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Gold At $1600, Recoupling With Stocks Post QE2

Tyler Durden's picture





 

The media appears to be gorging on the 2% drop today in Gold and 11% drop in the last 4 months. Gold's demise today appears triggered by JPY's dump at around 8amET - though longer-term, it appears gold and stocks are recoupling in the reflation trade from around the start of QE2. At $1600, gold is back at August 2012 levels but +134% from the 2008 Lehman 'event'.

 

 

 

Charts: Bloomberg

 


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Fri, 02/15/2013 - 12:02 | Link to Comment Boston
Boston's picture

1599. Order FILLED.

Fri, 02/15/2013 - 12:04 | Link to Comment Confundido
Confundido's picture

Should have waited to $1,585...

Fri, 02/15/2013 - 12:11 | Link to Comment kralizec
kralizec's picture

Umm, keep buying.  (Rolling eyes)

Fri, 02/15/2013 - 12:18 | Link to Comment Pladizow
Pladizow's picture

Short the paper as far down as they hammer it and buy physical with the profits!

Fuck them at their own game!

Fri, 02/15/2013 - 12:28 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

Lets review the cold hard facts:

1. Gold and silver are plummeting
2. The VIX is falling off a cliff
3. Stock shorts have been blowtorched
4. Interest rates are still at record lows

C'mon folks, this is getting silly. This is a recovery, pure and simple. The sooner doomer ZHers get that through their heads, the sooner they can get their portfolios back on track and save their retirements. Doomer ZHers are on a crash course. But it seems that no matter how many times they are warned, they simply refuse to listen.

Fri, 02/15/2013 - 12:32 | Link to Comment Oldballplayer
Oldballplayer's picture

You are right.  I cashing in all of my gold and silver and going long the SPY.  Green shoots are coming out of my nose.

You know, I was talking to the thirty or forty 50 somethings at the coffee shop this morning and they were all talking about how great the economy is doing.  We all agree with you....stocks are the way to go.

Yippi-Ki Yay Motherfucker!

Fri, 02/15/2013 - 13:35 | Link to Comment francis_sawyer
francis_sawyer's picture

Yeah ~ the economy is doing so good... I just got back from the coin shop... It was 'xtra' crowded this morning [I had to wait nearly 45 minutes ~ & they had 6 staff serving customers & who knows how many in the back]...

~~~

Probably the reason it was crowded was because most people were SELLING... There were around 20 customers, & based on my observation, about a dozen of them were selling gold jewelry, silverware, & old coins... That's why it was taking so long...

The half dozen BUYERS were either looking for ASE's, or AGE's... period! [cept for the stupid bitch right in front of me who wanted, inno uncertain terms, an Isle of Man gold soverign]... I have no idea how she got interested in that, because the counter guy had to school her for about a half hour on every goddamned round they had in the store ~ & she ended up walking out without buying anything]...

Note: Anecdotally ~ All the 'SELLERS' looked like they needed the cash... 

Fri, 02/15/2013 - 13:40 | Link to Comment StychoKiller
StychoKiller's picture

30 1/2 Toz rounds heading my way -- thanks, Crimex!

Fri, 02/15/2013 - 16:26 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Gold is down, but the Bearing is on a Buyer's Strike, even for gold...  Why?  "Via negativa"...  Via negativa is N N Taleb's way of saying "Less is more."

Only a handful (Rocky Racoon, knukles, lakecity55) here might partly know why I write the below...

"The Via Negativa, Less is More":

http://tinyurl.com/c4r29qb

Fri, 02/15/2013 - 15:05 | Link to Comment Jonas Parker
Jonas Parker's picture

Stopped by a new coin shop that opened locally yesterday. One couple in front of us (early to mid 30's, shabbily dressed) were selling their silver tableware which looked to be antique from what I could see. I don't know what they were paid, but the vibes I got from the clerk indicated that the "store" was a lot more interested in buying than selling. It was pretty sad to see these folks asking where they could cash the check that they received.

Fri, 02/15/2013 - 16:00 | Link to Comment francis_sawyer
francis_sawyer's picture

@Jonas

~~~

I feel your vibe man... I... TRULY... DO... feel SAD... when I see these folks selling...

Fri, 02/15/2013 - 12:39 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

MDB, remember two things.  There is smart money, and there is dumb money. 

Dumb money follows smart money.

So yeah, stocks are up.  Some of us have been saying they would go up for years.  But bonds are also up, and some have said that would happen.  Precious metals are also up.

MDB, everything is up....except currency.  So just spend that funny money like your life depends on it.

Fri, 02/15/2013 - 12:38 | Link to Comment Pareto
Pareto's picture

Low interest rates (real rates less than zero) coerced by FED swaps of longerdated crap for bank reserves is not indicative of an economy in recovery.  It means the cost of capital is essentially zero.  Does this make "recovery" sense to you?

Fri, 02/15/2013 - 12:52 | Link to Comment Againstthelie
Againstthelie's picture

Sure it's a recovery. I agree.

But it is built on what? 85 bn/month freshly printed funny money?

Why printing money, if it would be a solid self sustained recovery?

And the recovery of stocks has been going on for 4 years. So either you missed it, or why do you suggest to get into stocks at ATHs in the 4th year? Wouldn't it be less risky to wait for the next recession and buy low?

Fri, 02/15/2013 - 14:12 | Link to Comment TeddyBear
TeddyBear's picture

No

 

no

 

no

 

All you have to do is buy and set a stop.

2 simple things.

The next recession I will be shorting and setting a stop.

Margin rates are a give away, Take some of this free $$$ for yourself.

:)

:)

Like I said last time "gold to 1200 or 700"

Fri, 02/15/2013 - 12:53 | Link to Comment Non Passaran
Non Passaran's picture

> This is a recovery, pure and simple

And so industrial demand for silver is exploding, right?

Meth Man 2, keep trolling..,

Fri, 02/15/2013 - 13:17 | Link to Comment JPMorgan
JPMorgan's picture

Waiter. . . I'll have what that guy is smokin.

Fri, 02/15/2013 - 14:01 | Link to Comment WhiteNight123129
WhiteNight123129's picture

MDB are you long duration?

Are you confusing benign credit expansion driven inflation (which is benign and self-defeating) with inflation coming from money (which is Chronic and sticky)?

The first is self defeating the other absolutely not.

Do you believe we are back to normal recovery, i.e. total debt expanding faster then income? Or total debt expanding faster than GDP in other words. Is that your definition of ~back to normal~ ? If it is then you are positively deranged.

If it is not, ask yourself what is the difference between credit expansion inflation and money expansion inflation.

Credit and Money are 2 different things, the inflation coming from credit is cyclical under fixed money system. Inflation followed by deflation in Gold. The other one, money expansion is a permanetn shift of prices higher.

