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Peak Gold
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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Peak ignorance? Peak serfdom?
mass arrogance
it's a toxic brew..
Its good see an American organisation cite Iranian financial innovation. Once you finally kick out the Zionists from your political system I hope there will be a resumption of cordial ties like those that existing in the early 1900 when Iran benefited greatly from US enlightenment values and support in creating its constitution.
Yes the dollar along with all fiat toilet paper is collapsing, I'm not arguing this point, just fuck off if you don't agree...
An acre of corn is hard to transport and store. Distilled in to shine it is easy to transport, store and sell.Gold is the same, only without the inevitable hangover.
More beer bitch !
I reckon that peak silver will be far more interesting than peak gold.
Clinkity clink clink.
Both peak silver and peak gold are going to be highly interesting.
What will be even more interesting, however, is what we will have to go through to hold our metals all the way until the end.
Brief documentary?? Here's an "investment documentary"
http://www.youtube.com/watch?v=4cIhHiFmkts
gold is a thing, not a belief system.
at least, that's my belief.
:)
I think I have typed something like this before. We use gold because its properties have made it a consistent barter exchange intermediary over time.
It has come to my attention that some are using the word "bitches" innapropriatly and i feel compelled to address it.
Incorrect "silver bitches"
When used in this context the rich history of dipthongization should always be demonstrated.
Correct "silver baetches"
I prefer Bitchez myself........
I likes da Ho's.
I can't trust you - you inappropriately spelled the word inappropriately.
arrrgh.
It's "GOLD, BITCHEZ"
<metal> COMMA bitcheZ <--- with a Z.
Just cuz.
Tradition or Anal Retentiveness??? Maybe that is why 95% of gold never "moves" on the market. . . OH, that thought gives me an idea for a brand new Irish Poem!!!
Shiny Heiny
A Gold Bug investor sooo bold,
Bought a huge "Hintern Stecker" of gold.
He shoved it way in,
But then couldn't grin,
In stark terror of losing his hold!
Squeeky Fromm, Girl Reporter
Not up to your usual standards. Try composing these _after_ you get done blowing your bankster pimp, not during (he'd appreciate it, thanks for the effort)
these are not
the gold kilos
you are looking for...
Not too long ago I saw a 24 hour "WE BUY GOLD" storefront open across from a housing project full of blacks.
I for one tend to think that many of those behind all the recent "WE BUY GOLD" signs know what is coming.
I get it - because they get a break on their rent, they're more likely than the rest of us to be able to stash some of their earnings in gold, right?
Wait - they distrust Jews and associate Jews with banking, so they're more likely to hold gold?
Wait - they probably jacked your grandma last week and need a convenient outlet for her jewelry?
Wait - they have a**loads of cash from their part in the 'war on drugs' so they can afford to buy thick gold chains, or 'bling', as I believe they call it?
I guess I don't get it after all. Never mind.
You misunderstand--the blacks were the ones SELLING their gold.
While I didn't go inside the "WE BUY GOLD" storefront to see who owns it, I have a pretty good idea of who it was.
Mr. T of the A team was an early gold investor.
Can't help but think of the bogus peak oil scare tactic when I watch this...
We stepped into the wind, he had a gun I had a grin, you think this story's over but it's ready to begin! Beastie boys
I may be beating a dead horse, but since every single person who comments on a gold thread beats a dead horse of a different color, it is probably fair.
The infatuation with gold is, for me, forever puzzling. Yes, I don’t get it, other than as just another asset which sometimes has its day, and sometimes doesn’t. I've bought and sold plenty of it. Folks around here will question anything and everything---except gold. A tornado in Oklahoma brings out speculation of everything from HAARP to chemtrailing to pre-diet Larry Summers flatulence, but virtually no one questions the supposed eternal value of gold. I appreciate that historically many have held a fondness for it, but the vast majority of those people are dead and cannot be counted on to do the absolute only thing that can make the price go higher, which is to buy it. I sometimes wonder if many don’t think gold contains not a tungsten core, but yeast, and that it somehow rises on its own. Because I’m an agnostic with respect to a shiny element having some intrinsic value, I’m stuck in the mindset that, like anything else, prices reflect supply and demand, and that “demand” part must combine willingness as well as wherewithal. One without the other is useless.
