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10 Things You Didn't Know About Gold

Tyler Durden's picture





 

With gold and silver down this morning - following a mysterious vertical plunge last night (once again) - we thought ConvergEx's Nick Colas' timely discussion of gold was worthwhile. As he notes, Gold is the ultimate personality test for investors.  Some hate it, excoriating its adherents for their lack of faith in human ingenuity – gold has been valuable since before humans could write. And some swear by the yellow metal, in the belief that it is the last vestige of rationality in a world of financial assets manipulated by central banks and opaque trading venues.  What gets lost in the wash is that gold is a commodity and can be analyzed as such. On that basis, here is the 'Top 10' list of real-world fundamentals for gold.

 

Via Nick Colas and Sarah Millar of ConvergEx,

If you haven’t caught onto the show already, I highly suggest sitting down one night for the National Geographic Channel’s “Doomsday Preppers”. A documentary-style reality TV series shot right here in the US of A, Doomsday Preppers just began its second season following a variety of survivalists preparing for the end of civilization as they know it. From Chris Nyerges in California who prepares to live in the jungle after a massive earthquake to Bruce Beach, who runs drills to prepare his family for nuclear warfare, the show can be quite a hoot. To touch a little closer to home, consider Season One’s Pat Brabble and Doug Huffman: the first, a religious Southern gentleman, believes the world is on the brink of hyperinflation. To prepare, he stocks a room with guns, ammo, and alcohol; not to use, mind you, but to sell. Huffman, on the other hand, has dug holes into the Sierra Nevada Mountains in anticipation of a second Great Depression – he’s stashed away the essentials for survival should the US break into chaos.

My personal favorite “Doomsday Prepper”, though, has yet to appear on the showthe apocalyptic gold buyer. It seems everyone knows one of these guys/gals nowadays, what with the lurking fiscal cliff and continuing worries of an economic slowdown. They warn of inflation, tightening gold supply and growing demand, political risk, you name it. Their solution? Buy gold. Buy as much as you can. Even at $1,700/oz., they say, it’s a bargain when you consider the insurance it provides you.

While I have to agree that gold will be a valuable asset to hold in 2013, I find it hard to sympathize the “end of the world as we know it” logic that drives some to buy. I am not a believer in the world-is-coming-to-an-end mentality, fiscal cliff and Mayan apocalypse or not. And based on the facts we’ve found listed below, it looks like some of the more ominous warnings from the fearful gold buyers are reminiscent of those characters from NGC’s show. Better to know the facts before you buy. So without further ado, we present our “10 Things You (Probably) Didn’t Know About Gold”. These interesting data points come from a variety of sources, including the World Gold Council, bullion firms, the US Geological Society, and mises.org.

1.  India is the largest consumer of gold in the world, but Greater China (including China, Hong Kong, and Taiwan) is slowly creeping up on the long-time leader. In Q3 of 2012, according to the World Gold Council, India’s consumer demand was 223.1 tons, while Greater China reached 185.1. This now 38 ton gap (fueled largely by greater jewelry demand in Greater China) has narrowed 71% since Q3 of 1997. For Q3 2012, India represented 30% of global consumer demand, while Greater China was 25%. Hong Kong is home to the highest gold consumption per capita in the world: with total consumer demand of 6.4 tons in just the third quarter, there are about 0.03 ounces (or, at today’s prices, about $50 in gold) for each person in the SAR.  

 

Bottom Line: Gold is, at least partially, an emerging markets play.

 

2.  On the production side, South Africa has been ousted as the once gold-mine capital of the world: now China and Australia are the leaders on that front, having produced 335 and 270 tons in Q3 2012, respectively. Interestingly, though, China is still a net importer. However, the singular most productive gold mine in the world wasn’t even in either of those countries: it’s the Grasberg Gold Mine in Papua, which produced more than 63 tons (2 million ounces) in 2011. Uzbekistan holds the next largest, Maruntau Gold Mine, which pushed out 56.3 tons (1.8 million ounces).

 

Bottom line: Gold is one of those rare products that China actually imports.

 

3.  The IMF has the third largest gold reserves in the world, with 2,814.1 tons. That’s more than India (557.7), the Netherlands (612.5), Japan (765.2), China (1,054.1), and France (2,435.4). If the SPDR GLD ETF was including in the count, it would come fifth in the world with 1,289.8 tons. As many might know, the US has the highest total gold reserves both absolutely (8,333.3 tons) and as a percentage of total foreign reserves (75.4%). 25% of the world’s gold is also located right here in the US at the Federal Reserve Bank of New York – 540,000 gold bars – though most of it belongs to foreign governments.

 

Bottom line: Even central banks still see the value in having stores of gold.

 

4.  Though jewelry has traditionally been the more popular end use of consumer demand for gold, making up 78.5% of the total in 2002, in Q3 2012 jewelry made up 59.9% while investment (coins, bars) accounted for the other 40.1%. Though the increase in investment demand seems to lend fuel to the argument that consumers are becoming more interested in gold to shore-up against some kind of disaster, the US in fact still favors jewelry as its end-use for gold: 30.8 tons of US gold demand was for jewelry (75% of the total), while only 10.5 tons were in investment. India, China, and the Middle East also still see the majority of demand in jewelry.

 

European consumers, on the other hand, are buying up coins and bars almost exclusively. According to the World Gold Council, 91% of European demand in Q3 2012 went to physical investment vehicles. Given the uncertainty surrounding the survival of the euro currency, this rush into investment makes sense. As long as the USD is on solid ground, though, I wouldn’t expect US consumers to dive into gold just yet.

 

Bottom line: Gold is still the Bling King.

 

5.  That said, ETFs are actually the fasting growing market for gold demand, up 56% over the four quarters ending in Q3 2012. As the general appetite for ETFs continues to ripen, this isn’t particularly shocking. But coupled with the fact that total investment demand fell -10.3% over the same period, it looks like investors are more interested in purchasing market vehicles similar to gold rather than physical gold itself.

 

Bottom line: Gold fans tend to bad mouth “Paper gold.”  They shouldn’t – demand here helps the overall investment story for the yellow metal.

 

6.  For those worried about diminishing resources, here’s some relief: according to the WGC, a total of 171,300 tons has been extracted from the earth since mining began, with about 60% of that being done since 1950. The US Geological Society estimates that about 51,000 are still underground, with the WGC reporting that about 730 tons are mined each year. Other estimates put the number at something like 86 million tons still to be tapped. Worst comes to worst, the National Ocean Service reports that there is nearly 20 million tons of gold in the ocean. And the data from the NEAR spacecraft sent in 1999 reports that the amount of gold on the asteroid “Eros” is more than has ever been mined on Earth. Unfortunately, until we find ways to economically extract it from the ocean (or from space), those reserves will remain untapped.

