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Gold ATMs - First In Abu Dhabi, Soon Everywhere: Gold Is Now One Step Closer To Full Currency Status

Tyler Durden's picture





 

Just in case you are worried that all those gold coins you have buried in your back yard will never be accepted as (il)legal tender, here comes Abu Dhabi with a gold ATM machine, making gold-based "currency" transactions one step closer. This is a harbinger of things to come, as people increasingly demand to transact in non-daily violatable pieces of paper. This is also the nightmare scenario for all central banks, which have to be seeing developments in the precious metal space, and finally realizing that in the absence of prudent monetary policy, the people, as we noted yesterday, will take (non-dilutable) matters into their own hands. The Fed dilemma: recognition that the fiat "race to the bottom" has to be contained (unlikely) or confiscation of precious metals (see Roosevelt executive order 6102).

From the AFP:

There's no mistaking what's in this vending machine. The well-heeled in the Gulf can now grab "gold to go" from a hotel lobby in the United Arab Emirates, when the need for a quick ingot strikes.

On Thursday, a day after its inauguration, the shiny machine attracted spectators of many different nationalities who gathered to watch whenever an enthusiast was struck with the urge to splurge on a bar of the precious metal.

Abu Dhabi's Emirates Palace Hotel became the first place outside Germany to install "gold to go, the world's first gold vending machine," said a statement from Ex Oriente Lux AG, the German company behind the vending machine.

"In addition to one-gram, five-gram and 10-gram bars of gold, the machine also dispenses gold coins," it added.

Gold rates are constantly updated inside the shiny machine -- itself gold-plated -- in the hotel's lobby, courtesy of a built-in computer connected to a dealer which sells gold online.

"This eliminates the risk premiums usually associated with precious metal trading," the German company said.

Hotel general manager Hans Olbertz said they wanted the hotel to be the first in the world to offer guests what he called "this golden service."

The Emirates Palace is often used by visiting foreign dignitaries, and its top floor is reserved for the rulers of the UAE federation's seven emirates, each of whom has his own suite.

 

 


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Thu, 05/13/2010 - 12:02 | Link to Comment Martel
Martel's picture

Finns had this stuff at the end of 80's, and I suspect it has been tried in other places, too. Sorry to rain on your parade.

Thu, 05/13/2010 - 12:20 | Link to Comment Bananamerican
Bananamerican's picture

yup. Abu Dhabi?

This has FOIL written all over it...

Thu, 05/13/2010 - 12:30 | Link to Comment Martel
Martel's picture

It can survive as a curiosity, if the vending machines are in good locations. The Finnish experiment was at the very end of a stock & real estete bull market, and the vending machine was in a too secluded place.

As for this becoming mainstream, I really doubt it.

Thu, 05/13/2010 - 16:26 | Link to Comment Marla And Me
Marla And Me's picture

Well, at least we know what they've been doing with all the gold we sent them to pay for our oil.  You didn't think they took worthless paper in exchange for the most valuable thing on earth did you?

Thu, 05/13/2010 - 13:50 | Link to Comment DosZap
DosZap's picture

Germans doing it also....................other places I think in Europe.

One thing for sure, their EMPTY today.

Thu, 05/13/2010 - 15:10 | Link to Comment Gully Foyle
Gully Foyle's picture

Hong Kong has them.

Thu, 05/13/2010 - 12:01 | Link to Comment AnAnonymous
AnAnonymous's picture

What is the difference between this machine and candies bar ATM machines?

Candies bar one step closer to full currency status?

Might be already the case for kids.

Thu, 05/13/2010 - 17:06 | Link to Comment tmosley
tmosley's picture

A lot of people junked you for it, but your criticism is valid.

Gold will only begin to regain currency status when it is used AS CURRENCY.  These machines might indicate that that is happening, or it might just act as an automatic coin shop.

If we had gold ATMs popping up all over the place, I might say that the transition is indeed real and sustainable. 

It will happen eventually, but this is nothing but anecdotal evidence.  

Thu, 05/13/2010 - 17:42 | Link to Comment akak
akak's picture

When vending machines start accepting gold, and not just spitting it out in exchange for fiat currency, THEN we will see the real move towards the reinstitution of gold as money.

Thu, 05/13/2010 - 12:02 | Link to Comment Rick64
Rick64's picture

Try putting one of those in a 7/11.

Thu, 05/13/2010 - 12:27 | Link to Comment Jeff Lebowski
Jeff Lebowski's picture

Let me know where these do get installed...

I'd like to put in a Saturday night special vending machine in the adjacent alley.

Thu, 05/13/2010 - 17:08 | Link to Comment tmosley
tmosley's picture

Eh?  You planning on robbing an ATM with a gun?

A crane and a sealable lead box would probably more appropriate.  I'm having trouble picturing that in vending machine form.

Thu, 05/13/2010 - 12:03 | Link to Comment primefool
primefool's picture

Bennie Mae is not a bit worried. HIS system has an inevitable internal logic. There is no way out of HIS system. See you can whatever you want "money" - beenie dont care. You still have to pay "taxes" in HIS money. Not any other. He is doing a bang up job in terms of his orthodoxy - which is highly documented and taught in all higher institurions and blessed by various dignitaries/Nobel laureates etc. It therefore has acceptance and credibility - well indeed it has to - amonst people who want to participate in HIS system - which is most of what we call the economy. So - folks can play all they want with gold, cigarettes or whatever else they fancy - it does'nyt in any way spoil HIS game.

Thu, 05/13/2010 - 12:21 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

Actually, I think it does spoil his game. He needs for peeps to HOLD his $FRN, not just trade for them just-in-time to write the check. Imagine if only the peeps' payroll deductions ended up being held as $FRN, and the end-of-week savings ended up squirreled away in metals. Everyone. All the time. I don't think he'd like that very much.

Thu, 05/13/2010 - 12:38 | Link to Comment masterinchancery
masterinchancery's picture

you only have to pay taxes in Z Ben's currency if you are a citizen and/or work in Z Ben land

Thu, 05/13/2010 - 14:59 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

Gold ATM's will not be succesful in the US. The average people are broke. The rich peole know where to get, where to store it, how to move it and how not to be taxed on it. (Selling less than 30k at the time.)

Yes some Joes will buy a few pieces here and there, at super high premiums and will probably sell them at their daughter's graduation, to put a deposit on a VW yellow bug.     

Thu, 05/13/2010 - 12:04 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Great, more evidence of why we should avoid this gold mania!!!

Thu, 05/13/2010 - 12:07 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

You're joking, right?

Thu, 05/13/2010 - 12:10 | Link to Comment b_thunder
b_thunder's picture

+1

if this is not a contrarian indicator (at least in the short- and intermediate-term) - then what is?

 

Thu, 05/13/2010 - 12:13 | Link to Comment BrianOFlanagan
BrianOFlanagan's picture

you cannot be serious.  How many people own gold and how many own stocks?  When the people own more gold than equities, then you have your contrary indicator.

