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Dylan Grice: "The Gold Market Is Healthier Now"

Tyler Durden's picture





 

"Gold has become much more affordable in recent days as the price has collapsed. Such a collapse is unpleasant, but not cause for concern," advises Dylan Grice. "Gold remains durable," as a source of protection from loss of confidence in the system, and, he adds "a correction was overdue. Now, the gold market has become healthier." Critically, Grice warns during this interview with Finanz und Wirtschaft, "gold will not protect against a crash in the financial markets, it showed 2008," since if many investors simultaneously urgently need cash, they sell everything they have, including gold. However, Europe is a time-bomb, China's credit bubble is ow where the US was before the financial crisis, and while inflation may not be an imminent threat (and likely shuffled more gold holders out leaving "a more stable investor base,") Grice concludes, "Gold endures. If confidence in the currency is lost, or in the bond market; Gold is a safe haven." There are good reasons to own gold. And to buy gold, there is now a reason more than a week ago: It's 30% cheaper.


Via Finans und Wirtschaft
,

Why the gold price has suddenly dropped so quickly?
There are many opinions, ranging from conspiracy to cyclical or chart-based technical reasons. I have no idea. And I know no one who really knows. Although many people believe, to know the reason, but that's not the same.

Do you have at least a guess?
We still do not know what caused the stock market crash in 1987, and we'll probably never find out. The same applies to the slump in the gold market in recent days. To know the cause, would be nice, but is not so important.

What does the falling gold price?
Each boom has  large corrections, and these are often violent. In the gold market, there was a break in the mid-seventies, the price fell more than 40%. This was painful, and many people wrote back then: for gold - it felt like the end of the bull market; not true. This was a healthy correction. 1987 shares fell 25% in one day, that did not mean the end of the bull market. 1994 broke the bond market. In 1997, the Asian markets, but in both cases continued to rise.

Can the translate that directly to the gold market?
The collapse does not necessarily mean that the gold bull market is over. They could indeed be over, but I think not. And in view of the great whole, such a collapse is not important, even if it is violent and unpleasant course. There are good reasons to own gold. And to buy gold, there is now a reason more than a week ago: It's 30% cheaper.

So is this a buying opportunity, or should we come to doubt the bull market?
I have no idea if the gold price rises or falls in the coming months. But gold endures. The market strategist Marc Faber argues, the share price of Apple had fallen much more than gold. But what will happen with Apple in ten or a hundred years? That nobody knows, and this applies to all companies and for most currencies. All we know is: A gold bullion a hundred years ago is the same as a gold bullion now. In Roman times, they said "let himself pay one ounce of gold a decent toga and a meal," that is still true today.

The price of gold fluctuates but violently.
Yeah, we just saw a spectacular fluctuation. But owning gold brings with it durability. This makes gold as an investment is very attractive.

Discontinuity does not fit into a durable investment.
Gold is up for twelve years in a straight line, which is extremely unusual. Since it takes a downsizing, a certain liquidation. This is not unnatural. While this largest price drop in the past thirty years is unusual, on the other hand, these unusual incidents occur quite often in financial markets. A correction was overdue. Now, the gold market has become healthier.

Gold will now be seen as less?
The mood in the financial markets has changed. Investors have become more confident that the worst is over and everything will be all right: Europe has solved its problems in principle, that the U.S. is on track, and China beat well. I had predicted that China will have a difficult year 2012, but it has not materialized. All this ensures optimism. Those who had bought gold for fear of imminent higher inflation, perhaps now sees no more danger of inflation and thus an end to the gold price increases - why should he keep gold?

Is inflation coming?
I was never bullish for gold, because I assumed higher inflation is imminent. Inflation is slow and is a long-term problem. You will not see it suddenly - such fears I've never understood. But those who acquired gold for the wrong reasons, it may now be sold. Those who maintain it now belongs to a more stable investor base.

The market sentiment has not brightened rightly
Look around: States and financial systems are deeply in debt, interest rates can not fall further, real interest rates are negative, we live in a world of financial repression. The best possible outcome would be a gentle rise in interest rates in the coming years. This would be accompanied by negative real interest rates, because that is the only way for governments to gradually reduce their debt burden. In this scenario, long-term interest rates remain extremely low and therefore overvalued stocks and bonds. That's not a bad environment for gold.

What are worse scenarios?
The danger is that the central banks lose control of inflation and interest rates. This is a deadly combination for the bond market, and also for stocks that showed up in the seventies. There are also other dangers: Europe is a time bomb. The euro was supposed to bring peace and prosperity and has instead caused a split. China deregulated the financial system, and the debts have grown significantly. The country is now where were the U.S. was before the financial crisis. This is a dangerous game. On credit expansion sooner or later followed by a reduction in debt. The consequences of this are evident in the U.S., Spain, Ireland, in the euro zone - also politically and socially. That will not be any different in China.

Gold rose in parallel with the expansion of central bank balance sheets. This is no longer?
I am very careful of such correlations. As I learned as a student with extensive econometrics, you can in fact establish a correlation between rainfall in Scotland and the money supply in the UK. Correlations do not mean much, even if the relationship between central bank balance sheet, fear of inflation and the gold price is reasonable. The fear may subside, then breaks up the correlation.

Should central banks in emerging markets buy more gold?
I do not know. If I were central banker, I would certainly do that.

Gold is not a safe haven anymore?
Gold will not protect against a crash in the financial markets, it showed that in 2008. If many investors simultaneously urgently need cash, they sell everything they have, including gold.  If confidence in the currency is lost, or in the bond market, then gold is a safe haven. This happened to some extent in the seventies. Holding gold before the last crash was the right choice and it is now more than ever. I suppose I do not know how to evaluate permanence, but it is worth a lot to me.

