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Gold: The Currency of First Resort
h/t Jing
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"Gold and silver are not by nature money, but money by nature is gold and silver." -Karl Marx
Ditto.
I believe Mr. Karl Denninger's Aurophobia affliction should be documented in a medical journal.
Karl loves gold... gold donors that is.
I love marmite.
I love vegimite.
I think you are both aliens.
Neither marmite nor vegemite is sold around where I live (so far as I know --- I don't exacty seek them out, to put it mildly), but should I ever get the hankering for either of them, I could always mix up some used motor oil with the burnt crumbs from the bottom of my toaster along with some road salt residue to make a very respectable facsimile of either one.
Marmite and vegimite are alright. But for a shi'ite, this food law is outtasight!
http://www.jihadwatch.org/2009/08/afghanistans-no-sex-no-food-law-for-shiite-women-goes-into-effect.html
+1,250
I love licking it from my ingots!
Denninger may not like gold, but he's definitely on our side. Few have written more frequently and loudly about how the banksters (and the politicians that they have bought) need to start being put in jail for creating the mess that we are in now.
I agree. He's not a villain, even if you think he's wrong. I have learnt a lot from him, and quite often he makes great points. He has exposed to many how much theft is going on, and how broken the system is. I don't think KD is right about gold, but who's to say, perhaps he is (maybe in the short term). Time will tell.
Mike Malony just uploaded this video explaining how gold and silver should be used in the future, should we ever really fix the problem.
http://www.youtube.com/watch?v=VHNZ2Dd7NfU&feature=player_embedded#!
Problem is, NO system is foul-proof: gold/silver coins can be devalued just as paper money (think Rome reducing silver/gold content in coins, people clipping gold coins, etc.); same goes with a gold/whatever standard: nothing guarantees there will be enough to back it up (think GLD, ETF, Tungsten!). In the end it all boils down to honesty: if/while it's there, ANY system will work; else, NONE will. Serial numbers on gold - seriously? - news flash: paper money already uses serial numbers...
In 1903 family income and expenditure balanced around $700-800 (gold standard dollars) per year (for a typical family.. Today it balances around $50,000-80,000. IIn 1964 a silver quater would buy a gallon of gas. Today a silver (pre 1965) quarter buys a gallon of gas. A current government issued quarter buys squat.
http://www.gold-silver.us/what_silver_gold_buys.html
Hey Joe, were you the same Joe Sixpack doing snail mailings of documents whether Marines would shoot on American citizens in light of Martial law? Maybe around 1997-99? And I think there was info in the packet regarding the camps that were being set up under Reagan and Ollie North. Can't remember what that operation was called.
No. That was not me.
I want to have a ménage à trois with gold and this blog.
Who's got my shrooms?
How about some nice manicured, sealed, nugs. They should be good for some bartering. Shrooms, not so much.
can a brutha get a 1/4?
Sweet!!!!!!!
I still think Gordon_Gekko wrote the best paper on gold a month or so ago.
He wrote that time is short, buy physical gold ASAP.
Anyone who has a lot of money but no gold would be wise to diversify into some gold as quickly as possible.
I agree with you on both accounts.
Gordon's contribution is destined to be a classic. This piece above is very good as well. Funny thing about it is that it really doesn't add anything new. For those who have been following the precious metals developments over the years (historically, ages), the article just bolsters an already firmed up view. Not that that is a bad thing. It is good to have these posts regardless of their repetition as the information is new to many. Welcome aboard!
Yes, there is nothing really new here. However, it is a well put together summary of Gold in terms of how and why it is valued as it is today. A good read.
Good to see people are finally getting the dicks out of their ears and starting to buy gold and silver (and realizing THEY are currency) not Federal Reserve notes!!!
Wanna short gold? Why not just go to the train station pull down your pants and bend over in front of a speeding locomotive because like that experience, the gold bull train will plow right through your asshole.
Yours Truly,
Nathan Wind
"Good to see people are finally getting the dicks out of their ears...."
That's either one big ear or one small dick. :>)
I once knew a man from Nantucket...
LOL
So is WeeWilly's willy wee?
Or is WeeWilly's ear wee?
