• Sprott Money
    04/29/2016 - 05:58
    There is unfortunately no basis for renewed optimism that this current litigation will have any meaningful impact on precious metals manipulation – with respect to either silver or gold.

Gold - It's Time

Tyler Durden's picture




 

Authored by Lee Quaintance and Paul Brodsky of QBAMCO,

Gold bugs can’t understand how the public can be so unaware, how highly intelligent policy makers can be so immoral, and how the mainstream media can be so incurious. We can’t understand why more men and women in the investment business haven’t joined some of the more successful ones that have come around to precious metals and have taken substantial positions in them for their funds and personal accounts. The list of high profile independent-minded investors that have come out of the proverbial closet is impressive and growing: Kyle Bass, John Paulson, David Einhorn, George Soros, Bill Gross and Paul Singer, to name only a few.

Conventional financial asset selection guidelines for professional investors are becoming increasingly uneconomic and problematic. Current macroeconomic conditions leave little doubt as to why. A zero-bound rate structure across developed economies, heavy monetary policy intervention, guaranteed negative real returns of benchmark financial assets and cash, impossible discount cash flow models,cacophonous (and economically meaningless) fiscal political wrangling diverting attention from legitimate budget arithmetic ($800 billion over ten years when we’re running $1 trillion-plus annual deficits?), dubious short and intermediate-term prospects in already-emerged emerging economies, and non-trending financial markets, all suggest something has changed.

Regardless of whether one is investing personally or as a fiduciary, conventional financial asset allocation models and procedures are obviously failing and the reason is simple: the currencies in which financial assets are denominated are gravely flawed – levered beyond reconciliation and incapable of generating positive real returns for assets denominated in them, or ongoing consumer and business confidence while the leverage is being transferred from banks to central banks, and from central banks to government balance sheets. The political/policy dimension is boxed. We think prudence demands stepping away from conventional financial asset allocation models.

Here is what matters...

Qbamco - It's Time

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 12/12/2012 - 21:53 | 3058084 eddiebe
eddiebe's picture

Sure the time for Gold is now, as it has always been, but unlike ever before the central banks of developed countries are in a death struggle to keep gold from becoming money. Including China and India. They all love fiat.

Be aware whom you are taking on here. They will never loose. The only hope we gold bugs have is for the banksters to decide that revaluing gold is now in their best interest and to make it part of money in some form again. The chances of that happening are good in my opinion, but it could be a long wait.

Thu, 12/13/2012 - 00:00 | 3058359 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

Be aware whom you are taking on here. They will never loose.

 

 

 

Fiat Currency: Using the Past to See into the Future

The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.

 

 

http://dailyreckoning.com/fiat-currency/#ixzz2EuAKBmoc
Wed, 12/12/2012 - 22:04 | 3058112 Mike in GA
Mike in GA's picture

Keep the faith, people.  It's only 1% +/-. 

Everyone paying attention knows the world's central bankers are printing furiously.  The jig is up for fiat when public trust reaches a saturation point of utter disgust of 'cash'. 

THAT is when your gold will shine the brightest. It's coming, keep stacking.

Wed, 12/12/2012 - 22:24 | 3058160 AllWorkedUp
AllWorkedUp's picture

I've been holding for 9 years and it's always "just around the corner". The public has absolutely no clue and never will until the USD loses its' reserve status. By then it will be too late.

They are doing tonite what they always do. Dump a bunch of contracts in thinly traded markets, run the stops that the idiots who still play the paper game put into place, and then use the drubbing to cover their shorts. Wash, rinse, repeat. This is the most aggravating bull market in history. We've gone nowhere for 15 months. Unbelieveable.

Thu, 12/13/2012 - 02:20 | 3058547 FreeMktFisherMN
FreeMktFisherMN's picture

You're right as far as gold prices not moving that 'we've gone nowhere.' But think about all the inflation it has taken and concerted efforts of paper SLV, etc. shorting just to keep this facade of 'normalcy.' It won't/can't last. These central banks cannot print purchasing power/supply. They can obfuscate and make investors think there is a pool of savings there when there really isn't for awhile, but I contend that the number of moles that have to be whacked just to keep the game going has to be going up and will be difficult to keep knocking down. 

