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Guest Post: Why Today’s Deflation Won’t Kill Gold
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nothing is going to destroy Gold... the idiots has leveraged one ounce 100 times. It's the paper gig that is at risk.
Then derived it, leased it, created tungsten fakes...
Why the hell junk? Everything he said is true.
+1
Anyone rigging CrimeX with that many naked shorts is not gonna get away with a deflation exit.
Right, the only thing that can take gold down is when liquidity is taken out of the system and people start getting margin calls.
OR
When the gold has been sitting around earning nothing for a period of time and there are better opportunities elsewhere.
At least this is what has taken down gold in the past.
If you believe in more money being dumped into the system and that gold will continue to ease up then gold is your play.
Re "liquidity"...that may have been true in the past before GLD and SLV and other PM repli"cants". The dips have shown that multiple times gold has been used to get liquid again and each time, in recent history, gold has recovered. I think those using gold to get liquid are put on the sidelines and don't reenter the game unless they are big players.
no that is complete utter fucking bullshit.
the dollar is backed by US debt and when the real economy cannot service the debt, the debt gets sold off along with the dollar.
We need no QE2 or any more money printing to have hyperinflation
As I see it, our job is to assume as large a position in gold as we are comfortable with -- and then sit, while ignoring all the anti-gold propaganda...
( the anti-gold element will grow louder, the higher gold climbs)...
One ounce gold coins are still available (American Eagles, Maple Leafs and Krugerrands), and with August gold below 1500, they are bargains.
You know, it's strange, when I first advocated buying gold and gold shares in the early 1960s, I never have dreamed that I would still be telling my subscribers to buy gold in the year 2010.
But that's what I'm doing.
Great bull markets are few and far between. When one is in progress (particularly one that is ignored and hated by many in authority), it's time to get aboard.
At this point the average American can't tell you within a hundred dollars where the price of gold is.
Ask any American why he doesn't own any gold, and the answer will be confusion, and "duh" or "What do I know about gold" or "I hear gold is too speculative."
And your answer, "Isn't holding dollars a speculation?" and here you draw a total blank.
Is it a paradox that as the dollar turns weaker, the Dow (which is denominated in dollars) holds up as well as it has?
Yes, the Dow is holding up, but against the standard, gold, has been steadily losing value.
In terms of gold, the Dow has lost 70% of its value.
At some juncture ahead, many believe that gold and the Dow will meet at the same price.
This last occurred around 1980 when both gold and Dow milled around the 800 level.
Richard Russell
{ REMEMBER THE BEST... FORGET THE REST } DP
And an increasingly large part of the current anti-gold propaganda, and a part increasingly accepted and repeated by the ignorant, gullible and "useful idiots" of the financial press, is the myth and the lie of contemporary deflation. Anyone accepting that fantastical scenario is either woefully misinformed, hopelessly confused, or being purposefully and maliciously disingenuous in an effort to deflect attention away from the ongoing depreciation of fiat currency and the fiscally reckless and unsustainable path that every major government is following today.
I have yet to see a single example of the IOUs of any increasingly bankrupt entity RISE in value with increasing indebtedness.
We cannot trust the Chosen in charge of printing presses. Gold is king.
My comment has only been up a couple minutes, and already a Chosen one has junked me!
Are you telling me the Chosen don't actually run the criminal Fed (and almost every other bank), or are you just saying everything is kosher with them?
The jig is up, get used to it! :)
Don't take it personal. It's just some bored cocksucker getting his jollies off.
Gee, Ira, I'm tempted to junk you for being a useful idiot for Jihad. However, your view on Gold is quite sound.
Jews did it.
lol
I would be surprised if the rabid zionist crowd here allowed you to speak at all, with an avatar like that. Israel is their God, after all.
No, MONEY is their god. This is a tribe who's historical love of money was so profound that many have named themselves after it.
Who do you think Paul was talking about in his famous quote?
While I'm up, jews DID do it. Those who did it are jews. Does this mean that all jews are culpable? Of course not. However, it's inarguable that this is yet another financial crisis with the Tribe's fingerprints ALL OVER the crime scene. In fact, it's hard to conceive of their having a more monolithic lock on the financial system than they do.