 


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Tue, 04/16/2013 - 20:32 | Link to Comment badandrew
badandrew's picture

Fuck gold, buy lead.

Tue, 04/16/2013 - 20:34 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Lead is fungible.   ;-)  ;-)

Tue, 04/16/2013 - 20:45 | Link to Comment Croesus
Croesus's picture

You can't eat lead.

Well, you can, but it's not good for you.

 

 

Tue, 04/16/2013 - 20:50 | Link to Comment Manthong
Manthong's picture

 

.. maybe a lead colonic?

 

 

Tue, 04/16/2013 - 21:04 | Link to Comment AssFire
AssFire's picture

Brass and Lead, Gold and Silver..Speak of the Destruction!...I'm in a time zone.....

http://www.youtube.com/watch?v=B5S-q1gRxvw

 

Tue, 04/16/2013 - 21:09 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Don't forget your gunpowder if you're buying lead.  http://www.youtube.com/watch?v=yyGAvulgWmw

Tue, 04/16/2013 - 21:57 | Link to Comment fourchan
fourchan's picture

i still dont know who i thank for putting gold on sale. and the stack grows higher.

Tue, 04/16/2013 - 22:22 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

I hope to add to my stack tomorrow as well.

Tue, 04/16/2013 - 23:13 | Link to Comment Scarlett
Scarlett's picture

got 9 yellow presents for myself today

Wed, 04/17/2013 - 01:27 | Link to Comment Harlequin001
Harlequin001's picture

Did you pay for it, with bitcoins?

Tue, 04/16/2013 - 22:03 | Link to Comment Harlequin001
Harlequin001's picture

'"gold will not protect against a crash in the financial markets, it showed 2008," since if many investors simultaneously urgently need cash, they sell everything they have, including gold.'

Hey Dylan, given your statement above can you explain the 400 tonnes of FUTURES sales that drove gold down through support at $1540. That's not a physical gold sale to raise cash, that is a speculative short sale.

Either that or shut the fuck up, investors don't take on massive short positions because they're skint. It was a well timed and deliberate take down through long term support, pure and simple.

Tue, 04/16/2013 - 21:01 | Link to Comment ACP
ACP's picture

You can sell it to China, who will make toys out of it and them back here.

Tue, 04/16/2013 - 21:54 | Link to Comment the 300000000th...
the 300000000th percent's picture

you only eat lead once

 

Wed, 04/17/2013 - 00:06 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

"You can't eat lead. Well, you can, but it's not good for you"

Specially at 3200 ft ps.

Tue, 04/16/2013 - 20:35 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Crashes ain't always healthy boys. My sex life crashed 9 years ago and I still have no "up"trend in my charts.......

Disclosure: 19 years in.......rent, don't buy.

Tue, 04/16/2013 - 20:41 | Link to Comment fonzannoon
fonzannoon's picture

maybe you should sell?

Tue, 04/16/2013 - 20:43 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

Fuck, I just put in a bid!!!!!!!!!

Tue, 04/16/2013 - 20:49 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Dude, if you can cut the check to make me whole, she's yours..............that's gonna be one costly purchase though......

Tue, 04/16/2013 - 20:55 | Link to Comment Major Major Major
Major Major Major's picture

Nobody is looking to pay for your sunk cost. If you are truly looking to exit your losing position, make a rosy forecast and fuck with the discount rate. You never know, there is a sucker born every day.

Tue, 04/16/2013 - 21:08 | Link to Comment FEDbuster
FEDbuster's picture

Let's not forget 19 years of depreciation.

Tue, 04/16/2013 - 21:15 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Yep, that vehicle has been "ridden hard" and put up "wet".  Now, in order to avoid that financial hit, I do a Paulson/Geithner/Bernanke.  Pretend everything is ok while screwing on the side.......

Tue, 04/16/2013 - 21:26 | Link to Comment FEDbuster
FEDbuster's picture

Hopefully she won't find out and "Bobbitt" you in the middle of the night.

Tue, 04/16/2013 - 21:43 | Link to Comment Ness.
Ness.'s picture

Is it safe to assume that your avatar isn't the most recent pic of Mrs. Hedgie (No offense to Mrs. Hedgie, of course)?

Tue, 04/16/2013 - 22:44 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Good assumption.  Otherwise, you'd never see me posting here.........would be too busy eating Skittles.

Tue, 04/16/2013 - 21:06 | Link to Comment Frozen IcQb
Frozen IcQb's picture

According to the FED, non-productive assets may be leased.

Tue, 04/16/2013 - 21:29 | Link to Comment therover
therover's picture

Sometimes it costs too much to sell. Might as well leverage up and play the deriviatives market. 

Tue, 04/16/2013 - 21:40 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

hedge... try drugmeds..Indian site... you can get generic Viagra for under $1.00.

Tue, 04/16/2013 - 20:47 | Link to Comment Croesus
Croesus's picture

@ Ihedgemyhedges:

Why buy the cow, when you can get the milk for free?

Tue, 04/16/2013 - 20:52 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Where the hell were you 19 years ago???????? Besides, I "buy my milk" elsewhere now.........

Tue, 04/16/2013 - 21:01 | Link to Comment HulkHogan
HulkHogan's picture

raw?

Tue, 04/16/2013 - 21:38 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

Buy gold and silver, then buy lead to protect it.

Wed, 04/17/2013 - 00:03 | Link to Comment TraderTimm
TraderTimm's picture

Watching the gymnastics involved in defending a Gold decline is really illuminating. You'd think for a second it was something else. Every market goes through bull and bear phases, why lose the "plot" because it gets marked down in paper tokens?