 

Fri, 02/15/2013 - 15:02 | Link to Comment Darth Rayne
Darth Rayne's picture

I agree, everything is working according to Bernankes plan. He is perhaps using more force than he expected but all is well.

Bernanke believes himself to be very clever indeed. He went to Harvard and they told him how very special he was. He had an idea about the depression and what went wrong. They told him how inciteful and brilliant he was. He became a professor of economics where he was worshipped. Everyone told him he was gifted. The president gave him a job, he was to be the FED chairman as he was so special.

Everyone at the FED reveres his brilliance. Psychopaths at investment banks tell him how clever he is. Warren Buffet is on his speed dial and we know how rich he is. Ben Bernanke is brilliant, he knows he is brilliant, everyone he works with and meets tells him how brilliant he is. Bernankes brilliance is shoring up the global financial system. Ben is in control, he knows what he is doing as he is special and brilliant.

I, on the other hand, am a complete feckwit. I don't think he is special. I think he is dangerous. It is a good job MDB is here to point out the average ZHers mistakes and errors of judgement.

Thanks MDB

I am just a gifted Systems Analysis and design Engineer, so what do I know about modelling complex systems and their control systems and their application in the real world. Ben knows what bits of paper with numbers are and his models are ace. How can I compete with that!

In Engineering, complex systems fail catastrophically and without warning. If Ben was an Engineer I am sure cars would do a thousand miles a gallon and never needs servicing. Ben Bernanke is an inspiration to us all. Those who say 'fuck Bernanke' only show their own ignorance. Those who say gold is money are fools, Ben himself says Gold is traditional, nothing more. Please stop being negative and bask in Bens brilliance. A squirt of his sperm is worth more than all your silly yellow metal. Long live Ben 'the brilliant' Bernanke.

Fri, 02/15/2013 - 12:32 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

.Take a walk first thing in the morning, eat an apple and brew some tea. then do your job (and make sure it is one you like).  Kiss your kids, kiss your person, read a book, and seriously....don't think about any of this bullshit.

That is a happy life, but it isn't for everyone.  There are those of us who have put themselves on the frontline.  We have dedicated our time to studying the opposition; understanding the oilgarchy's motives; knowing what makes the banksters tick.

The point is, we have figured them out.  We have done the heavy lifting.  Now we must put the clamp down on them.

Our best offense is to take back the gold and silver supply.  We do this because gold and silver is money.  It is money because it meets all definitions of money:  It stores wealth because it never decays.  It is fungable.  It is a store of account.

We take back the supply then we have the money, which means we have the power.

Take back the money!

Buy Silver!

Fri, 02/15/2013 - 12:40 | Link to Comment hankwil74
hankwil74's picture

Gold is money because ppl agree it's money; no other reason.  There is nothing inherently useful about gold.

Fri, 02/15/2013 - 12:49 | Link to Comment hankwil74
hankwil74's picture

To the people who clicked on the down arrow about my comment, please explain to mr the inherent value of gold as opposed to water or arrable farm land.

Fri, 02/15/2013 - 12:56 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Both water and land have good value, but they are not forms of money. 

Fri, 02/15/2013 - 13:13 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

The difference between "wealth" and "money" is the difference between energy and potential energy.  Money is a wealth proxy, thus an intermediary of a trade of wealth.  If money is variable in quality, this sets a slew of wildcard factors into the trade.  The fewer the wildcard factors, the more accurate the information regarding valuation of wealth is intrinsic to the money. 

Gold is physically stable.  It is difficult to produce, thus small quantities of pure gold imply large commitments of material and energy in manpower, technology, and experience.  It is finite, and elemental, and can not be synthesized in appreciable quantity.  New supplies are rare, or covert. 

Land is wealth, true.  It can be a medium of exchange, true.  It can not be pocketed, nor can the real value of land be attained without the precondition of means to work the land to produce.  Gold has no such preconditions.  It is a ready-made loaf of bread that never spoils.

 

Fri, 02/15/2013 - 13:40 | Link to Comment francis_sawyer
francis_sawyer's picture

I'm looking to diversify into arable bitcoins when I get the chance...

Fri, 02/15/2013 - 13:56 | Link to Comment imbrbing
imbrbing's picture

Bitcoins to me are nothing more than more zeros and ones. Can't end good

Fri, 02/15/2013 - 14:07 | Link to Comment francis_sawyer
francis_sawyer's picture

That's my take... If you can't BITE it... It ain't a COIN...

Fri, 02/15/2013 - 15:17 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Bit Coins to me are no different from bank passbooks.  They are an account entry and thus an ephemeral proxy for physical wealth.  My challenge to bitcoin is, how the hell do I understand without requiring a decoder of some sort, who becomes, in essence, a facilitator of the account?  It's like guaranteeing that you can't have wealth without an accountant.  How the hell do I understand what's encrypted?  Does this hardware come with software?

Fri, 02/15/2013 - 16:51 | Link to Comment digitalhermit
digitalhermit's picture

Its quite simple really, if you understand basic public-key cryptography.

http://en.wikipedia.org/wiki/Public-key_cryptography

There are two keys, a public and a private that operate as a pair.

Bitcoin Example:

Public Address (your public account #)

1LGoehbyeX4QBEPK1a6dhyaoMQZfqg5LKX

Private Key (needed to spend bitcoin in your account)

5JBSttEGhjEcPidSovW66Rin2EZ6LEHZ2qx8Pu2RqqNaDTBVWaF

Anyone who holds the private key is a "facilitator of the account" and can construct and sign a transaction that authorizes release of funds from that account/address to someone elses account/address. This transaction is easily verified by the massive peer-to-peer swarm of bitcoin miners and accepted if it is valid, rejected if it isn't. The source code of the miner software is open source and can also be inspected/verified. So, in short - facilitation of fund transfer requires the private key and acceptance of your transaction by miners (who are also financially rewarded to accept valid transactions).

Also miners keep a ledger of all transactions that have ever occured (called the "block chain"). They use this chain to make sure you can only spend the money once from a given address (preventing the "double spend" problem). This block chain is a data structure that is built by consensus between peers with no trust of one another.

 

Fri, 02/15/2013 - 19:14 | Link to Comment francis_sawyer
francis_sawyer's picture

Instantly ~ It all makes sense...

Fri, 02/15/2013 - 23:41 | Link to Comment imbrbing
imbrbing's picture

lol!

Fri, 02/15/2013 - 15:10 | Link to Comment lasvegaspersona
lasvegaspersona's picture

How about this:

gold, water, farm land are all forms of wealth. Gold, not because it is useful but because for 5,000 years humanity has agreed that it is the best form of preserving wealth over long periods of time.

It is given a value by currency but really currencies have value given them by gold. In the long run all the fiat currencies may come and go. Gold will always have value because people recognize it as wealth. Silver, because it is so useful will not again be used as a wealth asset. Silver may BE scarce and may be useful but as far as keeping it to preserve wealth it is a bad choice because hoarding silver is harmful like hoarding foods or lumber.