 

Bottom line: More gold supply is critical to keeping its status as the ultimate story of value.  Absent the discovery of legitimate alchemy, gold supplies will remain tight until we lasso that asteroid.

 

7.  Gold has always held governments to account. In CE 211, Roman Emperor Augustus pinned the gold coin (the “aureus”) at 45 coins to a pound of gold (that makes one aureus worth about $500 in today’s prices). In 312, Emperor Constantine revised that figure to 72 to the pound: 60% deflation in just over 100 years. Granted, the current century’s monetary inflation is a bit more shocking: from $18.92 in 1911 to over $1,700 in 2012, the price of gold has inflated more than 9,000%.

 

Bottom line: With that kind of track record, gold remains a valuable hedge against government-sponsored inflation.

 

8.  The Dow/Gold ratio (how much gold it would take to buy one share of the Dow Jones Industrial Average) has typically been a good indicator of how bad a given recession might be: when the ratio drops below 1 or 2, things are probably pretty bad. This happened in both 1980 and 2009, but today the ratio sits at 7.6. Admittedly, it’s on a downward trend – but things aren’t looking “apocalyptic” quite yet.

 

Bottom line: Gold is that rare investment product which is historically uncorrelated to financial assets.

 

9.  Almost 40% of total world gold supply is recycled gold in any given quarter in 2012; it was 38.8% in Q3. Recycled gold, which includes melted-down jewelry, bars, coins, and even dental implants, has become a greater part of world supply, even as “new” gold on the market (from mining) has increased year over year. That’s a relatively good sign as well: investors are willing to liquidate their gold (literally) at today’s prices, providing incremental supply and limiting the chance of a “Bubble.”

 

Bottom line: Every piece of gold jewelry, ever coin, every ingot ever produced still has value.  Can you say the same thing about stocks or bonds?  No.

 

10.  If all the gold in the world was given to the US and sold at today’s prices, it would be worth about $10 trillion dollars – and that still wouldn’t be enough to pay off our public debt. In fact, the $10 trillion would only cover 60% of the almost $16.5 trillion we owe. Probably better to just keep the dollar going.

 

Bottom line:  Any chatter about a new “Gold standard” is likely premature.

 

All in all the case for gold in 2013 looks pretty bullish, whether you’re buying for high returns or in preparation for Armageddon. A historical upward trend and increasing demand for the precious metal makes a good case for buying, though I wouldn’t be worried about resource scarcity and the replacement of national currency just yet. For those of you that still aren’t convinced, I can suggest only two things: move to Europe, where you’ll find many like-minded investors, or sign up for an audition for “Doomsday Preppers”

 


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Thu, 12/13/2012 - 11:04 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Truth is always treason in the empire of lies -  same as it ever was.  None of this is just about gold, it's about having the value of your labor stolen.  Any physical asset or commodity of real value should not be subject to manipulation by a well-connected few, period.

Thu, 12/13/2012 - 11:04 | Link to Comment Atlasshruggedme
Thu, 12/13/2012 - 11:07 | Link to Comment LawsofPhysics
LawsofPhysics's picture

will be interesting to see what catches a bid today, that 30-year auction, or commodities.  The currency wars are really starting to heat up.

Thu, 12/13/2012 - 11:11 | Link to Comment francis_sawyer
francis_sawyer's picture

11. It's actually made out of Tungsten...

12. Elementally ~ it comes from supernova explosions, yet has less value than paper joobux printed out of thin air...

Thu, 12/13/2012 - 11:16 | Link to Comment Stackers
Stackers's picture

though I wouldn’t be worried about resource scarcity and the replacement of national currency just yet.

 

"Yet" being the key word in that sentence. and when it is time to worry, it will be too late to act.

Thu, 12/13/2012 - 11:43 | Link to Comment BaBaBouy
BaBaBouy's picture

#11 WARREN Is Secretly buying Up All The GOLD In The Whirld ...

 

He Wants to Be Burried In A GOLD Pyramid...

 

GOLD $50K ... Bitchies ...

Thu, 12/13/2012 - 12:02 | Link to Comment economics9698
economics9698's picture

"25% of the world’s gold is also located right here in the US at the Federal Reserve Bank of New York – 540,000 gold bars – though most of it belongs to foreign governments."

Let me guess, when the SHTF there will be a riot and security at the NY Fed will be overrun and the gold will magically disappear.

Fucking squids are so predictable. 

 

Thu, 12/13/2012 - 12:18 | Link to Comment SafelyGraze
SafelyGraze's picture

"IMF has the third largest gold reserves in the world, "

it depends upon what the meaning of the word "has" has.

he said it better http://www.youtube.com/watch?v=j4XT-l-_3y0

Thu, 12/13/2012 - 13:46 | Link to Comment BLOTTO
BLOTTO's picture

What happens when they queue in an X-factor event and wipe out some of us good people...say 500,000,000 of us on the planet?

.

Does that do anything to all these outstanding debts out there?

Sorry if sounds silly, but, if their is 8-10% less people on the planet - wouldnt those debts be wiped off...no people; no debt? I realize its more on the national level involving countries, but still...

I cant pay/contribute if i dont exist

.

 

Thu, 12/13/2012 - 14:21 | Link to Comment boogerbently
boogerbently's picture

Logic Fail

No people, no consumers.

Thu, 12/13/2012 - 14:25 | Link to Comment LawsofPhysics
LawsofPhysics's picture

...but plenty of room for GROWTH, which is what the current economic paradigm requires.

Thu, 12/13/2012 - 15:19 | Link to Comment BLOTTO
BLOTTO's picture

But Boogy...

.

Aint most of the consumers -costing us more then they are contributing?

Useless Zombies with no money? They are broke and in debt.

 

Thu, 12/13/2012 - 18:09 | Link to Comment boogerbently
boogerbently's picture

AHHHH,

I AM in favor of a "selective" wipeout, but that would be racist.

Thu, 12/13/2012 - 20:00 | Link to Comment smiler03
smiler03's picture

Number 11.

 

Gold bugs save money by having intercourse with their stashes instead of women. Specially Crafted gold bars and lots of lube recommended. 

Thu, 12/13/2012 - 13:58 | Link to Comment FEDbuster
FEDbuster's picture

Wait until the stats on silver become widely known.  Ted Butler has done a great job researching the silver secrets.  Plus, for barter in a post SHTF world, silver coinage can't be beat for recognition and denominations.

Thu, 12/13/2012 - 14:27 | Link to Comment Bullionaire
Bullionaire's picture

+1

Hey Tylers, tell this guy to stick to picking up eagles in front of steamrollers, and leave the heavy lifting to guys like Brodsky and Rickards.

