare. Clit tribs YOU in the ass.
Good LUCK starving, MF !
I think most silver perma-longs (i'm one) don't hope the dollar looses reserve status, as a higher dollar keeps the price of silver (and other expenses) down so we can accumulate more at a lower price. I just accept that the fiat money game can not last and we want to preserve our wealth through the inevitable collapse. I have other preparations that I'm making that would be cheaper and better if I have a few more years like this year and last. The difficulties of barter are pretty far down my list of concerns when the dollar collapses.
+1
Nobody really wants a collapse, as it will bring about changes to our daily lives that might be beyond what we're willing to endure. But I see the writing on the wall, I acknowledge the futility of a fully-manipulable (is that a word?) fiat currency, and I understand the logical outcome of our situation. I'm simply preparing accordingly. Not running around like Chicken Little, but preparing nonetheless.
Remember...normalcy bias
I'm with you on that one! paper silver to zero! time to get back to supply n demand
I KNOW the world as we know it is coming to an end. Can't wait. We need to reorganize on a fundamental level... seriously. This is bigger than all our differences. To me Sprott's words carry a lot of weight, he's been right the last ten years and his is 90% in metal - my kind of people. Whoever does not have exposure to physical metal should have their head examined for their own benefit. I hope paper silver goes to zero - the sooner the paper goes down the shorter the pain on the other side.
That will Happen regardless so I think it is prudent to buy the Metals. Most people are not Buying Silver or Gold to get rich, we are buying to be able to eat. I am not expecting any 401K or pension to survive the collapse of our current corrupt system.
Chicago CTA, I’m with you,
I have a lot of PM as well but I want astronomical prices for PM about as much as want to collect on the full value of the fire insurance I have on my house. Regardless I have both (plus even more important SHTF stuff) not because I want to use them but because I may need them. What fool puts his seat belt on hoping to get into a car wreck?
I stopped getting mad at the idiots around me (foreign and domestic) and started preparing as best I could about two years ago for what sure looks like an unavoidable train wreck less than decade away at best. If the train wreck doesn’t happen then I’ll have some really great Christmas tree ornaments, which would be just fine by me. Wouldn’t that just be lovely sight.
I thought that everyone knew by now that the world as we know it IS coming to and end. Where have you been all this time?
Because as it stands it's a fraud robbing people of their hard earned wealth here and abroad.
Ben Bernanke is the one killing the dollar. Most of us have no choice. It's not a matter of being a cheerleader for a so called "strong dollar policy," but just looking at the actions of the FED and charting the obvious course.
The dollar has had a good run. It owes its strength to seriously intelligent men like Henry Kissenger - despite what you think of the guy, he engineered the petro dollar, and in so doing allowed the largest number of fiscally irresponsible people (aka The Boomers) to prosper in spite of themselves, and in spite of a growing trade gap with China.
The COMEX is not against us. It is acting out a last desperate grasp on a fading power that is based on manipulation of prices. It's "business as usual," but in the current "black swan shooting gallery from hell," type of environment, desperate times require desperate measures.
Silver did get ahead of itself and needs to consolidate. But the parabola points where it's going, and that's what keeps the central bankers up at night. The jigs up. I wish it weren't because then I could spend my nights sleeping with my 401K safely ensconced in a "safe, diversified, instrument," like all the other savers, rather than hanging my dick out in the wind with all of the speculators on ZH.
The dollar has had a good run. It's been fun. It's been real.
But buckle the fuck up, because shit's about to get real. You know it, and I know it.
Nice.
Or, actually, not nice at all.
But well said, and very cogent.
I certainly don't think you are on your game regarding manipulation. However, you do make a good point - no one wants to go through an economic collapse. People starve.
You do realize that for 152 years, the US dollar wasn't the world's reserve currency. Were things really so bad then?
BUT WHY IS SILVER SO IMPORTANT?!
there was hardly enough to keep the industry going... I don't get it why they even bother...
It began with GATA, whose role was always tacitly supported by banker elites; out of all the people, bankers have historically the most affinity for gold, for example bankers like Alan Greenspan and Ben Bernanke had always maintained that gold had a monetary role.
