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The Spot Price of Precious Metals Is Becoming Irrelevant

Tyler Durden's picture





 

Submitted by Adam Taggart via Peak Prosperity,

In light of the recent violent down-and-up action in the precious metals, we invited the executives behind the Hard Assets Alliance (HAA) on to discuss the impacts they're seeing recent developments have on the balance of buying and selling for gold and silver.

The HAA is a large precious metals bullion dealer that gives the retail investor access to an institutional-grade platform for purchasing, storage, and delivery. The platform itself is operated by Global Bullion International (GBI), which counts a number of the country's largest banks and funds among its clients. So today's guests have an exceptionally good finger on the "pulse" of bullion transactions in today's market.

(Full disclosure: The HAA is endorsed by PeakProsperity.com. Details on why and the business relationship between our firms can be found here)

In this podcast discussion, Chris asks Ed D'Agostino (General Manager, HAA) and Savneet Singh (President & Co-Founder, GBI) what's remarkable about the recent action in the precious metals.

For starters, demand is off the charts:

Savneet:  It’s tremendous. On Friday and Monday we had the two largest days of selling. We at GBI had some of the biggest days of all time. We had four to five times as many buy orders and sell orders, both in number of trades and in volume. Far more significant buying than selling, and it’s continued throughout the week. Buying has been just tremendous on the gold side. It’s been robust across markets – both in the United States and also in our overseas locations. It’s been consistent across the board.

 

It’s also representative across all of our dealers. When we surveyed our dealers to get their feelings on what’s happening, it’s been off the charts. Our refiners had two times as many orders as they usually do. Our bullion dealers had, on average, three to five times as many orders as they normally do. Our bullion banks had the same type of positive inflows verses outflows.

 

Ed:  That’s the same with the Hard Assets Alliance. We’ve seen record inflows of cash deposits over the last two weeks, and purchases have far outnumbered – basically nine-to-one at the Hard Assets Alliance for purchases verses sales of positions. 

Second, the demand we're seeing is from existing customers who are returning to buy in bigger volume as they see the precious metals as being "on sale" right now. This is creating supply strains across the system. If we get to a stage where another 1% or 2% of the population decides to become first-time bullion buyers, supply could become exhausted quickly:

Ed:  I think there’s going to be some serious supply constraints. I agree, we're nowhere near mainstream yet. Once more conventional retail investors wake up to the fact that they need some sort of protection in their portfolio against debasement of currency and inflation the demand is going to surge.

 

Savneet:  At this moment, particularly on gold, I just don’t see there being a shortage. Even ETF and closed-end funds are looking for a better way to buy. We’ve never had a problem being able to coordinate extremely large purchases for them. We’ve already hit the capacity on the silver coin side where there’s just not enough out there to satisfy demand. Because that demand is centralized around coins, people will have to wait for what mints want to do – whether it’s the Royal Mint, the U.S. Mint. You are kind of tied to the supply of one producer. Silver bars are a little bit better, but silver is just a much smaller market than gold is. I think you're absolutely being exposed to shortages there.

 

On the gold side, I think if gold ever became truly mainstream, as Ed was talking about gold's total market value is $5-6 trillion dollars. If 1-2% of the population wanted to buy some at current prices, there’s just not enough of it. So, two things happen: Either you have a gigantic price re-rating, or you don’t have supply. 

Third, the surge in physical buying combined with tightening supply is resulting in the premium paid over spot price for physical bullion to march upwards quickly. For all of recent memory, the price of precious metals has been determined in the paper marketplace (e.g., COMEX; LBMA). That may now be changing. Should the availability of physical bullion start setting the price action, the spot price quoted in the paper market for gold or silver will become an anachronistic irrelevance:

Savneet:  Internationally you traditionally see huge buying after a price selloff. But since the recent huge selloff, you've had more buying than people ever imagined internationally. What was unique about this selloff is that the buying surge occurred in the United States as well.

In the U.S., when we’ve had huge price run-ups, we have lots of buying. It’s not often that within the same day of a huge price decline, we have significant buying. So it was different than other very large days in our company’s history in that you've just had such counterintuitive buying.

Ed:  And such a big disconnect between the spot price and the actual price that you're going to pay for physical, particularly on the silver side. You could make the argument that spot price is becoming irrelevant relative to the physical market because silver is well north of the 20% premium over spot right now. 

Click the play button below to listen to Chris' interview with Ed D’Agostino and Savneet Singh (31m:12s):

 
 


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Mon, 04/29/2013 - 21:55 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

shit thing is it is becoming irrelevant when buying... but not selling to a dealer. Selling on kijiji, fine. I guess it is the first step.

Mon, 04/29/2013 - 21:59 | Link to Comment rajat_bhatia
rajat_bhatia's picture

This desperation on the part of goldbugs is so sad

Mon, 04/29/2013 - 22:00 | Link to Comment Zer0head
Zer0head's picture

the Hard Assets Alliance (HAA)

Mon, 04/29/2013 - 22:38 | Link to Comment Long_Xau
Long_Xau's picture

Anyone holding paper gold will find themselves in a situation where they'll be asking for the physical, and there will be no physical coming their way. The only physical they would get, only if they really persist asking for it would be physical fucking in the ass.

Mon, 04/29/2013 - 23:12 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

With their Military in Africa taking over the mines, the counterfeiting elite should be able to print an unlimited quanity of paper metal shares and force the price down even further. Sad, but that is the way that it is.

Tue, 04/30/2013 - 02:43 | Link to Comment Rubicon
Rubicon's picture

The Morgues vaults are being ransacked by the rich demanding their bullion. Maybe they have finally twigged!

 

Tue, 04/30/2013 - 07:10 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

This desperation on the part of goldbugs is so sad

 

Smells like teen spirit desperation.....but it's not coming from my sock drawer.

 

Relax and pop some Prozac......buy some more stawks. Turn on CNBC....you'll be feeling better in no time.

Tue, 04/30/2013 - 09:04 | Link to Comment Atlasshruggedme
Atlasshruggedme's picture

/sarc?

Tue, 04/30/2013 - 09:55 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

You obviously completely missed the point of this article. The paper price will become irrelevant.