 

How embarrassing. Cue comment shitstorm.

Thu, 12/13/2012 - 11:24 | Link to Comment smlbizman
smlbizman's picture

regular eagles and maple leafs on ebay....are you ready ....50.00+ ..i know..and i always include shipping...the more normal price today is 40+ for coins...40. for bars..

Thu, 12/13/2012 - 11:22 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Buying Gold is like buying a piece of property, one shovel full at a time.

Buying GLD is like buying really expensive little pieces of pape that aren't worth more than a piece of paper.

Buy Gold when the GLD is low, sell Gold when the GLD is high.

Thu, 12/13/2012 - 11:38 | Link to Comment Pegasus Muse
Pegasus Muse's picture

This revelation has to be worrying the Market Rigging Scumbags, as evidenced by the Hit Job they put on gold and silver last night. 

Audio Interview:  http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/12/13_Chris_Powell.html  

================

 

December 12, 2012

 Holy Grail” Gold Evidence Panics Western Central Banks 

Today King World News wanted to discuss what has been termed as the ‘Holy Grail’ of evidence which implicates Western central banks in actively manipulating the gold market. This has Western central banks deeply troubled because the information was never supposed to become public. Chris Powell, who has been focused on uncovering this type of sensitive information for 15 years, told KWN, “This is as authoritative (an admission) as we are likely ever going to get that central banks are actively involved, in secret, in the gold market.”

 

Here is what Powell had to say: “Eric, this is a report written to the executive board of the International Monetary Fund from March 1999 about the efforts of the IMF staff to improve accountability in world central bank accounting. The report explains how the IMF staff proposed to require central banks to distinguish their gold loans and gold swaps from their gold reserves so the world could see exactly how Western central bank gold reserves were disposed.

 

The report goes on to explain that when the central banks saw that accountability would be demanded of them for their gold loans and swaps, they panicked. The report says that the central banks surveyed by the IMF staff objected to this precise accounting of their gold reserves.

 

They said disclosure of gold loans and swaps would be what they called, “Highly market-sensitive” and disclosure would interfere with their secret interventions in the currency markets. This is an admission.... 

Continued here: 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/12_Holy_Grail_Gold_Evidence_Panics_Western_Central_Banks.html

 

 

Thu, 12/13/2012 - 14:22 | Link to Comment Bullionaire
Bullionaire's picture

Sell gold?  WTF?

Thu, 12/13/2012 - 13:02 | Link to Comment Arcturus
Arcturus's picture

#13 - Basel lll has raised godl from a tier 3 to tier 1 asset. Same as cash and bonds lifting it from 50% of to 100% value as a reserve.

Thu, 12/13/2012 - 13:04 | Link to Comment Arcturus
Arcturus's picture

#13 - Basel lll has raised gold from a tier 3 to tier 1 asset. Same as cash and bonds lifting it from 50% of to 100% value as a reserve.

Thu, 12/13/2012 - 11:55 | Link to Comment e_goldstein
e_goldstein's picture

That's a sick fucking chart. Thanks.

 

Thu, 12/13/2012 - 20:45 | Link to Comment Dealer
Dealer's picture

Thats the sickest fucking chart I've ever seen in my life.  

 

Thu, 12/13/2012 - 20:40 | Link to Comment Dealer
Dealer's picture

This chart has to be a joke.  If its real, this is very sad.

Thu, 12/13/2012 - 11:13 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Of course there are no 'doomsday preppers' that have gold or have appeared on a stupid tv show...

It's a well known fact that all gold hoarders are severely challenged seamen. They are constantly putting asea only to have tragedies befall their voyages. Consequently, no gold hoarders exist in the Western world... all my gold are Eastern owned or at bottom of body of water. 

Cassandra has it in for PM owners, imo.

 

Thu, 12/13/2012 - 11:31 | Link to Comment francis_sawyer
francis_sawyer's picture

Even the FISH have no respect for gold... You lose it in a boating accident ~ then the fish go right ahead & shit all over it...

Thu, 12/13/2012 - 14:42 | Link to Comment knukles
knukles's picture

Now somebody's gonne start salting bars they're selling on e-Bay with fish shit now you've given them that idea, genius guy. :)

Thu, 12/13/2012 - 11:15 | Link to Comment resurger
resurger's picture

h/t to Jim in MN

"So like, NCIS Los Angeles last night was all about a big heist of gold that was a US Treasury interest payment to the Chinese, and when the pretty agents found it it turned out to be tungsten (they drilled it) and then they found the dudes that did it by searching their cryptospy databases for smelters and tungsten purchases and it turned out to be the Iranians trying to destroy us.

No seriously, prime time last night. Hilarious. "

Now 75% of  the worlds gold is with the Federal Reserve, when push comes to shove, blame the DEALERS

Thu, 12/13/2012 - 11:27 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

The Fed owns no where near 75% of the worlds gold. The Fed claims to own somewhere north of 8,000 tons... and that is a claim that has not been proven.

Total known gold above ground in the world... estimate:

"A total of 165,000 tonnes of gold have been mined in human history, as of 2009.[2] This is roughly equivalent to 5.3 billion troy ounces or, in terms of volume, about 8500 m3, or a cube 20.4 m on a side."

http://en.wikipedia.org/wiki/Gold

Thu, 12/13/2012 - 12:47 | Link to Comment exi1ed0ne
exi1ed0ne's picture

Posession is 9/10ths of the law.  They have the gold in their vaults, and ownership is based on law which can and will be changed when the occasion suits it.

Thu, 12/13/2012 - 14:44 | Link to Comment knukles
knukles's picture

Correction: Posession PLUS troops in the owners countries

Thu, 12/13/2012 - 15:57 | Link to Comment Mikehy
Mikehy's picture

The Fed doesnt own an ounce of the US gold holdings, the US Treasury owns it. what the Fed owns is the value in dollars of 8333 tons at 42 usd per ounce (approx 10 billion dollars).

Thu, 12/13/2012 - 14:37 | Link to Comment August
August's picture

I'm getting pretty sick our Treasury, State and Defense Departments being kicked around by the Iranians.

Something needs to be done!

Thu, 12/13/2012 - 12:13 | Link to Comment johnnymustardseed
johnnymustardseed's picture

Gold and silver will only go as high as JPM and central banks will allow. The continual churning is hard to watch, a decade from now we might be happy to own gold and silver but for now it only fuels our anger at the rigging

Thu, 12/13/2012 - 14:34 | Link to Comment boogerbently
boogerbently's picture

More logc fail.

