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"Gold Glitters Amid Economic Woes" - A Reuters Special Report

Tyler Durden's picture


Gold and silver dip modestly from near all time highs and the momentum chasing brigade is screaming it's the end of the world and all ___bugs should take cover. At such a point it is useful to reanalyze the fundamentals that have brought the two key precious metals to such astronomic heights. Attached, we present a 40 pages special report from Reuters, summarizing all the recent developments in the area, for all those who still may be unsure about the alternatives provided by the metal to the traditional fiat-based monetary system.

From Reuters: Gold Glitters Amid Economic Woes

Reuters Gold


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Tue, 04/26/2011 - 17:16 | 1209211 Snidley Whipsnae
Snidley Whipsnae's picture

The fundamentals that brought gold and silver to their current levels have not changed.

Wake me when Ben stops printing.

Tue, 04/26/2011 - 17:58 | 1209335 DoChenRollingBearing
DoChenRollingBearing's picture

You will likely sleep a long time!

Wake up refreshed?

Tue, 04/26/2011 - 19:04 | 1209526 long juan silver
long juan silver's picture

2:15 pm EST Wednesday April 27, 2011.



SS Endeavour liftoff.

Tue, 04/26/2011 - 19:37 | 1209608 RockyRacoon
RockyRacoon's picture

You'll get a kick outta this, DCRB:

More Stupid Shit From Brett Arends:

6 Signs Why the Silver Market Has Gone Nuts

From the Not-So-Smart website

Tue, 04/26/2011 - 20:59 | 1209776 DoChenRollingBearing
DoChenRollingBearing's picture

Thanks Rocky!  Ha ha.


Actually, Rocky, maybe you can giver me some advice!  Next week I am going to one (or the other) of the two coin dealers to offer Silver Eagles in trade for Gold Eagles.  I am following prices (and the GSR) as closely as I can, but I want to get a good deal without alienating my dealer.  The guy closest to me said that yes he would accept a trade like that.

How should I negotiate with him to "save" a commission (one for selling and another of for buying)?  What else would you suggest?




A small deal.  I would offer him 120 - 160 oz Ag for Au.

Tue, 04/26/2011 - 23:24 | 1210120 slewie the pi-rat
slewie the pi-rat's picture

your sweet deal and his sweet deal are around that second commission.  i went into a deal the other way, where i wanted to trade a kruger for silver @ 60+:1.  we agree to swap my gold for his morgan & peace silver dollars, and we started going and going.  we started a side deal.  i had everything i wanted, finally, he was cool.  i start packing up the stuff and he tells me i owe him $100.  so, there was a misunderstanding, and i freaked and backed away from the deal, not entirely sure of what i had missed, but this guy isn't flim-flam, so i just apologized and walked away.  

what an idiot i was!  that $100 represented quite a nick.  but i shoulda just paid it, but, man it  pushed my numbers where i didn't want to play.  if i'd known the ratio was goin to the low 30's!  but, i didn't.  and he, as a dealer, wasn't giving away his vig on any ratio swaps, either.

you have about a $6000-$7500 deal here.  if you want gold eagles, you may "pay" more than for maples or krugers, too.  but maybe you guys can get down broadway together.  go for it!

i don't think this is a small deal.  anytime you are standing there with gold and silver going down, it is a real deal.  size doesn't matter as much as the red light or green light on what i'd like to get and give.

good luck!

Tue, 04/26/2011 - 23:49 | 1210139 RockyRacoon
RockyRacoon's picture

Slewie is not too far off.   YOU decide what you want and tell him.   Then ask what he wants that is different from your offer.   This will put you two together quicker than your asking him for his deal.  You would be asking him to buy and sell at the same time which is not fair.

As a dealer he has to have some vig or it's not a profitable trade.  Doesn't matter what he paid for his stuff just like it's moot what you paid for yours.  Current market premiums determine the deal.  If he can do better elsewhere then that's his prerogative.   Only you know your trade limits so just stick to them.   I would not walk away from a 5% difference in this market, however.   On the other hand, don't make a trade on the possible future prices that might be favorable to you.   I'll assume you are sticking to trading coins for coins (as opposed to non legal tender bullion).  Stick to the current gold/silver ratio with some allowance for the premiums on each spot price to coinage rather than generic rounds or other strictly bullion.   Premiums on a percentage basis are not the same for gold and silver.  Give the dealer whatever of the vig that you feel comfortable with. The volatility will make fools of anyone! 

If I were trading my gold for your silver I'd be very comfortable at current premiums/ratios.  I'd rather have gold on hand than silver but the current silver volatility might offer me some proximate upside with the silver.  Your dealer might be different.   I would use eBay closed sales numbers as a guide to calculating your spreads.  Use the chart at the bottom of this web page to search for the listings:

They have good search terms for finding the exact items.  Then when you have the eBay page of listings, click on the "Advanced" link to the right of the search box at the top of the page.  The advanced search page has a box to click "Completed Listings".  Tick the box and hit the search button again.  This will give you the CLOSED auctions -- ones that actually sold will be shown in green.

Here are the links for those for gold and silver eagles:

Print out the pages with your averages for sold items.  The dealer will appreciate the work you put into the deal and he'll treat you with more respect.   Be sure to take off the tin-foil hat before you go to his office/shop.

Wed, 04/27/2011 - 08:28 | 1210787 onesoul
onesoul's picture

Rocky, an idea of mine has been around for sometime is to set up a small private investment pool as an fund sponsor or limited partner in a silver/gold coins fund for some friends too promote investment in physical silver coins. While I want to earn a lot from capital gain on precious metal investment, many of my friends, relatives are not familar with physical coins trading which prohibit them from investmenting in real money. I hope it can turn them from a victim to a champian of the ongoing inflation by providing a simple investment vehicle so they don't spend time to learn to become a physical coin trader/dealer while I provide such a service and charge a fair fee collectively. Sure there will be some charge to keep the operations, but I intends to make it very small operation, part-time, said 1 person(me) in the begining. Any idea what make it operational and attractive will be graceful!