Tue, 04/30/2013 - 01:01 | Link to Comment dark pools of soros
dark pools of soros's picture

any clown that still has paper gold deserves their fate..  that drum has been beaten to death

I know you all hate bitcoin, but it is kinda apt that this 'awakening' in gold has finally started to get out of the mud after the world got wise to fiat by studying bitcoin... why they couldn't of figured it out by knowing gold, who knows

I stack both, and advise the same.  There is a hell of a lot of arbitrage to made during this chaos and mining bitcoins is a hell of a lot easier than mining gold

 

 

Tue, 04/30/2013 - 05:47 | Link to Comment buyingsterling
buyingsterling's picture

Bitcoin may rise, but in the end it's just fiat with a limited supply. Why not Bertcoin, Bobcoin, and Boobcoin? The possibilities are as endless as there are programmers to provide a stable trading platform. Bitcoin fails the test of durability: grid down = pants down.

Tue, 04/30/2013 - 07:05 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Off with the heretics head!!!

 

By decree of the Winklevoss twins.....both of them.

Tue, 04/30/2013 - 08:24 | Link to Comment Race Car Driver
Race Car Driver's picture

> Why not Bertcoin, Bobcoin, and Boobcoin?

 

Well ... technically ... Bitcoin wasn't named after a person or bird, so the other possibilities in staying with the theme might be: Bytecoin, Blockcoin, Sectorcoin, Frag(ment)coin ... etc.

Just sayin'.

Tue, 04/30/2013 - 10:46 | Link to Comment TheCanadianAustrian
TheCanadianAustrian's picture

Bitcoin isn't fiat. Go look up the definition.

Tue, 04/30/2013 - 08:51 | Link to Comment sessinpo
sessinpo's picture

This question of physical hoders versus paper is not totally correct.

 

For example, someone holding a SINGLE comex contract for gold is unlikely to demand delivery of physical. They simply offset their trade in dollars. This is certainly true for the average American.  How many of us are willing/able to pony up the cost of taking delivery?

The same goes for GLD, the ETF.

The holders or shortsellers of paper PMs are speculators that are not wanting the physical. They are either betting on higher or lowers prices OR they are hedging against other positions they hold.

The buyers of actual physical (such as myself), don't care what the paper players are doing. I buy PMs to preserve wealth. Paper players are in the market to speculate.

Tue, 04/30/2013 - 09:09 | Link to Comment He_Who Carried ...
He_Who Carried The Sun's picture
>>The Spot Price of Precious Metals Is Becoming Irrelevant<<

RIGHT! AND MY FRIGGIN' MONEY TOO!!
JUST FEED YOURSELF TO THE MONKEYS!!
SERIOUSLY, ZH, hoW loW can it get...? This author is a total moron!

Mon, 04/29/2013 - 22:02 | Link to Comment TeamDepends
TeamDepends's picture

No raj, you've got it all wrong.

Mon, 04/29/2013 - 22:07 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Yes, he is wrong but either does not know it or does not care.  If things go south in a bad way in the financial markets, we will see.

Time will prove all things.  I choose to buy & hold gold, for safety's sake.

Tue, 04/30/2013 - 01:30 | Link to Comment sitenine
sitenine's picture

You are wise, Dochen.

Tue, 04/30/2013 - 01:38 | Link to Comment Bay of Pigs
Bay of Pigs's picture

No DoChen, that guy is just an asshole in a long line of trollish assholes we've seen here at ZH over the years.

Mon, 04/29/2013 - 22:13 | Link to Comment DaddyO
DaddyO's picture

raj doesn't seem to understand the difference between desparation and disbelief.

In my experience, there is no desparation, only disbelief at the level of corruption within the Cartel and their willingness to manipulate prices.

This disbelief is also fueled by the wanton disregard of the law and the brazen behaviour of the Cartel...

When you sit in your mother's basement and limit your outside contact, you perceptions become scewed.

Daddyo

Mon, 04/29/2013 - 22:13 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Yeah but sometimes Mom wears some really sexy stuff. 

Mon, 04/29/2013 - 22:22 | Link to Comment TeamDepends
TeamDepends's picture

If your mom is Brigitte Bardot, we're with you.

Tue, 04/30/2013 - 03:34 | Link to Comment capitallosses
capitallosses's picture

Maybe 40 years ago.

Mon, 04/29/2013 - 23:22 | Link to Comment NoDebt
NoDebt's picture

Yeah, he's got it wrong.  But the bigger issue is WHY there is a disconnect between the paper and physical price.  The reason MATTERS.  If it's just a couple weeks of dislocation that's no big deal- moving physical gold around between buyers and sellers is not much easier than it was decades ago.  If it persists, you have a REAL problem borne of lack of faith in markets and counter-parties.  The spread between paper and physical gold will indicate the level of distrust that paper gold buyers have in the seller on the othe side of the transaction (the discount).

What has been amazing to watch is that physical gold demand didn't just hang in there, it went UP as prices fell.  There were no "weak owners" that quickly got washed out of the market as prices fell.  That's what makes me think this may not be a short term phenomenon.  Perhaps it fades in a month or so, but perhaps not.

I am betting the paper gold market has just begun an era of trading at a discount to the physical market.  The counter-party risk would need to be effectively ZERO for them to trade at the same exact price.  I don't think anyone is going to assume a zero-counter-party-risk any more.

 

Mon, 04/29/2013 - 23:26 | Link to Comment DavidPierre
DavidPierre's picture

 

"My buddy in NYC just called me. He was chatting with a high level relationship manager in a big bullion bank private wealth management area. It's a pretty small-knit community. This guy worked at JPM until about 6 months ago and now works at another Euro-based bullion bank (there's only a few).

He (my friends contact) said that there's a massive scramble going on in Europe right now by very wealthy families and individuals to get their 400 oz. bars OUT of the bank vaults. He said "imagine a very wealthy Swiss family walks into a JPM office and says 'Id like to take my $30 million in gold bars out of your bank and if you don't let me do that I'll move my $100's of millions you manage somewhere else.'" Apparently this scenario is going on en masse. In fact, he said not too long ago JPM sent around a notice to wealthy clients that their bars were safe in a segregated vault account at JPM.

He said everyone is aware of what's going with the paper vs. physical scheme and now these wealthy entities are doing what they can to get their physical bars out of the bullion bank vaults. It certainly explains the drain in "eligible" gold from the Comex, most of coming from JPM's vault.