Gold was seemingly made to hoard. That is it's best and highest use.

Fri, 02/15/2013 - 16:30 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Yes, all valuable hard assets are a form of wealth.  I would include silver though.

Gold is the best wealth preservation vehicle we have however.  Exactly right: its best and highest use.


Fri, 02/15/2013 - 16:40 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Silver is money too.

Fri, 02/15/2013 - 16:44 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

Gold does have a pretty significant industrial use floor under it's value.  

http://geology.com/minerals/gold/uses-of-gold.shtml

"Of all the minerals mined from the Earth, none is more useful than gold. Its usefulness is derived from a diversity of special properties. Gold conducts electricity, does not tarnish, is very easy to work, can be drawn into wire, can be hammered into thin sheets, alloys with many other metals, can be melted and cast into highly detailed shapes, has a wonderful color and a brilliant luster."

So, calling it a "useless metal" pretty much auto-pegs you as either an idiot that can't do a simple internet search, or an asshole talking his book (gold short).  

Fri, 02/15/2013 - 12:59 | Link to Comment Nostradamus
Nostradamus's picture

Kinda hard to carry arable land or water in your pocket as a medium of exchange for goods.  Easy to do that with gold and silver.  Hence the reason they were used in civilized societies as money for practically all of recorded history. 

Fri, 02/15/2013 - 13:51 | Link to Comment TheGardener
TheGardener's picture

I get the "carry" part . But "civilized" ?

Fri, 02/15/2013 - 14:48 | Link to Comment Nostradamus
Nostradamus's picture

What about it?  You've never heard of primitive tribal communities using a barter system of exchange?

Fri, 02/15/2013 - 13:08 | Link to Comment Mugatu
Mugatu's picture

Please explain to me the inherent value of a piece of paper with George Washington's face on it?  

Value is measured by people's desire and people have decided to value gold greatly.  Yes, they also like water, real estate etc...., but why shaft gold?  Just because you can't understand why people value it does not make it worthless. It might mean that you just don't understand it.

Fri, 02/15/2013 - 13:17 | Link to Comment TahoeBilly2012
TahoeBilly2012's picture

Listen you nitwit. I have a river behind my house I can walk down and take water all I want, and anit moving. If you go leave me some gold down by the bank I am hoofing down there to get it! Why? Because it is valuable in even small amounts. It will soon become more valuable as the paper money backed by nothing increases exponentially. At worst it's jewelry, at best it's the only real money on eerth, is water that?

Fri, 02/15/2013 - 13:30 | Link to Comment Bazinga
Bazinga's picture

The inherent value lies with the fact that gold has been used for wealth preservation and trading for THOUSANDS of years. Fiat currencies have come and gone but gold has always survived. Besides, water and arrable farm land in the pockets doesn't travel well!

 

Fri, 02/15/2013 - 13:35 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

IMO, the long history of gold's usage is an effect of its value, not a cause.

Fri, 02/15/2013 - 13:39 | Link to Comment walküre
walküre's picture

I'm a farmer. Land is good. Great fresh water supply from the mountains is good too. How do I store my farming profits when the crooks are pretending the day of reckoning never comes? They live in Lalaland if they believe it can go on forever with money created from thin air. But they don't believe it themselves which is why they're buying as much of the hard assets as they can with their fraud. CBs are buying gold and silver.

Do as they do not as they say.

Today is a great day to buy more gold and silver.

Fri, 02/15/2013 - 13:42 | Link to Comment francis_sawyer
francis_sawyer's picture

EVERY day is a great day to buy more gold & silver... [But today especially]... Can'treally say I even mind if they make it even BETTER tomorrow...

Fri, 02/15/2013 - 14:12 | Link to Comment Harbanger
Harbanger's picture

Here's a question.  I have no mortgage, but I have an equity line of credit that I haven't used.  Should I use the credit to buy pm's or not.  I think the appreciation will be greater than the interest on the money.  What do you think?

Fri, 02/15/2013 - 14:37 | Link to Comment francis_sawyer
francis_sawyer's picture

My take?... ABSOLUTELY NOT

~~~

Reason?... There's no way of ever ending the JOOBUCK mentality until people stop borrowing 'joobucks' into existence [for WHATEVER reason ~ & if your motive for doing it is to SCAM the JEWS, then you're a JEW yourself]... I'm sure there will be people with varying POV's...

Fri, 02/15/2013 - 14:37 | Link to Comment francis_sawyer
francis_sawyer's picture

.

Fri, 02/15/2013 - 16:02 | Link to Comment francis_sawyer
francis_sawyer's picture

[sorry for the SEND sticks above & here]

Fri, 02/15/2013 - 15:34 | Link to Comment lasvegaspersona
lasvegaspersona's picture

Harbanger

If you are asking this question this late in the game...well....the short answer is buy physical gold. Do not buy GLD the ETF. GLD is a way of betting on the price of gold. We may see the price of GLD go lower as it's price is determined by the action in the grand casino we call the market. The price of physical gold is determined by this price but the value of physical gold coins and bullion in your posession will soon become much higher than the value of those paper bets.

Others on this site will argue for silver. I say no. Silver may go up but not because it is a monetary metal. Not one single central bank on this planet uses silver anymore....just gold!

Fri, 02/15/2013 - 15:50 | Link to Comment Harbanger
Harbanger's picture

I know, I've been buying phys for years and telling people to do the same.  I was just wondering if I should scam the banks by buying a few monster boxes with their credit or not.  My street self tells me yes, fck em, they're destroying your currency.  My gut is telling me no.

Fri, 02/15/2013 - 16:50 | Link to Comment francis_sawyer
francis_sawyer's picture

Trust your gut...

~~~

Are you a scam artist?... Or are you a human being?... For chrissakes... BE a human being [whereby the REWARDS cannot be quantified]...

I'm not 'PURPOSEFULLY' bringing others into this drama... But look at the fotos that hedgeless_horseman posts here now & then [mostly ~ his DINNERTABLE]... That's what I mean by 'unquantifiable rewards'... That's my definition of QUALITY...

Fri, 02/15/2013 - 14:48 | Link to Comment WhiteNight123129
WhiteNight123129's picture

hankwil74 is correct, there is nothing inherently valuable in Gold. See Karl Menger (founder of Austrian school).

Gold has a 6,000 years old brand though. So it is not inherently valuable, but it does not mean it is not valuable.

In fact it has always been the accepted form of money, so it endurance is longer than Coca-Cola, longer than the jewish faith, longer than the teh Christian faith, longer than the Muslim faith.

In fact it is more known as monetary form than anything else. Go in Africa and ask them if they ahve heard about teh Vietnamese Dong. Next ask them if they have heard of Gold.

Fiat Dollar is passing brand, a fad. The real brand of monetary form are Gold and Silver. Ok, Fiat dollars are still fashionable. RIMM was fashionable for a few years...