1) Lockup period (6 months, 1 year, etc, to reduce decision risk as silver is very volatile)

2) Physical redemptable on market price - admin - shippment (backend loading), allocated

3) Cash redemptable on market price - admin - liquidating cost

4) Liquidity may be an issue if many investors cash in at the same time (hopefully when gold/silvere ratio hit 10, but some investor will be shaken out on price movement), the fund will need to liquidate silver/gold coins to get fiat paper for them. (May be a vasting schedule, but I don't want to put too much restriction as my aim is to create a structure for people to get in precious metal coins). Or may need some cash but will create cash drag for the investment fund.

5) Hedging: I do not intend to hedge with futures, but may use put for protection.

6) Storage: a private vault, auditable (but not sure if I want to pay the cost for it if it is too high).

7) Promotion: Private to start with. I want to go web based only to reduce the cost. But need to be aware of legal/regulation depends on the structure

8) Structure: LLC, limited partner, pooled physical investment, private company

9) While I don't want to spend my entire fulltime income to maintain the operation, I will need to charge some management/overhead fee.

10) Sourcing: Banks (I am in Hong Kong, where I can get gold & silver coins from Chinese banks as they promote them like crazy since few years back, yes, some Panda, from banks... thanks god, the genuine ones)/Major Authroized coin dealers (for Eagle/Maple).

It may be a silly idea to many savy investors here(as you guys mananged your own physicals), but I really appreciate your advice to forge/refine it to the point this idea manifest for wealth creation and protection for myself and many others. I hope I can create a Sportt-like physical ETF for years to come. Any suggestions are welcomed!

Wed, 04/27/2011 - 11:03 | 1211634 RockyRacoon
RockyRacoon's picture

My advice:  Don't get anywhere near this idea.   You will be taken down either by the authorities or by your own clients.   It's a no-win.   I think you've reinvented the wheel.  Why not just start a gardening coop.

Good luck to you anyhow.

Thu, 04/28/2011 - 02:54 | 1214972 onesoul
onesoul's picture

Thanks Rocky! Need to do more research on alternatives! As well as if there is any authorities here in Hong Kong stop me doing it. Gardening is not vaible, land is very expansive properties/resource here.

Thu, 04/28/2011 - 16:53 | 1217750 RockyRacoon
RockyRacoon's picture

If you even LOOK like you're making money, they'll want their cut.

Tue, 04/26/2011 - 22:11 | 1209950 Blanc swan
Blanc swan's picture

"Silver is a totally pointless metal. (Okay, it does have some industrial applications — but even there it's generally substitutable. It's pointless, or at least a luxury, for ordinary people.)"

"Update: This article has been updated to acknowledge the industrial applications of silver."

Tue, 04/26/2011 - 23:25 | 1210124 RockyRacoon
RockyRacoon's picture

I KNOW!   Wasn't that the thing that made him look like the dork that he is?


Tue, 04/26/2011 - 21:24 | 1209840 bigelkhorn
bigelkhorn's picture

Ben bernanke might not have been breastfed as a child and he has serious brain damage. But no! Why? he is a minion doing the elites job for them. 1400 On The S&P Coming? i think so!!!

Tue, 04/26/2011 - 17:24 | 1209222 disabledvet
disabledvet's picture

What if JPMorgan "the bank" actually starting "issuing fresh Morgans?"  Could the governent stop them?

Wed, 04/27/2011 - 03:38 | 1210381 Sudden Debt
Sudden Debt's picture

Yes they would, you can't make your own dollars.


Tue, 04/26/2011 - 17:24 | 1209232 tmosley
tmosley's picture

Gold and silver both rocketed into the close.  OpEx is over, troll bitches.  Let's see if you morons are still around come Friday.

Tue, 04/26/2011 - 17:51 | 1209299 Idiot Savant
Idiot Savant's picture

OpEx is over, but we haven't heard from the FOMC yet. Don't get too cocky.

Tue, 04/26/2011 - 17:58 | 1209338 tmosley
tmosley's picture

What are they going to do?  Raise rates and destroy the United States?  Don't think so.  QE3 will happen, though it will likely be "unconventional", maybe not even official.

Tue, 04/26/2011 - 19:01 | 1209479 long juan silver
long juan silver's picture

Gold and silver both rocketed into the close


What an overstatement on a day when dollar leveraged US industrials are beating earnings by 50-100% and PPS are jumping 8-12%.

I feel stress in your anxious postings (I see over a hundred of yours today). Anxious especially when you missed silver (and the stock market also) to bet big on gold  (gold plus 28% last 12 mo. silver plus 158%-WSJ)

Oh, and AGQ 2x silver (paper yeas, bit I like it too) plus 430%. FOUR HUNDRED THIRTY PERCENT.

Oh! One more hilarious thought. Vote for Ron Paul. Remember that the website where you've logged 7,000 posts? He'll put the shit in order. That is, his way, his solutions will crash PMs. LOL

I enjoy the misery of jackasses.






Tue, 04/26/2011 - 19:06 | 1209527 tmosley
tmosley's picture

Wow, you literally have no idea what you are talking about, or who you are talking to.  I never bet big on gold, you moron.  I have some 5000 posts over the course of 4 years at RPF, and if you think RP can turn things around without instituting a gold standard (by definition skyrocketing the price of gold in terms of dollars), then you're a fucking moron.  Which you are.

