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As Gold Surges By $30 In Two Days, Dollar 3 Ticks Away From 2010 Lows

Tyler Durden's picture




 

The good old old green 75% cotton/25% linen combination formerly known as the reserve currency continues shocking everybody with just how worthless it is, because even as the dollar jumped against the Yen, it plunged against the euro, and in the DXY basket the Euro weighting is about 4 times greater than the Yen. Meaning today the dollar will likely take out 2010 lows, and after that 2009, 2008 and so forth. Furthermore, the DXY has plunged in the past two days, just in time to completely neutralize any nominal increase in stocks values. In the meantime, that other hated metal, gold has risen by $30 in the past two days, reminding once again that until the Fed build an alchemist annex it will continue to be the only true store of wealth (and, yes, only true currency).

Today's DXY chart with the blue line showing the 2010 lows:

A two day chart, for those who enjoy pointing out the stock market "relief rally"

A longer-term chart showing what happens next:

And here is why there is no more trendline supprot in the DXY:

And lastly, gold:

 

 

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Fri, 03/18/2011 - 13:01 | 1071981 baby_BLYTHE
baby_BLYTHE's picture

We're all doomed!

Doomed, I say!

Ron Paul warns of "blood in the streets" post-currency collapse.

He is never wrong, folks.

http://www.youtube.com/watch?v=sPQs6ri7Dt0

Fri, 03/18/2011 - 13:10 | 1072035 Dr. Richard Head
Dr. Richard Head's picture

I remember the 2008 Pres debates.  At first I liked him because of his war stance. Paid little attention and dismissed the whole "gold" thing.  Partly because it didn't fit into anthing I was ever taught and partially because I just thought the whole idea of gold was nuts.

Then I started looking into the gold piece and the Federal Reserve. 

I haven't been able to turn back since then.  It was an interesting path to travel to reach this point.  A blessing and a curse.  As you put it, "He is never wrong, folks."

Fri, 03/18/2011 - 13:20 | 1072083 baby_BLYTHE
baby_BLYTHE's picture

That was me 2. I even heard him speak on my campus where we in the crowd set FRNs on fire!

I have been getting rather FED-Up and discouraged the last several months, however. Although, as Dr. Paul aptly states, "The US Government will change, when the people change".

Even though at this point I predict a Obama win in 2012, I expect Ron to do very well.
Perhaps Ross Perot 2.0?... He+ Huck/Romney + Obama in the final debates, is very possible

Fri, 03/18/2011 - 13:43 | 1072209 Dr. Richard Head
Dr. Richard Head's picture

I'm not so sure about an Obama win.  Reading over DailyKoz and other outlets that comprised Obama's base don't seem so lovey dovey over the "peace" president. 

Also, I have noticed many of the Obama stickers that were once on cars of my neighbors, neighbors that campaigned EVERY weekend and most weeknights for Obama, have taken their stickers down from their cars.  While I am not 100% sure of the motivation behind the removal of said stickers, it is interesting turn of the Obama base that I have seen.  Granted, these people would not, as the way things stand now, vote for Dr. Paul either.

Guess we will see who the next puppet-in-chief will be.

Fri, 03/18/2011 - 13:44 | 1072222 Rodent Freikorps
Rodent Freikorps's picture

No one can run to the left of Obama. Anyone who does will lose the black vote.

He will be the 2012 nominee. He is evil. He will win. The US is done.

Fri, 03/18/2011 - 14:20 | 1072393 Dr. Richard Head
Dr. Richard Head's picture

They could dig up Karl Marx right?  Shit, I'd take Groucho Marks right about now.

Fri, 03/18/2011 - 14:39 | 1072508 GoinFawr
GoinFawr's picture

Let me get this straight. As/per you:

The only person, alive or dead, that could be more 'left' than the current POTUS is Karl Marx?

<facepalms>

Fri, 03/18/2011 - 14:40 | 1072577 Dr. Richard Head
Dr. Richard Head's picture

You don't think Karl Marx is more left than Obama? 

Fri, 03/18/2011 - 14:46 | 1072615 GoinFawr
GoinFawr's picture

Heh, well sure, and by a Bill O'Reilly mile too, but that is not the question I asked.

Try again.

Fri, 03/18/2011 - 14:55 | 1072672 Dr. Richard Head
Dr. Richard Head's picture

I never quoted him as being the ONLY one, dead or alive, more left than Obama.  It was merely a set up for a stale Groucho joke.  Hey  ohhhhhhhh!!!!!!

Bush was just as left as Obama, so perhaps we could pull Bush back up for another shot. 

Fri, 03/18/2011 - 15:56 | 1072816 GoinFawr
GoinFawr's picture

Ahh, a segue, gotcha. You meant 'left' in a sardonic "Free to those who can afford it, very expensive for those who can't" kinda way. Phew. For a moment there I was worried that you've had a ZH account for over a year yet had somehow managed to learn absolutely nothing since. Appy polly logies.

Fri, 03/18/2011 - 16:00 | 1073009 Dr. Richard Head
Dr. Richard Head's picture

I appreciate your retort personally.  It caused me to think again about my remarks. Ain't nothing wrong with that. 

We're just building a community here. 

Fri, 03/18/2011 - 22:29 | 1074268 jeff montanye
jeff montanye's picture

re obama's support:  there was a new yorker cartoon some months back where some, basically new yorker readers were gathered at a table and one confesses "i put my obama t-shirt in the bottom of the drawer."  the disappearance of the stickers is the same as the "w '04" stickers in '05.  i think, largely because of the economy and his own lack of imagination, moral compass and guts, the guy is toast.  

and don't doubt for a second that these disaffected erstwhile obama supporters can't support ron paul.  i'm proof.

Fri, 03/18/2011 - 14:32 | 1072518 Shameful
Shameful's picture

Reagan/Nixon 2012.  It's time for America to stop discriminating against the dead and elect a couple of dead presidents to run our nation into the future.  The dead already vote in Chicago and think if the massive voter power of dead could be harnessed.  They have already been rotting in the grave, so they will have experience with America's future.  And no one can question their experience or credentials.  Reagan/Nixon 2012!

Fri, 03/18/2011 - 22:35 | 1074277 jeff montanye
jeff montanye's picture

eisenhower/nixon.  but what we really need is: who is the vice presidential running mate for ron paul and is there any way, in the event of paul's election, to avoid a president boehner given the skills and proclivities of the cia, the mossad, the "private sector"...?

Fri, 03/18/2011 - 14:29 | 1072487 Shameful
Shameful's picture

We could only be so lucky for Barry to run and win again. Think of it this way, would a mainline Republican be any better now or in the future?  No same exact agenda, same controlers, same decsions getting made. Difference being the idiot conservatives would rally behind a member of Red Team. While if Barry gets in those same idiot conservatives will grumble, and per cap they are more heavily armed then idiot liberals. This grumbling will get louder as the economy further deteriorates and the COL rockets due to Zimbabwe Ben.  Also the conservatives a larger % in the armed forces, and I would prefer them to not be happy. In addition new presidents have political capital, a returning Barry would be mostly used up. So a Barry win is a move towards a Soviet style breakup. After all with those idiot conservatives be more likely to saber rattle with a member of the red faction or a member of the blue faction from the Big Gov party?