Answer quickly, don't think, just honestly answer. :>)
Mother @#$%^ Goose!
Is WeeWilly's willy wee?
Some men walk up and put it in. I put it in and walk up.
I'm just sayin...
there was a study comissioned by the mogambo which traced the geniology of all the FED governors back to nantucket, even Janet Yellen
The doctor told me not to use anything smaller than my elbow...
The saying is anything smaller than your fist... but elbow works
Why can't it be a big dick and a really big ear?
Awesome!!!!!!!!!!
Jim Cramer needs to say these exact words on his show. That would make this whole mess worth it.
well, in the pursuit of gold, everyone should also look at the shares, what the big banks have done there to cap the prices of the stocks is just about as outrageous as the metal itself.
there are many solid companies selling NOW for the same price they sold at when gold was 500, 600, and 700. That's right.
Anything that is not high visibility -- like GG has been kept down and slammed down hard on any spike over the last four years.
And, keep in mind, as the gold price goes higher, these companies (with their inventories) just become stronger, and stronger, and stronger.
ah, what a web Ben has woven, eh?
That situation pisses me off to no end...
I just don't understand how they can keep the charade going so long.
I can give you around 1000 trillion reasons: derivatives.
This is exactly the condition of many a listed gold miner. What happened at the turn of 2002, the naked shorting over gold stocks collapsed, resulting in much higher gold stock prices. Once the gold price corrected, however, many gold mining stocks receded and fell under the same regime of naked shorting the stocks.
Naked shorting in the listed gold stocks is legal outside the U.S., though I doubt if any naked shorting is really looked after there. Naked shorting positions are dependent on leverage to settle the account, and when the discount rate is declining in the face of a rising gold price, two fundamentals are at work against the sell-side broker.
If there was a movement into gold mining shares of any quantity, many gold mining stocks would see strong appreciation from the simple fact that over leveraged sell-side brokers who are in the banking sector will have to buy back all of the shares they didn't own and sold into the market for the last three years without owning a single security.
Added to this, there has been no confiscation of bullion anywhere at all in the world, so people would prefer to own bullion as its less risky, while they look at gold mining shares as having extreme risk. They have to mine the gold and refine it before it can be sold and confiscated, so in terms of risk, owning bullion solely without obtaining leverage to the gold price the with gold mining shares may be misallocating risk.
But I have to say that gold mining shares as an investment have been nightmarish to say the least.
This chart should clarify the argument:
http://blogs.stockcharts.com/chartwatchers/2010/02/gold-miners-vs-gold-f...
-F6
Fran Six,
Yep, and with our current admin, Nationalization, is a REAL possibility.(Chavez style).
Like we have all said(mostly all), Physical, or you do not own shit.
ETF's are like FRN's....when the rubber hits the road.
From Idiocracy- 'I like money'...todays only operative phrase.
what about electrolytes?
I crave electrolytes. I like money. It's a subtle differnce.
Why doesn't my gold grown when I feed it electrolytes?
Use more "salting" it works for the big banks.
If I was one of the powers that be and everything i said and did was for the purpose of deception of the masses, I'd be paying all of my MSM outlets to publish stories vilifying gold. Helps shake lose the morons who don't know the truth.
I'd go even further to say that I would manipulate the markets as best i could by papering over the fact there the supply of physical gold is shrinking at an exponential rate.
but thats just me
Aurophobia, bitchez!!
Be very afraid. There's G-ld in them thar hills!
Aurophobia often gives way to bouts of Auromania. Those bouts, like fever, have a rapid and unexpected onset and often rise to a "fever pitch".
Do we get to have Aurophilia before Auromania?
Now I know what's wrong with Baghdad Bob, I mean Jon Nadler. Thanks for the insight Tyler.
Show me a new economic paradigm and I'll show you a bubble. Show me an army of investors singing hosannahs and I'll show you a Ponzi scheme.
Karl D. could not have said it better. It's the negative view that prevents true progress in developing a gold-backed currency. Denninger has the belief that if the world was fair and everybody would do right then everything would work as planned. It's the plan, not the medium of exchange, that causes the current situation. Come out into the light and give your all to get this fiat crap crashed.
