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An Unbelievable Opportunity in Gold
- AIG
- American International Group
- Bank of England
- Ben Bernanke
- Ben Bernanke
- Central Banks
- China
- Citigroup
- default
- Federal Reserve
- Goldman Sachs
- goldman sachs
- Hank Paulson
- Hank Paulson
- Herd Mentality
- Housing Market
- John Paulson
- Meltdown
- Obama Administration
- President Obama
- Subprime Mortgages
- Testimony
- Yen
Yes, there is no typo in the headline of this article. Today
there is still an unbelievable opportunity to invest in gold that will
disappear over the next several years as this monetary crisis deepens. Despite
the general widespread sentiment of Western financial advisers that they have
missed the run-up in gold and now it is too late to buy, this is not true at
all. In fact, to illustrate how little people understand about the reasons to
buy gold, of all my friends that I urged to buy physical gold more than six
years ago when gold was less than half of its current price, I only know of one
that has bought any gold, and it still took five years of my prodding, four
times a year, for this single person to purchase gold. This is how incredibly
misunderstood an asset gold remains today despite its enormous run higher in
the past 8 years. This brief anecdote aptly illustrates the bias against gold
and the foolish belief that gold is a bubble that persists today due to the massive
propaganda and disinformation campaigns waged by bankers against gold. It is
ironic today that public mistrust of bankers can be at such a high level at the
same time that the public is still enormously willing to follow all of the bankers’
propaganda about gold. This great twist of irony illustrates just how powerful
the bankers’ century long misinformation campaign about money and gold has
been. Few people even understand how money is created let alone why gold is a
protector of people’s rights.
Even if gold continues to correct this week, and the bullion
banks, the US Treasury, the US Federal Reserve and the Bank of England are able
to engineer a further decline in gold prices in the futures markets, this event
will not be the bursting of the gold bubble as it will be, and always has been,
described by many Western media sources. Even if gold loses another $120+ an
ounce from its current price, this event would not mark the bursting of the
gold bubble. The incorrect description of corrections in the gold markets, or
downright meddling of Central Banks into the suppression of gold prices, as the
bursting of a bubble is just as erroneous as the recent descriptions of rising
stock markets as signs of economic recoveries. And this is the legacy bankers
have created - confusing the masses to believe the exact opposite of what is
true.
Though I’m not going to tell you the price point at which I
believe gold will start rising again, it is not impossible to time markets as
investment charlatans will lead you to believe as well. In fact, at the very
beginning of this month, we told all subscribers of my Crisis Investment
Opportunities investment newsletter to sell out of their precious metal stocks
right before this steep correction in gold and silver occurred to lock in their
profits and we’ll tell them to re-enter when we
feel that a low-risk, high-reward time to reposition our assets has
materialized once again. By understanding the rigging game in gold and silver
markets and in stock markets, we’ve more than tripled the returns of the
S&P 500 this year. In all honesty, however, bankers have filled most
investors’ heads over the years with so many lies about gold that for the
majority of investors, it would be a futile effort to try to time the market
anyway. Most would be better off just understanding the fundamentals behind why
they need to own gold and to buy and hold on through the dips and rises until
it reaches the mania stage.
Being able to predict the recent steep correction in gold
and silver in advance of its occurrence merely requires understanding the
manipulation and rigging game in these markets. Understand the rigging game
behind gold and it is quite possible to repeatedly time the gold markets with a
fair amount of accuracy. Subscribers to my services will vouch that I have
called near perfect tops and bottoms in the gold and silver markets more than
several times over the past several years. Even if you refuse to acknowledge the
indisputable signs that the gold market is, and has been rigged for decades,
you only need realize one thing – that despite the best efforts of the US
Federal Reserve, the US Treasury and the Bank of England to suppress the price
of gold, gold’s long term trend since 2001 when it bottomed at about $250 an ounce,
has been up. And if you are astute enough to realize that the gold markets have
been, and still are rigged, then observing gold’s rise from $250 an ounce eight
years ago to more than $1200 an ounce just a week ago should give you the
utmost confidence, that despite the best efforts of bankers to wreck gold’s price,
its long-term trend will remain higher for quite some years to come.
Still, no matter what side of the “gold is rigged” debate
you stand on (and there is lots of evidence to believe the "gold is
rigged" side of the debate thanks to the tireless work of GATA.org), the
public’s stated reasons for not owning gold are not only absent of logic but
they are downright foolish. Two of the most frequently given reasons I’ve heard
from Westerners as to why they will not buy gold are parroted banking
propaganda that make absolute no sense. The first reason people often give as
to why they are reluctant to buy gold is that gold pays no interest. People
would realize how foolish this stated reason was if they only realized that all
paper money is issued as debt. If there were no debts in the system, there
could be no money, yet people gladly accept an instrument that is issued as a
debt and believe that it is a pure asset. Secondly, they state, you can’t buy
anything with gold. You can’t pay for many items with Euros in many American
stores or buy items with US dollars in many European stores either, but that
doesn’t mean the Euro is worthless to own if you live in America or that the
dollar is worthless to own if you live in Europe. Both will still have some
value in buying goods and services.