The future is a dissolution of Union or Stalinist police state, no other way out based on; the entitlement population/demographics, culture, and debts.  Can Barry pull off the gulag state?  Maybe, maybe not.  But a Newt Gingrich has a better chance at it, especially riding a fresh horse.

Fri, 03/18/2011 - 17:11 | 1073410 DosZap
DosZap's picture

Shame, in normal times, I agree.

But, to be honest, we will not SEE 2012 elections.IMHO.

And that will be planned also.What Clinton wanted, berry will get, at the end of a gun.

As his ole bud Mao stated.

Fri, 03/18/2011 - 22:47 | 1074297 jeff montanye
jeff montanye's picture

shame, thanks for the pep talk.  i've felt something of the same: obama's different affiliation, affect and race could give republicans permission to oppose what are, in so many ways, w's policies.  so far not enough but the next two years promise to be eventful and ron paul keeps on keeping on, has finally a little bully pulpit and history looks to be going his way.  godspeed to him and his supporters.

 

doszap: i am stumped as to what clinton wanted and obeyme will get: the only revolutionary acts of the latter are the elaboration and making bipartisan the national police state of the true revolutionary w.  he's like that part of mao.  but mao didn't leave the capitalists in charge, as i remember.

Fri, 03/18/2011 - 14:12 | 1072348 Temporalist
Temporalist's picture

Probably took the bumper stickers off their cars because homeless were walking up to them and asking for some of that free money for food and shelter and medical care that was promised...or their cars were getting keyed but certainly one of those two.

Fri, 03/18/2011 - 14:22 | 1072434 Dr. Richard Head
Dr. Richard Head's picture

I've witnessed people with Obama stickers on their cars getting harassed on the interstate on numerous occassions, so I would think the abuse being suffered by Obamanites would be motivation enough.  Oddly enough, I would like to harass both Obama/Palin/McCain/Bush stickers in the same way, but it goes against me nature.

Fri, 03/18/2011 - 14:13 | 1072353 Larry Darrell
Larry Darrell's picture

They didn't remove their Obama stickers.

Those stickers just disappeared along with the rest of the car as part of the wonderful Cash for Clunkers program.

Although I was surprised the new cars didn't come with new stickers pre-installed since he touted that massive misallocation of capital as a huge win for Amerika.

 

Fri, 03/18/2011 - 14:37 | 1072555 DosZap
DosZap's picture

Dr.

Its because they do not want to be looked at every red light, and scorned.

That instead of Super Man, they got a Shoeshine boy.

Fri, 03/18/2011 - 22:51 | 1074301 jeff montanye
jeff montanye's picture

no.  not a shoeshine boy.  someone on a thread said something like: you are mean to jeffrey dahmer when you call obama a monster.

Fri, 03/18/2011 - 13:45 | 1072225 Bad Asset
Bad Asset's picture

I watched him at Northup and I was hooked.  I think Donald Trump will take some of his supporters, as he might be seen as more electable.

Fri, 03/18/2011 - 16:37 | 1073252 Al Gorerhythm
Al Gorerhythm's picture

Yes, we all yearn for saviors, in the vain hope of finding that authentic messiah who has the god-like power alleviate us of our responsibilities and absolve us of our sins. Both camps of red/blue thinkers need a gigantic kick in the nuts.

Fri, 03/18/2011 - 13:15 | 1072061 luk427
luk427's picture

Peter Schiff, Jim Sinclair and many others have been calling this for a long time now.   http://www.disclose.tv/action/viewvideo/12688/Peter_Schiff__The_Dollar_will_collapse/

Fri, 03/18/2011 - 13:16 | 1072077 duo
duo's picture

time premiums on ITM calls on RJA are very low.  It's the new DAG.

Fri, 03/18/2011 - 13:25 | 1072111 velobabe
velobabe's picture

but but, wait wait, what is going to happen to the dividends paid by the financial banks. buy backs. the dollar can't be losing ground on this occurrence. it was all planned yesterday afternoon, so the dollar should be saved and rising.

Fri, 03/18/2011 - 13:28 | 1072119 baby_BLYTHE
baby_BLYTHE's picture

Speaking of Ron Paul and Campaign for Liberty, anyone catch this?

Council on Foreign Relations: How Should the United States Address Its Chinese Trade Imbalance?

Speakers:   

Eswar Prasad, Nandlal P. Tolani Senior Professor of Trade Policy, Cornell University; Former Head of the China Division, International Monetary Fund

Peter Schiff, President and Chief Global Strategist, Euro Pacific Capital

Shang-Jin Wei, N.T. Wang Professor of Chinese Business and Economy, Columbia University; Former Head of the Trade and Investment Division, International Monetary Fund

Presider:   
Joyce Chang, Global Head of Emerging Markets and Credit Research, J.P. Morgan

http://www.cfr.org/issue/business-and-foreign-policy/ri4

-----------------------------------------------------------------------------------------
I donated to Peter's Senate run in 2010, but regret it after this and his inconsistent & buggy PAY-TO-PLAY radio broadcasts.

We are happy for your success, Peter. But Not all of us are worth 100 million!

I, myself, have only around 4k to my name (not counting student loans).

Fri, 03/18/2011 - 13:35 | 1072162 Rodent Freikorps
Rodent Freikorps's picture

As democracies go, the US is late on dying. Plan accordingly.

Fri, 03/18/2011 - 13:35 | 1072164 Temporalist
Temporalist's picture

So your point is that because Schiff is speaking to CFR he's now one of them?  Because he's been trying to alert the right people and dissent about the way things have gone and instead speak his mind about how they should go he's bad suddenly?

 

Fri, 03/18/2011 - 13:53 | 1072259 baby_BLYTHE
baby_BLYTHE's picture

No. I still admire and respect Peter. He is just another Politican to me now, though...

Although I am a firm beliver in the majority of NWO conspiracies, the Council on Foreign Relations is rather minor in the grand scheme of things.

So you are correct in saying it is not a really big deal. Just thought it was interesting to see.

Fri, 03/18/2011 - 14:25 | 1072452 Dr. Richard Head
Dr. Richard Head's picture

Add Peter's showing up at a Cock Borthers...excuse me...Koch Brothers event and Peter's desire to bomb Iran (with sufficient evidence) and I stopped following him like I used to.  He is spot on indeed, but his head is getting bigger. 

Congressman Ron Paul's humility speaks volumes for me, as I lack that sort of control.

Fri, 03/18/2011 - 14:36 | 1072541 Temporalist
Temporalist's picture

Don't confuse support and desire.

