This page has been archived and commenting is disabled.
Draghi On Gold "I Never Thought It Wise To Sell"
While Ben Bernanke would prefer not to discuss the barbarous relic, having noted in the past that "nobody really understands gold prices," it would seem his European brother-in-arms has a different opinion. When asked this week, by the ironically named Tekoa Da Silva, his thoughts on precious metals as reserve assets (and central banks around the world increasing their allocations), none other than the ECB head himself Mario Draghi explained "I never thought it wise to sell [gold], because for Central Banks this is a reserve of safety." But Draghi did not stop there, and perhaps enlightened by the farce in Washington this week, the unusually truthful central banker explained, "in the case of non-USD countries, it gives you good protection against fluctuations of the USD." Perhaps that is why China continues to import gold at a record pace? Oh, and don't fight the ECB...
»
- 21036 reads
- Printer-friendly version
- Send to friend
- advertisements -
as compared to the answer of our Maestro in front of a Congressional committee: i dont understand gold ... is complicated
My mantra: "Sell Paper. Buy Physical. Sleep Well."
Too bad Super Mario's buying so much paper. Must be tough for him to get a good night's sleep...
What? 'Buy intrinisc value,' I said? I make joke!
"Gold makes my head hurt."
--Alan Greenspan, aka Maestro, 2004
Draghi finishes sentence:
"I never thought it was wise to sell... ... because we central bankers always destroy the value of currency, and then what are you going to do."
James Grant: Gold standard is the obvious way forward
http://www.planbeconomics.com/2013/10/jim-grant-gold-standard-is-obvious...
Ron Paul: Is gold money?
Ben Bernanke: No.
Case Closed.
http://www.youtube.com/watch?v=G3TltMNbgGQ
I like this.
Larry "Gibson's Paradox" Summers was in the room and the only one to visibly react to the question; may well have had an underwear malfunction.
https://twitter.com/TekoaDasilva/status/390867896512942080/photo/1
----------------------
p.s. Tell James Grant that the 'gold standard' is a paper money system where you promise not to print more paper than you have gold.
Guess what.
Heh heh......gold bitchez!
Get thee some....
It is the way forward.
I think they will argue and negotiate and plan and cajole to make some other 'basket of currencies' or other alternative to a classic gold standard, but at the end of the day certain countries will only undermine or boycott it if their currency is disenfranchised.
in the end i think they will be resigned to going back to either a classic gold standard or cobble through some hybrid - but gold will be part of the deal, or else china wont be playing for one
GodDAMN, that Deirdre is smokin' hot!
While you guys know I tout Bitcoin on here, I think now is a fantastic time to load up on gold and silver. The prices have been beaten down so much lately and it's basically a firesale for physical. I think the future of international currency and digital wealth transfer is in Bitcoin, but gold and silver will always be good stores of wealth.
Gold price has been directly tracking with debt ceiling. Since the only direction of the debt ceiling is up, the last couple of weeks was a great opportunity to buy. I hope we have a few more days like today until February ( next ceiling hike)
why? so it is more expensive? you are being subsidized by the deep pockets of Joe sixpack - stop complaining about it and keep low until Joe realizes what is going on
Nobody understands gold, except people on ZeroHedge
Correlation is not causation. There is no way to know if the tracking relationship will continue or will diverge.
I have a position in the BTC. Silver phys. And some SLV. Bulk in the Phys. But wake me up in 4000 years when BTC has prooven the test of time.
Studying the weekly chart on the BTC suggests its testing resistance. Volume is akin to the Cyprus volume. Be interesting to see if it breaks out or trades back down to 120's. I would lighten a token or two in the 170's if no downward test. I will never liquidate my base position though. This MF could be over 1000 come FEB.
Of course I like FOFA thesis of 50,000k gold. My dude roller derby Bearing guy turned me on to him.
All in all big fan alt currency mates. And with a 95% correlation to debt ceiling. alls I can say is duh.
"... but gold and silver will always be good stores of wealth"
Well, yes because gold and silver are MONEY.
BITCOIN is not money, it's a "digital note", a promise.
"... the future of international currency and digital wealth transfer is in Bitcoin ..."
Well, no. The future of international currency are digital notes, redeemable in gold or silver on demand.
"BITCOIN is not money, it's a "digital note", a promise."
Wrong. Bitcoin is not a promise of anything. It's a unit of a currency that cannot be inflated. Its value floats on the market, just like gold's value does.