Today gold is the officially sanctioned outlet for elites to outrun high inflation. Yet the common fiction is that bankers hate gold and love fiat. They do not! Just like each pack of cigarettes carries with it a “warning”, so should every ounce of gold. But unlike cigarette warning that “smoking can be hazardous to your health”, each ounce of gold should carry with it a “warning” that buying it moves the society closer to debt peonage and enslavement.
Gold is what makes fiat swindle possible. When the time comes, bankers will parlay their gold holdings into a mother lode of new wealth after paper asset revaluation in exchange for their gold to central banks. This is money laundering at the highest order: gold bought with increasingly devaluating fiat is going to be exchanged for newly minted gold-backed fiat.
So what does it mean? Welcome to Michael Hudson's road to debt peonage and new era of leisure classes living off their wealth while the rest will have to work like dogs to pay for this.
No I don’t want higher gold prices, I want gold to go to zero and debt defaults.
I respectfully disagree.
EVERY ONE of us should own some gold. It's easy and it's fun. All you need is $175 to get you started (1/10th oz Gold Eagle). The more gold each individual has, the more free we are. Simple as that. Free yourselves and become your own central bank! Buy gold.
Holders of gold will be the winners. Go and get thee some.
Simple. Sweet. And spot eff'ing on!
Knowing that every ounce of gold I buy removes me further from The System, gives me great satisfaction..
Even less really.... you can get a 1 gram bar w/assay card for....?
Correct. The 1 gm, 2.5,5 and 10 gm pamp bars are easy to accumulate. The 1/10 and 1/4 ounce eagles are also cheap enough to buy. A lot of people talk about the 1,5 and 10oz silver bars...but for the same price you can buy the small bars and they are a lot easier to carry.
Coincidentally, I was just asking my neighbor how many of the people who live in our surrounding community owned any silver or gold. His answer was that probably no one did. I said, "There you go. You're looking at the new banker of the future."
Yep. You are telling it like it is.
A play into gold standards is a play right into bankers hands.
so true, people forget that gold is fiat money, whoever holds the gold declares that is lawful money...neat trick!
It was not bankers that decided gold is money it was humans over millenia. Banks were created to store gold because of its value. Paper was written as proof of ownership. Defaults happened when the bankers decided they will print more paper proof of ownership than exists. Sounds like exactly what is happening once again as it always does. Get gold for yourself and keep it away from the bankers.
Gold is not declared money by anyone; it is money. Gold does not need a decree and show of force, actually the opposite as at present it is resuming its natural role against the wishes of the kleptocrats and one may some day need a show of force to protect it from them.
You are a buffoon.
If gold was fiat money, I could take a 1 oz bar and restamp it to say 100oz and go trade it for 100 1 oz bars.
Christ, it's like you're a fucking infant. This is not a difficult definition to learn.
agreed, physical PMs are the anti-fiat.
GATA is self funded and if it had any support from "banker elites" they'd have so much more media coverage and would have time at CFTC hearings instead of being drowned out and pushed around.
If bankers want gold so much the central banks would have been buying it all the years past instead of just recently starting to buy it.
Your comments are delusional. Bankers want paper because they can control it and it is boundless. Gold would have kept their system in check so it must be derided by them all.
"Gold would have kept their system in check so it must be derided by them all."
Hate to break it to you but we already had a Gold standard, and it failed because you can create as much credit as you want against any amount of gold held in reserve. That is the whole trick of fractional resereve to begin with which is why modern banking as we know it was started by goldsmiths.
"Gold would have kept their system in check so it must be derided by them all."
Hate to break it to you but we already had a Gold standard, and it failed because you can create as much credit as you want against any amount of gold held in reserve. That is the whole trick of fractional resereve to begin with which is why modern banking as we know it was started by goldsmiths.
linrom is out of his mind. GATA? I know those guys personally. I just talked to Chris Powell the other day (by email). They all detest the Wall St banksters and have no affiliation with them whatsoever.
