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The WSJ's Hit Piece On Gold
The WSJ issues an amusing hit piece on why gold is nothing but a "Ponzi Scheme", ignoring the fact that by its definition the stock market is precisely the very same. Either way, since we are seeing no let up in the currency debasement department of Central Banks, and gold continuing to trade near record highs, it is a good thing to occasionally have a shake out of the weak hands. After all it will merely provide far better entry prices for countries like Russia, which as we disclosed recently, have been buying up all the IMF has to sell in the open market. At the end of the day - the opinion of Brett Arends or of David Einhorn, David Rosenberg, Jim Rickards, Eric Sprott, and, oh yeah, John Paulson.
Some philosophical snippets from the WSJ hit piece. No commentary necessary:
At some levels, gold, as an investment, is absolutely ridiculous.
Warren Buffett put it well. "Gold gets dug out of the ground in Africa, or someplace," he said. "Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
And that's not the half of it.
Gold is volatile. It's hard to value. It generates no income.
Yes, it's a "hard asset," but so are lots of other things—like land, bags of rice, even bottled water.
It's a currency "substitute," but it's useless. In prison, at least, they use cigarettes: If all else fails, they can smoke them. Imagine a bunch of health nuts in a nonsmoking "facility" still trying to settle their debts with cigarettes. That's gold. It doesn't make sense.
Some cherrypicking of facts:
As for being a "store of value," anyone who bought gold in the late 1970s and held on lost nearly all their purchasing power over the next 20 years.
Why gold is a ponzi:
Most of the new supply has come from mine production. Some, though a dwindling amount, has come from central banks. And a growing amount has come from recycling—old jewelry and the like being melted down for scrap. (This is a perennial issue with gold. I never understand why the fans think gold's incredible durability—it doesn't waste or corrode—is bullish for the market. It's bearish.) So if supply has consistently exceeded user demand, how come the price of gold has still been rising?
In a word, hoarding.
Gold investors, or hoarders, have made up all the difference. They are the only reason total "demand" has exceeded supply.
Lots of people have been buying gold in the hope it would rise. But the only way it can rise is if still more people buy it, hoping it will rise still further. And so on.
What do we call an investment scheme where current members' returns depend entirely on new money brought in by new members?
A Ponzi scheme.
We now realize we had it all wrong - it is not Keynesianism that is the biggest ponzi, it is gold, whose price suppression practices by JPMorgan and the LBMA cabal is now the target of a DOJ inquiry... Oh oops, the WSJ forgot to mention that part.
The WSJ's "powerful" conclusion
Yes, as I wrote earlier, gold may well be the next big bubble. And that may mean there is big money to be made in speculation.
But I don't trust it as an investment.
Something tells us that John Paulson, who has 30% of his fund now tied into gold, will read this article and rush to sell, sell, sell. Or not.
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nothing stirs the pot quite like a conversation about the merits of investing in gold. it's entertaining, if nothing else.
Perhaps the IDIOT Brett Arends who wrote this pile of crap should read this:
http://gordongekkosblog.blogspot.com/2010/05/mr-denninger-and-gold-or-why-dollar.html
Gordon,
Personally, I see WSJ, Barrons, and the rest of the MSM are contrary indicators. When I see WSJ with a cover page showing gold is the "must have" asset, that is when I will be dumping my gold for something else. Those jokers have been consistently wrong and missed all the bubbles. Yet, they are good at pointing to bubbles that don't exist. Mainly because they don't understand that everything is relative. Yet, gold is just a damn metal. Yes, people do dig it up just to put it away. Yes, you can't eat it. The thing is that gold is a real asset. It's a non-depreciating asset, which is somewhat unique. It's value is relative to everything else. Stocks are simply paper claims on a firm. Dollars are IOU claims on the Federal Reserve, which has claims on the USA. In a world where nothing is real anymore, it's all just paper claims, gold is real and unlike many other hard assets (like land), you can't tax someone for holding it. I guess that is what pisses the PTB off the most.
