Peak Gold

Tyler Durden's picture




 

We are rapidly approaching the end of cheap resources. The wealth of most Americans could get wiped out during the next decade due to commodity inflation. Focusing on your real purchasing power is critical. As this brief documentary discusses, what is it that makes gold so special? Merely a "tradition" as Bernanke would have us believe, or sound 'money'?

 

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Sat, 06/01/2013 - 20:01 | 3617272 Spitzer
Spitzer's picture

First

Sat, 06/01/2013 - 20:07 | 3617281 Pinto Currency
Pinto Currency's picture

 

Gold has integrity - that's what makes it special.

It can't be duplicated by crooks in high office.

Sat, 06/01/2013 - 20:38 | 3617321 El Viejo
El Viejo's picture

But it can be ignored by the masses looking for something a little more utilitarian. Which makes it risky at high valuations just like everything else. It can also be manipulated and even outlawed. Fear that.

Sat, 06/01/2013 - 20:46 | 3617370 Fish Gone Bad
Fish Gone Bad's picture

If anyone wants an investment of integrity, might I suggest turning off the TV, eating a diet low in sugars/high in fiber, getting some exercise and losing weight.  Investing in yourself actaully makes everyone a winner.

 

<Man that was sugary sweet. >

FishGoneBad

Sat, 06/01/2013 - 21:34 | 3617448 RideTheWalrus
RideTheWalrus's picture

Hmmm, sounds good Fish but seems like a lot of work. Is there an ETF of this i can buy instead?

Sun, 06/02/2013 - 00:05 | 3617662 Troll Magnet
Troll Magnet's picture

A monster box of ASE and Maples at around $12.5k.

8 gold eagles or a monster box of silver? Hmm..Decisions, decisions...

Sun, 06/02/2013 - 00:15 | 3617674 Pinto Currency
Pinto Currency's picture

 

EV,

Gold has been ignored by the masses for decades yet is has gone up by 5x in value.

Not much to fear on that front.

Sun, 06/02/2013 - 06:47 | 3617871 GetZeeGold
GetZeeGold's picture

 

 

All you ever hear CNBC talk about is gold.

 

It's gold this....gold that. I wish they would just shut up.

 

I keep my tradition in my sock drawer....where it belongs.

Sun, 06/02/2013 - 08:56 | 3617958 Pinto Currency
Pinto Currency's picture

 

As Simon Hobbs says, 'At CNBC, we're all gold, all the time.'

Sun, 06/02/2013 - 12:24 | 3618236 Pegasus Muse
Pegasus Muse's picture

Had he been truthful he would have said, "At CNBC, we're all Bullshit, all the time."

Sun, 06/02/2013 - 09:04 | 3617961 WhiteNight123129
WhiteNight123129's picture

Gold is not money, it is a commodity. To become money it needs to be coined and accepted as a form of payment. Before that it is a commodity with monetary attributes (store of value and stable relationship with other commodities, which makes it crucial in a portfolio when we are commodity constrained) but technically it is not money if you can not pay with it. That does not mean you should not have it in your portfolio, but Gold is only money when minted and enters the payment system. In a commodity constrainted world or precarious world, Gold operates better than paper as a store of value. If you had printing on top of that, it should have a wonderful profile. But again technically, Gold is not money.... yet.

 

Sun, 06/02/2013 - 10:53 | 3618085 ultraticum
ultraticum's picture

"Gold is not money . . . . "

 

I'll take gold or silver over fiat any day for anything.  Problem is, most sheeple are brainwashed by legal tender laws, normalcy bias, and goobermint's monopoly on violence to enforce same. 

 

If I accept it for payment, gold is money - regardless of whether your masters say so.

Sun, 06/02/2013 - 12:33 | 3618251 AldousHuxley
AldousHuxley's picture

Gold can be a store of value, BUT if gold is used to buy bread in your country, it is time to leave that place.

 

That would be like zimbabwean proclaiming "all my money is in gold, so I'm ok here in Zimbabwe". It is better to be a TSA employee in US of A with fiat than some diligent gold rich businessmen who are targets for military dictators to steal from.

 

Sun, 06/02/2013 - 12:56 | 3618303 ultraticum
ultraticum's picture

If gold ever becomes used to buy bread (lots of bread), it will be time to STAY . . . . not leave.

Sun, 06/02/2013 - 14:48 | 3618522 WhiteNight123129
WhiteNight123129's picture

ultraticum, I would take gold or silver instead of fiat money any day too. But that does not make Gold money. Now if it enters the payment system by more people like you and I it would become money for sure. But for now it has not entered the payment system, you could maybe argue that Gold is very close to money in Iran given what is going on with Turkey.

But hear me here, I am very much loaded with Gold and Silver, it is a better store of value than Fiat money. Fiat has all the attributes of money except the one crucial one which is store of value, while Gold has all the attributes of money except means of payment. THe fact that politicians prevent Gold from being a payment form does nothing to take away its store of value attributes, actually it is their actions which make Gold more attractive.

