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Gold 75% Underowned In 20 Years, Or Exter's Pyramid For Gen X/Y
Paul Kedrosky has posted an informative chart from JPM's Michael Cembalest indicating that ownership of gold in dilutable terms (aka dollars), as a portion of global financial assets has declined from17% in 1982 to just 4% in 2009. And even thought the price of gold has double in the time period, as has the amount of investible gold, the massive expansion in all other dollar-denominated assets has drowned out the true worth of gold. Were gold to have kept a constant proportion-to-financial asset ratio over the years, the price of gold would have to be well over $5,000/ounce.
Of course, the chart above pales in comparison with the true Exter pyramid, which incorporates all those wonderful JPM/Goldman inventions known as derivatives, amounting to $1.8 quadrillion, which certainly did not exist in 1982. If one were to factor the above table to include this Exter securitized credit money as well, then the true constant worth of gold would be well north of $10,000.
h/t Adam
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I am not an idiot.
I know I cannot eat Gold.
My question stands.
Ah! But perhaps you are an idiot?! You can eat gold.
Only if you have enough fiat.
and strong teeth
“I would say food has a value gold can never have.”
In what circumstances?
Armageddon?
Is so you will know that the food you eat is your last meal.
“Chicken wire has value that gold does not have”
If you insist.
“water has a value gold can never have”
In what circumstances?
Armageddon?
My question stands.
Welly - to answer your riddle... The price of gold is the price of gold.
I think you are after the exchange rate. Hmmmm - must consult TV's the *internet*.....
“Welly - to answer your riddle... The price of gold is the price of gold.”
I thank you for your response.
It is accurate.
Now, One only needs to know whether “price” is “price”.
Can you define “price”.
I think you understand that my question is this.
What is the “price” of Gold in major currency since the foundation of the Euro?
I ask for nothing more than a simple graph.
My point is that one cannot define “price” in a fiat currency.
One can only define confidence in the restraint of those who print the currency not to print too much of it.
Perhaps I’m not making myself clear?
Can we settle first on what the definition of "is" is?
"is" "is" whatever you want it to be.
Some call it Isis.
Isis will do what she will do.
I am just interested in the price of Gold in fiat currency since the foundation of the Euro.
Frankly I find you whole alphabet a wee bit confusing.
What's your question agian?
Frankly I find your whole alphabet a wee bit confusing.
What's your question agian?
My alphabet has twentysix letters.
I tend to arrange the letters in things I call words.
My question was and is.
Has anyone a chart of the currency price of physical gold (all major currencies against Gold) since the foundation of the Euro?
Ahhh... That would be a no.
This may be what you are looking for: G5index
The 'price' of gold is arbitrary.
Thanks.
That looks like it.
and
01/01/92 1 OZ Gold $ 353.15 £ 188.98 Euro 264.86 Au $ 466.16 Can $ 409.65 Swiss franc 480.28The best I can offer you is the bottom of the Kitco main page.
http://www.kitco.com/
You could make your own index going back 10 years. What you do get is the gold price of every individual currency going back 10 years.
After you have done the exercise for each currency, I think you will get the picture !
Thanks for that.
I'll give it a bash.
Yeehah - nice to meet you man.
This “Yeehah” thing.
What is that?
Is that the primal cry when the theft is complete?
A friendly greeting me and my kin have - when we recognise a like soul.
I see.
Cheers.
Get a room.
Only if you pay.
"Only if you pay."
Rule number 1 - if I pay, I get to watch!
Great exchange.
There you are Mako.
I have evoked your name many time these last days. One of which was a choice tidbit on Malthusian population contraction I had with Apostate. Alas, I am too lazy to point and click multiple times (child of the times) to find the original, so...
I stated that once Western man separated its currency from something tangible (gold) and attached it to population expansion (debt), we hit a Malthusian chord. Would like your petri-dish analysis.
"once Western man separated its currency from something tangible"
It needed fiat confetti?
Not sure about "It", but they (Western Banks) did. After all, the only way to cover up the fact that they had loaned out many multiple times their reserves was to sever the dollar from gold.
Been living a lie ever since.
"I would say food has a value gold can never have. Chicken wire has value that gold does not have, water has a value gold can never have"
Try trading with food, chicken wire and water Mako.
Why did man bother to invent money?
Cuz barter is a BITCH (and i don't mean a "barter bitches" bitch)
Phenom...
Barter Bitchez!
After the destruction of fiat in Zimbabwe, the people turned to gold. Your hypothesis that chaos leads people away from money-based economies to highly inefficient barter economies or, even worse, subsistence living, doesn't jive with what has actually occurred in the real world. In the real world, when one medium of exchange becomes worthless, the market (even if the government tells it not to) finds another. Reality called; it says you've been out drinking too long.