"Well, no. The future of international currency are digital notes, redeemable in gold or silver on demand."
LOL
So first you bash Bitcoin for saying it's a "promise" (when it's not), and then you say the future of international currency are... digital promises for gold. Great.
You clearly haven't thought this through, have you?
Spyker - For me the biggest problem Bitcoin faces , is a Government order to shut it down. They will simply point out that the Fed is the only authorised issuer of curreny in the country and BTC is thus illegal tender. And when things start to get nasty ( as they are ) the government will be closing down anything they feel like.
Let them try.
Been watching this movie. Started with "BTC is a scam. Then BTC was a Ponzi. Then it was for junkies and drug dealers. NOW it needs government support"?
I say let them try. This argument will collapse too.
A tasty bit for Ghordius:"The leader of France’s far-Right party has vowed that the European Union would “collapse like the Soviet Union” as she conspired to form what would be the most radical faction yet seen in the European parliament."
don't know alot about the" far right" so called, in EU, Whats up? anti illegals, less central power, ??
Ghordius, ever see the word "conspired" used to describe a leftist pol??
the "far right"? it's the various fascist parties (including nazis). the "far" is used for parties under the suspicion that if elected, they would not have further elections
yes, plenty of left and right conspiracies. we still have a substantial amount of lovable communists to offset our darling fascists
Ghordius:"we still have a substantial amount of lovable communists to offset our darling fascists"..thanks for the laugh...Cruz here is called the" Far Right" here..by idiot MSM, state sponsored slander is so NOW.
JESUS CHRIST COULD YOU IDIOTS PLEASE READ UP ON BITCOIN BEFORE YOU CRITICIZE IT??
IT'S A PEER TO PEER PROTOCOL. GOVERNMENTS CANT SHUT IT DOWN.
A , yes, Bitcoins are real, as is Santa Claus.
Yeah, and ZeroHedge isnt real because it's digital. Youre just dreaming all this.
Dude just buy a BTC and relax. They're no more than the cost of a two bit backpage trick. Buy two and you got the blow. Then just sit back and watch it happen. dont be a hater. Just watch it happen. Watch the mo. Big bro dont care bout your two BTC. They got bigger markets to rig. Hackers dont care either. Dey all tryn fer Dred Pirate's stach of 600k tokens before the NSA. Your just not that important. In three words ur just one of us. So dont hate. Buy two n watch it happen. Ur moms will thank you when it hits 100k. Lol.
Bitcoin is for suckers. Vulnerable to 51% attack and other things.
Silver is priced well (compared to its production cost) but owning silver is a bet on an improving real economy (real economy must improve for demand for silver, and thus price, to increase -- absent "monetization" of silver where it enters the market for use as money rather than as a production component).
Gold seems a much better bet, as an increase in gold's value is, unlike silver, not dependent upon policy makers enacting sensible policies that would actually improve the real economy. The risk to owning gold is that real interest rates could rise, but I view that as contingent, in turn, upon an economy that has actually improved by clearing out malinvestments. Gold also seems to have a better chance of being monetized than silver does.
Back peddle much? Fuck face. Another in a long line (lately) of "I told you so" after the fact admissions. But it's okay because there are unicorns. http://www.rothschild.com/
Hey Randy, why don't you do your family a favor and either shut up or fuck off. I read your posts and your conclusions and I think, "what a doomer douche bag".
Asshat. 3 weeks? Seriously? Funny how all of you fucks come out when the Rothschilds are mentioned. Go fuck yourself you fucking whore. Enjoy your ball gag while your employer fucks you in the ass. Fuckhead.
How he got that 2nd greenie i will never know. if pig vomit could take a shit, he would be pig vomit shit.
Can you believe these fucks? Thanks for watching my back.
These guys are paid to troll message boards and comment sections to influence the dialogue on whatever subject that threatens the status quo...
When the fuck will they notice that this is pretty much the only place on the internet that is immune to their bullshit?
As someone who has done some minor, part time tro lo lo loing/drunk posts I'm here for the fun and enlightenment. I've learned a lot thru the years and changed my views on a few things.
But the rude n crude pro trollers don't seem to make it past 6 wks. Maybe the Tyler's have something to do with that.
Well, there are a few other places on the internet that are bastions of immunity, but you're right to suggest that the vast majority of the internet is now infested with pro-government/banking/rothschild/israel/etc. shills. Over at another more chaotic board I like to frequent they've made it somewhat of a hobby to identify and ridicule the shills so much that even the sensible posts/posters are labeled as such. Good fun.
keyboard cowboys...meet them in person.....dumb as dorrnails....I LOVE encountering Obamaviks and taint lickers of "big government"....in person....I grind them into dust...one by one...