Despite what you read here and in the media, the American public is clueless about gold.

Thu, 05/13/2010 - 12:39 | Link to Comment masterinchancery
masterinchancery's picture

In reality, a poll of my financially affluent friends shows virtually no gold ownership, let alone at the lower economic levels.  Hard to see a bubble there.

Thu, 05/13/2010 - 14:57 | Link to Comment akak
akak's picture

Stop trying to rebut Leo with logic or truth --- he is too sophisticated to be bothered by such trivia.

Thu, 05/13/2010 - 13:54 | Link to Comment DosZap
DosZap's picture

Brian,

You got it..............no matter how many facts I throw down, point to websites, I get the Deer in the headlights look from most.

Other than talking to the folks that are ON the train, I am going to stop trying to reason with friends.

Gonna be tough after the fact, and looking at them, and hearing You tried to tell me.............but, so goes life.

Thu, 05/13/2010 - 12:16 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

I'm confused.  If the Arab states got together and created their own currency, and then put in ATMs that dispensed that currency, no one would notice -- but because some entepreneur gets ahead of the curve enough to deduce that they won't and thinks that they'll go back to a traditional hard currency system (gold), that's a bad sign for the traditional hard currency in question?

Thu, 05/13/2010 - 13:59 | Link to Comment DosZap
DosZap's picture

Ex,

the Middle Eastrern Arab states HAVE had meeting's on same,,,,,,

Also, the Aryans ( IRAN), so named by the Nazi's, in WWII............

Are punching out gold coins like crazy.

Thu, 05/13/2010 - 14:05 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

Europe had them installed last year and even then some idiots were pointing to it as a sign of top.

Gold climbed $200 more. Twice.

The real top is in contrarians. There's too many out there.

Thu, 05/13/2010 - 14:17 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

I'm beginning to think this "I'll out-contrary the contrarians and be even smarter than they are!" impulse comes from not getting out much.  Today I got a Facebook message inviting me to a "Gold Party" from a chick who I know sells cheap silver jewelry in a tupperware-style scam -- turns out the party is a chance to "turn your old gold jewelry into fast cash"!

As long as the small-timers like this girl are still getting takers to trade in their junk jewelry for the fast $FRN, we have a LONG way to go.

Thu, 05/13/2010 - 18:40 | Link to Comment Nothingman
Nothingman's picture

Looking back to the '79-'80 highs in gold, the Arab oil exporters took huge losses when they purchased gold at $600-700/oz en masse, and then the controllers of gold sold and crashed the price into the $300 range.  However, I think the fundamentals (global fiat currency and sovereign debt crisis) are a bit different, this time.

Thu, 05/13/2010 - 12:11 | Link to Comment The_Euro_Sucks
The_Euro_Sucks's picture

I thought that bits, bites and paperpulp are in a maniastatus for 40 years.

Thu, 05/13/2010 - 12:16 | Link to Comment Gold...Bitches
Gold...Bitches's picture

Great, more evidence of why we should avoid this gold mania!!!

I prefer to avoid the fiat paper/electronic money mania myself.

Thu, 05/13/2010 - 14:05 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

+1000

Thu, 05/13/2010 - 12:17 | Link to Comment dumpster
dumpster's picture

leo  gold is not in a mania stage

perhaps the mania for guaranteed public funds

best to help your pension buddies find a percentage of gold in their funds

gold will go to balance out the true mania the rush to the bottom of the printing press and debt .

 

 

 

Thu, 05/13/2010 - 14:06 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

FYI, Leo buys only solar stocks.

Thu, 05/13/2010 - 18:43 | Link to Comment Nothingman
Nothingman's picture

and wind stocks!  companies that can't even be competitive with huge government subsidies... lol.

Thu, 05/13/2010 - 12:22 | Link to Comment WilliamShatner
WilliamShatner's picture

 

This is just one case in a country where gold has been valued as currency for centuries.  I also remember hearing about gold vending machines in German airports last year some time, so it's really nothing new.

Wait until these vending machines start popping up all over the place in the US, then you might be on to something there.  Right now, all I see are signs saying "We BUY gold".

The only new type of vending machine I've heard being proposed here in California is for dispensing pot. Kinda tells you a bit about how degraded our society has become.

A nation of dopers and debtors.

Sad.

Thu, 05/13/2010 - 12:29 | Link to Comment Martel
Martel's picture

The only new type of vending machine I've heard being proposed here in California is for dispensing pot

From the vendor POV, pot probably has a better margin than gold ingots.

 

 

Thu, 05/13/2010 - 14:26 | Link to Comment GoinFawr
GoinFawr's picture

Kill two birds with one stone (pun intended): find a dispenser that stocks 'Kona Gold'.

Seriously though, my friend with MS, and my other Friend's Gra'ma getting her cancer treated with chemo' (one who can again walk without crutches and the other who can now keep food down), right along side all the harmless hippies/college students playing acoustic guitar or WOW 'til their eyes bleed, think pot vending machines are a great idea.

Now take to your right wing lunacy and go have another pack of cigarettes, a bag of 'low-fat' Olestra laden chips and wash it down with twenty beers, and a handful of double Americanos, and see if you can't calm down; though I doubt you'll be able to walk, let alone see straight. Careful not to OD! Something, btw, which nobody has EVER in the history of the world accomplished smoking mary jane.

You people (BillyS, I'd give good odds that you fit neatly into the following category) with your glaring, curmudgeonly hypocrisy make me truly ill. Go elect another coke sniffer to run your military rampant around the world stirring up hornets' nests and killing your economy, along with your servicemen, 'cuz it sure seems like that is what really prangs your wangs. But sign up first, please. 

Not that your current administration stuffed with elitists/tyrants as it is is much different from its predecessor; mb the speeches are softer, but those are just an anodyne for the duped anyway.

Letters to the usual address...

Regarding the article: Great idea. We need those in the west on a large scale. Put an end to FIAT currencies right smartly that would, and bring on an new era of real money. Middle class could start rebuilding wealth again, after the last 40 years of having it slowly boiled off while they lay on their backs at the bottom of the pond.

 

Regards

Thu, 05/13/2010 - 14:54 | Link to Comment sondog
sondog's picture

Dude I think you need to puff one and relax. The original point is that where they are making gold vending machines, America is making pot machines. This is anectdotally indicitative of how lazy many Americans are and where America's attention is. Seriously pot and gay marriage should not absorb 90% of what little intelligent thought is left in America. And I'm not saying I'm against either of those.

Thu, 05/13/2010 - 15:50 | Link to Comment GoinFawr
GoinFawr's picture

"The original point is that where they are making gold vending machines, America is making pot machines. This is anectdotally indicitative of how lazy many Americans are and where America's attention is"

Bah, perpetuating false stereotypes is never commendable. Unless maybe its at least funny, which BillyS wasn't.

