• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

From SEC Employee Rick Bookstaber "We All Know Gold Is In A Bubble"

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Tue, 03/09/2010 - 17:32 | 259616 Assetman
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We all know it is a bubble.

The key word isn't "bubble".

The key word is "We".

If he knows that the "we" are the powers that pull all the levers, you might take the statement as a giant word of caution.

Otherwise, we can all take it with a grain of salt.

Tue, 03/09/2010 - 19:03 | 259781 DaveyJones
DaveyJones's picture

the only thing he's not blowing, is a bubble out of gold.

Tue, 03/09/2010 - 22:26 | 260071 Anonymous
Anonymous's picture

A wise man (my father) once told me.

"It's bet to have it and not need it, than to need it and not have it."

I have "it".

Wed, 03/10/2010 - 10:55 | 260488 Anonymous
Anonymous's picture

Or,"... pot will get you through times of no money better than money will get you through times of no pot..."

Tue, 03/09/2010 - 23:02 | 260119 Crime of the Century
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Tsk tsk - this phenomenon is international in scope. Little Ricky doesn't know a fraction of the "we's" who will determine the final outcome.

Wed, 03/10/2010 - 02:12 | 260290 jeff montanye
jeff montanye's picture

do you?  really?

Wed, 03/10/2010 - 09:01 | 260417 Anonymous
Anonymous's picture

I know better than to mock the desires of the BRICs as if they are still 3rd world stepchildren. China & Russia have both vocalized their desire to see resurrected SDR money have some physical backing. India has moved to "solidify" her asset base, and Brazil seems to be unafraid to thumb her nose northward. Pray tell, what has Bookstaber to offer these commodity countries besides a sneer, the very attitude which only drives the current wedge even deeper. Face it, Jeff. The US-UK axis is all in, and the bet is looking like craps.

Wed, 03/10/2010 - 01:49 | 260275 jeff montanye
jeff montanye's picture

i'm going out on a limb here, but this blog is getting a little TOO conspiratorial.  nil desperandum mr. copperfield.  fundamentals will out.  play defense.  enlarge positions as the market moves with you.

Wed, 03/10/2010 - 11:57 | 260550 35Pete
35Pete's picture

What would you expect in a culture of universal deceipt and deception? For people to just go along with the official version of events? Secrecy and lying breed mass distrust. As they should.

Wed, 03/10/2010 - 03:07 | 260307 walküre
walküre's picture

Backstabber doesn't get it.

Fiat paper dollars or virtual "credits" somewhere on a bank account are surreal.

Gold is real. When - not if - the shit hits the fan, the trust is gone, the numbers don't matter WE ALL KNOW that only GOLD will be accepted as tradeable currency.

That's why I hold gold.

Wed, 03/10/2010 - 06:58 | 260371 Anonymous
Anonymous's picture

well said

Tue, 03/09/2010 - 17:38 | 259625 AR15AU
AR15AU's picture

How many sheep have been herded into the USD bubble? 

Yawn...  If the government technocrats are speaking out against gold, then gold is precisely what I want.  If the gold bubble bursts, and I have the opportunity to accumulate at $250 / oz again, I will truly be grateful.  I have 40 years of income ahead of me and the thought of keeping USD at JPM makes me want to puke.

Tue, 03/09/2010 - 17:49 | 259647 Whizbang
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I will be buying by the dumptruck load if it drops to 250, not at 1200 an oz. This gold rally does remind me a lot of the tech rally. "It can't go down" or "it will never go down" words god looks for when he's bored.

Tue, 03/09/2010 - 17:59 | 259676 Missing_Link
Missing_Link's picture

Well, OK.  I am more or less neutral on gold, but I don't think you can compare it to the tech rally.  Gold is actually something (and something with many productive uses in society) rather than a couple of idiots in a penthouse suite with a Cisco router and a retarded business plan.

Wed, 03/10/2010 - 03:12 | 260310 jeff montanye
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and their friends!

Tue, 03/09/2010 - 19:03 | 259783 Anonymous
Anonymous's picture

i dont hear ANYONE saying "it cant go down".

Wed, 03/10/2010 - 00:40 | 260228 MagicHandPuppet
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I hope "it" does go down... I have some FRNs I need to unload for a bargain!

Wed, 03/10/2010 - 09:58 | 260443 Anonymous
Anonymous's picture

And yet historically it always does. For those who say "gold always goes up", I would counter "And always crashes".

Tue, 03/09/2010 - 17:40 | 259631 BlackBeard
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Uhhh...as a regulator isn't he just a little bit conflicted to be giving commentary on a market?

 

He needs to shut the fuck up and go back to screening for unusual option activity or surfing tranny porn asap.

Tue, 03/09/2010 - 18:09 | 259698 Hansel
Hansel's picture

He's just trying to pump his new book.  From his site:

"I started this blog is to provide commentary in the spirit of my recent book, A Demon of Our Own Design."