Those who are not rabid zionists and not complicit and who also oppose this would be wise to get out in front of it and solve the schism in their own clan. Before it turns into another purge
You'd do it too if you were in their shoes. Me too, for that matter. That's the problem. All men are created equal and then some of us get ideas to the contrary...
Trav, look, you're right, ok, but at the same time, many people who are not "jews" or ZIONISTS are very involved. THE GROVERS for example, and almost NONE of them are jewish.
This should never be about which monkey god the groups that killed the earth pray to. That debate is trite. Who fuckin' cares. You think I would lift my sight because, oh, he isn't a ZIONIST? Do not count on it; cuz there's yer brains.
+1 Trijicon.
Good scope. Poor judgement.
http://www.marinecorpstimes.com/news/2010/01/military_optics_012109w/
Bound to become collectible! I want one.
Ah, another theory I have: you're a racist Jew-hater.
Where's the "ignore" link on this site?
Who says they can't have multiple gods? They've violated all the other commandments, so why not the first?
Zionism is a blight upon this world. I have no problem with Jews, as one can't help their heritage, and many of my role models were and are Jewish. It's just the concept that a piece of land belonging to someone else can be claimed because your ancestors supposedly lived there thousands of years ago, and as such can be seized violently and the current occupants, who are ALSO descended from the same ancestors, can be put into concentration camps and be forced to live as second class citizens. It's no different than apartheid.
They didn't earn the land by Palestinians walking the other way after hearing their argument. The Jewish community TOOK the land by force.
Just like England took India.
Just like Spain took South America.
Just like we took Indian land.
Welcome to the real world, pal. Israel ain't special. And the world ain't fair.
Excellent, Geoff.
"And the world ain't fair."
It's not meant to be.
Long standing property disputes are generally resolved in the favor of those with the biggest gun.
Seems to me the Arabs have quite a bit more land than tiny Israel. Maybe Karl Marx could be exhumed and pumped full of Hopeychangey juice and take care of this peacefully.
From each according to his ability, to each according to his needs ;-)
Problem solved, next...LOL.
Appropriately junked
Junked me because.....? I don't see where my post was pro OR against Israel...or Palestine.
Just saying the world belongs to whoever has capacity and willingness to use force.
satan is their god.
I know thy works, and tribulation, and poverty, (but thou art rich) and I know the blasphemy of them which say they are Jews, and are not, but are the synagogue of Satan. Fear none of those things which thou shalt suffer . . . be thou faithful unto death, and I will give thee a crown of life. . . . Behold, I will make them of the synagogue of Satan, which say they are Jews, and are not, but do lie; behold, I will make them to come and worship before thy feet, and to know that I have loved thee. Revelation 2:9-10, 3:9.
http://www.antichristconspiracy.com/synagogue_of_satan.htm
"Most Jews do not like to admit it, but our god is Lucifer...and we are his chosen people. Lucifer is very much alive. ..."
http://www.rense.com/general49/prot.htm
From Islamic teachings the anti Christ will rise up and rule the world from Jersualem. He will be a Jew, handsome with curly hair. Money will be debased and this will allow him to rule over all peoples. People are being slowly deceived as money was replaced by fiat currency. Some Islamic scholars are telling people to go back to gold and silver as these are mentioned in the Quran (dinar and dhiram) as money. It is this false messiah and his supporters, some of whom will be Christians, that Muslims are warned not to seek support from.
Another Jew-hater added to the list of commentators to ignore.
Not Jews dude, just Zionists. You know, "Land without people for people without a land". And all the other lies.
I don't buy your cover, sahab. You can't compartamentalize your hate like that. We know what the real score is.
Doc Sahab,
How about we VACATE America, and give it back to the Native Indians.........Same f*kking difference. Double std BS.
No way to rationalize what Europeans did to the American Indian.Look how their treated............
Abram did nothing differently than they did.
Verily, the Spawn of Satan will have unnatural red hair, large red shoes, and the sign of Hell emblazoned on his yellow jumper " M ".