"10. If all the gold in the world was given to the US and sold at today’s prices, it would be worth about $10 trillion dollars – and that still wouldn’t be enough to pay off our public debt. In fact, the $10 trillion would only cover 60% of the almost $16.5 trillion we owe. Probably better to just keep the dollar going."

Keyword (phrase) being "at todays prices."

In this scenario, if gold went to $3400/oz the US would have 25% MORE than our entire debt.

At $6800, a $34 trillion surplus.

In simple terms, I see Sovereigns buying gold, then allowing (manipulating or stifling current manipulation) the price to rise, selling to cover debt/deficit/printing.

It's just a matter of time. There is NO other cure for the currency debasement.

Thu, 12/13/2012 - 12:36 | Link to Comment exi1ed0ne
exi1ed0ne's picture

It's not stolen.  Our labor is owned by the political juristiction we happen to reside in - our slave pen if you will.  We may move to another slave pen (Thanks Simon Black!), and have kinder (or harsh) masters.  We can even trade the canteen tolkens of one slave pen with another, for a nominal fee of course.  Gold trancends this, since it is not produced by the slave pen owners.  However, through taxation or outright force it can be taken "for the good of the other slaves" whom would be happier to increase their lot at the expense of your own.

I don't agree with the above - boils my blood in fact, but I recognize the truth.  However, this is the first time in human history thet there was nowhere else to go. The long spiral will take us to one of three destinations - population destructive war (which lowers the knowledge carrying capacity of humanity), the boot smashing into the face of humanity forever, or colonization of space.  While the last is my sincerest hope, it is also the least likely.

Thu, 12/13/2012 - 14:02 | Link to Comment FEDbuster
FEDbuster's picture

World War is always their first option, thins the heard and puts the rest to work.

Thu, 12/13/2012 - 11:03 | Link to Comment becky quick and...
becky quick and her beautiful mouth's picture

i believe any of this. maria told me so.

Thu, 12/13/2012 - 11:04 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Barbarous relics FTW!

Thu, 12/13/2012 - 11:03 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

Gold - "You're going to like the way you look."

Thu, 12/13/2012 - 11:46 | Link to Comment edifice
edifice's picture

Suit Beard has spoken! "I Guaaaraaantee It."

Thu, 12/13/2012 - 13:11 | Link to Comment dbTX
dbTX's picture

I guarantee it

Thu, 12/13/2012 - 11:03 | Link to Comment unrulian
unrulian's picture

Bullion Bitchez

Thu, 12/13/2012 - 11:05 | Link to Comment kliguy38
kliguy38's picture

We may be "doomer preppers" but that trumps "starving poor dumbazzes" .....BIATCH!

Thu, 12/13/2012 - 11:16 | Link to Comment CPL
CPL's picture

CYA FTW.

Thu, 12/13/2012 - 11:06 | Link to Comment tony bonn
tony bonn's picture

gold is not a commodity - only this type of puerile deceitful crap is.

Thu, 12/13/2012 - 11:06 | Link to Comment Seasmoke
Seasmoke's picture

I know lots of people in many different walks of life. I do not trust any of them. Heck I don't trust myself. Gold protects against the lies.

Thu, 12/13/2012 - 11:13 | Link to Comment buzzsaw99
buzzsaw99's picture

nice piece to console the faithful

and the band played on...

nearer my gold to thee:
http://www.youtube.com/watch?v=iHsx1cvACkY

Thu, 12/13/2012 - 11:23 | Link to Comment WhiteNight123129
WhiteNight123129's picture

Never look at the price, always the value. Gold value is ok, Silver is better.

 

Thu, 12/13/2012 - 11:31 | Link to Comment Fire Cat
Fire Cat's picture

And platinum, at the moment, is best!

Thu, 12/13/2012 - 11:32 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

PALLADIUM is a screaming BUY

Thu, 12/13/2012 - 12:19 | Link to Comment BooMushroom
BooMushroom's picture

Hard to imagine getting a month's worth of food from a dentally-challenged pig farmer for a bar of platinum or palladium. Gold and silver he knows from the bible.

As a commodity store of value, though, yeah.

Thu, 12/13/2012 - 11:08 | Link to Comment resurger
resurger's picture

Nick Colas & Sarah Miller - Weak article.

Thu, 12/13/2012 - 11:57 | Link to Comment socalbeach
socalbeach's picture

At least 2 mistakes in article.  Always bothers me when writers can't even get simple stuff right.

1) Dow/gold ratio never dropped below 1 or 2 in 2009,

"When the [Dow/Gold] ratio drops below 1 or 2, things are probably pretty bad. This happened in both 1980 and 2009...

2)Gold has increased less than 9,000%, not more (100*(1700/18.92 - 1)),

"from $18.92 in 1911 to over $1,700 in 2012, the price of gold has inflated more than 9,000%."

Thu, 12/13/2012 - 12:10 | Link to Comment XitSam
XitSam's picture

"Bottom line: Gold fans tend to bad mouth “Paper gold.”  They shouldn’t – demand here helps the overall investment story for the yellow metal."

I don't know what is an "investment story". Paper gold was created in part to suppress the price of gold. By giving people an easy alternative to physical gold, when the bullion banks have rehypothecated that gold 100:1, keeps physical demand and the price down. Seems to me that keeping the price down detracts from an "investment story".

Thu, 12/13/2012 - 14:32 | Link to Comment Bullionaire
Bullionaire's picture

True, XS.

I almost spit my chocolate milk when I read that fucktard statement. 

Thu, 12/13/2012 - 15:07 | Link to Comment akak
akak's picture

 

At least 2 mistakes in article.  Always bothers me when writers can't even get simple stuff right.

And another egregious mistake:

3) The disingenuous claim that "Though jewelry has traditionally been the more popular end use of consumer demand for gold, making up 78.5% of the total in 2002, in Q3 2012 jewelry made up 59.9% while investment (coins, bars) accounted for the other 40.1%"

Wrong wrong WRONG, shit for brains!  You Nadlers who love to spout this line that most of the world's annual gold production is used only for "jewelry" pointedly and misleadingly ignore the fact that the vast bulk of all that jewelry, particularly in the very country, India, which is the #1 consumer of gold, is actually held as INVESTMENT gold, not as mere 'bling'!  You dishonest bastards repeatedly try to badmouth and belittle gold investment by focusing on the form in which gold is held worldwide, rather than on the reasons for it being held, regardless of the particular physical form.  This is as idiotic and misleading as it would be to try to claim that all the gold held by westerners in the form of bullion coins is strictly "numismatic" gold, and is held only as a "collectable".