I guess the SEC pay doesn't cover the bills.  His pedigree:

worked at Bridgewater Associates, ran the Quantitative Equity Fund at FrontPoint Partners, risk management at Moore Capital Management, risk at Salomon Brothers, ten years at Morgan Stanley.

Tue, 03/09/2010 - 20:28 | 259893 Anonymous
Anonymous's picture

sounds like a fuckin genius to me

Tue, 03/09/2010 - 23:04 | 260124 Crime of the Century
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ten years at Morgan Stanley

So that's who was in charge of custodial silver accounts.

Wed, 03/10/2010 - 03:16 | 260314 jeff montanye
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no!   i say they must try harder to serve the public interest than surf tranny porn (i would generalize).

Tue, 03/09/2010 - 17:45 | 259639 Anonymous
Anonymous's picture

with idiots like this guy working at the SEC, is it any wonder nobody ever, takes a perp walk?

Tue, 03/09/2010 - 18:33 | 259737 Cistercian
Cistercian's picture

 He works for the SEC.That, and that alone, renders him untrustworthy and corrupt.

 Not to put too fine a point on it, who gives a heaping pile of steaming turds what this jackass says.

 He works for Mary Shapiro.I rest my case.

Wed, 03/10/2010 - 00:47 | 260232 MagicHandPuppet
MagicHandPuppet's picture

+1... all he's doing is trying to sell a book by appealing to all the suckers who "buy and hold" on wall street and do everything else they are told.

Tue, 03/09/2010 - 17:47 | 259640 Whizbang
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One of my close friends (when I lived in vegas) back in 2005 was a real estate investor. He always laughed at me for not investing in real estate. "god only made so much land" he would say. I remember watching him do blow on his yaght in l.a. a couple months later claiming that real estate would never go down, and that it wasn't too late for me to get in. Once, in 2006 I told him that I didn't want to invest with him because realestate was a bubble caused by easy lending standards, and almost got my face broken for it. Although I hesitate to say that gold is on the level of real estate back in 2006, Every time I've posted on this site about gold being in a bubble, I get the same "i'll break your f'ing face" reaction from readers here,.

As an update, my buddy mike lost all of his properties, his gold digging wife, filed bankruptcy, and is now a coke head bum living in the inland empire. Just a heads up from someone who's seen it before.

Tue, 03/09/2010 - 18:00 | 259678 trav7777
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They dug 10% less gold out of the ground last year than the previous.  This trend of declining production has been true every year since 2000.  Ore qualities are getting lower and lower and discoveries are laughable.

Gold's price action is quite easily explained by peak production phenomena, not bubbles. 

People said oil was in a bubble too...it was NOT.  The $145 price was driven by the fact that consumption was exceeding production by as much as 2mbpd, and inventories were being rapidly depleted.  Oil, too, has peaked.  Now here we are back at $80/bbl in the midst of MASSIVE demand collapse. 

Against even level demand for gold, declining supply means a price increase.  All the rest of this goldbug bullshit is just so much noise.

Tue, 03/09/2010 - 21:05 | 259960 Anonymous
Anonymous's picture

Guess what they dug 10% gold out last year then previous? They also made 100% less land then the year previous.

Wed, 03/10/2010 - 10:27 | 260468 hedgeless_horseman
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Not exactly true, unless you rounded up.

http://www.gluckman.com/ArtificialIslands.html

I hear that these investments are not doing so well.

Tue, 03/09/2010 - 22:12 | 260053 jimmyjames
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by trav7777
on Tue, 03/09/2010 - 16:00
#259678

Against even level demand for gold, declining supply means a price increase.  All the rest of this goldbug bullshit is just so much noise

*********************************

Not the fact that prices deflate against gold in deflation or people pile into it-for a currency short or hedge or because of fear or central banks buying now-instead of selling--

I think there's a bit more to the gold price-then just decling supply--uncertainty is what juices gold-

at least in the short term--

Haven't seen any real hard evidence of shortages--so supply-at this point-is not really the price driver--

Sure-ground supply and demand--peak gold--are important--and has an influence on the price--but--the other drivers--above--are not bullshit--

 

Tue, 03/09/2010 - 18:02 | 259682 Missing_Link
Missing_Link's picture

Good story.

Traders and investors need to be neutral, unemotional, and unbiased, and you're certainly correct that many on these boards are not.

Tue, 03/09/2010 - 18:03 | 259684 AR15AU
AR15AU's picture

To me, gold is like firearms.  It allows me to live my life independent of the consequences of my moronic countrymen. 

Therefore, I don't really care what other people think about it, good or bad.  If its in a bubble, so be it.  Makes sense to me that a lot of people would want it.  If its going to be scorned by the masses and hated on CNBC, again, so be it.  I get to accumulate without all the pesky competing bids. 