Ha there are consipracy theories about consipiracy theorists. I guess I have to wear a tinfoil hat and tinfoil underwear now too. That sounds quite uncomfortable but whatever it takes.
Wow, they did not tell me last Thursday (when I enlisted in the THB) that I would have to wear tinfoil underwear too...
But, whatever it takes.
It's time for a new play book? That ship has already sailed.
Not even sure what you're trying to say.
What an odd thing to say. Modern banking was started by gold vaults. Kings, Lords and other mass murderers would take their war plunder, and place it in a gold vault. The vault would issue a "bill of receipt" for the gold (where the term 'bank bill' came from), and charge a small storage fee. This 'bill of receipt' could then be used as if it was gold, and modern paper money was born.
Initially, the vault would take the storage fees, and lend them out 'at interest', but over time the gold vaults noticed that the primary depositors rarely came back for their gold, so they began issuing multiple bills for the same gold, and fractional reserve banking was born!
As long as borrowers paid their loans, and gold vaults remained prudent, this system worked quite well. Occaisionally, an original depositor would come for their gold, and the vault would be in deep shit, so the gold vaults formed an informal network of vaults that they could borrow from in such an emergency. This eventually gave rise to the modern banking system, where a network of banks plays 'hot potato' on a continously basis.
I don't think that's possible, dear.
http://www.entendance.com/forums/viewtopic.php?f=17&t=782&p=16922#p16922
First, I think it might be helpful to outline what exactly a reserve currency is:
A reserve currency, or anchor currency, is a currency that is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. It also tends to be the international pricing currency for products traded on a global market, and commodities such as oil, gold, etc.
Very important here. Gold is not a reserve currency, it is a commodity.
As for reserve currencies, I will point you to the Currency Composition of Official Foreign Exchange Reserves (COFER) which is a publicly available report on what exactly they are and how much.
http://www.imf.org/external/np/sta/cofer/eng/cofer.pdf
Anyone with any sort of real financial education feel free to chime in at any time and defeat these outright lies that evidently zerohedge considers newsworthy.
You're being too literal here...
Sprott wasn't changing the IMF definition - although, the marketplace will do that for them soon
Yeah..because when bitch ass dictators bail out, they take their paper with them. I junked your ass and I don't have a degree in finances. My 7 year old thinks you're a pile of dog poop.. his words, not mine; says he'd take gold over paper any day of the week. Particularly friday's when he comes home with 100%'s on his math tests. I tried to give him 5 FIAT's and he pointed to my safe and said "I want one of what's in there".
My 7 year old just fucking owned you.. hhhahaahah
Kid knows value!
Kid knows value!
He yanked out his own tooth in school the other day. I slipped him 2 bucks under his pillow. I woke him up the next day, and with excitement, prompted him to look. He reached and pulled out the 2 bucks and shrugged his shoulders and says to me "2 bucks.. it's not silver, but it's better than nothing I suppose". I just had to laugh.. and laugh I did. He makes me proud.
thats awesome. great parenting
Trgfund, I will assume that you are not yet another in a VERY long line of anti-precious metals, pro-bankster trolls here (despite all the evidence you supply to the contrary), and ask you two simple questions regarding reserve currencies:
If gold is NOT a de facto reserve currency, then why do world central banks still hold it, by their own statements and claims, as a RESERVE?
If gold is "just another commodity" as you claim, why do world central banks NOT hold cotton, or copper, or wheat, or aluminum as a RESERVE, in the same way in which they hold gold?
Funny, no answer yet.
I had the privilege of putting a similair question to an annoying relative of mine who had sent me some turn of the century article extolling the wisdom of central banks divesting themselves of their gold reserves; I asked our question after I updated him on the facts of the matter, of course. Shut him the fuck up right smartly too.
