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Gold Bug Bashing, 1976 Edition
Submitted by Peter Schiff of Euro Pacific Capital,
The Golden Cycle
The New York Times had the definitive take on the vicious sell off in gold. To summarize one of their articles:
Two years ago gold bugs ran wild as the price of gold rose nearly six times. But since cresting two years ago it has steadily declined, almost by half, putting the gold bugs in flight. The most recent advisory from a leading Wall Street firm suggests that the price will continue to drift downward, and may ultimately settle 40% below current levels.
The rout says a lot about consumer confidence in the worldwide recovery. The sharply reduced rates of inflation combined with resurgence of other, more economically productive investments, such as stocks, real estate, and bank savings have combined to eliminate gold's allure.
Although the American economy has reduced its rapid rate of recovery, it is still on a firm expansionary course. The fear that dominated two years ago has largely vanished, replaced by a recovery that has turned the gold speculators' dreams into a nightmare.
This analysis provides a good representation of the current conventional wisdom. The only twist here is that the article from which this summary is derived appeared in the August 29, 1976 edition of The New York Times. At that time gold was preparing to embark on an historic rally that would push it up more than 700% a little over three years later. Is it possible that the history is about to repeat itself?
At the time The Times article was written gold had fallen to $103 per ounce, a decline of nearly 50% from the roughly $200 it had sold for in the closing days of 1974. The $200 price had capped a furious three-year rally that began in August of 1971 when President Nixon "temporarily" closed the gold window and allowed gold to float freely. Prior to that decision gold had been fixed at $35 per ounce for nearly two generations. That initial three year 450% rally had validated the forecasts of the "gold bugs" who had predicted a rapid rise in gold prices should the dollar's link to gold be severed. The accuracy of these formerly marginalized analysts proved to be a bitter pill for the mainstream voices in Washington and Wall Street who, for reasons of power, politics and profit, were anxious to confine the "barbarous relic" to the dustbin of history. Incredulous as it may seem now, with gold still priced at $35 per ounce, official forecasts of both the Secretary of the Treasury and the Chairman of the Federal Reserve were that demonetizing gold would undermine its value, and that its price would actually fall as a result.
Of course government experts could not have been more wrong. Once uncoupled from the dollar, gold's initial ascent in the early 1970's was fueled by the highest inflation in generations and the deteriorating health of the U.S. economy that had been ravaged by the "guns and butter" policies of the 1960's. But the American economy stabilized during the mid-years of the 1970's and both inflation and unemployment fell. When gold reversed course in 1975 the voices of traditional power elite could not contain their glee. When the gold price approached $100 per ounce, a nearly 50% decline, the obituaries came fast and furious. Everyone assumed that the gold mania would never return.
Although the writer of The Times piece did not yet know it, the bottom for gold had been established four days before his article was published. Few realized at the time that the real economic pain of the 1970's had (to paraphrase The Carpenters 1970's hit) "Only Just Begun". When inflation and recession came back with a vengeance in the late 1970's, gold took off (to quote another 1970's gem), like a skyrocket in flight. By January 1980, gold topped out at $850 an ounce. The second leg of the rally proved to be bigger than the first.
The parallel between the 1970s and the current period are even more striking when you look closely at the numbers. For example, from 1971 to 1974 gold prices rose by 458% from $35 to $195.25, which was then followed by a two-year correction of nearly 50%. This reduced total gains to just under 200%. The current bull market that began back in 2000 took a bit longer to evolve, but the percentage gains are very similar. (We should allow for a more compressed time frame in the 1970s because of the sudden untethering of gold after decades of restraint.) From its 1999 low to its 2011 peak, gold rose by about 650% from $253 to $1895 per ounce, followed by a two year correction of approximately 37%, down to around $1190 per ounce. The pullback has reduced the total rally to about 370%. The mainstream is saying now, as they did then, that the pullback has invalidated fears that rising U. S. budget deficits, overly accommodative monetary policy, and a weakening economy will combine to bring down the dollar and ignite inflation. But 1976 was not the end of the game. In all likelihood, 2013 will not be either.
The biggest difference between then and now is that until 1975 ordinary Americans were barred by law from buying and owning gold. About the only route available to participate in the earlier stage of the precious metal rally was by hording silver dimes, quarters and half dollars minted prior to 1965. My father indulged in this process himself by sifting through his change, the cash registers of any merchant who would allow him (exchanging new non-silver coins and bills for silver), and by sifting out silver coins from rolls he bought from banks. It was a time-consuming process, and most of his friends and family members thought he was crazy. After all, he had $10,000 worth of pocket change earning no interest.But the $10,000 face value worth of those coins he collected had a melt value of over $350,000 when silver hit its peak.
By the mid 1970's none of the problems that initially led to the recession in the early years of the decade had been solved. Contrary to the claims of the "experts" things got much worse in the years ahead. It took the much deeper recession of the late 1970's and early 1980's, which at the time was the worst economic down-turn since the great Depression, to finally purge the economy of all the excesses. The lower marginal tax rates and cuts in regulation implemented by President Reagan and tight money under Volcker helped get the economy back on track and create investment opportunities that drew money away from gold. As a result gold fell hard during the early 1980's. But even after the declines, gold maintained levels for the next 20 years that were three to four times as high as the 1976 lows.
