Visualizing The "Real" Value Of Everything

Tyler Durden's picture

Measuring market data using fiat currencies can be misleading – even though an asset may rise in dollars, it may be because of declining currency value rather than true economic process. With central banks devaluing currencies at record rates, gold’s steady purchasing power makes it an ideal alternative pricing mechanism.


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disabledvet's picture

Don't know why. Imagine "blowing trillions" and yet no positive discernible benefit can be measured. "some might be perplexed" but if you have a gold standard "everyone can call these people stupid." without a gold standard the madness of just "issuing more DEFICITS" becomes realized as basically the Government stops functioning. It's just a matter of time before a Governor repudiates Federal Authority, starts printing their own currency and and seizes all assets in their State under Ye olde "every State for itself" platform.

prains's picture

i thought you could mine for bitchcoin as well, LOL

palmereldritch's picture

You can.

You just have to have the stomach for it

Pool Shark's picture



Can we see it all priced in Bitcoins?



RockyRacoon's picture

perplexed  ..... really?

Even when presented in comic book form there are those who still don't get it?

BorisTheBlade's picture

Amazing really how far people can go in their denial of things that are right in front of their eyes. I guess they WANT to believe it is not true, they WANT to believe everything goes back to where it was before, they WANT to believe they won't have to make hard choices, they WANT to believe somebody will fix everything. As much as anyone can blame the government, but if it wasn't for active participation of the majority, great many things wouldn't have happenned.

bigkahuna's picture

Its difficult for people in general to have that "oh shit" moment - so they avoid it at all costs. No care for their family, friends, let alone country.

cspg's picture

gold doesn't inflate like has cash- but the cost of extracting it has increased a lot per Oz. can we really call a spade a spade here? especially considering u need a lot of USD to get the gold out of the ground in the first place

jepicza's picture

Do I smell something -- smoking?

kito's picture

Anybody get how stocks act favorable to the hints of tightening ??? Shits getting really weird.....

fonzannoon's picture

they did not tighten today. that's the new time horizon. also deep down everyone knows they are never, ever tightening again.

Dick Buttkiss's picture

So tighten up yourselves, boys and girls, 'cause this is gonna be a wild ride.

BLOTTO's picture

Strange Daze


Its not that you think things are getting weird or are strange...but rather, its more weird and strange then you and I can possibly understand.


Dick Buttkiss's picture

We understand. We're just in that creepy place where we also understand that so few others do that we're increasinly looking over our shoulder.

I mingle daily with otherwise fine, well-educated, and intelligent people who just can't go there. 

As in It can't happen here.

Meaning that it will be all the worse when it does.

TJ00's picture

It's like being in The Matrix.

Here's the scene for those at work.

When Neo wakes up, Morpheus takes him into another program.

They walk down a busy street, full of people going to work. Morpheus casually walks through them, but Neo keeps on being hit or shoved aside. As they walk, Morpheus begins to walk.

Morpheus : The Matrix is a system, Neo. That system is our enemy. But

when you're inside, you look around. What do you see?

Business people, teachers, lawyers, carpenters. The very minds

of the people we are trying to save. But until we do, these

people are still a part of that system, and that makes them

our enemy.

Morpheus : You have to understand, most of these people are not ready to

be unplugged. And many of them are so inert, so hopelessly

dependant on the system, that they will fight to protect it.

Axenolith's picture

When the going gets weird, the weird turn pro.

Hunter S. Thompson

kito's picture

Hints fonz.....hints.....I figured even the mere hint would set the market into a tizzy.....didn't happen that way....odd....maybe we are all the loons...maybe the market is taking hints of tightening as a sign things are getting better....I give up....I'm gaining nothing from this anymore...I should be in stocks....

Professorlocknload's picture

Jawboning. The Fed sure as hell isn't going to announce it's going to keep rates at zirp, thereby messing up it's little mini boom illusion here.

The psychology is intended for the average consumer to say to himself "Wow, the Fed is talking about easing up on it's QE binge. Things must be improving."