I think you know it.

Tue, 04/26/2011 - 20:20 | 1209713 MsCreant
MsCreant's picture

Strange how so many of these sockpuppets seem to know about your posting history on another website. Puppet shows are fun!

Tue, 04/26/2011 - 20:35 | 1209738 akak
akak's picture

It's pretty damned creepy, too, when you think about it.  Cyberstalking.

Tue, 04/26/2011 - 21:18 | 1209824 tmosley
tmosley's picture

I'm tellin' ya.  Bunch of homos.  

Bitches love me.  Even gay bitches.

Tue, 04/26/2011 - 21:36 | 1209866 akak
akak's picture

It must have something to do with them always calling for a top.


Tue, 04/26/2011 - 21:59 | 1209929 Hephasteus
Hephasteus's picture

LOL. He really really wants mosley in a gimp suit.

Tue, 04/26/2011 - 22:29 | 1209998 tmosley
tmosley's picture

Nope, he wants to be the gimp.

Weak people latch on to strong ones.  That's the way some people are.

Tue, 04/26/2011 - 19:11 | 1209539 Terminus C
Terminus C's picture

I think you need to be renamed...

Long Yawn Silver

your arguments are tired and make me sleepy.

Tue, 04/26/2011 - 19:11 | 1209543 akak
akak's picture

Now THAT was funny!

Tue, 04/26/2011 - 21:52 | 1209909 Richard Head
Richard Head's picture

LJS is somewhat better than his old screen name, william the bastard.  As if we can't recognize someone's idiotic ramblings!

Tue, 04/26/2011 - 17:30 | 1209238 kito
kito's picture

why are we using msm outlook to support any of our views here?? these are the very medial outlets we scoff at

Tue, 04/26/2011 - 17:35 | 1209261 tmosley
tmosley's picture

I don't recall anyone ever scoffing at Reuters.  Not that that means anything one way or the other.

Tue, 04/26/2011 - 18:53 | 1209497 SWCroaker
SWCroaker's picture

Reuters, I scoff in your general direction.   Ptwaa!

Tue, 04/26/2011 - 20:11 | 1209698 slewie the pi-rat
slewie the pi-rat's picture

yeah, thomson reuters is big, and very international.  amazing, really.  quite focused on humanitarian problems, NGO stuff, Red Cross, UN, and reuters often takes one, in a few mouse clicks, to someone on the ground, wherever.  i put it in a class by itself, but it's reuters, and it's MSM. 

in japan, they have covered the people's needs and some of the reactor and seawater run-in stuff.  still, i think that if a person were concerned about japanese children's health, s/he might find reuters worth rooting around in. 

Hahaha.  reuter rooter, BiCHeZ!

Tue, 04/26/2011 - 18:59 | 1209509 long juan silver
long juan silver's picture

 don't recall anyone ever scoffing at Reuters


When then it's fucking ironclad offical.

Tue, 04/26/2011 - 19:07 | 1209537 tmosley
tmosley's picture

I think you know how stupid you are, but you are powerless to stop yourself from acting in an embarrassing manner.  Likely due to drugs.

Tue, 04/26/2011 - 22:51 | 1210065 akak
akak's picture

Never underestimate the power of sheer stupidity.

Tue, 04/26/2011 - 18:10 | 1209379 Jendrzejczyk
Jendrzejczyk's picture

Mediaocre outlets.

Tue, 04/26/2011 - 17:32 | 1209243 FranSix
FranSix's picture

Still lots of mainstream angst over the rise in the price of gold, and summarily written off as a risky investment.

No inflation-adjusted charts over the long term analysis, or log scale charts at all.  Tsk Tsk

Tue, 04/26/2011 - 20:57 | 1209773 RockyRacoon
RockyRacoon's picture

...mainstream angst...

I can appreciate your own angst at the general angst about the PMs.

But, I don't see it that way.   When NPR at noon tells us the silver and gold prices along with the other indices I'll be worried.

However!!  I do like Richard Russell and this article by Peter Brimelow about said guru is worth a read.    Russell is becoming apprehensive and that's a cause for further apprehension.

A tasty morsel from the article:

Russell is a long-time gold bug, but for traditional inflationary reasons. He resisted the new argument, developed by writers associated with Bill Murphy’s Le Metropole Cafe website, that the gold price is manipulated by a Washington-Wall Street alliance. ( See Sept. 28, 2009 column. )

But in his last post last week, on Thursday, Russell wrote:

“The desperate battle to keep gold below 1500 continues. I watched the erratic action of gold near yesterday’s close. I’m fascinated to see whether June gold can close above 1500 or whether the anti-gold contingent can manage to knock gold down (again) below 1500. The action is now so blatant that it literally screams of manipulation. At its high yesterday, June gold sold at 1506.50. At yesterday’s close, June gold was trading at 1498.10. It’s almost embarrassing to watch the action. What we’re seeing is the anti-gold crowd and the manipulators vs. the great primary trend of gold.”

Russell explained:

“The battle about gold closing above 1500 is that once above 1500, technically gold will be on its way to 2,000. And from there 5,000 will be the target…from the anti-gold crowd’s standpoint, gold must be held (on a closing basis) below 1500.”

Spot gold reached $1515 early Monday morning.

The motive for manipulation, Russell argues, can be traced back to the U.S. Federal Reserve’s problems in financing U.S. government debt. ( See April 4 column. ) He writes:

“When you think about it, it’s no wonder that Wall Street and the Fed hate gold. Gold exists outside the system. The Fed can’t manipulate or create gold the way they do Federal Reserve Notes. When gold rises, as it has been doing, it hoists a red flag over Wall Street, the Fed, and the economy….All the lies, corruption, and secrets of the Fed and the politicians can’t erase the dire message of gold.