Thus, to not own gold because “you can’t buy anything in stores with a
gold coin or gold bar” is an answer devoid of any logic whatsoever.
Throughout history, gold has always been accepted as a form
of money. In fact a gold coin in ancient Roman times would buy you about the
same things today as it would have back then. With US dollars, you now need
twice as many dollars to buy the same things today as you would have needed
just 8 or 9 years ago. If a wealthy eccentric man walked into a Maybach auto dealership
and insisted on paying for four custom made Maybachs with $2.4 million worth of
gold bars, I guarantee you that the dealer would find a way to accept the gold
bars and make the $2.4 million sale, knowing that he could choose to hold on to
the gold or to convert it into Euros, Yen, Pounds or Dollars at a later point
and time. Thus, there is no reason to believe that gold can not be used to
purchase items. Gold may be an inconvenient form of money, but it will be much
more inconvenient to watch your fiat money crash and burn and for much of your
wealth to be wiped out when the second phase of this monetary crisis commences
sometime in 2010 or 2011.
Secondly, psychology plays a huge role in the foolish bias
of Westerners against gold. Were Westerners to live in China for just one year,
where almost everyone knows multiple people that own physical gold, I guarantee
you that their perception of gold, upon returning to America, would be
drastically changed. They would be inclined to buy more gold just because of
the sheep herd mentality that would make them much more comfortable purchasing
physical gold after watching many of their friends and associates engaging in
the behavior of buying gold for an entire year. Though in China, this herd
behavior happens to be correct, just because everyone is doing the same thing,
does not by default, make it the correct behavior. In fact, in investing, just
the opposite is normally true. When everyone is doing (or not doing) the same
thing, they almost always are wrong. Think of US hedge fund manager John
Paulson and his enormous coup of earning $4 billion of profit for himself in
2007. Paulson stood on the opposite side of the subprime mortgage bet from the
rest of all of Wall Street. Regarding a recent book based entirely upon Paulson’s
enormously successful bet to short the US housing market, one reader stated:
“The most amazing thing is that no one seemed to believe [Paulson] until the
market crashed and by then it was too late.” Though Paulson was a lone wolf
among very few lone wolves that existed at the time regarding his beliefs that
the subprime mortgage market would crash and burn, he ended up being right and all
of Wall Street ended up being wrong. With buying physical gold, it will also
pay to think like a lone wolf if you are a Westerner.
However, here’s the lesson most investors still refuse to
learn about Paulson’s enormously successful investment play. The majority of
investors never take the next crucial step of investigating the reasons why no
one believed Paulson’s comments about the US housing market. If the did, they
would discover that the reason nobody believed in Paulson’s enormous bet back
then was due to the propaganda of bankers like Ben Bernanke and politicians
that assured the American people that the housing market would be fine. Many times the masses immediately accept
a person’s statement as truth with no critical analysis of that statement just
because that person is a public authority figure. But how naïve would you have
to be to believe President Obama’s recent statement on the American TV show 60
Minutes that "[he] did not run for office to be helping out a bunch of fat
cat bankers on Wall Street.” Goldman
Sachs’s Political Action Committee was the second largest contributor to
President Obama’s election campaign, so were it not for the money of “fat cat
bankers”, Obama may very well not even have been elected as President in
2008. Knowing this, do you really
believe that Obama has zero obligations to the second largest contributor to
his political campaign?
Furthermore, were you to merely analyze President Obama’s
financial decisions since he has taken office, the disingenuous nature of his
above comment would be readily exposed. Almost every single financial policy
decision of his administration has benefited “fat cat bankers” to the detriment
of everyday US citizens. Again, those blinded by political or racial loyalties
at the expense of logic will be sure to foolishly digest my statement as a
politically-biased statement though there is no evidence to support that
conclusion. Any reader can easily check my past history of public statements and
discover that my criticisms against the foolish fiscal and monetary policies of the
Clinton and Bush Administrations are just as numerous as my criticisms levied against
the Obama Administration. If you
are serious about never wanting to be fooled or bamboozled by a politician
again, then never look to a politician’s words, but only to his or her actions,
to unearth a politician’s true character and nature. Only a fool would ever
accept a politician’s words as an accurate representation of a politician’s
intent.