Thu, 12/13/2012 - 11:08 | Link to Comment PUD
PUD's picture

#11...It is one of the most environmentally destructive practices with vast tracks of land poisoned by mercury and other heavy metal runoff. 

#12 It employs a great deal of slave labor including children

#13 It is not an "investment" it is a bet

You may not give a shit given the human tendency towards self enrichment at the expense of any and everything else but these are facts

Thu, 12/13/2012 - 11:16 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Go back to HuffPo.

Thu, 12/13/2012 - 11:31 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

PUD - you can multiply the destructiveness of Gold by ten thousand times, to evaluate the destructiveness of paper money and the insane military industrial complex it finances. Also, fuck you!

Thu, 12/13/2012 - 12:04 | Link to Comment e_goldstein
e_goldstein's picture

Personally, I'd rather PUD die a virgin.

 

Thu, 12/13/2012 - 14:38 | Link to Comment Bullionaire
Bullionaire's picture

Funny, but he's mostly correct!

 

 

"#11...It is one of the most environmentally destructive practices with vast tracks of land poisoned by mercury and other heavy metal runoff."

Sad but true.

#12 It employs a great deal of slave labor including children

Mostly true.

#13 It is not an "investment" it is a bet

True, it's not an "investment."  IT IS MONEY.

 

The world is fucked.  You can huddle with the rest of the sheep and hope for the best, or you can try to protect those you love as best you can.  With metal.

 

 

Thu, 12/13/2012 - 20:04 | Link to Comment smiler03
smiler03's picture

 "Die a virgin."

 

Like you? "Always wish upon your enemies the most calamatous that has happened to you"

Thu, 12/13/2012 - 11:18 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Have you ever been near a pig farm? Wanna talk about a environmental FU caused by those that eat swine... take a trip and check it out.

Also, check out some oil drilling/exploration sites while you are about it. Especially in areas where no environmental regs are protecting native populations. Total disasters.

Then we have Hanford and other nuke waste dumps... I could go on but you should get the idea by now.

Thu, 12/13/2012 - 11:18 | Link to Comment Troy Ounce
Troy Ounce's picture

 

 

Populist government born half-truth crap.

A non manipulated gold price would have been much higher giving mines the opportunity to invest in environmental and labour issues.

Talk to your government friends about these facts!

Thu, 12/13/2012 - 11:29 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

#11  So killing trees for paper to print fiat is no longer on the earth-worshippers list of concerns?

#12  Aren't unions all about enslaving people via labor?

#13  It's neither an investment nor a bet...it's a store of purchasing power.  Of which presumably you have none.

Thu, 12/13/2012 - 20:06 | Link to Comment smiler03
smiler03's picture

ha ha ha

Thu, 12/13/2012 - 11:31 | Link to Comment Oldballplayer
Oldballplayer's picture

Drive out of Kansas City a few miles. You can smell the piss from miles away. They are the cattle holding pens.

I never looked at a steak the same way.

Life can get pretty sloppy.

Thu, 12/13/2012 - 11:11 | Link to Comment MiddleageThinni...
MiddleageThinninghair's picture

I have recently had the idea that those people who's great grand parents had gold confiscated by FDR should file a class action lawsuit against the Federal government to regain the stolen gold.

Thu, 12/13/2012 - 20:06 | Link to Comment smiler03
smiler03's picture

Sell your gold and go for it.

Thu, 12/13/2012 - 11:11 | Link to Comment marginview
marginview's picture

If gold has such intrinsic value the why is Zero Hedge constantly trying to drum up demand? You've claimed before you don't offer investment advice but you are clearly trying to advise people to buy it. You're just the same as scum like Goldman Sachs who use similar methods of persuasion to hawk their investment ideas.

 

Thu, 12/13/2012 - 11:14 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Them's fightin' words.

Thu, 12/13/2012 - 11:16 | Link to Comment francis_sawyer
francis_sawyer's picture

From my perspective... Nobody is 'advising' anyone of anything... Instead ~ the proper way to look at things is to take a long hard look on what debt based fiat dollars mean [to civilization at large] as a long range store of wealth &/or enduring prosperity...

Thu, 12/13/2012 - 11:26 | Link to Comment Fire Cat
Fire Cat's picture

GS recommended selling gold, remember??? That's the ultimate contraindicator. Smart money is buying when Goldman says, "SELL!"

Thu, 12/13/2012 - 11:35 | Link to Comment mayhem_korner
mayhem_korner's picture

You're just the same as scum like Goldman Sachs who use similar methods of persuasion to hawk their investment ideas.

 

If that were even remotely true, single-digit IQers like you would not be able to post here without paying a "brokerage fee" of some sort.  ZH is not pawning anything and has no financial incentive to advise people on investment choices (unlike goldman).

Sometimes I wonder how there possibly could be enough stupidity in the world to lead it down the path it is on...and then someone like you comes along and I stop wondering.

Thu, 12/13/2012 - 12:43 | Link to Comment earleflorida
earleflorida's picture

zh reports !

, you decide ?

... or, keeping it simple for the dyslexia crowd-- 

vise-a-versa,...

buy while its on sale !

jmo

Thu, 12/13/2012 - 12:31 | Link to Comment BooMushroom
BooMushroom's picture

If health has such intrinsic value the why is Zero Hedge constantly...

If self-sufficiency has such intrinsic value the why is Zero Hedge constantly...

If knowlege has such intrinsic value the why is Zero Hedge constantly...

If long-term food storage has such intrinsic value the why is Zero Hedge constantly...

If using Goldman as a contrary indicator has such intrinsic value the why is Zero Hedge constantly...

Seriously, blogs form around an idea, which they push because they believe in it. Go suck an egg.

Thu, 12/13/2012 - 13:20 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Dear, dear Marginview...

"It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. "

Also, Blue Pills are available in the lobby, as you exit.

Thu, 12/13/2012 - 14:41 | Link to Comment Bullionaire
Bullionaire's picture

+1 for the Bingo avatar.  Made me smile.

Thu, 12/13/2012 - 15:20 | Link to Comment zerozulu
zerozulu's picture

One thing is clear to me. " You cannot print gold".

Thu, 12/13/2012 - 11:11 | Link to Comment mdtrader
mdtrader's picture

It goes down on more QE.

Thu, 12/13/2012 - 11:12 | Link to Comment Debtless
Debtless's picture

11. Ancient Aliens apparently came to Earth to mine Gold and other PMs. See Nazca.

Thu, 12/13/2012 - 12:05 | Link to Comment giggler123
giggler123's picture

We did but found nothing but angry apes who now throw bombs at each other so left on the next passing UFO.  See Lord of the rings.

Thu, 12/13/2012 - 15:42 | Link to Comment MrSteve
MrSteve's picture

That was the source code for Gorilla.bas, now being intellectually copyright infringed by AngryBirds.