Rich
Totally, it is one of THE most liquid assets around, especially in times like today.
saw your comment in your link
Most in the West don't know this. Buying Gold Jewellery by an Indian farmer after harvest and then mortgaging it to buy seeds for next harvest season had been done since ancient times. It is also used as money to marry of daugters as dowry, which is actually a father giving a share of liquid wealth to his daughter, while his sons get the land.
India has always been a giant sucking hole for the world's Gold since very ancient times and still is, hence the various plunderers from Alexander the Plunderer, Ghazni, Ghori, other Persian Kings and lastly the English. Indians also hid their wealth during Mughal rule to prevent Land inheritance tax on death.
Pliny the Elder (NH VI.101) complained about the drain of specie to India:[10]
“ "minimaque computatione miliens centena milia sestertium annis omnibus India et Seres et paeninsula illa imperio nostro adimunt: tanti nobis deliciae et feminae constant. quota enim portio ex illis ad deos, quaeso, iam vel ad inferos pertinet?""India, China and the Arabian peninsula take one hundred million sesterces from our empire per annum at a conservative estimate: that is what our luxuries and women cost us. For what percentage of these imports is intended for sacrifices to the gods or the spirits of the dead?" - Pliny, Historia Naturae 12.41.84.
why bend out of shape about all these antagonism towards gold? It is expected.
Got Gold?
Australian banks are exposed to a property bubble, the share market is hollow so where do I put my money to ensure I am worth something if things go really sour?
Gold/Silver is about it or I buy a self sufficient farm with storage silos.
Gold has been seen as something that can always be traded for something else of value, for thousands of years. So no matter what your gold will always be worth something, and I guess worth a lot more whenever the SHTF no matter what it is worth now.
I guess if you have it as an investment then you sell it at the height of panic, gambling that there will be such a near term event. Otherwise it is insurance.
At the very least, you can trade gold for the strongest global fiat currency available.
Through the past few decades, its been remarkable how the USD could be found in just about every corner of the world where there was crisis.
The times, though... they are a-changin'.
I love the debate on gold. I own some physical gold and silver, I have a house paid off and I do own a few stocks (I'll admit it). Tangible assets are wealth, not paper. Try taking a certificate of AAPL to them and get a chair or something. Hard assets, tangible stuff holds value always has.....ask your grandparents, oh yeah most people ignored them for the last 70 years......they had taught me some lessons. If I can't touch it, see it or use it it's not something I want to own. Made more money in real estate, cars, gold, farm land, etc than I ever made in equities..........10,000 page report by laywers and accountants to tell me what comprises a company and you want me to buy that instead of gold....good luck.
I love the debate on gold. I own some physical gold and silver, I have a house paid off and I do own a few stocks (I'll admit it). Tangible assets are wealth, not paper. Try taking a certificate of AAPL to them and get a chair or something. Hard assets, tangible stuff holds value always has.....ask your grandparents, oh yeah most people ignored them for the last 70 years......they had taught me some lessons. If I can't touch it, see it or use it it's not something I want to own. Made more money in real estate, cars, gold, farm land, etc than I ever made in equities..........10,000 page report by laywers and accountants to tell me what comprises a company and you want me to buy that instead of gold....good luck.
Whatever Murdoch buys he turns to trash, the WSJ is no exception.
> Warren Buffett put it well. "Gold gets dug
> out of the ground in Africa, or someplace,"
> he said. "Then we melt it down, dig another
> hole, bury it again and pay people to stand
> around guarding it. It has no utility.
> Anyone watching from Mars would be
> scratching their head."
This is a Red Herring. Buffett knows as well as others at his level that gold is MONEY. In fact, gold is the purest form of money because it cannot be duplicated by an out-of-control government.
Warren Buffett has "dirty hands" and other conflicts-of-interest. If he tells the truth, then too many will rush to gold and screw up his paper investments.
> And that's not the half of it.
> Gold is volatile. It's hard to value.
There is a struggle between Western governments with their central banks against retail consumers of gold and with asian countries who are storing gold. Also, massive hedge funds move in and out of gold. So gold prices will continue to be volatile, but it will also appear to gain in value as more and more fiat paper currency is created.