Fri, 03/18/2011 - 15:01 | 1072698 Dr. Richard Head
Dr. Richard Head's picture

Hard to tell with Peter.  Was he just trying to wrangle votes from the right and not look soft on nuclear war (Israel excluded of course) or were those his true feelings?  I don't know either way, plus it is moot since he didn't win.  Granted, he would have been much better than whoever else ended up winning.  Some wrestling cunt from my understanding.  Stupid sheeple of CT. 

Fri, 03/18/2011 - 15:28 | 1072837 Temporalist
Temporalist's picture

No the Dick beat the Cunt.

Fri, 03/18/2011 - 15:44 | 1072939 zaknick
zaknick's picture

I've always wondered if he's related to those Schiff at the redshield moneygrubbing moneychangers on Frankfurt on Maine.

That and his bomb, bomb Iran joo warmongering and he's SUSPECT

Fri, 03/18/2011 - 15:57 | 1073001 baby_BLYTHE
baby_BLYTHE's picture

The thing that really made me suspect of Schiff was when he announced plans for Europac to set up an "offshore base" of operations to service "sophisticated clients".

This is no better than what Goldman Sachs, JP Morgan or any of the TBTFs practice. They don't want to pay US taxes.

Fri, 03/18/2011 - 16:10 | 1073069 Temporalist
Temporalist's picture

Yes the office is in the Carribbean because of their tax structure.  He didn't make the rules he just plays by the ones given.  Don't hate the playa...

Fri, 03/18/2011 - 16:12 | 1073063 Temporalist
Temporalist's picture

Peter Schiff's father Irwin is in jail for tax protest serving 13 plus years in fighting for what he believes:

http://en.wikipedia.org/wiki/Irwin_Schiff

"In 1968 he testified[4] before the Senate Committee on Banking and Currency in opposition to the removal of gold backing from Federal Reserve Notes. In 1976, he published a book entitled The Biggest Con: How the Government is Fleecing You.[4] Schiff was a candidate for the Libertarian Party presidential nomination in 1996, and he participated in a Libertarian Party debate in Washington on July 5, 1996.[5]"

 

And your anti-semitic rants do what?

Fri, 03/18/2011 - 16:31 | 1073151 baby_BLYTHE
baby_BLYTHE's picture

I love that guy, Irwin Schiff!

America Freedom Fascism is one of the best documentaries ever made! He was in it.

http://www.youtube.com/watch?v=8NpTVXitOQk

Fri, 03/18/2011 - 13:17 | 1072073 Rusty_Griswold
Rusty_Griswold's picture

What types of silver do you buy and what do you pay over spot?

Fri, 03/18/2011 - 13:27 | 1072123 Debtless
Debtless's picture

10 oz bars - as little over spot as possible...Hans Tulving...+500

Fri, 03/18/2011 - 13:32 | 1072148 Rusty_Griswold
Rusty_Griswold's picture

I meant Blythe, but thank you.

Fri, 03/18/2011 - 16:33 | 1073233 baby_BLYTHE
baby_BLYTHE's picture

I have only ever used Apmex to purchase my Gold & Silver.

Fri, 03/18/2011 - 13:34 | 1072163 MonsterBox
MonsterBox's picture

I like the Maples.  they're about $3 over spot (I think) but are four 9's and readily recognizable.  big plus is they look real good.  i'm pretty sure in a monsterbox (500 coins), the premium is less.

Fri, 03/18/2011 - 13:40 | 1072187 Temporalist
Temporalist's picture

I think the maples are plain, with the head of some dead relic on them, and that extra .0009 isn't worth an extra $1...but then what is a dollar worth anymore anyway.  Better that you're buying Ag than an Android.

Fri, 03/18/2011 - 13:31 | 1072147 Temporalist
Temporalist's picture

Blythe girl stop saying he's never wrong please.  Perhaps if you think there is no evolution you'd agree with him in creationism...Adam and Eve and evil snakes, forbidden apples and 40 days and nights of rain and all that.

I'm fairly certain that RP would tell you himself that he's frequently wrong.

Fri, 03/18/2011 - 13:38 | 1072180 Rusty_Griswold
Rusty_Griswold's picture

There are a ton of people on here who are big fans of Ron Paul, but she seems to take it way too far...something doesn't add up.

Fri, 03/18/2011 - 13:46 | 1072224 baby_BLYTHE
baby_BLYTHE's picture

Already know about his father being a high-ordered Freemason.

she seems to take it way too far

So the dollar is fine? Ben saved us from a Depression? All this printing and bailing out will have zero cost nor consequence?

I thought we still had to pay for all of that...

I will keep my Gold and Silver. You all can keep your worthless cash. We shall see who stands strongest in the end

Fri, 03/18/2011 - 13:55 | 1072269 Rusty_Griswold
Rusty_Griswold's picture

What gold and silver are you talking about? Tell me about your investment strategy with physical because i can smell bullshit from a mile away.

Fri, 03/18/2011 - 14:14 | 1072351 baby_BLYTHE
baby_BLYTHE's picture

6 Gold Coins (1 Eagle+1 Maple+3 Krugs+1 Buffalo).

4 Rolls of Kennedy Halves

4 Rolls of Franklin Halves

10 Silver Coins (Variety)

All stored in my family safe, so they can stay protected after I die.

Fri, 03/18/2011 - 14:23 | 1072420 Rusty_Griswold
Rusty_Griswold's picture

Exactly.

Fri, 03/18/2011 - 15:03 | 1072706 SilverRhino
SilverRhino's picture

The locked chest is first stolen.

Fri, 03/18/2011 - 15:30 | 1072852 Temporalist
Temporalist's picture

Good that's where I keep smelly socks and my dirty underoos.

Fri, 03/18/2011 - 15:07 | 1072712 SilverRhino
SilverRhino's picture

Deleted

Fri, 03/18/2011 - 18:47 | 1073738 GubbermintWorker
GubbermintWorker's picture

So, a little over $10,000 worth. Not enough.

Fri, 03/18/2011 - 22:26 | 1074265 tmosley
tmosley's picture

Will it be enough when it is worth $100,000?  $1,000,000?

The point of owning gold and silver is that you never have "enough".  Their utility does not decrease, no matter how much you own.  Even if he had a thousand times as much, he could still buy more.

Fri, 03/18/2011 - 18:20 | 1073631 Al Gorerhythm
Al Gorerhythm's picture

Here's a kid who knows that it is a wise time to be salting away the pittance that is her savings and you swing a baseball bat at her for wanting to protect her hard-earned. Instead of buying rarities, your (unspoken) strategy of saving, is for her to lock her paper into a safety deposit box or savings account, ignoring that her supposedly safely stored labor is being destroyed by the onslaught of money creation, sorry, debt creation. Her lousy paper savings are losing purchasing power whilst everyone else, spending their wages or borrowing money into existence for the same purpose, can buy at current prices. When she goes to withdraw savings, they don't buy what they used to the day

she salted them away. Who the fuck is dumb enough to save their labor in a bank, or at all. Instinctively, logically, people are shunning depreciating assets/ Their depreciation is built in by their incessant growth.