And they shall call him Ronald, and despair.
He will also make tasty fries (or "chips", as you may prefer).
Naaaw.
He will pop up from the subterranean underworld just as predicted...from a well...in Iraq, just like the guy in the disco suit from Iran say's...LOL.
Not if the Israelis "Plug the damn hole!"
LOL
Good point ;-)
go away, troll
trav,
"Who do you think Paul was talking about in his famous quote?"
Everyone in the world that holds money as their GOD.
Which tribe?..................there are Twelve.
And who has named themselves after IT, whatever "IT" IS?.
Right on brotha. So many here think they're so smart. But The Truth? Jack was right all the way: they can't HANDLE the truth. But they sure are brave enough to junk ya for exercising free speech, right? Kinda like the self-chosen have lead the junking of our economy and finances.
Folks do a tiny bit of research and make your own list of the 50 names most reponsible for the Iraq debacle, for the destruction of US finances and the hollowing out of our economy and productive capacity, and for instigating the next illegal war against Iran while we are utterly broke. I've seen such lists and oddly, you'll not find a single Islamic name among them.
Bottom line, I couldn't care less the so-called "religion " of these scumbags. Like anyone still sane enough to see their threat, I just want 'em stopped. Regardless of what they may call themselves, it's just part of a costume designed to try and deflect attention from what they're doing: treason and treachery. A shiny thing to tranfix some dumb the Mark as you pick his pockets clean.
As people decide whether they want to live as slaves on this nascent global plantation of the most wicked among us (I believe the Old Testament lists your occupational choices as 1. Carrier of Water or 2. Hewer of Wood), they are going to have to try to undo their deep programming and face some very unpleasant realities. Or they can continue to walk like zombies on prozac into oblivion.
ArrestBobRubin....couldnt agree with you more!
Another Jew-hater added to the list of commentators to ignore.
Arrest,
You had best fear Islamist's (esp their religion)........you have a lot more to fear from them, than any Jew.( I blow your house up, and murder your family),and then I buy the lot next door, and build my house,and smile at your ass across the fence.Is that sick, or victory?.
As for the list of two occupations, you left out a shitload.
Ah, here's what I was waiting for. The "libertarians" reveal their "goddamn Jooos" side.
Nice. It's always comforting when someone confirms your stereotypes.
Don't get too excited about those who claim to be libertarian...postings are rife with petty little commie anarchist's and racist rantings of all stripes.
Know the difference before posting bullshit.
I would say the majority of racist thought, opinion and deed resides on the left...which is neither liberal or libertarian.
Yes. My point wasn't really that "all libertarians are racists". My point was that there's a lot of people who claim to be libertarians yet are racists... which really makes them a walking, talking, posting oxymoron. Or just plain morons.
I misunderstood your previous post. I agree with you here.
jakoye,
Then their REALLY not Libertarians,are they?.
If your a racist, your just a racist..........no matter the Political stripe.( Color, or Ethnicity).
Precisely.
+1
Guns, bullets, cans, gold, bitchez.
YeeeHaaa!
Damn, brother. That sort of talk makes me want to drive my camaro in donuts!
Badass!
God. Guns. Guts and Trucks... 2012
And cans, too! Load up the bunker, bitches!
lol...
So...wealth redistribution, bitches?
No.
Just not a white trash, overly paranoid, wing-nut, bunker-dweller psycho, clinging to Gunsmoke fantasies and apocalyptic dreams. Bitchez.
The point that consistently seems to elude you Repugnifuck, is that the guns, cans, and gold position is much less "bunker" than it used to be.
Things are different this time around. The world's debt has seen to that. Whether we go "Mako" or not is open to debate, but it is increasingly apparent that unrest is knocking at the door.
So which part of the Bitchez mantra do you object to? Owning gold? Whether or not you believe in it's profitability, it is a legitimate hedge. Keeping food stored? That's simply a throwback to our parent's days, the way most rural people live, and is economical if nothing else. Having a gun? Hardly a lunatic fringe thing to do. Even if you make the choice not to, one can hardly fault a person for wanting to defend themself, or put food on the table.