Its the same reason why people don't panic over Bitcoin - there's more to it than a bunch of trolls here yelling "SELL".

Wed, 04/17/2013 - 03:30 | Link to Comment tenpanhandle
tenpanhandle's picture

I'm with you on the gold part, but I panicked over Bitcoin and I didn't even own any.

Wed, 04/17/2013 - 09:07 | Link to Comment tango
tango's picture

In fact, going to the store today for some gold.   Great price drop and buying opportunity.   I tried to tell my boys that having lots of savings meant that in hard times, products and services can be cheaply acquired.  In 2008, we bought condos and land from folks who "HAD" to sell.  Best investment ever except maybe this.  

Tue, 04/16/2013 - 20:32 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

"Healthier"?  As in short supply of bullion?  Same as with G+A:  in short supply.

Tue, 04/16/2013 - 20:52 | Link to Comment fonzannoon
fonzannoon's picture

My guy today had both, I had to pay up for it though. $29 for ASE. They sure are pretty though.

Wed, 04/17/2013 - 06:31 | Link to Comment new game
new game's picture

26.65ea/533 for tube this morn at B.D.(Austin TX) 14 percent prem. plus shipping.  +- as price changes slightly 2012 AE's

Tue, 04/16/2013 - 20:44 | Link to Comment kill switch
kill switch's picture

http://www.youtube.com/watch?v=DoQwKe0lggw

 

Gold is the only thing,,,,,,And will never be abandoned

Tue, 04/16/2013 - 21:05 | Link to Comment kill switch
Tue, 04/16/2013 - 21:17 | Link to Comment kill switch
kill switch's picture

http://www.youtube.com/watch?v=MLhn9tc8Dvo

 

All for gold

Would these guys fight fot FRN's

Tue, 04/16/2013 - 20:37 | Link to Comment Hopium Dealer
Hopium Dealer's picture

R.I.P. paper gold and paper silver

Hello physical shortage.

Tue, 04/16/2013 - 20:46 | Link to Comment RobD
RobD's picture

I stopped by my local coin shop today. They had no silver bars other then some custom bars they had made that the try to sell at outragious premiums. They only had 3 1oz gold bars.

Tue, 04/16/2013 - 20:36 | Link to Comment 1971
1971's picture

Tyler, if nothing funny happens on Friday can u show a video of that dude with the bat breaking shit while ranting about the economy.

Thanks

Tue, 04/16/2013 - 21:22 | Link to Comment FEDbuster
FEDbuster's picture

You mean Kevin "walstreetpro2" Rowland.  Here is Drutter's excellent compilation video "Best of walstreetpro2 (greatest fucking hits) number 1 of 3 (watch all 3):

http://www.youtube.com/watch?v=4k4xPUZRdC0

BTW I really miss Kevin's insights into the Grand Ponzi.

Tue, 04/16/2013 - 22:41 | Link to Comment freewolf7
freewolf7's picture

That was hilarious! Was his Mom pissed when she got home?

Tue, 04/16/2013 - 23:02 | Link to Comment FEDbuster
FEDbuster's picture

No Mom, just a wife and kids.  You have to watch the other two "greatest fucking hits", they are even better.  The wife made him move his commentaries out to the shed where things made in China went to die.

Tue, 04/16/2013 - 23:07 | Link to Comment Intoxicologist
Intoxicologist's picture

LMAO!  Reminds me of that time I tried to quit smoking.

Tue, 04/16/2013 - 20:39 | Link to Comment McMolotov
McMolotov's picture

"Gold On the Ceiling" by The Black Keys:

http://www.youtube.com/watch?v=OAdTbE9LAtY

I ain't blind, just a matter of time before you steal it...

Tue, 04/16/2013 - 20:40 | Link to Comment fonzannoon
fonzannoon's picture

Let's keep ignoring the elephants in the room. Most gold is owned in the paper form. So it is not healthier now. It is sick. Until people understand the difference this bullshit continues and people like Grice will continue to miss the main point. If you don't hold it, you don't own it.

In the meantime interest rates will stay low until people forget they ever used to earn interest and ratings agencies will continue to be neutered and inflation will be falsely measured.  There will be no economic recovery and we will live in this Orwellian nightmare until something gives.

 

Tue, 04/16/2013 - 20:45 | Link to Comment McMolotov
McMolotov's picture

As part of my ongoing bank jog, I closed a savings account this morning and gave "pathetically low interest rates" as the reason I was doing it. The bank lady just kind of smiled at me sympathetically, like I wasn't the first person who'd said that.

Tue, 04/16/2013 - 20:57 | Link to Comment CheapBastard
CheapBastard's picture

McMolotov, you need to switch to one of those "High Yield" savings account they advertise...so you can reap a whopping 0.02% interest.

Tue, 04/16/2013 - 21:18 | Link to Comment fonzannoon
fonzannoon's picture

I think we all need some perspective

"In a report published Monday, Goldman Sachs reiterated its Sell rating on H.J. Heinz Company (NYSE: HNZ[FREE Stock Trend Analysis]), but slightly lowered its price target from $54.00 to $53.00.

Goldman Sachs noted, “We remain Sell-rated on HNZ and lower our 12-month price target to $53 from $54 given lower estimates following the devaluation of the Venezuelan currency. We use a blended P/E & EV/EBITDA methodology based on 5-year average 15X P/E and 10X EV/EBITDA to arrive at our target price.

aaannd

"Goldman Sachs Group Inc is cooperating with a U.S. Securities and Exchange Commission probe into insider options trading in H.J. Heinz Co before the food company announced it was being acquired, Goldman said on Friday."

 

Tue, 04/16/2013 - 21:57 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

I just took a Goldman....  Could not flush fast enough.