Tue, 03/09/2010 - 18:12 | 259703 Whizbang
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I agree, I have a small armory in my apartment, and I just ordered a 1000 rd. box for auxillary. That is what I consider preparation for a major usd collapse. You can't eat gold, and if you want to shoot something to eat, lead is a lot cheaper than gold to buy now.

Tue, 03/09/2010 - 19:04 | 259787 Gold...Bitches
Gold...Bitches's picture

funny, i dont recall anyone ever suggesting they eat the gold they bought...

 

you cant eat FRN's either buddy.  well, you CAN, but they make your sheet turn a funny color.

Tue, 03/09/2010 - 20:12 | 259871 swamp
swamp's picture

Thin gold foil is used in certain uncommon desserts and more commonly used in Ayurvedic medicines in India. So it is consumed, although that's not the reason I've been buying it since 2003.

Tue, 03/09/2010 - 20:35 | 259903 Mad About Ewe
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Goldshlagger RULZZZ!!

Wed, 03/10/2010 - 00:41 | 260229 Anonymous
Anonymous's picture

there will be plenty of peeps willing and able to bust a cap in your ass and walk away with your gold.. when the time comes.

Tue, 03/09/2010 - 19:11 | 259796 trav7777
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You need 1000 rounds for hunting?

Got bad news for you, buddy...FRN collapse is the least of your worries.  The greatest is that you are a horrible shot.

No freakin idea what you plan to do with all those guns.  You are but one person and you would get steamrolled by even 2 guys with even a smidgeon of military training in small unit combat, nevermind an organized or even disorganized gang of more than that.

What I marvel at is people who think real life is like SOCOM Strike Team Bravo.  You do NOT want to be in a gunfight.

Tue, 03/09/2010 - 21:11 | 259959 35Pete
35Pete's picture

Trav. Are you a firearms owner? 1,000 rounds is NOT a lot of ammunition. I went through 150 rounds of 9mm and 200 rounds of 7.62x39 at the range last weekend. That's 350 rounds in a few hours. 

Ohh, you're right about avoiding the gunfight but I disagree with the inference that having arms is pointless. A .357 magnum beats a baseball bat anyday of the week. 

For those SOCOM wannabees: Go to an IDPA training session just once. www.idpa.com

You'll get a flavor for what it's like to shoot under pressure. Don't shoot your foot off! Ohh, and though IDPA tries to put a bit of stress into you, it ain't nuttin' like having someone shooting at you. Tunnel vision, clouded thinking, sweaty palms, uncoordinated reflexes. You do NOT want to get into a gunfight. Run away, hide, avoid it at all costs. Only use a firearm in the gravest extreme. 

 

Wed, 03/10/2010 - 10:30 | 260470 hedgeless_horseman
hedgeless_horseman's picture

+ 5.7 x 28

Tue, 03/09/2010 - 22:05 | 260036 Rusty_Shackleford
Rusty_Shackleford's picture

trav777

 

When your campsite is attacked b a hungry bear, you don't have to be the fastest camper to survive.  You only need to be slightly faster than the slowest camper.

Goblins will always seek the easiest target.

However, you'd be surprised how quickly someone's plans change when they see one of their fellow goblins' heads fall back to earth as a fine pink mist. 

It tends to sap their enthusiasm.

 

You will most likely not be up against someone with combat training.  You are most likely going to be up against some dirtbag who spent most of his life on his couch watching TV who wants to steal your food and rape your daughter.

 

Since you don't think having a firearm and ammunition is the way to prevent such a thing, what exactly is your plan son?

 

 

Tue, 03/09/2010 - 22:51 | 260108 35Pete
35Pete's picture

+.30-06

Wed, 03/10/2010 - 05:42 | 260359 docj
docj's picture

+10

Wed, 03/10/2010 - 11:05 | 260496 loki
loki's picture

+ .40 x P239

Tue, 03/09/2010 - 19:16 | 259802 Seer
Seer's picture

In your "apartment?"  City dweller?  You're already dead!  You'll be eating human flesh, that is, until someone hungier, with a bigger gun (and not yet puking on human flesh) figures your a cheap meal...

Geez people, if you run out of food- grow it!  If you have problems there, then the least you can do is eat the rich first! (they likely aren't comprised of the cheap food that they've jammed down our throats)

Tue, 03/09/2010 - 19:40 | 259838 perchprism
perchprism's picture

 

When the Cannibal King of Raleigh goes on the march into the countryside with his terrible cannibal army, I'll be holed up with my 12-gauge and AR15, under my house, quiet as a mouse, eating potato pie.

Tue, 03/09/2010 - 20:31 | 259898 dark pools of soros
dark pools of soros's picture

i have a feeling that you are already there most of the time.....

Tue, 03/09/2010 - 21:00 | 259950 Anonymous
Anonymous's picture

don't knock it 'till you try it!

Tue, 03/09/2010 - 23:12 | 260134 Crime of the Century
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Come clean my monitor dammit

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