<Can of Old Milwaukee opens> (note choice of cheap Redneck beer to denote inability to present valid point, EVER.)
Here's to seeing you trampled to death by the Golden Horde, Shitheel.
I concur with the Colonel.
"Mako" or not. No "Mako" (= Mad Max, as the resources dry up and most DIE) means having gold will make us RICH.
Gold is King.
But, God is God.
...guns, cans, and gold position is much less "bunker" than it used to be.Things are different this time around.
Yeah. Whatever. American Idol is different this season, too. The "bunker" crowd is the same as the American Idol crowd; both have their heads in the clouds - the only difference is the ether being snorted. While one group stares glassy-eyed at a brain-decaying television show, the other group plays G.I. Joe in their backyard.
And yes, I do believe in owning some gold, but not for the same lunatic reasons as many others around here.
a visual junk for you, fucknut.
....................../´¯/)....................,/¯../
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........../'/.../..../......./¨¯\
........('(...´...´.... ¯~/'...')
.........\.................'...../
..........''...\.......... _.·´
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..............\.............\...
JWinFL, nice sock puppet - still foaming at the mouth I see. Don't fret, someone will put you down soon I'd imagine. Just as soon as you take your show on the road.
Yep. Just a TON of those types on this site.
While I don't disagree with your taking on anti-semites, since you seem to hate everything here, why ARE you here?
I hate ignorance. I hate racism. I hate Chicken Littles who are CERTAIN that they KNOW that the sky is falling and woe to those who disagree with them.
As for why I'm here, it's to spread the light of Truth and call a spade a spade, naturally. Or, I'm interested in the articles on the site and some of the commentators are actually rational and have more to offer than "goldz is good".
Despite my hate, I think the general sentiment on this site is correct: get physical gold in your mealy paws. I am doing just that. Not because I think the sky is falling, but because, as others have said, gold is the best store of wealth, period.
Uh, " I hate racism" doesn't combine well with calling "a spade a spade" unless you're one those 'self-hating racists'.
And I would find it quite refreshing if you yourself could offer a bit more insight than the slough of ad hom's you've been spewing.... I say "raincoat calling the banana yellow"
Finally, and I know this is going to get me junked but don't really care: Personally, I find most of the followers of all the three Abrahamic faiths are a bit loopy. I mean, don't you all believe that Jesus rode around on dinosaurs?
Peace
I realize that "spade" has been used as an epithet for blacks (thought not really so much anymore). I was not using it in that context. I think the phrase is useful and I won't let the fact that the word "spade" has been used as an epithet in the past prevent me from using the expression today. If we followed that line of logic, we'd need a new name for the spade suit in playing cards!
I will certainly attempt to post more than just attacks on the anti-Semites on this board. That just happened to be the first thing I saw which compelled me to comment. These racists need to be confronted directly. Keeping silent is not the way to go when exposed to such ignorance mixed with hate. But I know that my rants against the Jew-haters has earned me some ire from members on this board who are perfectly respectable people, as they would rather the whole argument just go away. But the argument won't go away until these racists are driven off this site. Their comments are unacceptable and they should be met with textual violence!
As for the religion thing, I'm an atheist, so none of these religions have a hold on me. That said, I respect religion and the human need for spirtual expression. I don't begrudge anyone their freedom to practice whatever religion they want to. Only becomes a problem when someone tries to impose it on me or, say, blows up a bunch of my countrymen.
Actually, I agree with you about the rupugnance of some of the comments. Two things:
I still think you're misinterpreting some of what's being written; mistaking the political for the personal. Please read a little more closely before you attack. It's as much a hot button issue for some as abortion is to others.
Secondly, agree with it or not, I 100% support the right to say whatever the fuck they want. For you to "want them driven off this site" is the most fucked up thing you've said yet. ZH's 100% support of freedom of speech is what makes this site what it is. Drive them off, next it's you for being a douche. Next thing you know this place is as lame as a Yahoo message board.
