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The REAL Flight to Quality Trade (It Ain’t Dollars)
While the
whole world seems to have turned against Gold in the last month, I’d like to
note that this latest pullback in the precious metals’ space has given us an
extraordinary opportunity to load up on premium quality inflation hedges at
bargain basement prices. It’s also told us the following:
1) Gold
is now THE flight to quality trade
2) The
bull market in inflation hedges is nowhere near over
Regarding
#1, note that while Silver and other commodities fell off a cliff, Gold held
strong during this correction:
As you can
see, Gold bounced hard off its first support line. It has since resumed its
uptrend. The same is true of the entire mining complex:
As you can
see, the entire mining complex actually bounced of its former highs
(established in 2008). This is a MAJOR signal that the bull market in inflation
hedges is nowhere near over.
If anything,
it illustrates that the next leg up is about to begin!
However,
while the entire mining sector has been relatively resilient during this
pull-back, individual players in the mining space have been positively
hammered. And this has given us a fantastic opportunity to buy premium quality
inflation hedges on the cheap.
On that
note, if you’ve yet to take steps to prepare your portfolio for the coming
inflationary disaster, our FREE Special Report, The Inflationary Disaster explains not only why inflation is here
now, why the Fed is powerless to stop it, and three investments that absolutely
EXPLODE as a result of this.
All in all
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steps to prepare AND profit from what’s to come. And it’s all 100% FREE.
To pick up
your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.
Good
Investing!
Graham
Summers.
PS. We also
offer a FREE Special Report specifying exactly how to prepare for the coming
collapse in the US stock market (inflation will NOT be positive for stocks for
much longer).
I call it The
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and click on FREE REPORTS.
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How is this for a trend? Production businesses are not as profitable as they were 10 years ago, 20,30 or even 50 years ago.
That is profit in real not nominal returns.
The other trend is retirement, all those baby boomer small businesses need to be sold to pay for it.
If there is a gold standard it will only last long enough to loot the treasury. Deflation yes a great unwind, but you still need a vehicle to cashout into. That will be Gold and maybe silver. Governments are not going to do without money, ever. Governments will not shrink they will grow. Growth requires money, so money governments will print.
Thats why its gold and if the government needs it silver as well. You buy things from people who can't print money and sell to people who can.
I guess the 1%?...4%? of people who actually have any pm besides some questionable jewelry they got from a kiosk, it would be accurate to label them as "mindless sheeple herd followers." OTOH this mathman guy gets his marching orders and his talking points from TJTB so if he says something is happening on monday I bet something happens on Monday. Let's see what happens.
Unfortunately for you, you have just enough command of the facts to hang yourself. I am very sorry for you.
We are going on a gold standard, period. Central banks are doing everything in their power to hold the prices down while they buy and play for time. They may throw Greece under the bus, or they may not, I don't know, but they don't want panicked buying because they need a huge amount of gold to unwind the debt the nations of the world have accrued in keeping the system going.
Price action says it all about where gold is going to go. The titanic attempts to keep it down have failed. Have a nice day and good luck with those treasuries, you are going to need it.
Calling Robot Trader's Mom: Robo's out past bedtime masquerading as Venom69. Please do the responsible thing and use the parental control/administrator thing.
Actually, Venom is a clown named Viperbear over at WSB and used to be on BearsChat at wallstreetexaminer before he was banned as a troll.
He's been calling for $4 silver, and $200 gold for 10+ years. Yes, 10+ years of horrific calls. You can see some of the gems over at BearsChat
All You ZH metals lunatics are mindless sheeple herd followers to be slaughtered starting Monday. Serves you right. A 35% drop in silver in 5 days didn't teach you a thing. Maybe you'll get a clue when it's @ $4. Stupid is as stupid does. Next you'll be hoarding $1500 tulips.
Aw...somebody is upset that they had to trade their Ferarri in for a....what is that anyway...a Chevette...err Corvette?
You might gain some credibility by adding some logic to support your thesis. Till then, you are engaging in personal attacks, and screaming, "The sky is falling...on Monday!" Move along troll.
Venom, Do you not have precious metals 1 year charts?
Gold June 2010 $1220 up $300 in 12 months.
Silver June 2010 $18, up about 100% or $18 in 12 months.
I see you side stepped gold. hahahah....i wonder why....
No, when it's $4 I'm getting 500 pounds of physical silver, maybe more.
Same here.
4 bucks? Whoooo HOOOOOO!!!
