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It’s Official: Gold Is Now The Most Hated Asset Class
Submitted by Pater Tenebrarum of Acting-Man blog,
Full Court Press
Not a day passes without the financial media denouncing gold as an investment option and hailing the bureaucrats heading the world's monopolist monetary central planning agencies as superheroes. It began prior to gold's recent breakdown, with widely cited bearish reports on gold published by Credit Suisse and Goldman Sachs, among others. Never mind that most of their arguments were easily unmasked as spurious. It should be no wonder though: gold's rise was the most conspicuous evidence of faith in central banking being slowly but surely undermined. The banking cartel relies on the fiat money system remaining intact; the legal privilege of fractional reserve banking provides it with what is an essentially fraudulent profit center unparalleled by any other in the world (fraudulent in terms of traditional legal principles, but not in terms of the current law of course). Not surprisingly, ever since the completely unrestrained fiat money system became operational in the early 1970s, the financial sector's share of corporate profits has inexorably risen and finally eclipsed all other sectors of the economy.
The share of financial profits of total corporate profits – a direct result of the fractional reserve banking privilege and the central bank monopoly on money (via Ed Yardeni) – click to enlarge.
In other words, the banks have to protect a major franchise. It is a good bet that if gold had continued to rise in the face of money printing being accelerated all over the world, the inevitable loss of faith in central banks would have happened sooner rather than later. That it will eventually happen is unavoidable – the modern monetary system was fated to self-destruct the moment it was conceived. This is so because central planning and price controls cannot work in the long run, even though central banks are socialistic institutions adrift in a capitalist sea, so to speak. They can to some extent observe prices in the market, but the problem is that the market price most relevant to them – namely the ratio of future against present goods as expressed in interest rates on the credit markets – is not independent of their actions. There is therefore nothing that can tell them whether their administered interest rates are too high or too low. It is a system that is condemned to fail at some point (unfortunately with grave consequences for the economy at large).
The fact that a great many people ostensibly believe in its viability is not proof that it is viable; most of those who are most vocal about retaining the central bank money monopoly are directly profiting from its existence after all. That the commercial banks only want to protect a source of large profits and an invaluable backstop in case their speculations go wrong is clear, but the same is true of most academics in the economics profession. The great bulk of them derives its income from the State, and the central bank is at the forefront of supporting the livelihood of its apologists.
Among commercial banks, Credit Suisse has been a leader in the recent rhetorical onslaught against gold, and has just published a follow-up, duly repeated by Bloomberg under the non-too-subtle title: 'Gold Seen Crushed'.
“Gold, down 17 percent since January, is poised to lose 20 percent in a year as inflation fails to accelerate and with the worst risks to the global economy waning, Credit Suisse Group AG said.
Gold will trade at $1,100 an ounce in a year and below $1,000 in five years, according to Ric Deverell, head of commodities research at the bank. Lower prices are unlikely to lure more central-bank buying, said Deverell, who worked at the Reserve Bank of Australia for 10 years before joining Credit Suisse in 2010.
“Gold is going to get crushed,” Deverell told reporters in London today. “The need to buy gold for wealth preservation fell down and the probability of inflation on a one- to three-year horizon is significantly diminished.”
Investors are losing faith in the world’s traditional store of value even as central banks continue to print money on an unprecedented scale. Bullion slumped into the bear market last month after a 12-year bull market that saw prices rise as much as sevenfold. Gold is a “wounded bull,” Credit Suisse said in a Jan. 3 report.
(emphasis added)
Color us unsurprised that the main author of the report is an ex-central banker. As regards inflation, below is a chart we have recently shown, US money TMS-2. The good people at Credit Suisse neglect to mention in their report that official 'CPI inflation' has rarely risen beyond the central bank's 'target' of 2% during the entire gold bull market to date. It was completely irrelevant to the gold market thus far, so why should the outlook for the government's 'inflation' data suddenly become relevant now? Monetary inflation has been higher over the past five, 10 and 15 years than at any time since the end of WW2 in a comparable period – and it continues to accelerate.
It is therefore erroneous to claim that 'the probability of inflation on a one to three year horizon is diminished' – the exact opposite is the case. As noted above, Credit Suisse's argumentation has been spurious in its first bearish gold report already and it continues to be so. It seems more likely that a concerted public relations campaign against gold is underway, while parallel to that, a pro-central banking campaign is in full swing. We're not really big fans of conspiracy theories, but in this case, everything points to this being the case; it is just as transparent as the pro-war campaign prior to the Iraq war was.
Monetary inflation in the US since the year 2000. Money TMS-2 has more than tripled – click to enlarge.
Success! Gold Now Seen as 'Worst Performing Asset' by Investors
The gold market is of course complying so far, as the clients of the banks issuing bearish reports are bailing from their gold positions. Skeptical voices like Elliott Capital Management's Paul Singer have been drowned out by the incessant barrage of propaganda. Gold continues to decline in the near term and its chart has begun to look rather ominous.
Gold over the past week (most active futures contract) – down every day of the week – click to enlarge.
As Credit Suisse incidentally also reported, its campaign has been crowned with success: not only has the gold price declined sharply, gold has now become the 'most hated asset class' with the 'worst outlook among commodities' according to a recent CS survey among institutional investors:
“Gold has the worst 12-month outlook among commodities and will trade below $1,400 an ounce in a year, according to an investor poll by Credit Suisse Group AG.
Sixty percent of respondents named bullion as having the worst outlook, 18 percent picked copper and 16 percent selected corn, the bank said in an e-mailed report today. Fifty-one percent predicted gold will fall under $1,400 in 12 months, it said. The bank polled 185 investors including hedge funds, pension funds and family offices on May 15 in London.
“Bearishness for gold was a very clear consensus,” said Kamal Naqvi, the head of commodities sales for Europe, Middle East and Africa at Credit Suisse. “It’s not about just not buying gold, it’s about shorting it,” or wagering on a drop.
Gold slumped into a bear market last month as investors lost faith in the metal as a store of value. Bullion is down 17 percent this year, compared with the 2.9 percent drop for the Standard & Poor’s GSCI gauge of raw materials.
Fifty-three percent of investors expect commodity prices to stay near current levels, Credit Suisse said. Most were underweight raw materials or had zero exposure, while they expected to be overweight or neutral in 12 months, the bank said. Investors named relative value trades, fundamentally based directional trades and volatility as the best ways to extract value from commodities.”
(emphasis added)
The general bearishness on commodities jibes with what we have seen in the recent Merrill Lynch fund manager survey. The bearishness on gold is in keeping with what we have seen in the Barron's 'Big Money' survey and other polls. Apparently though the people who write the gold reports at Credit Suisse are oblivious to the contrarian implications of their own survey.
As we have recently pointed out, just before Japan's stock market embarked on a 75% rally in the space of a few months, fund managers absolutely hated Japan (they love it now!). As we wrote in our October 30 review of the Barron's Big Money poll:
“However, what we really love is that they hate Japanese stocks even more! As it were, we are busy writing an article on Japan that will be entitled 'Reconsidering Japan' and should be published sometime this week. There are quite a few reasons to believe that Japanese stocks will finally do the unexpected and come back to life.”