This sorry excuse of making money, through dumb luck in a gambling house and somehow equating that with wealth creation is philosophically wanting. The same goes for equating the creation of money from thin air and extolling it through a falsified yardstick such as GDP and floating currency exchange. What kind of sick fucking joke is this. This paper money theme is a manipulated joke where the value is arbitrary decreed by self-interested parties. So big mouth, tell us all how we can be as smart as you, cos your post reeks of special needs mentality. You know the level I'm referring to: the one that infers that if we were all as smart as you, we would all be rich beyond our wildest dreams and if we all had a printing press, no one would have to do a days work again. Your put down over the extent of her savings, intoning that she is just a small worm in the dung heap, is pathetic, inversely implying that you're somehow, da big man. Little dick wanker.

I don't smell bullshit, I smell dumbfuck.

Fri, 03/18/2011 - 14:05 | 1072308 falak pema
falak pema's picture

Make love not war...Doomed, it is better to go two at a time locked in...like lovers.

Fri, 03/18/2011 - 23:42 | 1074379 sgorem
sgorem's picture

Looks like GOLD IS that "Stairway To Heavaaaaannnn"

 

Fri, 03/18/2011 - 13:01 | 1071984 jimijon
jimijon's picture

Just your mom.

Fri, 03/18/2011 - 13:00 | 1071987 camaro68ss
camaro68ss's picture

so im going long AR-15 and body armor. 2,000 Rounds should do

Fri, 03/18/2011 - 18:47 | 1073742 GubbermintWorker
GubbermintWorker's picture

So, about $1,000 worth....not enough.

Fri, 03/18/2011 - 23:41 | 1074380 sgorem
sgorem's picture

remember,save one for yourself.......

Fri, 03/18/2011 - 13:00 | 1071988 The Axe
The Axe's picture

Dollar destruction only tool left that The Bernanke has left !!!  Down down...Wealth creation up.....fucking sick joke..

Fri, 03/18/2011 - 13:11 | 1072045 cossack55
cossack55's picture

Are not "FED" and "store of wealth" mutually exclusive?

Fri, 03/18/2011 - 13:03 | 1071994 mt paul
mt paul's picture

supply line problems 

coming out of japan 

[ not coming out of japan ]

will muddle what is left 

of the economy ....

Fri, 03/18/2011 - 13:03 | 1071999 tmosley
tmosley's picture

Are you sure?  I'm sure there were some people in here telling me that gold would be below $1000, and silver would be $20.

I was sure I was supposed to be poor and bankrupted by now (despite the fact that my cost average is way below those two figures).

Oh well.

Fri, 03/18/2011 - 13:35 | 1072143 TheGreatPonzi
TheGreatPonzi's picture

There will be a bubble in PMs when they reach the level reached by stocks (401ks) and real estate ("Flip that house") in the sheeple zeitgeist. 

In other words, it's far from happening. Wake me up in 2018. 

But no words will ever reassure insecure, chart-obsessed gold investors who bought it as an investment and not as insurance policy against secular money devaluation. These people will never understand that the nominal value of real assets in dollars or quetzals does not mean anything. They were of the same breed that sold gold too early in 1921, Germany. 

Fri, 03/18/2011 - 13:53 | 1072249 Mark McGoldrick
Mark McGoldrick's picture

insurance policy against secular money devaluation....These people will never understand that the nominal value of real assets in dollars or quetzals does not mean anything.

While you guys are trying to protect yourselves from the world wobbling off its axis, you have missed a massive opportunity to increase your wealth.  Instead of exchanging your paper money for gold during the height of all this financial chaos, you could have exchanged it for nearly any other commodity or hundreds of the most popular equities, and be far wealthier today - measured in both real and nominal terms.  


Fri, 03/18/2011 - 13:53 | 1072264 TheGreatPonzi
TheGreatPonzi's picture

See my message just posted below.

Fri, 03/18/2011 - 13:42 | 1072195 Mark McGoldrick
Mark McGoldrick's picture

I'm not sure why everyone gets all loony about gold, and then brags about their metal portfolios to a bunch of internet strangers that don't care.

 - Just don't get it - 

Gold has been a HUGE under-performer since this bull market began two years ago.  If you compare its move with the move of nearly all the most popular equities/commodities, gold has been a dud - and that's in the face of historical money printing by all central banks around the world, and zero per cent rates.

Why all the goofiness about gold? Why not corn?  Or oil?  Or cotton?  Or palladium. Or platinum. Or copper.  Or LVS - it went from $2 to $50.  Silver has moved a lot, but it's moves are no different than many other commodities.    

So, again, why all the goofiness about gold? And don't tell me that it's a currency. It's not - I can't exchange it for any goods and services, except with rare exception. At this point in time, it's just another asset that helps preserve wealth, like tens of thousands of other options - and many of those have been better options.    

 

Fri, 03/18/2011 - 13:52 | 1072251 TheGreatPonzi
TheGreatPonzi's picture

Must agree with Mark on this one. 

I've never bought into the "gold is the ultimate currency, all people will start using gold when the fiat complex hyperinflates". 

Yes, gold is an ideal currency, but it does not mean it will come back any time soon as a currency.

Don't misunderstand me: I own some gold, and I love this metal, but I don't think it will protect more from inflation than any other commodity (such as food, copper or silver). 

When you take off the "gold is money" argument, which is pretty idealistic, while true in its fundamentals, it becomes only an immortal, inoxydable, dense, rare metal with high conductivity. 

More valuable than cash and real estate? Of course. More valuable than food and water? It has still to be proven. 

Fri, 03/18/2011 - 14:08 | 1072307 CrockettAlmanac.com
CrockettAlmanac.com's picture

More valuable than food and water? It has still to be proven.

 

So gold is not the ultimate currency because you can't eat it?

All joking aside a certain amount of gold will at a given moment purchase a certain amount of food and water. In other words price is discovered through a trade and as both parties must be satisfied for the trade to be completed then either 1) gold in a certain amount is equally valuable to a certain amount of food and water or 2) the seller of the gold believes that the food and water are more valuable and the seller of the food and water believes that the gold is more valuable.

It's all about the human action not inherent degrees of value.

Fri, 03/18/2011 - 14:11 | 1072333 TheGreatPonzi
TheGreatPonzi's picture

Again, don't misunderstand me. Gold is the ultimate physical hedge in the case of an hyperinflation: movable (not like real estate), dense (not like copper or water), durable (not like food). 

It's obvious that during an hyperinflation, the average farmer will be more likely to accept gold than cotton-linen. 

But for those who want to make some money before SHTF, and use this money to buy more physical gold, there are tens of far more profitable trades in times of moderate inflation, such as wheat or pork bellies. 