Thu, 12/13/2012 - 02:31 | 3058557 AgShaman
AgShaman's picture

I call it a "gift"

Thu, 12/13/2012 - 16:36 | 3060715 AE911Truth
AE911Truth's picture

The scam ends when the we stop using the COMEX price. Set the price yourself.

All that silver I lost in that boating accident last year, that was worth USD $300/Toz. I won't even bother to go back to the lake to look for it until Silver is $450/Toz.

 

Wed, 12/12/2012 - 22:10 | 3058126 Dr. Gonzo
Dr. Gonzo's picture

Gold and silver getting sold now because of QE4? Whatever. I don't care. I just buy it every month and I'm still happy that I can buy. The more I have the happier I am. I don't love currency. I love coins... and my collection is a work in progress. I'm going to be completely honest with you guys. I don't buy silver to make profit in Fed notes. I buy it becuase I love it and I'm addicted to it. Most people have porn or gambling or shopping addictions. I'm addicted to silver and gold. 

Wed, 12/12/2012 - 22:17 | 3058137 Bohm Squad
Bohm Squad's picture

+1

 

I'm a silver addict, too (as the crowd says "Hi Bohm")...The first step in embracing it is admitting it!

Wed, 12/12/2012 - 22:50 | 3058219 Pareto
Pareto's picture

Its true.  Fuck. Its a total addiction!!  But its awesome! lol  And every time i leave the store, i think "shit....should have bought more."  Its like, for once, this is something I don't care if I am buying at the top.  And if prices cave, I'll buy more.  This is the only environment where BUY AND HOLD means anything to me. Well, that and a 1/4 section.

Thu, 12/13/2012 - 01:56 | 3058531 Miffed Microbio...
Miffed Microbiologist's picture

Dt Gonzo, +1!

Gold is heroin to me too, I'm a total addict. The other day I was curled up on the couch having a bad day and my husband comes up to me and says " hold out your hand" in it he drops a Maple leaf. He walks a way and I hold it for a while. I can practically feel it hum in my hand, a shiny orgasm in my palm. Frankly I'm not sure why. Maybe because in a shadow world like today it represents reality, an anchor. When you have the bug you've got it and others so infected can understand. The rest of the world calls you crazy. They rather you buy shit on endless credit at Walmart.

Miffed:-)

Wed, 12/12/2012 - 22:27 | 3058169 Catflappo
Catflappo's picture

Dated December 2013?

I am hoping the 'public' aren't quite so unaware in a year's time....

Wed, 12/12/2012 - 22:31 | 3058174 americanspirit
americanspirit's picture

The central premise of this article is right on target - the most likely manipulators of the PM markets are the Chinese who play a long-term strategic game and who know - KNOW - that us US dollars they have been forced to own are worthless, as are all paper currencies, and they also know - KNOW - that the more of the world's gold and silver they control in 10-20 years the more certain it is that they will own our worthless asses. Don't think for a minute they don't have their eye on all that rich farmland in the US that we are letting go to waste while planting ethanol corn instead of food. The Chinese understand that the game our rich 1% are playing is short term and ultimately a total loser - and they will be around to pick up all the pieces - with plenty of us as slave labor - for micrograms on the dollar. Can't happen? If you are into historical precedents just think "Louisiana Purchase" and "Alaska". Think our country can't be sold to the Chinese? Piece by piece. Think again. Mark my words. And be sure not to leave any indication that you are educated or have a mind - those are the ones who will be shot first. What they will want are simple slaves, nothing more.

Wed, 12/12/2012 - 22:36 | 3058182 IridiumRebel
IridiumRebel's picture

Spot on

 

+10000000000

Thu, 12/13/2012 - 18:29 | 3061029 smiler03
smiler03's picture

This is completely new to me. The Chinese are doing it? I thought it was Goldman? Or are they all at it?

Whoever it is, it's bloody confusing. I find the simultaneous Ag/Au knockdown today at 1pm EST quite laughable. Because of tax and income constraints I can only play with ETFs so downvote me now. However I have a very itchy trigger finger on the buy button.  However when I do buy I'll have an equally itchy trigger finger on the sell button.