Our fore-apes reckoned in parabolic trajectory spatial memes which we now apply to printing paper currencies. Soon, GO BOOM!

Got Golden Bananas? Even former FRB chief Alan Greenspan used "bananas" as a code word- you can look it up! His decoder was pointed at Depression which means Yes, we have no bananas. Its all in the history books. The newspapers today don't report reality, so don't look there for useful info.

 

The silverback MrSteve.

Thu, 12/13/2012 - 20:17 | Link to Comment smiler03
smiler03's picture

"See Nazca."

 

As in the "Nazca lines" ? You get 11 upvotes and zero downvotes. That really does show how the ZH readership has "jumped the shark". What a load of morons you are. Those +11s now believe that the Nazca lines were done by aliens. 

You are beyond help. You're not just brainless but more sheeplike than sheep. Quite incredible. No wonder your country is a fucking mess . I suggest you stick with your bibles, it's slightly more plausible and might help you sleep at night. 

Thu, 12/13/2012 - 20:23 | Link to Comment akak
akak's picture

And as for you, brit, have fun in your ever-growing total surveillance, utterly totalitarian Big Brother police state that already surpasses the worst dreams of Orwell himself.

Thu, 12/13/2012 - 11:13 | Link to Comment Geruda
Geruda's picture

The words to be describing what the words he is speaking will say is making me have confusions.  I am not seeing the ten things I am not knowing about gold.  I am not seeing even the three things I am not knowing about gold.  The words I have in my head from the read I just did are not making me have strong feelings that 'bullish' is a word making sense.

Thu, 12/13/2012 - 11:13 | Link to Comment GoldbugVariation
GoldbugVariation's picture

This article is ridiculous.

The primary use of gold is to be held by central banks. The central banks dwarf all other players in the market, by a huge factor - who else has holdings counted in [b]tons[/b]?

So mess with gold, you are messing with the central banks - even more so than if you choose to invest in treasuries.

Plus, individuals investing in gold are at a huge disadvantage compared with central banks - individuals don't have visibility into other central banks' trading (which is mostly secret), individuals cannot buy gold except from dealers at a huge premium, and individuals cannot test the purity of the gold they are buying (they have to take it on trust).

Thu, 12/13/2012 - 11:14 | Link to Comment tmosley
tmosley's picture

Individual holdings of gold dwarf CB holdings.  2:1, IIRC.

Thu, 12/13/2012 - 20:25 | Link to Comment smiler03
smiler03's picture

But can the individuals coordinate like central banks? I suspect not.

Thu, 12/13/2012 - 11:20 | Link to Comment Quintus
Quintus's picture

If it came down to a 'Who's got the most gold' competition, poor Indian farmers would kick the Fed's ass up and down the field.  They have at least twice the tonnage of gold that the Fed claims to have.

Don't mess with the Indian peasantry, Ben.

Thu, 12/13/2012 - 11:55 | Link to Comment Diogenes
Diogenes's picture

Peasants have been hoarding gold for thousands of years, yet they remain peasants. Something to think about if you regard gold as an "investment".

I regard it as "savings" or "speculation" depending on the circumstances but not an "investment".

PS This is not a knock to PMs. I probably have more stashed away than you do. I'm just trying to clear away some confusion about what they are for.

Thu, 12/13/2012 - 12:13 | Link to Comment Tango in the Blight
Tango in the Blight's picture

The Indians don't buy it out out investment but out of tradition. When there's a holiday people there buy gold for their loved ones. When there's a holiday in the US people trample each other to death to buy electronic gadgets which will be worthless next year.

Who'se smarter then?

 

Thu, 12/13/2012 - 11:13 | Link to Comment tmosley
tmosley's picture

Yeah, don't worry about the paper gold that is controlled by the most corrupt banks in human history.  You'd have to be "crazy" to think that a bank would claim they are storing gold for their clients when they actually aren't.  That has never happened before, why would it happen now?

Thu, 12/13/2012 - 11:34 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

For sheer fraud ya gotta hand it to those fucking bankers... They claim that they are storing individual gold holdings, charge rent and insurance for providing their 'service', and never even aquired the gold for the individuals... Why are these bastards not hanging from lamp posts?

Thu, 12/13/2012 - 11:14 | Link to Comment Inthemix96
Inthemix96's picture

Laws of physics is dead on here folks.

All this boils down to is the real cost of what you're labour is worth.  Can you provide a real tangible product or service that doesnt involve conning folk out of the value of their labour?

Bankers cannot.  And they will defend, with the help of a bought off government to hold on to the right to screw you and I as long as they can.  The real value of gold is the value of your labour.

Thu, 12/13/2012 - 11:25 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Correct.  Moreover, let's take it one step further and tie money (or capital) to energy. It's easy to do since money that is accepted allows you to purchase some amount of work.  Since we all know that it takes energy to get any real work done, common sense tells you that there is a very real cost for capital creation.  Now remind me, how long have we hade zero interest rates again? - FAIL.

Thu, 12/13/2012 - 11:33 | Link to Comment Inthemix96
Inthemix96's picture

Couldnt agree more lawsofphysics.

And when this shit-show ends, I want to see at the very least punishments for behaviour that is at present rewarding outright theft of the whole worlds labour.

Getting confetti for wages after the outrageous theft of our collective systems of labour pool is wearing thin mate.  The world is catching on what these fuckers in powere are up to.  This ends in either war, or we as people stop it, I can see no other way as the power brokers, and their bought out whore politicians would rather kill you and I than see a hair hurt on their filthy heads.

This isnt ending good either way mate, makes me fucking sick thinking about it.

Thu, 12/13/2012 - 11:16 | Link to Comment RobotTrader
RobotTrader's picture

XRT and XLY surging again today as gasoline prices melt down to new lows for the move.

Who needs gold when the consumer is booming, Spanish bank stocks are hitting 52-week highs, and there is no price inflation anywhere?

Thu, 12/13/2012 - 11:22 | Link to Comment Spitzer
Spitzer's picture

Peter Schiff is finally believeing the manipulation allegations this morning on his show.

Thu, 12/13/2012 - 11:26 | Link to Comment fonzannoon
fonzannoon's picture

Yup he has been ranting for 25 mins straight.

Thu, 12/13/2012 - 18:34 | Link to Comment akak
akak's picture

RobotShitforBrain's stockpimping drivel is surging again today as his credibility melts down to new lows for the move.

Who needs Jon Nadler and CNBC when RobotShitforBrain's trolling is booming, the bullshitometer is hitting 52-week highs, and there is no long-term or big-picture perspective anywhere in his ramblings?