Fri, 03/18/2011 - 14:25 | 1072459 Diplodicus Rex
Diplodicus Rex's picture

"there are tens of far more profitable trades in times of moderate inflation, such as wheat or pork bellies"

That is a true statement. However, I learned a phrase on ZH many moons ago that perfectly describes this trade and those that RoboTrader keeps pushing; "Picking up pennies in front of a steam roller". To me, that sums it up perfectly. Sure there are other trades which you can conduct which increases the number of FRNs you hold. Every time you conduct that trade and you are successful you can turn to all the others who only hold PMs and don't trade, "There, I won. I told you so". And you'd be right. Until the day you pick up the last penny before the steam roller gets you. If you are wise and nimble and this is your game then you could have stayed in various trades and be up at the present time compared to someone who didn't.

 

I am an engineeer, not a trader. I have no skill set to be able to buy wheat or pork bellies and sell them later for an FRN (or GBP) profit. I wouldn't even know how. Therefore, I don't have the choice of picking up those pennies in front of the steam roller. So, I have to take the perceived 'safe' route. Swap GBPs for PMs and wait for the crash. If the crash never comes then I'll look like a bit of an idiot in front of my peers, although, unless I lose money swapping back to fiat then I will be no worse off. However, if the crash does come, I'll be ahead of the game with something that I know people will trade for whatever the replacement fiat currency will be. And, on the basis I also have stored food and fuel I am not likely to starve or freeze to death.

DR

 

Fri, 03/18/2011 - 13:58 | 1072265 Temporalist
Temporalist's picture

Take some dollars to China and walk into a store to buy any roughly $1000 object.  See if they'll take the dollars over the gold.  Russia...think they'd like gold?  India, Vietnam (although it may not be legal)...I hope I named enough places.

RAF pilots are not given paper currency in their survival kits, they are given a gold sovereign coin.  Why?  Because no matter where on earth they crash someone will take the gold but the paper probably not.

You are on a Gold thread on a website that is almost entirely pro gold/silver...why would you post something so ridiculous as to ask why?  Sorry you don't get it; we do.

Fri, 03/18/2011 - 14:22 | 1072390 Mark McGoldrick
Mark McGoldrick's picture

I hope I named enough places...

Sure.  You can always provide very obscure examples (like RAF pilots and their survival kits), but I'm referring to 99.9999999-->% of all transactions in this world - that's far more realistic and practical to this discussion.  

I have no doubt that gold will rise over the long term.  But I question how much wealth opportunity was lost by getting so fanatical about gold over the past two years.  Damn near every commodity and the most popular equities performed far better.  And I also wonder how many people exchanged their equities for gold during the crash, and, because of that, have seen their net wealth rebound far slower than if they had just done nothing at all.  

Fri, 03/18/2011 - 18:23 | 1072868 RockyRacoon
RockyRacoon's picture

From Gary North:

 

“But Gold Will Fall!”

After the central banks stop inflating, gold will indeed fall. So will everything else except currency, including Treasury bonds. Will this be before the central banks produce hyperinflation? I hope so. If not, gold will fall on the far side of a currency collapse, where the value of a dollar fell to zero value. Gold will never fall to zero value. The dollar could.

“But gold will fall,” the experts tell us. Fall from what? “Today’s unsustainable price.” Did you recommend buying gold before the price got unsustainable. “No.” Why not? “Because gold’s price is always unsustainable.” It was unsustainable at $257 back in 2001. “No, I mean it is unsustainable this high.” How high? “Whatever it is today.” So, gold will fall from where it is today. “Yes,” So, you have shorted gold on the futures market. “No.” Why not? “Because gold might go up.” Why? “Because gold may be sustainable for a while.” How long until it falls? “One of these days.”

Here is their rule: “Buy low, sell high, except when it’s gold. Never buy gold.”

Here is the meaning of this rule: “Believe in the power of the central bank to provide wealth, in good times and better times.”

What about bad times? “There will be no bad times, as long as central banks have the power to create money.”

But unemployed workers are having bad times. “They don’t count.” Why not? “Because they don’t work on Wall Street or in Washington.”

Underwater home owners are having bad times. “Only briefly. Home prices are unsustainable.” You mean they will fall further. “No, I mean they are unsustainable this low.” Why? “Because the Federal Reserve System is pumping in money.”

So, should I buy gold? “No.” Why not? “Because gold’s price is unsustainable.” You mean it will fall. “Yes.” But housing prices will not fall. “Correct.” But they have been falling this year. “This is a temporary correction.” Like the price of gold whenever it falls? “No. When the price of gold falls, it is a return to normal pricing.” So, when the price of gold rises, this is a temporary correction. “Correct.”

It has been rising for over nine years. “It’s a temporary correction.” How long is temporary? “However long it takes for gold to fall.”

Would you favor a policy of the government selling its gold? “No.” Why not? “Because that would require a full audit of the Federal Reserve System.” Why shouldn’t there be an audit of the Federal Reserve System? “Because we must maintain the independence of the Federal Reserve System.” Just as we do with respect to . . . to. . . . what other government agency? “The CIA.” You think the CIA should be independent. “I think the CIA has guns and badges and bombs and poisons, so I don’t mess with the CIA. The CIA gets what it wants.” But so does the Federal Reserve. “This is a good thing.” Why? “Because the Federal Reserve is the source of wealth.” So, digits are wealth. “Yes.”

Gold is wealth. “You can’t eat gold.” You can’t eat digits, either. “You can get people to accept digits in exchange for wealth.” How? “With badges and guns.” Like the CIA. “Now that you mention it, yes.”

Fri, 03/18/2011 - 19:57 | 1073972 doggings
doggings's picture

Mark I would suggest you check this site out thoroughly and read until you understand

http://pricedingold.com/ you will find that gold is holding it's own quite nicely.

 

 

 

Fri, 03/18/2011 - 13:55 | 1072268 CrockettAlmanac.com
CrockettAlmanac.com's picture

And don't tell me that it's a currency.

 

Why are you asking for people's opinions and then telling them to avoid certain answers? If you want to ask a question go ahead and ask it, otherwise...

Fri, 03/18/2011 - 14:04 | 1072304 Mark McGoldrick
Mark McGoldrick's picture

ok... you're right.

Can someone tell me how/why I should have viewed gold any differently than any other commodity during all this financial chaos that the world has gone through in the past few years?  

For everyone, the point is to preserve wealth against fiat depreciation, and there seems to have been so many better options.

There is definitely a valid point to be made about gold the further you extend the timeline, because it is very difficult to trust any equity over 10-20 years.  However, in these moments of pure chaos, it seems that much wealth opportunity was overlooked by focusing so squarely on gold.      

Fri, 03/18/2011 - 14:12 | 1072350 Diplodicus Rex
Diplodicus Rex's picture

"it seems that much wealth opportunity was overlooked"

Wealth, measured how? FRNs or $Zim? If collecting fiat currency with lots of zeros makes you happy start buying $Zim from ebay. A $100Tr note will cost you about £2 including postage.