Mako, I don't know why you got junked so much. I remember my mother's stories of the Great Depression. The only reason that the family did so well is because, "we were on the farm". They might have been poor, but they didn't have to stand in the soup lines. I never forgot. So for me, it's farm first and gold second. Gold is good, but Maslow says, food and water first!
I'm pretty sure you can find it here somewhere:
http://www.usagold.com/gold-price.html
Thanks for that.
I will look at it.
My questtion was.
Has anyone a chart of the currency price of physical gold (all major currencies against Gold) since the foundation of the Euro?
Does it go up sky-rocketingly by any chance?
“Does it go up sky-rocketingly by any chance?”
No thanks to you.
But it’s beginning to look that way.
Not against you! Just answering the question....
I'm searching as fast as I can me Lord. Please don't beat me again.
http://goldprice.org/gold-price-history.html
Thank you.
You and your family are allowed a picnic on Sunday.
Your ten year chart of Dollar/Gold is instructive.
(bow curtsey exit stage right)
Demanding isn't he... <<Masterful though - ooooooooh>>
I ask for nothing more than a simple graph.
Sadly I do not.
But I did plot gold, oil and the DOW after backing out M3 since 1913. The normalized scale is arbitrary mind you, but gold and oil vs. DOW look like out-of-phase sine waves. ~5 oz to buy the DOW were my crossing points.
Interesting.
I hope you can make “money” from it.
Are not oil, gold, and the Dow all represented by the apparent “value” of “fiat”?
That’s why I am interested in a simple graph of the “value”/”price” of Gold since the introduction of the Euro.
I can’t drink oil. I can’t eat Gold.
I can’t eat or drink fiat.
"Are not oil, gold, and the Dow all represented by the apparent “value” of “fiat”?"
Yes my Lord, indeed. But that is why I backed out the $ by dividing each by M3. If you get my meaning, Sir.
Yes. Got it. Thanks.
I have it My Lord!
Alas, since gold is currency, it has equaled one these last 10 years. Gold, as priced in the only other currency, can be found here:
http://www.goldprice.org/gold-silver-ratio.html.
I should have kept reading - it gets better.:-)
Lord Napoleowelligton,
I suspect you have the chart you desire. Produce it.
No Sir GoldmanSux. I don't have it.
It is just that I suspect that currencies move within a range and gold, over time, breaks out of the range.
I'm not trying to waste anyone's time.
This may help. Was posted by Tyler a few months back.
http://www.goldcore.com/sites/default/files/editor/Leeson3.PNG
Thanks for that.
Very clear.
By my figures ownership of chicken wire fence is 90% underowned.
I agree. I would also go long pitchforks, cycles, torches.
"if gold shall rust, whal iron doe?" who wrote that?
EricB and Rakim, surely...
Chaucer?
"if gold shall rust, whal iron doe?"
who wrote that?
Someone with spelling issues?
But as the pilgrims of Chaucer's Canterbury Tales were aware, "If gold shall rust, what shall poor iron do?
excellent! thank you
The Goldman curse is still on gold. Watch out for a large correction as gold is now lower since the goldman upgrade few weeks back.
Oh god have they upgraded it? Run away....
http://the-moneychanger.com/articles_files/mmm_files/economy/exter.phtml
A must-read interview for anyone interested in Exter and his pyramid. Quite a man
I can channel Jim Rogers well by now:
"Nothing goes straight up. I don't know know if gold will be higher tomorrow or next week. But I know governments are printing money like crazy and that should be good for gold, as well as silver, and other commodities. Sure, if theres a slow down in demand things like oil and palladium will go down. But we're in a bull market for commodities that has at least 10 years to go, and even in bull markets you can have violent corrections of up to 50%."
How's that?
I do feel much better now.
Can anyone channel Marc Faber?
Mirror mirror on the wall....68 minutes with Mr. Faber at the Mises institute....
http://www.youtube.com/watch?v=H0sS6a9RW2E
given that deflation is more likely in the short-term... pick it up later
Other than foreclosed homes and plasma tvs, the price of what is going down?
Skype is free.
Data storage is near free.
Internet entertainment is near free.
If you eat pork, it is pretty cheap. Chicken producers are going broke so that is probably cheap. Eggs are about $1 a dozen, cheaper than 150 years ago.
Sister Cleo has reduced her rates.
You can get crabs from the hooker down the street for $50, so they are almost free.
If stuff is getting cheaper then why was my Rent just raised 50 dollars next month and my grocery bills have increased over the last several months. Oh and my wages have been frozen for a year, not that it mattered only making barely above minimum wage. Yay for the cheapest rent in my town being 40% of my income.
My life is getting harder, not easier.
Shave.
Shine your shoes several times a week.
Get a haircut, leaving some hair.
Get a different job.
Buy a modest house with 4.5% mortgage rates while you can.
Change your grocery because food prices are down.
Just keep sawing logs and you will have a big woodpile.
Life must be pretty easy for you if that is all you have to do.