I also cannot help but suspect that the shine on gold makes some people blind. I know it makes them prayerful, as a perusal of any gold website or article will make abundantly clear to anyone. Most gold threads also will bring out the same tedious arguments about a “man’s suit”, the establishment of the Fed and the dollar’s subsequent 97% purchasing power decline, and endless printing. That’s all well and good, but I have to ask: Does anybody out there know someone who gets paid 1913 wages? While gold might still win the “man’s suit” argument, it is more accurate to measure it not against a 1913 dollar, but against an average wage, as in how many week’s pay did a man’s suit cost in 1913 vs. 2013?
An objective outsider can find lots of unintended humor when reading a gold thread. For example, anyone who has held APPL from $705, even if they bought at $20, is an idiot, but those who have held silver from $48 and experienced an even larger decline are still okay if they bought at $4. Tom Stolper is the butt of jokes, but Jim Sinclair, who has a worse record than Stolper (Stolper has been right at least twice) is a "respected" expert. Then there’s “when Central Banks sell gold (Gordon Brown) it’s a buy signal, but when Central Banks buy gold (China, India), it’s a buy signal”. Next is Chinese consumers are idiots when they speculate on property or low quality diamonds, but geniuses to be emulated when they speculate on gold. And gold won’t be in a bubble until the average Joe starts buying, but the average Chou or Cho(pra) doesn’t count.
A while back Tyler posted a chart showing the Dow/Gold ratio since 1913. It showed very dramatic swings. What it also showed, but which was not noted, was that since 1913 and the establishment of the Fed, the return on equities has dwarfed the return on gold. In other words, any Methusaleh who has been holding gold since 1913 might be able to shop at Men’s Warehouse, but the one holding equities since then wears Brioni.
I know that anyone who doesn’t use 1999-2011 as a means of comparison is accused of cherry picking, but one can choose a lot of time frames and see that other assets outperformed gold. Pick what might be considered neutral ground, like mid 1980’s, so that the time frame from then to now begins to approximate the working life of a typical American. By the mid-1980s gold had come well off its peak, bonds well off their nadir, and equities had already enjoyed a few solid years from August of 1982. Measuring the performance since then (gold, equities, the then-benchmark 30-year UST), gold comes in third place.
A little thought can suggest why equities might outperform over time. Equities are, quite simply, a claim on the net assets of an ongoing enterprise. Implied in that is an option, in that an ongoing enterprise will always price its production in whatever the agreed-upon means of exchange happens to be. If that means is fiat, then profits will be measured in fiat. If that means is gold, profits will be measured in gold. If a concern is truly “ongoing”, then that concern has pricing power, which means it is a natural inflation hedge. Obviously individual equities require the purchaser does some homework, and past performance is not indicative of future blah blah blah, but in the long term we’re all dead. Each of our realities is a single lifetime, so all one need do is match the preferred asset class and means of exchange with one’s lifespan and all is ducky. I’m not championing equities here, but rather just suggesting a rationale for why equities seem to outperform in the long term.
Does gold hold its purchasing power over the long term? Maybe. Maybe not. It is quite likely that the all time---as in post Oldavai Gorge, or post 8000 years ago for Biblical strict constructionists---low value for gold was 1999. Yes, it’s had a heck of a run since, at least until 2011, but it might be wise to consider why its purchasing power was so recently at an historical nadir. Could 1999-2011 be merely a dead cat bounce? Could it be---here’s one for those who like HAARP, chemtrails, and lizard skin red-shield Luciferians---a giant pump and dump? One should at least give this some consideration, since the “elite” are scoffing up productive assets at an unprecedented historical pace and happily assisting retail to load up on inert ones (e.g., US Mint, Perth Mint, Sprott, etc.).
Now we have an article on “peak” gold, an attempt to piggyback off of peak oil. I see two major differences that makes the use of the term a bit spurious, which I suppose is like being a bit pregnant. Oil is consumed, and is thus not only finite, but declining in amount. Secondly, the world as we know it would not be the world as we know it if oil disappeared, but collective humanity wouldn’t skip a beat if gold disappeared (although ad revenues would tumble). The first commodity represents real value, the second merely an affectation or a fad, albeit a long running one.