Likewise, you would be very wise to apply the above maxim to
bankers as well. Investors should look towards bankers’ actions and not their
words when trying to decipher their intent. Bankers are responsible for the
propaganda that gold is a barbarous relic. Bankers are responsible for the
propaganda that gold is a cumbersome asset to own because it pays no interest.
These are their words. Yet if you look toward their actions, Central Bankers
all over the world were net buyers of gold this past year. Shouldn’t that alert
you to the fact that bankers are a bunch of conniving liars in everything they
tell the masses about gold? When Paulson first assumed his position shorting
the subprime mortgage market, it was not only bankers, but also chief
executives at large commercial investment firms that derided him, stating that
the subprime mortgage market would be fine. I personally heard many of the same
criticisms when I started telling people to buy physical gold six or seven
years ago – that I was crazy for thinking that the US dollar would get into trouble
and that the US dollar would be fine, that owning gold was a stupid and foolish
investment. People actually laughed at me for buying gold. A top investment
strategist at Citigroup stated that gold was a bubble in 2005 when gold reached
$500 an ounce. And now, even though the gold critics have been wrong now for
eight years in a row now, they still use every gold correction as an
opportunity to deceive Americans into believing that gold is a bubble and about
to collapse. And amazingly, Americans continue to look not towards bankers’
actions but to their words only. The overwhelming majority of Americans believe
the bankers’ WORDS that the US dollar will be fine, and foolishly point out
every bear rally in the US dollar as proof that the dollar will be fine.
Ninety-five percent of what I’ve heard financial advisers
state about gold is wrong. Ninety-five percent of what I’ve read in the public
domain about gold is wrong. Ninety-five percent of what I’ve read from the
Western media about the US dollar is wrong. And ninety-five percent of the
arguments I’ve read against owning gold, even when filled with supposed “facts”, are wrong. Many of
the arguments against gold sound convincing, even though they are deeply flawed
because erroneous data are used to produce flawed conclusions. But this is the very
definition of propaganda - arguments that use erroneous data presented as “facts” to
draw convincing conclusions that are highly flawed, though to the undiscerning
eye, they seem quite logical. The reason that bankers have always spread so
much propaganda about gold is because gold is the kryptonite of bankers. Gold
allows people to preserve their wealth against their fiat currency debasement
schemes.
Hank Paulson, in testimony before Congress, stated that it
was necessary to bail out Goldman Sachs through the bailout of AIG because the
people, “were unhappy with the big discrepancies in wealth, but they at least
believed in the system and in some form of market-driven capitalism. But if we
had a complete meltdown, it could lead to people questioning the basis of the
system.” If Americans really wanted to expose the fraud of the entire financial
system, all they would have to do is to put just a tiny part of their entire
savings into physical gold. If all Americans put perhaps as little as 5% of
their entire savings into physical gold, this would likely be more than
adequate to expose the fraudulent basis of the financial system by which firms
such as Goldman Sachs reap such ungodly profits year after year. What frightens
the bankers the most is the possibility that people will fully understand the
basis of the system, and this is why Western Central Bankers continually wage
so many disinformation campaigns against gold.
Consider this story about HSBC and its retail gold clients
that was reported last month: “The British bank, which has sizeable vaults
underneath its US headquarters overlooking Manhattan's Bryant Park, has told
retail customers – many of whom are middle-men and custodian services which
store gold with HSBC on behalf of hundreds of their own clients – that all
their gold must be out of its facility by July 2010. The decision has seen
fleets of armoured cars laden with gold ferrying the precious metal out of New
York. An HSBC spokesman declined to comment, but it is understood that the
increased demand for physical storage of gold by corporate clients is behind
the move to end the retail service, which HSBC inherited when it took over
Republic Bank a decade ago.” With banks, it’s never about doing what’s best for
their clients. It’s always about what’s doing what’s most profitable for their
executives. For HSBC’s individual retail clients that were intelligent enough
to own gold, HSBC most likely realized that larger, much more profitable
relationships could be built with corporate clients that wanted to buy gold versus
their retail clients. Thus, their retail clients got the axe despite the fact
that HSBC knew that such a decision would be incredibly inconvenient for them.
Just as was the case with subprime mortgages when almost all
of Wall Street got it wrong, the only reason anyone believes that gold is a
bubble today is because people have forgotten how to think for themselves, foolishly
believe that there are not hidden ulterior motives behind the beliefs spouted
by Wall Street, and for some inexplicable reason, still internalize and accept
all banker propaganda against gold while at they same time, they claim to
distrust them. That’s why no matter how much further gold drops before this
correction ends, if you don’t make the move to buy physical gold if you don’t
own any, you will look back with regret five years from now and realize that
you missed an unbelievable opportunity.