"90%", eh? Where you getting your info. anyway? I agree with the Gay Marriage thing being fairly low priority, but that is just my opinion, I am sure there are many who can point out some very important inferences to be drawn from its denial.

On the other hand, I think I can safely say that nobody has had their life absolutely ruined by unjust criminal record/incarceration from trying to get married to her girlfriend (at least it can't be near as many as it has been for the mary jane advocates). So I guess I don't just lump those two together in importance like you have.

 

And I addressed the Gold ATM point by expressing my support for their incursion into the NA market.

 

Regards

Thu, 05/13/2010 - 19:50 | Link to Comment WilliamShatner
WilliamShatner's picture

I guess you can say that those issues absorb our attention if you assume that the intelligent people actually get their news from the mainstream media.

I don't.  The MSM is a tool of the power elite to keep us distracted from the real issues of the day.

I remember when Yahoo News used to actually cover important topics and feature them on the Yahoo homepage.  Now it's all celebrity based fluff and social networking nonsense.

Utter rubbish, as Alan Watt would say.

Don't get me wrong, the important issues are covered by the MSM but they are usually lightly covered and buried under a pile of meaningless distractions.

You have to go to sites like Zero Hedge to get the real news of the day.

Thu, 05/13/2010 - 12:28 | Link to Comment Al Huxley
Al Huxley's picture

Did you get burned by Bre-X Leo?

Thu, 05/13/2010 - 13:57 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

No, but I did bend over and grab my ankles while Whoretel (Nortel) f*cked me real good.

Thu, 05/13/2010 - 15:00 | Link to Comment akak
akak's picture

A pose that you seem to repeatedly enjoy --- and insist that everyone else willing accept as well.

Thu, 05/13/2010 - 14:18 | Link to Comment Jack H Barnes
Jack H Barnes's picture

Leo, do try to roll this into what ever it is your smoking...

Thu, 05/13/2010 - 14:27 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Yes, I too long for a world where there is no debt or credit, and everything is based on gold (not!). Listen here you gold weenies, you're going to get smoked so hard when the world keeps moving forward and risk premia come back down to earth. Bring back your chart at the end of the year.

Thu, 05/13/2010 - 15:02 | Link to Comment akak
akak's picture

Baaaaa!  Baaaaaa!  Baaaaaa!

Really, Leo, are you a trader or a comedian?

Thu, 05/13/2010 - 17:19 | Link to Comment Jack H Barnes
Jack H Barnes's picture

Leo,

Pull up a chart of the S&P for the last 10 years...

Pull up a chart of Gold for the same 10 years...

Now thats a real BITCH, aint it?

Before you get all excited about saying, thats near the bottom of Gold Market, and near the TOP of the SPX, here is a graphic of the last 5  years.  Which, is a reasonable look back, wouldn't you say? So, tell me all about those great equity gains during your career. 

Here is a comparison of the GC Vs S&P for the last 5 years...

It appears to me, you have been fighting the tape for a good decade now...

 

Here is Beer to your patron saint,

Condottieri

Thu, 05/13/2010 - 19:30 | Link to Comment JW n FL
JW n FL's picture

Condottieri,

                  Buy High to sell Higher? orrrrrrrrrrrrrrrr? the lights are going out? whats your reasoning? for the purchase of Gold... and I ain't Leo, so be fore warned... Idiot.

 

Sincerely, JW

Thu, 05/13/2010 - 20:36 | Link to Comment Jack H Barnes
Jack H Barnes's picture

JW,

 

By way of explaination of my rational for being long GC and continuing to be bullish for additional price increases over the next medium term.  Ratio's stay the same over time, historically, between long term actual prices. 

I remember when a $1 (silver) dollar coin would buy 5 gallons of premum gasoline.  Today, that same coin has enough purchasing power to buy 5+ gallons of supreme gas.  The only aspect that has *really* changed over the years, was the fiat ratios between silver & gasoline.  Gasoline has gone from 20 cents per gallon to around $3.20 per gallon.  The oz of silver hasn't changed in size or weight during that time. 

You can do the same type of historical view of land prices in Oz of gold per acre for farm land.  Very little has changed in that ratio in the last thousand of years or so.  That acre still costs on average about 4 oz of gold, if its productive dirt.

So, if the whole game is just a timing one, which it is, in my opinion... PM's will have an invisible hand pushing them to higher prices, as long as the (FED) Fiat currencys are printing up new cash for their ever growing deficits. 

Once you see soveriegn risk come in, and a stabilization of economys start to break out, PMs will become an investment to unwind slowly. These cycles typically last around 1 full generation, so in easy terms, we are about 10 years into a 16-20 year bull market in PMs.

So yes its buy high, sell higher, until it isn't. 

Disclosure: I happen to be long both physical refined, but also physical ore reserves, unlevered.  I trade paper metals in the futures market.  I expect a blow off top in GC around 2012 - 2013 with back and forth after that for a while, until a second top is formed and the ride down again in some new currency.  I expect that the Euro cracks and is not in the form we know it today, with in 18 months or so.

Thu, 05/13/2010 - 17:21 | Link to Comment tmosley
tmosley's picture

You wanna bet a gold eagle on it?

If you do, go to ronpaulforums.com and PM me (same name).

One year from today (ie May 13th, 2011), you will exchange one American Gold Eagle (you can buy it at any time you like) for the price of one AGE from APMEX, including shipping (US$1320.40).

I leave this bet open to one person at a time (usually a paperbug troll, but in this case just a paperbug), and the last fellow recently conceded (though he never took the bet, he did admit that I was right).

Since I am so certain that I am correct, I will allow you to accept the bet any time up until two months prior to the expiration of the terms (ie March 13th, 2011).

Thu, 05/13/2010 - 14:43 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Food Fight!

Quick, everyone to the cafeteria. Leo and Condottieri are smacking heads and butting butts....er....... butting heads and smacking butts....er.....whatever.

Thu, 05/13/2010 - 22:09 | Link to Comment Inspector Asset
Inspector Asset's picture

No, I think in America thge plan is to have the ATM's accepting gold from the public and spitting out greenbacks at a steep discount.  Just drop the jewels on the scale and and hit the button.  Like the old alumimun can collecting stations. 

Only in America!

Don't forget the surgeon general's message: Don't shake the baby!

 

Thu, 05/13/2010 - 12:04 | Link to Comment SWRichmond
SWRichmond's picture

...when the need for a quick ingot strikes

GG, myself and others know what this feels like all too well.

Thu, 05/13/2010 - 12:25 | Link to Comment MsCreant
MsCreant's picture

I know I hate it when I call and my dealer has none. Meanwhile, I would want to know more about the machine. It probably knows who I am...not good.

Thu, 05/13/2010 - 12:43 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I'll be your front man MsCreant......for a price, paid in Gold of course. :>)

Thu, 05/13/2010 - 14:51 | Link to Comment Guy Fawkes
Guy Fawkes's picture

I'm just wondering if you can get the two for one deal in this machine.

