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Gold And Silver Lead Everything Week-, Month-, Quarter-, & Year-To-Date

Tyler Durden's picture


It has been a volatile week but equities have drifted lower overall with today's early going retracing all of yesterday's gains only to bounce post Europe's close (once again) on the farce of the Spanish bank audit. Reality sunk in into the close though a glance at S&P 500 futures in the last 30 minutes suggest more V-Fib than trend (as VWAP came into play amid heavy volume at the close). EUR weakness (and USD strength) lifted DXY to a 0.75% gain on the week (almost mirroring Copper and Oil's 0.9% loss on the week) but Gold and Silver popped into the close to end the week unchanged (notably outperforming other asset classes). Treasuries held on to 5bps (5Y) to 12bps (10y & 30Y) yield compression on the week - with some volatility this afternoon bringing them back off their low yields of the week. Utilities ended the week up 1% as the only green sector with Tech, Materials, and Energy all -1.5 to 2% on the week. VIX ended the week up around 1.6 vols (in line with stocks at around 15.6%) and credit continued to lag equities modestly. Cross-asset-class correlations fell away a little this afternoon as stocks meandered but broadly risk-assets suggest some more downside to equities.

US equity indices post-QE are mixed with the Trannies down hardest followed by Russell 2000 weakness and a pack of the Dow, S&P, and NDX at around +0.25 to +0.75%...


Interestingly on the week, each time the USD fell back to unchanged, it went bid again... as the EUR lost over 1% against the USD this week


Gold and Silver rolled over a little this afternoon - after outperforming all week - but ended the week unchanged...


Silver and Gold have been the big winners across multiple time frames this year.



S&P 500 sectoral performance has been highly volatile but broadly speaking - until QEternity - Tech and Financials have led. Utilities have been consistently low vol and low return. Financials, Tech, and Discretionary remain the best performers of the year by a long way...


Across the capital structure - equities were a little exuberant into the close - relative to credit/rates/vol (HYG/TLT/VXX)...


Charts: Bloomberg and Capital Context



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Fri, 09/28/2012 - 16:15 | 2839949 VonManstein
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Fri, 09/28/2012 - 16:22 | 2839969 slaughterer
slaughterer's picture

Gold/silver will retreat slowly for the next few months helped along by manipulation and Paulson & co.  They will still go up, but later.



Fri, 09/28/2012 - 16:28 | 2839986 TheSilverJournal
TheSilverJournal's picture

Slaughterer, the USD jumped .5% today so here's your chance to get back into the PM's. Silver's prob going to hit $80 by January.

Fri, 09/28/2012 - 16:43 | 2840020 LawsofPhysics
LawsofPhysics's picture

wait for it, more dollar strength coming.  Orginally read the headline as Gold, Silver, and Lead...

that's it I am out.

Fri, 09/28/2012 - 17:44 | 2840198 Dr Benway
Dr Benway's picture

I read it as "Gold, Silver and Lead is Everything".. 

Fri, 09/28/2012 - 18:18 | 2840292 AldousHuxley
AldousHuxley's picture

since the bail out in 2009


S&P500 +85%

Gold +84%



1 yr performance

Gold 10%

AAPL 70%

AOL 200%   ....yup they are still around.

Fri, 09/28/2012 - 18:44 | 2840346 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Uhm...which bailout?  The 1st one TARP in the Fall of '08 when gold went to $700?

Gold is up 2.5Xs from there.

The S&P made a devilish low of 666, but this in the Spring of '09 (let's also note how gold bottomed 1st, making it a better deflation play than the index).  Now it is at 1440.  A retrun of 2X.

Gold is winning.

Sat, 09/29/2012 - 00:23 | 2841068 DoChenRollingBearing
DoChenRollingBearing's picture

Hey, LH, it's good to be back and to see you writing again (it was hard for me to stay connected in Italy).

Yes, gold is winning.  But, there is a side affect: Italians are giving up their gold WHOLESALE, we just got back from Italy, and Tyler's article of a month or so ago about them giving up their gold is TRUE.  See the pictures, all over the place, and big business:

Sat, 09/29/2012 - 01:37 | 2841138 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

jesus mary joseph...

Sat, 09/29/2012 - 12:16 | 2841594 IrritableBowels
IrritableBowels's picture

Socks and sandals!

Nice write up.

Sat, 09/29/2012 - 11:12 | 2841504 CheapBastard
CheapBastard's picture

My GLD is up 250%.