I guess i would disagree... Its the medium of exchange that enables the "plan" to be executed. Without control over the medium of exchange, the "plan" doesnt work.
Honest medium of exchange limits the people who are unfair, IMO. Because we cannot bailout and proceed down a never ending path of debt.. With honest money, they are forced to purge the misallocations in the economy.
We are on the same track here. Thanks for your reply. I was just pointing out that Denninger wants everyone to abide by the "ideal" system, without dishonesty and guile. Won't happen. Therefore, the medium of exchange almost becomes irrelevant in the face of a thieving banking community. All monies can, and will, be corrupted. The gold standard was called a barbarous relic, not because gold is not money, but because the gold standard was corrupted. See, I think we are alike in the final analysis.
Any idea what TIPS do in hyperinflation. Is there any other choice for 401k dollars?
In service distribution or non-hardship withdrawal. Roll $ to IRA. Purchase PHYS.
Do NOT trust Tips. The US govt will ALWAYS underestimate the rate of inflation just to screw you and everyone that needs a COLA.
If your 401k allows, do an in-service rollover and buy PHYS.
If your 401k allows, do an in-service rollover and buy PHYS.
This is a good idea. You can call your accountant and look into rolling it into a Roth 401k take the tax hit now deversify into metal stocks/ETF and then (if TPTB don't change the rules) cash out with no tax penalty later.
That s what I'm looking into with some thrift plan money my wife is inheriting. Another idea I had was to take a nice big loan on it and buy physical.
Today's summary from Dan Norcini on JSMineset. All gold holders/traders need to understand the depth of commitment by JPM et al to suppress price. 1250 will ultimately fail , as will 1289, 1350 all the way thru 1600.
Posted: Jun 17 2010 By: Dan Norcini Post Edited: June 17, 2010 at 2:34 pm
Filed under: Trader Dan Norcini
Dear CIGAs,
Gold is running as the “anti-Dollar” once again in today’s session moving higher as the greenback drops lower. This comes on the heels of the US equity market showing weakness as a result of the horrific unemployment numbers and a very disappointing Philly Fed Factory Index reading. Two weeks ago, this would have sent the Dollar higher as a “risk averse” trade but now the Dollar is moving lower on lousy US economic news. My how fickle the sentiments of investors has become – “She loves me; she loves me not”. All of this is serving to reinforce the skepticism that abounds in regards to any so-called “recovery”.
One gets the distinct impression in watching the gold price action that the metal is beginning to simply trade on its own merits, independent of the conflicting cross currents swirling hither, thither and yon. As mentioned previously, nervous, uncertain investors want something tangible and fixed in the midst of this maze of perplexity. Gold is what it is – the pinnacle of safe havens and the ultimate in wealth preservation. Were it not for the price capping game that continues at the Comex, it would be considerably higher for in real terms (adjusted for inflation) it remains nearly 45% below its all time high priced in US Dollars.
Gold made several attempts to crack $1250 and hold above that level but the price riggers were busy absorbing all of the bids in their efforts to contain the metal. There was good buying throughout the entirety of the session, with decent volume although it tapered off when the metal could not push convincingly past $1250. I would like to see a 100,000 + volume reading during the New York pit session on any upside breakout. That would indicate that we have buyers serious enough to take on the infernal bullion banks and their pestilential non-stop selling charade. Open interest indicates that we have some room for new buying as we are still well below the recent peak above 600,000.
I should point out here that gold did put in a RECORD HIGH CLOSING PRICE for a continuous front month contract. That is impressive technically and favors the bullish cause, in spite of the obvious capping attempt by the banks.
Good. Demand Pressure continues to increase.
Gold is Currency in VIDEOGAMES.
http://fofoa.blogspot.com/2009/12/gold-ultimate-wealth-reserve.html
And what is the difference between a currency and a wealth asset? Time and appreciation! The main difference is the amount of time that each is held. A currency is earned and spent in a short timeframe and wealth assets are accumulated and held for longer timeframes. Here is a list of some common wealth assets:
Endurable Wealth Assets
Real Estate
Fine Art
Antiques
Collectibles
Gold
Other Precious Metals
Gemstones
Rare Classic Cars
Securities
Stocks (Equity Ownership)
Bonds (Debt Ownership)
CD's (Currency Time Deposits)
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.