Although the economy improved in the 1980's, the cure was not complete. Government spending, budget and trade deficits continued to take a heavy toll. The U.S. was transformed from the world's largest creditor to its largest debtor. When the time came to face the music in 2001, the Fed kept the party going by opening the monetary spigots. Then when decades of monetary excess finally came to a head in 2008, the Fed open up its monetary spigots even wider, flooding the economy with even more cheap money.
Unfortunately just like 1976, a true economic recovery is not just around the corner. More likely we are in the eye of an economic storm that will blow much harder than the stagflation winds of the Jimmy Carter years. And once again the establishment is using the decline it the price of gold to validate its misguided policies and discredit its critics. But none of the problems that led me and other modern day gold bugs to buy gold ten years ago have been solved. In fact, monetary and fiscal policies have actually made them much worse. The sad truth is that as bad as things were back in 1976, they are much worse now. Whether as a nation we will be able to rise to the occasion, and actually finish the job that Ronald Reagan and Paul Volcker started remains to be seen. But I am confident that the price of gold will rise much higher, and that its final ascent will be that much more spectacular the longer we continue on our current policy path. Don't believe the mainstream. Just as before, they will likely be wrong again.
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This is what giant bottoms are made from.
But EVERYONE is saying it is going to sub 1000 first and that is the time to buy........hehehhehe
the fundamentals get better every day for gold. Even at currenty prices it has still done far better than global stock markets the last 10 years... we haven't even see the gold rush yet. http://tinyurl.com/pp588mj
For all the whiners and gloaters alike: From FOFOA, a retrospective about what it was like during a long forgotten "crash".
Another day, in another time, gold had plunged to a 20-year low, plumbing the depths of $250 an ounce at the same time as the Dow was hitting a new all-time high of 11,300, even as astute followers, just like some that I have today, were then following Another and FOA. Some threw in the towel in disgust, some turned on the messenger, and everywhere you could cut the tension in the air with a knife.
Talk about backin' up the truck!
Its best to place your Au in the Gold Safe and just forget about it, it's time will come soon enough...
the schiff is hitting the fan
The following is a long pipe but worth the read.
In a previous article I made the case that China does not hold the position of power over the U.S. economy that many have come to believe. A portion of my argument was focused on disproving baseless claims that China is selling off its U.S. Treasury holdings. As I discussed, China has actually been stockpiling U.S. Treasury securities over the past several years.
This fear-mongering over the fate of the U.S. dollar and dollar-denominated assets has been orchestrated by a barrage of charlatans. As a part of their “doomsday” scenario, they claim that hyperinflation in the U.S. is imminent. Truth be told, as long as the petrodollar remains intact, hyperinflation in the U.S. is not possible. This is a statement of fact. Anyone who claims otherwise has absolutely no idea what they are talking about.
Rather than China, Saudi Arabia ultimately fuels the U.S. economy. Let’s take a look how the Saudi’s have been positioned as the venerable engine of the U.S. economy. In 1971, the final phase of the gold standard was eliminated after Washington refused to honor France’s demand for payment in gold in exchange for dollars.
Prior to that, the U.S. dollar was pegged to the price of gold. Moreover, virtually all other currencies were pegged to the U.S. dollar. Thus, once the U.S. severed the gold standard a global fiat currency system was established, as no currency was backed by gold.
Shortly thereafter in a deal brokered by Henry Kissinger under the Nixon administration, the Saudis agreed to settle all crude oil sales with U.S. dollars. Due to the clout held by the Saudis, the rest of OPEC followed suit. This relationship between the dollar and oil is often referred to as the petrodollar.
The petrodollar serves as America’s most valuable economic lever. It empowers the U.S. economy by means of extortion because one must have dollars in order to buy and sell commodities on the major international exchanges, from oil, gas, gold and steel, to apples, oranges, coffee and cattle. This is the main reason why the U.S. dollar serves as the world’s reserve currency.
Based on its relationship with oil and other commodities, one could argue that the dollar is not exactly a fiat currency since it is backed by the demand for raw materials. Raw materials are in limited quantity. They are also in high demand because they are required for economic growth. They are required for basic sustenance.
Although the petrodollar remains the primary centerpiece controlling global macroeconomics and geopolitical strategy, it’s never mentioned in the U.S. media. In fact, you will be blacklisted if you publicly discuss the significance of the petrodollar. This is precisely what happened to me.
American consumers serve as the superficial driving force of the U.S. economy, but there are a few significant enablers worthy of mention. Certainly, China enhances the economic power of American consumers by providing inexpensive imports. As I discussed in a previous article, China is able to gain numerous competitive advantages over domestic manufacturers by exploiting differences in trade policy with the United States. But this is not the primary force that fuels American consumers.
Inherently one might assume that a strong consumer would be the by-product of higher living standards or higher personal incomes. Enigmatically, the powerful consumer demand seen in the U.S. has not come from a commensurate increase in living standards or personal incomes. On the contrary, as domestic demand has soared over the past three decades, U.S. living standards have trended downward. So what has been the source of this demand?
The ultimate source of fuel for the American consumer comes from the Federal Reserve Bank in the form of credit. Instead of spending more on consumer items as incomes rise, most Americans use credit in order to improve their living standards. As you can imagine, this is not a sustainable path to prosperity.
The majority of the credit created by the Federal Reserve comes by way of fractional reserve lending. Some liken this mechanism to creating money out of thin air. But this money is backed by the petrodollar trade. That is, the demand for dollars increases every time oil is bought.