"Maybe we should spend before the others, and before prices take off again." 

It's all BS.


francis_sawyer's picture



In the MSM [& I know you know this already]...


That's the world we live in...



If they ever do tighten [just for the LULZ], that'll be the cue that within 30 days they'll completely reverse & unleash the Kracken of all QE...


Bananamerican's picture


.25 basis points-->.50--|

fiscal stewardship and all that...a lil striptease...think of the psych impact of even a couple small moves....

That's all the FED would ever DARE do....COULD ever dare do...Should ever dare do...-PeeWee Herman

malikai's picture

For once I find myself in agreement with you.

All this talk of tightening is the same shit they were doing in 2011 during QE2. The purpose of this excercise, boys and girls, is to provide the impression that they /can/ tighten, which of course they can not.

Just another sleight of hand.

q99x2's picture

And how about

Hinting to nuke the Fukushima spent fuel pools.

Nuclear war is apparently good for stocks too.

Abrick's picture

Stocks react favorably to tightening because it is a nod to the CEOs that there will be more downward pressure on wages. This will mean more hypothetical-short-term-paper profits for the big guys. The market is driven by the people who get to add zeros, they just need a story to sell.

Curt W's picture

If the value of the dollar is tanking, how come the price of gold, priced in dollars is not sky-rocketing?

GoldForCash's picture

Psychological Manipulation of the sheeple to keep them from purchasing gold for their financial benefit.

Harbanger's picture

And to make the dollar look stronger than it really is, that's why there's an effort to devalue currencies, mainly the Yen and Euro.  So Gold price won't be an accurate "pricing mechanism" until it decouples from paper due to demand for physical.

RockyRacoon's picture

That, in fact, is what is happening.  If fits and starts but the trend is there.  Hedgies, etc. are dumping the paper gold which is now affecting the dollar price.   They can see that the jig is about up and don't want to get caught holding paper gold.  The spot price is reflecting this activity.  JPM and others will end up taking the bullet but they'll be hansomely reimbursed for their sacrifice.

e-recep's picture

i just checked the price of gold in GBP. after chavez got his gold back, the price has been converging to a flat line at level GBP1050, of course moving up and down but less so as time goes by.



Central banks are all printing to create inflation which would naturally result in Gold and Silver going up.   If Gold and Silver aren't going up, then they present no challenge to the reserve currency of the world. How do you keep this from happening?  You drive short positions in the market through the use of the banks (JP Morgan) to keep prices below an established range.  If Gold and Silver were allowed to float freely, then people would abandon the dollar and move into hard money. The US govt and the FED understand that they cannot have any alternative to the monopoly of the reserve currency. The whol standard of living for the US is built on this. That is why Gold and Silver cannot be allowed to seen for what they are.  The Fed will eventually lose this battle as other nations are seeing this and started positioning themselves to trade in an alternative currency ( country to country) or they are acquiring massive amounts of gold to use as a hard currency. In China case they are going to try and replace the US dollar but that might take a few more years.  The dollar is dying and the Govt is doing everything they can to forestall that.


Axenolith's picture

I put most of my financial assets into either physical gold/silver or associated stocks starting about 2003.  The average annual return on that since then has been about 30%.  Is that not good enough for you???

I'm gonna go out on a limb here and assume you're not a troll [put the fookin' saws away!].  You're currently looking at a gold doldrum, a mere snapshot, in the midst of the closing of a huge experiment in global fiat currency.  At every other time in history when this type of proclaimed money system has been utilized, it has EVENTUALLY ended in disaster.  There is NO instance of a human created intangible exchange system that has survived the test of time.  Truely, the cratering of such systems often marks the end of a local era, dynasty or empire.