Please don't advise me to buy physical. I could probably manage 2oz of silver per year but in the right circumstances make that in profit easily in 24 hours on ETFs. Yeah yeah, i'll be corzined and lose it all in a second. Shit happens ;O)

This is the Google chrome App I use to keep an eye on the spot market:

https://chrome.google.com/webstore/detail/gold-silver-price/fkgjfjogmipi...

 

edit: @americanspirit, the Chinese certainly seem to be THE masters of buying up cheap global commodities.

Thu, 12/13/2012 - 18:41 | 3061050 akak
akak's picture

 

edit: @americanspirit, the Chinese certainly seem to be THE masters of buying up cheap global commodities.

Otherwise known as "blobbing-up".

It's the mattering thing.

Wed, 12/12/2012 - 22:48 | 3058215 MsCreant
MsCreant's picture

You give them too much credit, friend. They are no more in "control" than the Bernanke. Everyone is a playa, everyone one comes to the table and has game. Some gamers have way much power yes, and you may even be on to the plans that some of them may have, but the out come of this mess is not going to be something that we are going to see/predict easily. History will rhyme, but not repeat. IMHO.

Thu, 12/13/2012 - 00:17 | 3058390 Freddie
Freddie's picture

Sadly +1

The Chinese may end up with the West Coast of the United States.  Maybe Hawaii too.  They have a lot of Western Canada.  The Russians might get Alaska.

The U.S. is being given to China by Barry Chin.  See Lame Cherry for who he is.

Wed, 12/12/2012 - 22:35 | 3058181 Tombstone
Tombstone's picture

So I cash in an ounce of gold for $50,000 and then go out and buy some Chinese made twinkies?  Or will a gold bar buy me a box of twinkies because paper money will be worthless?

Wed, 12/12/2012 - 23:14 | 3058273 MeelionDollerBogus
MeelionDollerBogus's picture

holy crap

Zombieland - Where´s my twinkies! - YouTube

zombie apocalypse movies do predict the future - THE TWINKIES ARE ALL GONE!

Wed, 12/12/2012 - 22:41 | 3058192 ZeroAvatar
ZeroAvatar's picture

" to create balance for the launch of a modified (bullion-backed)SDR, which would be the new global reserve currency"...

 Man, I keep hearing more and more about the 'new global reserve currency. 

 

We are so fucked.

 

(I like where he says now's a chance to "do well by doing good".  Someone actually cares about the little guy?   NAAAAAAAAAWWW!

Wed, 12/12/2012 - 22:48 | 3058214 loveyajimbo
loveyajimbo's picture

Might want to tune into Ed Steer's newsletter... like here, great info... like many hardcore "goldbugs" (which is really just a catch phrase for people smart enough to know our debt is unpayable, our political and financial systems are hopelessly corrupt and over half of the voters are parasites or morons or both) I too am frustrated about the price of PM's dropping... draw a line... if what you KNOW is true, then hold onto your gold... if you have doubts, buy T-Bonds at 1% for 10 years and pray they will not be worthless in 3 years.  The crash has been averted for WAY too long... and could be longer.  But it HAS to happen... how much longer will ANYONE buy worthless USA paper?

Wed, 12/12/2012 - 22:52 | 3058226 thorgodofthunder
thorgodofthunder's picture

Gold is for:

 

1.  Hedge fund managers who devised a way to make 2% on tens of billions for sitting on 1 trade and laughing hysterically at the legion of idiots who trust them

2.  Anyone who can't afford prime manhattan or income producing beachfront property (the TRUE inflation hedge)

3.  The foodstampers who frequent this loserville website proclaiming an end to currencies

So while you uesless twits have been wobbling and wailing about your worthless nuggets over the past year earning a whopping -3% return, I am making 3% a week buying forclosed houses at auction and selling them 2 months later using nothing but my braun & my hussle and a few bucks that I saved up after cashing in my mortgage free house in 2006.  My 'strategy' takes effort, hard work & getting up at 6am 6 days a week.  Yours takes a fcuking coin toss and the click of a mouse on your etrade account.  You're betting on black every spin with the 49% odds.  Who do you think is going to make more money?

The meek shall indeed inherit the earth.