My SLV over 300%.

My house down 42% and continues to drop.

'Nuff said.



Fri, 09/28/2012 - 18:05 | 2840258 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Dollar strength.... that like Kardasian intellect?

Sat, 09/29/2012 - 10:28 | 2841417 Bay of Pigs
Bay of Pigs's picture

king doelarr?


Fri, 09/28/2012 - 16:42 | 2840022 slaughterer
slaughterer's picture


Fri, 09/28/2012 - 16:46 | 2840039 TheSilverJournal
TheSilverJournal's picture

Time tells all, my friend. So far you were dead wrong when a few days ago you thought the big selloff was starting right then and there.

Fri, 09/28/2012 - 17:12 | 2840110 slaughterer
slaughterer's picture

Maybe I am wrong.  But gold/silverbugs have had too easy a ride the last few weeks.  

Fri, 09/28/2012 - 17:15 | 2840118 TheSilverJournal
TheSilverJournal's picture

Silver's going to a min. $1,000 in two years. The ride's going to be pretty easy. Jump on board and enjoy it.

Fri, 09/28/2012 - 17:27 | 2840150 akak
akak's picture

Surely you are not referring to $1000/oz in today's dollars, are you?

Will this $1000/oz silver be accompanied by $50/gallon milk?

Fri, 09/28/2012 - 17:34 | 2840169 TheSilverJournal
TheSilverJournal's picture

Yes, akak, silver is set to hit $1,000 in real terms.

How, you may ask?

Fiat is set to collapse and gold is set to hit at min. $10,000. And with all of that pressure being driven into PMs and the current dynamics of silver, the silver/gold ratio is set to move down to at least 10 to 1. Wala...that puts silver at $1,000.

More than likely silver will go much higher than $1,000. Gold will likely go higher than $10,000 and the silver/gold ratio will likely compress to less than 10 to 1.

Fri, 09/28/2012 - 17:45 | 2840203 Dr Benway
Dr Benway's picture

You didn't answer the question though.


How much will milk be?

Fri, 09/28/2012 - 17:49 | 2840209 TheSilverJournal
TheSilverJournal's picture

Sure I did. The definition of real terms is measuring in today's dollars. So, how much is milk today? $4?

Fri, 09/28/2012 - 17:55 | 2840225 Dr Benway
Dr Benway's picture

You envisage hyperinflation and a collapsing economy, yet stable production costs for the dairy sector?

Fri, 09/28/2012 - 18:11 | 2840276 TheSilverJournal
TheSilverJournal's picture

Now you're getting a little nitpicky. Some assets will rise in price (in real terms for all of you who need me to state it, which is kind of juvinle on a financial blog because then everything must be written with a disclaimer and it takes a lot longer to type something and make a point and readers of a financial blog should be able to comprehend what "real terms" is) and some prices will fall. Assets bid up by cheap credit (housing, commercial property and equipment, cars, labor can even go in this category) will fall while other assets not bid up by cheap credit (food and energy) will rise. So, yeah, milk will probably go to $8 while a $1M house drops to $100K.

Fri, 09/28/2012 - 18:21 | 2840298 AldousHuxley
AldousHuxley's picture

you don't need milk


drink water



Fri, 09/28/2012 - 22:18 | 2840862 Bay of Pigs
Bay of Pigs's picture

And you can't eat gold either...

Sat, 09/29/2012 - 00:20 | 2841064 TheSilverJournal
TheSilverJournal's picture

It's also pretty tough to eat dollars, especially the digital sort...

Sat, 09/29/2012 - 10:30 | 2841420 Bay of Pigs
Bay of Pigs's picture

Wow. Thought the <sarc> was pretty clear there...

Sat, 09/29/2012 - 12:46 | 2841630 TheSilverJournal
TheSilverJournal's picture

Ha, I guess it should be, but you never know with some people.

Fri, 09/28/2012 - 19:20 | 2840415 Dr Benway
Dr Benway's picture

So you say that the cost of everything that is produced, all consumer items, will double in real terms. That means half as much milk for your ounce of silver.

Fri, 09/28/2012 - 17:49 | 2840215 akak
akak's picture

I would love to see that happen --- well, though, I would probably be less than overjoyed with all the inevitable and less than desirable circumstances leading to it.

Fri, 09/28/2012 - 17:58 | 2840235 TheSilverJournal
TheSilverJournal's picture

Worldwide hyperinflation won't be a pretty thing.