 

You know the one where the candy bar is kinda hanging there by the edge and you go to shake the machine to see if it drops. Or you buy the one Snickers® behind it to see if you can get two.

I see this here ingot just perched ready to drop ... quick shake the machine!   ;o)

Thu, 05/13/2010 - 14:07 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

LOL!

Thu, 05/13/2010 - 12:05 | Link to Comment Miramanee
Miramanee's picture

This is fascinating! One has to wonder if we truly are witnessing the accelerated end to this generation's iteration of floating, fiat currency. Unfortunately for the world---and really for the billions of people in the 'middle and working' classes---the end of the fiat currency binge means austerity the likes of which we cannot imagine.

There was a somewhat silly story on the www the other day about Coral Snake anti-venom running out and not being replaced. Too expensive. Well, Coral snake bites are rare and even more rarely fatal, so big deal. HOWEVER, as a metaphor for the end-of-credit and the end-of-debt-based-consumption, this is an interesting sign post. Today anti-venom, tomorrow AIDS medications, next week anti-biotics...you get my drift.

Thu, 05/13/2010 - 12:06 | Link to Comment citizen2084
citizen2084's picture

who told you they were in my backyard?

Thu, 05/13/2010 - 13:46 | Link to Comment Sudden Debt
Sudden Debt's picture

tracing IP adress.....

Thu, 05/13/2010 - 14:51 | Link to Comment Guy Fawkes
Guy Fawkes's picture

LOL!

Thu, 05/13/2010 - 12:09 | Link to Comment Belrev
Belrev's picture

Is this an indication of an extremely bullish pro-gold sentiment. Another question would be are all those gold bars real gold? Bwa ha ha.

Thu, 05/13/2010 - 12:18 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

That might be a concern if the ATM were in a Western country.  I think they take their fraud charges a little more seriously there.

Thu, 05/13/2010 - 12:10 | Link to Comment BrianOFlanagan
BrianOFlanagan's picture

try that in America and the dumbasses will get mad that there aren't any packs of ho-ho's in the machine.

Thu, 05/13/2010 - 12:13 | Link to Comment deadparrot
deadparrot's picture

What's the premium to the spot price?

Thu, 05/13/2010 - 12:18 | Link to Comment Martel
Martel's picture

I read somewhere that it is about 30% (they vend only small ingots, max. 10g). This gold is far from becoming money.

Thu, 05/13/2010 - 12:24 | Link to Comment gringo28
gringo28's picture

exactly. that's why a gold ATM is a contrarian indicator for gold prices. the fact is every gold bubble has ended badly for those who chased it. selling 10 gram trinkets with a credit card is about as retail as you can get. retail = overbought.

Thu, 05/13/2010 - 12:29 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

I dunno.  I imagine if I'm a non-Westerner being paid in Western currency in a New York bank, living in Abu Dhabi -- I might be willing to pay a 30% premium to get real metal where I am in the here-and-now, rather than paper promises of something sometime in the future.

Competition would drive the premium down -- and I'm sure that with a little bit of a walk or even a drive, cheaper gold could be had so it's a rip-off on that level, but let's just say I don't think the impulse is a crazy one.

Thu, 05/13/2010 - 12:51 | Link to Comment gringo28
gringo28's picture

there's a reason why they opened this in Abu Dhabi and not a serious place like NYC. US consumers just want their six packs and pizzas and reality TV. gold is a trade and nothing more. certainly doesn't mean it can't run to $1,500 but let's face it, as soon as CNBC starts talking about decoupling and gold theory, it's time to bail. btw, gold futures are off $10 and copper is up 1.5%. silver is the one i still think could run more but it's looking tippy toppy too.....

Thu, 05/13/2010 - 14:56 | Link to Comment GoinFawr
GoinFawr's picture

"there's a reason why they opened this in Abu Dhabi and not a serious place like NYC. US consumers just want their six packs and pizzas and reality TV"

Are you serious? In a place where there are no 'six packs' allowed, how much more serious can you get?

There is a serious 180 blithely made in your comment gringo, seriously.

Oh, and I don't know just how deep you are short Au/Ag, but I got news for ya: If as little as 25% of the world decides its had it with having their wealth stolen via bits of paper backed only by debt containing MASSIVE counter-party risk, this PM run is gonna make 1980's look like a mole on a fruit fly, actual inflation rates taken into account or not.

'tippy toppy' belongs in your book of "Fiat Fairytales", I've heard it so often its become like a religious mantra of the 'Friends of Dorothy' group. No, not that demographic, I mean the PM perma bears; though admittedly they do share some similarities, like their faith in the Wiz, and their belief that if you just massage something often enough three times fast it has to come... true.

 

Regards

 

Thu, 05/13/2010 - 15:00 | Link to Comment gringo28
gringo28's picture

dude, chill out. why so agro? did you forget to take some off the table yesterday? "if as *little* as 25% of the world decides..." Please, when have 1.5 billion people ever done anything in lockstep? Gold is a trade and no, I am not short, but i don't have exposure through the physical or futures - i prefer the diversified miners. like i said, the fact that it is going retail so quickly (unless of course you trust CNBC), indicates to me that it's due for a pullback or at best sideways. if you haven't read Bernstein's 'The Power of Gold' it's worthwhile. PMs have a place but there are better assets out there.

Thu, 05/13/2010 - 15:07 | Link to Comment akak
akak's picture

Gold is NOT "just a trade", and anyone who blindly believes otherwise is simply a shortsighted and blinkered fool.

Gold is a vote of "No Confidence" in the manipulative paper Ponzi scheme of failing fiat currency, and a giant "FUCK YOU!" to the banksters and elites who continue to rape and pillage the unsuspecting and uneducated masses.

Gold is nothing short of a declaration of financial independence.

Thu, 05/13/2010 - 15:16 | Link to Comment gringo28
gringo28's picture

really? so my castle in the forest with machine guns and cans of Campbells is just a quiet refuge from the chaotic city noise? if so-called gold "investors" had half a brain, they'd realize that like every other financial asset, gold will go up and gold will go down. so how is it not just a trade? if you really really really just wanted to tell the Fed to screw off, why not just short T-bills? or short the DXY or short stocks or short anything that relies on the settlement process? again, there is a place for PMs but they are not the end all be all but as long as CNBC is hyping it and - oh look! - there's another 'Buy Gold' banner ad on ZH - it's probably overbought. Besides, oil has to go up before gold can make any moves at a minimum, lest all those gold-a-licious UAEites won't have any extra bucks to pluck down in their gold ATMs....

Thu, 05/13/2010 - 16:13 | Link to Comment akak
akak's picture

Again, gold is NOT just a trade, because what you fail to see or acknowledge is the paradigm shift ("phase change" we would say in chemistry) that is happening all around you.  The current and inevitably disastrous experiment with fiat currency is DYING, and nothing is possibly going to reform it. 