I sometimes have a smattering of envy for those who are convinced gold is the answer to any question, just as I do the same for those who have found another faith in another supreme entity, but I guess I am cursed by having a skeptical mien. I simply cannot accept that an otherwise nearly useless element will always and forever be held in the highest regard by those responsible for the most democratic of all human enterprises: the election of what is to represent the means of exchange in human transactions.
Somewhat related and most likely surprising, Martin Armstrong posted a chart today showing various Central Bank balance sheets as a percentage of each nation’s GDP. Relative to others, Bernanke is a printing poseur. And the winner as peak printer? That bastion of fiscal conservatism and home to the Gnomes of Zurich: Switzerland.
(I tried to be polite and come late, so as not to clog up the thread, letting the faithful do their witnessing first.)
No counterparty risk Chindit13 and Gold is money. The CB's are hoarding it, as are the Sovereigns,
because the fiat currency is in a state of failure, as is the western financial system + Japan.
Gold is the perfect antidote for the pervasive fraud and corruption that envelops us in the West.
I do agree that we beat it like a dead Horse and it does get old...
Got Gold ???
Got Farmland???
Got Health???
Got testicular fortitude ???
Got a little of some, a lot of some others. Right or wrong I measure wealth in the ability to obtain necessities, which means I have to constantly adjust the asset mix. To measure wealth in terms of a single asset is pointless and non-utilitarian. To the extent that I held some PMs since 2011, I have lost wealth, because it takes more PMs to purchase necessities than it did then. Other things more than made up for it. Dollars beat both gold and silver quite handily.
Fiat will end when the 7 billion who use it and pine after it in its current 180 forms have a collective change of heart. That could be tomorrow, it could be fifty years from now. The whole "any second now" seems to be some sort of Godot Time. The correlation between debt buildup, fiat printing and PM price is not looking too good either. And at the risk of violating ZH's new rules, I do not think that Chinese and Indian retail represents the smartest of smart money. Obviously I could be wrong.
Chindit13 - i respect you skeptical mien and enjoy your well crafted posts; people like you is what brings me back for more at ZH (plus of course the many articles and info thanks to Tyler). With all due respect though, in my humble opinion, the 7 billion will not have much to say about the longetivity of their lifes let alone about the future of the financial system.
on another thought from your message, i wish i had gotten into AAPL at 20s but again in retrospective i wish i had done too many things especially as far as investing is concerned.
love the edit feature, great for tards like me with add who writes before switching on the brain.
OT. if ZH was to change this blog platform and get it right it should be bought out by a major , the chick in Yahoo comes to my mind. Love to hear peoples opinion if "Tyler " would sell out to a bigger company, or this is just independent charity journalism?
Tyler..would you sell?
I have lost wealth, because it takes more PMs to purchase necessities.
I don't spend "wealth" for "necessities". Is this word choice intentional?
pine after it?
If people weren't a gun-point to pay taxes with their local fiat they'd want none. That's the true purpose of it. One heavily armed party decides they will issue only fiat and jail you if you use something else. Another heavily armed party working with the 1st decides they will accept only fiat and will open fire if you too fervently resist and kill you or jail you.
It's like the positive and negative terminals of a battery.
Once connected the power can be extracted.
That's the purpose of fiat. To turn you into a copper-top battery.
No one PINES for it. They're forced into it.
The Dow gets rejiggered throwing out rotten companies for successful ones while gold is just gold. Perhaps it would be more accurate to compare the Dow from 1913 companies to gold today. Oh wait, you couldn't because I suspect we would find that most if not every Dow company from 1913 is no longer in existence.
e.g. KODAK (Still barely alive, but long since dropped from the DOW)
Yes the Dow gets rejiggered, but a diverse basket of equities, even accounting for bankruptcies---but including dividends---beat gold by more than 100% over the entire 100 year period of the Fed's existence. Before I embarked on the calculation, I did not expect it to be so great. If one thinks about it, it has to be that way, because otherwise everyone (i.e., the quintessential rational investor) would just sit on their gold and do nothing, make nothing, create nothing. Besides that, most people find that killing time from cradle to grave is a lot more fun if one owns something productive, rather some something inert. As I've written before, how often would Becky Quick go visit Warren if he had his wealth stored in an 12' x 12'cube of gold?