He also said that he suspects - although he can't confirm - that someone like a John Paulson held a gun to GLD's head to get their gold out of GLD. That's part of the bar drain from GLD. He can't confirm it was Paulson specifically, but Paulson is a private bank client of JPM's. JPM is also Paulson's main hedge fund prime broker."

 

Denver Dave

www.lemetropolecafe.com

 

 

Mon, 04/29/2013 - 23:58 | Link to Comment gwar5
gwar5's picture

Thanks Dave.

 

Sounds exactly like what Jim Sinclair was just saying about elites and wealthy families securing physical gold now ahead of economic chaos and a post-crises metallic system. Sounds like an updated version of John Law France, right before the Mississipi Bubble popped. The smart, swift, and the well-connected who secured physical metal quickly were the winners.

I include Goldbugs in the smart category today because they're already hedged out of the system. Thanks to ZH, JS, KWN, GATA, Lemetropolecafe, Jim Willie, and all the many others... Goldbugs could see it coming.  Thanks so much!

Tue, 04/30/2013 - 00:05 | Link to Comment fourchan
fourchan's picture

paulson is smart enough to do it.

Tue, 04/30/2013 - 08:07 | Link to Comment BurningFuld
BurningFuld's picture

You know this really picked up speed with the "Cyprus Affair" . People with money do not feel safe with it in a Bank so buy Gold and put it in private storage. I mean if you have 50 million in a Bank are you really going to make a cash withdrawal?

Tue, 04/30/2013 - 00:52 | Link to Comment PontifexMaximus
PontifexMaximus's picture

A wealthy Swiss family never ever holds gold with JPM snd never ever holds GLD. In the max. they hold ZGLD SW, because phys. delivery is always available through Zürcher Kantonalbank via 12,5 kg 995 standard bars.

Tue, 04/30/2013 - 05:57 | Link to Comment Urban Redneck
Urban Redneck's picture

If, however, they have an unallocated gold account account with a local bank- then there is nothing to prevent that bank from hypothecating the gold to reduce storage costs and increase returns.  The problem is systemic, just as greed is.    

Tue, 04/30/2013 - 08:06 | Link to Comment BurningFuld
BurningFuld's picture

AND that gold could be counted for "Bail in" purposes.

Tue, 04/30/2013 - 10:31 | Link to Comment DosZap
DosZap's picture

AND that gold could be counted for "Bail in" purposes.

Sure it will, IF your stupid enough to have it IN their system.

Tue, 04/30/2013 - 05:59 | Link to Comment Edward Fiatski
Edward Fiatski's picture

http://upload.wikimedia.org/wikipedia/commons/a/a1/Burning-money-and-yua...

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

"A sycee was a type of silver or gold ingot currency used in China until the 20th century. The name derives from the Cantonese words meaning "fine silk". In North China, the word yuanbao, was used for similar ingots. This word is attested in the 19th-century English-language literature on Xinjiang and the trade between Xinjiang and British India as yamboo or yambu.

Tue, 04/30/2013 - 08:42 | Link to Comment Ranger4564
Ranger4564's picture

I suspect that the wealthy families are not the destination of the evaporating JPM Gold... I suspect that gold is being shipped to the vaults of the Oligarchs / Templars in preparation for the takedown of the global banking system. From the kind of things happening, I believe the time is soon when the larger international banks are taken down and JPM declared bankrupt... thereby taking with them a vast amount of wealth... wealth that goes to the oligarchs. Goldman will be the last bank standing I think, but it too might finally be retired after the main event.

Tue, 04/30/2013 - 12:30 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

The wealthy families = Billionaires + = The Oligarchs.

Solved it for you.

Tue, 04/30/2013 - 11:45 | Link to Comment rustymason
rustymason's picture

"My buddy in NYC just called me. He was chatting with a high level relationship manager in a big bullion bank private wealth management area. It's a pretty small-knit community. This guy worked at JPM until about 6 months ago and now works at another Euro-based bullion bank (there's only a few). ..."

That was taken from "Penthouse Letters for Goldbugs."

Tue, 04/30/2013 - 05:55 | Link to Comment buyingsterling
buyingsterling's picture

Here's why the disconnect matters: If it persists, anyone holding longs will perceive delivery as a radical discount to the market value. That is sure to prompt deliveries, which may be settled for cash, but settlements should be for a premium, presumably enough to cover market purchase at the disconnect price. Suddenly paper conversion looks like a bargain and we're off to the races. Disconnect = deliveries or delivery failures, and the house of cards comes down.

Tue, 04/30/2013 - 01:28 | Link to Comment tyler
tyler's picture

Whatever happens will happen.  I hope the best for all really, but T's let me say this when I was strapped I needed to sell.  The price matters man.  What's youre end game if it's not the price?  Real shit man.  I've been liquidating, seen stocks shoot while I was holding a metal promise guys.  Durdens man look at my history on this site guys.  Fuck it then ban me, man I got a site now

 

thetalkativeone.com is a little of what selling silver did for me.  I got beats, good soul I got shirts 4 sale.  Can't beat em!  Almost

 

peace, love

the talkative one

Tue, 04/30/2013 - 12:32 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

If you buy on margin, sure, the price matters.  If you are just converting your savings, and won't need to touch it for 2-5 years then price at the moment is irrelevant.

You have to realize what we are dealing with here are the death throes of a dying paradigm (fractional reserve fiat banking).  Its (the Fed, controller of the USD) not going to willingly relinquish its influence.

Tue, 04/30/2013 - 01:33 | Link to Comment lickspitler
lickspitler's picture

raj has a bit of a point. everyone working themselves into a lather about the great physi_jizzy shortage but gold still has a 14 handle and silver looks like a bucket of dogs vomit.

just sayin... hell i,ll keep stackin till i have to sell a kidney

Tue, 04/30/2013 - 02:10 | Link to Comment JOYFUL
JOYFUL's picture

raj's 'point' appears to be atop his head...the business of shortages will not be announced on your television...or in your other MSM media neither - see Sinclair's latest on KWN for an example of that truth....Cyprus cyprused agin...with nary a peep to disturb the sheep appearing in the puppet press...http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/30_Ji...

And then play that back to back with Turk's interview... http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/29_Tu...

Barrick...back in the hedging game like a porcine poltergeist chowin down...kaboooom!

your bucket o dog's vomit is actually a fake vomit joke mat...laid out on the sidewalk for as to help hustle the hustlers to step into the street...and join the rest of the roadkill what failed to take mommy's hand when crossin the big decouplin street!