Russell prophesies apocalyptically:

“The gold-bears will be defeated. It’s only a matter of time…We’re moving nearer and nearer to the edge of the hurricane. I can feel it in my bones…I can feel them caressing my face -- the early breezes. They are blowing gently and hinting of the forthcoming gold hurricane that will sweep across the US and the planet with all the force and power that was seen when gold was first discovered at Sutter’s Creek during the California gold rush of 1849. The gold rush of the 2000s is in the wings.”

Tue, 04/26/2011 - 17:32 | 1209248 George Huxley
George Huxley's picture

This is interesting. Reuters is controlled by the Rothschilds from what I understand. Who knows maybe its central banker reverse psychology.

Tue, 04/26/2011 - 17:32 | 1209249 gwar5
gwar5's picture

"Our only alternative is to exchange fiat for PMs. To do anything else would only encourage them."  -- Anonymous

Tue, 04/26/2011 - 17:32 | 1209255 Tense INDIAN
Tue, 04/26/2011 - 17:42 | 1209273 Dangertime
Dangertime's picture

Silver appears to have peaked.  Do not be left holding the bag.  Tmoseley and Akak would love nothing more than for you to pump up the price for them.  Do not be that bigger fool.

Tue, 04/26/2011 - 18:00 | 1209315 akak
akak's picture

That's right, keep kicking the desperate drowning passengers away from the half-empty lifeboat, you sociopath --- or even worse, trying to kick those who are already in it out of the lifeboat.  We'll keep laughing at you even as we condemn you.

NOBODY here needs, or wants, your malicious and disingenuous "help", so fuck off.

Tue, 04/26/2011 - 17:58 | 1209336 Dangertime
Dangertime's picture

If you pump the price hard enough, maybe you will be able to pass off that giant silver bag in your hands.

Tue, 04/26/2011 - 18:04 | 1209359 akak
akak's picture

The only "pumper" here is you, with your wild and hysterical fearmongering designed to shake physical silver loose from weak hands.

"I troll, I troll, it's off to work (for JPM) I go!"

Tue, 04/26/2011 - 18:07 | 1209375 topcallingtroll
topcallingtroll's picture

Nice work if you can get it.

Tue, 04/26/2011 - 18:11 | 1209398 DoChenRollingBearing
DoChenRollingBearing's picture


Tue, 04/26/2011 - 21:30 | 1209853 RockyRacoon
RockyRacoon's picture

Where the hell do these masochistic trolls come from? 

Do they enjoy the beat-down so much?

They come here after putting 20 rubber bands on their nuts and talk trash about whatever the consensus is discussing.

I've heard of internet porn but this is pushing the envelope.

Tue, 04/26/2011 - 18:14 | 1209402 McPoopypants
McPoopypants's picture

Indeed, really, have we all not learned to ignore ag comments from this guy and dangertime? They will call the top for any AG or AU setback, its a necesasry piece of their worldview, otherwise lulu and sbux start looking like shit carried by the wind. Why feed them?

Like smart people said earlier: resume panic when FED figures out how to reduce debt. Until then, we're all fucked, collectively,physical pms or no, we will all have to deal with the local equivalent of the bratva in the next 18 months.





Tue, 04/26/2011 - 18:16 | 1209406 Dangertime
Dangertime's picture

You must feed me.  I am hungry.

Silver peaked, bitchez!

Tue, 04/26/2011 - 18:48 | 1209484 Stormdancer
Stormdancer's picture probably has.  For the next 24, or maybe even 48 hours.

Tue, 04/26/2011 - 19:58 | 1209675 Bicycle Repairman
Bicycle Repairman's picture

Did you BTFD, stupid bitch?

Wed, 04/27/2011 - 00:45 | 1210249 Flakmeister
Flakmeister's picture

Umm... 500 shares CEF at 23.91, 1500 shares SLV and sold the Apr 29 45's for an average of 0.65. Will write forward weekly until called out...

Tue, 04/26/2011 - 17:56 | 1209321 DoChenRollingBearing
DoChenRollingBearing's picture

Dangertime courting danger!  LOL.  Let a thousand flowers bloom.

Tue, 04/26/2011 - 18:00 | 1209341 akak
akak's picture

The only problem is that Dangerclown's flowers are all ragweed, crabgrass and poison ivy.

Tue, 04/26/2011 - 18:02 | 1209345 tmosley
tmosley's picture

Nice turnaround.  Now WE are the ones urging imprudent action, rather than you, the calm, "rational" one, with the mana-dripping tongue.

lol, as if anyone would buy that.

Tue, 04/26/2011 - 18:13 | 1209395 topcallingtroll
topcallingtroll's picture

Cant we all just get along?

Tue, 04/26/2011 - 18:12 | 1209403 Dangertime
Dangertime's picture

I do believe you may get a relief rally tomorrow.  But then the slide back into the abyss will resume.

Tue, 04/26/2011 - 19:00 | 1209512 long juan silver
long juan silver's picture

Let me're long?

Tue, 04/26/2011 - 19:08 | 1209538 tmosley
tmosley's picture

Not a reader, huh?

Tue, 04/26/2011 - 20:20 | 1209714 Dangertime
Dangertime's picture

Nah, still holding the puts.  It will be a minor relief rally at best.

Tue, 04/26/2011 - 20:36 | 1209740 akak
akak's picture

It will be a major relief when you stop trolling this forum.

Tue, 04/26/2011 - 20:41 | 1209752 Dangertime
Dangertime's picture

We can be certain it will not help your terrible investing skills.