So Chindit13-
Should money be what government dictates or what two people in a transaction decide?
Obviously people can keep their mouths shut and barter (and avoid taxes), but when so many are willing to accept the mandated fiat, might as well use it until somebody won't take it anymore. It's also much more convenient than filing off a few grains or sending bars off to be assayed.
Money is a democratic manifestation of faith, and like gods, can take many forms. All it requires is a congregation of like-minded believers. This is all a rehash of the same tired arguments, but as the eternal skeptic, I know full well that gold is essentially as useless as fiat. If I can fool some of the people some of the time to accept it in exchange for something I want or need, I'll use it. If I can ride its coattails when it is in favor, I'll buy it. Right now, everything I want or need can be obtained with cash dollars, and I can obtain more of anything today with dollars vs. gold than I could in 2011, and for most purchases I can remain anonymous. Like everyone else I bought at the bottom, but I admit I sold a couple hundred short of top tick. Looked bad then, looks pretty darn good now. When the guys who started the bull market in 1999 stop unloading their stash, I'll think about going back in, but until that time I can see another few hundred dollars to the downside.
It's also much more convenient than filing off a few grains or sending bars off to be assayed.
I still like silver (dimes) for such transactions.
Chindit, I can't help but notice that you neatly sidestepped Timmy's question regarding what SHOULD be (not what is) money.
And for what it's worth, I once again find your reflections on gold rather dissembling and dishonest ---- not as bad as Nadler's, perhaps, but in that same general conformist, pro-Establishment vein. To equate the naive and ignorant faith in fiat currencies (which are ALWAYS nothing more than a ponzi scheme enforced by governments at gunpoint for THEIR benefit and not ours, and which ALWAYS fail in catastrophe) with faith in sound and honest money backed by (or consisting of) gold and silver, is historically ignorant, intellectually absurd and simply disingenuous .
Chindit - what is gold IN YOUR MIND? It is many things to many people, at even a single point time, and you appear to jumping head first into a bottomless rabbit hole here.
Money - a medium of exchange or (sometimes) a store of value
Asset - property owned and regarded as having monetary value
Investment - the act of investing money for profit or material gain (without getting into long vs short)
Speculation - an expression of an opinion based on incomplete evidence
"Right now, everything I want or need can be obtained with cash dollars"
... As to people keeping their mouths shut and bartering- why not look at the Wangara and the silent salt for gold trade-- it would really suck not to be able to go to the corner grocery store and pick up a package of salt for a single piece of infinitely reproducible fiat money.
It depends on when you sell. In 1913 the down could be bought for four ounces of AU. In 1980 it could be bought for 1 oz of AU.
Please realize that every argument you make about gold (does nothing, sits there, makes nothing) applies PRECISELY to cash as well - neither do jack squat until you put them to work.
Try another calculation: Double the size of your investment pool, and keep half in cash and half in stocks (more realistic!). Then compare that investment over 100 years to half in gold and half in stocks. An entirely different story will emerge.
It depends on when you sell. In 1913 the down could be bought for four ounces of AU. In 1980 it could be bought for 1 oz of AU.
Please realize that every argument you make about gold (does nothing, sits there, makes nothing) applies PRECISELY to cash as well - neither do jack squat until you put them to work.
Try another calculation: Double the size of your investment pool, and keep half in cash and half in stocks (more realistic!). Then compare that investment over 100 years to half in gold and half in stocks. An entirely different story will emerge.
Agreed, BUT this time is unlike any other in recorded history, so it is DIFFERENT.Gold, a Slvr should be bought for one reason, IMHO, INSURANCE.To not do so makes one subject to 100% losses, in these days we live in NOW.
Inert is fine with me as compared to Corzined.
She might enjoy some "Goldfinger" so she might go quite often.