My question is, how won't silver hit at least $1,000. How won't the USD go into hpyerinflation very soon? Rates are already negative and the US is way past broke, only being held up by huge deficits, huge government, and cheap credit. The Fed is going to have to increase the printing faster and faster to keep rates down.

Is the USD not the world's reserve currency and won't the hyperinflation of the USD basically bring down all fiat/bonds/assets bid up by credit. These are the biggest markets in the world and they're going to get wiped out. The flood of wealth out of these assets will try to flow somewhere to try to save investors/savers from being being completely wiped out. Where will the wealth flow to?

Fri, 09/28/2012 - 22:55 | 2840928 savagegoose
savagegoose's picture

because the rest of the world will dump the USD before silver hits $1k. China is already suffering being pegged to USD with inflation and  will HAVE to float , because they get raising costs ,. they have to  eventually bail on keepin usa as a markket for cheap goods. as the costs for everything in china go up.

Thats the biggest clincher, bi latteral trade agreements are the start  china has with  many countries now, gold with iran for oil.  currency with russia, and many sth american currencies.


Fri, 09/28/2012 - 20:20 | 2840548 Jungle Jim
Jungle Jim's picture

Two years is too long. I don't have another two years. Time's running out real fast. I'll have to either sell my childhood home to pay the nursing home, or buy it myself (and give them the money just the same), within three or at best four months. Maybe sooner.

The only way I can save the house is to buy it myself. The only way I can raise the money to buy it is to sell my physical silver. Right now, at current market value, if I sold every last ounce of it, it wouldn't quite be enough. I'd have to dip into the physical gold too.

If silver would go up, like everyone has been saying it would any day now for years, I'd be able to buy the house and keep it in the family. If silver would go up enough, fast enough, I might not even have to sell all of the silver. Maybe I could retain a third of it. Maybe even half.

But I can't wait two years. It's happening now.

Roughly a third of my "wealth" is in gold, a third in silver, and a third in real estate (the house). No matter what happens, I am going to lose at least one third of it, basically in one fell swoop, as they say. And that is a best case scenario.

Fri, 09/28/2012 - 23:12 | 2840955 Nage42
Nage42's picture

If you've had silver for 2 years then you've had from $10 -> ~$40 boost... are you concerned that this is not enough?!?  Quading your purchasing power across 1/3rd of your net wealth has got to be seen as "winning!" mate.


Sat, 09/29/2012 - 02:28 | 2841171 Jungle Jim
Jungle Jim's picture

Well, I started buying silver in the last quarter of 2010, in the low thirties, IIRC. Roughly $15,700 per Monster Box, IIRC. I didn't even start on gold until shortly after that. If I had not already been desperate I would not have even bothered with either. So, now, here I am. "Clowns to the left of me, jokers to the right, here I am."

Sun, 09/30/2012 - 10:06 | 2842952 AlphaWolfe
AlphaWolfe's picture

SERIOUSLY - Sell the house, buy silver/gold, when the shtf - buy the house back for pennies on the dullar. Silver will not make a real move until at least after the election (January) and possibly for up to a year from Obamas re-election. Likely silver will continue to be artificially low to keep the hurt on while the depression worsens to shake out the weak hands. And when families sell off all their heirloom jewelery because they are hurting so bad - then it will soar. Silver will continue to be manipulatively kept low until the middle-class relinquishes all their true wealth then the real onslaught will begin! - Housing is guranteed to be available while food may be scarce would you rather have your family home and no silver to barter with and no food in the cupboards or vice versa??? We purchased a house invested 40k into on top of the purchase price with a pleathora of upgrades and its barely above its originally purchase price - but instead of waiting for it to take a REAL HIT - I'm going to let it go, downsize, stock up and put myself into a position to at least ride out the storm and hopefully even propser for other peoples il-advised or non- actions.

Fri, 09/28/2012 - 17:45 | 2840201 killallthefiat
killallthefiat's picture

I'll take it.  20 gallons of milk for an ouce of silver.  Now I can by 8.  Only 5 if its organic.

Fri, 09/28/2012 - 17:53 | 2840221 Dr Benway
Dr Benway's picture

More likely we will have less milk to drink when the economy collapses, not more. Of course in the long run the correction is necessary for us to have milk at all.


But it won't be fun and games. Having saved PMs might make you comparatively 'rich' in this brave new world, but your living standards will still be drastically reduced.


