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Why Gold Bugs Should Cheer For Democrat Presidents

Tyler Durden's picture




 

We already know that Ben Bernanke is a gold bug's best friend (here, here and here). And while technically Ben Bernanke is a republican, and was appointed to his post by a republican president, it is safe to say that when it comes to printing money political affiliation is irrelevant, especially since it was paradoxically a democrat Obama who was Bernanke's biggest backer during the last year for very obvious reasons - after all it was merely Bernanke's $2 trillion in excess reserves that pushed the stock market higher and gave the false impression that the economy is improving (even if a potential Romney administration would have hardly budged the status quo and likely replaced Bernanke with an even more pro-printing figurehead in the face of Bill Dudley). So a different question is: should gold bugs be more excited by a democrat or a republican president. The answer is self-evident: of the $4000 inflation-adjusted increase in gold price since gold was floated by Nixon, a solid $3000, or 75% of this rise, has taken place under Democratic administrations. So dear gold bugs: stock pile that physical and cheer on Obama and hopefully his democratic successors. At this rate, gold (and ostensibly all other precious metals) will outperform every single asset class known to man (sorry Buffett).

 

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Sat, 11/17/2012 - 10:54 | 2991478 nmewn
nmewn's picture

Which is why I call Benny my bitch ;-)

Sat, 11/17/2012 - 11:15 | 2991510 kaiserhoff
kaiserhoff's picture

Make a little money.  Lose a civilization.  Hell of a deal.   Literally.

Sat, 11/17/2012 - 11:27 | 2991536 nmewn
nmewn's picture

Yeah, they're idiots.

But they really can't help themselves now, the central planning is too far gone. I should point out I don't trade gold, I save it...on the bottom of a lake ;-)

Sat, 11/17/2012 - 11:29 | 2991540 kaiserhoff
kaiserhoff's picture

Same damn thing happened to my silver and moonshine still.  Funny how the earth sucks;)

Sat, 11/17/2012 - 11:49 | 2991550 GetZeeGold
GetZeeGold's picture

 

 

When 475 get another 5% to go along with them.....there's only one thing left to do....sell paper and buy gold.

 

Greed has nothing to do with it.....it's just just self preservation.

Sat, 11/17/2012 - 12:04 | 2991605 icanhasbailout
icanhasbailout's picture

Gold bugs: "Yay FDR!"

 

oh wait...

Sat, 11/17/2012 - 19:10 | 2992418 Supernova Born
Supernova Born's picture

No kidding. Cheering wildly right up until the crickets start chirping when the executive order is signed.

Part of the "Cash for Gold" explosion is intended to reduce the constituency of "folks" who'll be angered by a ban on possession.

Those who sold their gold will feel extra-special stupid as gold skyrockets right up until the ban, when they'll golf clap for the leveling benefits of socialism.

Sat, 11/17/2012 - 11:42 | 2991560 Freegolder
Freegolder's picture

'At this rate, gold (and ostensibly all other precious metals) will outperform every single asset class known to man'

 

Well, there is gold, soon to be centre of the monetary world again.

All other metals are industrial though.

Precious? Don't think so.

Sat, 11/17/2012 - 12:38 | 2991684 BLOTTO
BLOTTO's picture

God made Go(l)d.

.

Man made paper.

.

You go and try making gold...maybe you can find it, but, no way you can make it.

.

Indeed it (pm's) is precious...since the dawn of time. 

Sat, 11/17/2012 - 13:18 | 2991792 PeterLemonJello
PeterLemonJello's picture

Another FOFOA leming...I'm sure nothing will have any value to anyone ever for anything...other than gold of course. Sigh

Sat, 11/17/2012 - 13:01 | 2991739 Silver Bug
Silver Bug's picture

We all know gold and silver are going much much higher due to QE to infinity. Lets just hope the world doesn't tear itself apart in the process.

 

http://ericsprott.blogspot.ca/

Sat, 11/17/2012 - 14:41 | 2991950 JKearney3153
JKearney3153's picture

zerohedge.com? OR goldhoarders.blogspot.com? When SHTF I'm stockpiling lead, brass and bottles of water

Sat, 11/17/2012 - 21:45 | 2992706 archon
archon's picture

I'm a pragmatist...  if serfs want to be serfs, let them be serfs.  I buy gold because the more serfs there are, the more valuable gold becomes.  And yet, somehow that makes ME one of the bad guys...