See, you people thinking that going from 50 to 35 then waffle prior to final collaspe to 4 are stupid. As long YOU. DONT. SELL. for less than WHAT YOU PAID per ounce YOU are a LONG SilverBug.
I might wait.... 40 years. That's fine with me. It will come up sometime.
Hell I would have so much income after finally selling out the momentary pain of the capital gains will not even be noticed.
I am wondering what one should do to defend in case the ATM's are not working. I am also interested to find out what you think is the best way to preserve wealth.
Gold is the only place to park your money. A few points to consider from the production side of the ledger.
As for paper money; the USA, Greece, Spain, Portugal, Italy, England, Japan will all default on their debt within the next 10 years, it is too late to change, it will happen.
Um I don't think gold is going down. In an environment where the controllers say you can't buy this but it's ok to buy that, I think that's just the kind of environment that makes gold go way, way higher. Yes, you're right. We're in a deflationary environment. Everything is deflating versus gold. Buy gold. Or you may perish.
http://www.kitco.com/charts/livesilver.html
http://www.kitco.com/charts/livegold.html
gold and silver both got pounded for a whooping $2 bucks silver and $10 in gold.. same day.. same exact time.. but gold is good says the paper hanger..
***** "Regarding #1, note that while Silver and other commodities fell off a cliff, Gold held strong during this correction:" *****
That is some funny shit! pump it baby! pump it real good!
The only time there is ever a loss on Physical Metal (IN your Possession) is if you sell it for less than what you bought it at.
I totally ignore Margin, Papers and whatever else.
Eventually the only question becomes how do I trade 500 ASE for a proper monster box of ASE's Heh.
That my friend is hope for the future while hedging against a total collapse of the United States Dollar. China got out it seems and everyone else is moving.
lol 159 / oz ill load up on silver
So much stupid in this thread I hate to taint myself by posting.
I don't know WTF you are talking about "the whole world turns against gold".
Central banks are buying like crazy, gold has been doubling in price every 2-3 years since 2000 and that trend line reamins unbroken.
Throughout world history market trend lines NEVER break...until they do. Stay tuned next week.
Nice head fake. S&P rolling over ready to plunge. Ben & Co. Need to smash commodities one more time (nice work on lowering all the right margins and hiking all the bad margins like silver).
The world has little knowledge of PMs, unless by world you mean central banks and ZH. Hard to turn against something invisible to you.
30 year bull run in bonds is over.
To see broken trend lines see the bond and dollar charts.
Get a clue venom-tard - do we really think helicopter Ben will watch all money get destroyed (when he has a printer and has said he'd use it and has shown amazing propensity to use it)?
Back to your Yahoo Groups community, no one's listening to your senseless CAPSLOCK ridden blather.
Venom, I agree with you that the "article" above is worthless idiocy.
And don't forget that during the ten-year run of gold, each of the three or so major pullbacks, has been a spectacular pullback. (Which you had to either time out, or ride out.)
Furthermore as Venom suggests, the powers that actually be, actually want the price down.
Nevertheless Venom I think it's difficult to say that "on Monday" (or even "this year or next") the bull market in gold will end.
Just as you say the "trend line will break" eventually (whether for a big pullback for a couple years, or "forever"), but I think you could be too harsh in seeing that happening imminently.
There's a danger in overreacting to idiocy, sheer pap, like the article above, with a view that is too stridently in the other direction.
There's still huge fuckuperrage going on with every fiat currency, and people all over the place are fleeing to metal.
Based on my particular view of the charts and the fundamental scene, I don't agree with you that the 10 yr bull run is over Monday, but yes, the article is senseless pap and many of the arguments here against your thoughts are weak.
What about the 30 year bull market trend line in bonds that back the dollar ?
Venom is the dumbest fuck to grace the pages of Zerohedge in a long time.
Gold never goes down in price, it never has. $35 to $260 to $1500+. Funny all the sheeple think they have this bubble thing figured out. Allot of gold bugs don't even understand gold.
I understand Gold well enough to regret not getting in when it was around 220 or so. At the time the future then is now and looking back, whadda ride that was. Same with Silver. I will be accumulating Silver Physical onto what I already have. It will not be difficult now that I have sufficient ammuntion.
You ain't seen nothing yet. If gold went up 2300% during a gold backed reserve currency crisis then we could see double that during a fiat only reserve currency crisis.
how many economists does it take to screw in a lightbulb?
.
or maybe..
how many market makers does it take to screw in a lightbulb?
Fish
thay was the answer to the surrealist.
gold schmold....buy good land and build walls around it. and lotsa bullets to go into lotsa guns.