Thus, when the Federal Reserve wants to print excessive amounts of dollars, the global demand created for dollars through the purchase of oil and other commodities will diminish the inflationary effect that would have been otherwise created within the United States.
While other nations use fractional reserve lending, they face the possibility of hyperinflation at some point because their currency is backed by nothing other than the underlying economy and strength of the government.
Because the United States has been transformed into a consumption-based economy, it must create asset bubbles during periods of weak domestic demand. The Federal Reserve’s ability to create these asset bubbles is enhanced by the petrodollar. Thus, the petrodollar enables the Federal Reserve to form asset bubbles, while exporting inflation throughout the globe.
As discussed in America’s Financial Apocalypse, petrodollar-based inflation is the manner by which the United States taxes the globe. Without the petrodollar the U.S. economy would face very dire consequences. With it, the U.S. can print its way out of messes and force the rest of the world to subsidize its mistakes and finance its asset bubbles via exporting inflation.
Now that you understand how the dollar is linked to oil and other commodities, hopefully you can appreciate that hyperinflation in the U.S. is not possible as long as the petrodollar exists. For instance, hyperinflation would render the dollar as worthless. As a result, no one on earth would be able to afford oil or other commodities.
In a previous article where I discussed China’s role in the U.S. economy, I pointed out that China remains as the largest foreign holder of U.S. Treasury securities because this keeps U.S. interest rates low. And low interest rates means consumers can buy more imports from China.
Unlike China’s export-based economy which depends on low interest rates in the U.S., oil-rich nations could care less about keeping rates low in the U.S. because inflation (which increases when rates are low) causes the price of oil to rise. Thus, Middle Eastern nations spend much more of their petrodollar surplus buying up hard assets such as hotels, restaurants, resorts and other businesses as opposed to investing in U.S. Treasury securities. But of course they do own a decent amount of U.S. Treasuries due to their trade surplus with the United States, and as a symbol of loyalty to the petrodollar arrangement.
How did the Saudis benefit from agreeing to accept only dollar payments for oil?
In return for establishing the petrodollar, the Saudi Royal Family was granted unconditional military support by the U.S. government against all uprisings, both foreign and domestic. As well, they were guaranteed protection against Israel. Finally, the Saudis were assured they could govern their people in any way they chose without the threat of economic sanctions from the United States. This is specifically why Saudi Arabia has not faced sanctions despite its long history of religious and human rights violations.
The one flaw in the petrodollar trade is that despite the fact that a good deal of inflation is exported out of the U.S., eventually some of it will return like a boomerang in a variety of ways. But as far as Washington is concerned, the benefits outweigh the risks because excessive inflation can serve as a means by which to more easily pay off its mounting federal debt. In this way, Washington can have its cake and eat it too because petrodollar economics guarantees that the U.S. will never face a hyperinflation scenario. The petrodollar always creates a win-win situation for the United States. Meanwhile, other nations get shafted.
Despite the obvious importance of the petrodollar, countless individuals continue to warn of hyperinflation in the U.S. Their motive is to get their audience to buy gold so as to raise the price so they can sell it before it collapses. Others don’t care where the price of gold goes so long as they convince people to buy it from them as they slice off 3 or 4 percent of the total in fees.
If you want know whether it’s a good time to buy a house, the last person you should ask is a real estate agent. The same applies to gold. Gold dealers are the absolute worst source of information and insight on gold because everything is spun to manipulate their already biased and largely unsophisticated audience. Even if hyperinflation were to hit the U.S., gold isn’t going to help you one bit. Your best investment would be food, water, guns and bullets.
Iran understands the true significance of the petrodollar, which is why it has been selling its oil for other currencies. Iran’s attempt to disrupt or weaken the petrodollar arrangement serves as the primary reason why Washington initiated economic sanctions against this peaceful nation.
The illegal sanctions imposed on Iran by the Zionist-controlled international community have forced Iran to barter its crude oil for agricultural goods. Iraq, once under the leadership of Saddam Hussein began selling its oil for euros in 2000. Soon after, Washington created lies about WMDs in order to justify invading Iraq. I think you get the point.
Although other nations such as India, China and Germany are now accepting currencies other than the dollar in exchange for their oil, this should not be interpreted as a serious threat to the petrodollar. OPEC dictates the fate of the petrodollar, and Saudi Arabia controls OPEC. However, unified OPEC opposition to the petrodollar could pose as a very challenging dilemma. This has obvious implications for Iran and other OPEC members that are exploring alternative forms of payment other than the dollar.
Similar to other nations considered as “hostile” and “dangerous” by Washington and other Zionist-run establishments throughout the globe, I would imagine that Iran has no intention of allowing itself to go along with globalization mandates. My guess is that Iran’s leaders understand that the real objective of this criminal conspiracy is to abolish sovereignty and transform all complicit nations into slaves of the international bankers, as has already happened to much of the globe.
Iran, North Korea and Venezuela refuse to take part in the globalization agenda engineered by the international bankers. For this, they have been put on a “hit list” by the terrorists in Washington and their foreign associates, as instructed by the Banking Cartel. This is the reality you never hear about. But it is a critical point worth revisiting whenever you come across negative press about these nations.
It is indeed ironic that the manipulation of the global economic system by a Zionist crime syndicate requires the indirect participation of an Islamic nation. This relationship should tell you where the Saudi Royal Family stands when it comes to America’s Zionist agendas.