> It generates no income.
Gold is a tangible that has the remarkable quality of constant value; therefore, it tracks inflation which matches or exceeds investment income that tries to keep pace with inflation!
> It's a currency "substitute," but
> it's useless. In prison, at least,
> they use cigarettes: If all else fails,
> they can smoke them. Imagine a bunch
> of health nuts in a nonsmoking "facility"
> still trying to settle their debts
> with cigarettes. That's gold.
> It doesn't make sense.
Another a Red Herring argument. Walk in to any store today. Talk with the manager about purchasing with gold and they will take the offer! Why? Because of Gresham's law... http://en.wikipedia.org/wiki/Greshams_law
> As for being a "store of value,"
> anyone who bought gold in the late
> 1970s and held on lost nearly all
> their purchasing power over the next
> 20 years.
Brett Arends (the bankers tool) has selected a quiescent period before deregulation allowed money creation to get out-of-hand.
> I get worried when I see people plunging
> heavily into gold at $1,200 an ounce.
> What if the price goes back to where it
> was just a few years ago, at $500 or $600
> an ounce? Will you buy more? Sell?
If gold goes to $500-$600, then there will be massive deflation. The relative value of gold will not have changed. In fact, The Golden Constant: The English and American Experience 1560-2007 http://www.amazon.com/Golden-Constant-American-Experience-1560-2007/dp/1847202616/ref=sr_1_1?ie=UTF8&s=books&qid=1275064720&sr=1-1 shows that gold holds its value more during times of deflation than times of inflation.
> Everyone knows the price has risen about fivefold
> in the past decade. But this is not due to some
> mystical truth or magical act of levitation. It is
> simply because there have been more buyers than sellers.
> Banal, but true—and sometimes worth repeating.
This is another way of saying the supply of gold is constant. Actually the supply is shrinking slightly since industrial uses outstrip gold mine production.
> Since 2002, for example, total demand for gold
> from goldsmiths and jewelers, and dentists, and
> general industry, has come to about 22,500 tonnes.
> But during the same period, more than 29,000 tonnes
> has come on to the market.
But where has that supply come from? GATA http://www.gata.org/ shows that it has come from the Western central banks.
> Most of the new supply has come from mine
> production. Some, though a dwindling amount,
> has come from central banks.
This is false. The president of Barrick gold mines http://www.barrick.com/ has repeatedly said that central banks sell more gold that the mining industry.
> So if supply has consistently exceeded user demand,
> how come the price of gold has still been rising?
False assumption...
> In a word, hoarding.
And a negative implication of saving money in a highly liquid, inflation/deflation proof form.
> A Ponzi scheme.
No. In a Ponzi scheme there is a central authority collecting value in exchange for the promise to provide even more value. But here only visible central authority is pushing down the value of gold.
> Yes, as I wrote earlier, gold may well
> be the next big bubble. And that may
> mean there is big money to be made in
> speculation.
This is the only true statement Mr Arends seems to make.
Rookie mistake on the duplicate post. Head hung in shame.
The PTM Index, Protesteth Too Much Index... the more the financial establishment mouthpieces criticize gold, the greater the confirmation of gold's strength. Someone noted the almost perfect correlation between The Economist pieces disparaging gold and almost immediate rises. Anyway, let them rant and vent and fart and I'll keep buying physical.
Gold has better fundamentals than half the stocks in the S&P 500. No debt, no pending lawsuits, and is not losing money quarter after quarter.
Until there is somewhere better to place my earnings, why wouldn't I invest in gold?
It's one helluva lot more liquid than real estate.
I just love to hear the complete, utter BS about "hoarders". "Hoarding" means that I think you have more of something than I think you should have. Nothing more.
But even so, is "stockpiling" (forward planning, contingency allocating, etc., etc. - all more politically palatable words for being a miser) a BAD thing when it comes to money?
Let's see.... the government prints NEW money. That steals value from everybody else's money, lowering its purchasing power (remember, the dollar has lost 96% of its purchasing power, probably more, since 1913). And this is a bad thing.
