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Why I love Gold
Investors
have dozens of reasons for loving Gold. Some love it because it’s a great
inflation hedge. Others love it because it can’t be devalued. Others love it
because it’s a storehouse of wealth.
Personally I
like Gold for all of these reasons too. But my favorite reason for liking Gold
is because it calls “BS” on this stupid stock market rally.
Indeed,
while stocks have hit new highs for the rally begun March 2009, Gold has a way
of showing the world that most of these gains are in fact illusory: the product
of easy money and US Dollar devaluation.
Here’s
stocks priced in US Dollars:
Here’s US
stocks priced in Gold:
Not quite as
impressive is it? In fact, based on this chart, stocks haven’t increased your
purchasing power since April 2010… interestingly enough the time at which the
Fed’s QE1 program ended.
In other
words, Gold has proved, beyond a shadow of a doubt, that the Fed’s QE lite and
QE 2 programs haven’t done ANYTHING for real household wealth. Stocks, when
priced in a currency that can’t be devalued, have accomplished NOTHING since
April 2010.
The picture
is even worse when you look at stocks priced in Gold since the Tech Bubble:
Ouch.
That’s an
81% drop in value since 2000. So not only have stocks done NOTHING in nominal
terms since the Tech bubble, but they’ve actually LOST 81% in purchasing power
since the last decade.
How can you
not like Gold? It’s the one stop refutation of everything Bernanke and the
others central banking folks claim. It stops CNBC’s nonsense dead in its
tracks. It calls BS on all the bulls.
AND it
increases your real wealth.
Graham
Summers
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In Gold we trust.
Te senes et te iuventus,
parvulorum te chorus,
Turba matrum, virginumque,
simplices puellulae,
Voce concordes pudicis
perstrepant concentibus.
Saeculorum saeculis.
Now let old and young uniting
Chant to thee harmonious lays
Maid and matron hymn thy glory,
Infant lips their anthem raise,
Boys and girls together singing
With pure heart their song of praise,
Evermore and evermore.
an oddball thought....
remember the pinnacle of the housing bubble?
on TV....flip that house, and all its derivative shows
ok
so what is hot on TV now?
Gold Rush Alaska
does the very presence of this show signify a bubble top?
not that i think it does, just pointing it out is all
my personal feeling on gold and silver is that its an insurance policy....i still have gold from depression era(thanks Gramma) and silver from my pre 1980 youth
i have never sold any that i have ever acquired
when i was dirt poor i almost sold some on several occasions but was able to sell other stuff and hold on to my pm's
just knowing it was there as a safety net was comforting
i would by a silver 2015 mini(1000 oz.) contract if i thought i had a chance in hell of getting it delivered
any thoughts on 2015 mini's folks?
One show does not mean that gold is in a frothy bubble. I only watched snippets of that show, but the reason they were out there is that they were all unemployed, and gold mining offered one of the few productive activities open to them.
Congrats on holding onto your PM's for so long, I guess your cost basis must be in the single digits! Regarding 2015, that is so far ahead in these tumultuous times that I have doubts Comex as we know it will still be active. Best to stick to your local coin dealer.
Gold, hobbled as it is by the unlimited fiat mob, is an excellent reality meter. Gold, for some reason, also evokes some of the strongest emotions in trading, which if acted upon without the context of a trend-following, mechanical trading plan with limited leverage and strict stop loss provisions, can be lethal to a trading portfolio. Gold is more than just another tradeable asset; it's as if it it's got some kind of magic power. Try trading it and see. Gold fever is not some meaningless historical artifact; it's as real and dangerous the metal is precious.
While broadly correct, it wouldn't hurt to have some disclaimer/disclosure on your positions. Especially when promoting/pitching stuff. It wouldn't devalue your argument; actually it would enhance your cred if anything. (Although, to say what you did to the ZH crowd is like preaching to the converted).
I love gold because I don't need to love gold any more than I'd love any tool or money. It is just honest hard currency that would keep governments from transferring wealth from the workers to the kleptocratic elites. It is not the answer for everything it is just what it is and for that it has immense value and has yet to have a satisfactory substitute.
I love gold and silver because they will be the instruments that bring down this fiat house of cards. These crooks have perpetrated fraud on such a scale that it has poisoned the national psyche, any wonder that mental illness is so prevalent? Truth is being sacrificed everyday with the ceremonial knife of lies.
I love gold because it is named after it's color,and Banksters hate it, Oh yea,and cause you can't eat it when you got the munchies.
Saves you money that way.
LOL!! +++++++++++++++++++++++++++++++++++++++++++
&... it cant be printed away by the Ben-Ber-Nake the Mad-Printer!!!!!
*****************************************
Beacuse there may be a suprise inside?
Becuase Tungstun is up 70%?
I like it because it can be fashioned into shiny things to give to girls. It is commonly thought that doing this increases the likelihood of them blowing you. It is therefore the greatest store of value that man has ever known.
Put it that way and a run starts tomorrow.
Other than billy the bastard and that other dick everyone else here is on the trade so I'm not sure of the value to preach to the soon to be annihilated by firing squad crowd
but thanks anyway
What's funny is there's still so many paperbugs like you around. Gold's been smacking you silly for ten years and we're "soon to be annihilated"?
News flash: you've already been annililated, and no matter how many times you look at charts like this, you cling to the notion that someday we'll be crying to you saying, "Oh please Mr Paperbug, give us some of that thinly sliced tree money, lest we perish!!!"
Um, it's more likely that your local grocery store will accept Monopoly money.
But hey, whatever keeps you goin'
Goldbug: 1
Paperbug: 0
We like it to
We just don't know why.
We just buy the dips cause it sounds nice.
signed The Bernank's bitchez
Another reason to love gold: Because sociopathic statists with designs on your wealth and savings hate it with such vehemence. "How dare those peasants have a financial lifeboat from our rapacious policies and underhanded Ponzi schemes?"
Or, as the man himself said so eloquently: "Because gold is honest money, it is disliked by dishonest men."
(Ron Paul, The Case for Gold)
They hate it, but not enough get rid of it, I've noticed.
no but they want a bigger cut now... Obama's lining up new 'royalties' for US mining operations... the age-old 'suicide socialism' of adding costs to your industry making it uncompetitive and ultimately driving it abroad ...genius!
yeah.
Thank you, Mr. Summers. I sleep easy enough as it is, but every little bit helps.
Gold and silver don't "go up", it's the dollar.
Good write and scarey shit coming at us.