Tue, 04/16/2013 - 21:49 | Link to Comment wee-weed up
wee-weed up's picture

Yeah, I had a bank functionary try to interest me in one of their savings accounts that "paid a higher interest rate"...

I just looked at her with my best, "You've gotta be shittin' me!" look. She changed the subject.

Tue, 04/16/2013 - 23:10 | Link to Comment FEDbuster
FEDbuster's picture

They are forced to ask you in a pathetic attempt to "cross sell" every customer.  I won't bank at a TBTF/TBTJ bank, I keep a couple months of expenses in a local bank which doesn't bother asking me any stupid questions (plus there are never long lines).  

Wed, 04/17/2013 - 20:03 | Link to Comment StychoKiller
StychoKiller's picture

Do some research on "Tax Lien Certificates"

Tue, 04/16/2013 - 20:54 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Grice says "no one knows" why gold and silver were smashed. Haha...

Hard to take these types seriously anymore. Its pathetic.

Tue, 04/16/2013 - 20:57 | Link to Comment AllWorkedUp
AllWorkedUp's picture

+1 Fonz

 Yeah, gold is a helluva lot helthier now that we know bullion banks and their minions can throw 1000 tons of paper gold at the price to force it down. I'm feeling alot healthier.

and yet we hear of shortages, LBMA and CME defaults and the paper pushers are still firmly in control with their futures, options and criminal ETF's. Why don't Paulson and Einhorn demand phyzz in exchange for their GLD share just to see if they even have any phyzz?

Fuck you Grice

Tue, 04/16/2013 - 21:55 | Link to Comment DirkDiggler11
DirkDiggler11's picture

Who the fuck is this guy ??? That was a real informative interview.

Question: So what to you think will happen with the price of gold?

Grice: Well, it might go up, then again it might go down.

Grice missed his calling in life, he should have been a local weather forecaster. Shit, he could even be the next Willard Fucking Scott I'll tell ya.

To echo the eloquent, yet beautifully articulate statement from AllWorkedUp,

FUCK YOU GRICE !

Tue, 04/16/2013 - 22:09 | Link to Comment BeanusCountus
BeanusCountus's picture

Not sure if I hit the up arrow or down, but you have summarized the big picture as well as anyone. Well done.

Wed, 04/17/2013 - 06:42 | Link to Comment new game
new game's picture

new version of econ hunger games.

sacrificed / gold/silver complex to support your faith and full backing of FRN's backed by the full faith in the USSA complex backed by the branch of military which will be on demand to protect against any breach of confindence withstanding the pledge to all reported agencies of government which will enforce controls in your best and secure future.

Tue, 04/16/2013 - 20:41 | Link to Comment ebworthen
ebworthen's picture

A better correction than the cotton candy equity markets.

More true, more tangible, more real, not necessarily less manipulated.

Those central bankers are DESPERATE to suppress alternatives to their fiat toilet paper.

Tue, 04/16/2013 - 20:44 | Link to Comment CunnyFunt
CunnyFunt's picture

Mrs. Funt found a '41 quarter in her change today. A good omen.

Tue, 04/16/2013 - 20:51 | Link to Comment RobD
RobD's picture

My daughter found two war nickels in her piggy bank last week.

Tue, 04/16/2013 - 20:55 | Link to Comment McMolotov
McMolotov's picture

That's weird. I found two war piggies in a bank last week when I was getting rolls of nickels, like Kyle Bass suggested.

Wed, 04/17/2013 - 00:23 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

I don't know why everyone wants american nickels....
They are not made of nickel.
Mainly copper,and a little nickel but not much.
Have been for a long time.

Older canadian ones where up to like 1982 or so only .
Then made of crap too...mainly steel now.

Wed, 04/17/2013 - 03:36 | Link to Comment tenpanhandle
tenpanhandle's picture

shit, there goes my retirement.

Wed, 04/17/2013 - 07:17 | Link to Comment CunnyFunt
CunnyFunt's picture

75/25 Cu/Ni is better than Zn, Fe, Al, etc.
The nickel has the greatest metal value per face value of circulating American coins presently being minted.

Tue, 04/16/2013 - 20:44 | Link to Comment ebworthen
ebworthen's picture

OMFG.

Talking heads saying "we need bodies" and giving illegal immigrants amnesty is the "path to prosperity".

More fucking reasons for me to file for S.S. Disability and milk the fucking system, not work, take what I can get.

Sell me out for fucking illegal immigrants and visa holders and you can stretch your back to suck your own cock you money-grubbing dumbfucks.

Tue, 04/16/2013 - 20:51 | Link to Comment Dr. Engali
Dr. Engali's picture

We need some more gold bears for this market to turn bullish. The trees need to be shaken some more and the weak players driven out.

Tue, 04/16/2013 - 21:04 | Link to Comment fonzannoon
Wed, 04/17/2013 - 06:50 | Link to Comment new game
new game's picture

at 800 and 50:1 that put silver at 16.

20:1 = 40????

1000,   20

50???

whatever happen to the long standing ratio?

thinking silver more attractive, but small add at 23.10, but 95% powder dry as a bone meal dust in the desert...

Tue, 04/16/2013 - 21:13 | Link to Comment lickspitler
lickspitler's picture

That's right stackers talk it up if it won't go up on it's own.

 

UNSTACK BITCHEZ

Tue, 04/16/2013 - 20:49 | Link to Comment JustObserving
JustObserving's picture

And to buy gold, there is now a reason more than a week ago: It's 30% cheaper.


US stock market would be a lot healthier if it were 30% lower.  So would the bond market.  Please do not state the obvious.