"Gold is Currency in VIDEOGAMES."
Bioware's two latest hit games, Dragon Age and Mass Effect 2, have you running around in both old times and future times, collecting metals for trade and for resources.
So true. I found it hilarious that I had to collect platinum, palladium and rhodium in ME2. I figured I was one of the three people playing it who had ever heard of them before.
OTOH, DA is the stingiest game I've ever seen. 100 gold is a fortune in that game.
Gold and silver are not rising.
Fiat paper money is falling, trying to keep pace with Bernanke's debasing.
This is only roughly true in concept, for initiates.
As a fiat currency falls out of favor, then, yes, everything goes up in relation to that currency. However, if the fiat currency was used to inflate certain markets (say housing) while hindering trade in other markets (say silver), then these markets will re-adjust in relation to one another.
This is why silver has some catching up to do in terms of gold.
So what's the over/under on Cramer calling himself a gold bug today?
Buy,Buy,Buy...the yellow metal.
Upon seeing this post, I predict the imminent descent of the anti-gold locust-trolls, on their unquenchable mission to devour every positive ZH word in favor of gold.
I think I hear the clattering wings of JohnnyBravo, Anarchist and Arm even as I write!
I have not seen those guys in a while. Maybe:
1) dumpster blew Bravo away but good a few days ago
2) the Tylers kicked him (them) out of ZH
Who knows? Although I liked having Bravo around when he wasn't being mean. I REALLY liked how ever combative dumpster & you, akak, took him on. Great fun.
Intellectual Prooperty is the real gold in a free country that protects it. It beats inflation and takes part rather than takes away. The great metal hope is hard to buy without attracting notice and harder to sell without more notice. It helps very few to mine it and then re-bury it. The costs of protection and circumspection without considering political and jurisdictional risk are profound as it is historic. Diamonds fit better sewn into your unwashed and worn clothing when in flight. I'll take Intellectual Property anytime; the smart monkey networks rather than dig holes and sit watch.
ToNYC
I posted something from Kosovo. The guy claimed that Gold was relatively worthless to him but foriegn currency was the most useful.
You can't eat intellectual property!
Well, sure there are exceptions but I think Monsanto has the IP rights to all of those locked up already...
</sarcasm>
AAPL and GOOG sell very well, as do DLB for instance and made nce multiples. MONsatan and MSFT exist for me to harvest with put spreads: evil and over-the-hill, now self-serving IP works in reverse effect. Gold is best as a metric, a narrow bridge to watch, connecting confidence and reality of fiat paper, but not so good for a freeway. The golden rule rules best more by observation than mass consumption.
Intellectual property is too easily pirated and duplicated. With enough legal resources, any patent can be voided.
Gold . . . not so much.
March 6, 1933 comes to mind so much.
Intellect dies with the host. Gold will remain passing wealth to offspring.
I'm sure the children of the world would rather have gold than pathetic blog posts as inheritance.
I love gold long-term, but I just don't see these little $10-15 gains being the impetus for a rise to $1,500.
I agree with Rosie in thinking that the price will drop short-term. I think the real sustainable new highs will be reached through $100-150 daily price swings at some point down the road.
Back in 1979-1980 it went from $280-850 in a matter of 6 months. It's only a matter of time..there are way too many grey swans out there (LBMA, GLD, sovereign debt, etc) waiting to hatch...
Incorrect, Troy.
For the Evil Empire, a move through 1254 constitutes a move beyond the map, "beyond here be dragons". Every single price-capping short will be under water. 1254 MUST be defended. When it fails...and it will, this is why today's $15 move IS important...the Empire will have to fall back to 1289 or even 1350. So, yes, today's gain might be an important step on the accelerating trip to 1500 and beyond.
Now for some comedy GOLD. When Democrats eat their own, or why is Keith pissy over something so mild?
Olbermann leaving Kos community?
http://www.dailykos.com/storyonly/2010/6/17/876760/-Check,-Please
I was checking in tonight to see what was new, came across a diary trashing first me and my colleague Rachel, and scrolled through it shaking my head, sadly, until I got to one comment that leaped off the page.
