Did "They" Ever Tell You To 'Buy Gold' Or 'Sell Stocks'?

Tyler Durden's picture


Gold bears are coming out of the woodwork to declare gold dead. Santiago Capital's Brent Johnson wonders where they have been for the last 12 years and reflects on the reality of why one should hold the precious metal; putting the recent weakness in its proper context.

Some context?


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Fri, 05/10/2013 - 19:55 | 3550232 LetThemEatRand
LetThemEatRand's picture

The Gold is dead.  Long live Gold!

Fri, 05/10/2013 - 19:58 | 3550237 FEDbuster
FEDbuster's picture

Paper gold is dead, long live physical.

Fri, 05/10/2013 - 20:01 | 3550240 LetThemEatRand
LetThemEatRand's picture

L'or papier est mort, vive l'or physique!

Fri, 05/10/2013 - 20:14 | 3550272 kliguy38
kliguy38's picture

We're entering the end game ZH'rs    the rubber is going to meet the road when this leveraged paper short collides with the physical accumulation of the East......this will not end pretty......Epic!

Fri, 05/10/2013 - 20:23 | 3550279 LetThemEatRand
LetThemEatRand's picture

Ben:  Monsieur, have some more paper gold.  It's wafer thin.

Economy:  I couldn't eat another fucking thing.

Ben:  Garcon!  Get monsieur a bucket.

Fri, 05/10/2013 - 20:23 | 3550291 bullionbaron
bullionbaron's picture

"Rumors Of My Death Have Been Greatly Exaggerated" - Paper Gold http://www.bullionbaron.com/2013/05/rumors-of-my-death-have-been-greatly...

Fri, 05/10/2013 - 20:40 | 3550333 Never One Roach
Never One Roach's picture

When the University of Texas Retirement Fund sells its $4 Billion of gold bars, I'll consider selling mine. Same....when Northwestern Mutual Ins Co. sells its massive holdings...same with the Central Banks...when they start sell instead of grabbing all the gold they can get...then one needs to pause maybe.....


But for right now, I agree with the Chinese and Indians....all 3 billion of them.

Fri, 05/10/2013 - 23:44 | 3550743 FEDbuster
FEDbuster's picture

Agreed, I will join with "Mrs. Wang" and continue to trade FRNs (or Yuan) for shinny troy ounces.  The "Mrs. Wangs" bought over 225 tons of physical, barbarous relic in March.  Not sure of how much the "Mrs. Patels" bought, but I bet it was measured in tons, too.

Sat, 05/11/2013 - 02:50 | 3550888 Taku
Taku's picture

I believe China consumed about 800 metric tons in 2012.

It's about 320 metric tons for 2013. In first three months.

China, last I heard, buys less than India.

Sat, 05/11/2013 - 08:26 | 3551068 GetZeeGold
GetZeeGold's picture



More debased fiat for me........I'M SOOOO BLOODY RICH!!!!


Did "They" Ever Tell You To 'Buy Gold' Or 'Sell Stocks'

Hmm.....not that I can think of.

Sat, 05/11/2013 - 08:35 | 3551142 FEDbuster
FEDbuster's picture

I am still a Zimbabwe multi-trillionaire, bitchez.

Sat, 05/11/2013 - 09:42 | 3551204 Pegasus Muse
Pegasus Muse's picture

"We're entering the end game ZH'rs ..."

Here's a new Andrew Maguire interview.  Talks at length about the divergence between paper and physical. 

Says Western CBs lost another 40 tons of physical gold yesterday alone.  All that pretty shiny yellow metal is heading east. 


Sat, 05/11/2013 - 11:29 | 3551351 Pool Shark
Pool Shark's picture



You too can be a Zimbabwe trillionaire, and all it will cost you is 1/8th of a Silver Eagle:




Sat, 05/11/2013 - 13:46 | 3551646 FEDbuster
FEDbuster's picture

Maybe we will see one ASE = US$1 trillion?  If the Bernak hits the meth pipe a few too many times while hitting his zero key.

Sat, 05/11/2013 - 13:57 | 3551678 GMadScientist
GMadScientist's picture


Line 'em up now to greet the sacred cow.

Sat, 05/11/2013 - 16:05 | 3551969 BoNeSxxx
BoNeSxxx's picture

Wait, was this filed under "Friday Humor"?

Sat, 05/11/2013 - 14:53 | 3551823 Mesquite
Mesquite's picture

@ Pegasus...

Thank you...

Sat, 05/11/2013 - 13:16 | 3551584 Mad Max
Mad Max's picture

I've been a zim$ Trillionaire for years now, all for the same cost, at the time I became a Trillionaire, as a pre-64 US quarter.

Sat, 05/11/2013 - 11:01 | 3551299 Rustysilver
Rustysilver's picture


Have Indians always been buying gold for their daughters and jewelry.  It probably me but I don't remember reading how Indians been snapping up all the gold that they can find.

Sat, 05/11/2013 - 12:56 | 3551536 Pinto Currency
Pinto Currency's picture


Check out these physical premia in India.

