Guest Post: The Screaming Fundamentals For Owning Gold And Silver

Tyler Durden's picture

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Flore's picture

Why should you own silver if you can own gold.. It's a mystery to me why people want to invest in things people eat with...

66Sexy's picture

Silver is consolidatin'.. fixin' to spike.

HungrySeagull's picture

I can accumulate silver easier and faster than Gold at my humble income when thought of in terms of ounces.

At some point I am making a bet that Gold is weighty and massive. Thus harder to take off from 1500 to 5K By then I should realize gains in Silver and use some of it to one ounce of gold every 16 of silver.

We will worry about 60K later. Much later.

Little by little wins the race. No hurry on the Gold just yet and accumulating silver when we can. It can also be used to make bullets in a very bad pinch.


The Market is People who want profits TODAY! Even in one hour or less. Nothing else is acceptable. Why do you think there is such a war with hardware and fast fiber optic to literally suck the decimal amounts so small right out of the markets. There was a movie about that once.... the one with the big glasses worker mumbing... that is my Stapler... My stapler... someday I burn this place....


While the Boss flits from one flower to the next quickly (Pun intended) the slow one plans carefully in span of months to years ahead. Even if he was stuck in the Subbasement level surrounded by Storage.

JW n FL's picture  Treasury Direct $14 Trillion Debt   $15 Trillion in Loans  ='s $29T 3 Years 300% More Dollars Printed Out of Thin Air!


in 3 years.. NOT! including TARP / TALF / FED SWAP Windows.. and / or any other.. than what is sourced and sited above..

$18 Trillion in 3 years! $18 TRILLION! on top of the other $14 Trillion up top!!


this is why you should be in tangilbles! like silver & gold.

JW n FL's picture


and please lets NOT! forget that since Jan. 1 of this year (a month ago so its is a larger number now) that the FED has added another 20% to the Monetary Base.


Plainly, since January 1st your money is worth 20% Less!


that is just this year so far, this number is NOT! inclusive of the numbers since 2007. At some point people will demand "X" amount of paper for "X" amount of goods in relation to the true value of the paper being offered.

SamuelMaverick's picture

Whoever junked JW's post is an idiot.

mkkby's picture

Plainly, since January 1st your money is worth 20% Less!

It's not that simple. My cost of living has barely budged.  Neither has yours.

XenoFrog's picture

It'll be good to have some real money around when they decide to officially devalue the FRN for the NEW FRN*


*Patent Pending

Re-Discovery's picture

Gold Teeth?  Ever heard of Flavor Flav?

Clueless Economist's picture

I advise NOT owning gold and silver.

It makes much more Keynesian sense to own fiat paper money. 

As I lectured in my Nobel Prize speach the fact that with the printing pressing running full time, it will be much more easy to accumulate newly printed federal reserve notes. 

Gold and silver are archaic elements - avoid them at all cost.

Cone of Uncertainty's picture

Jesus christ you fucktards junking this most excellent post are idiots.


I hereby unjunk you Clueless Economist and banish all fucking dickbeaters to a week long Paul Krugman economic seminar.

Pladizow's picture

To: Clueless Economist (Krugman?)

Agreed - I continue to only accumulate processed cotton pulp.

Why would anyone think gold or silver with a finite supply would ever be more valuable then government produced linen or binary code that is infinite?

Silly gold bugs!

Confuchius's picture

"Clueless economist"

An oxymoron

mayhem_korner's picture

I think you meant "redundancy."

kimjongil's picture

an oxymoron is a contradiction of terms.  joke execution fail.

Greeny's picture

Grow and accumulate weed! :)))

MsCreant's picture

I want ugly, retarded, Keynesian babies with you, and then I want to go broke and not be able to feed them.

I want your ugly, I want your disease,

I want your everything as long as it's free...

I want your horror, I want your design,

'Cause your a criminal as long as your mine...

MsCreant's picture

For the junk and run types, if you imagine Lady Gaga in a pointy bra singing this song, "Bad romance" to this guy, it really is quite funny and fitting. I don't think he would get it, even as it was happening to him. Do you get it, even as it is happening to you?

Fiat is the bad romance. Once you know that, you're a free bitch baby.

nuinut's picture

Silver's ultimate impotence will disappoint too. Must be the steroids.

downrodeo's picture



 I busted out laughing when I saw that. Well done!

Al Gorerhythm's picture

Can the silver institute please advise on how year after year, magically, silver is the only commodity where demand equals supply, right down to the very ounce. It's as if the miners and recyclers know exactly how much to drag out of the ground or put through the furnace, right down to the last investor's demand. Freakishly well managed. Put these guys in charge of treasury.

Jack Napier's picture

Did you read the chart? It's because the difference is being made up by above ground available scrap, which Chris Martenson (generously) estimates around 1 billion oz. Some others think closer to 500-700 million oz. Point is, mine supply does not meet demand, so they're using up hundreds of years of reserves. Get ready for silver to be worth MORE than gold.

SheepDog-One's picture

What? Well this will certainly be a shock to bigmouth PM mockers such as 6 String, Robo, and Greeny.

redpill's picture

The problem is that despite the longer term fundamentals being solid for PMs, it's hard to get a lot of folks to listen when there are huge price swings, paper market manipulation, margin hikes, all of which cause short term losses (in terms of fiat USD, albeit). It's a rough rollercoaster ride.