Large Pizzas that were $24 are now $10, any way you want it. $150 all inclusive cell phone plans are now $70. $34,000 cars are now about $24,000. I just saw this morning that an 80lb bag of cement at Home Depot is $2.98. But yeah, food and fuel...not so much
Instant! I agree 100%!
Certain commodities will go up Big Time! But rocky along the way,
...
I think that some will go up BIG, may be will be PMs and maybe rare earths metals.
The bull market for (industrial) commodities is actually probably over - china's focus isn't going to be on building more roads, apartments, office blocks... its going to be on getting people to use the ones they have built (ie domestic consumption focus). But gold and possibly silver are a different animal. I don't see gold as a commodity - to me it's a currency, at least right now, and its probably the best/most stable currency to hold.
The ultimate shelter would be to have gold and silver and live adjacent to an Amish community - stocks, bonds, the Hamptons pale in comparison...
Could get squirrely with the Amish drinking all that unpasteurized milk and whatnot...
</sarcasm>
http://t1.gstatic.com/images?q=tbn:6jPth3IifC0IuM:http://www.urbandigs.com/kondratieff-winter.jpg
this exiter, is he related to kondratieff? bad pic, this is betta; http://northcoastinvestmentresearch.files.wordpress.com/2009/01/kondratieff-cycle.jpg
If the value of the equity market has increased 30X,
While the POG has doubled,
Perhaps the investing public has gotten the message.
Well, the thing with oil is, it doesn't do well as a store of value, because it is consumed, and because it takes a large amount of space.
And, on top of that, there is a good chance that oil is ABIOTIC in origin. Oil industry wouldn't want that to slip out. Probably why the Peak Oil disinformation agenda was so pervasive.
You know, my OJ is made from concentrate.
that's right, it's not fossil fuel, it's mineral fuel
http://www.wired.com/wiredscience/2008/02/titans-organic/
Most likely true, but that doesn't change the amount we can suck out of the ground using less energy than the oil itself contains.
Let's say it was here since the beginning, same as Titan. It would have settled to the top with the other light molecules as the earth solidified.
One interesting theory says that the original life here on earth ate crude oil directly, thereby not having to evolve the ability to convert sunshine to food. That reaction would doubtless have given off carbon dioxide, oxygen, water and other interesting byproducts.
After chewing through a goodly amount of crude, these microbes would have made it possible for their replacements to have enough carbon dioxide to start a completely different type of life form, a precursor to what we have today.
These replacement organisms would be exhaling copious amounts of oxygen, creating a potentially explosive situation. Undoubtedly there were a lot of fireworks in those early days as the CO2 breathers got a foothold.
Without belaboring the point too much more, we got to apes with Internet connectivity and an atmosphere with a lot of free oxygen, and a little loose carbon dioxide to keep the plants and animals breathing normally.
But in the process, a massive portion of the oil on the surface was literally eaten by the original occupants. More of it probably burned off in amazing fires as oxygen was expelled by the proto-photosyntesizers.
And then, more important, the sliding land masses keep pushing the surface under the mountain range next door and mixing it all up. Very slowly, very methodically and very deeply.
There's no reason to believe some magic process is still creating oil from the shale. When planets form, it's reasonable to surmise that the light stuff rises and the heavy stuff sinks.The light stuff was right on top when the earth solidified. And since there was no free oxygen in that original atmosphere, it didn't burn off or oxidize in any way.
We keep finding pools of the stuff that were under a nearby continent for a few eons, and slide their way toward the surface once again. And this time, we're here to capture it and burn it.
No, the earth doesn't have a rich, nougaty center of oil. It's an iron-nickel center with swirls of juicy crude oil near the top, trapped in various subduction zones where it will continue to be found for as long as we have creatures alive looking for it.
But the various subduction zones move at about the speed that your fingernails grow. So if you use the oil too fast, you've got to wait until the subterranean elevator brings up the next load.
Forget dinosaur goo. We had this stuff all along, just as Titan has it today.
If the dinosaurs had been a little smarter, they could have used the oil themselves. Then maybe they'd have had the technology to find shelter when the stupid asteroid hit.
"Fungi were the first organisms to come to land. Plants followed several hundred million years later"
Here is an interesting link about fungi/mycelium - pay particular attention to what it can do to oil about 8 min mark...
http://www.youtube.com/watch?v=XI5frPV58tY
Ok, best exchange (thread) of the day.
I have to start hanging around the night crew - sublime.
There's a lot more substance (ab)use going on at night...
No!
You just got to wait until gold hits a level of around $3500+ then they will say oh, if you look at the data thats where is suppose to be, in accordance with the dow. Lame
himalayan sea salt, bitches!
I like that story. I think it kinda of shows what I have been wondering about. Though we all know what SHOULD happen, the question is WILL it happen. EVENTUALLY it will happen, but are we at eventually now?
Certainly a lot of details like that to take into consideration. Thanks windows vps | cheap vps | cheap hosting | forex vps