Tue, 04/16/2013 - 20:54 | Link to Comment CheapBastard
CheapBastard's picture

Housing market would also be alot healthier, JO, if it were 30% cheaper then now....more in line with real wages.

Wed, 04/17/2013 - 00:13 | Link to Comment dr.charlemagne
dr.charlemagne's picture

The world financial system would be a lot healthier if gold was 330% higher and housing, stocks, and treasuries were 30% lower........thats the world without the fed

Tue, 04/16/2013 - 20:49 | Link to Comment fonzannoon
fonzannoon's picture

Syria

Kentucky

"Investigators combing through the aftermath of the deadly Boston Marathon terrorist attack have recovered a circuit board in the area of one of the two blasts that they believe was used to detonate the bombs, according to an official briefed on the investigation."

Do they go with the middle eastern death to america guy or the NRA good old boy with 22 AR 15's and a Ron Paul tatoo on his ass and 3 gold bars down his pants?

http://www.huffingtonpost.com/2013/04/16/trigger-boston-marathon-bomb_n_3094742.html

Tue, 04/16/2013 - 20:50 | Link to Comment Dr. Engali
Dr. Engali's picture

Obummer wants to disarm America ,so as a bitter clinger I'm going with B.

Tue, 04/16/2013 - 20:52 | Link to Comment fonzannoon
fonzannoon's picture

The problem I have with B is it laves the whole rollover 1981 plot out in the cold and therefore we are back to square one with the gold selloff. That being said I am inclined to agree with you.

Tue, 04/16/2013 - 20:49 | Link to Comment ebworthen
ebworthen's picture

Current hysteria is to disarm every Patriot and let the "government" protect us from ourselves.

And then, when we are "protected" we are unable to defend our own freedoms and must bow down to the proletariat.

Tue, 04/16/2013 - 21:43 | Link to Comment nmewn
nmewn's picture

Pretty much.

Its incredible that the statist meme they trot out could be even taken at face value...they protected no one in Boston...lol.

Tue, 04/16/2013 - 22:05 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

My money is still on Lance Armstrong .  That SOB is boiling over because he can't make his 200 million and also run the Boston.  Plus that would explain why Lance waited till the leaders finished when the bomb went off.  He wants to race against those guys in the future.

Tue, 04/16/2013 - 20:48 | Link to Comment blindman
blindman's picture

buy a mcnugget , get a free gold oz. !
coming to a golden arch near u !

Tue, 04/16/2013 - 20:52 | Link to Comment McMolotov
McMolotov's picture

Ain't nobody gettin' free gold from me. I will, however, accept gold as payment for incendiary devices.

Tue, 04/16/2013 - 20:52 | Link to Comment monopoly
monopoly's picture

The "good old boy" theory. Don't you think if it were so called "real terrorists" they would have detonated at the beginning of the race for maximum effect? As sad as this is you cannot stop deranged people from doing anything, especially if they are ready to die.

That....is the world we live in. Sad but true.

Tue, 04/16/2013 - 20:52 | Link to Comment CheapBastard
CheapBastard's picture

'Cheap' is my middle name!

I had to buy moar...because....

 

I'm a Cheap Bastard !

Tue, 04/16/2013 - 20:54 | Link to Comment Prairie Dog
Tue, 04/16/2013 - 20:54 | Link to Comment Prairie Dog
Tue, 04/16/2013 - 20:59 | Link to Comment fonzannoon
fonzannoon's picture

Thanks Praririe that was a decent write up. I particulary like this point.

7. Gold will survive after the world economy crumbles: Gold is the ultimate currency, as it has a value that will survive even after the whole world tumbles around you. Get yourself some gold coins and a Glock and you will be just fine when the whole world goes to shit. We welcome the era envisioned in the movie Mad Max.

Other than the world "welcome" that may be the best analysis around.

Wed, 04/17/2013 - 06:58 | Link to Comment new game
new game's picture

THE 2 G THEORY OF SECURITY - ultimate prtection from the ones looking out for you.

2g too ya..

got gold and glock?

kinda like that

Tue, 04/16/2013 - 20:59 | Link to Comment Bay of Pigs
Bay of Pigs's picture

I read that and its a total waste of time. My opinion of Ritholtz now stands at zero. Hes a fucking idiot on gold.

Tue, 04/16/2013 - 21:06 | Link to Comment fonzannoon
fonzannoon's picture

I hope you did not read that because of me. I'm sorry. I am too tired today, I should have just said what you said.

Tue, 04/16/2013 - 21:15 | Link to Comment Bay of Pigs
Bay of Pigs's picture

lol...no sweat fonz. I'm willing to read anything. That kind of yellow journalism and propaganda just hardens my convictions.

Tue, 04/16/2013 - 21:10 | Link to Comment McMolotov
McMolotov's picture

Someone on ZH pointed out an article this morning, and I'll post the link again because I thought it was interesting:

http://www.alhambrapartners.com/2013/04/15/we-have-seen-gold-prices-act-...

I thought maybe Tyler would have had something to say about it. It makes a lot of sense.

Tue, 04/16/2013 - 21:20 | Link to Comment Dr. Engali
Dr. Engali's picture

Good article thanks for the link.

Tue, 04/16/2013 - 21:57 | Link to Comment Croesus
Croesus's picture

@ Dr. Engali & McMolotov: 

Remember this post about Gold's Inverted VIX term structure (from yesterday) ?

http://www.zerohedge.com/news/2013-04-15/golds-vix-term-structure-most-i...

Tie that in with the article that McMolotov posted the link to, and see if your "Spidey-senses" are tingling?

Something really big is coming. Something happened in "The Financial Zone" that caused the Gold selloff.

Methinks we're about to find out what, and it won't be good.