Gold is not just a trade, because when it rises this time, it is likely NOT going to just as quickly fall --- it is going to be reincorporated into the worldwide monetary system, as it must be, and should always have been, and which it probably only can do at a much higher real valuation that it has today.

And if you think this is "impossible", then you need to learn a little monetary history.  Pronto.  This same scenario has played out again and again throughout history when sociopathic elites have played with fiat currency, and EVERY such effort has ended in default and devaluation, and ruin for the common man.

If gold is NOT reincorporated into the new upcoming monetary system, then holding ANY asset right now will probably avail nobody at all, because we would be living in a complete totalitarian nightmare state in that case.

Sat, 05/15/2010 - 07:01 | Link to Comment honestann
honestann's picture

You just don't get it, do you?  Your castle in the forest and machine guns and gardens and machine shop are even better than gold in most ways, and most gold advocates would admit this.  Very few if any gold advocates are homeless folks living in a ditch to avoid wasting their gold on basic goods (shelter, food, water, clothing, defense... and most important physically productive facilities and machinery (that you actually [can-and-do] operate)).

Thus, what the majority of gold advocates rarely say, because it is so blatantly obvious to them that they assume it is obvious to you too, is that gold is a real physical material with value that you can trade for whatever you want or need in the future, whenever you want or need them.

And gold is NOT to make a profit, though modest gains and losses (in real terms) can and do happen from time to time as different fads, moods, delusions and psychoses become common.  No, gold is to HOLD VALUE, and to keep that value in a totally flexible form, which simply means "you can trade it for ANY useful goods when you want or need them".  Once you have your basics handled, like your castle, water wells, gardens and guns, it is wiser to keep most of the rest of your accumulated wealth in a form that can be converted into (traded-for) ANY goods you may want or need.  If you blow your whole wad on specific physical goods, and have no gold or other [close-to] universally accepted medium of trade, what are you gonna do when you find you need something BADLY to survive, or prosper, or stay efficient?

No, gold is not to profit... gold is to avoid losing your shirt as the fraudulant, fake, fiat paper non-money becomes worthless.  Gold is not to "get rich" quick OR slowly.  Gold is to hold value while everything else claimed to be "money" spirals down the toilet of history.

Sat, 05/15/2010 - 07:56 | Link to Comment SWRichmond
SWRichmond's picture

oil has to go up before gold can make any moves at a minimum

Maybe, maybe not.  Certainly not necessarily in tandem, not in markets as insane as these.  The likely scenario seems to be "hyperinflationary depression", where everything you own goes down in value, and everything you need goes up in price.  In such an environment IMO the demand for industrial goods and energy sags while the value of genuine stores of value (otherwise known as "money") goes up against paper fiat money-thingies.  As the process accelerates I expect oil to go up in "price" when priced in paper.  Oil priced in gold will probably fall in such a scenario.

Thu, 05/13/2010 - 16:24 | Link to Comment trav7777
trav7777's picture

Yeah, the debt-backed FRN will again reign supreme, as it has in its 100 year history of rising in real value against all commodities.

Thu, 05/13/2010 - 19:25 | Link to Comment MsCreant
MsCreant's picture

I like your new look. Fits you well.

Thu, 05/13/2010 - 13:26 | Link to Comment Martel
Martel's picture

If they could press the margins lower and introduce also 50g and 100g ingots, then it could work for the purpose you mentioned. As a matter of fact, an airport could be a good location for this.

An ordinary Hausfrau in Germany isn't going to frequent gold vending machines, simply because there is no inflation to speak of. Sure, cash has been losing value vs gold, but not vs a loaf of bread. The majority of people won't feel a need for gold for as long as the situation is tolerable. All the talk about worthless fiat money isn't going to change this, unless the average Joe really feels the pain of rising prices.

Thu, 05/13/2010 - 13:40 | Link to Comment AnAnonymous
AnAnonymous's picture

A non westerner being paid in western currency in a New-York bank, living in Abu Dhabi? What does this mean?

Where is that person located to live in Abu Dhabi and being paid in a New - York bank?

Thu, 05/13/2010 - 14:06 | Link to Comment DosZap
DosZap's picture

AnA,

I think he meant he's being paid in US/FRN's..............cause you can't be 2 places at one time.

At least I can't.

LOL

Thu, 05/13/2010 - 12:16 | Link to Comment RowdyRoddyPiper
RowdyRoddyPiper's picture

And this type of fun coming soon to the 7-11 near you!http://www.citytv.com/toronto/citynews/news/local/article/70567--thieves...

Thu, 05/13/2010 - 12:16 | Link to Comment sheeple
sheeple's picture

Do they take credit card?

Thu, 05/13/2010 - 12:18 | Link to Comment doomandbloom
doomandbloom's picture

Pagin Johnny Bravo..

Thu, 05/13/2010 - 12:19 | Link to Comment LoneStarHog
LoneStarHog's picture

Hey, Denninger, I know that you read these boards. You threw me off your little Market Ticker for stating in June 2008 that this was going to happen:  Gold Is Money/Currency.

Gold is becoming the NEW RESERVE CURRENCY.

It is happening and will come to the USA.

Why no Market Ticker you disingenuous douchbag?

Thu, 05/13/2010 - 12:26 | Link to Comment Rogerwilco
Rogerwilco's picture

He threw you off The Ticker just for suggesting gold vending machines?

Good for Karl!

Thu, 05/13/2010 - 13:53 | Link to Comment Apostate
Apostate's picture

Karl is just another retail type... his market is widows, orphans, retirees, and others.

What's his background? I mean, if you have a nice office and a fairly good camera, you can impress just about anyone. Now, Reggie Middleton, he's fuckin' Lando Calrissian and shit. I'm indifferent as to whether or not he makes perfect calls. 

Thu, 05/13/2010 - 22:26 | Link to Comment Inspector Asset
Inspector Asset's picture

With Reggie Middleton, the thing is gold is a taboo subject.  See, many African men have died from OGed, meaning died from wearing to much gold.  Still a touchy subject today.

 

Reggie is to into the "micro" side of things to keep my interest. 

Thu, 05/13/2010 - 12:31 | Link to Comment radix46
radix46's picture

LoneStar

 

I don't know if he is a douchebag, he seems to be pretty accurate, informed, detailed and certainly not pro-establishment (I know us goldbugs tend not to be).

 

However, I have been wondering why it is that he entirely ignores the subject of gold, especially as it is making all time highs around the world. Silver too, what with the official investigations into manipulation which could have huge ramifications if proved correct.

 

I would be very interested to know, from him, why he avoids the subject. I'm sure there is some rational reason, as he seems a fairly rational person. Curious.

 

Mr. Denninger, if you are here, would you care to pen a few words?

