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Will Gold Make It 9 Out Of 9?

Tyler Durden's picture




 

For the past eight years-in-a-row, that worthless yellow barbarous relic that some call 'Gold' has outperformed the 'precious' Dow Jones Industrial Average (even with the constant DJIA re-indexing where the losers are quietly taken out back and shot). As we enter the last day of trading in 2012, Gold still holds a slight edge +6.3% on the year vs the Dow's +5.9%. Will 2012 break the record-breaking run? Or will Warren Buffett's nemesis once again outperform equities and with lower volatility - just a few more hours to find out...

 

 

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Mon, 12/31/2012 - 10:45 | 3108790 Thomas
Thomas's picture

Go for it. By the way, Buffett is a hoser. He acts like a sweet little old man, when he is really an insider--the Mafia don walking around in his bathrobe to look harmless. What a weasel.

Mon, 12/31/2012 - 10:48 | 3108808 Dan The Man
Dan The Man's picture

lol...hoser...good one...eh

Mon, 12/31/2012 - 10:51 | 3108822 Thomas
Thomas's picture

Red bull thread jump. Chris Martenson and I discuss a host of weasels including the Buffett character http://www.peakprosperity.com/podcast/80364/david-collum-headed-for-show...

Mon, 12/31/2012 - 11:08 | 3108861 Quinvarius
Quinvarius's picture

That is one of Martenson's better interviews. 

Mon, 12/31/2012 - 11:29 | 3108928 AlaricBalth
AlaricBalth's picture

From "The Triumph of Gold" written in 1961 by Charles Rist.

"Discussing the depreciation of the dollar since 1939, the National City Bank in its "Monthly Letter" dated December 1951 made the following pertinent comments, as, true today (1961) as they were then:
"Gold has had the best record over centuries as a store of value (a vital function of money which many economists nowadays forget). Paper money has been good when issued by banks which have been under a legal obligation to maintain convertibility into gold at the option of the dollar. . . . Paper money directly issued by National Treasuries has the worst record, though money can be just as bad if it is put out by a bank of issue which is free from the necessity of maintaining gold convertibility and bonds to the
wishes of a profligate government for cheap financing. Most of the worthless currencies issued in foreign countries during and after the war bore the stamp of a corrupted Central Bank of issue. "

Mon, 12/31/2012 - 12:03 | 3109031 Buckaroo Banzai
Buckaroo Banzai's picture

C'mon guys-- 30 posts in, and I have to be the one to say it??

GOLD, BITCHEZ!

 

Mon, 12/31/2012 - 12:05 | 3109042 Thomas
Thomas's picture

We stand corrected.

Mon, 12/31/2012 - 12:36 | 3109160 AlaricBalth
AlaricBalth's picture

I concur!

Mon, 12/31/2012 - 13:05 | 3109290 glenlloyd
glenlloyd's picture

weasel is one of my favorite words....

Mon, 12/31/2012 - 13:36 | 3109391 Thomas
Thomas's picture

I was taught by a lawyer to use phrases that couldn't possibly be true. Never call Buffett a pedophile, junkie, thief, crook, etc. They are all demonstrably true or false. Phrases like weasel, hoser, dork, lizard-brained monkey, slime mold, etc are court-free concepts.

Mon, 12/31/2012 - 16:07 | 3110187 Blizzard_Esq
Blizzard_Esq's picture

Yes the statements not be true or false, but an opinion, couched in hyperbola or figuratively so as not to be taken seriously. 

Mon, 12/31/2012 - 11:01 | 3108842 TheFourthStooge-ing
TheFourthStooge-ing's picture

I wonder if Doug Kass will make another year-end prediction for $600 gold like he did two years ago. (I don't recall him even mentioning gold a year ago in his predictions for 2012).

As for Buffett, just once I'd like to see him and Charlie "Sleestak Magoo" Munger appear on CNBC in their normal, everyday state: sitting in executive-class geriatric playpens, attired in bibs and soiled diapers, as illegal immigrant nursemaids feed them their strained prunes.

Mon, 12/31/2012 - 16:22 | 3110249 malek
malek's picture

Doug Kass ridiculous prediction notwithstanding, this is the first year gold has not kept up with SGS-inflation and perfmrmed not a lot better than the DOW, since 2004...