Sat, 11/17/2012 - 10:54 | 2991479 jcpicks
jcpicks's picture

GOLDS <Cmdty> GIP <Go>

Sat, 11/17/2012 - 11:03 | 2991491 CunnyFunt
CunnyFunt's picture

"cheer on Obama and hopefully his democratic successors"? At this rate, there won't be much to succed.

Sat, 11/17/2012 - 11:18 | 2991520 TrulyBelieving
TrulyBelieving's picture

The measure of sucess for O and is Statist ilk is the destruction of the dollar. Collapse the economy, crush the prudent, and  usurpation of a government by the people, for the people is their goal. Of course their reign will be much more merciful, spreading the wealth and all the goodness that flowes from totalitarionism. 

Sat, 11/17/2012 - 12:01 | 2991599 Bad Attitude
Bad Attitude's picture

I've been investing in bullets (and food) since Dear Leader took the throne. While I can't predict the future, I know it isn't going to be pretty. Sooner rather than later, Dear Leader is going to run out of other people's money. The Obama Bucks will stop flowing. The Obama Phones will stop working. When that happens, the thin veneer we call civilization will fall, and those who exist only by feeding off the labors of others will riot and pillage. Even gold won't hold back the rampaging hoards.

Sat, 11/17/2012 - 12:25 | 2991655 AgShaman
AgShaman's picture

That's a bad attitude, but yes....a very likely scenerio

Sat, 11/17/2012 - 13:32 | 2991822 hawk nation
hawk nation's picture

If america joins israel and bombs iran the chinese and the soviets may just decide its time to dump the dollar and the shit will hit the fan

I am not sure that that isnt what obama and his gang want anyway in order to impose tyranny

Sat, 11/17/2012 - 11:07 | 2991498 TrulyBelieving
TrulyBelieving's picture

It takes an Ivy League economist to understand that gold is just a barbaric relic. And it takes an uninformed gullible people that have known nothing but fake paper used as money to believe it. 

Sat, 11/17/2012 - 11:16 | 2991518 Hubbs
Hubbs's picture

Hmmm deep. Economists know nothing, espescially if they are from Harvard, and the people know nothing unless it is on TV. So therefore gold is real money. To make it short and sweet: the crowd is always wrong.

Sat, 11/17/2012 - 13:15 | 2991780 LawsofPhysics
LawsofPhysics's picture

For not "knowing" anything, they sure live pretty well.  Oh well, hope they taste like chicken.

Sat, 11/17/2012 - 21:41 | 2992701 archon
archon's picture

My own learned opinion is...  sh!t gonna get real when dollar go BOOM!

Sat, 11/17/2012 - 11:14 | 2991500 Mr. Lucky
Mr. Lucky's picture

Not cheering.

Sat, 11/17/2012 - 11:53 | 2991580 GetZeeGold
GetZeeGold's picture

 

 

Save your breath and your arm strength....you're going to need it when you have to start swimming.

 

You can only pull something like this off once. Make the best of it - Gordon Brown

Sat, 11/17/2012 - 11:09 | 2991502 wonderatitall
wonderatitall's picture

but but but...romney killed the twinkies...or so said the mob goon trumka...

so there

Sat, 11/17/2012 - 13:01 | 2991740 nmewn
nmewn's picture

lol...a statement from the Teamsters...

http://www.teamster.org/content/teamsters-bakery-workers-should-hold-secret-ballot-vote-hostess

It would seem one union was standing on a rickety ladder trying to put the Twinkie Star on top of the tree...and knocked the whole thing over.

Merry Christmas.

Sat, 11/17/2012 - 11:13 | 2991505 Hubbs
Hubbs's picture

Huh? Sorry Tyler. All this headline shows is statistically , you like to write articles about gold and your bias in favor of it. The "launch" really occurred under Bush W.

But we ZHers know that you are just making light chit chat with this article anyway, as we are aware of the bigger monsters lurking in the waters.

Sat, 11/17/2012 - 11:15 | 2991512 gould's fisker
gould&#039;s fisker's picture

Reuters said there is no need to worry because in their technical terminology the economy has a bungee cord that will save us all (therefore no need to buy the shiny stuff).  They're pretty optimistic that recent market losses don't really count for much of anything, and the article's illustrious commentariat seem to agree (although not knowing what they are agreeing on).  All appears to be well in the Republic.

http://news.yahoo.com/wall-street-week-ahead-going-off-cliff-bungee-232345278--finance.html

 

Sat, 11/17/2012 - 11:23 | 2991523 dwdollar
dwdollar's picture

What this really demonstrates is that the Reagon-Bush Sr.-Clinton years were merely a pause on our road to hyperinflation. A pause probably due to several factors including the fall of the Soviet Union and an amazing technological innovation (which doesn't happen that often).