The only true solution is to ignore what you don't like. (Don't feed the troll) Personally, I seldom even open the threads pertaining to the Middle East because I quickly grow tired of the rhetoric from both sides. But for me to want it gone because I don't like it would be utter bullshit.
**Also, how fucking arrogant of you to be the sole judge of context in a comment. You get to say whatever you want and it's okay because YOU meant it in a way differently than it came across? But YOUR interpretation of others is set in stone? Fuck me runnin'.
Haven't Gold and Silver disconnected from fundamentals?
Besides decades worth of manipulation means their prices is distorted way beyond them moving in sync to any real demand/supply situation.
Even the whole inflation/deflation debate. Is it based on numbers or reality? Since the two currently are completely disconnected.
PM investing is now a pure "value" decision/judgement.
Price is dead. Long live price.
ORI
http://aadivaahan.wordpress.com
Yes, they have disconnected from the fundamentals and are now overvalued fundamentally.
askjeeves.com was up 500% in 2000 as well.
http://4.bp.blogspot.com/_GMJXL-x1dPA/S_x1_mJ7v4I/AAAAAAAAA9k/16abiTvML_g/s1600/gold.wsj.PNG
Yeah, but you can't compare a single commodity against a broad index like that.
For example, Nasdaq stocks were up 300% + 300% + 300%, making the index much higher.
Gold is only one commodity.
No, no, JB. Gold is a sector, and moves independently of all others (along with little brother silver).
You can minimize and hate on gold all you want, but to say that it's just a commodity is asinine. How many central banks do you know that have huge hoards of frozen concentrated orange juice? Pig iron? Copper? None. They hold money and monetary instruments, of which gold is one.
I do not believe that is why they hold gold or why the BIS is buying gold.
Let me guess, its so they can create gold bugs and sadist can aggravate them on forums?
Haha!
Here is another way of measuring the gold bull market using charts deflated by the CPI and compared with the Dow bull market:
files.me.com/fransix/k95iib
Notice Bravo hasn't come up with an answer to that one yet. Still trying to find an inverse tea cup, over the shoulder, transcending wedge to refute.
Gold is not a commodity. Gold is money.
HEY EVERYBODY..SCUMBAG IS BACK..WHERE WERE YOU..BETWEEN JAMIE DIAMONDS KNEES...GET LOST..WE ARE ALL TIRED OF YOUR RANTS AND RAVES..GO BOTHER THE SHEOPLE..THEY ARE STUPID ENUF TO BELIEVE YOUR RANTS..WE ..THE GOLD CROWD KNOW WHAT IS GOING ON..YOU ARE JUST A LIL DOUCHE..NOW SCURRY ON BEFORE WE SWAT YOU...
Hey look, dumpster found his caps lock key.
Why is it that all the "gold crowd" that rant and rave and can't defend their positions with logic... are also the same illiterate Glenn Beck fans that ran this country into the ground to begin with?
Swat deez nuts off of your chin?
To be fair, at least dumpster made the following changes before coming back to post...
Now, instead of three commas after every sentence like ,,, we have three periods like ...
Just so you know, you only need one period at the end of a sentence, followed by two spaces to start the next sentence.
There's my good deed for the day. Now I just have to watch out for the posts about zit cream. LOL at dumpster, zeitgeist, or whatever nutjob this will be tomorrow.
Not to be picky.. but two spaces went out with the typewriter. There should only be one space between sentences.
Some of us still use it, and it is perfectly acceptable. I do it all the time. A wider space between sentences reads better, at least in my opinion.
Also some portable devices automatically capitalize after two spaces, which is somewhat convenient.
When Johnny gets old enough to use a grownup phone he'll probably figure it out. He's pretty smart considering he's still shitting green.
ROFLMAO!
Reads better? A Bravo screed? It's to laugh...
Hey Johnny, here it is triple-spaced for ya. The professionally prepared analysis above detects your precious Rising Wedge - and it isn't in Au. Pay attention.
Why is it that all the "gold crowd" that rant and rave and can't defend their positions with logic... are also the same illiterate Glenn Beck fans that ran this country into the ground to begin with?
So yer one a them thar librals, eh?
PS I can't stand Beck.