 

Mon, 06/03/2013 - 10:33 | 3620121 MeelionDollerBogus
MeelionDollerBogus's picture

wrong.

Government decides what slave-tickets are to be used for taxation and forced by the central printer.

WE the people decide what money is.

Gold is money when I say it's money because I use it as such. Period.

Mon, 06/03/2013 - 10:31 | 3620118 MeelionDollerBogus
MeelionDollerBogus's picture

Gold is money and even last year in Vietnam people bought & sold HOUSES using gold.

Sun, 06/02/2013 - 20:59 | 3619169 ATM
ATM's picture

Gold = Money.

 

Mon, 06/03/2013 - 10:29 | 3620106 MeelionDollerBogus
MeelionDollerBogus's picture

are ya gonna use 'em as weights, get all fit like Fish said, or are you in shape and see a future were you could be running with your money?

I bet you can run faster with 8 gold coins than a monster-box of silver.

Mon, 06/03/2013 - 10:27 | 3620098 MeelionDollerBogus
MeelionDollerBogus's picture

I'll drink to that! And have a smoke.

Sun, 06/02/2013 - 13:48 | 3618401 NoTTD
NoTTD's picture

Oh, fuck off.

Sat, 06/01/2013 - 20:50 | 3617375 The Shootist
The Shootist's picture

I saw Ben Shalom blinking a lot at the key points when he was done lyin'.

Sat, 06/01/2013 - 23:25 | 3617612 earleflorida
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'indeed, his personal medical staff must be increasing moar with every qe, as he nears ptsd... for whom his very bell tolls... whilst his krugman signs, and whistles past the graveyard... the grandest mortician is the make-up of a faustian face without a trace of disgrace, whom once past is but morrows fate undress'd albeit rehearse'd?'

Sun, 06/02/2013 - 06:33 | 3617859 Nu Yawks hottes...
Nu Yawks hottest club is's picture

Quite.

How many times a day does the average person need (as opposed to want) to use gold, or a gold product (i.e. one that must contain gold to operate) ?

Sun, 06/02/2013 - 07:32 | 3617908 Doña K
Doña K's picture

I check my gold watch several times a day. It operates fine.

Sun, 06/02/2013 - 09:16 | 3617973 Dr. No
Dr. No's picture

Gold plated electronic components

Sun, 06/02/2013 - 11:12 | 3618121 debtandtaxes
debtandtaxes's picture

Wear my gold 1/10 oz maple ring every day.

Mon, 06/03/2013 - 10:18 | 3620075 MeelionDollerBogus
MeelionDollerBogus's picture

/sarc, or did you actually have one made? Honestly I would think 0.1 oz too light are purity, too little metal for a ring except for a child.

Sun, 06/02/2013 - 15:55 | 3618626 SilverRhino
SilverRhino's picture

Did you pick up your cell phone, turn on the computer or watch TV ??  

You used gold AND silver.   Congrats.  

Sun, 06/02/2013 - 21:02 | 3619174 ATM
ATM's picture

One of the very reasons gold is the perfect money is because it isn't used for almost anything else. It isn't consumed, it has few industrial uses (although it could but there are far cheaper substitutes). 

It is used in jewelry, which can be easily converted to currency. It's used in very small amounts in other things. Otherwise it's money, pure and simple.

Sun, 06/02/2013 - 16:29 | 3618684 A Nanny Moose
A Nanny Moose's picture

Utilitarian? Like I junk that come with monthly subscription?

Only illegal if you get caught.

Sat, 06/01/2013 - 20:29 | 3617333 Skateboarder
Skateboarder's picture

Lumber has integrity. So has grain, and electronics. Medium of exchange is irrelevant, and that's a fact every person on the plent needs to understand. The only detail that matters is that the number of units available for exchange is limited, growing or shrinking accordingly with the number of humans on the planet and the things they produce.

Sun, 06/02/2013 - 12:36 | 3618254 AldousHuxley
AldousHuxley's picture

only thing limited is intersection of space and time.

 

medium of exchange without backing of guns is powerless. well these days you can have guns and gold, but gubermints will hunt you down with a drone, while another drone lifts gold out of your house.

Mon, 06/03/2013 - 10:16 | 3620067 MeelionDollerBogus
MeelionDollerBogus's picture

Thankfully someone is helping out on that drone issue:

http://beforeitsnews.com/alternative/2013/02/how-to-kill-a-drone-since-d...

How to kill a drone

Sun, 06/02/2013 - 21:04 | 3619179 ATM
ATM's picture

Lumber, grain and electronics do not have integrity when faced with termites, rodents and water.

Gold does.

Mon, 06/03/2013 - 10:15 | 3620061 MeelionDollerBogus
MeelionDollerBogus's picture

actually some electronics are fine in water - and those which can't run underwater can be dried and will work when dry. Just don't let the water cause a short-circuit during operations, that's all.