Thu, 05/13/2010 - 15:14 | Link to Comment akak
akak's picture

I too have been a regular reader of Denninger's Market Ticker for quite some time, and I do find his views on gold ownership both puzzling and disturbing.  He does not so much ignore gold as outright attack it, time and again, and rigidly forbids ANY discussion or even mention of it in his gulag of a forum, on pain of instant and permanent banning.  He is a strong advocate of fiat currency, LOATHES any mention of the monetary attributes or history of gold, and becomes positively furious at the slightest suggestion of a gold standard or any ties between gold and the monetary system.  Many times I have wondered how somebody who can be so justifiably anti-establishment in his analyses of the innumerable financial crimes of the power elite can be so blindly pro-establishment when it comes to the fundamental topic of monetary theory.

Thu, 05/13/2010 - 16:34 | Link to Comment trav7777
trav7777's picture

this is an easy one: he's a paper pusher.

Really, it's that simple.  I've been banned from TF like half a dozen times.  The first one was for backing him into a corner on Peak Oil.  People PMd me and said be careful, you've cornered him in this argument and next thing you know, banned.

Another time was for arguing the inflation case.  I said they'd print; he disagreed.  Bye bye.  I sent him an em as a followup saying you were wrong, I was right, now unban me.  Of course not.

He cannot accept Peak Oil and the end of debtmoney because his entire life is invested around "capital markets" which means THE ponzi scheme must continue.  Growth and "trading" only have merit so long as "the Game" continues.  Once over with, he's out of a job.

So his two alternatives are the paper game and "mad max."  There's no in between.  Argentina or Zimbabwe or USSR or Mexico or any of a number of defaulted nations with debauched currencies, even the mighty FRN's decline over the past 40, 50, 100 years...none of it changes this. 

In the paper economy, people like him, "traders" or would-be deflationist vultures, get to rent-seek.  Douchinger made his money in the .com bubble, and he loves him those bubbles.  Now that he's relatively cash-flush and living the good life, like every bankster, he wants a deflationary crash so that he can scoop up all the land and goods he wants and charge the little people rent.

Thu, 05/13/2010 - 23:17 | Link to Comment akak
akak's picture

Interesting perspective on Denninger --- thanks for sharing it!

While I still think he has written some valuable exposes on the criminal and sociopathic nature of our financial and political elites, I have taken a BIG step back from putting much trust in him overall, given some of the egregiously pigheaded positions he has taken, particularly on deflation, gold, and his unwillingness to directly acknowledge the organized crime racket that is central and fractional-reserve banking.

Thu, 05/13/2010 - 12:21 | Link to Comment SDRII
SDRII's picture

apmex sold out of krugs, maple leafs, and philharmonics 1oz coins....

Thu, 05/13/2010 - 16:36 | Link to Comment trav7777
trav7777's picture

try CNI or goldeneagle

Thu, 05/13/2010 - 12:27 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Apparently the pimps on Wall Street have been ordering tons of these:

And these:

Thu, 05/13/2010 - 12:28 | Link to Comment doomandbloom
doomandbloom's picture

that pretty girl on the ATM..how about that as well?

Thu, 05/13/2010 - 12:45 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

You certainly wouldn't lose that Mercedes in the parking lot. Unless (of course) it's stolen.

Thu, 05/13/2010 - 14:12 | Link to Comment DosZap
DosZap's picture

CD,

I would imagine the person that belongs to, has little likelihood of it being Jacked..................

The cost of not being able to offload, w/out being fingered, from boyeez in  Da' Hood would be off the charts.

 

Thu, 05/13/2010 - 14:47 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

LOL

"Stupid is as stupid does." Forrest Gump

Run Forrest, run.

http://www.youtube.com/watch?v=u7x4QwzLRaI

http://www.imdb.com/title/tt0109830/

Thu, 05/13/2010 - 16:37 | Link to Comment trav7777
trav7777's picture

It's plated.  Too heavy otherwise.

There *was*, however, in one of these dubai places, a silver Audi A8.  The body panels were actually made of silver IIRC.  Real cool-lookin

Thu, 05/13/2010 - 20:22 | Link to Comment velobabe
Thu, 05/13/2010 - 18:23 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Who are they pimpin'?  Harry Wanger?

Thu, 05/13/2010 - 12:24 | Link to Comment brodix
brodix's picture

 Gold is a kneejerk response to the problem. It's not like it hasn't been tried before and had its own problems. Read William Jennings Byron's Cross of Gold speech. 

 The problem is a debt based currency, since money is drawing rights to productivity, there is a natural disconnect between bloated debt to increase the money supply and the rewards of increasingly efficiency obsessed production. We need to develop a monetary system which rewards people for their productivity, rather than their ability to accumulate rent from other's productivity. Three hundred years ago a debt based currency made a lot of sense, since there was no economic data to regulate the growth of the money supply, other than the fact that debt tended to grow proportionally to productivity. Now we have more than enough data to regulate the growth of the money supply, as well as the ability to fully exploit an anarchic system to the point of destroying it.

Thu, 05/13/2010 - 12:40 | Link to Comment M.B. Drapier
M.B. Drapier's picture

The problem is a debt based currency

Or in other words: Britain was on the gold standard when Lombard Street was written.

Thu, 05/13/2010 - 12:46 | Link to Comment Arm
Arm's picture

That is what the uninformed critics like to point out.  True gold standard cannot exist in conjunction with fractional reserve banking.  That limited form of gold standard is better than pure fiat, but in the end of the day currency in circulation as represented by asset backed coins and bills was minisicule.

 

Thu, 05/13/2010 - 15:43 | Link to Comment M.B. Drapier
M.B. Drapier's picture

But what do you consider uninformed about this criticism? You don't seem to have disagreed with it.

Thu, 05/13/2010 - 19:43 | Link to Comment Burnbright
Burnbright's picture

Your premise is false. A gold standard works fine as long as people are allowed to fail. The problem with gold as a currency wasn't gold but fractional reserve banking which was exactly like the GLD is today. More paper reciepts than exist for actual gold in existance is fraud. Fraud has always been the problem.

Strangely it seems the same collapse in 2008 also happend in the 1930's. Although the US was no longer on a gold standard in 2008 we essentially created the same exact problems. The stock market crash of 1930's was also systemic of loans being given out to buy stock, when people defaulted on the loan the stock was taken by the bank as an asset. The problem was when the stock market crashed it became apparent that what really happend was a huge credit bubble. Although fractional reserve banking increases the money supply by its own fraction of reserves, nothing destroys money like credit which was what the stocks ended up being. Credit is a zero sum game, buy now pay later, and pay everyone did. It was unheard of leverage, and the banks got wipped out because they were left with a lot of paper assets that were worthless or at best extremely devalued. Same thing happend with MBS essentially.

Thu, 05/13/2010 - 22:05 | Link to Comment M.B. Drapier
M.B. Drapier's picture

The problem with gold as a currency wasn't gold but fractional reserve banking

I didn't imply that the gold standard caused credit bubbles, or that it is necessary for credit bubbles. Has anyone ever said so? I pointed to the classical case showing that the gold standard is not sufficient to prevent credit bubbles caused by the Lombard Street system. So far I've been told "you're wrong, the gold standard is not sufficient to prevent credit bubbles caused by the Lombard Street system". What gives?