In fact if you were going to Africa in the XVI century in Ghana and talk to them about Jesus Christ. They would have said ~Jesus who?~ next show them Gold, and they would go ok, I know that stuff, being used by hte Nubians with teh Egyptians and we have been using that stuff with the Nubians too, we now that stuff and we accept it, no issues.

Get over it, the fact that Gold reacted to teh printing is no accident. Teh Fiat lovers pretend that Gold has been demonetized my ass.

Gold is there to stay as long as people are not reliable on their promises.

Gold has no inherent value but it is the longest and more enduring brand. Denying that Gold is viewed as store of value is utterly Bullshit. Everyone in the world knows it is very valuable with no inherent value into it. Is there any inherent value in Coca-Cola, more inherent value? Not more, it is popular for now and I bet teh popularity of Gold will stay longer than Coca-Cola.

Gold is a code, which says: When the rulers try to fuck us, we all go for teh Gold. And the reason it is valuable is because there will always be some fuckers trying to do the same thing in 60-70 years, and we know the people will take refuge again in Gold and Silver.

FINAL POINT:

Gold has always been valuable to get sex with women. Always, and you tell me that men should not prize it?

 

 

Fri, 02/15/2013 - 15:15 | Link to Comment billsykes
billsykes's picture

The hat only works if it is gold foil- like the kind they wrap potatoes in. 

Fri, 02/15/2013 - 12:52 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

If you want to have a philosophical discussion about how money does not equal happiness, well, that is why I started off my post about going for a walk and enjoying your life.  Money does not equal happiness, and in fact, it may even hurt in some cases.  Where there is money, there is betrayal and alterior motives.

If you want to have a discussion about the definition of money, you don't need my word for it.  Go look up the definition....

But I'll help you.  Let's start with the diference between currency and money:  they are the same until we get to "Money must store wealth; it must maintain value".  Now your semantics is that we give it value.  That is not correct - we determine its price, but it has inherent value.  This is due to the fact that it lasts forever.

The price is determined by supply/demand and the supply/demand of other goods.  But the fact that it has intrinsic value (and we haven't begun discussing the role precious metals play in industry/technology) makes it money.

Fri, 02/15/2013 - 13:01 | Link to Comment hankwil74
hankwil74's picture

Lots of things last forever. Gold has no actual use (except for a few industrial uses), unlike silver which is used in many industries. Gold has value because people value it, and have for centuries.

But in terms of intrinsic value, i.e. the actual value of a commodity without reference to it market value, gold has a very low instrinsic value, especially when looked at against silver, water, or arrable land.

Fri, 02/15/2013 - 13:13 | Link to Comment Nostradamus
Nostradamus's picture

Gold has use as money.  That is its primary use.  Why can you not accept this?

Fri, 02/15/2013 - 13:20 | Link to Comment hankwil74
hankwil74's picture

It has use as money because people agree that it has use as money. There is nothing instrinsicly special about gold that makes it valuable, any more so than silver or lead.

Fri, 02/15/2013 - 13:46 | Link to Comment francis_sawyer
francis_sawyer's picture

One of the more important differences between gold & arable land is that the government would have to FIND your gold before they could tax you on it... They could tax your land [or take it away from you on a whim]... With land ~ notwithstanding its usefulness, you're always in jeopardy...

Fri, 02/15/2013 - 13:57 | Link to Comment Variance Doc
Variance Doc's picture

Yes there is dumbass: the rarity, which is a consequence of living on a finite world and the energy necessary to extract it from said world today.  Gone are the days of strolling fields and finding 1-pound nuggets lying around.  Also, it cannot be printed into existence to increase the supply, it must be mined into exsistance.

You need to STFU until you understand this.

Fri, 02/15/2013 - 14:51 | Link to Comment WhiteNight123129
WhiteNight123129's picture

hankwil74 is correct, there is nothing inherently valuable in Gold. See Karl Menger (founder of Austrian school).

 

Though Silver has inferior monetary properties (Gold does not oxyidate, though Silver was a bacteria free form of barter, very very usefull during the plagues, Lead is very inferior in monetary properties)

Gold has a 6,000 years old brand though. So it is not inherently valuable, but it does not mean it is not valuable.

In fact it has always been the accepted form of money, so it endurance is longer than Coca-Cola, longer than the jewish faith, longer than the teh Christian faith, longer than the Muslim faith.

In fact it is more known as monetary form than anything else. Go in Africa and ask them if they ahve heard about teh Vietnamese Dong. Next ask them if they have heard of Gold.

Fiat Dollar is passing brand, a fad. The real brand of monetary form are Gold and Silver. Ok, Fiat dollars are still fashionable. RIMM was fashionable for a few years...

In fact if you were going to Africa in the XVI century in Ghana and talk to them about Jesus Christ. They would have said ~Jesus who?~ next show them Gold, and they would go ok, I know that stuff, being used by hte Nubians with teh Egyptians and we have been using that stuff with the Nubians too, we now that stuff and we accept it, no issues.

Get over it, the fact that Gold reacted to teh printing is no accident. Teh Fiat lovers pretend that Gold has been demonetized my ass.

Gold is there to stay as long as people are not reliable on their promises.

Gold has no inherent value but it is the longest and more enduring brand. Denying that Gold is viewed as store of value is utterly Bullshit. Everyone in the world knows it is very valuable with no inherent value into it. Is there any inherent value in Coca-Cola, more inherent value? Not more, it is popular for now and I bet teh popularity of Gold will stay longer than Coca-Cola.

Gold is a code, which says: When the rulers try to fuck us, we all go for teh Gold. And the reason it is valuable is because there will always be some fuckers trying to do the same thing in 60-70 years, and we know the people will take refuge again in Gold and Silver.

FINAL POINT:

Gold has always been valuable to get sex with women. Always, and you tell me that men should not prize it?

 

 

Fri, 02/15/2013 - 15:04 | Link to Comment Variance Doc
Variance Doc's picture

LOL "...inherently valuable..." And what color is the sky in your Laplacian world?  Value is a RELATIVE concept, not an absolute concept.  Do you have any thoughts of your own, or are you just going to cite other people to do the work for you.

Fri, 02/15/2013 - 14:01 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

First, gold is used industrially as other PMs are, so throw away that arguement. 

And you are right, of sorts, and to use a famous quote -

Gold by nature is not money, but money by nature is gold.

Secondly, nothing else has the halflife gold does.  Water and gas evaporates.  Land needs to be worked correctly.  And neither are easily portable therefore neither meet the definition of money.

You will need to do one thing today and one thing only.  You will need to understand an island economy.  I will get you started:  An island economy is one that barters goods for goods without a form of currency/money.  The jest is it is slow and tedious, as having a form of money makes trading very simple.