But when a "hoarder", or "miser", takes money (take your pick, whatever kind you want) out of circulation, and stuffs it in in his mattress, or safe, or buries it in the backyard...the circulating money supply goes.... DOWN. Which, of course, means that the value of everybody elses money goes... UP.
HOORAY for the misers. HOORAY for the hoarders. Thank you, thank you, thank you.
Keep up the good work.
TAKE DELIVERY. Keep your gold in your physical possession.
TAKE DELIVERY. Keep your fiat CURRENCY in your physical possession.
REMOVE YOUR DEPOSITS FROM BANKSTERS. Keep it in your physical possession.
And we will all be better off.
A lot more people (including Brett "Moron" Arends) are "hoarding" dollars than Gold.
Brett Arends is one of the reasons I no longer read the WSJ, I even got my company to drop the subscription they bought for me, it is a waste of paper.
People buy gold for eons because: it is shiny, it is rare, it is seen as a store of wealth, it is shiny, it is the only alternative in troubled times, it is shiny. Sometimes it rises in price and momo types buy it. Certain cultures value it more than others. Those cultures are now gaining more middle class consumers. It is shiny. Some economists and central banks see it as valuable at these levels. It is shiny.
There. That is it.
It's the WSJ. You shouldn't be reading it anyway.
What do you expect a mouthpiece of the govt and big business to say?
Well he told us what he doesn't trust, but he really should tell us what he does, and then give us so data to back up his stance. As with almost all investment discourse, even from Warren Buffett, if we look a little deeper at actual performance and see if the facts hold, we find shoddy work.
I always get suspicious when I see Buffett quotes, because his investment strategies and influence are so much different than the average investor, is to make any comparison meaningless. If you look at the "mechanics" and access to vehicles, Buffett has enough capital and reputation (skillfully cultivated) to create his own opportunites. He can also, it seems, pick up the phone and convince a company like Goldman to issue him a special release of preffered shares, just for investor confidence PR. Rare powers indeed.
But back to Brett;
The real problem in judging Gold is to find its fair price. In an ideal world we would have a benchmark that was constant over the centuries in order to see changes in Gold (or any other thing) relative to Fiat money. If such a thing existed, there would be no haggling over Gold price.
So what do we have?
We have Brett providing a stance based in USD that, not only are we unable to value, but will always be worth something, because mathematically, if the currency is accepted in some form, it can never reach zero. However, it can get very close. So a comparison to the USD should include factors that can effect the USD present and future value. Especially, if you use historical trends to make some proclamation about the future.
----------
In practical terms, is the dollar worthless? Well if we use accural accounting, a way to move some of the hidden FED debasement costs into the present, we would see that depending upon interest rates, and the FEDs offset of present costs through QE, that the dollar has indeed been debased into worthlessness.
Interest rates, if QE not increased, wll basically determine when we have reached real zero growth. That is, a situation where we can no longer remove the burden of debt. However, the risk is not in debt to GDP, the risk is in finding buyers in ever greater numbers to buy US debt. This is, because outside of the central banks, debt investing requires trust, and you cannot debase what you say has value, and then expect to be trusted.
----------
In practical terms, the only real backstop for the USD, is FED debasement. I know this sounds strange, but our system requires borrowing to provide cash flow, and in the end, the FED has all of the short term financing. It has become the debasser of last resort.
----------
Our real debt burdens, and our inability to find viable political solutions, have produced a situation where we are beyond offsetting the costs of debt through growth or preceived value in whats backing it. The only question left to us is, at what point do the costs of borrowing create zero or negative real growth.
Once this occurs, outside capital will flee, and the return on labor will not warrant its investment. The states at some point will realize, one program at a time, that return on labor is finite, and the real costs of Federal oversight, in producing a benefit, will not justify the investment in tax on labor.
In short, the States can no longer afford the size and waste (costs) of the Federal Government. People must benefit from the fruits of their labor in order to sustain growth. Our democracy is unsustainable when benefits to labor are denied to pay interest.