Tue, 04/26/2011 - 20:58 | 1209778 akak
akak's picture

Funny how you gratuituously and ignorantly criticize my investment skills, considering that I have NEVER given ONE indication, here or in any other forum, just what those investments, or those skills, might be.

Again, a blatant liar, blusterer and asshole --- a prefect trollfecta.

Tue, 04/26/2011 - 18:01 | 1209354 OdinsBeard
OdinsBeard's picture

Junked you (Dangertime) for being an establishment shill.  What other alternatives are there to PMs and arable land/forestry??


Come on, being as PMs are such a bad thing to hold (in your book) what's the alternative?

Tue, 04/26/2011 - 18:10 | 1209396 Dangertime
Dangertime's picture

Long term, I agree with you.

Short term, silver is due for a bloody correction.

Nothing moves in a straight line, and the emotion behind this thing has sucked in all of the money it is going to for this round.

Tue, 04/26/2011 - 19:15 | 1209552 Snidley Whipsnae
Snidley Whipsnae's picture

dangertime = dumb as a sack of hammers?

dangertime = on Blythe's shill payroll?


Tue, 04/26/2011 - 20:03 | 1209679 Bicycle Repairman
Bicycle Repairman's picture

dangertime = troll bitch fka mathman, fka johnnybravo, soon to be known as "shoeshine boy"

Tue, 04/26/2011 - 19:36 | 1209380 Zero Govt
Zero Govt's picture

Dangertime   "Silver appears to have peaked"

I like definitive statements like that! Ready for the 'appearance' of a bounce back to $50 ?

Tue, 04/26/2011 - 20:24 | 1209724 Temporalist
Temporalist's picture

Yes two posters on a site that nobody in the mainstream non-financial world have visited are what brought the price of silver to these levels because of their massive sway on the few thousand or so visitors.


Wed, 04/27/2011 - 01:36 | 1210306 StychoKiller
StychoKiller's picture

If you really want to be such a Humanitarian, then alleviate some suffering here:

Tue, 04/26/2011 - 17:58 | 1209320 SilverDoctors
SilverDoctors's picture

APMEX Now Out of Silver Eagles AND MAPLES Till May 27th!

Tue, 04/26/2011 - 18:01 | 1209350 tmosley
tmosley's picture

They had 65 a few minutes ago.  Probably all gone by now though.

I guess that's all their offer to buy at $3 over spot brought in.

Tue, 04/26/2011 - 21:37 | 1209873 RockyRacoon
RockyRacoon's picture


I got that APMEX email.   Desperate measures...

Tue, 04/26/2011 - 17:59 | 1209329 6 String
6 String's picture

This all misses the fucking point. It's not momo chasers going oh oh. Shit, I've been invested since the teens. Hardly momo. The problem is if this were equity no one in the world would be screaming bubble, parabolic rise etc despite the still solid fundamentals of the metals.

What makes the point is how fucking stupid the auction market is in all things--Silver included with Amazon--because of the complete bullshit everywhere--included in the metals.

And that's the fucking point, not momo chasers.

Tue, 04/26/2011 - 18:05 | 1209352 topcallingtroll
topcallingtroll's picture

We are always hearing gold bugs scream at fiat holders and treasury bond holders with every tiny blip in the dxy that the end is near.

You should be accustomed to the noise by now! What is the occasional rare scream at the even rarer precious metal dip adding to the decibal level? Probably not much.

Tue, 04/26/2011 - 18:11 | 1209386 tmosley
tmosley's picture

What are you talking about?  I never go to bond forums and tell them how foolish they are and that they are going to lose everything.  Hell, I don't even go into Leo's submissions pimping Greek debt.  I call him stupid from here, sure, but I don't go there.  

Those trolls come here for a REASON.  Who knows what it is?  Probably the same reason zombies go to the mall:

Tue, 04/26/2011 - 18:21 | 1209426 topcallingtroll
topcallingtroll's picture

What is it with zombies and malls?

Tue, 04/26/2011 - 19:06 | 1209529 long juan silver
long juan silver's picture

the coin dealers located therein

Tue, 04/26/2011 - 19:17 | 1209553 akak
akak's picture

If you're going to be an inane moron, at least try to be amusing.

Tue, 04/26/2011 - 21:41 | 1209879 RockyRacoon
RockyRacoon's picture

What is it with zombies and malls?

Sorta like Willie Sutton's famous words, that's where the people are.

Tue, 04/26/2011 - 18:22 | 1209422 mynhair
mynhair's picture

"Silver has peaked."

Unfortunately, GPL has bottomed.  Crap, missed it by 7 cents.

Tue, 04/26/2011 - 18:40 | 1209458 fiddler_on_the_roof
fiddler_on_the_roof's picture

I went to the local coin shop to exchange Gold my Pamp Suise/Perth Mint for Canadian Maple Gold today and there was a heavy rush of people trying to sell family silver and 14K Gold Jewellery. Most of the silver offer was rejected because they were not silver.

Tue, 04/26/2011 - 19:02 | 1209515 long juan silver
long juan silver's picture

Kennedy halfs and Ike's are "walking around" money. Don't bother.

Tue, 04/26/2011 - 19:16 | 1209558 Long-John-Silver
Long-John-Silver's picture

I hit a yard sale Saturday where a guy had come copper clad Kennedy halves. He thought they were 40%. He was heart broken when I told him they were worth $1 because they had no Silver at all. He did have a few 925 silver jewelry items in with a box of costume jewelry. I bought the entire box of costume and plucked out a little over a troy ounce. I gave him $2 bucks for the box because it had a $2 price tag on it.

Tue, 04/26/2011 - 20:33 | 1209734 Temporalist
Temporalist's picture

I like you much better than your Bizzarro World doppleganger.