Fri, 03/18/2011 - 14:29 | 1072482 Mark McGoldrick
Mark McGoldrick's picture

Sorry.  But your post makes no sense whatsoever.

You're just playing into the typical doomer gold-bug hysteria and cliches, making it impossible to have a realistic discussion. 

Fri, 03/18/2011 - 14:41 | 1072573 tmosley
tmosley's picture

It makes plenty of sense.  Your cognitive dissonance is just preventing you from understanding the question.

This is a very basic question:  why should one measure value in terms of an admittedly depreciating currency?

And yes, gold underperforms sometimes.  Sometimes it outperforms.  There is a reason for that.  Other things go up and down in value.  REAL value, not nominal.

If you want to make money, every gold bug in the world, save perhaps for the freegolders, will tell you you should buy silver.  They have been correct.

Fri, 03/18/2011 - 15:25 | 1072741 Mark McGoldrick
Mark McGoldrick's picture

why should one measure value in terms of an admittedly depreciating currency?

WHAT?

Most ironically, that is EXACTLY what you guys do every day when you talk about the price of gold and silver.  With near maniacal obsession, you're always discussing the dollar price of metals - every day, thousands of times in the comments section.  In fact, if there was one prevailing topic on ZH for the past 8 months, it was the rising price (in dollars) of silver. You guys have been ALL ABOUT the dollar price.  Silver to $50!  Silver to $100.  Gold to $5000!  All day, every day. 

And making the distinction between real and nominal is meaningless to this discussion.  The REAL (and nominal) value of the most popular equities and dozens of commodities has far outperformed gold during this crisis.  Your wealth, in both REAL and nominal terms, would have been far greater in hundreds of assets other than gold.  If you wanted, you could then exchange those various assets for gold today and have far more of it.  The point is simple:  holding gold through this crises had a much larger opportunity cost than goldbugs realize. 

During this entire financial crisis, gold has been a relative loser.  Over 50 years, sure I believe in it.  But even over 10-20 years, gold is questionable - just look how flat gold was until 2002.     


Fri, 03/18/2011 - 15:34 | 1072875 Temporalist
Temporalist's picture

Working within the constraints of popular knowledge and understanding.  When the Champions of PMs say the value of paper is dropping average Jane and Joe don't get it but when described as PMs rising in price they get it.

Fri, 03/18/2011 - 15:43 | 1072927 tmosley
tmosley's picture

So?  When we say those things, we are not saying that gold is gaining purchasing power so much as we are saying the dollar is losing it.  Holding gold is very much like being first in line for the dole of freshly printed money--you get to spend it without losing to inflation.

And yes, it is certainly possible to outperform gold--for a while.  But what do you do when some disaster happens and suddenly stocks are worthless?  What do you do when some foreign entity liquidates $400 billion of treasuries?  You can hold onto your gold.  Your stocks may well go bankrupt.  Your bonds may default.  It's called risk, and gold is the best risk free asset in the world.

lol, you think gold is questionable over 10 years?  You are awash in a sea of cognitive dissonance.

As I said before, practically all of the gold bugs who are interested in capital appreciation are holding silver.  Not even a fool like you can dispute silvers outperformance of EVERYTHING over basically every time scale, save the 31 year.  Even that hiccup looks to be far outpaced as the fundamentals grow more and more in silver's favor.

But hey, I don't need you crowding my trade.  Go buy some internet stocks instead.

Fri, 03/18/2011 - 14:26 | 1072449 Temporalist
Temporalist's picture

Dictators are stealing and running off with gold not paper.  Maybe you'd learn something from them.

Fri, 03/18/2011 - 14:57 | 1072641 Mark McGoldrick
Mark McGoldrick's picture

That's only because these dictators are "secretly" trying move massive amounts of wealth without a paper trail from a country erupting in chaos. Besides, what the hell do you think would happen if Ben Ali dumps tens of billions of Tunisian dinar into that thinly traded market as he flees? In the handbook for fleeing dictators, that's rated as very impractical and dangerous.  

It has no meaning or application to our own currency and our everyday transactions.    

Fri, 03/18/2011 - 15:35 | 1072876 Temporalist
Temporalist's picture

So gold is wealth.

Fri, 03/18/2011 - 15:44 | 1072932 tmosley
tmosley's picture

They left behind dollars and euro as well.

Does that tell you anything?

Probably not.

Fri, 03/18/2011 - 14:32 | 1072504 mendigo
mendigo's picture

i am curious about the same point and you ask a reasonable question and get only flaky answers either no one knows the answer or no one who does know wants to bother the only thing i can see about gold is it is shiny and corrosion resistant and maleable the other thing about gold is it is in limited supply which works for you or against you depending on the situation i think ultimately its like stocks its only valuble because of a cultivated mistique and because so many people claim it is valuable until one day maybe the emporer has no clothes that is why people all so irrational about it because maybe they bought a load of magic beans and maybe one day others will realize it and it will happen in a matter of days maybe less so don't ask so many questions and nod your head like you understand - capice?

Fri, 03/18/2011 - 15:40 | 1072908 RockyRacoon
RockyRacoon's picture

If you can find the "l" on your keyboard you can certainly find the "." as well.  I could then forgive the lack of beginning a sentence with a cap.

Fri, 03/18/2011 - 15:45 | 1072938 tmosley
tmosley's picture

Try again, this time without the paragraph long run on sentence.

Fri, 03/18/2011 - 16:02 | 1073037 RockyRacoon
RockyRacoon's picture

Cormac McCarthy he ain't.

Fri, 03/18/2011 - 20:05 | 1073990 doggings
doggings's picture

this time last year Gold was "the best investment of the decade"

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/7375415/Gold-is-decades-best-performing-investment.html

it won't be very far behind the leaders in the next decade either

Fri, 03/18/2011 - 14:06 | 1072326 Diplodicus Rex
Diplodicus Rex's picture

" - Just don't get it - "

Ah, there's the problem right there.

You seem to be under the misapprehension that the members of this site swap their FRNs (GBPs in my case) for PMs in order to swap them back again later when the purchasing power of the FRNs has dropped. You could not be further from the truth. The purpose of swapping FRNs for PMs is not to become richer when measured in FRNs. If that was the aim we'd be buying $Zim. The purpose is so that when, not if, the $£Y etc go the way of all other fiat systems in history they will be left with something hard and tangible which has been recognised from ancient history as a store of wealth. Now, is it rational to dig an ore out of the ground, refine it and stick it in a vault? No, it most certainly is not. Luckily when it comes to gold, during and after the collapse of a fiat currency, the irrationality is forgotten and lo and behold the gold is used as a currency.  This happens without announcement, without decree, without a UN sanction or a letter from your mother. You may not be able to spend your PMs in Walmart today because the dolt behind the cash register doesn't know yet that his fiat is worthless. But he'll find out soon enough. And when he does, he surely will accept PMs because there will be nothing else for a while until the next fiat comes along to take its place.