Example:  You have a donkey and you want two hogs.  You bring the donkey to market looking for two hogs.  I have two hogs but I want a horse, not a donkey.  You tell me your neighbor has a horse and he wants your donkey!  So you ride your donkey back to your neighbor and trade him your donkey for his horse and then you ride back to market on the horse to trade me for my hogs.

But when you get back to market someone came looking for two hogs who was trading a horse and I took him up on his offer.  So now you have a horse, which you dont want, and you just wasted your whole day.

This is the ineffeciency of an island economy, and this is why we created currency and money.  So currency does have value, and there is no better currency than money, because money lasts forever , because money is gold.

Fri, 02/15/2013 - 14:32 | Link to Comment TheGardener
TheGardener's picture

I live on some kind of an hillbillies island even though we are well inside a great landmass. Guess what ? We don`t trade ! All your horsetrading and monkey business does
not cut in this heck of the woods.

We do exchange favors and help each other but by no means suggest some sort of an exchange here, no donkeys for hogs
as they could always be some rip off .Where of which to settle you might have to take your neighbor out.

No trade , no monies accepted. Learned this the hard way
by trying to give away surplus vegetables. No free stuff
my way they yelled implicitly !

They would freely give to my livestock if need be but
put me down if I would ever come begging.

Suggesting any "trade" or even a "trade off" despite we are wholly dependent as close neighbors? They would make me dig a hole behind some hedge and reduce their downside risk to zero.

Fri, 02/15/2013 - 13:29 | Link to Comment Oldballplayer
Oldballplayer's picture

Part of the reason gold is considered money is because it does not decay over time.  You can leave a bar of gold on the bottom of the ocean for one hundred years.  You knock off the barnicles and it remains pure and unaltered.  Do that with steel.

This ability to maintain its chemical stability is the primary reason why gold has been used for retention of wealth.  It is constant.

No, you cannot eat it.  No, people do not need gold leaf on their head covers to reflect the suns rays--unless you are on the moon.

Gold doesn't do much.  But THAT is the reason why it makes a good form of money.

Sat, 02/16/2013 - 09:04 | Link to Comment Moe Howard
Moe Howard's picture

another wrong answer.

You can eat and drink gold.

 

Fri, 02/15/2013 - 14:02 | Link to Comment TheGardener
TheGardener's picture

Maybe Hank just your insight on intrinsic value is somehow intellectually challenged.

Fri, 02/15/2013 - 14:42 | Link to Comment monogratis
monogratis's picture

I would just like to say that gold does have alternative uses medically and spiritually.  Indians and Chinese buy lots of gold for many reasons, but many people believe it has neutralizing effects on the body's energy.  In otherwords, it helps to neutralize free radicals floating throughout your body -- ie: it acts as a ground.  Millions wear gold, copper, and silver bangles in India and the far East.

 

When talking about gold's value, it is important to put it into perspective and consider that paper money has absolutely no value other than the energy that can be burned from it.  Gold has the ability to transfer energy through it, as in electrical conductivity.  It doesn't tarnish.  Silver tarnishes but not badly and not if it is kept in sealed containers.  Silver conducts electricity the best and is thus highly useful in modern society.

Fri, 02/15/2013 - 13:41 | Link to Comment Harbanger
Harbanger's picture

I'm so excited I'm getting a woody.  I'm tempted to load up right now and not wait, although I think the smack down will continue a little longer.  My concern is that dealers will run out of supplies as the price keeps dropping.

Fri, 02/15/2013 - 14:04 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

There are a lot of us now, so it is possible that there will be a supply crunch, sending prices higher on supply/demand constraints.

Fri, 02/15/2013 - 15:49 | Link to Comment ClumsyBoatman
ClumsyBoatman's picture

Hold that woody 

Until the nips get back from eating live-animal dumplings over their new year, the cartel is gonna smash it some more

I was gonna back the truck up at $1600 but hmmmm

Fri, 02/15/2013 - 13:01 | Link to Comment Againstthelie
Againstthelie's picture

Correct. But that all cultures over 5000 years have agreed on that is quite remarkable, isn't it?

Do you know how long is the timespan of the oldest paper money?

Have you ever drawn the two timespans on a piece of paper for visualization?

What makes you believe, that todays paper money will not go the way of all paper money EVER?

What makes you believe that, ALTHOUGH the financial system was THREE times on the brink of total meltdown since 2008?

Do you know when that was? When a single lonely bank, Lehman, collapsed. When the tiny country Greece became bancrupt.

So do you really think it's wise, to put everything on the card of the survival of such a system? Betting the whole financial future on such a system and despising the only 5000 year lasting currency? You think that is clever? I call it insane.

Fri, 02/15/2013 - 13:05 | Link to Comment hankwil74
hankwil74's picture

What makes you think I believe that "todays paper money will not go the way of all paper money EVER?"

 

I never said one thing about paper money.

Who said I despise gold? Please show me where I said that. Alternately, you could be a man of honor and apologize for attempting to put words in my mouth.

Fri, 02/15/2013 - 13:20 | Link to Comment Albertarocks
Albertarocks's picture

Gold is money because ppl agree it's money; no other reason.

And paper money considered as money because..... [we await your explanation here].

Fri, 02/15/2013 - 13:23 | Link to Comment hankwil74
hankwil74's picture

Another idiot assuming that I believer paper money is money. Run along now.

Fri, 02/15/2013 - 13:50 | Link to Comment Albertarocks
Albertarocks's picture

Idiot?  Don't you think that's just a bit over the top, a bit too cruel?  How in hell do you expect me to enjoy the weekend after you call me an idiot?  It's especially insulting coming from a guy who thinks he's a bishop.

Seriously dude... gold is the "only" real money that has ever existed... 4500 years now.  So you don't think gold is money.  You don't think money is money.  Is there anything you think *is* money? 

Fri, 02/15/2013 - 16:14 | Link to Comment Variance Doc
Variance Doc's picture

Yes, he does.  You see that mud in his pocket?  It’s from his “arrable [sic] land”, which is his “money”.

But, the dam upstream that was built by the Army C. of Engineers, financed by taxpayer backed bonds (via Lehman Brothers and Goldman Sachs, doin' God's work) for the small price of 2 billion in a 100 person county, broke, washing all of his cows, trees, crops and other assets away.

The good news is, that he believes his “money” has not lost any of its value; what an idiot...

Fri, 02/15/2013 - 13:45 | Link to Comment Rossalgondamer
Rossalgondamer's picture

I know money when I see it fool!

Gold aint got no numbers, animals, nor words about god or trust on it.

(-cept for that $50 dollar gold eagle I used to buy two bottles of Makers)

 

 

 

 

Fri, 02/15/2013 - 18:37 | Link to Comment Darth Rayne
Darth Rayne's picture

hankwil74 is correct. I can't see why he is being down arrowed.

Food is food. Land is land. Water is water.