Master Bater's piss swilling date to the Folsom Street Fair? Congrats, yer boy overturned prop 8 in Cali. Get married. Ur best man can be Rachel MadCow.
I think you misunderstood me or I misunderstood you.
I was making fun of Johnny Bravo.
However, it makes no difference to me if a goat marries a gumball machine. Not sure why it's such a big deal.
Puts a whole new spin on "goat blow"...
A S S C L O W N
by Johnny Bravo
"Why is it that all the "gold crowd" that rant and rave and can't defend their positions with logic... "
Why are a bunch of them also card carrying members of the Nazi Party?
Holy Fuck!! And you're throwing around the "troll card"
Get the fuck outta here, Troll.
I don't think it's trollish to call anti-Semites "Nazis".
I mean, we call Obama a socialist (which is true).
We should always call things by their true names.
Yes Jackoff, it's trollish, because you went after the so-called gold crowd and called them Nazis. Not one mention of Zionism, Jews, or anything remotely close. Your above explanation about your stance makes some sense, but you're comin on a little too strong for a guy who's been here like six minutes.
Negative, grandpa. When a poster named "Israhole" says something like "We cannot trust the Chosen in charge of printing presses. Gold is king." and then a ton of posters fall all over themselves to agree with him, then yeah, I think you've got a bit of a Nazi problem. My tsk-tsking didn't come out of thin air.
As for why now, it's the usual: long time reader, first time poster.
Yeah, but you went after gold bugs, which had nothing to do with Anti semitism.
Believe me, I'm a hating mother fucker too. But get your shit straight. The israhole thing is shitty. But WTF does that have to do with gold?
Get your shit in a pile.
One pile comin' up!
Well, the israhole dude did cheer for gold while he was cheering for burning Jews in ovens. So the association was his, not mine.
I don't care if you really like gold (like really, really, really like gold). That's your perogative. I do care, however, when someone says that they don't like gold, that everyone dogpiles on with criticism. It's an opinion... if people can't handle differing opinions on the Internet, I'd hate to see how they operate in real life.
Oh boy, you're in for a treat if Chumba pops in....
Can't wait to meet all the fine people on this site!
Wait - did you miss the memo that he (Obama) is a fascist of the corporatist stripe?
JB, Au and Ag are the fundamentals and what has really disconnected from fundamentals are the equity markets, the USD, the bond markets, the ratings agencies and the Federal Reserve as well and, perhaps most fundamentally, your tenuous and loosening grip on reality fed by a greatly overestimated sense of your own intelligence. Pride goes before the fall, which, in the case of all the price chasers and dollar bulls will be a precipitous one into the dustbin of history with all the AM radio investors with a brief stop at the breadline on the way down. white or wheat?
How is something selling for 300% of its production price fundamentally justified? (especially in a DEflationary environment)
All it is is speculation.
What is the production price of a FRN?
lol
good one
What is the production price of a FRN?
Best comeback ever.
Nice. Let's ask Ben.
Around 13 Cents/bill (any number of zeroes are free!)
Great! Bring back the Sam Chase "dollars", we're going out tonight!
Johnny,
Someday when you grow up and move into your own apartment, you'll buy some furniture. Then you'll try to haggle your way down to a 300% markup.
And when you own a home and some things to keep inside it? You may choose to buy a firearm to help hang onto it. If you can buy for 300%, you'll laugh yourself all the way home.
Many, many things are sold at 300% of manufacture. Now that you're wearing big boy pants you should know that.
The bottleneck is priced in...
Idiotic comparrison.
Oh yeah, it must be, since it's different this time... right?
Are you idiotically comparing gold with a 6000 year history to a web site???????????????
Yes, because both were grossly overbought by people who were speculating.
Oil was 147 a barrel two years ago. Was the 147 a barrel fundamentally justified?
Or was it just people running up the price by speculating?
Don't you understand that it doesn't matter if it's gold, or beanie babies... the retail investor drives up the price as large commercial institutions short their positions.
Then the retail investor holds the bag.
You can fill in the blank for any commodity that you want. The result is always the same. Once the "average" investor is involved, the trend is near completion.