Mon, 06/03/2013 - 10:14 | 3620058 MeelionDollerBogus
MeelionDollerBogus's picture

bulky lumber needs to be put somewhere and doesn't have universal exchange. It's nearly universally needed but it's too big and must be protected from humidity, rain, occupying much more space than gold.

It has its value. Its value is not typically money or people would all have warehouses of wood upon which to do trade. The size matters, the weight. It's not convenient.

I understand your point it has value & can be traded but weight, if it's a solid, ease of handling, dictate what will be a medium of exchange as much as rarity, divisible account units, durability (lumber is not, not like gold). It all matters.

Sat, 06/01/2013 - 20:44 | 3617361 cynicalskeptic
cynicalskeptic's picture

'It can't be duplicated by crooks in high office.'

 BUT a reasonable enough stand in can be fabricated by using tungsten cores covered in a thin layer of gold - as some would claim occurred in the 80's-90's..... good enough to fool any Congressional types visiting Fort Knox.

 Not to mention the 'souveneir' coins fabricated by Chinese vendors......... 

Sat, 06/01/2013 - 22:56 | 3617571 0b1knob
0b1knob's picture

But can be duplicated by crooks in China.   Gold plated tungsten on an industrial level.   Virtually impossible to detect.  Buyer beware.

http://www.tungsten-alloy.com/en/alloy11.htm

 

I'm sticking with platinum and palladium myself.   Very interesting supply / demand imbalance.   And too obscure for the government of counterfeiters to bother with.

Sat, 06/01/2013 - 23:15 | 3617605 Non Passaran
Non Passaran's picture

Continued fake demand for gasoline-powered cars?
Never been so optimistic.... Enjoy the P's.

Sun, 06/02/2013 - 06:50 | 3617878 GetZeeGold
GetZeeGold's picture

 

 

I hipe someone powers up a gas car around here cause this spring has been really freakin cold.

 

The only thing on ths planet that has a fever is Al Gore.

Sun, 06/02/2013 - 10:02 | 3618018 ParkAveFlasher
ParkAveFlasher's picture

Platinum and palladium are the solution because unlike gold, they can't be salted or faked.   </s>

Mon, 06/03/2013 - 09:35 | 3619975 MeelionDollerBogus
MeelionDollerBogus's picture

You'll be sorry you said that when the sun really comes out, destroys all corn crops, much like last year. I'll bet you have no idea how endangered your food supply is. Farmers will plow 50% to 80% into the ground, brown and burned, and you'll still pretend there's no global warming. You can starve in your stupidity.

Sun, 06/02/2013 - 00:14 | 3617671 TheReplacement
TheReplacement's picture

You are very optimistic.  Being a pessimist I value cheaper metals like brass and lead more.  They are readily available except when they aren't and they have an actual purpose for which the actual person can actually use them.

Sun, 06/02/2013 - 13:50 | 3618414 NoTTD
NoTTD's picture

If you're talking about their value when combined into bullets, I'm with you.

Mon, 06/03/2013 - 09:31 | 3619968 MeelionDollerBogus
MeelionDollerBogus's picture

magnetic slide. Tungsten can NOT act like gold in that manner. The purity, thickness, mass, matter. Once checked by the rare-earth magnet test and weight and displacement it's busted.

Sun, 06/02/2013 - 07:40 | 3617912 Doña K
Doña K's picture

It's okay to be both cynical and skeptic but if you buy a fake you deserve your fate. Get a fisch scale. Stay away from bars (gold and silver kind that is.)

http://www.thefisch.com/

http://www.goldcoinbalance.com/

Mon, 06/03/2013 - 09:33 | 3619970 MeelionDollerBogus
MeelionDollerBogus's picture

WTF.

I see testimonials and computer animations.

The channel scrapgolduniversity shows you testing actual gold and silver, fake and real, not 3D animations.

I'm suspicious and not going to pay for that Fisch.

Sat, 06/01/2013 - 21:53 | 3617483 Fuku Ben
Fuku Ben's picture

Please try not to use the word integrity and those vermin in the same reply

The dirty lying thieving traitorous scum don't deserve to be in the same universe as that word

Some of them are likely the ones behind fraudulent PM products to help destabilize the market. Similar to how the North Korean currency counterfitting and money laundering was bought and paid for by crooks in high office. They probably shut it down when they weren't getting their cut.

http://www.fas.org/sgp/crs/row/RL33324.pdf

http://www.zerohedge.com/news/tungsten-filled-10-oz-gold-bar-found-middl...

Note the timing of this was during last years Sept Gold peak to kick off a big decline since then.

Sun, 06/02/2013 - 20:40 | 3619136 Buck Johnson
Buck Johnson's picture

Bingo, and it's been around for thousands of years as a currency.  If not one, then as Ron Paul said why keep it around.  It's because Gold is still a currency.

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