Sat, 11/17/2012 - 13:50 | 2991855 Ident 7777 economy
Ident 7777 economy's picture

Open to debate on this issue .. time will tell.

Sat, 11/17/2012 - 23:36 | 2992893 BooMushroom
BooMushroom's picture

We could have the fall of Persia and a revolution in nanotechnology or gene therapy.

Not holding my breath or anything though.

Sat, 11/17/2012 - 11:19 | 2991524 Atomizer
Atomizer's picture

I personally detached my tradition holdings independently apart from the likes of any Government public servant partyline scoundrel .

Sat, 11/17/2012 - 11:33 | 2991549 LawsofPhysics
LawsofPhysics's picture

Just like the human population, all I see is an exponential plot.  Enough with the left/right bullshit.

Sat, 11/17/2012 - 12:04 | 2991604 ParkAveFlasher
ParkAveFlasher's picture

"Indexed to 1969"

Arbitrary!

I would prefer a log chart going back to the charter of the Fed Reserve, especially if the thesis involves gold vs usd.  We are not even at base camp 1 yet.

Sat, 11/17/2012 - 13:17 | 2991788 LawsofPhysics
LawsofPhysics's picture

Yes, let's see how this 100 year experiment in price stability is working out for 99% of the population.  Great point.

Sat, 11/17/2012 - 11:36 | 2991555 JustObserving
JustObserving's picture

As long as politicians dare not touch Medicare and Social Security, those liabilities will continue to increase by about $7 trillion a year.  The Fed will be on infinite QE to deal with debt and unfunded liabilities.

All this talk of the Fiscal Cliff is about $600 billion in reduced spending and increased taxes while US debt and unfunded liabilities rise by $8.3 trillion a year.  So the Fiscal Cliff addresses about 7% of the increase in debt and liabilities and the politicians cannot agree on that.

Bernanke will have to continually attack gold like his predecessor Greenspan who said:

"Central banks stand ready to lease gold in increasing quantities should the price rise."

  • Testimony Before the Committee on Banking and Financial Services, U.S. House of Representatives July 24, 1998
Sat, 11/17/2012 - 11:57 | 2991593 BurningFuld
BurningFuld's picture

Well, He's almost out of those Gold bullets and China is happy to accommodate the central banks gold release by buying it all up. The Shit hits the fan when China says they have 10,000 tons of gold and people lose faith in the USD for the Renminbi.

Sat, 11/17/2012 - 12:21 | 2991645 EINSILVERGUY
EINSILVERGUY's picture

I read in Jim Rickards "Currency wars" thats its as little as 4,000 tons and they can challenge the dollar for reserve status.  They were over 1,054  tons in 2009 now and probably closer to 2K today. At the rate they are mining and buying, they will probably have 4K within 5 years if not sooner.

Sat, 11/17/2012 - 12:58 | 2991687 cristo
cristo's picture

According to oilprice.com on their gold holdings by country widget ,

China is #2 behind the US with 131,561,483/oz of gold or 4027 metric tons of gold .

link :       http://oilprice.com/free-widgets

Widget Description: World Gold holding figures for various nations. Has production figures for 2011 and reserves. All figures are in ounces. (Adjusts every second).

Data Source: IMF (International Monetary Fund). Recalculated when new figures are released (Monthly).

for those who don't know oilprice.com .

info :    OilPrice.com is the fastest growing energy news site online. Our analysis focuses on Oil and Gas, Alternative Energy and Geopolitics. We have 3 in house writers and publish research from over 150 contributors.

OilPrice works with over 250 syndication partners who re-publish our analysis. Some of our partners are: Zerohedge, Business Insider, Forbes, 24/7 Wall St, Arab News, The Street, Rigzone, Mining.com, Mineweb, Minyanville, Stockhouse + many others...

 

Sat, 11/17/2012 - 13:08 | 2991735 Winston Churchill
Winston Churchill's picture

Very nearly ready. Just waiting on an up and running alternative to the SWIFT system.