At the time, a full 76% of the 'big money' fund managers surveyed declared themselves bearish on Japan. Currently, 69% of the managers surveyed in the most recent Barron's poll are bearish on gold. One must of course admit that from a technical perspective gold currently looks weak. That is undeniably the case and there could therefore be more near to medium term downside. However, the most important fundamental data as well as the sentiment backdrop clearly remain bullish. In fact, the skepticism of investors regarding commodities in general and gold in particular in the face of the biggest money printing orgy of the modern age is what we would call an 'extreme long term bullish dichotomy'. It seems highly likely to us that a year from now or maybe even earlier, the conversation will have profoundly changed.
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In the final analysis, there isn't much more to add anymore (and thus people go away and in some cases, just get depressed). We just have to watch this thing play out and comment on the events as they happen...
"where everybody knows your name...and their always glad you came...."
Cheers fonzanoon !!!
http://www.youtube.com/watch?v=6MIVVVP_Nto
1980 was 33 years ago, unbelievable !!!
right back at you my friend.
Speaking of which, what happened to TruthinSunshine?
I don't know we were trying to figure that one out a couple weeks back. Maybe he's holding up at a FEMA camp near him.
"...I have a feeling we have a few Olsen's in here."
More than a few. I'm sure.
Too bad they don't play poker, Doc; we could clean them out.
I said it before.
They will crash the paper gold and silver market before admitting the fiat money system is going bust.
Going bust? WTF, it went bust a long time ago. The FED will "Expand" as needed, as long as the same old assclowns are calling the shots. The rest of the world is starting to compete with the US in the great ponzification, this keeps the game going.... Apparently.
The Fed expands from millions to billions to trillions in a few years, nobody has to admit anything its all there in front of us. All hail the ponzi, just look at the steaming pile of Ponzi Japan has pinched off lately.
It's a setup, hold or buy while you can.
Unrivaled debt super cycle, do not compare this to 1980.
Buy... and hold IF you can:
If gold is all that, and I suppose it is, then the elite want it all back. I propose their strategy is eternal, as valid and workable now as it was in 1838, or 1929,
...by inflation and then by deflation...
What will the people do with their gold? You can't buy food with it, or pay a utility bill. It's no good at the gas pump. All you can do with it is exchange it for cash (fiat) at some future date. In a MadMax scenario, wealth preservation is the least of one's worries.
If inflation and deflation are simply the actions of a bellows, controlled by the Elite, then they simply let you purchase dear and sell cheap. When (not if) the deflationary action of the bellows begins, anyone holding gold will be forced to sell it for food, at rock-bottom prices.
It is my opinion that in this particular case, deflation is inevitable, and this time, involuntary- driven by macro changes NO-ONE including the elite, can control.
1. Peak Oil- Energy is needed to drive an economy. Even Wiemar Germany under hyperinflation had full employment and a growing industrial base. That takes energy. As opposed to Wiemar, printing money into an energy deficit is Zimbabwean- deflation in real terms disguised by money printing. In Zimbabwe, prices in real terms (as proven by exchange rates) fell, even as the zeros on the bills increased.
2. Population stall. The world's population is not growing very fast any more, and if the trend continues, population will stabilize and begin to decrease in ten to twenty years. This equals a contracting (deflationary) economy.
3.Climate change. We have reeached 400 ppm of CO2, well past the "runaway' threshold of 350. At least theoretically, humans could cease all CO2 emissions, and the planet will continue to warm, thus increasing natural CO2 emissions (melting ice caps, permafrost) in a self-reinforcing cycle. Climate change can't be good for a delicate economy.
4.Fukushima. The North Pacific is going to die. Whatever consequenses that will have on the global economy, I simply cannot spin them as inflationary.
5.Israel. This is the realm of madmen. They will get what they want, if they have to destroy the world, and themselves, to get it. World War Three will NOT be a boon to the economy. At best it will produce Confederate style inflation (ie deflation in disguise). At worst it will produce a cinder for a planet. What will you do with your gold then?
I buy gold out of HATRED and SPITE. I buy it because cunts like Ben Bernanke and Ric Deverell tell me not to. And if the shit truly hits the fan and my gold becomes worthless, then I'll just steal what I need and, eventually, die. What's the big deal? I'm in my fifties now, so I probably only have 30 or 40 years left at the most. I'm certainly not planning to live forever...are you?
“If I'd written all the truth I knew for the past ten years, about 600 people - including me - would be rotting in prison cells from Rio to Seattle today. Absolute truth is a very rare and dangerous commodity in the context of professional journalism.”
Hunter S thompson
F'n A!
Whenever the MSM and banksters hates something, you should LOVE it.
If it drops to 1k I'm buying 10 more oz and sending jmp a thank you note with the withdrawal.
I think $1000-1100 will be the bear trap bottom. Decent support at $1000 as well.
The numbers never get anywhere near what is being predicted in the media. They have to exagerate to get people involved. Hence Apple to 1000, with everyone bailing out at 700 leaving the bag holders waiting for that $1000 to come around.
Same on the low end. they don't want you buying at $1400 increasing demand when they're looking to get in. They want you waiting for $1000 and then panic buying at $1500 on the way back up..
Quite possible. I already have the bulk of my phyz position. Any puchases at/near these levels are just icing on the cake. Even when gold was $1900, the MSM bashed it... but you have to remember who owns the MSM. None of us here are smart enough to call the exact bottom or top.
+100 grinandbearit
when AAPL went from 400 to 326 and broke the 50 day ma a few years ago, the MSM claimed the end of apple's run... it went parabolic shortly after. At 700 the MSM said it was going to 1000
This is just one example, but if MSM is any indicator, gold is getting ready for it's parabolic move very soon
There are a lot of catalysts:
etc. Not just all the bearish sentiment.
We just saw this with nat gas last year...everyone hated it, now they're calling it the "new store of value" lololol
and on the other side is impeachment, arrest, devolution of the Federal edifice, inability to "print" inflation. listen i'm as shocked as anyone that Uncle Salami can run a trillion dollar deficit and be rewarded for it. clearly i need to go to County Fair more often. http://www.youtube.com/watch?v=lMmincfTgnM
Here's a recent Seeking Alpha article in very much the same contrarian spirit, pointing out that Home Builders and Natural Gas were just as hated recently, and that this hate was a signal to buy, as evidenced by their strong rebounds:
http://seekingalpha.com/article/1439301
How apt, now you guys know how Bitcoin feels... ;)
You got 2 years or less to get your shit together.
Or at least that is what I heard. Sounds plausible.
Good luck to all.
"They" will always tell you what they fear.
Well, darn! I was wrong! I actually found some Asians who want all the gold (and silver) they can get their hands on. Sooo, there is support for Gold Bugs to safely buy all they can afford knowing that there will always be a strong market for gold when the SHTF!. I feel a moral obligation to pass along the information. Sooo, here is the commercial:
https://www.youtube.com/watch?v=FyEnG_DEB1I
A rough translation of the first part is:
We Wanna Buy Gold!