(Mommy Mommy!...Willie the Weasel is lying in the road all flattened! Mommy!) http://www.youtube.com/watch?v=1DPEKVV7R9k =

Tufty the Squirrel is very naughty
Tue, 04/30/2013 - 08:34 | Link to Comment BobPaulson
BobPaulson's picture

The decoupling can still be explained away by the convenience cost. It could decouple, hope it does, but the doom of jpm still is like looking for the face of Jesus in a slice of burnt toast. I hope people are not planning for them to collapse next week because it aint gonna happen. You can't crush guys who can print money.

It fiat dies, the suckers will be the fixed income pensioners. The banksters will come out on top, guaranteed. Your guns are more likely to settle the score than your gold. Hopefully the gold helps you avoid being one of the patsies they gyp, but they can buy the government, they can certainly buy the police.

Tue, 04/30/2013 - 02:39 | Link to Comment JOYFUL
JOYFUL's picture

dup

Tue, 04/30/2013 - 03:55 | Link to Comment CompassionateFascist
CompassionateFascist's picture

1 ASE looks like 2-3 days groceries after the dollar dies. Long 4 July weekend should be about it. 

Mon, 04/29/2013 - 22:00 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

I don't own any gold. I'm not desperate for anything either, other than for nature to take its course and reality kick in. Suspension of disbelief only works in the movies. I don't need to be counseled out of saving me from myself.. LOL...

Mon, 04/29/2013 - 23:53 | Link to Comment ShrNfr
ShrNfr's picture

As you wish. But you ought to seriously consider aquisition of something that represents fungible time and effort. There are things other than precious metals. Farmland and forestry are reasonable. Both are necessary today and in the future. Worst case, buy stock in a company with a low price to tangible book, like less than 1. The major international oils are not bad either. Their tangible book does not reflect their sunk costs of exploration that will produce oil in the future. Just keep away from those funny pieces of paper with funny looking pictures on them.

Mon, 04/29/2013 - 22:04 | Link to Comment Pareto
Pareto's picture

.......as is your pinhead comment.

Mon, 04/29/2013 - 22:04 | Link to Comment kliguy38
kliguy38's picture

how much do you get paid for each reply you get you troll.....tell your mom you can afford to get out of the basement soon

Mon, 04/29/2013 - 22:15 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Maybe Mom wants me to stay! Every since dad hurt his back Mom really needs her needs to be taken care of.

Mon, 04/29/2013 - 23:39 | Link to Comment gwar5
gwar5's picture

You're the one who sounds needy.

 

Tue, 04/30/2013 - 03:21 | Link to Comment BeetleBailey
BeetleBailey's picture

Kentucky much?

Tue, 04/30/2013 - 02:50 | Link to Comment Dr. Sandi
Dr. Sandi's picture

An ungodly number of people can be stupid at absolutely no cost to anybody. (Other than themselves.)

Mon, 04/29/2013 - 22:19 | Link to Comment Dr. Engali
Dr. Engali's picture

The only desperation I feel is the desperate need to get my hands on more gold.

Mon, 04/29/2013 - 22:22 | Link to Comment El Oregonian
El Oregonian's picture

No desparation here. I know exactly where my fully loaded boat sank... And if it gets any cheaper I'll know where the second one will meet Davy Jones' Locker.

Tue, 04/30/2013 - 02:20 | Link to Comment tenpanhandle
tenpanhandle's picture

Sounds like Davy Jones is the one who'll make out on that one.

Mon, 04/29/2013 - 22:32 | Link to Comment erg
erg's picture

I have a Roman coin circa 180 AD just to remind me where this is all headed. I'm guessing a bit. I just went looking for it a moment ago but couldn't find it. It's buried itself again - passing out of time and space for yet more generations.

I bought it for $40 from my LCS as a novelty item. After all these years it still isn't worth much.

Tue, 04/30/2013 - 00:43 | Link to Comment Non Passaran
Non Passaran's picture

I bought some very old coins for exactly the same reason.

Tue, 04/30/2013 - 01:28 | Link to Comment Real Estate Geek
Real Estate Geek's picture

Funny, I have a $100 Trillion Zim note to remind me.  I also have a $1 Zim note that was printed only one year earlier.  I have that to remind me of how quickly things can take a turn for the worse.

Tue, 04/30/2013 - 02:28 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Keep in mind that Zimbabwe (ex-Rhodesia) is one of the naturally richest places on earth.  Immense mineral wealth and farmland that used to regularly export food.  At the time of independence $ZIm1 was worth $US 1.48.  By the time they were printing $Zim100 Trillion notes they'd already lopped off 3 zeros.  The final issuance of ZImbabwe dollars had 12 zeros lopped off but by that point there was not much currency in circulation and people were using $US or South African Rands - or bartering.

Note:  coins were never revalued and effectively disappeared from circulation.  The metal value exceeded their monetary value (and we are talking about base metals, nothing precious here).  An ominous sign is that even NONcopper US pennies and nickle 5 cent coins cost more to produce thatn their monetary value.  Old copper pennies are worth more than twice tehir face value for their copper value alone (and had been worth far more when coper prices were higher).  

Yugoslavia saw similar inflation while it broke up.   South and Central American countries - as well as some of the former Soviet Republics have alos seen massive inflation.

In the past you always had 'safe haven' currencies when a nation experience hyperinflation.  It was usually the US dollar - though the German Mark was preferred in Yugoslavia.  

With major world currencies in trouble - and the US dollar being 'better' only in the sense that it jumped out of a plane from a higher altitude than the Euro, there is NO OTHER CURRENCY that has a large enough circulation to serve as a 'safe haven'. The Swiss deliberately linked the Swiss Franc to the Eurp because safe haven flight had made the Swiss Franc so expensive relative to other currencies (and driven up the cost of Swiss exports).   Norway, Singapore.....  not a lot of places to stash your savings - not thatmost nations let their citizens take money out of the country.

Mon, 04/29/2013 - 22:50 | Link to Comment wee-weed up
wee-weed up's picture

No desperation...

certainty!

Mon, 04/29/2013 - 23:17 | Link to Comment MortimerDuke
MortimerDuke's picture

The faux enlightenment of the paperbug fiatheads is not only much sadder, but borders on comical.

Tue, 04/30/2013 - 01:03 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

The bottomline for anyone who ever hears the phrase goldbug is: paperbug.