Muslims of the world, especially those residing in the Middle East should take note of the relevance of the petrodollar. Not only does it function as the economic engine of the United States and the Jewish Banking Cartel, it also serves as the enabler of wars against Islamic nations. Thus, as several key nations continue to explore non-dollar payments for oil transactions, Islamic leaders have a far greater bargaining tool to be used to combat Zionist terrorism and international extortion at the hands of the Banking Cartel.
MS/JR
http://www.presstv.com/detail/...
WARNING: The National Security Agency is likely recording and storing this communication as part of its unlawful spying programs on all Americans … and people worldwide. The people who created the NSA spying program say that this communication – and any responses – can and will be used against the American people at any time in the future should folks in government decide to go after us for political reasons. And private information in digital communications may be given to big companies by the government.
The lower marginal tax rates and cuts in regulation implemented by President Reagan and tight money under Volcker helped get the economy back on track and create investment opportunities that drew money away from gold
Now that's some funny bullshit.
http://newsjunkiepost.com/wp-content/uploads/2011/02/debt_percent_gdp-40...
http://i17.photobucket.com/albums/b84/bonddad/Big%20Econ%20Numbers/fedde...
Ignore the red team / blue team nonsense and this is a good laugh:
http://upload.wikimedia.org/wikipedia/commons/2/2b/Total_US_Federal_Debt...
He didn't say Reagan reduced spending enough, try reading better next time. Schiff is not exactly a cheerleader for the red team.
It is truly amazing how many statist dumb fucks still worship Ronnie Raygun or President Clit-one.
then:
Fuck you NSA
Whalleyworld
good stuff
No... it's not. There is a light sugar dusting of generally known information at first, then a move to syrupy deflection about touting gold for selfish reasons, and finally a topping cherry of sensationalist conspiracy. All that to make an underlying turd look better.
"as long as the petrodollar exists"
normalcy bias.
I have seen summer calves freak out when autumn rains hit. They have never seen cold drops of water from the sky in their lifetime.
normalcy bias. just because you havent seen it yet doesnt mean it cant happen.
@ Chupacabra 322:
Interesting reading, thanks for the post! +1
Some questions do come to mind:
1. If "Peak Oil" is a reality, as so many US politicians like to claim, where does THAT put the petrodollar? (When the paper supply is increasing, and the underlying asset is diminishing?)
2. At what point do countries whose economies have been trashed by our policy of exporting inflation say "enough is enough"?
3. What do the nations in a position to say "enough is enough" spend their time accumulating?
Of course, I realize that you didn't author the post, and ultimately, we're all speculating, however:
JP Morgan himself said that "Gold is Money".
People have used Gold as money, for a very long time.
The BIS is warning banks about the faulty logic of their current policies.
The Fed talk of tapering, is BS in the extreme; they are 'damned if they do, and damned if they don't'. QE will continue, until it doesn't.
At a certain point, it is inevitable that nations using the petrodollar will look for other means, especially as these dollars lose value.
The author's assertions that: "Most Gold market analysis is based on faulty logic", is, in and of itself illogical, as is his assertion that "Under a hyperinflationary event, no one will be able to afford oil, or other commodities".
To address the first claim: Does any educated mind consider HISTORY to be an unimportant factor in analysis of any kind?
To address the second: What is required to determine price? 2 parties reaching an agreement. What constitutes that value, can really be anything. Gold is the time-honored medium of exchange, but seashells, giant stone disks, sexual favors, meals, furs, weapons (etc.) have all been used in exchange, for labor, capital, or commodities.
Hyperinflations do lead to supply-chain breakdowns, but to assume that the entire world comes to a grinding halt is spurious. Even in Zimbabwe, people find ways to get by.
The article is interesting, and he's right to shed light on the importance of the petrodollar in the world. However, when making claims such as the 2 I offered rebuttal to, the author shows himself to be "talking out of both sides of his mouth", despite all of the good points he does make.
JMO.
The fundamentals for gold AND silver have been amazingly good for a while now. Yet the price keeps going down, yeah? What's up?
>> What's up?
There are none so blind as those who will not see.
Like, that's almost Biblical, dude!
'Is it possible that the history is about to repeat itself?'
.
Does the Pope shit in the woods?...is a bear catholic?
.
Nothing New Under the Sun,
History IS repeating itself.
~King Solomon c.931 B.C.
(makes one wonder what already happened 1,000s of years before this statement)
fear of some type of major military move. there is no inflation...if Egypt really is causii bellum for something (and i'm not saying we're gonna go in to restore order or anything ridiculous like that...although this sure isn't the Cairo of first term Obama) then this will put STRONG selling pressure on the precious. not least reason being "you can't buy it." in other words the gold window will be closed again. you still might be able to get coins...but of course what makes coins so valuable are the times where none of them can be had anymore. that shouldn't be a problem in the West because there is so much copper issuing out "a copper dollar" to pay for the whole "chaos effort" will not be a problem.
"this will put STRONG selling pressure on the precious. not least reason being "you can't buy it.""
You may want to go back and study econ 101, specifically the part where they talk about supply and demand.
What is changing the world when the world we live in starts where both our feet are planted? I enjoy statistics and as all information, it must be read with discernment and wisdom. The microeconomic understanding begins not with reading published statistics and appropriately written articles, rather they begin with communicating with your neighbor and building community. Freedom is indeed liberation from the ego, so to maintain our Unalienable rights under God, we must STRIVE to live righteously.
