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That's Gold, Jerry! Gold!
Deficit
spending is simply a scheme for the confiscation of wealth. Gold stands
in the way of this insidious process. It stands as a protector of
property rights. If one grasps this, one has no difficulty in
understanding the statists’ antagonism toward the gold standard.-
Alan Greenspan, “Gold and Economic Freedom,” 1966
We used the above quote from Alan
Greenspan to kick off our Third Quarter 2007 Broyhill Letter.
Amazingly, in 1966, Alan Greenspan “got it.” We wonder when he “lost
it” between then and now. In any event, friends and family know well
enough that we have been consistent and confident gold bugs since the
early part of last decade. The investment thesis has only strengthened
today with proliferate government spending no longer limited to our
friends in Washington. Despite the yellow metal hitting new highs in
the face of a surging dollar (so much for historical correlations),
sentiment remains depressed and most investors we speak with have yet to
purchase a single ounce of gold. Our Bottom Line outlined in
that Q3-07 Broyhill Letter is as relevant today as it was three
years ago:
Charles Kindleberger set out three preconditions for a
mania where prices overshoot the bounds of rational valuation, in his
classic, “Manias, Panics, and Crashes: A History of Financial Crises.”
First there must be plenty of liquidity to fuel the asset price rise.
This is as true as ever today, given the global tendency toward low real
interest rates and strong money growth. Second, there must be a
“displacement,” which is defined as a fundamental shift that makes the
focus of the mania attractive. In the case of gold, this involves the
incentive for competitive devaluations of paper currencies, as well as
persistent geopolitical uncertainty. Finally, there must be uncertainty
about how the asset in question is properly valued, which allows for
“new era thinking” to take hold. Especially true for gold. Valuation and
gauging extremes is an art rather than a science as the metal is
heavily influenced by hard-to-measure factors such as central bank
intentions, political risk, policy irresponsibility, etc. It is easy to
argue that proper fair value is substantially higher than today’s levels
when one considers the jump from $600 to $700 has not yet spurred much
enthusiasm.
Our friends at WJB shared these pictures
with us earlier today. We’ve been smiling since. Interestingly, we
saw a very similar sentiment set-up in September-October 2009, when we
wrote A
Gold Mine is a Hole in the Ground with a Liar on Top.
Disclosure: At the time of
publication, the author was long Gold and long MarketVectors Gold Miners
ETF, although positions may change at any time.
»
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I just got an email from Kay Jewlers asking for my unwanted gold...
Question: How do you identify a top?
Answer: When headlines like this pop up.
JP Morgan: Gold Could Now Face 'Unlimited' Demand
Jim Rogers: The Euro Will Now Dissolve
Don't forget to jump out when a lemming trade gets crowded.
And a different question: is the end of the economic world imminent? Answer: no.
Good luck purchasing stuff from Europe without euros and buying bread at your local bakery in gold.
That day may come, but not for a long while.
jay....or this???? Check this link out....
http://www.newser.com/story/88750/gold-vending-machine-debuts-in-abu-dha...
I love the moron who says you don't get it, it's not a trade? Yea marry it you FOOL. I cannot wait till your POS metal dies I'm going to be wasting my time here laughing at you fools for weeks.
So if I understand correctly you are saying:
Gold will be cheaper soon, much cheaper. So buy it now while it is cheap because if the time comes were you need gold for bread you will not be able to buy gold, at any price.
Is that the point?
I'll let you figure the timing out, after you buy here from me, and I buy below $700.
Good luck getting it. It's flying off the shelf as it is. Mostly all you see are empty shelves (in Europe).
It's like waiting for gas prices to go down in the 70's. You just don't do it. You take possession of as much as you can at any price, because there isn't any more due to price controls.
JPM and co have been manipulating the price downwards for years. The current physical shortage is a symptom of that.
How can you say that an asset that has been appreciating for years has been "manipulated down by JPM shorts" for years.
If they have been short all these years, on 100:1 leverage no less, wouldn't a 500% jump in the price KILL them?
It's faulty logic all around.
Gold is not necessary. I have no interest in gold. We will build a solid state, without an ounce of gold behind it. Anyone who sells above the set prices, let him be marched off to a concentration camp. That's the bastion of money."
Adolf Hitler
from jesse site lol
The little corporal.
Hitlers quote must have been before the concentration camp guards were instructed to extract the gold teeth.
http://www.shamash.org/holocaust/photos/images/Teeth.jpg
you will buy at 700 lol
my guess you barely spring for a two for one mcdonalds ,
some how always the zit faced piles of inclement manure ,
look out see a world gagging on debt . and all is fine in their little world of food stamps and 20% unemplyment ... the cause their beloved paper printing game
they put two and two together and come up 5's
love the money changers who pile paper on top of paper , and beltch on occasions that gold is not their cup of tea.