A CIGA just sayin'.

Mon, 12/31/2012 - 11:05 | 3108853 sudzee
sudzee's picture

Prediction for 2013.
Buffet places order for 20,000 cattle cars to transport sheeple to FEMA camps.

Mon, 12/31/2012 - 11:37 | 3108950 Thomas
Thomas's picture

My 2013 Prediction: We will witness aggressive central bank intervention. 

My work here is done.

Mon, 12/31/2012 - 11:46 | 3108971 Bad Attitude
Bad Attitude's picture

Gun and ammunition prices will reach new record prices, driven by the words and actions of opportunistic politicians, and by the public's uneasiness with where the economy is heading. We truly live in interesting times, and it is only going to get more interesting.

Mon, 12/31/2012 - 15:18 | 3110010 KnightTakesKing
KnightTakesKing's picture

I was at the Gun Show in Chantilly, VA this past weekend... the record prices are already here. 5.56 green-tip ammo that used to sell for $420 per 1,000 rounds was selling for $1,000.  AR-15's that were selling for around $1,000 were selling between $3K and $4K. Magpul 30-round mags that carried a retail price of $15, were being sold for $70.

I only hope this was the peak and prices return to "normal" in 2013.

 

Mon, 12/31/2012 - 11:06 | 3108855 Composter
Composter's picture

i know it's just a metaphor, but all weasels do is sneak in to the chicken coop via holes dug by ground squirrels - and EAT MY CHICKENS.

Buffett is WAAAAAAAAAAAAAAAAAAAAAY Worse.

what WAS he doing meeting at Offutt Air Force base with Bush admin personnel on 9-11 ?  a "Charity Event" - that's the official story.

Mon, 12/31/2012 - 11:42 | 3108963 gmak
gmak's picture

As a Canadian, I resent being lumped in with Buffett - as do all hosers everywhere. 

Mon, 12/31/2012 - 10:46 | 3108802 Dan The Man
Dan The Man's picture

Chart this back to 1913.  Might be interesting.

Mon, 12/31/2012 - 10:50 | 3108818 AU5K
AU5K's picture

And use the stocks that were in the dow in 1913 too.....

Mon, 12/31/2012 - 12:13 | 3109076 qqqqtrader
qqqqtrader's picture

...and add the dividends for a true comparison

Mon, 12/31/2012 - 10:53 | 3108824 caimen garou
caimen garou's picture

 don't matter to me which one performs better in these crooked markets.lets see which one stands up to the fire and water test, yes there is only one that is not a pile of ashes!

Mon, 12/31/2012 - 10:57 | 3108831 Sudden Debt
Sudden Debt's picture

I'm rather interested in what gold will do in january when the US people will cry like babies to Obama to print another shitload of paper to keep the apple dream alive.

my options jumped another 60 cents up today, so let's hope it does that every day for the next month :)

please santa, make it happen :)
I'll drink more coca cola if it does! I'll even force the kids to drink more cola!!!!!

Mon, 12/31/2012 - 10:55 | 3108833 LongBalls
LongBalls's picture

The world is seeking hard assets. It always has, it always will. Will gold have up's and down's? Yes. Will gold's value remain through out the generations? I would say it has a better shot than a piece of paper with pretty pictures owned by a dying empire aided by a sliding social and lawless political class.

Mon, 12/31/2012 - 11:27 | 3108874 Pool Shark
Pool Shark's picture

Exactly.

Interesting article on the value of silver over the last 2000 years in terms of wages/prices:

http://etfdailynews.com/2012/12/26/a-brief-2000-year-history-of-silver-prices-vale-gld-slv-agq-zsl-pslv/

If you take the five dollars that Henry Ford was paying his workers for a day's work in 1914; the silver in those five silver dollars would be currently worth over $115. Today, that's an hourly wage of over $14.00. Those five silver dollars have held their 'value,' while in terms of FRN's; five 'dollars' will barely cover a Big-Mac Meal at the Golden Arches.

What's in your wallet?