Buy PMs to preserve wealth as well as possible, not for speculating in the expectation $10,000 gold will make you rich. You are falling into the very trap you ostensibly try to avoid.

Fri, 09/28/2012 - 18:03 | 2840252 TheSilverJournal
TheSilverJournal's picture

I don't think you understand how much milk there is (will be) and how little gold and silver there is (I would say will be as well, but the supply for gold in particular changes very very slowly). Gold and silver will purchase you lots and lots of milk.

Fri, 09/28/2012 - 18:09 | 2840271 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Let's focus this discussion on priorities:

When Obamafone gets cancelled and people are hungry they won't starve, they will work.  There will be a move from the consumer economy towards a producer economy. People will be milking cows for work. 

There will be food to eat because there is labor to produce it ready in the wings.

Sat, 09/29/2012 - 14:32 | 2841814 Talleyrand
Talleyrand's picture

Absent capital goods and cheap oil, they could work 24/7 and still not feed themselves. What will unskilled and unfit labor, by itself, produce and distribute?  Nothing. Well, maybe violence - for a little while.

Fri, 09/28/2012 - 18:13 | 2840274 Dr Benway
Dr Benway's picture

After an economic collapse output falls catastrophically, per definition. There will be much less of everything. You are 100% wrong.

Fri, 09/28/2012 - 20:29 | 2840564 TheSilverJournal
TheSilverJournal's picture

So you think that we're having a money problem and real money will only gain as much value as every other commodity?

Think again.

When the crackup boom kicks in, much more wealth will flow into silver than into milk.

Fri, 09/28/2012 - 21:08 | 2840651 Dr Benway
Dr Benway's picture

That's a moronic argument since milk is not used as a store of value. This is not a matter of store of value, even if 100% of wealth is held in PMs, the economic collapse brings collapse of output. You seem to have absolutely no conception of what economic collapse looks like. 


An ounce of gold today buys 500 gallons of milk. Imagine after systemic economic collapse, you rock up in your horse and buggy to the local farmer. Do you think your 1oz coin will still buy you 500 gallons of milk in this new world? No, it will buy you a tiny tiny fraction of that.

Sat, 09/29/2012 - 00:29 | 2841079 TheSilverJournal
TheSilverJournal's picture

Exactly, milk isn't money. Where do you think wealth is going to PILE into when fiat collapses?

But hey, I can't say I didn't try. I'll stack silver and gain a load of wealth. You stack commodities and break even.

Sat, 09/29/2012 - 00:51 | 2841106 TheSilverJournal
TheSilverJournal's picture

Besides, look who has the moronic argument. If 100% of the wealth was stored in PMs, that would mean that nobody would put a value on anything else at all. In that case, 1/10 of an oz of silver could purchase you everything else in the world because nobody else would want anything except that last 1/10th of an oz of silver.


Sat, 09/29/2012 - 01:48 | 2841149 Dr Benway
Dr Benway's picture

You really don't understand the difference between consumables and stores of wealth? LOL. Silver might become more attractive as a store of wealth, as compared to other stores of wealth, but if the amount of consumables crashes that still means less consumables for your wealth.


What do you think annual dairy production of the US would be after crippling economic collapse? Very much lower. But there will still be the same amount of silver. How the fuck do you think that means more milk for your silver?


Just answer me what you think annual food production would be before and after collapse, And what food priced in silver would be before and after collapse.

Sat, 09/29/2012 - 09:36 | 2841368 TheSilverJournal
TheSilverJournal's picture

A fair guess may be food prices double and silver prices rise by 30. So food priced in silver will drop 15 times.

This is very conservative. More than likely food won't double and silver will rise by more than 30X.

Mr. LOL, the whole purpose of having money is to purchase goods, which I think you understand just fine. Money is only enjoyed when it is spent. A worldwide currency collapse doesn't mean that the world ends and goods stop being produced (although it may because massive war may accompany it as politicians scapegoat.) What currency collapse means is a restructuring of the economy as some goods gain value that were underinvested in and some goods lose value that were over invested in due to central bank's picking winners and losers. After currency collapse, though, it's no longer fiat that purchases those goods, it's, for the most part, gold and silver.

How the fuck do I think it means more milk for my silver? The value of all of the silver in the world is only $600B. Do you realize how many goods are in the world? A lot more than $600B. Pretty soon a good chunk of these goods will be able to be purchased with silver.