Well, you got it figured out then. Buy more on the dips!!
jay
i had it figure out in 1980 sold gold at 800
so your rambling infantile discourse on the nature of gold this time around is juvenile at best and noxious at worst.
best to fill the head with some understanding before you spew the saw dust in to space
You are too smart for me, but thanks for sharing.
hahhahahahahahhahahahahaahahahahahahaha
OMG havent heard that for the last year and half.
Good luck getting gold that cheap buddy, if spot price ever hit that level the premiums would be 10x what they are today if you could get it.
I just wanna know where are the goldbugs are at that said it would be at 2000 by June in that poll the LAST time it was at 1220...
Wow. You made a double top. Neat.
People are misreading Europe:
The folks in Europe who are buying now at the top during this mini-mania will be badly burned and won't touch gold for a while. If it goes down enough, they will even sell, fearing lower prices.
The key is the political class in Europe:
What do you think they will abandon: their favorite pet project, their chosen reason to be, the euro; or their spending ways.
I know a bunch of Europeans and they have been preparing the population for harsh austerity measures for the last 2 years. They will come and some are there already. With the IMF as the enforcement squad.
The euro is the greater cause for them, a long-term cause that is worth defending against a couple of (even serious) protests.
The Greeks will also get "protest fatigue" after a while. Europeans have a more thrifty way of living anyway than Americans, they will just hunker down and do it.
The shot across the bow that the gold market is sending right now only reinforces the belief in the European political elite that austerity is the only way to maintain the euro.
So now, that everyone and their grandmother is bearish on the euro (as usual after the move!), is a good time to buy.
And it's a good time to sell gold, since we have this mini-mania in Europe, forcing the politicians to work hard to gain back the confidence. They will, as they have run out of options. They know, if they need only one more package, the euro is dead for real.
In dollar land anything is possible, and the reserve status allows us to extend ourselves much more, which is bearish for the dollar.
If you disagree, show me a market that has gone straight up to infinity and stayed there.
I can't really argue the top half of you statement, I don't know enough about Euro politics to comment on your opinion.
"So now, that everyone and their grandmother is bearish on the euro (as usual after the move!), is a good time to buy."
And remember gold went up when everyone was bearish on the dollar? It seems to be a game of who has the worst currency pushing gold prices up. Doesn't matter if euro keeps going down, all fiat is going down.Where was gold and the dxy in Dec, look at it now, whats changed? Dollar strengthed and gold is testing new highs only this time euro is down, who will euro pass the hot potato to I don't know, look to maybe the pound, the yen, or perhaps the dollar again.
"And it's a good time to sell gold, since we have this mini-mania in Europe, forcing the politicians to work hard to gain back the confidence. They will, as they have run out of options. They know, if they need only one more package, the euro is dead for real."
I disagree, gold isn't over valued at the moment. As has been stated its been consolidating for four months. It testing new highs is normal.
"In dollar land anything is possible, and the reserve status allows us to extend ourselves much more, which is bearish for the dollar."
Which is bullish for gold and oil...
"If you disagree, show me a market that has gone straight up to infinity and stayed there."
I wouldn't call 1200 dollars infinity, but hey you want to play that game sure. How much was the Zimbabwe stock market worth in Zimbabwe dollars? How much is gold worth to this day in Zimbabwe dollars?
I rest my case.
somebody must be paying you to say such idiotic things. Euroreans are fondling their just bought gold as we speak and showing it to their stupid friends who are just now learning about real life.
Every so often i look at some of my silver and wonder ? is the dollar up or down. My silver is still what it was, hows your dollar doing?
You can keep looking at it when it is back at $3.
Love is more than material things can buy, it is priceless.
You are a completely ignorant idiot, and hate-filled anti-precious metals troll, if you think silver is ever going to be priced BELOW its cost of production, as you imply with your laughable $3.00 figure for it. Really, didn't they teach you ANYTHING in troll school?
In the deflation we are facing, its cost of production will be below $3.
But thanks for the insults, it shows how nervous you are that I may be right. Apart from showing what kind of person you are ...
.
And we already have abundant evidence of just what kind of disingenuous, gold-hating, truth-denying TROLL that YOU are.
You're either calling somebody names, or crying that they should be banned.
If anybody should be banned, it's YOU a-crack.
By the way, I'm not whoever that guy is that people say is me.
He does seem to argue like me, and even write sort of like me though.
Whatever, but I am not using any vulgarity. I am not sure anybody here is capable of realizing how low that is.
The Greeks will also get "protest fatigue"...that's a clueless observation about Greece...have you followed Greece at all for the past 50 years? They thrive on strikes...
Not saying I disagree w/ you about gold, although, since you are such a student of history, you have to acknowledge that to hold none is irresponsible...
I'm only saying, if you are so far off the mark on your scholarly observations about Greece, what else are you baseless on?