I mean, if a goddamn paperbug is calling you a goldbug, need you be offended?  I think not.

Tue, 04/30/2013 - 01:46 | Link to Comment draug
draug's picture

First sign of religious extrimism is labeling of the "outsiders" as less than yourself.

Mon, 04/29/2013 - 23:32 | Link to Comment gwar5
gwar5's picture

What could we ever do without you, Dear Leader?  Wonderful to hear you shot another 11 holes-in-one on the golf course again today, Dear Leader.  Thank you, Dear Leader. 

 

 

Mon, 04/29/2013 - 23:50 | Link to Comment THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

FIXED IT:

This desperation on the part of fiatbugs is so sad

Tue, 04/30/2013 - 00:35 | Link to Comment BadKiTTy
BadKiTTy's picture

@ rajat "This desperation on the part of goldbugs is so sad"

This desperation on the part of trolls is so sad.  Fixed it for ya.  

K@ 

Tue, 04/30/2013 - 00:51 | Link to Comment pbppbp
pbppbp's picture

rajat, if you have no thesis you are nothing but a rat bastard troll. How is $300-$1500 desperate? Fuck off.

Tue, 04/30/2013 - 02:02 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

Wow an Indian who doesn't like Gold, I bet you eat steak too.

Tue, 04/30/2013 - 02:50 | Link to Comment akak
akak's picture

Q: What did the Indian goldbug say to the other Indian goldbug?

A: What good is a cow?  I mean, you can't eat it!

Tue, 04/30/2013 - 03:18 | Link to Comment JPMorgan
JPMorgan's picture

No it's not desperation, it's well beyond that... it's a different mindset.

Years ago I use to put my money in a higher interest saving account each month.

Now that's been proven to be a risky and the interest rate in real terms is negative so I purchase PMs each month instead.

The politicians and bankers have over played their hand, people see the game is rigged against them and are opting out.

Mon, 04/29/2013 - 22:27 | Link to Comment SilverRhino
SilverRhino's picture

Fuck the dealers.  Slap a 15% premium on craigslist and your phone will burn up from the calls.  

Mon, 04/29/2013 - 22:43 | Link to Comment Alea Iactaest
Alea Iactaest's picture

And Tulving's premiums haven't budged in 2 weeks.

Mon, 04/29/2013 - 22:58 | Link to Comment Room 101
Room 101's picture

Probably because they weren't all that attractive in the first place. 

Tue, 04/30/2013 - 01:10 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

On Nucleo exchange, the ask price for an ounce of silver is $27.50, the bid is $25.50

So what is the price?  If people are willing to sell their silver for $25.50, when the market price is $24.28 (per WS) what does that tell you?

Tue, 04/30/2013 - 06:00 | Link to Comment buyingsterling
buyingsterling's picture

I can tell you from experience on Nucleo that the final price is usually closer to the ask than the bid, so 25.50 biod/$27/50 asks probably mostly go down at $27.00, with the 1% fee and shipping. And that's probaly generic rounds, not ASE or MLs.

Tue, 04/30/2013 - 01:47 | Link to Comment Bay of Pigs
Bay of Pigs's picture

but they did go up significantly after the takedown

Tue, 04/30/2013 - 02:38 | Link to Comment mt paul
mt paul's picture

ran 3 craigslist adds this weekend

want to buy .999 siver

pay 1 $ over spot

cash....

 

got zero interest ..

there is no silver north of the alaskan range

oxford shop back ordered 30 days...

Tue, 04/30/2013 - 04:07 | Link to Comment CompassionateFascist
CompassionateFascist's picture

JM bullion: 1 month wait for an MB

 

 NWT Mint: 2 on order, 3.5 months, still waiting....

Tue, 04/30/2013 - 05:48 | Link to Comment Aeternus
Aeternus's picture

Have the fundamentals changed? No.

 

Are the paper markets still being manipulated? Yes.

 

Pretty fuckin' simple BTFD and keep stackin'!

 

http://www.youtube.com/watch?v=fyklt01lN_I

Mon, 04/29/2013 - 21:55 | Link to Comment LawsofPhysics
LawsofPhysics's picture

So many paper fucking promises, so little real assets and collateral.  Bring it motherfucker.  My tribe is in order.

Mon, 04/29/2013 - 21:57 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

same here. It's gonna happen,and I'm ready. I'm getting tired of sitting on the bench waiting.

Mon, 04/29/2013 - 22:07 | Link to Comment LawsofPhysics
LawsofPhysics's picture

We are still very busy, people to feed and all, but very vigilent and looking out for each other. When fraud becomes the status quo, possession is always the law.  if you own property with a clear title.  Have it handy and in a secure place.  The paper-pushers are going to get desparate soon enough and make all kinds of claims "for the good of everyone".  Fuck em, tell them they can sharecrop your land for a fee.  Time for these motherfuckers to burn for all the real wealth they stole.  Their is no value in their labor, people are now waking up to this.

Mon, 04/29/2013 - 22:14 | Link to Comment Ignatius
Ignatius's picture

"When fraud becomes the status quo, possession is always the law."

I just thought it was worth repeating.

Mon, 04/29/2013 - 22:25 | Link to Comment disabledvet
disabledvet's picture

if there is a "fraud" happening inside a bank you have to be very careful about pricing ANYTHING. again you will not hear me say gold or silver is anything but an asset...but if 7,000 tons suddenly spills out into the marketplace because Portugal just went tits up "your gold will depressed for decades." these aren't just banks folks but Armies that are moving...the press hasn't been reporting on it but assets are being positioned as i write this now. One word: BOSTON. the President has just gotten off the phone with Putin "in order to make nice." this was not a "make nice call." if a consensus is building between the FBI, CIA, DOD and Treasury that the Russians were in any way involved in the bombing in Boston mark my words there will be an action. the incredulity of these constant equity rallies can be explained by an American/Russian showdown in Syria. these things can move surprising quickly since the assets (chess pieces) are already in place "in the Sandbox." this ain't some musical tour either. We had a stand off over there in 1973 and it was eyeball to eyeball for a solid six months. "this one is hot under the collar already."

Mon, 04/29/2013 - 22:35 | Link to Comment Ignatius
Ignatius's picture

"...if a consensus is building between the FBI, CIA, DOD and Treasury that the Russians were in any way involved in the bombing in Boston..."