Keith Olbermann is a contrived hack. Much better as a sports reporter.
+100. Every now and then I watch him for shits and giggles. I can never last for more than 10 minutes. Arrogant, condescending bastage.
Olberman is a cunthole that should be flogged to death with a donkey's flaccid penis....
Of all the douchebags in the world, Olby is the biggest douchebag in douching history.
Yup -- we have that. Aisle 2, next to the mayonnaise.
Develop a skill that you can barter with.
"Physical labor bitches!!!!!!!!!!!!!!"
:)
Marley
Land Bitches!
Will write software for Gold (Failing that, I can build some furniture for ya!)
I've said this a few times, believing that perhaps some very smart wealth would benefit but so far, I don't see it happening. Maybe I'm missing something but it seems like the following is true.
1. Silver has massive leverage to move Gold prices.
2. Taking delivery of physical silver has massive leverage on silver prices
2. Silver is a very Tiny Market.
3. Silver is Trading at about 1/6th of its inflation high.
4. Silver is in increasing demand for industrial and technical applications
5. Silver is much more rare than gold.
6. Large upward movements in the silver market will cause large increases in the gold physical, ETF and derivatives markets.
What is missing in this paradigm and why isn't anyone actually utilizing these concepts?
Gold is first in the minds of governments and billionaires. Silver is for the little people (that would be you and me)...at least until Gold gets too expensive or the no one will sell physical Gold.
Buy yes, the real play is silver. While Gold could 10x in price, silver is the moonshot at 100x. The only question is when.
Yes, Yes, Yes, don't stop!
Good points, but:
A. Silver much easier to counterfeit versus gold.
B. It's harder to carry same amt of wealth on your back using silver if you have to go away from the crowd approaching your house.
Help please if you can. I'm looking to buy, test for purity, then melt down scrap gold and sell it in bulk (to someone). Can anyone figure out who or what company would buy in bulk from me near the spot rate? I'm searching the net now.
In other words. Who do the guys on tv, who buy and melt, sell to? They must be able to sell to someone and get better prices than they offer.
Thanks.
P.S. The decoupling is on again.
Tulving. http://www.tulving.com/
Get ahold of Bao Ngo at Colt Refining. (603) 429-9966 www.coltrefining.com
If you are in Canada, give me a call.
I do a large wholesale business in addition to my "retail" buying operation.
www.londongoldbuyer.com
I HOPE YOU SOME OF YOU GUYS REALIZE WHAT CASH SETTLED QUARTERLY INDEX FUTURES AND OPTIONS EXPIRATION AT 9:30AM EDT TOMORROW MEANS, WITH THE USDJPY GOING SOUTH WHICH WILL CAUSE ASIA TO SELL OFF HARD TONIGHT..
THE SPX WILL FALL 30-40 HANDLES OVERNIGHT.
I hope you are correct.
The algos still managed to close everything up today, however.
promises, promises.
I've already started scrap booking recent worthless rainbow bright fiat currencies from around the world!!
Could be worth some dough on eBay in the future. A tear jerking video session talking about "...remember the old good old days when these were actually money?..." Then use the paper script to blow your nose.
Can I use that?
How about an examination of the future role of gold in our monetary system?
http://www.zerohedge.com/forum/freegold
I expect many ZHers would like to consider our future?
We have fairly well discerned the current state of things.
The future is a return to honest money; Freegold.
Nuinut, the problem I have with this "Freegold" concept as related by FOFOA (and yes, I have read all his blogs on the subject), is the presumption that ALL existing debts will necessarily be backed in value by gold in the event of the collapse of fiat currencies (the latter of which I assume will occur). Isn't it FAR more likely, as in fact history has borne out time and again, that most existing debts under such a scenario will either be repudiated, inflated away or otherwise dissolved? I simply fail to grasp why we should expect the existing massive debt structure of the world's financial system to survive the death of the underlying fiat currencies.
Given that there is utterly no historical precedent for the value of gold to rise 50-100X from its current value, I find the burden of proof to fall on FOFOA in making such a case. Extraordinary claims require extraordinary evidence.
(I should add that I am as pro-gold as anyone you will find on this site --- I merely question FOFOA's "Freegold" theory as I understand it.)