We wanna buy gold
Yeah we wanna buy gold
We think gold is sunny
Just now we ain't got no money
But yeah we wanna buy gold.
We wanna buy gold
Yeah we wanna buy gold
Like me ask you mister
Can we swap it for our sister
Cause yeah we wanna buy gold.
Squeeky Fromm, Girl Reporter
See Charlie much these days?
Jaan Pehchaan Ho (If There Would Be References (Contacts Or Knowhows))
Jeena Asaan Ho (Life Would Be Simple)
Dil Ko Churane Walo, Aankh Na Churao (Oh You Stealer Of Heart… Dont Avoid Eye Contact..)
Naam To Batao…. ((At Least) Tell Your Name..)
Haha Jaan Pehchaan Ho..
Haaye, Aaj Ye Shaam Jawa….(Oh, Today This Young Evening..)
Yun Na Chali Jaye….(May Not Go Away Just Like This (Redundantly))
Aaj Ye Shaam Jawa….(Today This Young Evening..)
Yun Na Chali Jaye….(May Not Go Away Just Like This (Redundantly))
Fir Se Na Aayegi Ye, Kisi Ke Bulaye… (It Will Not Come Back, By Anybodys Calling…)
Fir Se Na Aayegi Ye, Kisi Ke Bulaye… (It Will Not Come Back, By Anybodys Calling…)
Fir Se Na Aayegi Ye, Kisi Ke Bulaye… (It Will Not Come Back, By Anybodys Calling…)
Yeaaahh… Hooh Hooh Jaan Pehchaan Ho..
Bolo Ye Na Bolo Tum… (You Say This Or Not…)
Ho Gaye Ishare.. (Hints Have Been Passed..)
Bolo Ye Na Bolo Tum… (You Say This Or Not…)
Ho Gaye Ishare.. (Hints Have Been Passed..)
Seedhi Seedhi Chot Lagi, Dil Pe Hamare… (Straight Straight Harm Struck, To My Heart…)
Seedhi Seedhi Chot Lagi, Dil Pe Hamare… (Straight Straight Harm Struck, To My Heart…)
Seedhi Seedhi Chot Lagi, Dil Pe Hamare… (Straight Straight Harm Struck, To My Heart…)
Yeaaaaaaaaaaaa Huh Huh Huh Huh… Jaan Pehchaan Ho..
Oh, Chup Chup, Dekha Dekhi.. (Oh, Silent Silent, Watching, Watching…)
Nazren Diwani… (By The Mad Mad Eyes….)
Zara Si Ye Bat, Ban Jaye Na Kahani (This Little Talk, May Not Become A Story)
Zara Si Ye Bat, Ban Jaye Na Kahani (This Little Talk, May Not Become A Story)
Zara Si Ye Bat, Ban Jaye Na Kahani (This Little Talk, May Not Become A Story)
Haaaaye Ooh Ooh Ah Ah Ah… Jaan Pehchaan Ho…
Gold is a fickle mistress.
SubjObj:
Well, I was kinda close.
Squeeky Fromm, Girl Reporter
Federal Reserve. Reserve! Reserving what? Air???
Orwell couldn't have named it better!
You got 2 years or less to get your shit together. Or at least that is what I heard. Sounds plausible. Good luck to all.
I was talking to the guys in the Deflationists Lounge about Dimon's empty vault and how cool it would be to officially move the Lounge to the empty vault. Well! He has to do something with it!
it looks like the time is here when one needs to clarify what is he talking about - gold or "gold" (as in paper gold).
ebay search for "1oz gold american eagle" sold items:
http://www.ebay.com/sch/Gold-/45134/i.html?LH_Sold=1&_from=R40&LH_Complete=1&_nkw=1oz+gold+american+eagle&rt=nc
there was no eagle sold for less than $1500 in May.
Exter's Pyramid, baby. In a world of 100% manipulated markets the Ponzi scheme will blow up whenever the manipulators say it can, unexpectedly. I'm too old to play that game. The more the propaganda says to hate PMs the more I know it's the place to be.
BTW, IMF and the other usual suspects are saying banks need to hurry and find some 'resolutions' before the global economic downturn results in defaulting loans. Code for bail-ins.
OT/ Drudge reports a Google whistleblower is spilling the beans on Google's tax evasion schemes.
No, he's spilling the beans on Google's tax avoidance schemes.
Tax evasion is illegal. Tax avoidance is not. It might be distasteful to some, but it's completely legal. And avoiding tax through legitimate means is a duty to shareholders for officers and directors of Google or any other company.
The tax laws need work if desired collections are not being achieved. Google is, in all likelihood, simply driving through open loopholes like any other corporation trying to maximize value for stockholders. Why should Google pay tax that it can legally avoid (not evade)? They are not a charitable organization.
One thing I fail to understand is that why most analysts are recommending the purchase of Gold as a safe investment? The problem today is that the price of Gold is not derived by it's physical demand or supply but more by the speculative positions standing long or short on the commodity exchange like any other traded commodity, stock or currency.
The basic mechanism of price discovery (based on demand and supply for actual use) of anything traded on an exchange has been terminally infected by speculators having access to unlimited funds and super fast computers for trading leading to volatile price swings. This has been made worse by the launch of ETFs for anything and everything under the sun by the financial community.
The price of everything including Gold is likely to suffer when the speculators unwind their positions due to some event that they have not anticipated or foreseen.
http://www.marketoracle.co.uk/Article40231.html
LOL, what kind of bullshit are you trying to peddle here? You are equating physical gold with the ETF ponzis and scams?
Seriously, the level of anti gold propaganda and gibberish is reaching the level of absurdity.
I downvoted you coz you've been copy pasting that comment in all the gold threads. And we don't like link pimpers.
My livestock is selling at good prices this Spring. I don't care what a "market" price is. My buyers appreciate the quality and availability. My profits get invested into gold and silver. Again, I don't care what a "market" price is. The CBs can continue their games for a while longer and I'm accumulating. I'm in my mid fourties, married with kids. The kids will reap the reward unless the system collapses before and in my lifetime. Considering the ancient valuations of precious metals among all groups of peoples, what do I care about the next 20 or 30 years? I seriously doubt the CBs can hold it all together until that time with massive withdrawals coming to fund all sorts of welfare and entitlements. The young generation not able to support the old timers. Old timers with gigantic health care and insurance claims. Yeah right, that's going to work well when growth is virtually zero.
Anyway, just my 2 cents on gold and silver tonight. There is NO alternative to store wealth. Paper promises aren't worth the shit in my manure piles when it comes right down to it. When sovereigns, states, municipalities, banks and all these entities which issued paper promises are failing and "bail-ins" are ordered by a fascist monetary cabal, then I don't know what the hold up is in buying anything tangible and respected, cherished and treasured by peoples all over the world over the span of our 6000 or so years of civilized recorded history.
Livestock reproduces by itself. Requires a little TLC and some pasture, hay, grains and water. IN the end these ingredients are producing gold and silver for my family. Now that's what I call modern day alchemy!