And that despicable act benefits the Russians how?

Don't get me wrong, the propaganda machine can sell snow in a snowstorm, but I'll never believe it.

Tue, 04/30/2013 - 00:38 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

Blowback for Cyprus, which targeted Russian hot money............

Tue, 04/30/2013 - 01:17 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

The Russians got their money out, though, the ATMs were still open in City of London and in Russian branches.

Mon, 04/29/2013 - 23:06 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Let's see... They invade Iraq on lies & fabrications, they bailout the very banks that caused the 2008 crisis, they do not prosecute them because they are TBTJ, they print $85B/mo ($1T/yr) of fraudulent paper to prop up a stock market that would otherwise peter out, they want to take your guns, they suppress supply of ammo, they're on record as having supported fighters in Syria that are linked to Al Qaeda, and yet the Russians -- who warned the FBI about these guys -- are to blame !? Are you on drugs, or hoping we are? /s

Tue, 04/30/2013 - 02:40 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Listen to what Sibel Edmonds says.  Not that she can say what she SHOULD be saying - thanks to a federal gag order.  

http://www.youtube.com/watch?feature=player_embedded&v=TbxFM9X6IC0

These guys were CIA controlled patsies set up for a fall.  The Boston bombing gives the US more cause to crack down, ramp up militarized police, lets the Russians scream some more about Chechnya and gives them pretense to crack down there and in Georgoa.  Keep in mind that Russia wants control over the pipelines coming out of the Stans - and the US wants these pipelines in 'sympathetic' hands.  Both the US and Russia benefit.   Putin is willing to play along on issues where he benefits.

The US has been playing games in Central Asia for a while in an effort to control China - BinLaden was linked to the Uhguirs in China, a group the CIA was cultivating.  Expect spectacular blowback - far beyond 9/11 - look at how well Iran turned out after the US deposed their government in 1953.

Nothing is as it seems.

Tue, 04/30/2013 - 12:48 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

I totally believe that at the highest level Blankfein, Dimon, Rockefeller and Putin all sit at the same table.  His actions just seem like controlled opposition, a lot of the time.  Designed to intimidate or scare the avg. American. 

Its all about Balance of Powers (although all the powers are in a single group's hands, they must make it look like there are two or more major factions battling it out) and Divide and Conquer (by providing a common enemy, Russia+China).  Always having the 'enemy' under control means you always have a catalyst you can use for social engineering.

Tue, 04/30/2013 - 02:58 | Link to Comment EasterBunny
EasterBunny's picture

How do you come up with a number like 7000 tons for Portugal?

Tue, 04/30/2013 - 08:42 | Link to Comment fiftybagger
fiftybagger's picture

How much silver does Portugal have? Zero?  Thought so.  Keep stackin'

Silver For The People

Mon, 04/29/2013 - 22:00 | Link to Comment howenlink
howenlink's picture

Price of lead is becoming irrelevant.

Mon, 04/29/2013 - 22:09 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

A big + 1

Yes, availability is now key.  I was lucky to get 100 rounds of AK ammo Friday.

Mon, 04/29/2013 - 22:16 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

 I was really lucky to sell 1k rounds of .223 for 1.1k last weekend.

Mon, 04/29/2013 - 22:32 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Well, good!

 

I paid $101 at my LGS for the 100 rounds of Fiocchi (Hungarian made, lead bullet, brass case), that included sales tax.

That price was lower than all non-Russian, non-Brazilian, non-re-man ammo I saw listed at gunbot.net.  Like I wrote above, I was lucky to get the 100 rounds, that was their limit.

Tue, 04/30/2013 - 07:48 | Link to Comment Sanksion
Sanksion's picture

In my place (France), prices are an issue. Low grade ammo cost at least twice as much nominally than in the US, and not in USD, but EUR.

On top of that, you have to get through additionnal red tape if you plan to buy more than 1K ammo per year per caliber. What a shithole.

Mon, 04/29/2013 - 22:15 | Link to Comment Che Guevara is Dead
Che Guevara is Dead's picture

The problem is gun owners have had to curtail their time at the range. Our marksmanship is going to suffer. 

Mon, 04/29/2013 - 22:21 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Buy an air gun. Good quality air pistol and you will see an improvement when you go back to the real stuf

Mon, 04/29/2013 - 23:37 | Link to Comment Long-John-Silver
Long-John-Silver's picture

I've been thinking of buying one of the new Big Bore PCP Air Rifles. With a Hill HPA Hand pump and a bullet mold you have complete independence. Currently you can have a Big Bore shipped directly to your home address and no paper at all. They are not considered firearms. Another feature are the addition of shrouded and baffled barrels that significantly reduce noise from an already quiet (compared to firearms) report. A 336 grain "pellet" hitting a target with 300+ fpe will drop anything.

All links open in new window so you don't lose your place.

 

 

Mon, 04/29/2013 - 22:03 | Link to Comment bugs_
bugs_'s picture

Just look at it as a market with price controls imposed.  In any market with price controls what happens?  Shortages.  A black market develops.  Black marketeers are harassed unless they bribe the local officials which, of course, further exacerbates the price delta between the government controlled price and the street price.  Perhaps we should stop using the term "spot price" entirely.

Mon, 04/29/2013 - 22:03 | Link to Comment Seize Mars
Seize Mars's picture

I am just looking forward to the next gvernment attack against Americans.

As "LawsofPhysics" would say, "Bring it, motherfuckers."

Mon, 04/29/2013 - 22:13 | Link to Comment Big Slick
Big Slick's picture

Remember you said that.  I will

Mon, 04/29/2013 - 22:31 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Yes, I do not want anything bad to happen either.  But, bad things probably will happen.  I am just trying to be prepared.  But, if the very bad things happen, it will be very bad for almost everyone.

Mon, 04/29/2013 - 23:47 | Link to Comment Long-John-Silver
Long-John-Silver's picture

The only 'bad' thing that can happen is the unavailability of electrical and electronic products that contain Silver and added complications of medical procedures resulting from the loss of Medical Silver. No big deal really. We all got along just fine for thousands of years without electricity, computers, cars, and running water.

Tue, 04/30/2013 - 09:48 | Link to Comment Seize Mars
Seize Mars's picture

Big Slick, I was being sarcastic, dumb ass. Direct your anger toward the people who keep attacking and murdering Americans , not me.