Mumbai spot physical premium on gold is currently $110 per oz.



Sat, 05/11/2013 - 13:05 | 3551552 markettime
markettime's picture

Not only has gold been a tradition in India, but Indians in general are tired of the government trashing thier currency. Every time I go back to India I am shocked at how much prices have increased. Gold is their way of coping with the inflation as well as meeting tradition from what I understand. 

Sat, 05/11/2013 - 16:46 | 3552051 AldousHuxley
AldousHuxley's picture

too much gold around your neck and you have risk of this on your way to work:




watch till the end


and leave the gold in a safe at home.

Sat, 05/11/2013 - 02:51 | 3550889 Taku
Taku's picture

double post

Sat, 05/11/2013 - 12:56 | 3551537 markettime
markettime's picture

That is funny...every nml guy I ever talk to trashes gold and pushes whole life instead. 

Sat, 05/11/2013 - 14:01 | 3551685 Doña K
Sat, 05/11/2013 - 15:34 | 3551920 debtor of last ...
debtor of last resort's picture

Sprott sold a large part of his holdings in pslv and bought mine stocks, now this. GLD etf rose this week... TBTF is contacting certain institutions to sell physical and buy paper to cover shortages? University of Texas receives a new invented subsidy in dollars for the coming years, or just the gun on the forehead?

Sumtin fishy here... thanks for your post, it's saved.

Sat, 05/11/2013 - 16:13 | 3551984 NoClueSneaker
NoClueSneaker's picture

Yo long Kyle Bass, methinks. Good move. He stilll gagged ...

He is in Asia, and definately on a BIG project ....

Fri, 05/10/2013 - 21:09 | 3550409 DoChenRollingBearing
DoChenRollingBearing's picture



Nonetheless, many of us will continue to accumulate and hold our physical gold.

bb, do you have any news re the magazine American Hard Assets?  Rumor is that it is folding, which would be a real shame.  Thanks for any information!

Fri, 05/10/2013 - 21:14 | 3550424 bullionbaron
bullionbaron's picture

There's definitely reasons to hold physical, just get tired of the lack of facts used in scaremongering.

American Hard Assets is from same editor as Australian version. I haven't seen a new copy on the shelf in around 6 months and supposed to be 6 copies published a year. Doesn't look good, I don't know anymore. Haven't been able to contact the editor.

Fri, 05/10/2013 - 21:17 | 3550435 DoChenRollingBearing
DoChenRollingBearing's picture

Ah, too bad.  I gave them a nice write-up at my blog about three months ago.  They then comped me for a subscription (one free issue it looks like).  It was an interesting idea, but maybe Oz and the USA just are not ready yet.

Fri, 05/10/2013 - 21:57 | 3550546 isudas
isudas's picture

You might try here.


or their recent edition is here


Thanks for the lead

Fri, 05/10/2013 - 23:07 | 3550686 augustusgloop
augustusgloop's picture

i'm waiting for American Hard Assets #25: chocolate thunder

Sat, 05/11/2013 - 19:00 | 3552236 Jam Akin
Jam Akin's picture

When it comes don't get stuck in the pipe...with those liquid assets

Sun, 05/12/2013 - 10:01 | 3553377 samcontrol
samcontrol's picture

The paper gold market lives on.

Sat, 05/11/2013 - 13:17 | 3551564 Xue
Xue's picture

Zhi huangjin yi si, shiti huangjin wan sui!

(''Paper gold is dead, long live physical gold'' in Mandarin)

Fri, 05/10/2013 - 20:15 | 3550274 Aeternus
Aeternus's picture

I'm not sure why the fiat tards have to keep rehashing this argument over and over again. It's pretty simple, has our debt based monetary system changed? No.


Closing price of gold 1792 - $19.39

Closing price of gold 2012 - $1,664


Yea, I don't see any kind of long term trend developing here, it's a mystery.


On a long enough timeline the survival rate for every fiat currency drops to zero.





Fri, 05/10/2013 - 20:35 | 3550319 WhiteNight123129
WhiteNight123129's picture

Your data is too short my friend.

In 1266 one French ~livre~ corresponded really to its weight of 409 grams of Silver. In 1790, it was so debased that it was 1/18th of its weight of 1266. I think we have an acceleration from 1792 onwards....

Sat, 05/11/2013 - 15:02 | 3551845 css1971
css1971's picture

The Great British Pound used to be one Troy pound (373g) of Sterling silver.

Today the Great British Pound is 9.5 grams of brass.


And they say they worry about counterfeiting...

Sat, 05/11/2013 - 22:12 | 3552687 Lord Koos
Lord Koos's picture

I'm not planning to live for 800 years, so gold's intermediate to short term prospects are of more interest.

Sat, 05/11/2013 - 10:56 | 3551202 Kirk2NCC1701
Kirk2NCC1701's picture

1792?  Really?  Another nice but totally meaningless factoid.  Assuming the truth and ALL facts matter, and not just the ones we like (because they support our agenda and ideology/worldview), then...