Tue, 04/26/2011 - 19:14 | 1209549 Re-Discovery
Re-Discovery's picture

Thank you for this post TD.  It will now be short hand for all of the fundamental reasons to own PMs.

Like "I'm buying Silver at 47 because Reuters"

or  "I'm buying Gold Miners because Reuters."

Sick of explaining the rationale.  Let the haters read.

Tue, 04/26/2011 - 19:20 | 1209566 Snidley Whipsnae
Snidley Whipsnae's picture

It's 7:20 pm... gold at $1507.50... silver at $45.66... both are currently rising.

So... where is the big crash? lol

Trolls, pack up your ditty bags and leave till next options expiry... we have heard enough of your bs

Tue, 04/26/2011 - 19:27 | 1209577 r101958
r101958's picture

Just like I said on another string.....perhaps PM prices are already signaling that there will be a QE3 and no interest rate hike.

Tue, 04/26/2011 - 19:35 | 1209600 Zero Govt
Zero Govt's picture

there can be no interest rate hike... WS and DC would go bankrupt (again)

Tue, 04/26/2011 - 19:25 | 1209578 nodoctor
nodoctor's picture

On Holy Thurs or Good Friday, Katie Couric introduced a story about the gold craze and the rising price. Very little discussion about what rising gold prices mean with regards to overall economic outlook and FRN health. The focus of the story seemed to be CASH FOR GOLD!!! Scenes showed people happily pawning their jewelry and whatnot for 80% or 90% of spot price.

Then last night Nightline ran basically the same story - Gold is up! Something something financial... CASH FOR GOLD!!! One of the first scenes was a person holding their grandfather's dental work and saying it was worth $500 federal reserve notes!!!

Tue, 04/26/2011 - 19:45 | 1209630 Meatier Shower
Meatier Shower's picture

Fucking sheep. They sicken me.

They shall all be cleansed!

Tue, 04/26/2011 - 23:27 | 1210129 Creed
Creed's picture

people need to pay the bills dumbass

Wed, 04/27/2011 - 03:00 | 1210366 akak
akak's picture

Unless you live on Wall Street --- then it's the little people like you and I who need to pay their bills.

Mon, 05/02/2011 - 15:43 | 1231214 Meatier Shower
Meatier Shower's picture

Oh, you mean the people who borrow money they don't have to buy shit they don't need?
To hell with them.

Tue, 04/26/2011 - 19:45 | 1209629 chairsatan
chairsatan's picture

During every big inflation there are people baffled by the soaring asset prices, deluded into thinking it's a bubble and that a major retreat about to come.  For those people it's unfortunate because they end up with empty bags at the end, and it's a small consolation prize that they were right about a couple of trivial "corrections" along the way. 

"Money inflation thus works no magic but only a simple, massive, and surreptitious tax on money wealth, and the payers of the tax select themselves to be taxed by their own dullwittedness in holding the taxed property."

- Jens o Parsson



Tue, 04/26/2011 - 19:49 | 1209652 tmosley
tmosley's picture

+46.11 (already back above $46)

Tue, 04/26/2011 - 19:46 | 1209641 lieutenantjohnchard
lieutenantjohnchard's picture

for the true believers among us i just took delivery on some maple leafs and gold eagles. traded some green coupons for them.

hope me saying this really hacks off some of the jpm trolls who read this site.

btw: is a "thought leader" at jpm an oxymoron?

Tue, 04/26/2011 - 21:53 | 1209915 RockyRacoon
RockyRacoon's picture

The alchemists of yore would be even more astounded!

Turning common paper into gold. 

They never even imagined that.

Tue, 04/26/2011 - 20:05 | 1209684 Temporalist
Temporalist's picture

To start...what astronomic heights?  When one considers the QUADRILLION digital wealth/derivatives backed by nothing $1500 and $46 are farts in a hurricane.

Tue, 04/26/2011 - 20:16 | 1209705 MsCreant
MsCreant's picture


Tue, 04/26/2011 - 20:18 | 1209706 PulauHantu29
PulauHantu29's picture

Buy oil and gold....


Be Happy::-))

Tue, 04/26/2011 - 21:01 | 1209782 slewie the pi-rat
slewie the pi-rat's picture

the reuters 40 pp wind-up & delivery is anti-silver at this point.  blah. blah, gold, gold.  silver is bad now.  kitco had a similar piece by Ned Schmidt yesterday:  silver is now an asset to avoid.

reuters quotes a person or two, here, saying the same thing, and then goes with it.  sell your silver to the banksters now, everybody!  it's almost May! 

it's not about "prices".  certainly, silver has been the world's champion deflator for the last few years! 

maybe we can see all this "betrayal" as a change in the Gold/Silver Ratio, or at least a correction. 

stranger things have happened!  just ask blythe! 

Tue, 04/26/2011 - 21:06 | 1209792 mynhair
mynhair's picture

You pissants don't play the minor miners?  Not full up on physical yet?

Dumbasses, what do you do all day?

Tue, 04/26/2011 - 21:58 | 1209928 Tater Salad
Tater Salad's picture


Funny how no one is talking about the global fiat race to zero, it's not just about our [failed] domestic policy.  No, no, we haven't even started the bonanza of "hysteria".  For the doubters, check out , if that doesn't help you see the light, nothing will.

Great (but long) read and does a nice job sorting out the [hyper]inflation/deflation debate, the likes of Ackerman and Lira etc.

For all of the dip shits calling tops in PM's, how about this.  My bet is that Silver is good for 55 by year end and gold is good for better than 1600 this year.  I think the bigger risk is NOT owning metals.  Besides, every investor has equity coming out the yang, and equity hasn't made any gains in 10 years.  And now, after the fed tripled its balance sheet, I'm supposed to feel comfortable with equity exposure because stocks are on a Fed induced roid rage?  Don't think so!