Pladizow: Are you IDIOTICALLY comparing gold to a website?
Johnny Bravo: Yes, ......
Well, at least you admit you are an idiot!
Just incase the self admitted idiot tries to edit his response: (See original below)
by Johnny Bravoon Fri, 08/06/2010 - 11:43
#507555
Yes, because both were grossly overbought by people who were speculating.
Wow! The porno-quote machine actual responded and then respond again!! That's like 3 standard deviations of probability!! I've seen it all now.
Ding! Ding! Ding! "Place your bets, folks! Johnny Bravo versus...well...you know, it's a...cover the kids' ears..."
... and here I thought Pladizow's avatar was the "Bermuda triangle" ... I have been lost there many times!
If I only had a "lifesaving device".
Just what IS that avatar? It certainly can't be what I think it looks like.
Use your zoom function and you will be sure.
Right. I'm sure the higher price didn't do anything like bringing new production online or reducing consumption.
It's those damn speculators! Ok, that's it, no more longside speculation allowed!
You still haven't answered the question, Claire. What is the production cost of a FRN?
No offense JB but the retail investor hasn't shown up to the gold party yet. In my office of twelve I am the only gold owner (in any form). Compare that to ten years ago with tech stocks when everyone here was "tech tech tech". Poor comparison on your part. Does not reflect the situation on the ground...
asian retailers are.
Ahhh, wise grasshopper.
Confucius says "All that glitters IS gold".
JB,
ALL the "average" investors are not EVEN close to being on the PM wagon.
When they try,it will almost assuredly be too late.And, if the Pol climate has miraculously changed for the better fiscally, the one's HERE will be OUT of it, to a large degree.
Since I do not see a way out (for the US,without a major crash,realignment,new currency,Gov't), I do not see a way to get away from PM's.
For wealth preservation.
+100
"Once the "average" investor is involved, the trend is near completion."
I'm a borderline bug, but I'll give you that.
The problem is that everyone will want to own gold not an "investor" of any type. Average people are selling it in jewelry form because they have to. When they want it back and can't get it then I'd consider selling some because there will be a scramble for it. That isn't or hasn't been close to happening. There is no gold mania anywhere but in China and in India the norm is to buy so there is no mania at all to be seen.
The average investor will just be ahead of the ordinary Joe but they are all already behind the curve. Just like Juanny Barfo.
Yes, but does the average investor hold physical gold or just some shares in an ETF (or some gold that the bank is "holding" for them)?
And there is the crux of the bisquit. As long as paper gold is still masquerading as an investment in gold, there will be no sense of urgency. Only when the COMEX/LBMA (now darkened again) are forced to display the true squeeze on physical will people act as if it may be "now or never". And yeah - shotguns will come out if the idiots try to use the Government to mitigate their foolishness yet again.
Are you implying that the US government will try to ban private ownership of gold again? Normally, I would laugh that off, but with the way the Democrats go after the "rich" and make hating the rich almost a sport (time-honored socialist claptrap practiced by Hugo Chavez currently), I could definitely see this coming to pass. And trust me, I'm not a "the gubbment's out to get me" kind of guy. But I could definitely see this happening if things get really bad.
But it's like in that movie Red Dawn. They can have my gold when they pry it out of my cold, dead fingers! :)
Price of gold on Sep. 10th, 2001, the day before Osama bin Subcontractor attacked us because he hates our Freedom Fries: $271.50. Current price of gold: $1,211 - up 346%.
S&P 500 on Sep. 10th, 2001: 1,093. Current S&P 500: 1,121 - up 3%
This does not take into account the dividends that one would have gotten from owning the stocks but I doubt that it would make much difference.
Gold up 346% stocks up 3%
Price of hot air same as always
Sometimes you are astute, and sometimes not.
Listen, you stupid fuck, Gold production peaked in 2000. A decade-long price runup as supply rate inexorably declines is to be expected. Were gold like houses or nasdaq stocks and actually NOT suffering from a supply rate cap that is *decreasing*, I might agree with your bubble bullshit. However it's not.