Regarding gold, paper will always be paper and gold will always be gold. Use the monies wisely and stop feeding the beast.
global economy is a huge matrix with uncountable variables. and this matrix has been tilted by brute force of the central banks for over 12 years now. you can't expect the dynamics to work out neatly according to expectations. there will be violent swings, up or down. but the long run is foreseeable.
if you remember there was a swing of the gold price back in 2006, it was remarkable but not eye-popping. then in 2008 came the second swing which made weak hands tremble in fear. and this year we have the effing roller coaster.
gold always follows the fundamentals, but not necessarily linearly. we are at rough seas and such immense drops are to be expected in today's screwed global monetary and fiscal situation. do not panic.
WE haven't seen a gold rush yet......i wouldn't assume that is the case elsewhere......like india, russia, china, vietnam, hong kong.....
there the premiums for the real stuff are escalating exponentially......
still, the US is the center of the universe, right? and jamie is the master......
i KNOW...SILVER 8-12-15$... BUT READ WHAT THIS WAS SAYING ALL THE PAST 2 WEEKS...
http://zysites.com/silververitas/
BOTTOM MAY VERY WELL BE GOLD 1180 (60% RET.) AND SILVER 18.50$...
all i know is, when the gang comes in and takes gold to 1180, and silver to 18.50 on friday....i will be waiting to trade the last of my USD for whatever bullion i can get.
after that, fuck 'em. i'm taking the summer off.
sorry jamie, when you run the game again, I'm buying, not selling.
Those numbers don't match.
Silver to USD 18.50/OZ goes with 1221.647 usd/oz gold.
http://flic.kr/p/f17z1s
I am completely amazed on just how INSANE the quality of ANALYSIS is today. The funny thing is, a lot of people actually listen to it and believe it. There are so many reasons why GOLD is a much better STORE OF WEALTH today than it was in the 1980's.
For one, the world had another 3 decades of GLOBAL OIL PRODUCTION INCREASES. However, that has come to an end and just wait until the PHAT LADY SINGS on that one in the next couple of years.
Secondly... ore grades have declined almost to DUST today. I would guess it takes 5-10 times the amount of energy to remove gold today than it did back in the 1980's. This makes gold a much more COSTLY STORE OF WEALTH to produce. And if you think costs have nothing to do with price than just wait until it gets really expensive to mine gold.
Lastly, I recommend everyone taking a look at this VIDEO... it is really a MUST SEE. I have been research and investing in the precious metals for over a decade and I even learned some very interesting information from the video. We all need to call FEDERAL RESERVE NOTES as currency and NOT MONEY... that is one thing I am guilty of.
MUST WATCH: Gold & Silver Hidden Secrects of Moneyhttp://srsroccoreport.com/must-watch-gold-silver-hidden-secrects-of-money/must-watch-gold-silver-hidden-secrects-of-money/
I thought giant bottoms were made from the rarest of elements: Kardashium.
Talk about inflation....
Fat bottom girls make the rockin world go round.
Freddie M would love this.
Freddie M would love this.
God I wish I could get my hands on some Kardashium right now!
The element Kardashium is highly toxic to neural cells. Best to not get close or view it...
Shwing low, sweeeeeet Kardashium, comin' 4 2 carry me home....
We are seriously close but the potential for a drop to $950ish is there. The funny thing is that for this current cycle, gold has been leading equities by about 3 months. Care to remember what happened in 2008-2009?
Snicker.
Charts which make GoldBugs Smile and Stock Hucksters Cry
Same thing that happened in 2000... hmmm...
We've already done the 2008-2009 thing to bottom out.
http://flic.kr/p/f17z1s
950 gold? That's nonsense. 300 under the cost of production for mines. Not happening. 950 gold mapping to a silver price: 13.58 USD (13.06 to 14.12). Pretty close to HALF of production cost for mines. No dice. You can't print a mine into operation & the BernanQE isn't funding wage & fuel costs to mines, he'll let them shutter. That will spike silver prices up, gold too. They do move in tandem as the scatterplot shows.
Fat bottoms: http://www.youtube.com/watch?v=VMnjF1O4eH0
fat bottomed girls make the rockin' world go 'round
Must have been Stolper's first job.
What was that phrase that Yogi Berra said?
Baseball is 50 percent mental and 50% physical, but 99% of it is in your head.
It ain't over til it's over....then it's over.....
It ain't over until it's deja vu all over again, at which point 90% of it is half mental...
It gets late early.
Dem guys is stayin' away in droves....
I used to be schizophrenic, but we are ok now
You know the last one actually makes sense: 10% isn't mental at all but the 90% is half mental.
Pool has a commenntator like Yogi Berra named Jim Wyche....he's always saying stuff like 'Pool is mostly all about physics, but it's just in your head'.
Predicting is hard, especially about the future.
'He hits from both sides of the plate....he's amphibious.'
When you come to the fork in the road,, take it..
"A nickel isn't worth a dime today."
but
"I didn't really say everything I said."
In theory there is no difference between theory and practice. In practice there is.
"Nobody goes there anymore, it's too crowded."
The towels were so thick I could hardly close my suitcase?
MOVE ALONG GO BUY APPL AND NFLX GOLD IS BAD SHALOM SAID SO I LOVE LAMP
I LOVE LAMP
Just make it as simple as possible! Where are the parallels?