Cash in my silver to buy gold???? Chasing tail?
Hmmm ...
Could be 50 cents or $5million ... who knows?
Impossible to predict the future price of anything, all anyone can do is guess.
(And hope nobody remembers when they are wrong.)
All important question is what is the price of beer?
Please tell me you're joking. Gold is making a double top and will be at $154 in 2016 along with the S&P at 154.66. We're in a Deflationary Debt Death Spiral Down GREATER GREAT GLOBAL DEPRESSION that is only begining. Your inflation scenario is total bull shit. The DOLLAR will SOAR in value. Stop talking your book and leading more of the stupid herd followers into FOOL'S GOLD. You lying snake oil salesmen make me sick. BTW, GDX is showing a double top confirmed by a broken right shoulder on it's FAILED IH&S pattern. GDX, GLD, SLV, PALL and JJC are going to have a BIG DOWN week starting Monday which will prove you are full of bull shit or just dumber than dirt but most likely you're both. Get a clue.
Can't wait to see that dollar 'soar in value', Venom. Then I'll be able to buy 10 times as much gold, according to you. That'll be a good day.
Yes, we have been waiting 98 years for marked deflation in the USD. Hasn't happened yet, but I'm sure it is right around the corner Venom.
Just keep holding your breath, the trend is just about to buck...
More CAPSLOCK, more cowbell.
Great car. Do you own that 82 Z28 Camaro?
Is this roboTard?
Hehe.
You almost make some valid points, but with real rates close to zero there is no reason not to own some gold. Carry costs are low and i believe bennie when he says a sufficiently determined central banker can always generate positive inflation.
I dont think gold will be the best investment from this day forward, but you are going to be embarrased when reminded of your predictions three months from now. You may have guessed the correct trend for the intermediate term but not the slope!
Austrians don't guess.
I know you are wrong. I don't think you are wrong, I know.
Knowledge Uber Alles! What is knowledge? Well, I guess we don't have time to worry about that.
Channeling M. Rothbard: "I am sometimes wrong...but not often."
While I think gold will be much higher, it is possible that gold will only be $154 per gram in 2016. Yeah, that's possible ($4775/oz). However, more likely it will no longer be possible to measure gold in US dollars, since the US dollar may well be history.
THanks venom, next week eh? will get ready.
$154? Is that the new RentenDollar that will be issued after Haverstein, excuse me, Bernanke, is gone from the scene?
benny is the one creating the DEPRESSION on purpose so that the private central banksters will own everything. He's arrogant, stupid, mass murdering and a coward. The American sheeple will wake up this time and will REVOLT and KILL him and his private central banksters and the treasonous government that enables them. The only thing benny and his freinds will end up owning is their place in HELL.
Looking forward to your first book of short stories -- just ignore all the rejection slips -- brilliant artists must suffer/starve before achieving stardom! :>D
You leave me speechless. Ok, sure, everyone will flock to the dollar if they don't run debt to GDP to 100%. Oops, too late.
The dollar is done. Eight hundred years of financial history tell us that it is dead. Stop having opinions, study history, read This Time It's Different, an empirical study of all the defaults over the last 800 years. Tell Bob Prechter he was right, until the Fed and the Treasury bankrupt us, now he is horribly wrong. The currency is done and the game is to set up a new currency.
Enjoy that deflation trade. The rape of silver and the assault on gold wasn't very successful, they just keep on climbing. That price action is, what? Evidence of sheep not knowing what to do?
You still have time to educate yourself, but your confidence won't allow it. The American people will do exactly what the Brits did when they destroyed their reserve currency, exactly what the Argentinians did when they destroyed their currency, arrgh, I give up. Yeah, you are right, buy more treasuries.
Hey deflationist moron...
did the Thai baht soar in 1997 ?
did the Euro soar in 2010 ?
Bernanke is doing nothing on purpose. He is applying keynesian theory, right out of the text book. Shove all of your conspiracy up your misguided ass.
@Spitzer
So if he is not doing anything on purpose, why is he applying Keynesian theory? Not on purpose?
He is saving the banksters who own him. The fed could have nationalized the banks and sell them off while creating and capitalizing four new banks with clean sheet by printing fewer dollars than they have now until stability returns.
It's a rigged game and people are now connected to blogs like this one and they know what's going on. Soon both the banksters and the enabler politicians will be swinging. It's TILT time
Central Banker Pavlovian Response.
A sheeple shows up.....baaaaaaaaaaaaaaaa
Sheeple have all the dollars. Nobody except some central banks and a few gold bugs have gold.