»
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Nice post. Your plug about your timed trades was annoying, though.
Remember, it is inaccurate language to talk about "investing" in gold. It may be smart to own gold, but that won't be from any return you earn, it will be from the risk hedge. Like TIPS, you expect a crappy return, but you have insurance against some otherwise awful states of the world.
do we have Fed monkeys posting here..?? :
"
Allow me to summarize it.
Sell gold and hold dollars.
Do not underestimate the power of the reserve currency.
The price of gold can change dramatically with the stroke of an American pen and is enforceable. History has already shown this as policy, regardless of quacks that think a dead bird in the hand is better than the flock that flew away."
Dude, the Dollar is done. Fini.
Peter can only be robbed to pay Paul so long.
What exactly is the American economy that Obama is trying to revive?
Hallmark cards and i-shit?
The paper note of a nation is reflective of that nation's promise and that nation's power.
US power is decreasing, the promise is gone.
In the meantime, buy more gold if you can get your hands on it.
Is it possible that due to the current economic situation a reduction in the value of the dollar would be a good thing? Why would this be a good thing? Well, considering that we are all aware the US has become a relatively service based economy we have lost a high percentage of the manufacturing in this country. Couldn’t a devaluation of the dollar increase the value of our exports and make it more difficult for foreign produced goods to remain as competitive domestically? I understand that this would have deep and onerous effects on our importation of many good including fossil fuels. The bottom line we need to begin bringing production back to this country. I believe the next ten years are going to be rough but the United States is still the epicenter for new ideas, creativity and ingenuity. If you don’t believe so do a little traveling and I bet you will be surprised at what you will find. There is still time to salvage the ship.
A weak dollar doesn't bring jobs back to the states. A devaluation of the dollar does not increase the value of American exports. Any weakness in USD won't have the effect you describe, because you import way too much. If you're free, and living in America, you want nothing but a damn strong dollar to project your worldwide hegemony and purchasing power.
It really has no lasting benefit whatsoever for Americans outside of reducing your debt in real terms.
smartknowledgeu claims to have been prescient "more than several times over the past several years." I am so, so impressed.
Unbelieveable opportunity in gold was back in mid 2005 - is this news?
The first and most important issue is that the monetary precious metals are the only two commodities which, in my opinion, have routinely been price suppressed by central banks and on behalf of the top fiat currency systems. Unlike every other commodity silver and gold have never been allowed to come close to reaching their inflation adjusted highs which they reached shortly after Nixon defaulted (strike that) canceled the last vestige of the US gold standard. While gold is currently in the neighborhood of about half its inflation adjusted high, silver remains at below 1/6th of its inflation adjusted high.
Central banks have been a major contributor to the “Supply” side of the ledger over many years while Gold mining supply has leveled or is declining. In the meantime as central bank hordes have been depleted, central banks on net are no longer contributing to the supply side and have moved to the demand side. So not only are central banks, in aggregate, not supplying gold, they are demanding it, even as miners are facing increasing costs and logistical challenges in recovering gold.
The second point and one the mainstream financial press has studiously avoided for many years is the excellent analytical work of the Gold Anti Trust Action Committee (GATA). GATA has done work that I believe proves that the central banks, including the Federal Reserve have engaged in Gold SWAPS and that many if not most of the largest world central banks played that game along with the US for years as the primary mechanism to keep gold prices suppressed in order to help keep interest rates lower even as very large amounts fiat money and debt and fiduciary media were created. This is based on the work of Summers involving Gibson’s paradox as relates to gold and interest rates.
According to my understanding GATA's research, these central banks have accounting rules that allow them to keep swaps off the books and to continue to report the swapped and leased gold as if were still available physical gold. If GATA’s analysis is correct, the central banks may have only about half or less of the gold they report. In my opinion, there work is rock solid.
I am looking forward to the day this publication and other mainstream news sources begins interviewing GATA founders like Bill Murphy to finally look at this issue. At a time when the US may pass an “Audit the Fed” bill, I think its about time to hear more on this subject.
As far as today's market action in currencies and Gold and Silver:
Today's Dollar movement is clearly interventional (likely some combination of the US Japan and China and Europe) because the dollar is up and gold and silver are fully under record massive short positions by a small handful of the largest US and UK member banks of their respective central banks and on a day when we are seeing a Surge in Wholesale Inflation. That is a dead giveaway to me.
Additionally, there are many signals in the field showing that sovereign debt is increasingly risky and that debt levels among the largest currency manufacturers is rising as the debts among those in the basket of currencies are all not repayable at current currency valuations (relative to real products and real money gold and silver).
