• Sprott Money
    05/26/2016 - 05:58
    How many “emergency” “secret” meetings do the central planners around the world need to have before the citizens of the respective countries begin to fully understand and take notice that something...

Guest Post: Today's Gold Myth "Its Topped, There Is No Inflation, Get Out Now While You Still Can"

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 10/01/2010 - 20:12 | 619870 Hulk
Hulk's picture

Sell Bitchez!

Fri, 10/01/2010 - 20:23 | 619888 nmewn
nmewn's picture


"The problem here is, when they arrive at another ship, they realize that the ship they are climbing onto is also sinking"

If not for the courage of the fearless crew the Minnow will be lost!

Sigh...we can't get any bitchez to sell ;-)

Sat, 10/02/2010 - 16:11 | 621183 Popo
Popo's picture

Other ships sinking?

Sell and buy oil.   If inflation alone were driving gold to all time highs, we would see it in oil.  If you believe inflation rules the day, it's a no lose trade.   If gold is rising on something else, buying oil is a flight to safety.  Either way it's the right trade.

Gold will go much, much higher -- That is certain.  But anyone who thinks there won't be massive crashes along the way is a neophyte goldbug.




Sun, 10/03/2010 - 15:00 | 622555 morkov
morkov's picture

all oil claims/buys depend on US$ dominance...or are you expecting a smooth transition to another currency??, comrade... are you betting on the outcome from the coming war??

Fri, 10/01/2010 - 21:44 | 620083 Hephasteus
Hephasteus's picture

I want to sell but I can't find a buyer!!!!

Fri, 10/01/2010 - 23:10 | 620228 rocker
rocker's picture

The U.S. Mint will buy. They ran out !!!  Got Silver !!!

Sat, 10/02/2010 - 10:02 | 620710 breezer1
breezer1's picture

get to an eye doctor immediately. 

Fri, 10/01/2010 - 20:16 | 619881 Dr. Engali
Dr. Engali's picture

I need a bigger island.

Fri, 10/01/2010 - 20:23 | 619889 TooBearish
TooBearish's picture

Yup - The CNBS commodities guru, Dennis Fartmen, of the Fartmen letter says gold is "overvalued" and also went short Crude oil 3 session ago before its 5$ tear.  The "experts" are ripping it....

Fri, 10/01/2010 - 20:27 | 619897 Glaucus
Glaucus's picture

Where's the Mogambo Guru when you need him?

Oh there he is!


Fri, 10/01/2010 - 20:33 | 619909 nmewn
nmewn's picture

Silver/gold ratio @ 59.6...what we need is a 20yr. chart on this...I have been unsuccessful finding one.

Fri, 10/01/2010 - 21:14 | 620000 nmewn
nmewn's picture

Thanks...something to peruse.

Looking at mid to low fifties to switch ;-)

Sat, 10/02/2010 - 00:37 | 620371 ATG
Sat, 10/02/2010 - 13:05 | 620958 janchup
janchup's picture

Just do exactly the opposite of Fartman who has nearly a perfect record of being wrong on gold.

Sat, 10/02/2010 - 15:23 | 621141 akak
akak's picture

Yes, "nearly perfect".

Now, if you want absolute perfection in the being-wrong-on-gold arena, you need look no further than the good (sic) Jon Nadler, Kitco.com's resident gold permabear, permabullshitter and bankster shill extraordinaire.

Just a few items that you might like to peruse regarding this amazingly INaccurate, dishonest, dissembling and shrill spokesman for the gold-hating status quo and financial elites:


"The Nadler Retort: What Jon Nadler doesn't want you to know about gold":






"Kitco's Nadler Problem":


"What's Eating Jon Nadler?"


"The Idiocy of Jon Nadler, Gold Permabear"




Fri, 10/01/2010 - 20:29 | 619900 NOTW777
NOTW777's picture

well in case no one noticed it just ran from 1160 - 1320 in 2 mos.  didnt notice all these recent gold lovers a couple hundred points lower

"topped" is a relative term. 


Fri, 10/01/2010 - 21:14 | 619999 johngaltfla
johngaltfla's picture

I stand by my call: Top around $1350 (range was $1300-1350 in my book) maybe a little slop over intraday by 10-15%. Then we roll and hard.

The entire Financial sector stock complex is sending a message and those charts look like (to quote an oldie but goodie) smoking, hulking, rotting death.

I'm just sayin'.