Thu, 05/13/2010 - 23:21 | Link to Comment akak
akak's picture

Every "modern" and "educated" commentator instantly derides this comment, but I can't help but observe, once again, that if there were NO such thing as paper money, or fiat currency in any form, then credit bubbles could not ever form, nor could runs on banks due to insufficient reserves.

WHY do we need paper money? 

WHY MUST our economy revolve around credit?

I would one day like these very simple questions to be answered in a meaningful and unbiased manner.

Thu, 05/13/2010 - 17:26 | Link to Comment tmosley
tmosley's picture

Substitute "central" for "fractional reserve" and we would be in agreement.

Fractional reserve banking works quite well, so long as the depositors are informed that their money is being lent out and may not be available for immediate withdrawal.  If it isn't, the bank generally has the right to delay disbursement of gold for an amount of time pre-defined in the contract the depositor signed when opening the account.  At lest, this is how it worked during the Scottish free bank period.

Thu, 05/13/2010 - 13:47 | Link to Comment AnAnonymous
AnAnonymous's picture

We need to develop a monetary system which rewards people for their productivity, rather than their ability to accumulate rent from other's productivity.

 

How do you discriminate (and track the difference) between productivity and the ability to accumulate rent from others'productivity?

Thu, 05/13/2010 - 15:08 | Link to Comment Escapeclaws
Escapeclaws's picture

Even Antal Fekete, who is a staunch partisan of gold, does not feel that it should be a currency. He believes in something called "real dollars". He has been making the argument for sometime, based on his original idea called "the liquidation value of debt", that our current problem is that we are in a deflationary spiral and says that this is confirmed by gold going into backwardation. I find his arguments convincing when I read them--I like how he shows how reducing interest rates increases the liquidation value of debt, making the deflationary spiral inescapable.

I have trouble with the idea of buying gold right now. It is forming a very large rhino horn and its ascent in euros is almost vertical. People like GG bought their gold early on and are less affected by VTOL--vertical takeoff or landing--in the price series. When people start buying it simply because it's going up and they are afraid to miss out, that's like putting a microphone in front of a speaker--resonance. If you look at the graph of gold over the last 7 years you can see many of these parabolic peaks from which the price falls back precipitously. Better to buy it when the price snaps back across a long term average. European's are buying because the gold price is a mirror reflection of the euro's descent. More or less panic buying.

Thu, 05/13/2010 - 15:22 | Link to Comment akak
akak's picture

"Even Antal Fekete, who is a staunch partisan of gold, does not feel that it should be a currency. He believes in something called "real dollars".

This is in direct contradiction to everything I have read from Antal Fekete over the last few years, which is a sizeable record.  In fact, I have read him state unequivocably on numerous occasions that he STRONGLY believes in the physical circulation of gold coins, and in their use as everyday money.  He has stated in fact that no potential gold-backed currency could possibly remain so WITHOUT the everyday circulation of gold coins, and without them constituting a significant if not predominant bulk of the monetary stock, as the people would otherwise have no ability to withdraw gold from circulation in the face of currency manipulations that threatened the value of that currency.

Can you elaborate on or explain your statement above?

Thu, 05/13/2010 - 21:47 | Link to Comment Bron Suchecki
Bron Suchecki's picture

Possibly you mean "real bills", not "real dollars". Antal is certainly about physical gold circulating as money, he often talks about "opening the Mint to gold and silver", ie people should be able to have gold minted into coins at no charge.

Working at the Perth Mint, that did concern me as it just wasn't viable to have to refine and mint for nothing, but at the first Gold Standard Institute seminar in Australia he did clarify that people would need to pay for refining but that minting charges should be free (in that the Government absorbs the cost), on the basis that maintaing circulating gold money was similar to providing shared community infrastructure, like roads for example.

Thu, 05/13/2010 - 16:42 | Link to Comment trav7777
trav7777's picture

Debt currencies are ALWAYS a bad idea.  Just when the future becomes contractionary they are FATALLY bad.

A production-backed currency, such as real bills, is always the best solution.  Or Colonial Scrip and such things.

Back a currency with coal, gold, wheat, dentists' time, botox injections, who cares?   Just back it.  You produce high quality, your bills are worth more...let the market figure it out.  It isn't as if we don't ALREADY fix the price of wheat versus pork bellies or orange juice.

Let real producers assess versus real consumers just like a MARKET is supposed to be.  If specs enter the marketplace, let them get their asses handed.  And NO issuing of bills against goods that do not or will not exist.  No fractional creation.  Lend real capital, not money from thin air and expect rent.

Thu, 05/13/2010 - 12:28 | Link to Comment Bokkenrijder
Bokkenrijder's picture

Old news: FRAnkfurt Airport already has one:

 

http://www.shortnews.de/id/770564/Gold-to-go-Automat-am-Frankfurter-Flug...

Thu, 05/13/2010 - 12:31 | Link to Comment King_of_simpletons
King_of_simpletons's picture

Indians hold the most private gold and silver in the planet. Good to know that others are 'trying' to catch up :-)

Thu, 05/13/2010 - 14:15 | Link to Comment DosZap
DosZap's picture

King, you nailed it.

Only thing I find humorous, is they stop buying when it get's past $1100.00...LOL

What are they going to wish, when it hit's $2,500?.........</grin>

Thu, 05/13/2010 - 12:34 | Link to Comment M.B. Drapier
M.B. Drapier's picture

The problem is that automatically dispensing cash for gold is the easy part - assuming the user trusts the vending machine operator, that is. But the operator clearly can't trust the users (certainly not unidentified users paying or expecting cash) so how could a vending machine perform the reverse operation and take gold in exchange for cash, or goods or services? How could it detect bars that have a chewy tungsten centre?

Thu, 05/13/2010 - 12:43 | Link to Comment doomandbloom
doomandbloom's picture

So lets say currency is backed by Gold...what happens next?

Will it make life better or is it just changing our 'paper overlords' to 'gold overlords'?

But then people who hold large amounts of Gold are rich anyways..

very confused with this gold business..

Thu, 05/13/2010 - 13:51 | Link to Comment AnAnonymous
AnAnonymous's picture

The biggest difference will be that gold is a limited amount and that people who start with a big share of this amount are in position to channel the rest to them.

 

Thu, 05/13/2010 - 14:17 | Link to Comment DosZap
DosZap's picture

It's impossible to back the worlds currencies with Gold.

For sure impossible to back in with PAYABLE ON DEMAND.

( See ETF's)..................LOL

Thu, 05/13/2010 - 14:41 | Link to Comment jvota
jvota's picture

3 easy steps to completion: confiscation, mine nationalization, gold price inflation. 