Tue, 04/30/2013 - 05:55 | Link to Comment negative rates
negative rates's picture

In your dreams.

Tue, 04/30/2013 - 10:24 | Link to Comment DosZap
DosZap's picture

I am just looking forward to the next gvernment attack against Americans.

I am waiting for another AR 15/AK  clone attack on a Gun Free Zone(the ignorant morons never learn), where dozens are murdered due to LIBERAL stupidity, this is always the MO of Dems when in power.And the PUSTULE IN THIEF will look all dismayed and pissed, and the tree monkeys will start the show, AGAIN.

We are in a war for the RTKABA,and make no mistake this thing is going to come down as a major shitstorm.We will not be worried at all about terrorist episodes.

Mon, 04/29/2013 - 22:08 | Link to Comment BobPaulson
BobPaulson's picture

The key statement is "should demand affect price". Bingo. Still waiting (and hoping for it).

 

Mon, 04/29/2013 - 22:07 | Link to Comment CuriousPasserby
CuriousPasserby's picture

What I don't understand is why some people are so emotionally against gold. It's like a religon to them, they have to criticize and argue with people who like gold. Similar to people who don't like guns or home ownership. Why can't they just live their gold-free lives without bothering people who don't agree with them.

Maybe they're insecure in their beliefs? Maybe they feel bad about seeing gold go from $250 to $500 to $1000 to $1500 and not catching some of the action? 

A paid-up home, a pile of gold, and a gun to protect it. What could be a more natural human want or need? Yet weenies out there criticize all of these!

Mon, 04/29/2013 - 22:09 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ 3

Mon, 04/29/2013 - 22:12 | Link to Comment Cloud9.5
Cloud9.5's picture

It threatens their paradigm that we will be saved by perpetual printing and that Uncle Sugar can never go broke.

Mon, 04/29/2013 - 22:28 | Link to Comment kindape
kindape's picture

it continues the marker wealth paradigm where we get social cues to have 'more' than others. it has been that way only recently in our species history. we've never had equality (and never will), but vast majority of history our 'excess' vs conspecifics was measured by things that mattered; storytelling, hunting ability, creativity, strength, leadership, etc. I think most people rebel against a world where such 'excess' can be attained just by a pile of shiny stuff. (and those who downrate this will likely be owners of said shiny stuff). Most owners of gold/silver (in my experience) neglect the real drivers of the future: social/human capital and energy/resources. gonna be a sucky society if the leaders are those who have large stacks of coins but little to contribute to common/environmental good

Mon, 04/29/2013 - 22:36 | Link to Comment Debt Slave
Debt Slave's picture

He who has the gold makes the rules.

Mon, 04/29/2013 - 22:57 | Link to Comment Room 101
Room 101's picture

While I don't own vile barbaric relics, I think your analysis misses an important point: what about those who own PMs because they think that at this point in time, there really isn't anything better to put their resources in?  Social/human capital and energy/resources are all good and nice, but where fraud is rampant they're a suckers bet.  

Mon, 04/29/2013 - 23:28 | Link to Comment howenlink
howenlink's picture

As I tried to tell PUD before he got himself booted, we all have to hoard.  It is natural.  Unless you produce today exactly what you consume, you naturally need a store of wealth, a medium of exchange, to spend tomorrow.  Savings is natural.  You may lose your job, you may become sick, you may fall on hard times.  Learn from squirrels.

Tue, 04/30/2013 - 01:44 | Link to Comment akak
akak's picture

Was PUD booted?

If so, he has joined a small but very elite list of trolls who simply couldn't stop ... and paid for it.

 

EDIT: His profile still appears to be active.

Tue, 04/30/2013 - 11:40 | Link to Comment matrix2012
matrix2012's picture

PUD's latest post stamped at Sun, 04/28/2013 - 14:27... wonder if he or she really gets booted. Dont think PUD is really that bad in crossing the (imaginary) line to get the kick ;)

Mon, 04/29/2013 - 22:30 | Link to Comment Debt Slave
Debt Slave's picture

They're just pissed that they weren't buying at $400 like the rest of us. Even then they laughed and called us crazy.

Who's crying now? :)

Mon, 04/29/2013 - 23:34 | Link to Comment NoDebt
NoDebt's picture

+1

You can add me to the list.  I missed most of the party myself.  I didn't start to buy in until around $1000.  I'm probably about even, but I don't look at is as an investment as much as I do insurance now.

That's how I justify it rationally, anyway.  In the dark, jealous parts of my pshyche, yes, I hate you motherfuckers who got in while the getting was good. 

I hate missing a good party and I sure missed the shit out of this one.

 

Mon, 04/29/2013 - 23:56 | Link to Comment Long-John-Silver
Long-John-Silver's picture

You might be even but if you had kept your money in a bank you would be negative today.

Tue, 04/30/2013 - 02:57 | Link to Comment debtor of last ...
debtor of last resort's picture

The jealous part dies at 15k.

Tue, 04/30/2013 - 08:47 | Link to Comment fiftybagger
fiftybagger's picture

Yeah,

I remember silver eagle monster boxes at 2300 bucks.  Those were the days my friend.

Mon, 04/29/2013 - 22:50 | Link to Comment Jim B
Jim B's picture

Fiat love and denial! 

Mon, 04/29/2013 - 23:02 | Link to Comment Room 101
Room 101's picture

Lots of paid bloggers out there. 

Mon, 04/29/2013 - 23:09 | Link to Comment Turin Turambar
Turin Turambar's picture

IMO, not many of the detractors can afford to buy and save gold, much less pay off the mortgage on their house.

"Borrower is slave to the lender."

 

Get out of debt people and stockpile resources and save.

Mon, 04/29/2013 - 23:24 | Link to Comment gwar5
gwar5's picture

Most of them are neo-Marxists trolls. Neo-marxists are just neo-Nazis in drag and get their jollies breaking the legs off your coffee table.

 

They need you to need the collective. Anyone who is free and thinks for themselves is a runaway slave. Anyone who buys gold, ammo, or food is an absolute apostate and must be punished.

 

Bumper Snicker: (Picture of Obama's face) "Does This Ass Make My Truck Look Big?"

 

Tue, 04/30/2013 - 01:34 | Link to Comment Izznogood
Izznogood's picture

I can just imagine it: You caged up in your paid-up home, sitting on your little stack of gold - which probably fits in a baby's shoe - gun in hand and ready to shoot at any perceived threat. That's what I call having fun and living life to the fullest ... or maybe not.