Farmer and alchemist. TTYL.
and there were very interesting "experiments" in high yield cash in the 90's as well...amazing something the Government is trying all in its power to regulate out of existence. that's when the USA was running 300 billion surpluses and paying down the deficit in record fashion. hmmm. "where are those high yield cash outlays now" i wonder. you'll never hear me say gold is an unsafe investment. how about simple savings in a bank however? after Cyprus i gotta say "Governments ain't big fans of savings." apparently ever. strange way to run a financial system though...let alone an economy.
beautiful post.
If you ask me, you're better off to stick with the livestock. It is a muich, much more ancient and endurable store of wealth than gold. You can EAT a cow. The Elite will take your gold whenever they want it. Well, for that matter they can take your land as well.
So, here's my rant. Gold is a vote for the continuance of the status quo. If you buy gold, you're saying, "Things may get worse, but nothing will change of a systems level."
This is the fatal presumption. The world as we know it is about to shatter, and with it, all predicable, conventional concepts of wealth and wealth preservation. The thing that irks me the most about gold and its worshippers is that they can't see this. The conventional rhetoric surrounding gold reperesents the docility and mental lethargy of the bourgeiosie in spades. It is nothing but a mirror image of those in the MSM who claim gold is a bad investment. Claiming gold is a good investment is buying into the same presumption that all will continue on as it always has.
If you really think the shit will hit the fan, you need to:
1. Leave the suburbs and move to the country.
2. Buy land with water.
3. Learn a productive TRADE
4. Learn how to grow your own food/ learn the basics of animal husbandry
5. Produce a big family (for god's sake, DONT even contemplate divorce!)and /or an extensive network of friends and allies
6. Develop some form of spiritual intelligence
These activities will take all of yor time and energy. You won't have time to carress your collection of Smaug-trinkets.
Good post. If the world gets fucked back to the stone age, PMs will most likely be worthless. A lot of people I know have trouble wrapping their heads around this... probably because they just don't want to think about it.
BTW, you forgot to mention ammo... the new gold in a SHTF world.
Shit hitting the fan is relative. As I'm sure you understand, many, many human societies have descended into utter cesspools of unspeakable brutality, cruelty and chaos over the course of recorded history--episodes of sheer madness that would make the collapse of the dollar and/or the U.S. economy and your subsequent move to a livestock-filled country home (maybe you're already there) seem quaint. And not only have many of these societies survived and eventually thrived, but the value of gold (and silver) has survived with them. If you're talking about a worldwide nuclear holocaust that wipes out 75% of the world's population, then sure, gold will probably be pretty useless. But if you're just talking about economic collapse or vicious, bloody sectarian civil war (you can talk to the Rwandans about that), I'm pretty confident that you will eventually find a buyer for your gold...
Nice post, I agree completely. I'm all in Silver the current price of PM's is an illlusion partly created by manipulation but also by the paper crowd relising the game is up and getting out. Soros has been investing in Gold, if that old goat is at it then you know the writing is on the wall. I will continue to add to my stack even if the price contiues to fall. FIAT is dead.
This is one of the better articles I've read on the recent situation in the PMs market. I always like to see the evidence and the reasoning and it's all there.
I do think media is running a coordinated PR campaign against gold, but Deverell's comment that "the probability of inflation on a one to three year horizon is diminished" is such a blatant falsehood that it falls into the category of the Big Lie. Shadowstats has real inflation running around 10% YOY. How can these people live with themselves? The country is circling the drain, Ben is printing with reckless abandon, and this guy has the audacity to claim "the probability of inflation on a one to three year horizon is diminished?" Apparently this man doesn't purchase food, otherwise he would have noticed the staggering levels of rising prices and shrinking packages.
Google "Ric Deverell." Look at his face. Class dismissed...
Great news! PM's on sale? Are you fucking kidding me? Me thinks this is one of those "bright red line" moments where it becomes totally obvious that we need to choose up sides and get it on! I'm stocking up if this comes to pass, but I won't hold my breath. The markets will break first.
I think gold is a component of the survival package. To fixate on it as THE solution and store of wealth may not be pragmatic. It could be confiscated, it could be highly taxed, it could be regulated. One's best chance would be to diversify: gold, silver, cash, land, stocks, food, clean water, guns & ammo, other supplies. I believe that knowing one has ALL their bases covered, would give one the most peaceful sleep when they put their head down on the pillow at nite.
The real "gold" to me is water, food, shelter, community and weapons. Much easier to barter with those commodities than with gold. I can see going to a farmer and offering him a gold coin in exchange for food and being turned down ("What am I gonna do with that?"). The food is much more valuable and he can get more for it (whatever it is he wants). Diversify and cover all bases seems to be the way to go. Just sayin'.
I used to read that guy, Ferfal's blog. I then found his book on Argentina. Since then, two guys want to borrow it, and I have only had it 3 days.
"They" can tax, cheat, steal or rob anything they want, unless a community gets together.
Planning for canoe accidents or thefts from pickup trucks is the key.
"gold, silver, cash, land, stocks, food, clean water, guns & ammo, other supplies."
Sounds pretty sensible diversification and can amount to real wealth in a SHTF scenario.
Only about the guns and ammo that are so popular with so many ZH-ers..I have my doubts. Martial law can quickly turn these into personal liabilities, apart from the fact that when citizens turn weapons on each other during great unrest, they become a collective liability.
Though I agree with your comment on the whole, I just want to make a comment on:
"One's best chance would be to diversify: gold, silver, cash, land, stocks, food, clean water, guns & ammo, other supplies"
That's what gets me sometimes on this site. Yes - OF COURSE that is the best action to take, but what you fail to remember is a majority of people are struggling on $20 an hour or less. Maybe the ZH readership has a higher income demographic (yeah I know it does) but that advice is useless to those just trying to make ends meet as it is.
I buy the odd oz or two of silver when I can (laugh all you want) because I can't AFFORD to just go and lay out half a mil on a farm, which where I live is at the lower end of the scale unless I want a property 500kms from anywhere with no water. Lot of good that will do me.
I have however done a lot of the small things. Canning, tinned foods, toiletries etc. If TSHTF then the best I can hope for with my 'stash' when it comes is to have saved enough to buy what the yanks would call a mobilehome - basically a Van with a bed and kitchen in my case - and go from there.
We don't all have shitloads of fiat to spend and I'm sure that if we did we would do exactly as you say. It's kinda common knowledge by now after all :)
Cheers
the young or struggling can still, like the young Greeks, move out to the country where physical labor has more value, they can learn new skills and food is in an easier and cheaper supply
"I buy the odd oz or two of silver when I can (laugh all you want) because I can't AFFORD to just go and lay out half a mil on a farm, which where I live is at the lower end of the scale unless I want a property 500kms from anywhere with no water. Lot of good that will do me........"
Nobody's laughin' dude.
Keep Stackin!
Do the poor creditors in Cyprus ith 100k plus in fiat wish they jad converted it into Gold prior to the sting?
Ireland Greece Spain Italy and the remaining houses of Fiat Ponzi Get with the Programme?
Put another way :
How much is €200k held in a bank in Cyprus 8 weeks ago worth now?
Let's face the truth. The oldest and most coveted asset in man's history is the female body (breasts and vaginas). The most LOVED asset.