The only things that matter if you are buying it as part of a portfolio, are:

  1. When you are buying (I got money to invest today or this month, not 220 fucking years ago)?

  2. How long will it stay in Allocation (before I start cashing out or re-balancing)?

  3. What Volatility can I handle (psychologically, or financially if I need to cash out or choose to re-balance into more promising asset)?

  4. Asset Allocation: What fraction of my portfolio should contain PM?  10%, 15%, 20%, 25? 35%?  How much in hard bullion, and how much in paper?  Keeping in mind that the paper portion is used purely for speculation (with lower margin costs than bullion) when buying & selling.  You do NOT want to have the dealers eating your bullion profits with their margins, so avoid 'churn' with buying & selling bullion.

  5. Exit Strategy: When and how do I intend to cash out?  When I retire or die?  When TSHTF and money is re-anchored to gold/PM?  When all else has tanked and I need some money?  When?

All else is BS and noise, stated out of ignorance, or said deliberately to support a hidden agenda. 

But, since most ppl are not that smart and get distracted by almost anything (like my 3 mo. old puppy), the BS usually works (has high stick ratio), sad to say.  Well, somebody has got to 'serve' (make money off) the bottom half of the IQ Bell-curve!  There's an army of 'entrepreneurs' and predators (all very smooth & charming SOBs) looking to make money off the poor, uneducated, uninformed, gullible people, alas.  Happily, most of these work in the usual and popular establishment.  There's a reason that snake-oil salesmen and TV evangelists are so numerous in the US:  It works, it's a very profitable business!  Sad, but true. 

A good Adviser is very difficult but great to find.  Make sure he/she discloses up front how they make money and if or how they have 'skin in the game'.  My view is:  No skin in game?  No game!  If you choose to DIY, then you must do DYOH, and manage it actively as intended, and cannot get lazy or deviate from principles you set up at the beginning.  Otherwise you become... 'Unprincipled'.

I've followed Brent's AV postings for a year now, and must say I'm impressed with his profound understanding of Currency and it's (mis)creation, and Money (PM).  It was in fact an email link I got from a friend, who got me to follow Brent and thus ZH.  Interestingly enough, ZH has made me smarter, but no richer: Having increased my PM holdings significantly, has seen its cash value drop, and having canibalized the Equities in the process, has compounded the problem.  Sometimes "a person can be too smart for their own good" applies here.  And extreme positions (financial or personal) are filled with risk and dangerous people.  That much is or should be obvious.

Yes, some buy gold to hold the bullion "forever", but that is a different conversation and not part of this article. If one were to stay on topic.

Sat, 05/11/2013 - 10:57 | 3551286 Occasional
Occasional's picture

No need tonget grumpy here....
You don't plan on liv'in 200+ years?
Haven't you heard?
We've got us Obamacare!
Da gubment is gonna take care of all us!
I can't believe you're not dialed in.

......... You must not have your OBphone......

Ok, sarc 'off'

Sun, 05/12/2013 - 10:04 | 3553383 samcontrol
samcontrol's picture

most people here don,t have portfolios.

+1 capt kirk.

Sat, 05/11/2013 - 17:37 | 3552130 W T F II
W T F II's picture

And, in 1792, THIS happened:


Sound familiar..?

Sat, 05/11/2013 - 18:07 | 3552173 machineh
machineh's picture

Closing price of gold 1792 - $19.39

Closing price of gold 2012 - $1,664

Dude ... have you worked out your rate of return?

(1664.00/19.39)^(1/220)-1 = 2.04% p.a.



Fri, 05/10/2013 - 20:24 | 3550295 Jim in MN
Jim in MN's picture

OT But Holy Shit


Texas authorities arrested Bryce Reed, a paramedic with West Emergency Medical Services, at 2 a.m. Friday and have since charged him with possession of a pipe bomb. Mr. Reed was among those who responded first to the fertilizer plant explosion and served for a time as incident commander at the site. He was also shown giving a taped eulogy for explosion victim Cyrus Reed at an April 25 memorial in Waco, Texas, attended by President Obama.

Police have neither confirmed nor denied that Reed's arrest is tied to the plant explosion. However, authorities said Friday that the Texas Rangers and the McLennan County Sheriff’s Department have launched a new criminal probe into the incident, with Texas Department of Public Safety chief Stephen McCraw pledging that the state will “leave no stone unturned.”

Fri, 05/10/2013 - 20:48 | 3550354 Element
Element's picture

It seems to be saying he turned up after the explosion?

Fri, 05/10/2013 - 21:30 | 3550471 RaceToTheBottom
RaceToTheBottom's picture

That would be terrible if he was just Jinning up some OT.....

Sat, 05/11/2013 - 13:23 | 3551597 IrritableBowels
IrritableBowels's picture


Sat, 05/11/2013 - 17:39 | 3552134 W T F II
W T F II's picture

This s#!t happens all the time. Volunteer fireman start blazes they then rush to the scene to help put out.

A wacked-out "rescuer's syndrome", or something..??

Fri, 05/10/2013 - 21:06 | 3550395 azzhatter
azzhatter's picture

hmmm. I bought 8 more gold eagles today

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