Choosing that diverse basket of equities is where the catch lies. Which basket? What mix. Yes you can by a SPY or whatever now but until recently those vehicles didn't exist so buying "Blue Chip" in 1920's, most didn't fair to well through the 30's. I don't disagree so much with your theory but as with most theories they don't work in the real world. Not too many people of investing age in 1913 still living. Most died pauper's. Or say you started investing 20 years ago in an index fund, and you were in your mid to late 20's as would be reasonable. Now your in your mid to late 40's how does the real world application work? I suspect it's not that great even factoring in the last year's gains (Suspect as they are they are still gains for the interim).
+1 although I must admit that I could not read your entire post. That video was an ad. I did like the pallet racking full of gold bars though. If only.
Your post roughly translates as follows:
I don't understand the infatuation with money.
100 years ago your post would have made no sense to any person living on this planet. What has changed since then? We've all been forced to recognize and accept paper rather than real money.
Commerce requires money for anything beyond direct barter. Gold and silver have long been the most reliable (and only real) money; after thousands of years of experimentation they are king and queen.
Did you use Google translate? There' still some bugs in that, you know.
I accept that faith in fiat is bizarre, but it is what it is. I know at the same time that faith in gold is equally bizarre, and I look around and see that the vast majority of living human beings believe money is fiat. Majority rules. Yesterday is yesterday, and there is no obligation that anyone should believe as others have occasionally believed in the past. I see no advantage in substituting one bizarre faith for another, and I think it is both absurd and naive to think a $65 trillion world economy should be based on a randomly distributed element. Absent pure barter, every transactional system is The Emperor's New Clothes writ large.
If you think people believe fiat is worth something, and gold is worthless today, why does even the market for paper gold (i.e. not actual gold, but the promise to deliver gold) keep indicating otherwise?
Gold is the only money and the market recognises this. How many people put their savings in FRNs? None. They invest in USD-denominated debt instead. USD-denominated debt is not money, just like Gold-denominated debt isn't money either.
If you can tell appart money from debt, then you can understand the rest.
"Absent pure barter, every transactional system is The Emperor's New Clothes writ large."
Yes and No. Medieval Market scrip was issued in the morning and had to be returned before close, resulting in pure barter... at the end of the day (this IS where this saying comes from)
gold is Emperor Midas' New Clothes, then it was originally backed by meteoritic iron, which was the most valuable and useful metal of the world, then. note though how lasting his scheme is. and there is a reason for that
time preferences
majority of people world wide have no clue what fiat means .
Isn't it a small factory prerusted Italian car?
You're making very little sense with the emporer's new clothes line. That story is all about pretending. Is it easier to pretend with fiat - where men determine everything about it - or with gold, where nature has literally set it down in stone?
Majority rules? How has that worked out for money? The entire planet is drowning in debt because we have a monetary system where money starts as debt. It's allowed governments to enslave future generations. Don't be so cavalier.
"I've bought and sold plenty of it."
Physical? The reason I ask is there is somthing about the act of exchanging federal reserve notes - which are dependant on the denomination printed on them- for physical gold - which could have a picture of a baboons ass on it and be worth the same- that allows understanding of why gold is gold. All your points are valid and people get caught up in there arguments wether its who is going to win the super bowl or wether gold is going to 10k. As a means of preserving wealth gold is in my opinion the cleanest shirt in the laundry pile by far. If based on what you know holding somthing else lets you sleep at night thats the right choice for you. I consider the biggest risk of gold to be confiscation and I consider it to be substantial. Its pretty hard to exchange gold for the food and energy you need to live if it has been outlawed. The alternatives to gold as preservers of wealth have fundamental serious flaws IMHO. Your critique of gold as a fad that the people might discard applies to the alternatives to gold as well. I see people deciding things are not as they thought they were in regards to the alternatives to gold every day. Everyone is placing their bets for wealth preservation that is for sure, and in that context most consider that PMs play a significant role.
Good response. I can accept a difference of opinion, rather than dogma. I don't believe ZH was intended to be an echo chamber, though it tends to play one on PM threads. Certainly there are plenty of PM echo chambers elsewhere on the web where heretics and asset philanderers are unwelcome.