Short term, these central banks can cause these fluctuations but looking outside these fluctuations, the whole basket seems to be less and less safe and as more and more of the wealth begins to realize how the wool is being pulled over their eyes it seems to me very likely that wealth will want to get parked in the safest haven of all and take possession of physical gold and silver while it can still be had.
As for today's dollar/gold/silver action:
The central banks constantly use management of perceptual economics (MOPE) tactics to cover economic facts and manage markets. One of their favorite games is "shoot the messenger". Gold and silver, as the last form of real money (un-encumbered by massive counter party entropy) are the primary and most manageable tool (given their tiny market size) relative to the major currencies, but gives them real perceptual bang for their buck (to those not fully aware of the works of the gold anti trust action committee (GATA).
Additionally, there are many signals in the field showing that sovereign debt is increasingly risky and that debt levels among the largest currency manufacturers is rising as the debts among those in the basket of currencies are all not repayable at current currency valuations (relative to real products and real money gold and silver).
Short term, these central banks can cause these fluctuations but looking outside these fluctuations, the whole basket seems to be less and less safe and as more and more of the wealth begins to realize how the wool is being pulled over their eyes it seems to me very likely that wealth will want to get parked in the safest haven of all and take possession of physical gold and silver while it can still be had. When this happens, then perhaps the correlations will paint a truer picture of the underlying economic problems that were caused and continue to be caused by disabling the checks and balances which now enable unlimited debt regardless of whether it can ever be repaid and they also have the power to manipulate perceptions through control of their economic reporting, and what I believe are far more ubiquitous manipulation of all sorts of markets on a daily basis.
Duffminster
Excellent stuff, Duffminster. Logical and reasoned facts. I appreciate your boosting my confirmation bias dose for the day. Those replies above who are derogatory about PMs will not be swayed by your message, however. I'm always at a loss as to understanding why people want me to stop buying gold/silver, or sell what I have. Why do they even care. I could care less if anyone else in the world trades PMs. I've got mine and am always looking for more. I was happy at $400 through $1,000 -- and I'll be happy tomorrow at $1,200. Pricing goes up, pricing goes down, but value remains the same. As for the ZH post, it's useless. I already knew most of it and found nothing revelatory here. It was not strong enough to convince anyone to buy PMs, but it sure has an amateurish cringe factor for those of us who are already on the PM bandwagon.
Thanks again for your message. It has angles that show a deeper understanding than the author of this ZH article.
For the ultimate investment advice, I asked my 6-year nephew on which one he wanted. His response:
Wait... I thought paper beats rock?
The paper one is pretty easy to carry around. It's backed by some really smooth talking politicians, reserve banks around the world, and 10 nuclear-powered aircraft carriers. It's green and tan and smells like bark. I can't print them at home or I would get in trouble, but they can print as many as they want in Washington DC. I like the photos. Benjamin Franklin has a sweet crib.
The other one is hard and yellow and shiny. It's pretty heavy. It's considered to hold it's value across all cultures. People wear it on their neck and in their teeth. It's backed by bloggers, investment bankers, Olympic athletes, and MC Hammer. People dig it out of the ground and then put it in another hole in the ground with a lock on it and some guards.
Everywhere I turn, people are trying to sell me stupid yellow rocks!
Gold: Don't buy it looking to get rich.
The point is to maintain purchasing power. It is profitable COMPARED TO not owning gold/owning fiat.
Fiat money is being created at a rapid rate. People say, well credit is being destroyed at an equally (or more) rapid rate.
Ask yourself, what will stop first: Credit cards stop being issued/paid off.
Or: The government will be able to earn a surplus again, with a positive current account balance?
The gov will finance deficits by printing for as long as necessary (until the SHTF)! Think about if a huge purchase was made by the gov, so much so that you had to stop supplying to people other than the gov. Of course you will demand a premium.
But then you realize the gov doesn't have the money and is just printing it anyway, so lets ask for an additional 15%! The gov doesn't care, and pays it... So next contract you want 25% premium....
Pretty soon you realize they are printing the money, and they can pay any amount, with debt!
To those that might be contemplating an investment in gold you would be better served following the link below than listening to some self-serving P.T.Barnum blowhard. It almost seems like he/she is trying to discourage anyone thinking of a precious metal investment, a strange and sophmoric style and reasoning indeed. Maybe the squid has taken zerohedge hostage!
http://www.safehaven.com/article-1922.htm will take you to a short essay by Yi-Chang Wang which was the clincher convincing me to invest half my life saving in precious metal in 2003. Needless to say I do agree the gold bull has only just begun to stir and I hope Mr. Yi-Chang Wang convinces you of the same.