One cannot simply conjure gold as houses or .com stocks could be. It has to be mined. And the maximum amount that can be mined YoY is DECLINING.
And because of rising energy prices, labor and lack of rich deposits the costs of mining are increasing.
Strawman. Who cares about some BS stock. Do some research. GOLD IS MONIE.
Also, question, do you even read the articles on gold, or do you only chart it. Because if you ain't reading production levels, demand curves, and historical data, then how could you understand the fundamentals? And if you ain't got funds, you ain't got techs.
The Anthem - Tech N9ne Eminem Xibit Chino XL KRS One:http://www.youtube.com/watch?v=i8RU_N5zzCo
In times of "unusual uncertainty," gold has much greater value than silver. All the gold in the world ever extracted or will ever be extracted can fit in two olympic size swimming pools. Gold has great value for little weight, making it easy to hide, transport, etc...
If I had a choice between equal value of gold and equal value of silver... I would choose gold a thousand times over.
Deflation/inflation does not matter. The unusual uncertainty is here to stay until collapse. PM investing is the only intelligent choice left to rational people for store of wealth. Put it this way... I didn't work my ass off all these years for me not to have anything to show for it except paper money that I can wipe my ass with.
I would store my hard work in a form that will allow me to enjoy the fruit of my labor one day.
Septic, your rationale is rational.
I do feel that being single commodity loaded is a bad choice from a risk perspective.
While the gold to the moon scenario is imminent in Hard Money investor's dreams, it does also stink of a classic set-up to the down-side. At least in the near to mid term. 2011, anybody's guess and I guess both Au and Ag will be "real" money, regardless of what dominant currency paradigm we'll be asked to live in at that time.
And I mean early 2011.
My silver lean is an instinctive play and also balances my holding.
Good luck all around though.
Black and white times are upon us.
ORI
http://aadivaahan.wordpress.com
Really? I heard many years ago that it was the size of the base of the statue of liberty. having been there personally, it looks to be much larger than 2 olympic swimming pools, plus they still do mine the stuff today, don't they? Not trying to be an ass; just asking for references, please.
ID,
No references handy...but,from many sources, ALL the Gold ever mined to date, is 65,000 Tons..................( He did say, been mined, and will be, that remains for others alive to see).
During FDR(Dictators terms), the USA had 28,000 Tons.
Today we SUPPOSEDLY still sit on the largest above ground reserves of any nation...........8,100 Tons.
(which I think is a crock of shit).
wiki:
I'd estimate there could be anything up to another 100,000 tonnes out there, on top of that.
And that does not make it any less valuable, paradoxically.
Thanks, it was off the top of my head.........that's more like it!
DosZap, I had also read that 2 Olympic sized pools of gold. I also remember doing the math and calculating that there was something close to 1 oz / person in the world.
Let's do some more math. If America, say, is 5 times richer than the "average" country, then each American "should" have 5 oz of gold. Man, woman and child. How many families have that? Not many.
...
I read in the same above mentioned article that all of the Platinum around today would only fill 1 foot of just 1 Olympic pool.
You don't trust your government when it tells you it still has all that gold?
For shame!
All the gold ever mined or ever will be mined will fit in two olympic size swimming pools (which are large)... I have read these dimensions calculated before and have heard CEO's of many gold companies quote this statistic as well... it puts it in perspective that people can understand. currently there is roughly 6 trillion dollars worth of gold above ground.
whereas spam is not dead, spam is alive and kicking in pretty much every thread, long live spam.
i just wish it was the tinned variety at least that may have a use at some point.
I'll have your Spam, I love it!
http://www.youtube.com/watch?v=anwy2MPT5RE
Dog on doggings. People like you are just sad.
Shine on my friend.
ORI
http://aadivaahan.wordpress.com <-------- sniff this
"people like me" ? :) you know nothing of me you muppet.
attention-seeking delusional spammers are sad.
I'll have your Spam, I love it!
http://www.youtube.com/watch?v=anwy2MPT5RE
"you know nothing of me"...
Thank god for small mercies.
ORI
http://aadivaahan.wordpress.com