Yeeeaaaah baaaaaby!!!
To my mind, Dave in Denver nails it again in a recent post:
"Let's be clear here, if I thought the fundamentals of the global financial system were improving in a way that was negative for gold, I would go short gold and load up on stocks and junk bonds. No question about that. When I came out of business school in 1991, I was one of two top-10 b-school grads who went into junk bonds. That's 2 people out of about 5000 grads. No one was interested in junk bonds in 1991. But I had examined the fundamentals and determined that it was still a valid form of corporate finance. Recall, Drexel had just collapsed and everyone was screaming that junk bonds were dead. In fact, 1992 marked the start of a new bull market in junk bonds.
The key to understanding relative value is not found in charts, "technical" indicators, CNBC, Bloomberg News, any Wall Street research, Barron's, chat board, etc. Realistic and honest assessment and study of fundamentals is nowhere to be found in any of those sources. None. Zero.
The key to understanding value is doing your own research, which includes knowing where to look to find the best possible information available. Since 2002, when I first really understood just how corrupted and doomed the U.S. financial and political system is, I have yet to run into anyone, and I mean anyone, who can answer this simple proposition:
Remember, back in 2002 the U.S. Treasury debt outstanding was only about $6 trillion, about 60% of GDP. Now, it's close to $17 trillion now - about 108% of GDP - and the economy, inflation-adjusted, has not grown at all since then, especially in relation to the amount of growth in overall debt in system and in relation to the trillions in wealth being consumed by the Government. Furthermore, the spending deficits were measured in the low $100's of billions. Every year since and including 2009 the deficit has been over one trillion dollars. See any trend here? And notwithstanding the deceptive headlines recently proclaiming that the deficit will smaller this year, the truth is - the cold hard fact - that the Treasury has issued $100 billion of new debt for the first 7 months of this fiscal year - $700 billion. The trend is still the friend of my fundamental analysis.
Every single time I've presented anyone with that proposition, I get nothing but blank stares. No [one] can map a solution. Not only that, but since 2002, the systemic predicament in the U.S. has gotten inexorably worse every single year, especially when you peel away all the deceitful reporting designed to hide the interminably growing problem. When someone can tell me how the above proposition will not only be accomplished but will be put into definitive action, then I will sell all my gold, silver and mining stocks, go short gold and load up on real estate, stocks and risky bonds.
For this reason - the reason that the fundamentals supporting a significantly higher price of gold than the current manipulated price - gold remains not only the best store of wealth but also, because it is tremendously undervalued in relation to the fundamentals, but the best possible investment."
His blog:
http://truthingold.blogspot.com/
Either they need to start a war somewhere soon to transfer the plunder in to the system to patch the evergrowing hole in the economy until the next one, or they'll have no other option but boiling the frogs buy inflation, whether slow or fast.
That's why the frequency and the intensity of false flags should be anticipated to increase.
Now the black swan might be, that, this time they might not be able to start a war; a lucrative one to kick the can for a few years more. They are trying hard yet the global Conjoncture changed significantly, in the past decade or so.
This will not end good, that's for sure, the questions are: When and Where.
Easy.
By abolishing The Fed and IRS and income tax... defaulting on the interest and seniorage owed The Fed... prosecuting the Wall St. banks that caused so much of this crisis and the political class who enabled them and also profitted as insiders (and confiscating their assets and $ and putting it towards the remaining actual debt)... by reducing the government by 50% and getting it out of our personal lives and business... by restoring states rights... by creating incentives for corporations to come back to the USA and give their jobs to Americans... by taking all inhibitive regulations and taxes off of small business and entrepreneurs... by putting money into R&D... by allowing free markets and true capitalism under rule of law and fairness... by reducing existing entitlements and phasing out entitlements and everything else that stems from the false doctrines of Marxist, socialist, communist or collectivist platforms?
How's that? Did I win?
LOL...easy? Easy? Like flying around on a magic carpet kind of easy?
No, you did not win. You simply made his point.
Exactly, and to add to that - uncap the Social Security threshold which would immediately have SS in the black... forever.
math is no match for talking points
Thanks for the great weekend postings.
What happens to the dollar when it loses reserve currency status and it comes to light that JP Morgan sold off all the US Gold Reserves?
Boom.
A crowd of angry peasants will form with torches and picthforks.
Let The Hunger Games Begin...
again "gold is unloved" but FAR from "hated." when other asset classes are moving liquidity is finding other places folks. here are some asset classes worth thinking about: http://www.youtube.com/watch?v=JkhX5W7JoWI
http://www.israelnationalnews.com/News/News.aspx/168088#.UZhQIsqsZ8G
Report: Syrian Army Aiming Missiles at Tel Aviv
The Syrian army is aiming advanced surface-to-surface missiles at Tel Aviv, according to the Sunday Times.
The Syrian army has begun deploying advanced surface-to-surface missiles and has aimed them at Tel Aviv, the British Sunday Times reports.
According to the report, Syria is preparing to strike Israel in case the Jewish State launches another attack on its territory.
The army has received orders to strike central Israel in case additional attacks against Syria are carried out, according to the Sunday Times.
Now the questions are... how many have they deployed... and have they loaded some of them with chemical or biological weapons...
What's this 5 down arrows? Shoot the messenger? Thanks for posting, here's a greenie from me.
Somebody forgot to forward these disasterous reports on Au to the Asians.
I wish I could remember which ZHer said this so I could give credit where it's due...
This is like the tide going out to sea before the tsunami hits.
Brilliant analogy
Several ZHer's said this, among them AustriAnni, Supernova Born and pemdas ....
Now if we could just figure where the 8 meter mark is ...
"It’s Official: Gold Is Now The Most Hated Asset Class"
Which of course means it's the most loved asset class among the elite, and has been for ...what, five thousand years now?
And no, it's not different this time.
BTFD
Funny thing is when we deal with useless gold/silver, we always see .999 on it, but when we take out fiats, we always find 000. Back to gainsville silver coins, I already received my order just two weeks, half the time they estimated. I prefer Canada silver coins because they have .9999 purity instead of .999 found on most other coins. Panda coins also my favor, they work like the old apple stock. My grandmother told me she sold old coins from family to raise my mother during and shortly after wwII. I never forget, I just do a favor for my son and no regret.
Central banks should hate gold like fire hates water.
If that were only the end of it. In addition central banks will issue every edict, law, and regulation against the wealth of the clueless sheep.
Goldman Sach and Mastercard just took over Kenya with a slave rfid/cashless card.
Positioning of the Paper Gold Comex Comittment of Traders:
http://winteractionables.com/?p=2558
The CoT data for gold had the positioning as of last Tuesday. POG was $1,420 at that point. Managed money continued to modestly reduce long positions to the lowest level since 2008. But the big story was the continued reduction in the position of producers, who have now only hedged 27,066 contracts, or 2.706 million ounces. This represents a substantial reduction off of last week’s 37,463 contracts. In other words, producers in general — or perhaps one or two large producers – were in the market during the week buying and closing out roughly 1.04 million ounces of gold hedges.