In 1972, the US had its peak oil.
Today, the world has its peak oil.
Thats all about. Nothing more and nothing less.
Get your physical bullion NOW!
Now's the time! To buy some GOALDS!!
shoulda bought last week dog...
The Bernak will just Volker the 10yr up to 15% and crush gold again.
SARC
oh yeah that's going to happen....
does this mean you think his ego is so big that we all have to die when he leaves?
if that's your reasoning....well, you might be right.
You are actually making me re think things. It might be.
The 10yr at 15% is not sustainable in terms of debt repayment for the US. No way he could do this even if he wanted to......not much room left for the B to maneouvre.....hard to mess with gold when you are struggling to keep long term interest rates down and save the housing market...........
....IMO , the debt isn't sustainable at any non-negative number, prior to WWIII, of course.
The chart says it is on its way to a $1,000 support level, but TA is hardly the most reliable science in the world. Personally, I would just dollar average for a while.
i agree $1000 will be tested. and then overshot to the downside. i have a target of $800 for the shiny relic. almost cruel how ZH gives all the gold bugs hope...
You are an example of the typical U. S. -centric view. The rest of the world might have a different (and more enlightened) view.
If there's any doubt as to the importance of gold on the Eurosystem's balance sheet, last quarter gold constituted more than 63% of the Eurosystem's reserves. That means that dollars, yen and SDRs combined made up less than 37% of the reserves.
I wonder if they are counting the gold the US is holding for them..., cause that could really bite.
Excellent point. But that same gold is claimed by many, so what's the diff?
You didn't read the article, did you - or are you just trying to do the 2013 equivalent of what the NYT did in '76 when they called for 40% more downside at the bottom of the market?
Last time I was trading anything, you made money by buying low and selling high. If anyone wants, they can try the other way, but I doubt it will work for them. Personally, I prefer platinum to gold anyway. The SA situation is always fluid and the metal has some industrial demands that are totally inelastic. But that is what makes markets. Note that I said "dollar average" not "don't buy here".
Who says gold is a "trade"? Your paper gold is one thing, but real gold is out of your league. You'll get your head handed to you until you understand what gold actually is.
your fingertips to god's ear, please.
at that point, i will re-mortgage my house and buy every single ounce i can get my hands on....if there is any to be had.
>> almost cruel how ZH gives all the gold bugs hope...
How much have you made trading gold with your apparently superior insight?
Gold is for stacking, not trading.
Options are for trading.
"i have a target of $800 for the shiny relic."
And I'm presently sitting on the toilet taking a shit. Who cares?
Who gives a shit? You do, apparently...........
Or maybe not. He said "taking"...not "giving."
My wife has finally cracked and accepted my gold buying. I just have to buy her some useless, sold 4 months later for pennies on the dollar baby shite. This is a good compromise.
You're getting off cheap, brah.
Schiff's dad then proceeded to store all of those rolls of silver coins up his nose where all greedy cheesepopes stash their PMs.
The dude has been sitting in prison forever because of his belief that income tax collection is illegal.
You are a fan of simon black, a man with a ficticious name who recommends you run away as fast as you can... and not this guy?
I know what he did with going to prison and admire him for it (much like Ann Barnhardt is now doing)- but I'd rather hang out with a guy that skis in the Andes and eats Chilean sea bass off of the asses of Euro-hotties than someone who spends an inordinate amount of time trying to score some silver coins- life is short.
So your saying you like bankers then?
Otto said he admires a guy who knows how to live his life.
Irwin Shiff is in prison because he believes the federal tax is bogus.
So be it. Has he changed anything beyond his address..?? Not really.
Throwing yourself in front of the bus as a martyr is not very smart.
He traded his freedom for his beliefs.
He's what we would call 'terroristical' in his views on taxation, but what has he accomplished..??
Yawn....
Obviously he hoped to accomplish more and wake more people up. Didn't work too well but at least he's a good and honest man. Maybe some day people will understand what he did and honor him for it. I doubt anyone in the distant future will honor the criminals currently in government and in the banking cartel.
I'm not religious, but sometimes I almost hope there is a heaven and hell and I know who belongs where.
for what it's worth Wesley Snipes tried it too.
Famous and all.
Still got the slammer.
IRS is still illegal.
Taxes are still VOLUNTARY as admitted by the IRS under oath:
http://youtu.be/I_aQbr6d_Js
Patagonian toothfish.
I can understand where you're coming from, I've been there. But let me tell you something, a good woman that is genuine, loves you and shares your values will blow your mind and everything you thought was important. She's going to be the hottest babe and best adventure you could ever dream of. They may be rare but they do exist.
I've got that, 2 beautiful kids, a McCrib and I'm bored to fucking tears
Maybe you've got a problem with low testosterone?
Bored? Jeez. I can't find enough time. Make sure the kids and grandkids learn from you what they need to become good citizens and not subjects of the NWO, it's the best thing you can do to honor and pass on your heritage.
must read by PCR ZH'rs...
Washington Is Driving The World To The Final War
Paul Craig Roberts
http://www.paulcraigroberts.org/2013/06/28/washington-is-driving-the-world-to-the-final-war-paul-craig-roberts/
In 1975 ordinary Americans were barred by law from owning and holding gold. Now they're just barred by ignorance about their own monetary system, peer pressure, fear of being marginalized as a 'gold bug', constant propaganda from the MSM and Financial media explaining how dangerous it is to own gold, how it makes them the equivalent of a 'pre-war Jew sewing it into their clothes'. The government has moved forward - no need to officially ban ownership when the same thing can be accomplished without the tarnish of appearing 'authoritarian'.