Here is an excerpt of his letter (circa.1999?) for your infotainment,
"DUD INVESTMENT According to Merrill Lynch, gold is "the duddest of dud investments." Ever since the U.S. dollar went off the gold standard. gold has had no special value as a commodity, with only 280 tons going to industrial uses per year. Yet some people continue to hoard it. The price of gold has been slowly dropping and is now well below the price of its production at many modern mines, which means companies mining new or "virgin" gold are a bad investment. Even the 35,000 tons of gold bullion held in central banks have lost 30% of their value over the last decade- a huge waste of taxpayer assets. Some governments are already beginning to sell off their gold reserves. In the last five years, the Argentine, Australian, Belgian, British, Canadian, Dutch, and Swiss central banks have sold large quantities of gold, as has the International Monetary Fund. causing the price of gold to plummet."
Memories, back in tha day!
"Very important here. Gold is not a reserve currency, it is a commodity."
i have to disagree with that statement. Gold is money and the basis of the all the paper ponzi wealth that derives from it. i quote FOFOA:
"What is the main difference between a commodity and a currency? Consumption! A currency circulates through the economy as a medium of exchange but is not consumed. A commodity is a useful basic economic good that is produced, traded in common units and prices all over the world, and then consumed by industry or individuals.... ....What separates "endurable wealth assets" from the rest of the physical world of consumer goods is their tendency to appreciate against the currency. Take classic cars for example. They usually appreciate versus the dollar while regular every-day cars depreciate as soon as you drive them off the lot! The same goes for Fine Art versus Not-So-Fine Art, and antiques versus their contemporary equivalents. It all comes down to time... and appreciation over time. This is the difference between Wealth, Currency, and the rest of the real consumer world. The goal of wealth is, and always has been, to retain and/or gain purchasing power during the test of time."
When things like MBS', CDO's and CDS' fail to have value, the flow of the market is back towards the source as "safe" haven is sought.
the statement stands to be corrected as reading: Gold is money and we have been trumped into buying the LIE that gold is a commodity. It is not, for it is the ultimate holder of wealth by its' value.
I'm a huge silver bug, but i still comprehend that GOLD is the ultimate preserver of wealth, at least on this planet, as it has been for as long as We the People have existed. i know there will be a day to move my silver into gold, especially when I see the GSR becomes more historic.
at that time i will be glad my wealth was preserved in silver and some gold as the non-backed paper crashs and burns so many.
i have spent many hours reading fofoa's posts and he makes excellent intelligent points that really "hit the nail on the head" so to speak. he may be a tad hard on silver, but he is certainly entitled to his views as i am mine and you are yours.
i have belief in silver's value to that of Facist Reich Notes, and i have even more belief in gold over silver as the ultimate store of wealth on this planet. above all my faith in God leads me to those conclusions.
Yet another person mentioning switiching their silver for gold at some point.
Are there ANY examples of anyone trading their gold for silver?
+ 1500 unjunks for mentioning FOFOA.
By the way, this is a rather ironic aspect about this community. Most people are mentioning how they are not "traders", but instead about longterm wealth preservation. However, gold is a much safer and predictable bet in this regard than silver. People are choosing silver over gold precisely because they DO game on not just wealth preservation, but a high win (because of silver's high upwards potential).
The annoying part is: In my opinion, beginners should start with gold, because it moves less drastically - yet annoyingly, it is much less affordable.
but with all the violatility there has been in almost every other market, the roller-coaster ride of silver is really fun. i always loved riding roller coasters. i'm no economist nor trader, but i guess a could be called an investor, however like you stated i seek a preservation of wealth and gold "costs" too much in Fascist Reich Notes.
the GSR will determine the final value at U$D collapse point. i agree with sprott the ratio will continue toward historic levels as we approach that.
i count ounces, not alleged FRN values.
I would certainly do so if I did not have sufficient silver already ... not going to abandon silver just because it's been beaten down.
thank you for the unjunks, i hope to never need them.
i agree i have yet to hear of gold being sold for silver other than some hearsay when it was around $18.
FOFOA has such a unique talent to provide the big picture for those who dare step out to look at it. he reminds me of that old saying - you can't see the picture when you're in the picture. his skill to explain and teach and his willingness to share his intellect is highly commendable. i found myself reading for 5 hours on my first visit. i literally could not stop reading. i was too intrigued with his message. my subsequent return visits were again for hours on end. i realize my learning must continue... we are indeed never too old to learn!