 

Tue, 04/16/2013 - 21:57 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Agreed. Great stuff. Really puts matters into perspective.

Wed, 04/17/2013 - 07:01 | Link to Comment new game
new game's picture

cash isn't safe? since when; i demand an investigation!

Tue, 04/16/2013 - 21:48 | Link to Comment imbrbing
imbrbing's picture

Excellent article, more pieces of the puzzle come together. Thanks for the link!

Tue, 04/16/2013 - 21:58 | Link to Comment xtop23
xtop23's picture

+1 

Great read. Very interesting.

Tue, 04/16/2013 - 23:29 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

@ McMolotov

+ mucho for the very interesting article, thanks for re-posting it, I did not see it earlier today.

Tue, 04/16/2013 - 21:38 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Yeah, Barry thought he was being cute and funny. Turns out he knows jack shit. Try this Barry: Gold is the ultimate store of value and can be used as collateral or as a security instrument without counter-party risk. Also, if you're smart, you don't get taxed to high heaven by owning it.

Can't say that about stocks, can you?

Ritholtz is an idiot. I have little respect for anyone who responds to comments on his own blog.

Seriously, talk to anyone who knows something about finance (not your local banker, usually) and say you want to buy a piece of real estate and the seller wants some security. Would you show him a few gold bars or your eTrade account?

Now the eTrade account may have value, but can you turn it over to him or a third party for safe-keeping? Uh-uh. That's the point almost everyone misses. Gold (and silver) are respected stores of value that really don't fluctuate wildly, usually. This period we're in now is not normal. We're on the cusp of global financial collapse and I believe that qualifies as "this time is different" because it really is. Never has the world seen so much rampant money creation by central banks. It's not normal, nor is it legitimate.

Gold will rebound sharply when 1) the EFTs are exposed as frauds, 2) the system eventually implodes. That's two good up-moves still awaiting the patient future.

I am willing to wait. Barry can suck Bernanke's dick in the meantime.

Tue, 04/16/2013 - 21:11 | Link to Comment Croesus
Croesus's picture

Next he'll trot out the "But Gold doesn't pay a dividend" argument.

If gold has no utility or use, WHY ARE CENTRAL BANKS ACCUMULATING IT?

Why is JP Morgan's Gold Vault conveniently located right next-door to the NY Fed's vault?

Why is it going to take 7 years for Germany to get a portion of its "useless Gold" back.

Look, forget the complicated theories, stick to the basics:

The World is run by Banksters. At the top of the Bankster pile sit the Central Banksters. The Central Banksters, for some "unknown reason" have decided that they need to have piles of a "useless yellow metal", even though it doesn't pay a dividend. Since the Central Banksters run the money (& the world), do you think maybe it'd be a good idea to "do what The People Who Rule The World do", or "do what Barry Ritholtz thinks is a good idea"?

Ritholtz, Shitholtz. 

Tue, 04/16/2013 - 21:25 | Link to Comment Dr. Engali
Dr. Engali's picture

Good enough argument for me. I'm in.

Tue, 04/16/2013 - 22:44 | Link to Comment Prairie Dog
Prairie Dog's picture

In this company, I wear my minus votes as a badge of pride.

cult(klt)

n.
1.
a. A religion or religious sect generally considered to be extremist or false, with its followers often living in an unconventional manner under the guidance of an authoritarian, charismatic leader. b. The followers of such a religion or sect. 2. A system or community of religious worship and ritual. 3. The formal means of expressing religious reverence; religious ceremony and ritual. 4. A usually nonscientific method or regimen claimed by its originator to have exclusive or exceptional power in curing a particular disease. 5.
a. Obsessive, especially faddish, devotion to or veneration for a person, principle, or thing. b. The object of such devotion.

 

Tue, 04/16/2013 - 23:29 | Link to Comment Croesus
Croesus's picture

@ PrairieDog:

+1 for you!

You can knock me all you want, pal. 

When I sold my tech stocks and bought Gold, people thought I was crazy. Then dotcom's blew up. When I sold my houses a few years later, and bought more Gold, again people told me I was crazy. The housing market crapped out. When I cleaned out my 401K's and bought more Gold, again I was told that I was crazy. But Lehman had just collapsed, so I decided to buy the dip.

Fast-forward to now.

My entry points into PM's were unintentionally well-timed, so I really don't care if the market does drop some more. It can drop a lot more, and I'm still way ahead.

As far as I'm concerned, Gold has allowed me to save up a lot of money. If I had listened to CNBC, Jim Cramer, or any of the rest of these so-called experts, I would be financially screwed.

So you look at me, and think "foolish cultist" because I have a degree of respect and reverence for Gold, and my fellow "cultists". Why shouldn't I? Gold asks nothing from me, and treats me fine. Gold has done alright by me. 

Yeah, I'm still probably crazy, but most of the people that know me are now saying things like "Man, I wish I'd listened to you back then".

 

 

Wed, 04/17/2013 - 03:22 | Link to Comment Prairie Dog
Prairie Dog's picture

Good for you. I wish you health and long life.

 

Wed, 04/17/2013 - 07:13 | Link to Comment new game
new game's picture

not to mention he has that dick head look with the voice to match.

why do other humans give these fucks any notoriety?

dont get it...

Tue, 04/16/2013 - 20:57 | Link to Comment dolph9
dolph9's picture

This isn't going to end until gold and silver become universal.

In other words:  this isn't over until virtually every single person on the entire planet appreciates gold and silver as stores of value, allocates what they can, and keeps them secure.

When this happens they will coexist alongside fiat currencies and serve as an anchor for prices.  The prices for most things will drop, and lending will once again entail significant risk.  This is a system that can be stable for a long time.