Been in process since that unscheduled BRICS meeting in Mumbai in May.

The system  will probably be  ready in mid 2013.

Not so clever of the USA to use SWIFT as a weapon against Iran.

The Law of Unintended Consequences is a bitch.

Sat, 11/17/2012 - 13:24 | 2991803 LawsofPhysics
LawsofPhysics's picture

Bring it, but I seriously doubt China will allow any peg of thier currency to a fixed measure of gold.  It's a fiat world now and they need to be able to manipulate their currency in order to control the sheeple (as they have consistently done for thousands of years).  They are a communist/mercantile state, go ahead peg to an exchangable and fixed amount of gold, please.  Many of us hold lots of currencies, including theirs, please do it.  It would be awsome to know that a fixed amount of yuan (or any paper for that matter) would be exchangable for gold moving forward.  Bring it.

Sat, 11/17/2012 - 11:58 | 2991595 LMAOLORI
LMAOLORI's picture

 

 

 

The idea is already being floated that Gold is enemy friendly keep that in mind I could see obama coming for it after he goes after your 401k's. 

 

The Gold Standard is not Synonymous with Freedom

http://pragcap.com/the-gold-standard-is-not-synonymous-with-freedom

Yes I do have Gold though not alot I have more in silver just pointing this out .

 

Sat, 11/17/2012 - 13:30 | 2991820 LawsofPhysics
LawsofPhysics's picture

Good luck with that.  We have seen major superpowers go bankrupt and collapse before.  Look at what the Soviet Union went through.  The same thing will happen in the U.S., all the world's a stage and all you have to do is replace those actors (U.S./Russia) with China/U.S. and the relevant currencies (Dollar/Ruble) with the Yuan/Ruble.  Their will be secessions by resource rich or fiscally independent states (as there were with the Soviet collapse) and there will be multiple economies/currencies for the people and only one economy/currancies when dealing with any given state or government agency.

hedge accordingly.

Sat, 11/17/2012 - 11:42 | 2991561 XtraBullish
XtraBullish's picture

What about the Repubs and Dubya when the barbarous relic went from $300 to $1,000 per ounce? Last time the gold price tripled was under Carter a Democrat so the "Dem is good fer gold" is all bullshit. Central Bankers pull the puppet strings of the politicians and then the TREASURY DEPARTMENTS print the money. Politicians do NOT create inflation; BANKS do. End of Discussion.

Sat, 11/17/2012 - 11:55 | 2991589 Atomizer
Atomizer's picture

Emerging market local currency bonds: diversification and stability – BIS [Bank of International Settlements] Pg. 11

 

Just more of Central planning tossers throwing shit at the wall, and hoping it sticks!

 

Sat, 11/17/2012 - 12:30 | 2991666 EINSILVERGUY
EINSILVERGUY's picture

Bush was Democrat Light.  He and his father are nothing more than the country club republicans.  Medicare prescription D and compassionate conservatism was a bullshit smokescreen for more keynesian policies and then you have Greenspan priming the pump.  There is no difference in the parties. Obama is taking us over the cliff at 200mph, the republican establishment is doing it at 150.

Sat, 11/17/2012 - 13:52 | 2991860 Ident 7777 economy
Ident 7777 economy's picture

Neither one was a leader in the vein of -dare I say it- Reagan.

 

Sat, 11/17/2012 - 14:45 | 2991958 JKearney3153
JKearney3153's picture

August 15th, 1971. A day which will live in infamy

Sat, 11/17/2012 - 11:47 | 2991572 DowTheorist
DowTheorist's picture

While I'm fundamentally bullish long term for gold, I see that technically gold and silver are setting up for a primary bear market.

Currently, gold and silver are still in a primary bull market. However, if the Nov 2 lows (secondary reaction lows) are jointly violated by gold and silver, then a primary bear market would be signaled.

This is the vital chart to look at:

http://www.dowtheoryinvestment.com/2012/11/dow-theory-update-for-nov-12-...

If such lows are not violated and both precious metals continue higher, it would be a very bullish accomplishment.

 

 

Sat, 11/17/2012 - 12:31 | 2991669 Silver Garbage Man
Silver Garbage Man's picture

Every fucking market on this planet is rigged. This thing can blow any time. Do you really want to be staring at the charts with cash in your hand?