[Edit: if Henry Ford's workers had taken the $5 they were paid and simply bought 10 ounces of silver bullion (selling for around $0.50/ounce at the time) today, that day's wages would be worth over $300.00, or $37.50/hour.]

Mon, 12/31/2012 - 12:29 | 3109123 AlphaHunter001
AlphaHunter001's picture

 

one can't compare historic values of silver/gold to today. we are in a completely different time period.

 

that's like charting the number of horse and buggies vs. gdp and coming to the 'conclusion' that because we have fewer horses used in transport today in the economy today vs 1902, today is 'weaker' economy LOL... those old metrics don't work...

 

people used to use silver as money, but now no one buys anything with silver... although one can make the argument that the next real currency will be bitcoins (or something similiar) since I can actually use them to buy stuff right now (and so are Iranians for that matter)

Mon, 12/31/2012 - 13:59 | 3109507 Pool Shark
Pool Shark's picture

 

 

I'll tell ya what: you hold on to your FRN's and come back in a decade or so and let us know how that worked out for ya, m'kay?

 

Mon, 12/31/2012 - 11:03 | 3108843 Lewshine
Lewshine's picture

...And imagine IF metals were left to trade without the pursuasions from the Fed's henchmen, JPM chase!!

 

 

Mon, 12/31/2012 - 11:03 | 3108845 firstdivision
firstdivision's picture

Well if there is no deal on the US Fiscal situation, FB will be $40...if one were to take today's price action into account.

Mon, 12/31/2012 - 11:06 | 3108857 debtor of last ...
debtor of last resort's picture

Maybe the physical/paper ratio will become 'more' important in 2013. Something like 1:50.

Mon, 12/31/2012 - 11:09 | 3108865 espirit
espirit's picture

Being more of a silverbug than a goldbug, my New Years wish is a run back to $27 for another truck load.

7 - 17 - 27 - 37 - 47  Huh! Rangebound. 

Mon, 12/31/2012 - 11:18 | 3108896 espirit
espirit's picture

Uh, I mean't "boatload".

Mon, 12/31/2012 - 11:56 | 3109013 Pool Shark
Pool Shark's picture

 

 

Still contributing to 'mineral deposits' at the bottom of the lake?

Mon, 12/31/2012 - 12:48 | 3109216 Cpl Hicks
Cpl Hicks's picture

So.... what's a good price range to sell my silver in 2013?

46? 46 1/2?

At my age I can't afford to be too greedy.

Mon, 12/31/2012 - 14:49 | 3109817 espirit
espirit's picture

Sell?  That infers you got some.  I keep overloading the boat and she capsizes.

Mon, 12/31/2012 - 11:09 | 3108866 fonzannoon
fonzannoon's picture

some guy just said that gold will be down next year. when asked why he said 'becauase it should be higher right now". that is the stupidity being put forth.

Mon, 12/31/2012 - 12:00 | 3109022 Pool Shark
Pool Shark's picture

 

 

This isn't surprising, given that gold isn't backed by anything:

http://www.youtube.com/watch?v=BiXIs3bbETA

 

Mon, 12/31/2012 - 11:10 | 3108869 Getting Old Sucks
Getting Old Sucks's picture

They'll do whatever it takes cause the USA doesn't really have any gold.  That'll be the super story in a few years when they finally admit it.  Notice the super rich stocking up this year though

Mon, 12/31/2012 - 11:11 | 3108873 John Bigboote
John Bigboote's picture

If the wrong banker sees this article, it won't. Please stop taunting these assholes.

Mon, 12/31/2012 - 11:18 | 3108892 PlannedObsolescence
PlannedObsolescence's picture

The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit…In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the govt would have to make its holding illegal, as was done in the case of gold… The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

                This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the “hidden” confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.

 

Alan Greenspan- 1966 BC (Before Corruption) “Gold & Economic Freedom”

Mon, 12/31/2012 - 11:21 | 3108902 Stuck on Zero
Stuck on Zero's picture

A sure way of protecting yourself is to work for the government - in the highest and most corrupt position possible.

 

Mon, 12/31/2012 - 11:47 | 3108977 MsCreant
MsCreant's picture

So are you planning on running for president?

Mon, 12/31/2012 - 12:04 | 3109028 Pool Shark
Pool Shark's picture

I think Zero is eyeing Treasury Secretary.