Thu, 12/13/2012 - 11:15 | Link to Comment unwashedmass
unwashedmass's picture

 

well they tried to start a waterfall in the gold and silver shares this morning. 

 

it didn't work. they've sold things down to the hard core holders. 

 

What do we think bart is doing this morning? Porn fest? 

Thu, 12/13/2012 - 11:15 | Link to Comment midtowng
midtowng's picture

I already knew all this. That's why I own gold

Thu, 12/13/2012 - 11:20 | Link to Comment Chupacabra-322
Chupacabra-322's picture

11. I own physical and Zombie Sheep don't. 

Thu, 12/13/2012 - 11:20 | Link to Comment moron counter
moron counter's picture

   Something to consider -  all the worlds gold except for the plaque that was on one of those space programs, IS STILL HERE. And every day they keep finding more.  As for me, if the SHTF and someone offers me gold for some food, it  had better be in plating a gun or something else useful for it to be worth anything for me.  

Thu, 12/13/2012 - 11:22 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Have you considered shortening your handle to moron?

Thu, 12/13/2012 - 11:28 | Link to Comment moron counter
moron counter's picture

I always consider it, but after a complete self evaluation I have decided that you sir, or mad'am, or both, are 1.  Thanks for getting me started.

Thu, 12/13/2012 - 11:36 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Don't mention it. I am obliged to point out moronic comments whenever I see them.

Perhaps you should have your evaluation done by a professional?

Thu, 12/13/2012 - 11:55 | Link to Comment moron counter
moron counter's picture

   Perhaps you didn't read me properly. It happens sometimes. 

      I said when the SHTF I wouldn't trade food for gold. You disagree. Thats fine.

     My thoughts are food, security, shelter.....   

     And yours are????

    

Thu, 12/13/2012 - 12:25 | Link to Comment Snoopy the Economist
Snoopy the Economist's picture

I agree with the moron. What good is gold if 'everything goes to hell' - what we really need is food, water, heat, guns and bullets.

Thu, 12/13/2012 - 13:51 | Link to Comment Pareto
Pareto's picture

Still require some form/medium of exchange.  Strict barter limits exchange.  Water, heat, guns and ammo are all great and good, but, if you have satchels full of barley and beans, along with your guns, you may have nothing immediate to offer anybody, if nobody wants your satchel.

Thu, 12/13/2012 - 11:42 | Link to Comment mayhem_korner
mayhem_korner's picture

As for me, if the SHTF and someone offers me gold for some food, it  had better be in plating a gun or something else useful for it to be worth anything for me.  

 

Mr. Moron Sir.  Please read carefully.  In a SHTF situation, if someone shows up with a gold-plated gun looking for food, the chances of them getting the food is 100%.  The chances of you getting the gun in return is 0%. 

Thu, 12/13/2012 - 12:04 | Link to Comment moron counter
moron counter's picture

  2.     Again what I'm saying is that gold has no value if and when the SHTF. And there are flaws in your comment, first

, a gun with no rounds is useless and the second flaw is I have several semi autos with  rounds, so you might want to rethink about your 100% comment.

Thu, 12/13/2012 - 12:09 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

OK.  I get it.  You're nine years old, aren't you?

Thu, 12/13/2012 - 13:18 | Link to Comment moron counter
moron counter's picture

You will always be 2 to me.

Thu, 12/13/2012 - 14:49 | Link to Comment Bullionaire
Bullionaire's picture

Goddammit, stop feeding the troll.

Thu, 12/13/2012 - 12:20 | Link to Comment BandGap
BandGap's picture

It all depends on how hard the SHTF.

If we still have a financial system but the dollar is worth dog shit, precious metals will be taken as "money".  If we are all scratching out a bare existance near the end of the road and Armageddon, I'll take the gun and some lead.

 

Thu, 12/13/2012 - 12:50 | Link to Comment viahj
viahj's picture

gold will retain its purpose as money and even as currency as you describe above but where "moron" is failing in logic is that after SHTF, commerce will continue.  if the USD is worthless, you can convert your gold into Yuan, SDRs, or whatever else currency is being accepted locally. 

Thu, 12/13/2012 - 11:43 | Link to Comment GubbermintWorker
GubbermintWorker's picture

One should be diversified and own gold, silver, lead, lead deilvery systems, food, water, and a good woman to bed down with every night. That is the prudent thing to do.

Thu, 12/13/2012 - 11:54 | Link to Comment caimen garou
caimen garou's picture

lead delivery systems, wish I could give you 100 up for that!

Thu, 12/13/2012 - 19:30 | Link to Comment IllusionOfChoice
IllusionOfChoice's picture

I'm getting my investment advice from ZH today.

Thu, 12/13/2012 - 12:25 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

all the worlds gold except for the plaque that was on one of those space programs, IS STILL HERE.

How do you know that?  Got complete records for the past several million years have you?

Thu, 12/13/2012 - 13:00 | Link to Comment The Swedish Chef
The Swedish Chef's picture

World population and productivity have both increased in multiples over the last centrury. We are twice the amount of humans we were in the late sixties and we probably produce at least three times as much stuff, if not more. On the other hand money (the real thing) production hasn´t kept up. Do the math. On the other hand, math doesn´t seem to be your forte.

Thu, 12/13/2012 - 14:51 | Link to Comment Bullionaire
Bullionaire's picture

BORT BORT BORT!

Thu, 12/13/2012 - 11:21 | Link to Comment fonzannoon
fonzannoon's picture

Doomsday Preppers Show is an oxymoron. I saw one show. The first guy was afraid of the weather. He was stocking food, ammo, weapons....you name it. He had a pretty sweet hideout too. There was one problem. The TV show basically gave the world his name and address. He told the world what he was doing. Talk about putting the ultimate bullseye on your ass.

The second guy was a retired police officer. He feared the economic collapse. He had a solid plan. Put together a network of like minded neighbors. Seemed like this guy was at least intellectually capable of understanding the situation. They cut him off a few minutes in and said "Most economists agree that an economic collapse is very unlikely". Pffft. Show over.

Thu, 12/13/2012 - 17:03 | Link to Comment RockyRacoon
RockyRacoon's picture

Propaganda.  Depict preppers as weirdos, kooks, and "not like us".   Job complete.

Thu, 12/13/2012 - 11:24 | Link to Comment AgShaman
AgShaman's picture

When Obama passes his EO and revisits the ghosts of FDR, he will be generous and give the gold-bugs an 8 dollar premium on their gold....

At least that will be what he tells the "collective" zombies that were never interested in buying any.