Sat, 09/29/2012 - 12:28 | 2841608 Herodotus
Herodotus's picture

What did a gallon of milk cost in Reichmarks in January 1914 and what did it cost in January 1923?  How many Reichmarks did it take to buy an ounce of gold in January 1914 and how many did it take in January 1923?  You don't have to speculate about the relationship between precious metals and commodities in times of collapse and inflation.  This has happened before.  So, the answer should be clear.  Just look it up!

Sun, 09/30/2012 - 10:28 | 2842967 TheSilverJournal
TheSilverJournal's picture

This period will be much different than Weimar. Back then, the world was kind of run on PM's, whereas today, the world is run on a dollar based fiat monetary system. So today, the entire world is neglecting PM's.

Sat, 09/29/2012 - 19:47 | 2842335 Dr Benway
Dr Benway's picture

SJ, you are a fucking moron. Collapsing food production, starvation and food riots does not equate to more food for your silver, the fact that you are seriously arguing this shows you are retarded. HELLO?


To those ITT too lazy to find their own charts and research, here's some charts from Weimar Germany. Note how cost of living in gold is volatile, in any case it does not fall. Note how food costs rise to 92% of household expenditure. The cost of food in gold was thus rising sharply during the period. Which is logical since people were starving, you fucking genius.


The best you can hope for in hyperinflationary collapse is preserving your wealth with PMs. Shills like you really piss me off, you are no better than any other spruiker with your unrealistic promises.

Sun, 09/30/2012 - 10:15 | 2842956 AlphaWolfe
AlphaWolfe's picture

I think everyones missing the most important point - when your inline at the farm and a hundred people have fiat currency whose purchasing power has been in decline for months or years and a couple people are standing in line with gold - whose gonna get the few gallons of milk that are available for sale - the ten ppl w/ pms or the hundreds with paper notes - Same with a swine flu or other outbreak if theres only enough vaccines for a tenth of the people and hundreds are outside with handfuls of worthless paper and a few have gold coins - whose gonna get the vaccines? Even my gf understands this - So even if your ounce of silver only gets you one gallon of milk at least you have the opportunity to purchase milk when the vast majority will not even have the option - Do you agree? Does anyone else think this way???

Sun, 09/30/2012 - 10:22 | 2842962 Dr Benway
Dr Benway's picture

Uhh, no everyone's not missing that point, that's exaxtly what I'm been saying the whole thread? Can read?

Sun, 09/30/2012 - 11:06 | 2843014 TheSilverJournal
TheSilverJournal's picture

This will only be the case if the world goes all out apocalyptic. Hyperinflation doesn't mean destruction of the world, it means destruction of currency. Currency will disappear, but the goods will still be there...they will just be purchased with something else.

Having said that, the collapse of the world fiat monetary system will leave humanity very vulnerable. In a few years, humanity could be much better off as government shrinks dramatically and resources are once again distributed much more efficiently, or it could spiral out of control if those that think they know better than us complete the stranglehold on humanity. The decision of which path we travel down have yet to be made.

Fri, 09/28/2012 - 18:04 | 2840254 akak
akak's picture

I have long said that in the face of a financial, economic and currency collapse, those who hold gold and/or silver will not thereby be 'saved' --- they will just be not quite as bad off as everyone else.

Fri, 09/28/2012 - 18:05 | 2840260 Papasmurf
Papasmurf's picture

You broke the code.

Fri, 09/28/2012 - 19:28 | 2840443 Blythes Master
Blythes Master's picture

Not only that do you realize how bad milk is for you?

You willingly consume the breast lactations a of a bovine?

Humans drinking non human milk. Think about it....

Edward Bernaise (sp?) would be so proud!

Fri, 09/28/2012 - 19:48 | 2840459 akak
akak's picture

I disagree (as long as we are discussing raw milk).

Is it fundamentally any different than humans eating non-human meat?

Humans (at least those of northern European ancestry) have evolved to drink milk over most of the past 10,000 years --- it is now as natural (for them at least) as eating meat is.

My digestion actually gets messed up when I stop drinking milk for any length of time.

Fri, 09/28/2012 - 16:29 | 2839989 Dr. Richard Head
Dr. Richard Head's picture

It's pretty fucking crazy that even with all of the manipulation of equities upward with Benny's printing press, along with the dumpinb of naked short paper contracts (to the tune of over 2.5 times of the entire annual US production of silver over just two days - Monday of this week and Friday of last) that metals still are winning out. 