As for the variety, both types, paper and physical. Unlike many who accept without question what the promoters say, I also check things out directly. When I heard the gold shops of Asia were mobbed, I physically checked it out in several countries, including the most often mentioned ones. The third week of April that was accurate, after that not so much. When I heard paper spot and physical spot were far apart (Jim Willie claimed spot physical was $2000 when gold was $1375), I visited large physical dealers who make two sided markets. Cash and carry was spot bid and ask. I'm not surprised small lot retail coins carry a premium, since dealers have SGA to cover, minting costs money and takes time, dealers get stuck behind high cost inventory in falling markets, etc. I'm also not surprised when my side order of bacon at Bagdad Cafe is priced differently than the CBOT pork belly settlement price.
Though I tend to be agnostic, I subscribe to Ecclesiastes 3:1. For the time being, I believe some things are out of season. I don't know what the correlations should be, but I do know they are not what most claim, so I look elsewhere for answers.
I like your last phrase A LOT.
Wish people here would just be more specific on how they are making their BETS, besides guns , gold and beans,,,It,s valid but come on, it's 30 % that , 30% boating accident bitchez, the rest in mainly silence.
It is not that hard , something like ...
even very roughly...people could say..
30% real estate/farmland
30 % physicall gold/and or silver boating accidents( not me, i " bet " on miners).
30 % stock and bond fiat promises .
10 % fiat in cash..
right or wrong i would love to hear some NEW details and opinions on WEALTH PRESERVATION, if you have any of course.
Over the last four years I have had three people come to me newly awake, and say "OMG you were right, its all a ponzi what do I do?". I never tell them where to place their financial assets i dont know what they consider wealth. What is "wealth"? For me a primary component of wealth is having a healthy physical body. I have made the assesment that our current financial/energy situation are intertwined and not sustainable so my choices are radical. I have made my best assesment and acted accordingly with what I have. Im ok with my choices regardless of outcome. The first step of preserving wealth is defining what it is. Money is not wealth. Everday you see old humans getting prepared for death that dont know what to do with their money. They spent their whole lives aqquiring it , like trained monkeys, and in the end it has no value to them, and in fact is a burden. The shock of realization that they are not their money is often denied to the end and often generates much drama. You were born and you will die. You are not permanent. You money does not grant you imortality regardless of how many charities or trusts you donate to. As humans we desire stabilty and there is none. We create illusions of permanence with money earning and owning chief amongst them.
For me a primary component of wealth is relaxation. Waking up at three in the morning and having to see what my forex bet is doing is not relaxing to me, so a large amount of my choices where my financial assets are placed are based on that aspect of my perception of wealth. One you have gazed beyond the veneer of etfs, and money markets there is no turning back. I dont believe the foundations of belief in stocks, bonds or FRNs is solid so I have abandoned them.(ok i gots some FRNs). The vehicle must be examined not only its cargo. Nowadays the vehicle is broke, and the cargo looted but people still invest in it because its a proven model. The mix you expressed above may be perfect for you. I could critique it or advocate it. My choices dont matter and are not particularily unique falling squarely in the beans bullets and bullion catagory. I sleep well at night.
WTF.
"Everday you see old humans getting prepared for death that dont know what to do with their money. They spent their whole lives aqquiring it , like trained monkeys, and in the end it has no value to them, and in fact is a burden"
Pass me some of that burden. I'll need it in my old age to pay for food & lodging.
I can only imagine being so lucky in old age having EXCESS money.
I'm not counting on that. I see the opposite all too frequently NOW.
I am sympathetic to the fact that there is less opportunity now than in times past. Your post defines one of the ways we view money, as a means to survival. Money is power to allocate resources and our first instinct is to provide survival for ourselves and loved ones. Those close to death who are "lucky" enough to have excess money have to choose how to allocate those resources the money represents. Yes plenty of open bird mouths like you or me are eager to have control of those resources. Excess money can be a burden at that point requiring effort to determine how the resources it controls will be consumed not for survival in the individuals life but after it. Most have had to work hard to earn their money. The money represents hours of labor that could have been used in other activities and excess that will be distributed can lead to regret. The individual may have hurt his body or adopted poor health habits while earning his life savings and this can lead to regret. I used to go fishing with a friend and his uncle once in a while. His uncle had spent the last part of his life working 60 hours a week in a saw mill. One of our fishing days he looked at me and said "if I had one thing to do over I would have worked a little less". He died a couple months later. What he said always stayed with me. That is only one example but I really dont think that most people understand how money affects them, motivates them, changes them. You scramble to get money, after you scramble to get it you scramble to keep it. Who owns who? In my opinion most people get a perspective of their life that is more truthful as death approaches. I think it is valuable to try to incorporate that truth in your life prior to your last days. Money is not wealth.