Mark Beck
+ $1215 Well said Mark Beck.
can we vote Mako off the island? - he doesn't play very nice
Mako stays. Even Johnny Bravo stays, he even answered a question for me.
Different opinions offer an opportunity to think deeper and maybe learn something new.
Let a thousand opinions grow!
I'm a gold bug AND I agree with Mako. I have other tangibles that will theoretically preserve my life in order to allow my to, paraphrasing Mako, find someone that is willing to trade something for it. Communities of productive, vigilant individuals will find various mediums to exchange goods - PMs will certainly have its place as the most liquid once the hierarchy of needs is again stabilized.
Mako and JB only have one thing in common: a repetitive message. One bluntly explains what will happen in no uncertain terms; the other is a deceiver. Once production begins to fail people will realize how unstoppable collapse is when you allow deceivers to run the show. The demand for gold reveals the deceiver. Merely possessing gold will not save you - preparation for calamity might. Pricing volatility will be useful for acquiring tangibles that can preserve your life. Farmland, storable food for making a transition to full sustainability, firearms and training for self-defense, etc. Hedge your bets accordingly. On a long enough timeline...
Mako is correct about the current system, but refuses to see how a real economy functions, claiming that no economy can ever function, despite the fact that humanity in fact exists. He is so focused on "the equation" that he can't see the flow of money in a free market. He thinks that individuals can set whatever price they want on money and that everyone will flock to borrow at any rate, which is outrageous.
The fact is that when you borrow at interest in gold, the money to pay the interest comes either from underconsumption at a later date (in the case of consumer spending), or from consumer spending (in the case of capital investment). He thinks that EVERYONE will somehow all have 100% of their gold saved, drawing interest (from where he does not say!), and never spend anything, and that that will somehow destroy the system. Such a situation would destroy the economy, but only because everyone would starve to death, because they refuse to spend any of their money. Also, because no money is being spent, they are getting 0% interest on their savings.
I have pointed this out to him on several occasions, but he immediately shuts down his brain, calls me a moron, and tells me to stop reading Peter Schiff books. Well, I didn't get that from a Peter Schiff book, I DERIVED IT MYSELF, as anyone could do if they spent thirty minutes contemplating the subject.
Sigh.
I appreciate the establishment's efforts to provide me with cheap gold even as their paper alternatives collapse.
TRUE! Gold is probably the most stupid investment at these levels
beside stocks, bonds and other commodities
Is this driving the drop in gold today? I grabbed a chunk of DGP at what looks to be the bottom...if it holds.
It weird how wrong everybody is on gold. Gold is money, period. You don't compare it to cigarettes, you compare it to paper money. Paper money sitting in a safe is totally non-productive, just like gold. You can't eat it, you can't live in it, and it doesn't get you high (some gold bugs excepted). But that's true of all money, it doesn't possess value in and of itself, it REPRESENTS value. Money is a SYMBOL of value, and then only because we all agree to use it as a fungible trading medium. Money exists only because barter is absurdly inefficient.
Some people say gold has "intrinsic value", but that's nonsense, it has value because we say it does, period. Others say gold is useless because you can't eat it. Well try eating a bowl full of quarters, or one dollar bills. They say you can't go to the grocery store with a gold coin, but not too long ago gold coins were commonplace. Try taking a 1000 Euro note to a European grocery, its about as useful as the gold coin.
Things that have intrinsic value are things we cannot live without, the value of those things is derived from the value we place on our own lives. Air is the most important thing to people, but its abundant and ubiquitous, so it's free. But if you run out of air scuba diving, you you'd pay anything to share soembody's tank. Water is the next most important thing to survival, and where it's abundant, it has little cost, but in the desert people will kill for it. Food comes next, and it can be very valuable when scarce. And finally, shelter from cold is essential for survival in some places, not to mention houses also provide privacy, and protection from intruders. These things have intrinsic value, and we use symbols of value (money) to represent that value for trading purposes.