To those that might be contemplating an investment in gold you would be better served following the link below than listening to some self-serving P.T.Barnum blowhard. It almost seems like he/she is trying to discourage anyone thinking of a precious metal investment, a strange and sophmoric style and reasoning indeed. Maybe the squid has taken zerohedge hostage!
http://www.safehaven.com/article-1922.htm will take you to a short essay by Yi-Chang Wang which was the clincher convincing me to invest half my life saving in precious metal in 2003. Needless to say I do agree the gold bull has only just begun to stir and I hope Mr. Yi-Chang Wang convinces you of the same.
I think the programs instituted by the US government (and other governments that have followed in their footsteps) in their efforts to "improve" the economy are extremely irresponsible and wreckless. They have used terrible Keynesian policies and wasted trillions of dollars bailing out creditors and shareholders of failed institutions with broken business models rather than addressing the structural flaws in the system of too much debt. And these actions are going to lead to massive problems down the road with regard to our currency and interest rates, in my opinion. Furthermore, I think that the gold price breaking out to a new high is a strong indication of the reduction in faith and confidence that people have in governments and their fiat currencies. I recently read a good article called Gold Price Wobbles Under $1,130 But U.S. Dollar Future Bleak that discusses the Federal Reserve's easy monetary policies in order to try to prevent any sort of deflation from occurring and to try to reflate assets prices. There are also many more articles here that I think are very helpful for any investor to read because they help to explain the investment implications for the dollar, the gold price, and gold mining companies who I believe will continue to benefit from central banks' inflationary programs.
If you truly believe you can preserve the purchasing power of your capital by speculating on anything, then I've got this bridge in Alaska I'd like to sell you.
Physical gold, like a well stocked and managed pantry, or a self-sufficient skill set; should play a small but critical role in a holistic lifestyle.
This guy sounds like he is trying to recruit paying blog readers while widening his spread at the same time.
A Jamie Dimon in training, perhaps?
(My favorite part): "This brief anecdote aptly illustrates the bias against gold and the foolish belief that gold is a bubble that persists today due to the massive propaganda and disinformation campaigns waged by bankers against gold."
(My second favorite part): "You can’t pay for many items with Euros in many American stores or buy items with US dollars in many European stores either, but that doesn’t mean the Euro is worthless to own if you live in America or that the dollar is worthless to own if you live in Europe."
Gold is an asset, and assets in this environment are all speculated on, whether debt, equity, resources, or anything else present or future. To say gold does not exhibit speculative bubble behavior is probably the stupidest thing I've ever heard, even as you negate that point by enticing others to jump on your bandwagon.
"No bubble to burst here, but you should buy in now before the bubble gets bigger."
Hey, if you want something for free that's fine! Call a spade a spade, but don't sit here and give us a line of bullshit three miles long marginalizing the risk of speculating on a commodity.
I'm a 1 year old gold bug, but this article is unworthy of ZH
I have been buying physical gold and silver since the mid seventies. I am comfortable with what I possess. The fiat currencies scare the bejesus out of me, as I don't see a policy being implemented to save the value of the fiat currencies, just more inflation (then denial by massaged "official" numbers). The dollar has lost 98% of its value since the federal reserve came into inception. If I had been able to buy gold then ($20/oz) and hoard it through the forced retrieval by the federal government, I would be sitting pretty right now. Do you think someone would refuse to take gold or silver for land, or anything? Only the ignorant.
In Zimbabwe, people are panning riverbeds for gold flakes with which to buy bread (remember the 50 trillion dollar notes). That should tell you something.
Dear Intelligent Idiots,
The music is about to stop. Do you have a 'tangible' seat to park you intelligent fanny in? ...or just alot of paper to wipe you intelligent fanny with?
I really appreciate this site, but could you please put your advertisements in the appropriate spots and not in the form of an 'informative' article. Where do I send my money to learn the 'secrets' of his top and bottom analysis. I prefer to use a gold mining pan. Place a mark on the pan, then place it on your head...spin hard...if it faces North buy, South sell. I am always very skeptical about market timing predictions.
I really appreciate this site, but could you please put your advertisements in the appropriate spots and not in the form of an 'informative' article. Where do I send my money to learn the 'secrets' of his top and bottom analysis. I prefer to use a gold mining pan. Place a mark on the pan, then place it on your head...spin hard...if it faces North buy, South sell. I am always very skeptical about market timing predictions.
The gold/silver under the WTC were recovered. I saw with my own eyes on national TV news that after weeks of looking to recover bodies in the rubble, the metal stash was found. I only saw it on one news broadcast (I believe it was a Saturday safternoon); I saw no further mention of the gold recovery in any further news sources. WITHIN A DAY OR TWO, ANY FURTHER SEARCH FOR BODIES WAS ABANDONED as being "too dangerous".