It is INSANE to entrust your personal wealth to the whims of politicians and bankers.  We must aim for no less than a revolution in human thought.

This is not utopia.  It's an inevitability.

Tue, 04/16/2013 - 21:12 | Link to Comment AlphaHunter001
AlphaHunter001's picture

" This is a system that can be stable for a long time."

 

Having any kind of fixed system is inherently unstable, as it can't handle shocks - such as trying to corner the market. This is the problem with bitcoin, only so many bitcoins available and people are cornering the market.

 

No system built off a fixed supply of anything can ever work, we all know that.

Tue, 04/16/2013 - 21:55 | Link to Comment imbrbing
imbrbing's picture

So it is always going to end up fucked, whatever model we use.

Fixed supply = fail

Infinite growth = fail

We are screwed no matter what we do!

Tue, 04/16/2013 - 20:56 | Link to Comment tony bonn
tony bonn's picture

on the whole, grice is an idiot.

Tue, 04/16/2013 - 21:00 | Link to Comment dogbreath
dogbreath's picture

Its still a week and a half till options and contract expiry.  I think this battle is between the naked shorts and the standing for delivery longs.  I don't really trust the specs.   Thats likely what ABN-Ambro was about.  All deposits/contracts settled in cash.  There is no delivery.  Are we on the cusp of comex default.   What will this do to Bitcoin?

Tue, 04/16/2013 - 21:01 | Link to Comment Yen Cross
Yen Cross's picture

 I'm long usd/jpy Bitchez 

Tue, 04/16/2013 - 21:03 | Link to Comment disabledvet
disabledvet's picture

not to be too blunt but quite honestly GOLD IS IRRELEVANT. you're asking me to choose an entire asset CLASS that only amounts to couple hundred billion total...versus say "a war effort for the next twenty years" worth 10 times that. there's no way i'm not buying into that war effort. it's not that gold hasn't "bottomed" or "topped"...it's just not offering up the "total return potential." hell even oil is looking kinda puny here. think about it: "how much economic activity is some boring old electric utility generating?" at first glance...pretty much zero. now start factoring in "the coal mine." now start factoring in "the rail line." now start factoring in "the railroad." now start factoring in "the utility poles." now start factoring in "the utility crews." now start factoring in "the end user." now start factoring in "a consumer class." that boring utility is generating BILLIONS in economic output. and you're telling me i can't make money lending into that? with interest rates "at or near zero forever" and a Federal Government only interested in cutting a check? with inflation this low and falling i'm telling you these banks can make 100's of BILLIONS lending into that. "and that's just for starters." we COULD have a recession here of course. but because "we have at or near zero growth" instead...well, let's just say "this ain't no Ponzi scheme folks." and of course "Government can't get out of it's own way" (taking all the "savings" from slashing DOD and putting it to "work" via HMO's and road building? RETARDED!) In short...WHO THE PHUCK IS DYLAN GRICE?

Tue, 04/16/2013 - 21:06 | Link to Comment fonzannoon
fonzannoon's picture

KITO WE FOUND HIM

Tue, 04/16/2013 - 21:15 | Link to Comment kito
kito's picture

Disabled Vet!!!! Are you ok??.... I hope you haven't been having 'nam flashbacks....its ok DV....you are safe.....we are not the Vietcong.....no need to attack.......

Tue, 04/16/2013 - 21:17 | Link to Comment McMolotov
McMolotov's picture

LMAO again.

Tue, 04/16/2013 - 21:27 | Link to Comment fonzannoon
fonzannoon's picture

Everyone this is the biggest announcement I have ever made on ZH...so...here it goes.....

KITO MAY BE BUYING GOLD!!!

I'd say this officially puts us at about the 4 minute mark of the video!

http://www.youtube.com/watch?v=-sAxrWl5DGU

 

 

Tue, 04/16/2013 - 23:26 | Link to Comment Pareto
Pareto's picture

Kito buying gold!!  Bullshit.  I call bullshit.  Never.  He will not own one flake.  EVER lol

Tue, 04/16/2013 - 23:24 | Link to Comment Pareto
Pareto's picture

holy crap.......ok Disabled.  You gotta get off the pipe man.  really.  completely off - as in push away from the table man.  just push away.  Its that easy.

Tue, 04/16/2013 - 21:08 | Link to Comment Cabreado
Cabreado's picture

Well, you must admit, it is hard to sound intelligent in the context of chaos.

I believe we have too much punditry in play from those who view the world from a narrow place.
In fact, that precludes us from finding any solutions.

As evidence, if you've noticed, we're not even looking for any.

That is the rise of the Self-Absorbed.

Tue, 04/16/2013 - 21:07 | Link to Comment dogbreath
dogbreath's picture

look at  the EBAY prices.  Check out what the bids are.      http://www.ebay.ca/sch/i.html?_sacat=0&_from=R40&_nkw=maple leaf gold coin&_fscr=1

Tue, 04/16/2013 - 22:14 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Yep. I was just checking prices for silver quarters on ebay, which, of late, I've been unable to entertain because of the ridiculous premiums. They're anywhere from 16-35% over spot. Obviously, there's decoupling from the paper price and phyz going on and a lot of it in the lower dollar value purchases.

Seems the muppets are awakening. As today is the day after the most hated (by me) day in the US - tax day - I can clearly see parts of my survival plan in action:

Screw .gov

Engage in the "underground economy" by working for or trading in cash

Buy PMs

Did I mention screw .gov?

Of course, ebay transactions are all trackable, but does anybody seriously think the IRS is going to come knocking on the doors of everyone who has been buying rolls (or less) of silver quarters or dimes? Doubt that.