Sat, 10/02/2010 - 09:39 | 620699 hettygreen
hettygreen's picture

I enjoy following gold and the commentary it inspires but am a member of the prosaic gold as insurance, not to win the lottery camp. Someone I read and listen to on a regular basis (Bob Hoye) is calling for a modest technical correction in the metal (and shares) within a still growing bull market. Again this is based on what happened previously when gold and silver prices reached current RSI levels. What I found interesting was he could not rule out the possibility of a further manic run-up to RSI levels in the high 80s low 90s. This would be consistent (imho) with the Dollar collapse envisioned by many here and elsewhere. Unfortunately this action would in all likelihood signal the beginning of a new bear market in the PMs says Bob (and attendant Dollar moonshot says me). Gold enthusiasts and Dollar nay-sayers be careful what you wish for! And yes I very much agree with your observations on the Financial sector technicals (which few seem to be paying much attention to these days). Also the bond market action is suggesting an SPX "reconciliation" around 750.

Sat, 10/02/2010 - 10:08 | 620718 mrgneiss
mrgneiss's picture

Investors and traders who truly understand the Precious Metals market realize some truisms:

a) By holding physical gold/silver we are hedging against a deteriorating economic situation and/or sudden crisis, we hope it will not come to pass but it looks more and more inevitable, and merely look to protect wealth not reap a winfall by holding it

b) as a result of more of the global population realizing a), a bull market in precious metals ensues

c) there are various ways of reaping outsize gains from b) such as the extremely volatile - buying futures on margin, or the less volatile (less volatile in a PM bull market that is, otherwise extremely risky) investing in junior/small cap/explorers in the PM mining sector, though with c) if you believe in a) you must transition your profits from c) back into a) or other hard assets such as land

d) There will be no bear market in precious metals until the world has its economic house in order and somehow limits the ability of central banks to print infinite amounts of money, however that is accomplished

Sat, 10/02/2010 - 22:21 | 621624 Xedus129
Xedus129's picture

I was thinking about that the other day, most of us essentially are making money (or keeping value) off of other people's ignorance as to the blight we are facing.

Fri, 10/01/2010 - 20:33 | 619906 Shameful
Shameful's picture

Yep the Fed is looking to be the #1 holder of US Treasury debt, food prices have a rocket on them, nations are getting into a competitive devaluation, no reason to buy gold here.  So long as houses are cheap and Apple products fall from the sky.  I'm sure most everyone buys homes and electronics far more then they buy food...

Sat, 10/02/2010 - 05:27 | 620539 Freewheelin Franklin
Freewheelin Franklin's picture

Funny you should mention food prices. I just noticed in the supermarkets, they switched the price/unit from lbs. to oz. A box of cereal I bought was $0.118/oz. WTF? I guess it makes it more difficult for people to realize how much they are actually paying. Thankfully, my cell phone has a calculator on it. Duh. 1 lb = 16 ozs.

Sat, 10/02/2010 - 22:24 | 621628 Xedus129
Xedus129's picture

I was talking to this rodent exterminator who only works for them for the health insurance, and he works mainly on a farm in upstate NY.  He said, if milk were to be priced without controls it would be around $6.00 for a HALF GALLON.  Food prices are breaking the bank for many people apparently.. I notice it too but I'm also trying to lose weight so I spend less (actually about the same, or more healthy stuff is freaking expensive).

Fri, 10/01/2010 - 20:39 | 619921 Midas
Midas's picture

I am disappointed.  I read this whole thing and no where did it state "you can't eat gold."  It's a drinking game...

Fri, 10/01/2010 - 22:10 | 620111 Troy Ounce
Troy Ounce's picture

No, you CAN eat gold: www.ediblegold.com & www.aureapassion.com


Fri, 10/01/2010 - 20:43 | 619925 enobittep
enobittep's picture

Food, guns and gold - what are the similarities?

The federal government will have to pry each from our cold dead hands.

Fri, 10/01/2010 - 20:46 | 619932 bigdumbnugly
bigdumbnugly's picture

Finally, as this pattern continues, the rats start to realize that none of the ships are safe, and instead start swimming over to a small island nearby, that isn't sinking at all. On this island as the rats arrive, they find a few very very smart rats who have been there for a while already


substitute 'chicago' for 'island' and it isn't even allegorical.

Fri, 10/01/2010 - 23:38 | 620273 Jaacyn71
Jaacyn71's picture

If the island is "green" is it "Al Gore" ical?


Sat, 10/02/2010 - 15:17 | 621126 ANewUSA
ANewUSA's picture

We've still got time to get out.