Tue, 04/26/2011 - 23:08 | 1210096 DoChenRollingBearing
DoChenRollingBearing's picture

A blobspot is what was left on my desk after an LOL caused by tmosley tearing up a troll.

But, Tater is completely right.  FOFOA is the best gold analyst around.

Tue, 04/26/2011 - 21:47 | 1209898 Math Man
Math Man's picture

"Silver has transformed itself from an inflation hedge to aspeculation tool," said Hakan Kaya, commodities portfoliomanager at Neuberger Berman, which manages about $190billion client assets.

"At current prices, we find it highly overvalued with no fundamental reasons backing it up."


BINGO!!!! We have a winner!

Tue, 04/26/2011 - 22:02 | 1209935 Tater Salad
Tater Salad's picture

"At current prices, we find it highly overvalued with no fundamental reasons backing it up."


Hey Meth Man, I've got a math lesson for you...go look up, now say it with me, M2.  You'll learn a lot, I guarantee it!


Tue, 04/26/2011 - 22:16 | 1209958 Math Man
Math Man's picture

Say it with me:  M2 doesn't mean shit when the velocity of the newly created bank reserves is ZERO.


Tue, 04/26/2011 - 22:44 | 1210047 cranky-old-geezer
cranky-old-geezer's picture

China isn't buying into your "zero velocity" bullshit.  

Oil-producing nations aren't buying into your "zero velocity" bullshit. 

DXY isn't buying into your "zero velocity" bullshit.

I really can't think of anyone buying into your "zero velocity" bullshit ...except you. 

Tue, 04/26/2011 - 23:30 | 1210135 Creed
Creed's picture

say it with me: M2 doesn't mean shit


Karl, is that you?

Tue, 04/26/2011 - 22:17 | 1209964 Math Man
Math Man's picture

Say it with me:  M2 doesn't mean shit when the velocity of the newly created bank reserves is ZERO.



Tue, 04/26/2011 - 22:53 | 1210070 akak
akak's picture

.... only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.....only $5 to dig it from the ground .....

.... must .... eat .... silver ..... owners' ..... brains .........

Tue, 04/26/2011 - 23:09 | 1210102 DoChenRollingBearing
DoChenRollingBearing's picture

The blobspot might have been caused by akak tearing up a troll as well (see above).

Tue, 04/26/2011 - 23:48 | 1210166 honestann
honestann's picture

If you believe that, you are a...

... moron ...
... moron ...
... moron ...
... moron ...
... moron ...
... moron ...
... moron ...
... moron ...
... moron ...
... moron ...
... moron ...
... moron ...

... unless you're out back right now digging up silver for $5 per ounce ...

Since you don't seem to believe you're a moron, we must assume you are out back, right now, digging like one wild, crazy, laughing maniac, knowing you can get $50 for every $5 you invest.

Good luck with that.  You're gonna need it.

Wed, 04/27/2011 - 00:00 | 1210188 akak
akak's picture

Honestann, no, I most certainly do NOT believe that!

I was merely making fun of MethMan's tired old schtick that silver "only costs $5 to dig from the ground", which he has repeated endlessly in his many trollish posts.  I guess you must have missed them --- lucky you.

Wed, 04/27/2011 - 00:46 | 1210244 honestann
honestann's picture

Sorry.  I thought I remember akak being smarter than that!  You got me this time.  Hahaha.

Wed, 04/27/2011 - 01:00 | 1210259 Hephasteus
Hephasteus's picture

If you're old then you remember the you can't eat it schtik. The 5 dollars to dig it out of the ground is the new schtik.

Wed, 04/27/2011 - 02:28 | 1210348 honestann
honestann's picture

Good point.  I wonder what's next.

How about "silver is anti-bacterial, so handling silver can be bad for you, like taking antibiotics long term".

Nah, that's too long for a soundbite.

Wed, 04/27/2011 - 02:33 | 1210352 akak
akak's picture

I am surprised the corporate-controlled media has not already been trotting out the soon-to-be-heard phrase "silver hoarding extremists".  Expect it any day now, along with implications that "silver hoarding" is connected with or analogous to "financial terrorism".

Wed, 04/27/2011 - 15:47 | 1213209 honestann
honestann's picture

Just today some government scumbag (O'Neill) said it was terrorism for anyone [in government / congress] to even discuss whether the debt ceiling should be raised.

Think about that.  Now people inside government are calling other people inside government "terrorists" for even momentarily considering anything other than what they want.

It is amazing that most people cannot see how utterly and completely the wheels have come off "intellectual discourse" in the west today... starting with statements by "officials".  Seems like every single word out of their mouths is completely disingenuous, diabolical waste product.

Wed, 04/27/2011 - 02:40 | 1210354 Hephasteus
Hephasteus's picture

No next is the biggest fucking paper smash in silver you could ever imagine. I mean a HUGE fucking paper smash. It's going to be epic. And it's not going to move more than a couple pounds of silver.

The schtik then will be haha your crying. Haha I told you so. Followed by a slight jitter as it becomes apparent it's NOT working. Followed by a really really jacked up on speed troll attack.

Tue, 04/26/2011 - 22:44 | 1210039 chairsatan
chairsatan's picture

"When all other explanations are exhausted, modern governments usually fall back on the speculator, who is held responsible for all economic and social evils.... The same German officials who denied the very existence of inflation lamented the depreciation caused by speculators, or they blamed the Allied reparation burdens and simultaneously denounced speculators for the depreciation. Dr. Havenstein, the President of the Reichsbank, embracing every conceivable theory that exculpated his policies, also pointed at the speculators."