I have never seen anybody else, on any gold related site, remark upon this, but I saw the news with my own eyes. Is anyone else aware of this?
And they want us to believe no one really wants that old barbarous relic?
Keith Leverenz MD
North Hero, VT
This is just from what I've read. No guarantee of
reliability. George W. H. Bush and Nicolas Brady (Bush 41's Secretary of the Treasury)issued something called Brady Bonds in 1991. Part of the promise was that the bonds would be paid in gold bullion at redemption if the bond holder so elected. Cantor-Fitzgerald on the floor where the first airplane hit was the bond holder. The redemption was due on Sept 12, 2001. The story was that $394 million was due and the Bush-Brady group didn't have it.
There was significant activity looking for the gold bullion. Intense effort with trucks coming and going around the clock until suddenly it ended. There was a billion dollars in bullion in the vaults, I think on four of the lower floors. $250 million belonged to the Bank of Nova Scotia and the bank recovered its gold. The rest of it disappeared and nobody knows where it is.
Wow! I have rarely seen somebody selling their book so blatantly.
No, I will not be the counterparty buying your gold
If you are not questioning the basis of the system, or Hank the Bank Paulson you are the shit for brains sucker believing that special interests and greed have your best interest in mind!
Folks this system is 101.23% rigged against the common man, or any man for that matter.
The money is already gone -- long gone. Even Helen Keller can see and understand that when thieves bark in the day they have already stolen at night.
Not even an audit for a "free country" based on trust. America should be ashamed for having a system that does nothing but loots its citizens on the politically fallible central bank.
You mean Obama wasn't looking out for the country's best interests this morning when he was whoring out the Presidency to Home Depot and Owens-Corning so as to reward those that have helped him attain political power?
How cynical of you.
http://www.harrybrowne.org/articles/PrinciplesOfGovernment.htm
People I know who are interested in gold are scared off by the old mantra "buy low, sell high". It is tough to convince someone to buy anything that is near its all time high. They don't want to be left holding the bag like they did with their 401k's in 2007.
I must know all the same people! I can't buy Google at 300 thats way to expensive....
...and Ninety Five percent of the entire price of gold is speculation.
You are all going to get burned.
Ah, yessss. I've been burned when I bought it at $300. And at $425. And at $560. And at $650. And at $780. And at $910. And at $960.
Yep. I've REALLY been burned on gold the last eight years. Guess I just shoulda put my money in an S&P Index fund. Yep. Then I would really be happy now.
http://bespokeinvest.typepad.com/.a/6a00d8349edae969e20120a653c942970b-4...
The S&P priced in AU
Way to illustrate half the trades. When have you sold?
You haven't.
You will be burned when it drops to the value of legal tender stamped on the front of it -- $50.
Even Stevie Wonder can see that $50 is worth $50 unless you actually sell it for more.
YOU CAN WRITE JESSICA ALBA ON THE SIDE OF A PIG TOO. BUT THAT DON'T.......
Hmmm.
Your ideas are intriguing to me, and I wish to subscribe to your newsletter.
Allow me to summarize it.
Sell gold and hold dollars.
Do not underestimate the power of the reserve currency.
The price of gold can change dramatically with the stroke of an American pen and is enforceable. History has already shown this as policy, regardless of quacks that think a dead bird in the hand is better than the flock that flew away.
"Do not underestimate the power of the reserve currency." Anon~
Here's a tip for ya ... All fiat experiments have gone to zero.
You do not see the "digital fiat" on the horizon? Why the hell do we need paper receipts, and _____ money, where the blank is anything you'd like (gold, paper, CO2, information)...? How else are we (the United States) going to remain custodians of the currency of the future?
This author understands the premise of gold and time, rather how some objects are shiny and attract man like seagulls to a bottle top. Or how an investment can be just as shiny. Perhaps one should step back and really think what set's gold apart from everything else that humans, or seagulls value.
The problem is not paper or gold, it's debt.
The one place that the United States of America stands the tallest is that debt does not ever equal prison. Hopefully that day never comes to be challenged.
Remember, all the glitters, isn't gold. ____ goes away, debt does not.
History. The development of money underwent thousands of transformations before arriving at gold and silver. It is the world's only honest money because it is the only exchange that is no one elses liability. The holder of gold is just that... it cannot be diluted, it cannot be printed out of thin air, it is not based on someone elses ability to pay or backed by government decree.
Money has rules to it.
1. a medium of exchange
2. a unit of account
3 store of value
Only PM's meet all three of these rules. Anything else is a money substitute (fiat).
The US is not going to remain custodians of the reserve currency. Just like Great Britain before us... the currency becomes debauched.