So how is it that gold, which we don't need at all, is expensive, but air, which we cannot live without is free? The obvious answer is that gold is scarce. But its also visually appealing (otherwise people wouldn't use it for jewelery), it is durable (it doesn't oxidize or tarnish), it is easily divided into very small pieces and its uniform: Chinese gold is the same as Russian gold is the same as what's in Fort Knox (hopefully), or even King Tut's mask. Equally important, it has very few industrial uses. So 95% of the gold ever mined is still in available form (jewelry and bullion). These physical properties make it excellent to use as money. And its a better form of money than paper with funny marks printed on it, baucuase every time a government runs out of money, they just can't resist printing more.
But paper money is already an anachronism, electronic money is the modern form of currency. You don't even have to cut down a tree, or waste ink printing it. You fiddle some bits on a disk drive and call it money. You can create a quadrillion dollars as easily as creating one dollar. But these are not just any bits, but bits that are secure from would be electronic bank robbers. Bits are indistinguishable from one another..So what is it that differentiates the bits in a junk email from a billion dollars in a bank account? The bits must be on disk drives kept in basement server rooms which are locked and guarded. Sound familiar?
It's when you compare gold to electronic money, you can see why people might want some insurance. The world has a relatively fixed amount of assets, some which change in their perceived value over time (e.g., The Roman's didn't ascribe much value to Uranium, but we do). We should only have the amount of money required to trade those real world assets efficiently. The amount of gold grows only about 1% per year, so its quantity is relatively fixed, just like the earth's asset base. But digital money way too easy to create, and has proven to be an irresistible temptation for bankers. Of course most of the money gets created in the Fractional Reserve Banking system, which essentially lets banks create electronic money without limit. In the end gold is just good money in a world FULL of bad money, nothing more nothing less.
So gold isn't an investment in the productive output of people, like a stock should be. It is a cash account denominated in a currency that is not the property of any government, its s gift of nature and in your possession. If governments abuse the privilege of money creation, or get really desperate and reform their currency, your 'cash' will appreciate relative to the paper/electronic currencies. No government can declare gold worthless (although they try anyway).
dumpster take his chances at gold 300 silvr 4.25
let the year or two go by ,, and the other currencys come backed by gold .
it will be in interesting time .
cant eat it , but a nation better well have it to back their currency or ..
the bias against gold.. comes from a select group of folks that have lived as long a s 50 years some even 25 . and judge things by the amount of zit cream they use .
of course the wisdom of russell , sinclair , dines is lost in the shuffle as a lap top and some warped thinking and conjecture makes for sound and fury ,, signifying nothing
and why dear people is china , russia , india , and certain groups of planners finding that gold may be a value ,, as it takes its place again as the backing for currencies
while mako drives a tractor
http://news.goldseek.com/GoldenJackass/1275508800.php
or read something that will happen to gold soon ,
it has no value and shiny . such idiotic thinking in lght of what is happening ,, as the folks rail against the waves ,, and shout it is not needed .. as the wave then washes them into a big pile of goo.
Thanks for the link!
dont listen to the gold is valueless people
If Google told you to jump off a cliff, would you?
A Utah woman used Google Maps' walking directions on her Blackberry and was given directions to walk onto a highway. She got hit and is now suing Google for damages."Yes, it's a "hard asset," but so are lots of other things—like land, bags of rice, even bottled water.
It's a currency "substitute," but it's useless. In prison, at least, they use cigarettes: If all else fails, they can smoke them. Imagine a bunch of health nuts in a nonsmoking "facility" still trying to settle their debts with cigarettes. That's gold. It doesn't make sense"
Ah, that's why the worlds Central Banks hoard reserves of rice, bottled water and cigarettes.
'Cause they are just as good a store of wealth as gold!
william the dumb
what a brain dead inane contribution to show that your about 25 years old ,, and living from day to day with zit cream ,
so the world economic system falls on the shoulders of a pack of cigarettes for the fellow in prison .
or did i read your post wrong and you were responding to the real dumb person lol
I quoted the part of the OP I responded to.
thanks for clarification ,,
william the smart lol
I don't understand the concept of defaulted debt money is 'still out there'.