DR

Fri, 03/18/2011 - 15:59 | 1073013 They_Live
They_Live's picture

Sometimes normalcy bias is so stong you just have to grab them by the lapels and shake some sense into them.

Fri, 03/18/2011 - 14:33 | 1072454 burncycl
burncycl's picture

I think you made the argument for gold in your last paragraph. The reason we hold it in our portfolios is because it helps preserve wealth.

Yes, there are other assets out there that will perform better. But, living in uncertain times, we choose precious metals as a source of security. The other reason we choose precious metals (like gold) is because they are “hard assets”, unlike other commodities (e.g. corn).

Corn will spoil….Oil, though considered a hard asset, has a shelf life. Gold does not.

While gold may not be considered your typical currency of choice, it is a currency. You can exchange it for goods and services or for paper that can be used in exchange for goods and services (currency by proxy). My gold maples are legal tender with the added bonus of being worth more than face value.

As an investor, you pick and choose your battles. Still, I would recommend holding a portion of your portfolio in this asset (preferably the physical asset). Although it might not perform as well as say equities, it will be there for you if/when something terrible happens (like an economic catastrophe). Also, I like to look at my precious metals as a savings account. I’m sure given the low interest rates of today; your “precious metals savings account” will likely perform better than the best high yielding interest rate you can get at a bank.

In gold and silver, I have done 12% and 84% respectively in just 6 months. My high yield cash account gives me a whimpy 1.35%. It makes sense. How's that for bragging? And yes, I am a little loony about shiny metal coins. Own some of your own, and then come talk to me.

Don’t hate ;)

P.S. I completely agree with Diplodicus Rex post above^^^^.

Fri, 03/18/2011 - 14:53 | 1072658 DosZap
DosZap's picture

Mark,

Most here are buying Gold not to make money, they have plenty already.

The simple reason for buying GOLD, is because it will be the Last & Only man standing .

You folks keep hanging onto your equities, and Frn's.

When the time comes we will see what is  solid as a rock, after all, every Sovereign govt in world must be wrong.

You just don't get it, when this blows, paper of any kind will be just that, paper and worthless.

Then tell us about your equities,and dollars.

Fri, 03/18/2011 - 19:42 | 1073909 Diogenes
Diogenes's picture

I didn't buy gold as an investment. It is not an investment, it produces no dividends, rent, or interest. It is a safe haven when all other investments  fail.

A lot of savvy people believe that the rally of the last 2 years is artificial and the market is being propped up by the government. They believe this, in part, because the government has said so many times.

So, what happens when an artificial propped up market gets its props knocked out? When is that going to happen? I don't know and neither do you, all I know is I do not want to get sucked into a phony market run by crooks where I have no control and no way of knowing what is going to happen next.

Even if it GOES UP.

Fri, 03/18/2011 - 13:06 | 1072005 99er
Fri, 03/18/2011 - 13:07 | 1072007 Fortunes Favor
Fortunes Favor's picture

Precious metals (Gold and Silver) continue to offer the best harbor amidst the financial tempest.


Precious Metals Outlook: Debunking Media Myths About the Japan Tragedy @ http://rosenthalcapital.com/blog/2011/03/japan-tragedy-gulf-of-mexico-bp-spill-follow-similar-news-cycle-precious-metals-outlook/

Fri, 03/18/2011 - 13:07 | 1072008 east paris trader
east paris trader's picture

Yeah, tell me about it.  I've been watching my gold futures get sold off as I watch dx tank... 

Fri, 03/18/2011 - 13:06 | 1072010 apberusdisvet
apberusdisvet's picture

Pms should already be up 50%; at least; the flock of Black swans is clouding the sky; Blythe is going through menopause; the next 30 days may be the last opportunity to BTFD.

Fri, 03/18/2011 - 13:08 | 1072015 prophet
prophet's picture

Single global currency okay as long as it is not fiat?

Fri, 03/18/2011 - 13:08 | 1072025 6 String
6 String's picture

....and the Russell 2000, the ultimate surger.

Fri, 03/18/2011 - 13:14 | 1072064 cossack55
cossack55's picture

Let the bombings begin. Instructions to all pilots: Ensure your targets are on one side or the other. Happy hunting.

Fri, 03/18/2011 - 13:09 | 1072029 redpill
redpill's picture

I love gooooooold.  Izn't dat veird?

Fri, 03/18/2011 - 13:11 | 1072031 RobotTrader
RobotTrader's picture

XAU to Gold ratio is now at rock bottom again.

Flat out, the mining stocks are the absolute worst performing sector this year, except for maybe shipping and solars.

Who would have thought that with money supply and debt getting hockey-sticked to new, world record highs virtually every week, that the gold miners would be such lousy performers?

Eric King must be pulling his hair out.

Fri, 03/18/2011 - 13:20 | 1072085 Sophist Economicus
Sophist Economicus's picture

Looks like miners are a screaming buy!

Fri, 03/18/2011 - 13:45 | 1072218 MonsterBox
MonsterBox's picture

careful.  i lost $22k on a mining stock where the metals held strong.  Early '90's, PegGold went to zero.  it was a small company but even the big boys failed to perform as well.  My bad luck drives me to the metals, widely recognizable coins only; no stocks, no way.

Fri, 03/18/2011 - 13:49 | 1072241 Sophist Economicus
Sophist Economicus's picture

Agreed!   I don't pick stocks, not that good.   I have been buying into the major and junior ETFs for gold and silver miners.   I'm assuming a few are gonna fall off the board - especially in the juniors, but with the ETFs there is some portfolio protection.    If there is a mania at some point, even the dogs will ramp and i'll sell the breakouts.   Anyway, that's the plan, which, with my luck, may never happen....

Fri, 03/18/2011 - 13:24 | 1072104 Bay of Pigs
Bay of Pigs's picture

Agreed. It is frustrating to hold some of the miners. They are lagging badly. Making the distinction between bullion and stocks would be helpful.

Your constant gold bashing as the DXY crashes through support is truly laughable.

Fri, 03/18/2011 - 13:23 | 1072110 Robot Traders Mom
Robot Traders Mom's picture

So by this year, you mean the last 10 weeks. What are they over the last year and last 5 years and last 10 years?

Because you are a nerdy little troll that has no ability to socialize with other human beings in the real world, you say the dumbest shit so you can have some sort of social interaction through your parent's basement computer.

Nerd.

Fri, 03/18/2011 - 13:27 | 1072127 velobabe
velobabe's picture

your son is a

Nordo.

Fri, 03/18/2011 - 13:28 | 1072135 baby_BLYTHE
baby_BLYTHE's picture

Even I am accumlating more junks than Robo today!

You cannot make this stuff up!

Where is Michael?

Fri, 03/18/2011 - 13:10 | 1072041 alien-IQ
alien-IQ's picture

2010 low was 75.69...already reached and breached by a dime.