The "precedent" will be set in the here and now. This is how "historical precedents" are set that become part of the historical record.
Akak said:
The monetary (debt) plane is like a net wrapped around our planet. When this "net" burns away, nothing will have physically changed. Only legal claims to "wealth" will have changed, and peoples perceptions will be forced to follow this change.
Akak, are you familiar with the concept called "transfer of wealth" that happens when currencies collapse? Yes, all paper will burn. If you are holding your wealth in debt paper you will lose it. When the debt slave quits, the value is gone. And when the secondary market disappears, the value is also gone.
No "existing massive debt structure of the world's financial system" will "survive the death of the underlying fiat currencies". But in fact, I think you have it backwards. The currencies will be brought down by the collapse of the debt structure! FOFOA has been writing about this for almost two years. I find it hard to believe you have read all his posts.Anyone wanting to hold the current 'value' of their debt needs to convert it to (physical) equity before the debt collapse. Equity in stocks will not necessarily fare well, as many companies that have issued equity have also issued debt. Debt markets being the senior, in a writedown, of whatever size, debt holders take a haircut, stock holders take the fall. Equity via hard assets is clearly the better position. Physical gold will be different.
Only gold will recapitalize the system. Why do CBs hold physical gold? Why do the wealthy hold physical gold?
Gold will inherit the purchasing power lost by paper in its collapse. The physical world will still exist. It will no longer be exchangeable for debt backed paper, though.
Gold will assume its role as the wealth consolidator, a role parallel to all paper, and floating against that same paper.
The existing debt structure will absolutely not survive the demise of fiat. That would be a contradiction in terms.
There was no historical precedent for the collapse of Roman money and the Roman empire. There was no historical precedent for the collapse of John Law's Mississippi Company. I don't think FOFOA has claimed Freegold to be a precedented event, at least not on any timescale under 1000 years. As for the extraordinary evidence required,
a) I think he has given sufficient reason to believe this will happen, and
b) I don't think he is building a legal case. He is not even advocating for some specific action. He is only reporting as an interested observer and a guide to those who want to see what he sees.
There is likewise no historical precedent for the distortions in the perceptions of golds value, and of its role in the monetary system. Your statement would seem to presume a level playing field from which such 'rises in value' could be compared?
One sure thing is that prices and values today are not properly balanced. And their imbalances (against each other) reflect decades of government-sponsored malinvestment and manipulation. FOFOA has indicated three roles that a metal with monetary qualities can be priced in:
1) a circulating currency,
2) an industrial commodity,
3) a wealth consolidating asset.
He has shown how supply, demand and velocity factors related to these three roles can vary the value by at least two orders of magnitude, maybe three. So as far as a "proof" goes, I think FOFOA has done well with logic. What else do you expect for an unprecedented event?
I would point out the manipulation of the perception of gold, or at least the gold standard, which might as well be gold in the public mind, as a "barbarous relic", and its previous status as the lynchpin of the monetary system reduced that of a 'commodity', alongside orange juice and pork bellies.
The clear and long term governmental interference in the gold markets, to suppress the 'price' of gold, and admitted or inferred as such, since at least the 1960s (that 50 years, now).
And the largest, most insidious, and least understood of golds disablers, the paper gold market.
All these factors, themselves without historical precedent in size if not in fact, serve to distort the actual starting point from which such a comparison could be made.
We are also in an unprecedented time for numerous other reasons. The modern world is far removed from the ancient, in more ways and greater magnitude than I could list.
I fail to see how any burden of proof falls upon FOFOA. The factors involved in making this case are numerous, and for all intents and purposes, unknowable.
Indeed. That places comments, at least.
Freegold is NOT a suggestion; it is not something that will be proposed and subsequently debated. Freegold is where the system is naturally and spontaneously going, independently of what we think of it.
You find there's no historical precedent for the value of gold to rise 50-100x?
Although hyperinflation started off gradually in Germany in 1922, it only took one year to go from about 100 Paper Marks for one troy ounce of Gold to 1 Trillion (yes, with a "T"). One year. One!