- Hans Sennholz, Age of Inflation, 1979

Wed, 04/27/2011 - 02:50 | 1210359 Hephasteus
Hephasteus's picture

I posted a long explanation of this in another thread minuse speculator.

The blame the speculator thing is simply one of the outside/inside mind fucks.

Savers are banksters. They are good people nothing wrong. They aren't evil or anything they are just a mask for banksters to wear. By paying savers 5 percent for their money and charging borrowers 10 percent for money they are wearing the savers like a suit and deflecting the greed of interest and borrowing out onto a larger audience. The savers don't get any real benefit. The banksters are there counterfeiting so much money that whatever they pay in interest is swallowed up in higher prices. It's a lose lose for the saver but they make a good mask to wear.

The homeowners are counterfeiters. They countefeit money when they get a mortgage. they are predatory onto the larger economy because for them to pay back the loan they have to suck twice as much money out of the larger economy as they counterfeited.

The speculators are people trying to assist the savers or assist themselves make a real gain that is not devoured by inflation. Not so evil not so bad but they make good moral cover for the investment banks predatory trading desk.

So stock market and housing market and savings account and money market are all set up to allow people to participate in the bankster fraud with much much greater risks and much much diminished rewards and all they have to pay for it is an occaisonal guilt trip from the core banksters.

Wed, 04/27/2011 - 01:31 | 1210297 Double down
Double down's picture

Given the environment  it seems perfectly fundamental to me, to speculate.  Does it not seem odd not to? 

Tue, 04/26/2011 - 21:49 | 1209902 GregGH
GregGH's picture

40 pages from Rueter's .... and to see how many times the word SPROTT or GATA came up ...  fishy or just one sided

Tue, 04/26/2011 - 21:50 | 1209904 GregGH
GregGH's picture

40 pages from Rueter's .... and to see how many times the word SPROTT or GATA came up ...  fishy or just one sided

Wed, 04/27/2011 - 01:45 | 1210312 williambanzai7
williambanzai7's picture

I have one simple and elegant way of looking at this.

PM and silver in particular, is the best surrogate method for shorting a corrupt banana economy that is effectively broken beyond repair.

Corrupt...banana...economy. I use the word economy loosely. Ponziopoly is a better term.

I'm not talking my book. I'm just telling it like it is. At this moment in history, shorting the US is not unpatriotic. It is a sad trade brought on by TPTB.

Wed, 04/27/2011 - 02:50 | 1210358 Hook Line and S...
Hook Line and Sphincter's picture

The oligarchy has never been less unanimous and incohesive than in this cyclic collapse.

The old money PTB, who in their keeping the cyclical usury faith alive have misjudged the desire for those with vast purchasing power to keep their spoils and power. Imagine that! Much of what we see coming to a head is due to the creation of more oligarchs, and thus more discord.

Don't mistake it, the new PTB is no friend of the middle class, in fact, they are likely the middle classes worst enemy in that they need to suppress the fiat price of assets that can store wealth (Au and Ag) so that they can continue to pick up the physical with their quickly depreciating fiat.  They are on the long phys and short paper side, scooping up PM's with dramatically devaluing fiat while gleefully accepting their fiat losses with a crooked smile on their face. They know what coming, and they aren't about to feel the old moneys boot on their head.

You can smell the in-fighting within the PTB this time around. The plan has always been collapse, after all, that's the nature of fiat. It allows for great opportunities in the consolidation of power.

The old money, the originators of the 2000 year old banking scam, they are quite satisfied with their booty. They haven't been selling phys Au, they've been incontinent, blowing out 'leases' and 'swaps', but not the real thing. These control loving, ass puckered, fear laden, higher-rebellion lovelies aren't spending too much time losing sleep over the majority of the populace as they have refined their indoctrination, sweetened their propaganda with aspartame, and have the confidence of being able to direct the future further into a scientific whose possibilities were not available at the time of the other cyclic collapses. 

All the 'kabuki theater' we see is not all what it seems. True, a great deal of the play is genuine schnauzer and donkey show (not the TJ one), but its not because the PTB is that afraid of the lobotomized middle and lower classes this time around...nothing that a good war, famine can't take care of. 

The new money PTB, the ones who didn't have the same level of PM's have known for some time that the old money has drawn beads upon them, now that the middle class has been adequately raped (still, a large% of the middle class actually thinks they have a chance in hell of retaining some of their purchasing power outside their pm holdings!)

Something to ponder... 

Just what do you get when you get two heavyweights swinging mjollnirs about? 

What happens when you add a few negro-swans in to boot?

If you happen to chance upon a particularly beautiful rose tomorrow, you should stop and appreciate its bouquet.

We're all in the ring.

Wed, 04/27/2011 - 04:16 | 1210401 ivars
ivars's picture

One more sign silver has topped out and is crash correcting- record volumes on Monday:


Wed, 04/27/2011 - 04:18 | 1210403 cranky-old-geezer
cranky-old-geezer's picture

This is really simple to understand folks:

a) Fed has a 100 year charter.

b) Fed has 100 years to debase the FRN to zero, complete worthlessness.

They're 98 years along and they've debased the FRN 98%.  Right on schedule.

Wiping out the last 2% in the remaining 2 years will take exponential amounts of FRN printing / creation.

That's exactly what we're seeing.

Tue, 05/03/2011 - 00:15 | 1232875 honestann
honestann's picture

Actually, the FRN is debased 98.7% (to 1.3% of original value).  This is easy to compute:

1914: 1 ounce gold == $20 gold piece

2011: 1 ounce gold == $1550 (bullion price).

An actual coin costs more, so 98.7% reduction is giving them the benefit of the doubt, which they most certainly do not deserve.

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