Money is a concept devised by a man and accepted by men. We accept fiat currencies as money because we believe pounds and dollars are money. Many people believe gold is money. Wrong. All wrong.

Gold is gold. Dollars are dollars. Pounds are pounds.

Mankind has forgotten what money is. Money is an artificial construct. Money is an idea. Money is NOT money. There is no such thing as money. Money does not exist, except in the minds of men. You cannot hold money as money is not a physical thing.

What is a million zimbabwee dollars worth? Fuck all. How much was it worth 20 years ago? Fuck all. However, 20 years ago you could have swapped it for a nice house and lots of land. Today it is a bit of paper with a number on.

What is a million dollars US worth? Fuck all. How much was it worth 20 years ago? Fuck all. However, 20 years ago you could have swapped it for several houses and lots of land. Today you can swap it for one house and some land. In twenty years, just a piece of paper with numbers on?

There you go, money is an idea. Money isn't land, air, water, fire or anything remotely tangible.

That said, gold does meet all the expectations of money :-) Which just proves that dollars are not money. Dollars are bits of paper with numbers on. More accurately, most dollars are electronic and represent someone elses debt. Dollars are not money. Dollars are what the Government coerces it's Slaves into using. A dollar is the money of slaves.

QED If you think a dollar is money then you are a Slave.

QED If you think a pound is money then you are a Slave.

QED If you think a gold coin is money then I would say that I agree with your IDEA of money.

Fiat currency is useful for exchange and a unit of account. However, in the long run, it is worthless.

Gold is useful as a store of value. It likes to sit still. However, in the long run, it is immortal. I can only hope mankind is immortal too.

Money is an idea we may out grow.

 

Fri, 02/15/2013 - 12:11 | Link to Comment gmrpeabody
gmrpeabody's picture

This is beginning to hurt...

Maybe I'll paint my office..., and have a drink.

Fri, 02/15/2013 - 12:13 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Just take a quick look to see if your ounces are still there.  You'll feel better!

Fri, 02/15/2013 - 12:16 | Link to Comment gmrpeabody
gmrpeabody's picture

Mrs. Peabody is beginning to look at me funny...

The lobster tail I threw her last night may be wearing off.

Fri, 02/15/2013 - 12:20 | Link to Comment Manthong
Manthong's picture

Gold did not drop.

The paper they are trying to make you think is gold , did.

Fri, 02/15/2013 - 12:40 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

To quote two guys on the inside, Buffet and Rotheschilde:

Buy when there is blood in the streets.

Fri, 02/15/2013 - 14:54 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

"Gold did not drop.

The paper they are trying to make you think is gold , did"

...but it was just fools paper

 

Fri, 02/15/2013 - 18:23 | Link to Comment Irelevant
Irelevant's picture

Five years. Gold is a five year investment. Tell her to open the safe in 5 uears, as the gold will souble in size by then...

Fri, 02/15/2013 - 12:20 | Link to Comment fourchan
fourchan's picture

my ounces are seemingly unaffected by this fluxuation in global ponz.

one thing im sure of as i was in 1985, is that the dollar is racing twards worthlessness.

its part of the fed res "system" and the system, of enslaving a free people to debt, and capturing all the assets

through boom and bust it creates, is working perfectly as it has for 98 years now.

Fri, 02/15/2013 - 12:22 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

Your ounces are still there, but worth a lot less. Sigh ... when will goldbugs cave and buy stocks instead? This is getting silly now.

Fri, 02/15/2013 - 12:28 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Because the last time stocks were at these levels, gold was $760/oz.  See more details below.  :)

Fri, 02/15/2013 - 12:29 | Link to Comment Shell Game
Shell Game's picture

My counter party risk will go up against your counter party risk any day MDB....

Fri, 02/15/2013 - 12:31 | Link to Comment Too Big 2
Too Big 2's picture

MDB, are you saying that you have more faith in fiat over physical gold?  If so, at what point will you be concerned about inflation?

Fri, 02/15/2013 - 12:45 | Link to Comment BLOTTO
BLOTTO's picture

Thank goodness for MDB...

.

He is the perfect Troll to re-assure and challenge our critical thinking, philosophy and positions on Gold/Silver.

He makes us realize exactly why one should invest in physical PMs.

.

In the History of the Universe, Gold has never defaulted.

 

Fri, 02/15/2013 - 15:34 | Link to Comment ClumsyBoatman
ClumsyBoatman's picture

The perfect trolls are subtle, sneaky, and you cant really tell if they are fishing a line or not.

milliondollardouchebag is just a contrarian with a shabby stock portfolio of baked beans and iShit.

The guy shoots more airballs than the Washington Wizards.

Fri, 02/15/2013 - 12:50 | Link to Comment moonstears
moonstears's picture

MDB, tell your guys: Dollar rising, falling paper metal prices? Do anything to keep this up! (I say:"Just, please don't throw me in that briar patch")

Fri, 02/15/2013 - 13:02 | Link to Comment Son of Loki
Son of Loki's picture

Your right, I should have bought another house before they dropped 42%.

 

lol.

Fri, 02/15/2013 - 14:35 | Link to Comment jomama
jomama's picture

hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha

Fri, 02/15/2013 - 12:30 | Link to Comment kliguy38
kliguy38's picture

Go ahead and "FREEZE", that's the game being played. This game is really not for you, its for the real money that's in gold paper assets. They're essentially newbie hedgies that are getting their heads handed to them since they are leveraged weak hands. The other side of the trade which is also the limiting side are the strong hands accumulating bullion through some very NON leveraged hedge operatives. Bullion is the limiting factor and be aware a "spiritual entity" may have just coughed up a lot of physical to the true power which is going to give them some leverage once again on the game. Remember....its not nice to fool mother nature.

Fri, 02/15/2013 - 12:06 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

I think you just bought some of Buba's gold. 

Fri, 02/15/2013 - 12:07 | Link to Comment Atlasshruggedme
Atlasshruggedme's picture

This graph is rubish. I see gold and the market growing farther apart since Dec 2012. 

Fri, 02/15/2013 - 12:18 | Link to Comment Kickaha
Kickaha's picture

OT - I'm outta here!  Hookers and blow, just like the big boys!  Hoorah!!!  

I just got this email:

The Federal Reserve Board. Payment Instruction.   Compliments to you,   We have this 13th day of Feburary 2012, received a payment credit instruction from the United Nations and World bank to credit your account with your compensation funds allocated in your name to the tune of US$ 2 million (Two million united states dollars) from their reserve accounts with us. However, you are required to re-confirm the following details as specified below to effect the wire transfer aforementioned above to your designated account details:   {1}. Your Full Name and Address.: {2}. Your Confidential Tel, Cell and Fax. {3). Your Bank name and address.: {4). Your A/c Name and A/c Numbers.: (5). Your Swift Code / Routing Numbers.:   Please do provide the above information accurately, because this office cannot afford to be held liable for any wrong transfer of funds or liability of funds credited into a ghost account. Thanks for banking with Bank of America while we looking forward to serving you with the best of our service. Thanks and God bless you.   Regards, Chairman Bernanke Yours in Service,   Mr.Ben S. Bernanke Chairman Federal Federal Reserve Bank Email bbbernanke.1@gmail.com

 

It's about time "helicopter Ben" got down to work for us little guys.  Of course he wouldn't actually use helicopters!  Do you think I should be concerned that he got the year wrong?