Thu, 05/13/2010 - 12:45 | Link to Comment whiteshadow
whiteshadow's picture

shittt,,,i need to get pants with steel pockets...btw,,how do those abu dabai ppl carry those gold coins..their robes r plain white ,,thin see through,,,,

gold mania is goin too far now,,,,it wont cross more than 1500 no matter wat,,,,

Thu, 05/13/2010 - 12:47 | Link to Comment BobPaulson
BobPaulson's picture

Everybody wants something real. Chinese interest just bought Penn West (45%). In my part of the world, just about every oil and gas well in the back country has a Penn West sign so clearly they're looking to get their hands dirty with the greasy rags operations of production (not just the big sexy plays).

Thu, 05/13/2010 - 12:53 | Link to Comment John McCloy
John McCloy's picture

  This had better start scaring the pants out of the Federal Reserve. It is very evident that the Arabs next move may be to do exactly what Schiff recomended and begin to buy up all the gold and miners and storing them in a vault. Since they cannot rely on oil till the end of time purchasing actual money in gold, silver or platinum with the black gold woulod spin them on their head. Keep in mind one of the primary hurdles for the price of gold is how unavailable it is in the U.S. in a barform like at a local Target or bank. The moment these hit stateside the Fed can have a real issue that is beyond their control. Furthermore someone is going to upset the entire balance and shortly and go to a gold standard and the moment that occurs the U.S. losses their reserve status.

Thu, 05/13/2010 - 13:24 | Link to Comment DalFin
DalFin's picture

Who was the economist that said that he thought there should be competing private currencies, rather than our government run systems?  F. Hayek, if I'm not mistaken.  Perhaps he will be vindicated in the end.

Thu, 05/13/2010 - 13:30 | Link to Comment Martel
Martel's picture

Milton Friedman plugged that idea in "Free to Choose".

Thu, 05/13/2010 - 13:33 | Link to Comment Observer
Observer's picture

Those who hold gold to maintain the value of their hard earned money can do so only in secret as seen by the writer's reference to President Roosevelt's executive order 6102 confiscating all precious metals. The best way to maintain value of our wealth is to hold it in different instruments of value, precious metals among them. This is very similar to the first principle of investing, diversification or else we can get easily wiped out by a 'black swan' event namely confiscation.

Thu, 05/13/2010 - 16:45 | Link to Comment trav7777
trav7777's picture

never held narcotics, have ya?

Bans invariably "wipe out" everyone, right?  No drugs comin across the border, no weapons, never were speakeasies...

Thu, 05/13/2010 - 16:52 | Link to Comment akak
akak's picture

:-)

 

Far too many people (not necessarily denigrating Observer here) simply cannot see past the limits of the cages into which they are forced to exist by their overlords.

Thu, 05/13/2010 - 13:39 | Link to Comment Tripps
Tripps's picture

why would anyone SHORT real money/gold...

 

paper assets are the bubbles

Thu, 05/13/2010 - 13:49 | Link to Comment seventree
seventree's picture

Very annoying when you put 12 (or 15 or 20 whatever) $100 bills into one of these, and the spiral rack goes around, and it just hangs there...

Thu, 05/13/2010 - 14:00 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

Thanks for the laugh. ^-^

Thu, 05/13/2010 - 14:08 | Link to Comment geminiRX
geminiRX's picture

Just bought 30oz more silver today. Things are getting uglier by the day.

Thu, 05/13/2010 - 14:15 | Link to Comment Zam-Man
Zam-Man's picture

That's just a vending machine.

If it were an ATM machine I could make gold deposits and check my gold balance.

 

Thu, 05/13/2010 - 14:20 | Link to Comment ApplesConspiracy
ApplesConspiracy's picture

Strangely enough, my local news just ran a story today showing old people flocking to the pawn shops in droves to take advantage of the record market prices and SELL their gold jewelry. 

I felt sorry for them because I can't imagine they got a good price.  And should things take a turn for the dire, they will be woefully unprepared.

Thu, 05/13/2010 - 14:33 | Link to Comment ExistentialSkeptic
ExistentialSkeptic's picture

Just another sign that all is going according to plan -- we are still living in a oligarchy, yes?

Thu, 05/13/2010 - 17:30 | Link to Comment tmosley
tmosley's picture

Pawn shops generally give much better scrap prices than Cash4Gold type places.  Bullion dealers might give a better price, but not by much.

You probably won't see anyone selling bullion or coins in this manner.

Thu, 05/13/2010 - 14:30 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Big swinging gold dicks:

 

Thu, 05/13/2010 - 16:56 | Link to Comment akak
akak's picture

I'd have thought that you'd have more muscular calves, Leo --- you know, from all that bending over you do for your Wall Street buddies.

Thu, 05/13/2010 - 20:24 | Link to Comment velobabe
velobabe's picture

your f*cking hilarious.

oh, i kid the lion†

Thu, 05/13/2010 - 17:38 | Link to Comment Jack H Barnes
Jack H Barnes's picture

Leo,

Ya know what they say...

"If ya cant beat them, ... "

Let us know when you go all in GC around $2,500..."

Thu, 05/13/2010 - 14:33 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Speaking of vending machines, Barry hit up the beer machine before his speech today.  Barry, being drunk does not make you more of a working class hero.  It just makes it harder to read your teleprompter.

http://www.cnbc.com/id/24596546

Thu, 05/13/2010 - 15:04 | Link to Comment OdinsBeard
OdinsBeard's picture

It's funny how some jump on the gold/silver price falling slightly since yesterday - but just remember for those in UK, $:£ is currently down by 1.1% and gold only down by 0.7%.  Which of these is currently the worse store of value?!

Thu, 05/13/2010 - 18:29 | Link to Comment Mr Lennon Hendrix
Thu, 05/13/2010 - 19:43 | Link to Comment JW n FL
JW n FL's picture

Is it just me or when people are jumping up and down screaming rally.... isn't there supposed to be some UPWARD! movement?

 

How about just a lil bit of UPWARD! movement?

 

No UPWARD! movement and in fact DOWNWARD! movement is not a rally! well unless you are a Gold Bug!

 

I read above... "Stupid is, as Stupid Does!"

 

Hurry... Limited time only!!!

 

Buy into the Gold Bubble... 

 

But hurry! before prices dip any lower!

 

Don't be left out!

 

Don't be one of those who Bought Low to sell High!!!

 

The end is near... we are waiting on your call...

 

Republicans, Evangelicals and Sheepeople get here fast!

 

Before...

 

The Uni-Bombers, Rapture Crowd and / or other idiots steals your top spot!

Thu, 05/13/2010 - 20:37 | Link to Comment gringo28
gringo28's picture

It almost reminds me of dotbomb mania frankly. I like PMs but I like materials better. China just announced plans to spend $146b expanding subways over the next 5 years. It's not the asset as much as the velocity and flow of capital. What I find specious about the whole argument is that gold isn't special because it is rare and finite but because people say so. As to rarity, I'll take palladium, platinum or any of the rare earths over gold any day. Crowded doesn't even begin to describe gold at this point. I know I know, this time it's different......

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