If someone owes $500,000 on a house and when they default it's only worth $350,000 upon their default, where did that money go to where it still exists?
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Roman soldiers may have been paid in salt but the emperors kept their gold.
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If gold is so untrustworthy, why are there still international banks that provide settlement service only in gold?
so you paid 500 grand for the house ,, labor, supplies , cost of goods ,, that 500 grand is still in the system ,
its gone nowhere ,, the 500 fronted was on a fractional basis , part of it goes bong.. who is out any think their is still 300 thousand or so left of the ponzy cash .. the bank takes ahaircut of 200 thousand of ponzi dust
so we now still have the original 500 paid plus the imaginary 300 so the net gain is 800 thousand , of debt money still in existence
Hey Poof, here's how it works.
When the $500K was credited into existence, it became real money which obviously paid for the house. Now that the borrower has defaulted, and left a liability only worth $350K, the remaining balance has evaporated (debt default). Provided that there is no recourse, then the money contributes to a deflating money supply which the bank should technically carry on it's balance sheet. The slick accounting (Mark to Model) temporarily balances the books. So you're right, money can be destroyed but only banks can create it.
I love how they call sitting on gold "hoarding" as if it's a bad thing... you evil gold bugs not sharing your gold for the CBs to play with.
I get such a strong sense of deja vu when reading articles like this -- haven't we all seen these types of "don't ever buy gold" pieces ever since gold broke through $300/oz. earlier in the decade? Look, this isn't some kind of esoteric physics experiment where the results are not directly observable. One year from now we'll be able to know with certainty whether the author is correct -- have Wall Street's stock and bond investments performed better than gold? My money, as well as the money of a growing part of the rest of the world, is on gold.
It seems to me what the banks and the government are doing (for example with this WSJ article) is continuing to mold group think into believing that the US dollar IS the store of value, the object to which all assets of all kinds are measured and compared. The "new gold" per se. And it seems to still be working.
Of course they know better, it's just paper, but without this charade the efforts they've been taking to prop up the economy would be seen for the scam it is. They will play this out as long as they can successfully propogate it. How long they can keep the genie sufficiently wedged in the bottle is the question and the ultimate determiner.
To me, that in a nutshell is it. All else depends on this one thing.
But of course I could be wrong as I see my math question was the easiest I have had to date - possibly in sympathy?) and am open to disagreements.
How banks thrive on "NO Consideration" - a gig I wish I had access to...
http://www.webofdebt.com/articles/dollar-deception.php
freddie
don't ever buy gold" pieces ever since gold broke through $300/oz. earlier in the decade? Look, this isn't some kind of esoteric physics experiment where the results are not directly observable. One year from now we'll be able to know
aint that the truth ,, lol
but we will here another song and dance then ..
what will then be the story
freddie
don't ever buy gold" pieces ever since gold broke through $300/oz. earlier in the decade? Look, this isn't some kind of esoteric physics experiment where the results are not directly observable. One year from now we'll be able to know
aint that the truth ,, lol
but we will here another song and dance then ..
what will then be the story
damn tough math.......
Things which are useful can not valuable. Using useful things turns them into garbage and waste products. This is obvious for fuel and food. It is also the case with tools and ammunition, cars and every other industrial product. The usage of these products ultimately transform these products into waste and garbage. That is one consequence of the second law of thermodynamics. The ultimate destination of all industrial production is the garbage bin.
If something can be turned into garbage, it can not be valuable in the beginning.
Gold is valuable precisely because it is useless. Even if gold is used, it is difficult to convert it into garbage. That is the reason why so much of it is around.
Buffet I've had enough of your shit. Gold isn't supposed to make you happy. If you lay a gold brick on your cock, you won't nut yourself but that doesn't matter. Gold is a hedge against fuckers like you supporting the never ending printing of fiat currencies and taking away the purchasing power of the middle and lower class.
And isn't GLD one of your largest holdings? What are you trying to pull? You and I both know you're adding gold to your portfolio more and more everyday so PLEASE get the investment banks cock out of your mouth and speak correctly. Besides, you're an investor, not an economist so stop behaving like one.
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