All hail the Bernank.

Fri, 03/18/2011 - 16:23 | 1073181 Temporalist
Temporalist's picture

And try finding the MSM mentions of the dollar hitting a one year low.

Fri, 03/18/2011 - 13:13 | 1072044 stuman
stuman's picture

"Machetes....

Because sooner or later every gun runs out of bullets"

- A Man Called Stu'ism ;) 

 

Fri, 03/18/2011 - 13:18 | 1072086 centerline
centerline's picture

Grab yourself a Paul Chen Practical Plus.  Cool as a decoration until the ammo is depleted.  Probably makes a good hedge trimmer - but would likely scare the nieghbors.  :-)

Fri, 03/18/2011 - 13:34 | 1072165 I Got Worms
I Got Worms's picture

I've got a Cold Steel 18" Latin that you could shave with. For landscaping purposes only, of course.

Fri, 03/18/2011 - 15:52 | 1072966 RockyRacoon
RockyRacoon's picture

Nice!  I just ordered 3 different machetes.

Thanks!

Fri, 03/18/2011 - 16:23 | 1073168 Temporalist
Temporalist's picture

Look at an authentic Kukri they are more weighty than the contemporary style and serve the purpose of axe as well as machette with a wedge shape and heft for driving into wood.  Can't chop through Giddeon's Bible with a newer model as easily.

Fri, 03/18/2011 - 16:49 | 1073316 RockyRacoon
RockyRacoon's picture

I wasn't thinking of wood as my primary material.

Fri, 03/18/2011 - 19:20 | 1073835 Rodent Freikorps
Rodent Freikorps's picture

The shorter blade will increase your speed factor a lot. Wade in without fear, and you will rule.

Fri, 03/18/2011 - 23:19 | 1074340 RockyRacoon
RockyRacoon's picture

I added the Scottish Spike to the order too.  I like the neck chain sheath.

http://www.coldsteel.com/spikeseries.html

Sat, 03/19/2011 - 08:17 | 1074861 Rodent Freikorps
Rodent Freikorps's picture

For fat chair-bound suckers, they make excellent weapons. Good choice.

Fri, 03/18/2011 - 13:56 | 1072200 KinorSensase
KinorSensase's picture

double double post post

Fri, 03/18/2011 - 13:43 | 1072208 KinorSensase
KinorSensase's picture

and all my life I've wanted an excuse to need a samuri sword...though I've never needed an excuse to want one.

Fri, 03/18/2011 - 14:03 | 1072297 Temporalist
Temporalist's picture

When I can exchange one troy ounce of gold for the most expensive Samurai sword...I'm all in Katanas.

Fri, 03/18/2011 - 13:14 | 1072049 vas deferens
vas deferens's picture

Soon we will look back and laugh at this post ($30 move in 2 days) this is only 2%. 

When gold goes up 100 points in one day, may be only weeks away, this is less then 7%.  

Fri, 03/18/2011 - 13:13 | 1072050 Jason T
Jason T's picture

dollar crashes.. like the German mark did ... them scapegoats, whomever theye be,  are in trouble.

Fri, 03/18/2011 - 13:27 | 1072116 PY-129-20
PY-129-20's picture

Grandfather:
Goldmark -> Papiermark -> Rentenmark -> Reichsmark -> Franc -> Saar-Mark -> Deutsche Mark

Father:
Reichsmark -> Franc -> Saar-Mark -> Deutsche Mark -> Euro

Me:
Deutsche Mark -> Euro -> ???

What a terrible history.

Fri, 03/18/2011 - 13:51 | 1072253 A Man without Q...
A Man without Qualities's picture

And yet, despite everything that has happened over the last 100 years, you live in one of the most prosperous, peaceful and civilized places on earth.

Fri, 03/18/2011 - 15:28 | 1072832 css1971
css1971's picture

Ja, aber money "geld" ist. Nay?

Probably a hint there. Plus german cities are full of muntzen laden. I've never seen anywhere else with quite so many, so there's a healthy wariness of fiat currency due to the history.

 

Fri, 03/18/2011 - 16:04 | 1073047 RockyRacoon
RockyRacoon's picture

Remember notgeld?

Fri, 03/18/2011 - 13:30 | 1072142 baby_BLYTHE
baby_BLYTHE's picture

Dr. Paul has some German marks from 1923 framed on his wall to demonstrate the effects of hyperinflation.

Take a tour of his office and see for yourself (Obviously, chairsatan hasn't):

http://www.youtube.com/watch?v=2XkabcSkpOA

Fri, 03/18/2011 - 13:39 | 1072182 PY-129-20
PY-129-20's picture

Don't need to, dear Baby Blythe. I have 50 Million + 20 Million Papiermark at home. My grandfather fought in WWI and WWII - still have both Wehrpaesse (military ID card) - it's a reminder within our family - never to forget this horrible part of our German history.

http://wapedia.mobi/thumb/9ac5499/de/fixed/470/313/50_millionen_mark_1_s...

http://de.academic.ru/pictures/dewiki/50/20_millionen_mark.jpg

 

Fri, 03/18/2011 - 13:40 | 1072192 Ricky Bobby
Ricky Bobby's picture

Keep a couple in my desk for good luck charms.

Fri, 03/18/2011 - 14:19 | 1072355 MonsterBox
MonsterBox's picture

Scapegoats - to me, during a SHTF scene, that's anyone who doesn't resemble the rabble living under a bridge or tent city (smells and in wornout jeans & ratty Simpsons tee-shirt)

Gotta blend in with the rabble as a little gray man or up on the wrought-iron fence you go (ass-down on a picket) as a guilty profiteering rich guy.

JMHO from failure space

Fri, 03/18/2011 - 13:15 | 1072053 SilverRhino
SilverRhino's picture

I'm basing my strategy on the GSR.  In the last week it's ticked up from 39.8:1 to 41:1 (silver to gold).   Considering the investment costs and liquidation costs of physical?  This is just noise in the overall pattern.

 

Fri, 03/18/2011 - 13:15 | 1072054 e_u_r_o
e_u_r_o's picture

gold has performed terribly, especially in euro terms

Fri, 03/18/2011 - 16:07 | 1073055 RockyRacoon
RockyRacoon's picture

Put that on a time line and you'll have a place to begin a discussion.

Fri, 03/18/2011 - 13:14 | 1072055 bobgonzales
bobgonzales's picture

A $ based investor has suffered close to permanent impairment of capital over the past 25 years and, will continue doing with a $14 trillion dollar debt that can only be hyper-inflated away or, renegged upon. Most Americans never look at it this way but, in 1985, for every $1 debt, I had to pay with CHF 2.85 (Swissy). Today, that same 1$ bill, costs me .92 cents ( Swiss Franc cents).For high net worth $ based investors, hedging the continued risk of permanent impairment of their capital is not an option, rather an absolute essential or, do you trust the present administration to care for what you have worked so hard for over these many years ??

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