This tells us the gold producers have little future production to deliver to the paper Comex market. Last October, they had over 20 million ounces hedged. Most of the 2.706 million ounces still hedged is spread out over months, if not years. It may also suggest that gold producers prefer to sell their gold directly elsewhere and bypass the Comex altogether as a legitimate place to conduct business. Further, since prices are higher in the physical market why deliver to the Comex warehouse at all? That in itself would be a huge event. The commercial and producer indicator on its own is very bullish, but this seems especially so because of its challenge to the paper gold Comex “market.”
They can use the COMEX as a gold mine. It is much cheaper all in cost to mine Wall Street banks than to open a whole new underground mine.
I always wondered if miners had "private" clients who flew in and loaded up.
That's how I would roll.
220T in unfunded liabilities in the USA. Default via printing or default via ???
NGD took their hedges off recently
No! No!! Ignore them, my preciousssss! We knowssss yessss we do.... we wait, here in the dark, fissssssh so cold sssso cold, but we waiteessss yes we do! We know, my precioussss.... oh, yessss we do!
Lower they take the paper price the more value I see (fact is I'm a believer, gold and silver is money and I don't give a shit what anyone else says).
The only real game for me is will I be able to buy it cheaper a week out... or a month out from now.
I also like Platinum, it's a much tighter market where South Africa and Russia are the only real players in the phyical supply.
I am not sure how you can buy physical metal cheaper even if paper falls down more...
I would be interested to know who sells for immediate delivery now at $1400s.
We had no inflow (zero) of any metals for the past month at those low price levels. Retail investors do not sell!
Therefore our sale side did not change a bit and stays at around $1600 per ounce. I am thinking to remove any price correlation from spot price (paper market) and set fixed prices until either paper rebound or we start having any type of inflow of metal at "new" prices levels.
goldenmoney.com
A guy I served under in the Service back home in USSA told me via email that our favorite Dealer is now sold out fifteen minutes after his Monday morning opening. Last time I was in the USSA, he always had at least culls at spot.
No more.
Just anecdotal, but recently in Dubai, I went to my trusted dealer who I met on a plane trip and got to know. We stay in touch. He is selling like crazy. Dubai has some excellent Au coins in a series they started. Here is a link:
http://www.uaegoldbullioncoin.ae/
I do not know how available they are outside the UAE; I think there is a Swiss Dealer and a German one.
The coins are sort of small, but real thick.
***********
The last time I flew home, this song popped into my mind for some reason..............
http://www.youtube.com/watch?v=PxyISsA0Oh0
Bingo.
I just picked up some Pt and Pd.
It was stolen from my truck, but I had the right idea.
It is therefore erroneous to claim that 'the probability of inflation on a one to three year horizon is diminished' – the exact opposite is the case
Gold is exchanged in all global markets. There isn't the US inflation only.
I can't wait until they pummel gold into the ground. Kill it off. Please, dear God, let them take it back to $35 an ounce, and do it tomorrow. Whenever they hit their price target for gold, I'm in with both barrels. Hell, I'll take it all if nobody wants it.
Don't wait...
I forget where I read it, but they said spot price could very well plummet to ridiculously low values - but you'll never be able to find physical anywhere.
The last contango in Washington.
Yeah.... ok... I'm no doomsday prepper, but lets just have one good EMP or New Madrid earthquake and then let's compare the value of any money, gold or otherwise, to the value of my stacks of guns and ammo and cans of beef stew and sardines.
Nobody said you should not be diversified in your stuff.
Arms, ammo, land, (I don't drink so I am stashing Jack Daniels to trade for smokes), TP, Bic lighters, food, batteries...........................
PMs are just one of the splendorous things.
This much is clear. There are two asset classes: shitty gold derivatives (pieces pf paper) and physical gold.
They obviously are not the same thing and while the former may vaguely derive its price pattern from the price behavior the latter, those who consume the latter (particularly in developing markets) have little or no interest in owning shitty pieces of paper.
Now you have a fascinating situation. As the shitty paper traders drive the spot price of physical gold down, there is a very deep and insatiable interest on the street (and among Central Banking types) to buy even more.
If CSFB wants to talk the price of gold down, it can only be for one reason, it and it's royal clients (particularly those in Europe) want to buy it on the cheap.
At this point you may rightfully assume that any and all gratuitous advice/bull shit from the TBTF and central banks is designed to facilitate their end game scenarios. The louder their noise gets, the greater we should be concerned about what is coming next. When there is systemic event or collapse, the shitty pieces of paper and physical gold will de-link completely (keep your shitty pieces of paper, I'm keeping my gold).
The chatter about a coming currency paradigm shift following a collapse is just too much for those with massive wealth to ignore. And many of them know all too well what it means to have your gold sewn into an overcoat.
At this point they have no interest in nourishing the magic elixir of "public trust", so it is basically kill or be killed.
This is just my casual thinking.
I have no PM book to talk but I get extremely annoyed when I read the bullshit (bullshill)in the MSM.
I think we'll see confirmation soon. A double-bottom W technical figure is being drawn. If the banksters think this is the endgame, there's no chance they'll allow the figure to complete. They will smash it down before the last leg.
If the banksters already have their shorts covered and are in for another bull trend, I think they will paint the chart to ressemble a perfect W.
My guess is that the next two weeks will be very telling, specially after OpEx.
the only way this oligarchy led world is going to reconcile POWER with efficiency, as always in history, is by crossing again the Rubicon : aka declare the demise of democracy and we the people meme in first world.
We are stealthily creeping in that direction all the while we solemnly say the contrary, finger pointing at the Julian Assanges of this world as the incendiary bogey men trying to bring rule of law down via Internet mayhem and cyber terrorism.
Creeping will now overtly change to walking fast, then to running.
The Assad and Ahmed Nijadeh bogeymen now obvious as stooge patsies, puppets in this proxy war of continents for the real riches of the world, on which has been built the tinsel mountain of electronic wealth now exposed as mirage bubble; unacceptable issue to the oligarchy happy few if this casino game brings the house down, as an awesome fart bubble going pop.
Its their future which is on the line and they are like the eagle empires of olde Europe sharpening their claws to avoid impending demise; like in 1914. Sarajevo moment not far away as recurrent nightmare.
There is no other way out of this Bermuda triangle of financialised and MIC led dystopian construct.
Things have to get SIMPLE or they have to go bust...
The complexity of governance from behind the curtain is getting impossible for the TPTB/TBTF cabal running the world via front men and political stooges like the Barrosos, Draghis and Bernankes of this world.
SOmethings gotta give, one way or the other. All it takes in moments like this is an uncontrolled spark.
Meanwhile on Oligarchy ship Titanic all crew men are busy pumping n dumping, in QE infinity and Zirped carry trade, the banksta construction of this fatal ship to levitate its battered hull from its first encounter with the Iceberg in 2008; hoping the damage can be repaired by kicking the can and that there are NO OTHER ICEBERGS OUT THERE.
Heil Abenomics gone wild! The race to bottom is the real economic track of world economy, all the while the virtual world of WS sings "we are saved and on the path to permanent levitation". Folies Bergere moment.
Cry a mountain the Midas children for your glittering dreams of river Pactole.