[emphasis on 'most corrupt' over 'highest']

Mon, 12/31/2012 - 12:55 | 3109243 Go Tribe
Go Tribe's picture

I want Tyler as Treasury Sec.

Mon, 12/31/2012 - 11:34 | 3108946 lasvegaspersona
lasvegaspersona's picture

Once again....because the first twenty times it did not get through....Keynes called the GOLD STANDARD (not the metal itself) a barbarous relic. 

Mon, 12/31/2012 - 11:57 | 3109017 Temporalist
Temporalist's picture

Gold is a 10!

Gold goes to 11!

Gold is the new gold!

One gold in hand is better than two gold in the bank.

Mon, 12/31/2012 - 12:31 | 3109130 Clint Liquor
Clint Liquor's picture

That is funny.  

Gold, it's good as Gold!

Gold, it's the new Gold Standard.

Mon, 12/31/2012 - 12:11 | 3109068 A. Magnus
A. Magnus's picture

Gold, Bitchez! I feel so strongly about it that I set it to music:

http://www.youtube.com/watch?v=x7i4pByuOUo

Mon, 12/31/2012 - 13:01 | 3109270 Cpl Hicks
Cpl Hicks's picture

You're trending on social media!

You're going VIRAL!

GB's everywhere feel that you feel so strongly and we all want to be your BFF!

I want to like you on fb, too.

Mon, 12/31/2012 - 12:36 | 3109159 Bastiat009
Bastiat009's picture

Now let's take a look at gold vs. S&P 500 and at gold vs. Nasdaq. Stocks have had a much better year than gold. That doesn't change anything about gold or about the past years. And I am not saying I am able to explain how or why.

Mon, 12/31/2012 - 12:39 | 3109167 FreeMartinArmstrong
FreeMartinArmstrong's picture

The shift from public to private will benefit both stocks and gold. Nothing wrong with some good old stocks. Nothing at all. Just make sure to have them on your name.

Dow has a yearly bullish reversal of 12567. the low is set, we will make higher highs. but please keep debating about this market crash that is a comming. It is amusing.

We will see interest rise next year, and find out the Bernank is out of ammo to stop this to reveal the emperor has no clothes. And a realy tiny dick. 

Mon, 12/31/2012 - 12:42 | 3109191 buzzsaw99
buzzsaw99's picture

gold, huh, yeah

what is it good for?

absolutely nothing

Uh-huh

http://www.youtube.com/watch?v=P7kHWEGtRgA

 

Mon, 12/31/2012 - 13:42 | 3109418 Anasteus
Mon, 12/31/2012 - 13:58 | 3109493 Anasteus
Anasteus's picture

Heck, both gold & silver are soaring!

Is JPM having a maintenance schedule, or what?

Mon, 12/31/2012 - 14:04 | 3109535 Infnordz
Infnordz's picture

A. Magnus,

As someone else mentioned in the YouTube video comments, the singing is drowned out by the clashing and proportionally too loud instruments; the vocals need to be proportionally lounder and clearer, so that we can make out the words; something too many singers don't appreciate, leading to lots of ridiculous, misheard, "Chinese Whispers" song lyrics on the internet.

We need lots more people to properly hear the messages about our insane financial system, so that it stops boring us with it's slow lingering death, so that we can spend more time on more interesting stuff than financial self-preservation.

I have Physical Bullion as a store of value, but it really is quite boring sitting as bars in a Vault; although my separate SBSS Silver Bullion Medalions are amusing to keep and show people, because they mock the corrupt establishment.

 

Mon, 12/31/2012 - 14:45 | 3109750 A. Magnus
A. Magnus's picture

While I appreciate your efforts at a mixing and mastering critique I will take that under advisement; this little ditty's been played thousands of times on various internet radio stations and for whatever reason only the folks at Zero Hedge have difficulty discerning the lyrics. Might have something to do with Youtube's compression algorithms, perhaps something else entirely.

I think it might be a psychological reaction like "NO! This CAN'T be a lesson in hard economics set to music!" Or maybe it's the cameo shout by the Mogambo Market Guru in the third verse that scares people's ear canals...

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