Sounds like you got a PhD.
Naturally he will be called a nutjob and a tin foil-hat wearing moron, until he is, of course, proven right, at which point...
At which point, Goldman Sachs, JPM, CNBC, and a slew of approved financial market gurus will all stand up and claim that they were the one that originated the idea.
Great idea, I hope China, India, Russia and anyone else dumb enough to have gold as their reserve currency can import Paulson, Sprott, Schiff et. al. to create a new central bank for them using their stores of holdings. Then they can create a system of credit to enslave their people and run their economies into the ground building McMansions and Mega Malls filled with 100inch LCDs and Playstation 7 running non-stop reruns of the Real Houseboys of Macau. They can even have elections every 4 years where the gold-backed debt slaves get to choose between two figure heads of equal impotence except that ones against gay marraige and the other one believes in a women's right to choose. Even better is that they can outsource all the production of their useless distractions so that no one has to ever work hard labor except for building the dwellings, and cleaning up after everyone's shit. The only thing is that a lot of people will want to live in this society so the central bankers will have to make sure that the impotent leaders spend a lot of gold backed credit building weapons to keep everyone else out except the fuel they need to keep the amusement park running. Sounds like a plan. Any suggestions?
Are you describing the current USA, or some fictional place....hard to tell
my point is that what constitues our system of money and credit (gold, paper with dead president's faces, lincoln logs) doesn't matter, its who controls it that matters because they command over real goods and services
In a gold standard, the gold circulates. The people are in control. Paper is 100% issued by the government, and they can ALWAYS produce more. Not so with gold.
Perhaps I was too harsh above.
"Paper is 100% issued by the government" ???
Wasn't it crystal clear that the FED is a private outfit, and NOT a part of the government?
With this Fukushimess-ta the bearing is looking awfully prescient for having moved his family to southern climes.
for guys like sprott and the rest of us who are buying physical, we dont mind the BTFD opportunity the past 10 days has produced.
but you have to seriously wonder how this paper reduction coupled with increased open interest for physical doesnt just quicken up the time to ponzi blow up. it certainly doesnt prevent it. boomerang.
"Naturally he will be called a nutjob and a tin foil-hat wearing moron, until he is, of course, proven right, at which point the conspiracy theory becomes non-conspiracy fact."
Why when the conspiracy theory changes does it become a "non-conspiracy fact" and not a conspiracy fact ? Does the writer have a problem with conspiracies being facts ?
In 8 years the decision to buy gold will be made for you.
++
/sarc on
In USSA, Gold buys YOU!
/sarc off
http://ericsprott.blogspot.com/
Thanks for the link. This is the first time I've heard him give his views. He makes sense.
THIS JUST IN:::: Nobody gives a shit. Stocks POMO'd their daily +.6% for the trillionth day in a row.
Gold Is Now The World's Reserve Currency - the world just doesn't know it yet. Soon, though..
That's just the way it is....some things will never change.
...que the Bruce Hornsby music "Bits-sez"!
everything is going down the shitters. Long term (3 to 5 years) you can't go wrong here.
A few weeks of down manipulation won't make me doubt. Even a year.
Look at it like a gift from uncle Sam to people who want to be able to buy up their neighbourhood when it all falls apart.
Unless you live in Detroit, South Central LA or parts of Paris
JP Morgan loading up on silver. http://dont-tread-on.me/
Wow...if Eric Sprott says it...it must be true.
Fuck that guy - He is pretty much a billionaire...and I don't trust ANYONE who fits that description.
So if there are 100 billionaires telling you to buy stocks and bonds and one telling you to buy physical you listen to none of them and just play in a pile of your own shit?
+1
If he were RobotLemming, he would listen to the 100 billionaires blindly and without question --- and still play in a pile of his own shit.
I don't need a billionaire to tell me shit...
I buy physical on my own...
My point is you can't trust shit that comes out of a billionaires mouth...they will tell you to "buy physical"...and then they will be selling the shit....and laughing at your dumb ass because you listened to them...
The rich are the true scourge of the earth.