Fri, 09/28/2012 - 16:44 | 2840027 Winston Churchill
Winston Churchill's picture

The cartel has shot its wad.

I was sure there would be a major attack on PM's today;month end,quarter end.

Will have to get my crystal ball de gaused.

Free path up now to the next resistance levels 2500/75.Sooner than later.

Fri, 09/28/2012 - 16:51 | 2840051 Dr. Richard Head
Dr. Richard Head's picture

Crossing 1780 for gold and 36 for silver seems to be a major point or resistance.  Clearing those levels would seem to be a pretty big milestone to clear the last nominal highs that were smashed down a little while back. 

Fri, 09/28/2012 - 18:24 | 2840308 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The target equilibrium appears to be 1765 which is ironic since that was Sinclair's breakout point months ago.

Fri, 09/28/2012 - 16:23 | 2839971 VonManstein
VonManstein's picture

highest monthly  close in gold since the big pop..

have a good weekend folks

im going canoeing..........!

Fri, 09/28/2012 - 16:25 | 2839975 CPL
Fri, 09/28/2012 - 16:31 | 2839987 VonManstein
VonManstein's picture

lol bit harsh

@Slaughterer i bet you ten pence 1820 and 36.50 by oct 10th

Fri, 09/28/2012 - 16:49 | 2840030 slaughterer
slaughterer's picture

1700/32 before 1820/36.50.  I will reload then.  

(Confession: I am more interested in gasoline, crude, wheat, and pork right now.  String me up if you want.).  

Fri, 09/28/2012 - 18:26 | 2840311 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I almost feel bad for those who were sitting on their hands waiting for $22....


Fri, 09/28/2012 - 18:37 | 2840339 SilverDOG
SilverDOG's picture

Mr Lennon Hendrix,


Let us be graced with $22 silver again.

I would love to finally make the tonnage class.

Fri, 09/28/2012 - 18:46 | 2840352 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I bought hand over fist under $30 and I have only bought under $30 for the last year.

Also, $22 is not going to happen again.  Ever.

You see that symbol I used?  The one that looks like a snake on a pillar?  Yeah, silver priced in that is never going to be at the nominal term 22 ever again.

Fri, 09/28/2012 - 22:21 | 2840873 Bay of Pigs
Bay of Pigs's picture

There are no position limits coming on Oct 12th either...

Wilkins ruled that, by law, the CFTC was required to prove that the position limits in commodity markets are necessary to diminish or prevent excessive speculation.

He also ruled that the amendments to the 2010 Dodd-Frank financial oversight law “do not constitute a clear and unambiguous mandate to set position limits, as the Commission argues.”

Fri, 09/28/2012 - 16:30 | 2839995 Dr. Richard Head
Dr. Richard Head's picture

Now if only some of the thieving banking class followed this shining example.

Fri, 09/28/2012 - 20:53 | 2840606 Newager23
Newager23's picture

There was a guy interviewed on Bloomberg yesterday who worked for a bank. What do you think he had to say about gold and silver? He said that both were in a bubble and were RISKY investments. Not only did he slam both metals, but he actually said that ALL commodities (including food) were bad investments. The only good investments were stocks and bonds.

The Bloomberg hosts had no retort. He was treated as an expert who should be listened to. All I could do was shake my head. This is why only 1% of Americans own a significant quantity of precious metals as a portion of their assets. 

So the perception is that gold and silver are not risk off / hedging investments. They are perceived as risky by both the investment community and most investors. This is why gold/silver continue to follow the DOW. However, at some point there will be a decoupling, and gold will go up when the DOW goes down, and of course silver will follow gold higher.

At some point a new currency will emerge that has a portion of it backed by gold. This currency will become a safe haven and a turning point for the dollar, as people dump dollars for this currency. Currently there is no safe haven currency, so the dollar has been the default go-to save haven. This can't last much longer.

What everyone needs to understand is that the world's largest economy (USA) is only able to stay out of recession by borrowing $100 billion per month. We are literally on the edge of an economic decline. Compare it to a company. If your cash flow was that far in the red, how long do you think you could stay in business? At a certain point, your line of credit would come to an end. Do you see the situation we are in? We are in a countdown. So get ready. Buy some gold and silver. (for mining stocks)


Fri, 09/28/2012 - 20:58 | 2840619 ReactionToClose...
ReactionToClosedMinds's picture

everything going Vladimir Putin's way it seems ....