Sat, 11/17/2012 - 13:55 | 2991868 Jack Sheet
Jack Sheet's picture

The Dow theory, which was developed in the 20s and 30s, is useless in todays "markets". And so - meant politely-  is your "if ...jointly violated " statement.

Best proof is Richard Russell, who has been trying for 3 years to decide whether there is a bull or bear market in stocks, he rants on about the transports and industrials  like something out of a museum - incredible.

Sat, 11/17/2012 - 11:52 | 2991582 gould's fisker
gould&#039;s fisker's picture

On the other hand, maybe a stronger metals position isn't a bad idea--who gives a rat's ass who's president as long as they all seem to play the trendy card of weak borrowers, cooked numbers, to prop up an oversold market, and the bleed out continues:

Federal Housing Admin Red Ink may be $32.8B, double original estimate:

http://news.investors.com/111612-633865-fha-capital-deficit-may-top-auditors-16-billion-estimate.aspx?src=HPLNews&fromcampaign=1

Clever, just embalm Freddie and Fannie and casket it somewhere else.

Sat, 11/17/2012 - 11:58 | 2991591 Roark12
Roark12's picture

The Headline should read:  "Why Gold Bugs Should Cheer For Progressive Presidents"

Sat, 11/17/2012 - 12:01 | 2991598 Segestan
Segestan's picture

Democats will steal everything you think you'll make........... socialist.

Sat, 11/17/2012 - 16:14 | 2992111 orangegeek
orangegeek's picture

That's correct.

 

Sat, 11/17/2012 - 12:21 | 2991643 Silver Garbage Man
Silver Garbage Man's picture

By my calculation 10000 ton @ $2000 ounce is $643 billion. That is nothing when compared to hundreds of trillion in liabilities. If that doesn't tell you how undervalued gold is nothing will.

Sun, 11/18/2012 - 11:28 | 2991776 cristo
cristo's picture

According to oilprice.com on their gold holdings by country widget ,

China is #2 behind the US with 131,561,483/oz of gold or 4027 metric tons of gold .

link :       http://oilprice.com/free-widgets

Widget Description: World Gold holding figures for various nations. Has production figures for 2011 and reserves. All figures are in ounces. (Adjusts every second).info :   

Data Source: IMF (International Monetary Fund). Recalculated when new figures are released (Monthly).

OilPrice.com is the fastest growing energy news site online. Our analysis focuses on Oil and Gas, Alternative Energy and Geopolitics. We have 3 in house writers and publish research from over 150 contributors.

OilPrice works with over 250 syndication partners who re-publish our analysis. Some of our partners are: Zerohedge, Business Insider, Forbes, 24/7 Wall St, Arab News, The Street, Rigzone, Mining.com, Mineweb, Minyanville, Stockhouse + many others...

Sat, 11/17/2012 - 14:18 | 2991911 LoneStarHog
LoneStarHog's picture

Hey, Warren Buffett, if you pay ME $100,000 to have lunch with a Gold Bull (aka Gold Bug), I will ensure that you learn many things about what you "don't understand".  I will also ensure that you learn why what you "do understand" is underperforming that which you do "not understand". Understand?

Sat, 11/17/2012 - 15:51 | 2992089 orangegeek
orangegeek's picture

Nice fractal relationship between 1979 and today.  Nonetheless, for Gold in US Dollars to rise, the US Dollar will likely fall - meaning the Euro, Yen, Pound and C-Dollar (all four of which have recently topped) would have to rise.

 

Gold seems to be holding, down about 1% this week.  Gold stocks are plunging.

 

http://bullandbearmash.com/chart/gold-daily-marginally-gold-bugs-index-c...

 

A curious observation.

Sat, 11/17/2012 - 17:16 | 2992230 Quarky Gluon
Quarky Gluon's picture

If the title replaced 'gold bugs' with 'PM dealers' then I would tend to agree. We are yet to see what the value of holding gold in the long-term is. It is really hard to know what is up the sleeve of the central bankers. Is the chairman really even in charge of the operation or is he merely just another figurehead puppet to the ruling elite puppeteers? And if so, what are the plans of those puppeteers?

Sat, 12/01/2012 - 06:37 | 2992473 Supernova Born
Supernova Born's picture

Ever notice equity "buy and holders" abhor gold?

Like the beating heart in Poe's "The Tell-Tale Heart" which drove the protagonist mad with its perceived ever louder beating.

Gold in the home of a buy and holder whispers ever more loudly..."tard".

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