Temporalist's picture

RP it's mainly because their "financial advisors" make no cheddar on advising PM as insurance.  People are convinced that any interest they "earn" on their savings is better than none even if it's actually negative returrns that they don't realize.  Even with dividend paying stocks they've been sold on the premise that getting a few percentage points after inflation is ideal without considering the counterparty risk and volatility that a stock has and that the initial investment can plummet or even disappear.

The financial media, Wall St. and central banks have had decades to promote their products and propagandize; it's going to be a long, tough march uphill to change popular opinion.

redpill's picture

I hear you, I can't even get my company to offer a money market option in our 401k plan, much less anything as "extreme" as precious metals exposure.

Our 401k administrator insists that "it's better to offer fewer options so people don't become overwhelmed."  And of course the choices are a bunch of crappy mutual funds.  What a bunch of self-serving bullshit.

HungrySeagull's picture

Not to mention there is just one 401K administrator making 54 thousand per year managing a few thousand boring 401k accounts that are generally fed by computer deductions off the willing sheep baa'ing as they slave away in the texile factory.

MsCreant's picture

Not so rough if you just buy and hold. I admit I got nervous and studied the 2007, 8, and 9 charts carefully this time and asked "how low can it go?" Knowing the dip always happens at options expiration and summer kept me firmly on the bull.

redpill's picture

Oh I did quite some time ago, so I'm not worried. It wasn't that long ago that I would have never dreamed about complaining about silver in the $30s!

Ranger4564's picture

And when there is the imminent threat of the collapse of all of human civilization on a global level.  I own G / ; almost my entire portfolio is in G/ S but I too wonder what the hell is it good for, if the financiers are going to confiscate all real assets and enslave us in feudalism.  I do not have the $1mill minimum required to be considered a human being per the Dodd Frank bill / FX determinations.  I'll be a peasant, apparently. :)

LongBalls's picture

Hang on to it. When we go to the cashless society PM's will be the black-market currency. Look at Gaddhafi. If it were not for his gold reserves he would already be dead.

Greeny's picture

Silver trades with the Market and Economy.
So, if you want 60$/oz silver you better cheer what
Robo has to say. DOW 15000 = Silver $65/oz and gold
$1700 or so. I know, "Physical" blahh-blahh, but it's
still priced in $USD, that's how we know, how much
is actually worth.

iLoveMisesToPieces's picture

That is until sound money makes its return (and it will).  All it takes is one currency to be fully backed by gold and Gresham's law will take over.  The price will explode on supply and demand issues.  Right now, gold and perserving purchasing power as fiat currenices depreciate.

RobotTrader's picture

Actually, with deep cyclical stocks like AKS and X exploding higher today, gold has an excellent chance of reaching $1,650 if the stock market continues to advance and start pricing in a global economic boom starting in 2012.

SheepDog-One's picture

Go swim in your worthless paper Momofader, we all know you dont actually own a bit of it anyway.

oddjob's picture

Did Gold ever go bankrupt like X?

SheepDog-One's picture

Robo now loves KKD at $10, of course he never had anything to do with it at its $70 peak though. Just another example of Robos cherry picking to pimp his pathetic ride.

6 String's picture

LOL, Robo. You're right. Gold might have an awesome 10% + move. Chris annoys me with eentire statements that are hypocritical:

Various factors lead me to conclude that gold is one investment that you can park for the next ten or twenty years, confident that it will perform well. My timing and logic for both entering and finally exiting gold (and silver) as investments are laid out in the full report. The punchline is this: Gold and silver are not (yet) in bubble territory, and large gains remain, especially if monetary, fiscal, and fundamental supply-and-demand trends remain in play.

Anyone remember when Fuk happened and he sent out his ALERT THIS IS IT message? ROFLMAO. BTW, TWJCTR on Gold and Silver when they do specular, which they will. WHich is why owning the R2K is the ONLY way to go for the next 20 years. BTW, I love 10-20 year calls. How can one go wrong with analysis like this is a nation with attention deficit syndrome?


SheepDog-One's picture

Who the hell is 'Chris'? Doesnt matter what kind of a 'move' PM's make. Idiots thinking PM's are for daytrading....what what a bunch of total morons.

6 String now pimping 20 year calls? WTF OMFG AHHH HA HA HAAAAA HA HA HAAAAAA!!!!

TheDriver's picture

I beleive he's referring to Chris Martenson, the author of this article, and his "alert" here:

r101958's picture

I don't recall him ever saying 'this is it'. He said it is best to prepare and if you haven't started to prepare then now is the time to start (i.e. food storage, water, etc). In my opinion, the Crash Course is the best, most accurate presentation out there that addresses our current situation.

Raymond Reason's picture

"Anyone remember when Fuk happened and he sent out his ALERT THIS IS IT message? ROFLMAO. "

@ six string:  I don't think the Japanese are rolling on the floor laughing today.  Probably not much roflmao in any of the Pacific Asian countries. 

akak's picture

Why is it that when I even try to access the profile of this poster "6 String", I receive the message "Access Denied"?  I've never seen this happen before while trying to look at any poster's profile here.

Needless to say, though, I strong suspect that "6 String" has been a member for a whole 6 or 8 days, and is merely the latest incarnation of Methman, Dangertroll, or WilliamTheBastard/RedNeckRepugnicant/TexasGunslinger et al.

Vlad Tepid's picture

Could be a 'Tyler' proxy/devil's advocate and they just forgot to flip the access allowed switch...

Crack-up Boom's picture

There'll be a "boom" in 2012, but I doubt it'll be economic.