 

Wed, 12/12/2012 - 23:03 | 3058248 moonstears
moonstears's picture

Gold, Bitch, don't be hatin', Thor.

Wed, 12/12/2012 - 23:11 | 3058268 MeelionDollerBogus
MeelionDollerBogus's picture

judging one down year does not make you a good analyst. Here's the real 1 year pattern of returns, up close & personal:

goldpricemodel 2013 roc 52-week

here's the same pattern since 1980

gold 52 week ROC 1980 to 2011

That's a lot of high returns year-over-year. Learn the pattern & you can buy on dips, sell a little on peaks, hold the rest for insurance. Rolling forward this pattern yields:

goldpricemodel 2013 projection

Wed, 12/12/2012 - 23:25 | 3058283 akak
akak's picture

 

The meek shall indeed inherit the earth.

But only idiots and the weak in mind shall inherent the anti-gold propaganda of central banksters.

 

By the way, when did Thor become the god of asswipes?

Wed, 12/12/2012 - 23:18 | 3058284 Angus McHugepenis
Angus McHugepenis's picture

Hmmm... I wonder how your stategy worked out for people who did similar things prior to 06/07? I've seen bidding wars on former grow-op houses that were scheduled to be bulldozed in the frenzy of 06. Idiots were paying $500k+ and had to suck up the demo costs as well.

You talk about odds... How many people worldwide have lost their life savings on real estate since 05/07? How many BANKS had to be bailed out due to real estate/mortgages?

Thu, 12/13/2012 - 11:02 | 3059217 thorgodofthunder
thorgodofthunder's picture

Angus- in 06 and 07 (actually 03 to 06) people were buying a HOPING their mortgaged to the max investment would jump 10% in a year.  I am buying today with 100% cash for $100k, adding $20k and selling to people for $140k.  it's a business.  It keeps me up at night but I'm banking coin as opposed to flipping coins like most of you idiots.

I don't trust politicians, bankers or real estate agents any more than you do.  I am just waking up to today's realty and not sitting in a shed in the forest hoping that society will crumble.  And it won't. 

Gold is obscelete in the digital age now btw.  Swiss francs or other stable currencies are there for you to purchase with a mouse click.  Gold is done except for the shine.  Figure it out dreamers.  And honestly, good luck :)

Wed, 12/12/2012 - 23:34 | 3058311 IridiumRebel
IridiumRebel's picture

Dude you are so kickass! You make me wanna turn fag, sell my gold and suck your 3 inch penis for dinner tonight. So you flip piece of shit houses by buying them and making them barely legal only for the new owners to figure out a year later there is fuckin mold and chink dry wall silently poisoning the inhabitatants children. I hope you get fuckin rectal cancer. From all of us to you and your shit peddlers GO FUCKING FUCK YOURSELF YOU FUCKING FUCKASS PIECE OF SHIT.

/> Too subtle?

Wed, 12/12/2012 - 23:38 | 3058323 akak
akak's picture

Now THAT is Fight Club!

+1

Wed, 12/12/2012 - 23:41 | 3058328 IridiumRebel
IridiumRebel's picture

Come at me bro!!!

Wed, 12/12/2012 - 23:58 | 3058356 Angus McHugepenis
Angus McHugepenis's picture

We're all comin at ya with +1's. I think MDB and RobotTrader are in for a +1 on your behalf.

Thu, 12/13/2012 - 00:08 | 3058377 IridiumRebel
IridiumRebel's picture

I've only been here since the summer, but I feel like I have finally arrived and earned my spot at the table.

Thu, 12/13/2012 - 01:25 | 3058498 Angus McHugepenis
Angus McHugepenis's picture

Wherever you go, just tell them McHugepenis sent you. And no flopping your pecker on the table while we're eating.

Looking forward to more of your rants as you destroyed a fucktard RE agent above.

Splendid! (said with British accent).

Thu, 12/13/2012 - 01:31 | 3058500 IridiumRebel
IridiumRebel's picture

Hey! McHugepenis sent me SO BACK OFF!

Thu, 12/13/2012 - 18:52 | 3061076 smiler03
smiler03's picture

So this is the +23 comment from the country that "invented" initiative...

 

"So you flip piece of shit houses by buying them and making them barely legal only for the new owners to figure out a year later there is fuckin mold and chink dry wall silently poisoning the inhabitatants children."