Fri, 09/28/2012 - 16:18 | 2839956 DoChenRollingBearing
DoChenRollingBearing's picture

Ah, gold and silver beat 'em all...

Now that I am back, I will be writing on Italians selling their gold (we were just there) following up on ZH's article a month or so ago.

FIRST purchase however, is Pb...

Fri, 09/28/2012 - 16:46 | 2840040 n8dawg84
n8dawg84's picture

yes, one must have a store of peanut butter.  It beats inflation and you CAN eat it!

Fri, 09/28/2012 - 17:01 | 2840081 edifice
edifice's picture

We Buy Gold, bitchez.

Fri, 09/28/2012 - 16:18 | 2839958 Yen Cross
Yen Cross's picture

 Who is the "odd man out" ? Hint, it's pale blue.

Fri, 09/28/2012 - 16:18 | 2839960 lakecity55
lakecity55's picture

I took a profit on a bunch of SLV paper, so now it's cashed out and going into Au Fizz. Canadian Au Fizz, to be precise.

These markets are Forked Up, man.

Fri, 09/28/2012 - 18:37 | 2840338 Better_late_tha...
Better_late_than_never's picture

Get more bang for your gamble! AGQ paper to fizz.

Sat, 09/29/2012 - 01:07 | 2841121 FreeMktFisherMN
FreeMktFisherMN's picture

Why stop at 2X when there is USLV! Very volatile obviously. Just got into this as holding physical in my location during school year is a risky proposition, so while my stack is in some lake near my house, I want to still gain from PMs' ascent. Any opinion on leverage, by the way, specifically with regards to the decay? My understanding is that as long as most days are green for the ETN or ETF that is 3X over the timeframe when one holds it, decay is minimal. 


Either way PSLV will probably be my next buy, and there is more solidarity there as far as in-step with silver w/o decay risk, plus its being the 'most physical' 'silver security.'

Fri, 09/28/2012 - 16:21 | 2839966 ParkAveFlasher
ParkAveFlasher's picture

Keep moving sideways ... I'm fine with that.

Fri, 09/28/2012 - 16:22 | 2839970 fuu
fuu's picture

Hi ho silver!

Fri, 09/28/2012 - 16:39 | 2840016 DavosSherman
DavosSherman's picture

Gee, hooocodanode?

Fri, 09/28/2012 - 16:40 | 2840017 Zap Powerz
Zap Powerz's picture

Suck on THAT Bernake!

Fri, 09/28/2012 - 16:48 | 2840044 devo
devo's picture

When everything is a bad investment it's probably best to just hold unprintable money and wait.

Fri, 09/28/2012 - 17:06 | 2840098 Yen Cross
Yen Cross's picture

 A few spare " mattresses" in the shed, work for me.;-}

Fri, 09/28/2012 - 17:13 | 2840111 akak
akak's picture

You again??!!??

Fri, 09/28/2012 - 17:16 | 2840120 Yen Cross
Yen Cross's picture

b/n-ice)   The world is your " Oyster".  I'm catching some zzzzzzz's

Fri, 09/28/2012 - 17:19 | 2840125 akak
akak's picture

If the world is my oyster, I must have gotten a bad one.

Fri, 09/28/2012 - 17:23 | 2840140 TheFourthStooge-ing
TheFourthStooge-ing's picture

You should've gone with the scallops. Steamed mussels would be cool as well, because they look like, well...

Fri, 09/28/2012 - 17:27 | 2840149 Yen Cross
Yen Cross's picture

 And I thought, (I) was sarcastic?  You took a siesta!  I didn't.  Have at it " weekend warrior".

    The speed of light is ( one hundred and eighty-six  thousand miles a second)

Fri, 09/28/2012 - 17:13 | 2840112 Diamond Jim
Diamond Jim's picture

Au and Ag were OK this week...have you been watching Pt...the Pt / Au trade is going muy bueno......

Fri, 09/28/2012 - 17:21 | 2840123 Yen Cross
Yen Cross's picture

XAU, Es Muy Bueno!  Tu Edas quarto ouno!  20xxxx  Centavos's

Fri, 09/28/2012 - 18:34 | 2840329 Diamond Jim
Diamond Jim's picture

XAU is subject to corrections in the Stock Market as a whole. One reason mining stocks have languished compared to the hard metals and ETFs.

Fri, 09/28/2012 - 17:22 | 2840132 Red Heeler
Red Heeler's picture

Save that headline, Tyler, you'll be using it again.