Limbaugh is hawking gold to the Alzheimer Republicans, that should be good for 3 - 6 months.

Fri, 10/01/2010 - 20:48 | 619934 ruffian
ruffian's picture

with all due respect Tyler, when I saw that greenspan quote in the NY Sun, I knew it would be of historic significance. Surprised that you didn't recognize it as such. Shows you are human after all and that's a compliment !!!

Fri, 10/01/2010 - 20:53 | 619942 Millivanilli
Millivanilli's picture




Get the point.   Speak to the idea.   Central bankers are devaluing their currencies.  Get it?!

Fri, 10/01/2010 - 21:35 | 620052 Hephasteus
Hephasteus's picture

Girl you know it's true.

Sat, 10/02/2010 - 04:10 | 620518 nuinut
nuinut's picture

Blame it on the rain.

Sat, 10/02/2010 - 19:45 | 621482 RockyRacoon
RockyRacoon's picture

Let me add a junk to your rapidly accumulating pile.

...and a pile it surely is.

Fri, 10/01/2010 - 20:53 | 619941 Bringin It
Bringin It's picture

Wow! An entire city block for 25 ounces!! 

Wait a minute ... is this Detroit?

Fri, 10/01/2010 - 21:01 | 619945 Michael Victory
Michael Victory's picture

East Coast Inflation Report:
Tonight at the grocery store in the Philadelphia suburbs...
Average price for a loaf of bread: $4 and change.

People talking about gold at all time highs..
"$1,300 vs. the old $800 time to get out."

So many, still unable to understand the paper game underway.
The size of which is incomparable to anything seen in the past.


Fri, 10/01/2010 - 21:47 | 620089 THE 4th Quadrant
THE 4th Quadrant's picture

"The size of which is incomparable to anything seen in the past."

That is a flat out lie. Do you have any idea what happened during The Great Depression? You must be a ZHill. Are you paid for each comment or hourly?

Sat, 10/02/2010 - 12:02 | 620850 DebtBasedCurrency
DebtBasedCurrency's picture

Yep, the ol' great depresion had goverment debts of 54 trillion world wide plus trillions more of unfunded liabilities. And for sure that ol' great depression had 600 trillion++ notational value of synthetic derivitives to settle also! so truly, this is much smaller than that ol' great depression.

Sat, 10/02/2010 - 19:47 | 621484 RockyRacoon
RockyRacoon's picture

Junk!  And marked as such.  There.

Fri, 10/01/2010 - 23:10 | 620229 JLee2027
JLee2027's picture

99 cents for a loaf of Blue Ribbon bread (On sale from 1.99) here in Maryland.

Sat, 10/02/2010 - 13:05 | 620956 geminiRX
geminiRX's picture

That's a steal from where it will be in a few months....  


Fri, 10/01/2010 - 20:56 | 619948 trav7777
trav7777's picture

how fucking stupid are these writers?  Do they not look at production figures?

Gold has been in production decline since 2001, although the numbers out for 09 suggest a banner year if they are to be believed.  Are people conditioned to believe that gold cannot go up except for on account of inflation???

Fri, 10/01/2010 - 21:00 | 619960 Millivanilli
Millivanilli's picture

You are correct.

Fri, 10/01/2010 - 21:25 | 620028 Fred Hayek
Fred Hayek's picture

But the silly corollary is that the same people all know that the consumer price index is a load of crap and that there's much more inflation than the official gov't lie admits.

Sat, 10/02/2010 - 01:22 | 620421 merehuman
merehuman's picture

but ascerbic, harsh, as time itself.

Fri, 10/01/2010 - 23:31 | 620260 Blindweb
Blindweb's picture

Anyone who doesn't understand peak oil and peak various other planetary resources at this point is just embarassing.

Fri, 10/01/2010 - 23:46 | 620287 THE 4th Quadrant
THE 4th Quadrant's picture

Anyone who ignores how supply can be constrained in order to inflate prices is stupefyingly obvious.

Sat, 10/02/2010 - 00:44 | 620383 tmosley
tmosley's picture

People who change their usernames after being humiliated rather than just fucking off are annoying.

Fuck off, Johnny.

Sat, 10/02/2010 - 12:19 | 620886 tamboo
tamboo's picture


see also:


oil is not made out of dinosaurs, get a clue.


look into wood gasification and clean diesel from coal, we only

have about 800 gigatons of coal on the planet.


Do NOT follow this link or you will be banned from the site!