Tue, 04/30/2013 - 02:23 | Link to Comment noless
noless's picture

Oh boy, i bet you go on vacations to Disney world. I'm so jealous.

Tue, 04/30/2013 - 02:30 | Link to Comment tenpanhandle
tenpanhandle's picture

Your imagination has gotten the better of you.

Tue, 04/30/2013 - 07:16 | Link to Comment Chain Gun Smoke
Chain Gun Smoke's picture

"Similar to people who don't like guns or home ownership."

It's the pro home ownership people that don't shut up. As someone who prefers renting I have friends and family telling me all the fucking time that I need to buy a house NOW because interest rates can't stay this low forever! It is mind numbing. "BUY A HOUSE" The hell you say! You didn't buy shit. You got a 30 year loan an a depreciating asset. Alot of their homes are worth less than the original mortgage and some are underwater. One or two aquantances recently got laid off. Guess what, they can't pay the mortgage based on one salary or they based the mortgage off of the main bread winner who was just an employee # at a firm.

However, I just nod my head. They've already invested in the ponzi.

Tue, 04/30/2013 - 07:57 | Link to Comment Sanksion
Sanksion's picture

The question is then, which shit will be depreciating the most in the next 30 years. Your stones or your papers?

Papers of course. I'll be glad to buy as much houses you will against paper promises. I'll get some for you with my epson.

Mon, 04/29/2013 - 22:11 | Link to Comment kindape
kindape's picture

"Should the availability of physical bullion start setting the price action, the spot price quoted in the paper market for gold or silver will become an anachronistic irrelevance."

I read that here several years ago and must admit I didn't see that as realistic, but I can see how it might unfold now. Still, owning pounds of gold or silver isnt going to help society function better or transition to where we need to go. But....point taken.

Mon, 04/29/2013 - 22:14 | Link to Comment fonzannoon
fonzannoon's picture

how does "help society function better" relate to someone just trying to preserve the purchasing power of their money?

Do I have to spend all my money on crap I don't need to support this phony economy? Maybe if they paid me interest and did not purposely shit on the dollar I would feel differently.

Mon, 04/29/2013 - 22:49 | Link to Comment Jim B
Jim B's picture

Well said! 

Mon, 04/29/2013 - 23:34 | Link to Comment Shell Game
Shell Game's picture

@the fonz - I climbed up this thread to say, "F'king Well Said!"

Mon, 04/29/2013 - 22:52 | Link to Comment Alea Iactaest
Alea Iactaest's picture

I don't get this whole "spending money" thing. Why is purchasing gold different from purchasing ANY consumable? What if I spend all my money on hookers and blow? What if I spend it all on guns and ammo? What if I spend it all on a month-long family vacation?

Reminds me of the old man saying, "I spent all my money on broads and booze. The rest of it I wasted."

Tue, 04/30/2013 - 03:05 | Link to Comment green888
green888's picture

A waiter delivered a bottle of champagne to the hotel room of George Best, the famous soccer player, and saw on the bed a large amount of cash from his gambling winnings, and an ex Miss World propping up the pillow.

"Mr Best, where did it all go wrong ?"

Tue, 04/30/2013 - 05:29 | Link to Comment Snoopy the Economist
Snoopy the Economist's picture

Does screwing hookers preserve the value of your wealth?

Mon, 04/29/2013 - 23:10 | Link to Comment Lordflin
Lordflin's picture

I would be thrilled to have a real economy to support... Till then I will sit on the sidelines, work my small farm, keep my wealth stacked and wait... Unless things really grow hot in which case I will cling to my guns and Bible...

Tue, 04/30/2013 - 01:25 | Link to Comment Izznogood
Izznogood's picture

But then again, if you're not going to spend your money on "crap", what do you need hoarding gold for, if not to spend it on crap in the future?

Tue, 04/30/2013 - 02:25 | Link to Comment noless
noless's picture

How did you miss the "don't need" part, I'm honestly curious.

Mon, 04/29/2013 - 22:32 | Link to Comment samsara
samsara's picture

"...Still, owning pounds of gold or silver isnt going to help society function better or transition to where we need to go."

 

You won't see a "Society" going thru a transition,  You will see 300 million Individual people going thru a transition.

What will be "Right" for each of the individuals is what will be paramount.

"We"  won't be going thru it. 

A lot of 'Me's will be. 

Mon, 04/29/2013 - 23:50 | Link to Comment NoDebt
NoDebt's picture

That's it exactly.  Valuing physical gold is a good indicator of LACK OF TRUST in the various institutions we have set up in our society.  If we had a high level of faith in them there would be no need to hold it.  So if the value of holding physical is high...... well, you understand the implications.

Trust was broken over the last decade and in a way that can not be dismissed as commonplace or "cyclical" distrust.  That was the biggest casualty of the series of financial bubbles we have been through.  Pursuing monetary and fiscal policies that are not understandable, arguably corrupt and perhaps patently insane, to most people, is not a good way to try to win back that trust.

We have set up a system that flashes a big neon sign reading "every man for himself."  People are just doing what is rational in that environment.  They are protecting their own.

Tue, 04/30/2013 - 01:29 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Trust.  What is one the keys, right at the heart of a functioning economy?  Trust.

What is an account receivable?  Faith that you will get paid.  What is a dollar?  It is supposed to be money, something that is highly liquid but also RETAINS purchasing power.  Since the dollar has failed in that regard people naturally look for an alternative form of money, that will retain purchasing power, gold.

As soon as people realize the government isn't looking out for their best interest we enter a new era.

Tue, 04/30/2013 - 00:32 | Link to Comment ironsky
ironsky's picture

I don't remember needing to go anywhere. 

Mon, 04/29/2013 - 22:16 | Link to Comment Cone of Silence
Cone of Silence's picture

The key statement in this article

" the demand we're seeing is from existing customers"   When they run out their lifes savings,  the buying for physical will slow down.  There are not a lot of new to the market gold buyers.   So this is not a mania just yet.  Everyone who does not have the 1500 dollars to buy a coin are out of the market.  People who can afford it are still thinking the price is too high because they did not buy it when it was going up.

Mon, 04/29/2013 - 22:23 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Wrong. Anyone who has seen the real cost of goods going up is parting with fiat to purchase physical.

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