My favorite word of late has been "dislocation," followed closely by "disruption." Lots of both occurring presently, which is very, very encouraging.

Tue, 04/16/2013 - 23:42 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

The 24hgold.com/eBay PM Premium:Price widget is showing a very high 21% AGE premium over spot price.  The widget is at the bottom of their home page:

24hgold.com

Tue, 04/16/2013 - 21:07 | Link to Comment Peter Pan
Peter Pan's picture

Anyone who needs to sell gold to pay his debts should not be buying it. Gold should be held as the safest hoard of excess wealth any individual has. The hoard you hope to never use except in an absolute emergency. The hoard you hope to pass on to your children.

Wed, 04/17/2013 - 01:59 | Link to Comment Debugas
Debugas's picture

and/or as your pension fund

Wed, 04/17/2013 - 14:23 | Link to Comment e-recep
e-recep's picture

gold can be used to buy property on a major avenue when there is blood in the streets.

Tue, 04/16/2013 - 21:20 | Link to Comment Bingfa
Bingfa's picture

Gold and silver only have this type of selling when there are extreme shortages of the physical metal.  I am totally aware that before this takedown occurred there was an imminent LBMA [London Bullion Market Association] default.

We had already seen COMEX inventories plunging.  In 90 days COMEX inventories saw an incredible decline.  So immediately available physical gold was disappearing.  People around the world don’t understand what has been happening since Cyprus….

Entities went to the LBMA and said, ‘We don’t trust anybody anymore.  We want our physical metal.’  They were told they would be cash settled instead by a bullion bank.  The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.

This is why this smash has been orchestrated because of the run that has been taking place on physical metal.  So Western governments had to do this because of an imminent run on the unallocated LBMA system.  The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash.

Tue, 04/16/2013 - 21:25 | Link to Comment Yen Cross
Yen Cross's picture

 Keep stacking those PM.s

Tue, 04/16/2013 - 22:12 | Link to Comment monad
monad's picture

30% moar

Tue, 04/16/2013 - 21:29 | Link to Comment Bastiat
Bastiat's picture

Yes much healthier - God knows a two year consolidation is actually the same thing as a parabola. 

As for participants, we all needed a good sound raping.  I'm so grateful.

Tue, 04/16/2013 - 21:30 | Link to Comment IamtheREALmario
IamtheREALmario's picture

IMO, owning physical gold and having possession of that gold is probably a better use of money than putting it in a bank as an unsecured loan for negative real interest. The trick will be to ensure that you have a way to trade it for the things you need in the event TSHTF.

On the other habd, I do not believe paper gold is anything other than a casino bet where the house gets to choose the numbers and how much your money it takes.

Wed, 04/17/2013 - 01:56 | Link to Comment Debugas
Debugas's picture

you can keep physical cash under your matress instead

Tue, 04/16/2013 - 21:40 | Link to Comment jomama
jomama's picture

i stopped reading at gold 'market'.

Tue, 04/16/2013 - 21:53 | Link to Comment Zodiac
Zodiac's picture

Just think how much more healthy the gold market would be if it lost another 30%!  Wow

Tue, 04/16/2013 - 22:00 | Link to Comment constantine
constantine's picture

As an almost comical sidenote to the completely farcical fluctuations of the silver market, literally a day prior to the collapse of the price, a huge landslide wiped out operations at Rio Tinto's gold and silver mine in the USA.  This will reduce silver supply by 10-15% in the USA.  However, only technicals matter (which can be interpreted anyway the central planners direct CNBC).

Tue, 04/16/2013 - 22:08 | Link to Comment Manipuflation
Manipuflation's picture

"Investors have become more confident that the worst is over and everything will be all right: Europe has solved its problems in principle, that the U.S. is on track, and China beat"

I am not even going to comment.

Tue, 04/16/2013 - 22:11 | Link to Comment rp1
rp1's picture

GOLD IS DEAD.  Come back in 20 years.   The BIG BULL MARKET is Japan!!!!!!!!!!!! 

Tue, 04/16/2013 - 22:18 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Yes. And the Astros are going to win the world series.

Tue, 04/16/2013 - 22:13 | Link to Comment GOSPLAN HERO
GOSPLAN HERO's picture

Look at the price and premiums for physical silver and gold on APMEX.

Wow!

Now look at paper price.

A growing gap between physical and paper PMs.

Tue, 04/16/2013 - 22:21 | Link to Comment Bingfa
Bingfa's picture

From Harvey Organ:
 
we  lost another monstrous 8.42 tonnes GLD today following 22 tonnes on Friday and 4.2 tonnes yesterday.

Total corruption....

Tue, 04/16/2013 - 22:27 | Link to Comment T-NUTZ
T-NUTZ's picture

i can get a decent meal and a toga for 300 bucks.  

Tue, 04/16/2013 - 22:34 | Link to Comment williambanzai7
williambanzai7's picture

With pot, at least you know you can smoke your stash if all else goes wrong. 

Perhaps this is why they hate pot so much. 

Tue, 04/16/2013 - 23:06 | Link to Comment Manipuflation
Manipuflation's picture

In regimented amounts it can lead to creativity. 

Wed, 04/17/2013 - 00:18 | Link to Comment WillyGroper
WillyGroper's picture

WTF, that's plum stooopid on the MNC's part.

Long chips & chocolate if it's ever decriminal/legalized. 

Tue, 04/16/2013 - 22:35 | Link to Comment loveyajimbo
loveyajimbo's picture

No one knows why gold got hammered?!!?!?  Is this clown still in restraints?  macGuire on Kingword, Butler on SilverSeek... pretty simple... like this douchebag's intellect... Time to tar and feather Gensler... the corrupt roach...

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