while your point is valid in general, on me specifically it isn't. I take the blame for my specific style of writing but what I really meant was that most of us WON'T be so burdened, so acting like this is typical is not rational. It's not typical now & it sure as shit won't be 20 years from now.
Granny will be eating alpo, that's for certain.
While I may never have the chance I might suggest if anyone's worth an inheritance, give it before you're too old and sick, then at the end either a) have enough just for yourself and otherwise broke or b) tell everyone else you're broke, act broke, even if you're not. That should keep the vultures off. And make sure to learn the art of Granpa Simpson's crazy stories that don't entirely precisely end.
" Its pretty hard to exchange gold for the food and energy you need to live if it has been outlawed"
There is no shortage of drugs, cigarettes and even licquor on the black market these days so it won't be hard to exchange for anything your heart desires. Let us not forget that woman are especially enamored by it so men will naturally go to any length to procure it. For the love of a woman Paris brought destruction down upon Troy, times are no different now and gold will be exchanged regardless of any laws.
I disagree with your evaluation of demand. The primary demand for gold in the USA is intended for exchange back into FRNs. If it is not readily changable back to FRNs the demand for gold will be crushed. At what rate will these black market transactions occur? There will be no spot if outlawed. The electric company will not trade. Walmart will not trade. Dealing on the black market requires a certain savy and set of skills that not all possess and I would consider myself in that group. Often black market individuals will seize a target of opportunity. Now if one was already operating in other black markets specifically international ones im sure arrangments could be worked out. Im curious are there any accounts of black market gold trading the last time it was illegal not that long ago?
"We Plains tribes want a real Peace Treaty from the Great Father in Washington.
Too many white men come here to our sacred lands for the yellow metal that drives men crazy."
Human nature does not change.
Got Gold?
At the moment gold is an asset that your finacial planner is obligated to inform you that 5% of your portfolio could be exposed to it. (But only as a hedge...however even though it's a hedge he can only sell you paper contracts of it and will only do so if you request him to.)
If and when China makes the Yuan convertible to gold then it will become money again overnight. In that case gold will be money again like it has so many times in man's history. Almost all human beings love and worship money and can never get enough of it. Even the ones who don't worship money still need and respect it. How many billionaires want to stop accumulating dollars in their bank accounts? I would have to guess gold will again be the premier money in the future. It just seems logical to me.
Someone took cursed gold from a mummy, buried it in an Oklahoma field, and this was the mummy's curse striking.
Therefore gold is the devil.
Sell it all.
There. Done. Happy?
Intersting things that I find... Nice...
http://www.boatingaccidentnews.com/edukashional-video-2/
WTF
that's a real URL
+1000000 for Winning(tm)
Tis a slow process. Keep going. We will win in the end even though it does not seem like it right now.
Fed keeps printing money and lower gold price, people buy discounted gold and send money back to Fed. If Fed keeps doing that for few years, it will hold all the paper it sent out while lost all its phys golds. So next logic step (if ben is smart enough) is ban all gold sale in US (for financial security reason) but not ban holding it, which will force US citizens buy gold from oversea. Since can't sell gold in US for profit, no many US people will buy useless gold. Yes, US$ will flood gold producing countries, take away their treasury and currency independence but who cares, at the same time it will lower inflation pressure at home, gold price will not rise too much in this case and some golds will come back home.
So becuase your peak oil thesis was bascially run over by a bus with Shale oil.
You now resort to Peak Gold
Have you no shame......
Well it depends who your are talking to.
According to Marilyn's best friend she married Joe de Mag 'cos he was good in bed!
Home runs galore!
Peak tits and all, she was one hellva gal!
Gold is a trade
nothing more
Purchasing power???