Value is set by tyrannical govts

Your gold has the value stamped on it ($50 clown-bux)

Thu, 12/13/2012 - 11:23 | Link to Comment No Euros please...
No Euros please we're British's picture

So, is Russia and China buying gold while the price is suppressed because it's shiny, or is it maybe a hedge against any possible devaluation of their dollar denominated bonds.

A possible devaluation that they see coming soon.

Thu, 12/13/2012 - 11:25 | Link to Comment Sleepless Knight
Sleepless Knight's picture

The best prepper ever is Yukon Cornelious. He's always looking for silver and gold, and if you look close enough he's packin' a S&W 629 in his belt. Take that all you non believers!

Thu, 12/13/2012 - 11:32 | Link to Comment ItchyBeard
ItchyBeard's picture

Silver, bitchez!

And you eat it too:
http://fxcuisine.com/Default.asp?Display=162

Thu, 12/13/2012 - 11:32 | Link to Comment Quinvarius
Quinvarius's picture

The world never left the gold standard.  The governments and bankers are just in a massive case of denial.

Thu, 12/13/2012 - 13:22 | Link to Comment Ghordius
Ghordius's picture

now that's the best comment so far - and "full of truthiness" +1

I know, it's boring, but I do have to point out that IMHO you have to add an "AngloAmerican" before your "...government and bankers..."

the rest of the planet never lost the taste of Midas' gift - all barbarians, of course

btw, I also "...find it hard to sympathize the “end of the world as we know it” logic"

what is the "world as we know"? "money for nothing and the chicks for free"?

and yet beware: a true gold standard requests more moral fortitude than most are willing to even contemplate

Thu, 12/13/2012 - 11:37 | Link to Comment Vooter
Vooter's picture

"If all the gold in the world was given to the US and sold at today’s prices, it would be worth about $10 trillion dollars – and that still wouldn’t be enough to pay off our public debt. In fact, the $10 trillion would only cover 60% of the almost $16.5 trillion we owe."

If you divide the $16.5 trillion we owe by the total number of ounces of gold ever mined (5.28 billion), you get a gold price of $3,125 an ounce. Just sayin'...

Thu, 12/13/2012 - 12:16 | Link to Comment Tango in the Blight
Tango in the Blight's picture

That's only US public debt. Add worldwide public & private debt. Then do your calculation again. Gold bitchez!

Thu, 12/13/2012 - 12:30 | Link to Comment Vooter
Vooter's picture

I understand that--I was using the figure that the original poster used....

Thu, 12/13/2012 - 15:28 | Link to Comment MrSteve
MrSteve's picture

Toss in $220 Trillion in unfunded USA political and financial promises and $1.4 quadrillion in FRB & IMF - BIS backed banking derivatives exposure and then do the division. $3K is extremely "light". I'm just sayin'. Y'all can do your own DD and see where the real exposure exists.

If the risk is $2 Quadrillion and only 1 in 1000 is likely, then figure on $2T as a minimum loss.....Hmmm. Do we have that to lose if we are already officially $16T down? I'm not a trained economist but I'd say history teaches us that the current system is broke here and now and needs a new currency to wipe out unpayble debts of the old system.

Be Prepared is the Boy Scout motto and not bad real world advice. (think about your car's spare tire0

Thu, 12/13/2012 - 11:36 | Link to Comment wagthetails
wagthetails's picture

my bet? still see a small decline (before massive run up) as the world fights a losing battle against deflation.  obviously this battle leads to hyperinflation, when gold really runs.

Thu, 12/13/2012 - 11:51 | Link to Comment samcontrol
samcontrol's picture

my bet also. But that includes buying all in at the right price , not that easy.

Thu, 12/13/2012 - 12:41 | Link to Comment BooMushroom
BooMushroom's picture

Any price below "massive run up" is the right price...

Thu, 12/13/2012 - 14:56 | Link to Comment Bullionaire
Bullionaire's picture

You said it, Boo.  And BTW, for those who laugh during the artificial smackdowns and call them buying opportunities, those of us who are "all in" hope even harder that TSHTF sooner.

Thu, 12/13/2012 - 11:38 | Link to Comment Eddy Vluggen
Eddy Vluggen's picture

"I am not a believer in the world-is-coming-to-an-end mentality, fiscal cliff and Mayan apocalypse or not."

Wrong argument; the current economic system will end (a mathematical certainty).

10.  If all the gold in the world was given to the US and sold at today’s prices, it would be worth about $10 trillion dollars – and that still wouldn’t be enough to pay off our public debt. In fact, the $10 trillion would only cover 60% of the almost $16.5 trillion we owe. Probably better to just keep the dollar going.

Correct. But the problem here is the "gold at current prices"-assumption. You conclusion is a leap of faith, based on a false assumption. If we were to return to the gold-standard, a revaluation would take place.

 

Good research, lousy thinking.

Thu, 12/13/2012 - 11:51 | Link to Comment AgShaman
AgShaman's picture

They should've modified #10...

and posted how the govt does not bother with market values and sets the book value of gold at $42 bucks

Thu, 12/13/2012 - 11:39 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

The cartel beat downs of paper gold are less effective as time passes... Gold on the move upward again...

http://finviz.com/futures_charts.ashx?t=GC&p=m5

Thu, 12/13/2012 - 11:53 | Link to Comment samcontrol
samcontrol's picture

so who controls your dum posts?

Thu, 12/13/2012 - 11:39 | Link to Comment apberusdisvet
apberusdisvet's picture

The World Gold Council and the Silver Institute are bankster controlled propaganda and disinformation entities.  Does anyone honestly believe that the amount of sovereign claimed gold in US and London vaults in accurate what with the exposure of CB gold leasing and swaps?

Thu, 12/13/2012 - 12:14 | Link to Comment AgShaman
AgShaman's picture

Not only will CB's be "burning" other countries when they can't get back the leased out gold, but the MF Globals' of the world will get in on the shenanigans and be going belly up and folding before they return the gold to their customers they've been misappropriating from.

possession being 9/10's will be a common phrase when all the fools get pinched by the gold lease programs

much like Drexel "burned" Portugal.

The AP's and agents working on behalf of CB's will be like the microwave popcorn just starting to heat up

pop, pop, pop, pop.....goes the weasels....sorry, we're broke

http://www.cemla.org/old/pdf/legales/leg-06-Baxter.pdf

Thu, 12/13/2012 - 12:56 | Link to Comment Antifederalist
Antifederalist's picture

Bingo!   100+

Thu, 12/13/2012 - 11:40 | Link to Comment Vooter
Vooter's picture

You're actually running a story entitled "The 10 Things You (Probably) Don't Know About Gold" on Zero Hedge? LOL...that's like giving a book entitled "How to Play Golf" to Tiger Woods...

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