True while debt is the problem ... all FRN in existence represent that accumulated debt. The day the world stops accepting that exported inflation is the day we drown in the repatriation of all those U$D. With gold you can never have that problem.
The vast majority of you "small minded" gold bugs so quickly dismiss is that the United States has not taken that strategic element of scarcity in to willy-nilly consideration.
i believe that whatever you think is contained in the vaults of Ft. Knox or the numbers that are published greatly UNDERSTATE the amount of gold the United States owns, and has in it's possession in the pants (or panties in the case of gold bugs) of its citizens.
Former Empires have made that blunder and we haven't made that kind of strategic blunder, no matter how fearful the masses become of deficit spending.
You folks holding gold drive the charts WAAAY off in terms of accuracy (that you know about) and for that reason, and even the possibility that the US itself owns or has within the reach of it's citizens, more than all the other nations combined makes me own the US Dollar and never lose sleep.
It may be fiat, and it may inherently need a central circle jerk ending with a bank holiday but I certainly don't worry about it being doomed in under 10,000 years but at least it outlasts humans by microseconds when the sun swallows the earth.
Open your damn eyes people, we have the gold, we have the bombs, but we are losing nothing but intelligence.
i wonder why us small-minded ones might be inspired to underestimate the intelligence of those driving this ship?
any ideas? anyone? (hints: dodd, franke, geitner, bernanke, ???)
at least one of us is sleeping well... that's a plus.
yyyyeah. right.
Here's a summary for you: do not overestimate the power of the reserve currency.
The price of everything can change with the market, and is unenforceable. History has shown that government policy cannot control economies for very long.
(as a believer in both metals, *and* their manipulation)
i read your comments as variations of the wise adage "don't bet against the fed".
and i agree that unsold investments are nothing more than a running bet, regardless how sweet the current trend.
but...
anyone who thinks that the short term (6mo) noise in this system cannot be moved by the PTB has not been watching things closely enough.
anyone who thinks gold/platinum/silver will not have value on the world market in 10 years is listening to the MSM and ignoring history. sure it won't hold its highs, but that's not my metric of long-term value.
anyone who thinks that the government's stroke of a pen will actually result in our passive surrender of our metal holdings doesn't understand human nature. Hell, mine got stolen last week. what amazing bad fortune, don't you think?
anyone who thinks the US gub'mint won't take the first opportunity to bundle up our individual retirements into another big SS mess given the right 'crisis' has way more trust in those clowns than is probably prudent.
it goes on, but my point is equally simple:
do you trust the current (last 20 years worth) government/bankers (people with your money)?
or
do you trust history?
I think they'll do anything they can get away with, and the conditions are in enough flux to distract us from their actions. Chaos is always an opportunity to get the high ground. For everyone. Don't be a victim. Trust your gut. And don't try and eat your gold. Apparently you can't...
cheers
Similar story, yeah, I've really been burned too. Have bought for decades now. At $600. At $500. At $400. At $600. At $700. At $900. At $1150 (well, timing there perhaps not so great). I'll keep buying as income permits.
I remember a few years ago I was MAD that I bought a platinum 1 toz Eagle at $900! Burned! Oh, well maybe not.
fofoa.blogspot.com
jsmineset.com
runtogold.com
dollarcollapse.com
+10
Like other assets, gold's value depends on what other people will trade for it in the future. You must be betting that the public distaste for gold will reverse, or at least that foreign demand will increase to the point that the appetites of the US public don't matter. While I think both are reasonable bets, it is important to realize what the bet is.
do you have to be paranoid to be gold bug?
You don't have to be paranoid, but it sure helps!
Your not paranoid if the Fed, congress and our fearless leader are spending us into a inflationary death spiral!
But the MSM is telling me that there is nothing wrong with raising the debt another Trillion or so. It's only $12T now. We've got to squeeze in another $600,000,000,000 for defense next year and a bunch of people are going to want Social Security checks too.
I like to think of myself as just "paranoid", clinging to my guns and religion...
*golf clap* Physical will become more precious even as the paper derivative gets flogged and flayed. Separation before liftoff, it's rocket science! Girlie-men, hear me now and know this later - GLD/SLV weren't invented for you to profit from metals hassle free. They were invented to draw your money *away* from metals, denying you a seat when the music stops.
Hopefully everyone got to watch Ron Paul last hr on CNBC--Sen Judd and Mishkin and their precious Fed. As usual lets try and stack the deck against a fed audit------Smart thanks for putting gold ownership into a laymens perspective and reminding me to purchase some AU today. Oh and a by the way-if Americans are getting so froggy and giddy up, try cruising the streets in the evening and count how many homes have Xmas lights up--yea everybody is happiiiiiiiie. Lets be done with it and End the worthless FED!!