I'm amazed it wasn't from akak (anagram of KAKA, hebrew slang for "shit") as he is normally the twat who can't argue so simply reverts to character assassination. 

Bravo ZH readers, lead the way, condemn a man who works hard and makes an honest buck, shocking! Instead why not winge, moan and whine about the gold price? 

Wed, 12/12/2012 - 23:54 | 3058350 Angus McHugepenis
Angus McHugepenis's picture

Now that was a RANT! Good job! I'm gonna go punch a real estate agent.

Thu, 12/13/2012 - 18:55 | 3061079 smiler03
smiler03's picture

Pathetic. With a British accent. And you get a +9, fucking christian brotherhood.

Thu, 12/13/2012 - 01:02 | 3058466 hawk nation
hawk nation's picture

i am going to keep my eye on you you have potential

Thu, 12/13/2012 - 01:19 | 3058493 AgShaman
AgShaman's picture

"I expect you to die"

via lazerbeam....

http://www.youtube.com/watch?v=U1TmeBd9338

Thu, 12/13/2012 - 08:44 | 3058762 Sandy15
Sandy15's picture

Bought my gold at 1100 per ounce now it is at 1700 per ounce........  as long as the printing press Bernack is creating more fake dollars, my gold will continue to go up......... 

next bubble will be the falsely inflated houses you'll be stuck with when the burst happens......... make it while you can, because your worthless cash your busting your butt for will buy you nothing when the SHTF!  In the mean time, I'm using those worthless dollars to by gold, food, guns and ammo.

Wed, 12/12/2012 - 23:02 | 3058243 billsbest
billsbest's picture

It should be reason enough to buy some gold when you see a central bank withhold details on even if it has it!!

The Deutsche Bundesbank and its Gold: To trade or not to trade?

 

Thu, 12/13/2012 - 18:59 | 3061087 smiler03
smiler03's picture

Intrade. When your government makes it legal again.

Wed, 12/12/2012 - 23:15 | 3058267 moonstears
moonstears's picture

Gold haters abound tonight! Fuck gold, glad I bought AAPL (2 mos ago), uh, FB(6 mos ago), uh, I mean NFLX(few mos ago)...nevermind. Silver?

Thu, 12/13/2012 - 19:03 | 3061096 smiler03
smiler03's picture

+1 Are you MDBs investment advisor? Ooops, I meant Robo.

Wed, 12/12/2012 - 23:16 | 3058281 Al Huxley
Al Huxley's picture

Drop the paper market in Asia and try to get them to part with some of theirs, since Asia's been fucking the bullion banks out of physical every time the BBs fleece the hedgies in the paper markets in US market hours.  But I don't think you can fool the guys who invented the 'sell paper and buy physical' game into fucking things up and selling the physical back - totally different motivation at play.  Nice try though, fuckhead paper traders.

Wed, 12/12/2012 - 23:25 | 3058298 flyonmywall
flyonmywall's picture

I'm going to have to agree with SilverRhino.

Not only is gold the most conductive metal known, but it's also one of the most inert, as it does not react with oxygen or just about anything else. The only thing that can dissolve it is Aqua Regia  ( a mixture of hydrochloric and sulfuric acid). When you positively have to have a working nuclear trigger, only gold contacts work for that.

It is also quite dense and makes quite good radiation shielding. They used it to shield the lunar landers. A thin layer of gold foil will protect you against fast moving neutrons, as they are likely to be deflected.

Who would not pay a premium for that?

 

Wed, 12/12/2012 - 23:41 | 3058309 akak
akak's picture

Actually, silver is the most heat and electrically conductive metallic element, followed by copper and then by gold, although the differences between them in that regard are rather small compared to most other metals.

Thu, 12/13/2012 - 02:04 | 3058536 SilverRhino
SilverRhino's picture

You are correct about silver being more conductive however, copper and silver both tarnish in the presence of oxygen. Gold, PGMs and a fewother elements however will never undergo a slow combustion (rust is an exothermic reaction) .... which is one reason gold is prized in circuitry. No oxidation means no loss of current ... ever.

Do NOT follow this link or you will be banned from the site!