Follow the money: Gold shipment valued at $625,000 vanishes from Miami airport
http://www.foxnews.com/us/2013/05/17/gold-shipment-valued-at-625000-vani...
Yeah, let's head 'em off at the pass! Follow the money - and it will always lead you to where the power is ...
orly...on that jet to Geneva.
So they say here at ZH !
It would appear that the paper price of gold is linked directly to the average americans bank account, it's a secret code of how well the economy will do in the future. Now add in any debts and we are most definetly in the red on average so this should be ignored and not reported.
Why not? I mean, come on, that's bad news, that nowadays equals moar QE, which turns out to be good news. Down is the new up (, as if you didn't know) ....
Yea I think I need to get to know Maritime Ontario a bit better. I'm always interpreting the opposite.
There is always some reason given to sell low or buy high. It is always the "end of the world" or the "start of a new era". But in the end, it is just some short term momo trade that ends and leaves you wishing you had taken the other side.
http://research.stlouisfed.org/fred2/series/BASE
Besides, everyone is on the same side of this paper trade. The COT report is madness. Since this video was made, it has become worse:
http://www.gotgoldreport.com/2013/04/courtesy-release-got-gold-report-video-cot-world-upside-down-.html
The current COT seems to suggest miners are beginning to get a clue?
I've always been hated....it really doesn't bother me. I'm guessing gold is much the same....and can't be bothered
I don't believe that 69% bearish on gold is as high as we will go. As the author points out, the technical picture is weak and that 69% can go to 85, 90 or more before price bottoms. Expect extremes as we head into the big shake-out, whatever form that ends up taking. In general in extreme situations, it is the last 2%, not the last 31%, who mark the extreme.
(Not intended as investment advice. Trying to time anything here is just plain silly anyways. The move will be over when it's over. I'm currently short gold, and watching developments.)
or as Jerry said in "Another Puff"
http://www.songwords.net/waiguo/soundtrack/thankyouforsmoking/007.htm
Boo on cigarettes, don't smoke don't smoke don't smoke.
You quit smoking that'll leave more for me!
Gollem doesn't go 'My Preciousss" over paper.
Gollem knows.
Gold is still way too high for me to buy. Gold @ $300. please :)
I would appreciate that, too!
edit: Because that would enable me to buy hand over fist ...
good luck finding any at that price. It will be long gone
+1!
This is the time to buy...it goes much lower, you may have plenty of fiat, but there will be no fizz unless you are willing to pay a huge premium to any dealer who hasn't gone underground.
Gold and Silver have always been Money. They always will be.
Go to a gun show. I have gotten better deals trading for stuff with Ag than with fiats.
My oldest daughter used to pay no attention to Daddy telling her to get PMs. One day before I left for Asia, she told me she was collecting. Her reason? "Dad, theyhave these stores everywhere and people are selling their jewelry and gold. If people are lining up to sell, I am gonna buy."
My name Moritumi Sayokani and I live outside of Tokyo and my gold worth more today in my currency than ever before. Only people who live in U.S. dollars having tough time because U.S. dollar is world reserve currency and therefore better than yen or euro. Gold for me still in enormous bull market but not my currency. Yen buy less today than ever before so glad I own gold. Bansai!
I wonder how many of those managers sucked up the 40% loss on AAPL? ...or 65% on JCP?
There are consequences to irresponsible monetary and fiscal policies. The money printing may delay the assured day of reckoning, but that day will arrive and on a global scale never witnessed before. There will be few places to protect your wealth, but gold is one of them. It certainly will not go to zero. There may be a massive sell off in gold short term, but that is our opportunity to load up, because this store of value, the Gold currency, will soar as the world population seeks financial shelter from fiat currency global armageddon.
in simplest terms, gold can be used to 'back' a fiat currency if and only if gold is actually delivered at time of transaction. in all other instances 'fiat' exists. since the physical amount of gold needed to cover transactions if so small versus the number of transactions (let alone the amount) and delivery of physical so slow, fiat of some manner will always be required.
I haven't yet taken the plastic cover off of my davenport. I sure as hell aint getting rid of my gold!
Seasmoke. Bid $999 Ask $3000
You lot will love this I'm sure.
Our esteemed right honourable gentlemen think they desrve an extra £10,000 a year from the public purse. Thats right our MP's are no different to your thieving fucking scoundrels. These fuckers is pushing the boundries on decency here and you know what? They couldnt give two fucks, they dont give a damn about the plight of the poor fuckers who have to live with the consequences of their insane actions.
As the 'O' has shown you lot these fuckers are beyond the law, they are beyond the realm of decency and they are beyond the universal morality of man. These public employees are on our fucking money and over here they take home about £250,000 a year on average. Thats five grand a week, or round about $11,000 dollars. They then through no fault of your own should you be unlucky enough to lose your job thanks to their fucking outright incompetance in destroying our economy think you can survive on £53 fucking quid a week???? While they thieve £5,000 a week of the same fucking coin?
They couldnt give two fucks folk, its going to come down to us, the masses, the plebs, the fucking cash cows who pay for these un-employable fuck-wits to put this right, and as these idiots prove, beyond reasonable doubt, it matters not which country we live in, all these fuckers are the same.
Third rate, over grown school children who have never had a real job, never known hard work, and probably couldnt change a light bulb, but have the power to make life changing decisions on our half, to the point of making people so suicidal they walk out in front of an articulated truck doing 60 miles an hour on a highway because the poor fucker couldnt afford that new 'Bedroom Tax' they imposed on the poor woman, (look it up, true).
The end game must be in sight, we are living through the theatre of the absurd.
The problem is that once they are replaced with new rulers aka politicians, many of them sooner or later will revert to the old ways. Imho, a good solution to greatly limit this problem would be a compulsory screening of all candidates for public office for sociopathy and psychopathy and permanently barring the ones who show any signs of these two pathologies from holding any public office. Something like berufsverbot that Germans had for commies during the Cold War era. Also, any company doing business with the government would have to have its top management screened for psycho- and sociopaths as a precondition to be considered.
+100.
Gold is the FED superman's kryptonite! But if you surveyed Asian money managers, you would see a different story. This irrational hatred of precious metals is due to visceral hostility to natural law, they just do not want to acknowledge that doomsday is approaching for the Wall Street wizards....BTW, nothing on the SAC letter to investors that they are not going to cooperate with the federal "witch hunt" investigation??
it's really gotta burn your butts to watch fund managers sell gold and plough it all into bullshit stawks. :points: ha ha! [/nelson]
I'm all for selling my gold, it's just sitting there doing nothing. Plus, I can't even eat it.
Problem is, I just haven't found any reliable asset to exchange it for. Do you think paper with dead president faces will do?
Krugmanite :-)
http://www.stephenwiltshire.co.uk/art.aspx?Id=6016
Monte Carlo in the evening
.
http://www.stumbleupon.com/su/2MBBxU
Beautiful Minds: Stephen Wiltshire
http://silverdoctors.com/hkmex-to-cease-trading-will-close-out-cash-settle-open-contracts-monday/
This seems to be slipping under the radar at the moment. The first domino to fall? All those people who thought they owned gold but are about to be settled in paper. Where's the mainstream media now?