I personally know Greece quite well. Let's see how it plays out, but you heard it here first when nobody wanted to hear it. Also, check out what happened in Hungary recently. When it must happen it happens in Europe, they don't have a reserve currency and have no other way out without destroying themselves.
Just like when I advocated for the dollar here and on YT in November and warned of the impending gold retracement, when everybody started talking about "unlimited demand".
what a non sequitur.. show me a market that has gone straight up lol
this gold market has been a gradual rise for ten years .. it is nota blow of market
the only blow off is zit faced nobodys tying to understand 2 plus 2 being 4
You are so smart! Thanks for sharing!
"this gold market has been a gradual rise for ten years"
I needed nothing more than that as proof that it will also go up in a straight line in the next ten years.
Thanks for filling me in, I get it now. I forgot the damn permanent trend combined with a credible story, makes total sense. Damn it, how could I be so stupid to overlook that? It's such an obvious shoo-in!! I can't believe I didn't see it!!
One thing that I've noticed here, is that goldbugs are the first to junk people, the first to call names, and the first to make stupid assertions that the people that are against them are either "part of a conspiracy" or that "all the posters that disagree with them are the same person".
Why is it that they can't make an argument without some slogan like:
"Gold bitchez!" Or, "Honest men love gold, because gold is honest money."
What a bunch of weak ass crackers.
Well, I am not using any of these terms, but your point is very valid.
Why all this vulgarity??
Anyway, it's strange when people think that someone who has a different opinion (in my case temporarily because of this parabolic run-up which will obviously not last, because it NEVER lasts) is part of a conspiracy or something like that.
Sorry to say but this is nuts!
Or is that attitude just another sign of an advanced bubble state?
You don't fuckin get it, do you?
Gold is not a "trade"
It's best to not feed the trolls.
I know, this time is different, really! We are in a new era, the era of no paper money. Yes, I get it. It's a new era.
"I know, this time is different, really!"
4 Thumbs Down So Far
If this was the Ox-Bow Incident...
The posse would have just voted to hang you as a cattle rustler right here on the prairie...
If it is any consellation a hot cow girl will strike the horse to ride out from under you with the noose around your neck...
Don't sob cow poke...
Any last request?
Hey Marla... you busy?
Can I just ask one question?
Why is it that the goldbugs are always crying about somebody getting banned, or junking posts that they disagree with?
You'd think that they'd be able to defend their points legitimately, vastly outnumbering those that they disagree with.
Are they really so intellectually weak to cry for anybody to get banned every time that they are disagreed with/?
Can I ask one question?
Why is it that you are always there at the ready to instantly start trolling, flaming and baiting whenever the topic of gold comes up ANYWHERE on ZeroHedge? I mean, what the fuck, is that ALL you have to do, just wait for somebody to whisper the forbidden word "gold" just so you can instantly jump in to sideline and disrupt the conversation?
Just what is in it for you, and why are you do dedicated to attacking others for their investment decisions? This is not normal behavior for anyone without a damn good motive.
Jaybaybaker. You dont have a clue. Real value versus friggen promises. Any relation to Harry or master Bates?
It is him hahaha
Shut the fuck up, douche!
He isn't me. Look, like I said before, don't make assertions that you can't back up, or have no proof of.
I have no problem with saying who I am. Why would I lie that I'm NOT this guy? I came out and said I was MB from day one. I am not this Jay guy, however.
We think you are.
Have a nice day!
Don't know if anybody saw this:
http://www.bornrich.org/entry/abu-dhabi-hotel-unveils-gold-dispensing-atm/
Peace,
Scindite Jugula Eorum
Reading these comments for the first time, after 80-some have already been posted, it is amazing how thoroughly and instantly this JayGayBanger was able to hijack and derail what could have been, and should have been, an honest and open discussion of the original topic. And he has done the same thing in other comment threads here on ZH as well.
This guy is nothing but a troll, and really should be banned. He is excellent at what he does, stirring the pot and sidetracking any post that deals directly with gold. Now just why might he be so inclined as to do that?
Because you're gay?
LOL. I really dislike you akak.
Yes, a troll would naturally hate anyone who challenges their perverse disruptions and disinformation, now wouldn't he?
What is it with you anyway, MasterBates, that makes you hate, despise, LOATHE any discussion of gold? My God, you are Johnny-on-the-spot when the topic comes up anywhere here on ZeroHedge, only to instantly malign and attack it! Now why is that?
Yes, buy the pullback!!
Like the NASDAQ in 2000.
Hold the paper!! Like Zimbabwe.
Or Weimar.
Or the Contenental.
Or Flying Money.
Or pretty much any paper currency.
I think the Jay is Johnny Bravo aka Mater Bates
Its not like we go to douchebag.com to bother him now do we ;)
Well you think wrong, ya friggin douche.
Don't make assumptions that you can't back up.
A lot more people than me think that gold is in a bubble.