First, they laugh at you...
That's how it goes until the people whom are sufficiently fetished in jack boots and authoritarian imagery start coming into power. This party is seriously just getting started.
What, gold down again? How embarrassing for our Zero Hedge overlords!
--bks
Gold /quotes/zigman/6585799 1,251, +27, 2.23%
What charts are you looking at bks? better get some new glasses...
get some new charts, gold is tracing back up, numbnutz.
Zero Hedge overlords? What the fuck is that, a really bad remake of some 50s science fiction?
Oh, by the way...you might actually want to check the spot price before spewing out a bunch of nonsense bullshit lies and propaganda...gold is UP today, bitch!
MEMO TO ALL THE CHART PORNOGRAPHERS: THE MARKETS ARE RIGGED.
Yup - your favorite closet commie douchebag called 'Red Ronnie' Reagan implemented a Marxist command economy with the Plunge Protection Team in response to the '87 market crash. EVERY major stock/commodity index has been subject to 'open market operations' - a.k.a. manipulation since. Your charts only show the general direction of the markets...kind of. You can't call market tops or bottoms because you are NOT in the insider club where those decisions are made, and the big boys will NOT let the market decide diddly-shit.
Foam at the mouth all you want, bitches, but until the White Shoe Boys say so things will continue as planned. They could give a FUCK about your 'elliot wave' analysis either...
And that manipulation is exactly the economy has been in a death dive since they started it. They have only the power to destroy. Everytime the enter the market, they damage it.
Elliot Waves never worked in the first place, no matter the chart or time period or market.
Rate of change analysis, analysis of variance & fractal mapping, on the other hand, do continue to work, despite an environment riddled with complexity.
Hey I was 16 days old when that article came out. What a time it was...
Does anyone remember Gerry Ford's Whip Inflation Now (WIN) buttons? That was when a candy bar could still be had for a dime. Now it's $1.10. So multiply all those 70's numbers by 10 and $1200 gold price is very much the same as the low in 1976. I still remember around Christmas of 1980 seeing gold go over $1000 for the first time. A bunch of us were watching the news on TV when it was anounced and we all looked at each with the same thought. If this goes on we are toast. $10K gold in four or five years is possible if people start to panic out of the dollar.
I still have some. I have a big ball jar with Nixon/Kennedy, Goldwater/Johnson buttons. I wonder what they are worth. I even have the "AuH2O" bumperstickers. Plus, I have some block sheets of postal stamps with the Friendship 7 capsule actually signed by Glenn. I ought to see what they are worth.
I was looking at the stamps the other day. It was like 3 cents to mail a letter.
The REAL question that should concern every ZHer:
Since gold has now (briefly) fallen below $1200 an ounce, does that mean that JohnnyBravo is coming back to haunt us once again?
I remember a Colonel Cooper Vs J.B. battle over two years ago on one thread.Man that was the ZHs finest tit for tat YouTube linked exchanges. I recall it covered the entire comment section.I'll try locate that particular Fight Club special through the dusty archives and hopefully repost it.
The Colonel could put up a great argument !!!
JB, alias MasterBates, left us at a much lower gold price. Ah, the good ole days.
I can't believe the articles aren't peppered with MillionDollarBonus_ crap. Now all we got is SqueekyTranny, dink ReTroller.
Hmmm...let's see...MF Global or Gold?
Tough decision.
I wish silver would get back to $25 an ounce so I can dump mine
Buy high, sell low? BRILLIANT!
Put it on Craigslist for $25 an ounce. You'll probably sell it easily. My LCS is charging a $7 premium for ASE's, so unless you're hoarding junk silver, you'll be fine.
Both gold and fiat supporters will be winners either way.
If there is no meltdown, then you will have a good stock of gold for jewelery making.
If there is a meltdown, then your fiat will be put to good use in the bathroom.
If you are lucky, smart of have access to privileged information you can float between the two at great profit.
Nothing is guaranteed, nothing is totally safe.
700% really XD
not with that fed and paper shorting...
but who knows... ATM a lot of gold longs are holding the bags.
bags of good money. The only good kind to hold.
"more economically productive investments, such as stocks, real estate, and bank savings"
Haha,
bank savings. Dead giveaway, I knew right there this was old. They don't talk about bank savings anymore.
Silver For The People
there is too much speculaten goin on. everyone will turn in their gold to me, Oblowme, when I visit each town and hamlet. I will promise to guard it safely until speculaten has decreased an return it to you.
EO 1800GOTGOLD
***********
God, Gold, Land, Bullets and Beans.
The shame is that American symbols in the future will be posted alongside the Swastika unless we dump these maniacs.
At this point in time it matters little what one pays for gold.
What matters is that one has gold.
"What matters is that one has gold."
Maybe. I prefer having a large piece of arable land with wells run by windmills and a house, located in an area with a long growing season, a good distance from any population center.
I have a little gold too, but if the SHTF bigtime, I don't think gold will buy you much that will help you survive.
"but if the SHTF bigtime, I don't think gold will buy you much that will help you survive"
But afterwards it could buy 5 more of those "homesteads"
You were doing so well until the end.