What's really funny is that when the price of gold finally DOES start reflecting true supply and demand fundamentals rather than just the paper pushing, the bullion banks and their lapdog media will be able to reverse their positions and say effectively 'what the fuck did you think should happen to the price, with demand outstripping supply 10+ - 1. Of course the price is going up' and what will all the dumbasses with their 'explanations' be saying? Nothing, all the 'gold is in a bear market' bs will be forgotten, and nobody will be held accountable for this fraud - because the re-assertion of reality will be so fucking obvious it will be impossible for all the pinheads sucked in by this paper fraud to ever acknowledge that they really thought differently.
Yeah, suddenly, PMs will be pumped and hyped like F*ckbook stock.
"Slammed PMs? Here at BloomingidiotTV? We never did that!"
I can't wait to see what those settlement prices will be. Not that it matters, it's still paper. Those sorry fuckers better turn that paper into physical as soon as they get it... if they can.
I am grateful my grandpa taught me coin collecting and the value of True Money.
Now I am teaching my grandkids, who are becoming avid collectors, even their mom.
Of course, the kids have already lost all their coins in a school safety drill accident.
Next up, a canoe trip with grandpa.
I was looking through a reprint of a century old Sears Catalog. The prices are clearly 1% of todays prices, or less. Gold was $20/oz then, too. That would make the fair price of gold about $2000/oz today. If you factor in the greater population gold should be trading at $4000/oz or more.
har har har, but then why is it at 1400 and going down?
The FED, Bank of England and the IMF understand that they all own just a tiny amount of gold which is maybe in storage or most likely leased out or re-hypothecated in some type of paper scams tied up in the Chicago and London derivative activities.When you tally up the central bank gold tonnage it is compared to the total outstanding worldwide.So,who owns most of the worlds' gold?Try ordinary folks like the people of India and China and Europe.It has now become popular once more to collect coins and bullion in the good ol' United States.The big reason why of course is now everyone has been told about what the Constitution actually says along with the Rights that States have in order to pay bills and debt in gold and silver.That has big implications if taken seriously.Just throw in a lack of trust in the monetary system and in the Federal government.All you have to do is read the newspaper about how the Federal Government of The United States treats its own people like dog-shite.You couldn't even imagine how much literal HATE that individual loyal Americans feel towards the IRS.That's HATE that is tangible towards Government from THE PEOPLE.You can cut that HATE with a knife it's so thick.So,the FED has appox. 8800 tonnes in theory + other central bank holdings which add to the total held by banks.You subtract that bank total from the appox. 170,000 tonnes held worldwide.That's a worry for not just for the FED but for world Governments due to geopolitical reasons. If a monetary collapse occurs they are worried because of the transfer of wealth that will change hands in an instant.If and when that happens and nobody including economists knows the future,a partial gold standard may be brought in as a temporary measure to supplement a new monetary reset that could be agreed upon by the G20 leaders.It has aleady been studied to death.The present financial crisis if it morfs and expands out of control will force gold to become a very valuable asset.The price of an ounce at present may become the price of a measured metric grain.Anyone buying will buy a grain,not an ounce.The greatest demographic reason behind the gold safety net occurs when you look at the world population demograhics concerning population growth and where that growth is occurring,along with the timespan for that.As a trader, I always buy a form of "monetary insurance" and keep it "as a store of wealth in case of disaster."The manipulated paper price is important to me now because I want to buy more while it's still cheap and on sale.With gold you want to pick away buying as the fiat money price drops for it.Do as the Indians and Chinese do.You wouldn't go through life without fire insurance on the house and car insurance would you?I still believe what Jim Rogers has to say.He said the 1800's belonged to England.The 20th century belonged to the USA but the 21st century will belong to the Far East.
You goldilocks trolls had better hope this is setting up for a W move and not a tulipmania style crash.
You're not really equating tulips with gold, now, are you? LOL...
Gold is the one asset the asshats love to hate !
Does anyone know about a technology that can spot 14K - 24K gold from a satellite?
If so, then I would like to have it....
A one year old report for your reading pleasure....
http://www.eutimes.net/2011/05/russia-says-imf-chief-jailed-for-discovering-all-us-gold-is-gone/
Gold IS way overvalued, or silver is way undervalued, or perhaps a bit of both....... The ratio is over 60:1 compared to a historical ratio of 16:1
What's the 'logical' explanation?
The beta for gold is going to shit, but it's still one of the most risk-less investments. Tell me again what I'm supposed to do with this MBA when nothing makes sense?
The U.S. and other countries have been hammering on the Swiss banks because they allow/encourage secret accounts. We see headlines like:
"Pressure Grows on Swiss Banks to Expose Tax Cheats' Billions";
"Germany launches tax probes against Credit Suisse employees";
"Swiss complicit in major offshore tax scams";
"U.S. to Offshore Cheats: We're Not Done (Credit Suisse Group AG said it has been responding to subpoenas and other...)";
"Federal Tax Crimes: Credit Suisse Continues Ratting on it Own and...";
etc., etc.
Is it possible that Credit Suisse has cut a deal, part of which is to rat on their customers and another part is to downplay gold?
I suspect the answer is yes but then what do I know.
what hurts gold the most now is the need of miners to show a profit.
they should just announce that they can't make these money at these prices, so they're taking a little vacation.
the un-availability of physical would break Comex' & LBMA's backs.
what hurts gold the most now is the need of miners to show a profit.
they should just announce that they can't make these money at these prices, so they're taking a little vacation.
the un-availability of physical would break Comex' & LBMA's backs.
we few, we happy few, we band of silver holders . . .
"Not a day passes without the financial media denouncing gold as an investment option."
August 1982- "The Death of Equities".
In 1998, after the DOW had fallen nearly 20%, Barron's ran a story titled, "Is it 1929?" Shortly aferward Greenspan dropped the rate to 4.75 and the DOW went from 7,500 to 11,700.
"The banking cartel relies on the fiat money system remaining intact..."
Gold went parabolic into its 1900 price peak. 100% of parabolics fail. Is there a conspiracy to drive down the price of gold? Was anyone talking of a conspiracy to drive the price of gold up to a parabolic 1900 price blow off top?
In the collapse of the price of gold, it seems that one needs to pay attention to the fact that the dollar has gotten stronger and the economy has gotten weaker- deflationary pressure.
The price of gold ran up for 10 years, a multifold increase. At some point there is a bear market. That some point is now.
“Bearishness for gold was a very clear consensus,” said Kamal Naqvi...
Bearishness is the consensus at the bottom of a bear market. "Next stop DOW 5,000?" When that headline appeared in a mailer for a market newsletter, the DOW later bottomed out at 7,100. Those waiting for 5,000, missed buying at the bottom. The person projecting gold to 1,000 in 5 years is likely making the same mistake.
6 months ago no one believed gold would drop to where it is. Now no one believes gold will ever recover to where it was 6 months ago. When everyone is on one side of the boat, it is the wrong side to be on.
Gold went "parabolic" to $1900 and is now in a bear market?
LOL...some of this so called analysis is pretty funny.