Fri, 02/15/2013 - 12:26 | Link to Comment savagegoose
savagegoose's picture

dont forget to  fill in the  social security number, and bank account details,  Also   any land or house title number.s ohh and the enduring power of atourny? thats just a  small formality.  just fill it in when you have the time,. its incase anything happens to you, andwe have to   sell anything for you  to    give it to your estate

Fri, 02/15/2013 - 12:52 | Link to Comment MassDecep
MassDecep's picture

Notice the premiums for physical are not dipping in unison with spot.

Could we be decupling....

 

Fri, 02/15/2013 - 13:34 | Link to Comment rogeliokh
rogeliokh's picture

"Gold Falls Below $1,600 as Bernanke Says Economy Recovers" :)))

That's it guys, take your Gold to the coin shop now, cause Bernank just print another

trillion $ and everything mysteriously recovers..

And of course, after the fact, Bacon and Soros cut their stakes in GLD, supposedly

last quarter : ) Crooks knew manipulation is coming.

http://www.bloomberg.com/news/2013-02-15/gold-set-for-weekly-drop-as-equ...

Fri, 02/15/2013 - 16:24 | Link to Comment larz
larz's picture

Unable at 1599 stop loss filled at 1591

Fri, 02/15/2013 - 12:03 | Link to Comment Confundido
Confundido's picture

But.. but...how or who is going to stop the bullion banks from expanding the credit multiplier on fiat gold??? The answer to that question is key.

Fri, 02/15/2013 - 12:03 | Link to Comment WayBehind
WayBehind's picture

Time to load the truck!

Fri, 02/15/2013 - 12:19 | Link to Comment Cortez the Killer
Cortez the Killer's picture

but, but Turd said silver was going to $50

 

LMAO!!!!!!

Fri, 02/15/2013 - 12:41 | Link to Comment Non Passaran
Non Passaran's picture

This is way BETTER than Turd's expectation.
If it came true I could not even dream about buying as much as I will in coming days and weeks if the price keeps sliding.

Fri, 02/15/2013 - 12:04 | Link to Comment agent default
agent default's picture

The US mint is out of silver coins.  The Canadian mint is rationing.  Yet PMs drop at a rate of 74000 contracts in 5 minutes.  Someone is scared, and it is not price weakness that is scaring them.

Fri, 02/15/2013 - 12:26 | Link to Comment Shell Game
Shell Game's picture

Scared indeed. Liquidity is being suctioned out of the market right now. Gold:Silver ratio has recently triggered MACD positive.  When CNBS realizes there are two gold markets (paper vs. real) they will be shocked, Shocked! Who knew!? they will say..

Fri, 02/15/2013 - 12:54 | Link to Comment Manthong
Manthong's picture

Today was a gift to China and Russia ..  pretty soon the western Banks and their enforcers (the governments) will have to capitulate and not give up their remaining physical..  And , as it always is with dens of thieves, they are now starting to mistrust each other (gold repatriation).

He who gets out first, gets out best now.

Fri, 02/15/2013 - 13:07 | Link to Comment disabledvet
disabledvet's picture

"and thus be forced to reveal their manthong too!" I mean c'mon...The Morgue is LONG gold...more than likely Lehman was too..which makes you wonder where all that gold ended up. The Fed "which is being front run" can ALSO Hoover up all the gold "at a STEEP discount" since it has already hoovered up every non working dollar on the planet. "as gold and silver deflates so whithers gasoline." I look for "the revenge of Detroit" as new engine technologies start rolling of the assembly lines that get hundreds of miles to the gallon. I think Morgan Stanley might get their euro collapse after all...which is the world's most leveraged commodity currency. If that thing drops below a buck I think then you'll start seeing the military/industrial complex move and move aggressively.

Fri, 02/15/2013 - 13:16 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture
It's the suck before the tsunami.  BTFD
Fri, 02/15/2013 - 12:04 | Link to Comment natronic
natronic's picture

If it falls that only signals BUY MORE!!!

Fri, 02/15/2013 - 12:04 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

I posted this elsewhere, but it bears repeating here:

Hopium zealots are in a constant euphoric lather because the equity markets are approaching new highs.  As was pointed out last week, when the Dow was last this high in October 2007, the price of gold was around $700.  Here's a deeper-dive tale of the "recovery" tape:

Silver: Oct. 2007=$13, Today=$30

Gold:  Oct 2007=$760, Today=$1,620 (or whatever they hammer it to...)

Reported Unemployment:  Oct 2007=4.7%, Today=7.9%

Case-Shiller Home Index: Oct 2007=190.9, Today=144.9

New Home Sales:  2007=774K, 2012=367K

Housing Units Built:  2007=1,500K, 2012=651K

Fed Reserve Balance Sheet: Oct 2007=$873B, Today=$3.11T

Food Stamp Recipients: Dec 2007=28.7M, Today=48.2M

Federal Spending, Annual Rate:  2007=$2.7T, Today=$3.6T

Fed Tax Revenues, Annual:  2007=$2.5T, Today=$2.4T

Retail Gasoline Price:  2007=$2.84/gal, 2012=$3.68/gal

Money Supply:  Oct 2007=$851.6B, Today=$2,760.7B

Personal Bankruptcies: 2007=801K (75% up from 2006), 2012=1,245K

Foreclosures: 2007=405k (40% up from 2006), 2012=742K

 

Don't be fooled by the 'recovery' meme, and be cautious about entering the pre-slaughter sheep pen that is the equity markets.

Fri, 02/15/2013 - 12:17 | Link to Comment Careless Whisper
Careless Whisper's picture

Don't forget about this:

Gold: August 15, 1971 = $35.

Fri, 02/15/2013 - 12:27 | Link to Comment HoofHearted
HoofHearted's picture

Here's the real deal as to whether you should buy PMs. 

Money Supply:  Oct 2007=$851.6B, Today=$2,760.7B

 Me- I'm buying guns and ammo...again!

"Inflation is always and everywhere a monetary phenomenon." -Some dude who won a Nobel prize and used to smack around young Michael Moore types while smiling and being a very pleasant human being (ask Phil Donahue)

Fri, 02/15/2013 - 12:31 | Link to Comment Son of Loki
Son of Loki's picture

nice summary, MK. It confirms what I see in stores and malls.

Fri, 02/15/2013 - 12:08 | Link to Comment drbill
drbill's picture

Good luck trying to buy real gold at this price! Paper gold should eventually go to zero, just like value of paper money. Do you think that they ever heard of Voltaire over at the FED?