Not only CAN it happen, it HAS happened! Hungary, Zimbabwe, Weimar Germany...the coming hyperinflation doesn't have to match these to change us for a generation--it only has to be 10% as bad as the world's already seen plenty of times.
Actually, during those hyperinflations, it was the PRICE of gold that rose by factors of hundreds, thousands or millions, NOT its value. Price does NOT equal value! I never fail to be amazed at how many people cannot grasp that simple fact.
And, in an absolute stunner of stunners, the Algos successfully closed the market higher today.
No.........! That's unbelievable. Truly shocking!
Headlines like this ought to help our cause overnight.
http://www.reuters.com/article/idUSTRE65E5NH20100617?type=ousivMolt
Remember when people used to post as anonomus on here and when gold was fighting to break the 1000 barrier.
Yes, last year - this time. And the year before that, this time.
That's the real beauty of it all - a solid floor at $11xx even $12xx.
Lets see, I can buy a tiny smidgeon of gold for approx $1300.00 or I can buy a crapload of:
a) Toilet paper
b) Writing paper
c) Oil
d) Solar panel
e) Dried foods
etc.
Tough choice, huh. But cash negative Americans have lots of FRN's laying around to splurge on gold. The gold cheerleading is like the dollar short that was so popular around here for a long time. No 'truth' stories about that anymore. I wonder why?
If you happened to have $50,000 or $200,000 or $500,000 in savings that you wanted to protect from the inevitable inflation and/or currency collapse, you are going to need a GIANT "crapload" of any or all of those things to hold your value through the crisis --- and good luck easily liquidating them afterward to recover your savings.
And who says that holding any or all of those things, and gold, is mutually exclusive? I think you would find that most pro-gold people are already FAR more prepared for temporary crises and economic disruptions that the mass of complacent JIT sheople.
akak,
Depends on the VALUE of it, doesn't it?
The Crapload?.
Would you rather have a SHOT at recouping, or be DOA?.
Try liquidating FRN's, when their either devalued 5/10/20/100 to one/more, or a new currency replaces the OLD entirely......a very likely scenario, if the SHTF.
Insurance............as for liquidating, for 6000yrs, humans have been doing it.
Like the ols Mkt saying, rather be a year early, than a day late.........
+ $1245 akak
I think it was you who opined one time that the only people trashing gold are those who don't have any money (dumpster too I think).
Not having some of your money (in the amounts you mention) is very unwise.
You don't have to be "all-in" on gold. 6% is much more comfortable for me than 0% or 100% in gold.
DCRB, I may have said that, but don't remember it.
I think it is safer to say, though, that those who trash gold ARE those without any real knowledge or understanding of financial and economic history, or history in general. And let's face it, most Americans are woefully ignorant on the topic of history, and even worse, stubbornly and arrogantly proud of that ignorance.
I find Starving Lion to be one of those who is stubbornly proud of his ignorance. Comparing toilet paper to gold is one the dumbest things I've ever heard.
SL,
Because Europe went in the shitter, that's why.It will be going back down soon enough............
Why do you assume that people who advocate gold don't have those things already?
We took down quite a bit of our savings to stock up on a year's worth of tangibles: food, hygiene and medical supplies, off-grid equipment, etc. We did that before we even considered starting in on PMs.
Now, the money that we did push towards investments is going to silver and gold. It's just common sense.
Beans, gold and guns, with plenty of ammo. Got yours?
I have been mulling over this concept recently ...
Goldbugs Paradox : The more your gold increases in value, the less you want to part with it.
I think many people start off buying gold as an investment, sensing a goldrush might be starting. But a funny thing happens, you start to understand what value gold really has, and you don't want to part with it. This is often stated by new owners as "I am sleeping better". And yes, I know that "increase in value" is not strictly true. Gold doesn't move, the paper currency around it falls in value.
The more gold increases in value, the less you need to part with.
Very nice piece. However, I find it ironic that Mr. George Bernard Shaw is quoted. Many things that came out of his mouth are downright frightening as I'm sure many a zerohedge reader would agree.
Reminds me that in these turbulent times, one must not be blinded by a view on one particular subject, no matter how close he/she holds it to their heart, but instead consider the entire package from those that strive to become the next generation of leaders.
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