In between sowing and harvesting with what will you exchange with if systems go belly up? Do you think someone will accept your promise of crops?
Or will you be able to sell two square metres of arable land?
Or if you are forced off your land what will you have that's yours that is mobile?
By the way, no down vote from me. We are all just trying to figure out what will work best when nothing any longer works.
Yeah well - I think you are wrong. Gold is money - buy whatever you need any time you need it. Land is taxable. You can only rent it from the tax assessor.
But, as they say, opinions are like assholes -- everybody has one.
"At that time gold was preparing to embark on an historic rally that would push it up more than 700% a little over three years later. Is it possible that the history is about to repeat itself?"
Maybe, maybe not. Anyone who claims to know is a liar.
"Is it possible that the history is about to repeat itself?" Not only is it possible, it is certain. The only question is which history?
Peter Schiff's father for President 2016.
Allow only known Tax Protestors to run for office, or else somebody who does not want the job and has to be persuaded to run for 1 term only.
Arrest all current office holders nad make them work roadside cleanup with flourescent vests that say "Banker," "Politican," etc on them.
http://www.slickguns.com/sites/default/files/41Vqq5qfanL._SL500_AA300_.jpg
Got just the pattern they need.
or: Peter Schiff for President, Irwin Schiff to run IRS (and abolish it)
(Evil Laugh)
Keep Stackin Bit-Chez!
I agree with Schiff. If I knew for certain there would be no gov't meddling, I think it's a no-brainer that gold will be multiples of the price it is now in a few years. The only reason I'm not pushing all-in is because I don't trust the gov't from making it illegal to own again.
Interesting development in the COT report for the S&P. In May the Large Specs were net long nearly 300,000 contracts. They are now net long only 57,000 contracts. In early June the Small Specs were net short around -50,000 contracts. They are now net long 122,000 contracts. Meaning, the Large Specs have been selling to the Small Specs "buying the dip," which means the long side of the market is now in weak hands. It also means the Large Specs have a lot of buying power again, so if we get a catalyst to roll this market over it could really take off. On the other hand, if we get a catalyst (his name is Ben) to spark the long side, the big money could take this another leg higher, which makes all eyes on Bernanke once again at the end of July. Is this guy a drama queen or what? How about some definitive clarity this time?
All that history stuff gets me thinking back to maybe 1494 or something. Oh, and that makes me think of a new Irish Poem!
Schooling The Gold Bugs
(Or, Das Narrenschiff Gersinken Habens!)
There once was a Schiff full of fools,
Who dogmatically held that GOLD RULES!!!
So they filled up the hold,
To the top with their gold.
Now they sleep with the fishes, in schools.
Squeeky Fromm, Girl Reporter
(PS: If you haven't ever heard of Das Narrenschiff, it is a really GREAT book and you should read it!)
How about one from your Charlie Manson years?
Hmmm. How about this!
Squeeky RIPS Mean Commenter A New One!
There once was a poster named Bastiat,
Who lacked any talent to spell worth squat!
And on names? He was worse!
Which prompted this verse.
Sooo,Touche! In Pace Requiescat!
SquEEky Fromm[no E], Girl Reporter
Meanwhile London Metals Exchange (LME) is telling gold buyers to wait 100 days for delivery, or accept cash.
http://www.bullionbullscanada.com/gold-commentary/26273-fraud-confirmed-...
and still despite the "worthlessness" of gold....and the steep price decline....and the "clear glut of metal in the marketplace"......the Comex, the Fed, JPM....
can't seem to find the bullion to give Germany back its gold......whadda know.......
strange, eh?
Have you ever read, or heard a reasonable response to that?
I am trying to come up with something, anything that would answer, why Germany has to wait for the Gold.
NYFed's response cannot be taken at face value, has any third party offered a legitmate reason fot the delay?
I can only think, the Gold is not there....
Can anyone offer something else?
Ccanuck
The only rational explanation other than "there is no gold there" is "fuck you! That's why."
It's a genrational thing! In 1976 I was to young and couldn't care less and in 2013 my father has passed and my mom couldn't care less. There is your correlation!
hey guys, why a huge jump for gdxj?
http://finance.yahoo.com/q?s=gdxj&ql=1
GDXJ was up nearly 3% on Monday after adjusting for the ETF’s 1-for4 reverse split.
i see their reasoning in these rev splits, but to me it just says to the shorts come on in, and to the odd lot buyers to shove off.
Back in the early days of markets, companies would do a split on their shares so it would look cheap. Especially if the appetite for the stock was there. Same thing may be true here.
"The biggest difference between then and now is that until 1975 ordinary Americans were barred by law from buying and owning gold." - regrettably not only that Peter.
Currently the ordinary Americans, do not have any idea about the physical gold - just to sum it up in a now (in)famous saying "it is NOT money". This is being proclaimed everywhere, so if someone looks into gold, 0.1% of the populous, it is in 99.5% of the cases owning PAPER. On that level, who needs restriction of owning gold, the restriction is not by law, it is in everyone head, and is named indoctrination. The most secure restriction is their own way of thinking.
it is good that we have people not with such (unbelievable) level of indoctrination and this time, the buyers will be on the others side of the Pacific and some across the Atlantic. Because to be frank most of the ordinary Americans are broke, and who do you thing will buy the physical, the us corporations? Wealthy us individual? If they do so IRS will hit them hard. So think again and do not allow your way of thinking to be limited.