Fri, 02/15/2013 - 12:38 | Link to Comment Non Passaran
Non Passaran's picture

It's all very confusing to me, so I just added about 5% to my silver stack..
Will buy more next Monday if price drops further.
I've been waiting for a chance like this! Yes!!!

Fri, 02/15/2013 - 12:04 | Link to Comment Xibalba
Xibalba's picture

China on vactaion, the fuckers will defend their trash paper

Fri, 02/15/2013 - 12:04 | Link to Comment edifice
edifice's picture

So, when QE 3+4 gets going strong, we'll see another divergence? Gold seems to be loosely following BASE money supply.

Fri, 02/15/2013 - 12:05 | Link to Comment swissaustrian
swissaustrian's picture

Negative real interest rates (Gibson's paradox) and the US debt ceiling are closely correlated to gold.

Fri, 02/15/2013 - 12:05 | Link to Comment swissaustrian
swissaustrian's picture

Time for a rebound and a crash in the DOW/gold ratio

Forward rates are down to mid 2011 levels, too, indicating massive physical buying:

http://www.pmbug.com/forum/f2/negative-lease-rates-gold-silver-341/index...

Fri, 02/15/2013 - 12:09 | Link to Comment 847328_3527
847328_3527's picture

Must be why all the central banks are buying...somethings up. My cousin just returned for vacation which included Hong Kong. He said the gold stores there were jammed pack....mostly Chinese from the mainland buying lots of 24k. I guess they are getting tired of high priced RE there.

Fri, 02/15/2013 - 12:06 | Link to Comment nobusiness
nobusiness's picture

fixed, move on.

Fri, 02/15/2013 - 12:07 | Link to Comment BLOTTO
BLOTTO's picture

At the end of the day - nothing has changed in the world. No plan - no improvements...same ole shit.

In fact, its worse...still regressing...

.

MEDIA says - Gold moves 1 step forward and 2 steps back.

REALITY says - Gold moves 3 steps forward and 2 steps back.

Fri, 02/15/2013 - 12:10 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

A very impressive beating in gold so far today.  I will look into it "durante el transcurso del dia" but I will defer to Turd Ferguson and Mr Lennon Hendrix for the explanation du jour of today's rout.  

This will fit nicely into the piece I am working on today, when I finish, I'll put up the link.

"Via Negativa -- Less is More", coming to a cloud near you soon!

Fri, 02/15/2013 - 12:12 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Nobody on eBay is budging re Gold Eagles: $1828 offered, a 14% premium.

See for yourself at 24hgold.com, at the bottom of their Home Page.

Fri, 02/15/2013 - 17:11 | Link to Comment Shell Game
Shell Game's picture

Two markets diverged in the yellow metal and I, I chose the market less traveled by..  --Robert 'Goldfinger' Frost

or something to that effect..  ;)

Fri, 02/15/2013 - 12:08 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

The end is nigh for gold!  Wasn't that the sentiment about the Ravens at the end of the regular season...?

Fri, 02/15/2013 - 12:20 | Link to Comment Temporalist
Temporalist's picture

Nevermore

Fri, 02/15/2013 - 12:08 | Link to Comment Shizzmoney
Shizzmoney's picture

The Chinese and the Russians must be loving this news.

Despite the ball spiking paper bugs will do today, GLD and SLV is STILL not only the safest way to save money in today's ZIRP environment, it's also its most profitable (over the longevity of the past 25 years).

Fri, 02/15/2013 - 12:10 | Link to Comment Confundido
Confundido's picture

You guys are fucking insane!!! YOU BELONG WITH BAUMGARTNER! 

Fri, 02/15/2013 - 12:28 | Link to Comment jimmyjames
jimmyjames's picture

You guys are fucking insane!!! YOU BELONG WITH BAUMGARTNER! 

**********

That's about the 3rd time you've said that today..it upsets you that people aren't rattled by this move?

Fri, 02/15/2013 - 12:27 | Link to Comment The Proletariat
The Proletariat's picture

BTFD!

Fri, 02/15/2013 - 12:11 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

Well, buying precious metals for the positive price action has blown up in my face, but the obvious fact that is pisses someone off to no end will keep me engaged.

 

Goddamned cock smoking rat cunts.

Fri, 02/15/2013 - 12:17 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Buying precious metals for the positive price action may not be the right reason to buy them.  Even when they go up...what are you going to do - unload and "invest" in something else?

Fri, 02/15/2013 - 12:21 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

preserve my purchasing power so I can buy rope soap and dope.

Fri, 02/15/2013 - 12:38 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

I like that better...what's the rope for?

Fri, 02/15/2013 - 12:47 | Link to Comment fuu
fuu's picture

Banksters.

Fri, 02/15/2013 - 21:06 | Link to Comment beachdude
beachdude's picture

Soap on a rope... a 70's thing. Maybe, before your time.

Fri, 02/15/2013 - 12:51 | Link to Comment H E D G E H O G
H E D G E H O G's picture

+1. like your adjective filled dialogue dirtlump. mine is "scrotum sucking bitch rats":)

Fri, 02/15/2013 - 12:11 | Link to Comment ZeroFreedom
ZeroFreedom's picture

Looks like a buying opportunity along with Silver.

Fri, 02/15/2013 - 12:11 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

From the muppets at CNBC:

"The market now seems to be getting used to the more positive frame of mind of a recovering U.S. (economy) - which entails lower probability of continued QE and in turn a lower gold price," MKS Capital said in a note.

http://www.cnbc.com/id/100462399

Anyone that claims a "lower probability of continued QE" is certifiably flat-lining.

Fri, 02/15/2013 - 12:23 | Link to Comment you enjoy myself
you enjoy myself's picture

especially since any reduction in Fed printing has now been explicitly tied to sub 6% UE - good luck with that one.  its almost as if the Fed deliberately chose a benchmark that's not obtainable so that they might keep on inflating the debt away, fund govt spending, and transfer the banks' MBS garbage onto the taxpayers' backs at full value.  

Fri, 02/15/2013 - 12:33 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

I think that whole conditional QE thing effectively puts a 6% floor on the "reported" UE number - 'cuz they can't pull the punchbowl away now.

Fri, 02/15/2013 - 12:13 | Link to Comment slaughterer
slaughterer's picture

Pretty soon gold/silver will be recoupling with QE1 start levels.  

Fri, 02/15/2013 - 12:59 | Link to Comment Bizaro World
Bizaro World's picture

Please remind us what those levels were and your reasoning why they will return to those levels....this is a serious question.

thanks,

BW

Fri, 02/15/2013 - 12:13 | Link to Comment Central Wanker
Central Wanker's picture

Netdania showed volume of 40000 contracts per minute for silver around 10:40 EST. 

Unbefuckinglievable! 

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