It went from 1900 to 1320 in a year? You got your head handed to you.
Silver?
49 to 21 in the same period.
You had your balls handed to you.
How is the door stop really working for ya....
Jesus throw in the towel will ya. You were taken by pumpers.
The snovelling is getting pathetic
Silver was at 49 three years ago, and btw I've had nothing handed to me except a chance to purchase more at a bargain. My average cost per ounce is well below 22 and the dorrar has been watered down some 20% in that same period.
and it went from 1300 to 1900 just about as quick.
This is merely volatility.
'Merely' volatility? In finance, volatility is risk.
Given a choice between two assets with the same return, you choose the less volatile one.
Since 1975, gold has delivered a lower return than stocks, but with higher volatility.
A case can be made for gold as a trade, or as an uncorrelated portfolio diversifier.
But as a buy-and-hold proposition, an asset offering modest return with high volatility just plain sucks.
the volatility risk in gold is less than that of stocks, priced in fiat. The true risk including confiscation, immediate use and tangible value is much much higher with stocks.
The stock market has had horrible returns because volatility has been crashing people out of their pensions multiple times - then they die broke.
Gold is a buy and hold because soon the market AND the currency will crash.
Good point, past is past.
a trade is a trade ,,, what about someone who just bought a shit loads of silver miners with silver at 22 ?
Canada is now making a $100 legal tender silver coin. You can buy one for $100 paper bill... It is 100% garunteed by the governnment and convertible into cash at any Canadian Bank...and if that's not good enough for you the Royal Mint promises to refund your currency if you are not completely satisfied with their new 1 oz super coin....or you could buy 4 regular maple leafs for the same money that have a $5 legal tender. Unfortunately they are only garunteed for their purity and weight...however you do have a greater chance to double your money in 5 or so years. No word yet if Canada is going to mint a $5,000 gold super coin for the public. This is what I think is going to be the future of money in the bankrupt West. Silver and gold as a medium to issue money. Who'd of thunk it?
http://www.mint.ca/store/coin/100-for-100-fine-silver-coin-bison-2013-prod1680033#.UatDaH4o6Uk
WHOA. Isn't this HUGE? This $100 silver coin weighs only 1.157 troy ounces! How does this not affect the silver market as a whole? Thanks for the link!
How is this any different to currency manipulation??? So the Canadian government will sell you a 1 once silver coin for $100 with an intrinsic value of about $25. I once heard that you know when the bubble has popped when the banks start trading in PM's OTC.
I think there is more emotion and stubbornness surrounding gold than common sense.
Gold is currently falling in dollars demonstrating (1) there is no pent up inflation and (2) it is capital fleeing into the dollar (bonds & stocks). BEFORE you will see a bull market resume in gold, sorry – you have to wait for the currency to catch up. If you are brainwashed and constantly presume the dollar will collapse any moment because the Fed increased the money supply, I suggest you are married to the mental conditioning you have been subjected to, have a closed mind, and will lose your shirt insisting you are right when the markets are proving you wrong. Gold declined in a basket of currencies, which is why it fell into 1999. This is about surviving – not punishing the world for its sins. Don’t worry. A rising dollar will cause far more damage than rising gold. Gold is a ting, tiny, fraction of the world economy. The capital flows are in trillions of dollars. Even 500,000 contracts at $1500 would be $75 billion. It is way too small of a market to harbor all the refugee cash in the world. That is bond and stocks – the only markets capable of absorbing trillions of dollars.
http://armstrongeconomics.com/2013/06/01/a-normal-market/That is bond and stocks – the only markets capable of absorbing and decimating trillions of dollars.
There, fixed it for you.
Even if you're right your challenge is to convince 3 billion people in Asia.
They will have to clean their own mess just like so many times in the past.
How many trillion dollars in QE had we just pissed through in 1999, the date you are comparing today to?
Martin Armstrong is an interesting guy. A guy made crazy by the craziness surrounding him, and then develops a paranoid persecution complex because of it.
You have to keep your head. Otherwise you will end up like Armstrong and the Unabomber, and the bankers will forget about you.
There's only one way for the bankers to take you seriously...if you buy physical precious metal at any price and keep it outside of their system.