Fri, 09/28/2012 - 17:24 | 2840143 Likstane
Likstane's picture

Gholed Bie-shezz!!

Fri, 09/28/2012 - 17:32 | 2840163 seek
seek's picture

Today's down-rachet on AU from the open sure looked awfully HFT-ish to me. It's been that way the last couple days, pretty clearly someone doesn't want it crossing $1800 again.

My guess is since it's getting closer, we get margin adjustments in the next couple weeks. Can't have the plebes notice the escape route, after all.

Fri, 09/28/2012 - 17:40 | 2840190 Yen Cross
Yen Cross's picture

usd /jpy put pressure on aud/jpy. I closed all my trades today. I have one hedge left (aud/usd & aud/jpy)

  I'm gonna blow out of that trade. Better (new positioning). never marry your trade!

Fri, 09/28/2012 - 18:05 | 2840257 FishHockers
FishHockers's picture

Going long Tungsten

Fri, 09/28/2012 - 18:20 | 2840296 totaleclipseoft...
totaleclipseofthebank's picture

The real winner: BTC/USD up +169% YTD, way ahead of Gold, Silver or Oil.

Fri, 09/28/2012 - 19:18 | 2840420 uniman
uniman's picture

Perhaps a bit OT but...

I'm trying to wrap my head around dealing with multiple currencies.  I think it's fairly obvious that relying upon one currency, even gold, is not going to work very well.  Therefore, must use multiple currencies.  Assuming my logic holds, then I have some conceptual issues about dealing with them that ZH might have greater insight into than I.

The biggest problem I have with this regards producing a balance sheet.  I understand the mechanics of doing bookkeeping using multiple currencies and then producing a balance sheet with everything converted into one reference currency.  However, there's something niggling about using just one reference currency.  I'm concerned that picking one reference might result in misleading results.  For example, even if my equity, as measured in USD is rising, perhaps I'm really sinking instead, as measured against some broader purchasing power measure.  But if I shift to another currency then perhaps the balance sheet would indeed show that I'm sinking.  But this approach sounds too much like opinion-shopping to me so it bothers me.

Another possible approach would be to invent some sort of personal "basket" of currencies to use as a reference.  This sounds like a lot of work and would probably make more trouble faster than it snuffs old trouble.  Perhaps there's just no better way? Any insight appreciated.

Sat, 09/29/2012 - 03:19 | 2841193 Acidtest Dummy
Acidtest Dummy's picture

You didn't read fofoa, did you?
Don't worry, Tyler(s) prolly hasn't either.

Sat, 09/29/2012 - 17:59 | 2842183 sink critically
sink critically's picture

You could convert the value of your investment to gold through each of any number of currencies then compare to exchange rates between said currencies and voila!

Fri, 09/28/2012 - 20:40 | 2840587 disabledvet
disabledvet's picture

actually nat gas has been the star this up more than 50 percent from its lows in December. given 3 trillion in storage that's an increase in value of over 1 trillion dollars. obviously this explains the sell of in transports and why plain old default risk remains high. smartly the DOE is holding off export licenses for nat gas where the global price is 4 times higher. obviously there hasn't been enough gold mined a billion times over to match that increase in value of this a single year no less. and yet the same DOE continues to blow off the Pickens plan and allows coal mines to be shuttered while allowing nat gas to be used for generating electricity. ridiculous. anywho "nothing the bankruptcy of a large country can't fix" i guess. i do find it interesting that the only time we get massive Depressions is under fiat regimes...and never gold money. if prices for the real economy continue to collapse or just not move higher as is the case for oh these many years now perhaps a gold price of 1776 is in order...

Fri, 09/28/2012 - 21:32 | 2840720 honestann
honestann's picture

In gold we trust.
In silver we trust.
In platinum we trust.
In real, physical goods we trust, especially productive goods.

Abandon dishonesty, abandon all forms of so-called paper assets.

Fri, 09/28/2012 - 23:59 | 2841035 mt paul
mt paul's picture

in tungsten sniffing dogs

we trust

Sat, 09/29/2012 - 14:29 | 2841807 Grand Supercycle
Grand Supercycle's picture


Longs please be careful.

Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon:


Sun, 09/30/2012 - 04:32 | 2842775 LikeClockwork
LikeClockwork's picture

Have been eagerly expecting AUDUSD correction but am growing old in the meantime.

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