The price of gold will resume it's climb relatively soon.  On average, it takes about a generation for a monetary system, once cut loose from a metallic backing, to crater and we're currently on the long side of that, and only on the long side, IMO, due to the electronic nature of the current system and it's ability to shield the majority of the population from the information and price/economic disclosure they would need to be "stampeeded" out of most of the worlds paper money posthaste.

rich_wicks's picture






If you have no idea how they relate to this situation, well, sucks to be you because I'm now going to throw pearls to swine.

Bananamerican's picture


"If the value of the dollar is tanking, how come the price of gold, priced in dollars is not sky-rocketing?"

 *And then there is the venerable Paul Volcker, who so effectively brought down runaway inflation in the US, starting in 1980. His one regret:

"Joint intervention in gold sales to prevent a steep rise in the price of gold (in the 1970s), however, was not undertaken. That was a mistake." … Former Federal Reserve Chairman Paul Volcker (writing in his memoirs).


css1971's picture

Meh. They would also have to try to manipulate Gold, copper, soy, oil and all the other commodities which have tripled to quadrupled in price over the last decade.

Professorlocknload's picture


"how come the price of gold, priced in dollars is not sky-rocketing?"

My guess is, talk of faltering European systems, Japan on the rocks etc. is supporting the dollar as "perceived" safe haven, at the moment.

Cypriot selling of Au (and soon many other failing European economies) will most likely trigger more selling, in mad dashes for liquidity.

Add "green shoot" machinations in the US, and public faith in PM's has waned a bit here.

It's not an event, it's a process. Wouldn't be surprised to see Au get closer to production cost before heading for the cosmos. Depends on how stupid TPTB get on the way to perdition.



2001 Au $271.

2007 Au $695.

2013 Au $1570.

Adequate? At least to date, maybe?

css1971's picture

I got rid of almost all my GBP and am in USD for the short term.

Add JPY, EUR native currency owners escaping their own government's excesses and the USD is going to be the last man standing. Watch the USD index, gold is trading inverse to that at the moment.

Gold's doing exactly what it's supposed to do. Sitting there, not moving. People natively using USD should be buying gold right now, this isn't going to last.

Curt W's picture

You picked 2001 to show the upward momentum.  But in 1980 it was 800 and thru most of the 80's and 90's it was in the 400 range.

Obviously in 1980 it was in a bubble, and I saw several comments above about manipulation. 

If fiat crashes and ceases to be used, what value do you place on your gold?  Does a gram buy you a ham and loaf of bread and a dozen eggs?

Will every transaction depend on the 2 parties haggleing over the value?

I understand keeping a store of value, but are you going to carry a scale around for every transaction?

earnulf's picture

Because there are upteen millions of paper gold ounces that are traded daily. (I believe the number is well north of 55 million ounces per day) which translates into some 20 Trillion ounces of paper gold traded per year.

Meanwhile the world production of gold is about 2400 tons or 63 Billion ounces a year, of which more than half is being consumed in physical form by China and India alone.

Since there is so, much, more, paper gold being traded, the price of physical gold is immaterial.   Of course when the whole stinkin mess comes crashing down around their ears, all those ounce of paper gold will be gold for starting fires or wiping up the mess (regardless of where it eminated from).    That is when the real value of gold will become known and it will be known that most of the gold is in the hands of the Chinese, Indians and Central Banks.

Got Gold? (or Silver or Lead)


Cabreado's picture

"it may be because of declining currency value rather than true economic process."

Or rather, it may be because chaos, too, is a real thing.

"With central banks devaluing currencies at record rates, gold’s steady purchasing power makes it an ideal alternative pricing mechanism."

The world is not ready for alternatives to truth.
Alternative mechanisms of any kind neglect the real issue...
and the world goes nowhere 'til the liars are escorted away.



If we just keep reminding ourselves, an apple is still an apple, we just  might make it through the chaos that is about to unfold.

prains's picture

What if you could buy a Granny Smith apple that tasted just like the real deal but wouldn't discolor if left on your plate? 




<thanks mess>

WmMcK's picture

And a spade is a spade --

but sometimes I prefer to call it a fucking shovel.