This pole fella is an agent - call security.
Gimp troll fuckers are thick as hell all the sudden. Guess they are heating up now that the furlough is over and Chalky can resume paying his blog troll squad.
It's scary.
And he called you Randy. I think he's crushing on you.
Watch ur six.
I feel like I should consult my Red Book for what to do. Really disturbing. Fuck these fuckers.
John Williams of Shadowstats expects hyperinflation to start by next year. Gold and silver may come in handy then.
http://www.silverdoctors.com/early-stages-of-hyperinflation-next-year-john-williams/
Meh.... He's been calling for HI for a couple years now. I'd say doublr digit inflation in the next 3-5 yrs, but not hyperinflation.
Sadly. I lost mine in a canoe accident but, whenever I see these asswipes like Silverdoctors, goldseek, Goldcore and any number of other turds whose simple job is to push PM's, I discount them as they are talking their book and not giving an unbiased appraisal of any situation. Their job is to upsell PM's, plain and fucking simple. They, like the rest of us on ZH want the world to buy so the price goes up. Plain and simple. That is the fact of the matter if you ask yourself, why do I push PM's So the peeps in my neighbothood can be prosperous? No, plain and simple individual greed.
How many times have these idiots been right in the past with their predictions? Gold to $2500 has been touted by many but not yet attained. Peter Schiff is one of the biggest shills but his predictions have continuously failed.
Yes, one day, my lost PM's will be worth a King's ransom but, to listen to anyone with a PM in thier URL is sheer folly. They have nothing but opinions which have all to date, been wrong.
Just buy it, hold it and discard what the shills are saying as they have no better knowledge than you or me.
That's all I got to say on it.
Blast away...
Up-arrow to you sir, but I have to say, I genuinely push PM's on people because I would like to see them preserve their wealth through the coming monetary transition. I would like to see people return to honest saving and prudent planning for future generations. I would also like to see people give their debt based currency back to industrial bankster complex and hold real wealth preserving money. To me, is the realm of gold as it will outlast any games being played in the market today. Not to say my greed doesn't influence my will, but my faith in gold influences it more, and my continued faith does not require positive price changes to be maintained.
I like John and I think he provides a valuable statistical service, but he's been calling for hyperinflation "next year" since 2008.
We really need to see the hard deflationary hit first before hyperinflation. That's been the pattern for quite some time. Perhaps all the QE covered that up, perhaps not, but I think we need to see things much more broken than they are before we can trust his call on this.
I'd be interested to hear John william's take on the zero hedge article a coupla weeks ago on that thesis about the shadow banking system's continual cratering sucking up all the QE and preventing what otherwise would be hyperinflation
The thing with the USD is its status as Reserve Currency.
The amount of USD held outside the US is as large or larger than one held in the US, which in turn is might explain why no significant inflation has been caused by the FED's money printing operations: the inflation has been exported (I discuss another explanation for this below)
This being the case, the other side of this coin is that hyperinflation in the US might be caused not by the traditional process, but by the foreigners selling their dollars on masse and the USD loosing it's Reserve Currency status, which would bring into the US all those years of exported money-printing-driven inflation. Depending on how fast this happens, it's quite possible that there is no hard deflationary hit at all, not even a moderate inflationary period and things just snowball to hyperinflation very fast, for example if large sales of USD turn into a stamped out of the currency.
Another possibility relating to your expectation of a hard deflactionary period is that historically central banks reacted to deflation with money printing, which later resulted in hyperinflation. This time around central banks are preempting deflation by printing money even before inflation turns negative. It seems that a lot of asset prices would be going down, not up, without the existing money printing, so it's quite possible that we currently are in the hard deflactionary period you mentioned, only it's not visible due to the offsetting expansion of the monetary base by central banks. This also provides a possible explanation to why money printing by central banks is not creating the amount of inflation one would expect.
What a sh*t heel this guy is. As for Europe...FMD!
The ONLY reason the EUR is sitting above 1.30 is the NY Fed is attached to the ECB. Simple. One day the EUR will implode once the printing presses are tuned off on the EUR denominations.
Eventually ECB liabilities will become Obama's one day via the IMF. Nice trade huh?
No where to hide.
you dont like what he said? too bad ... its probably true
It's great that the same people who we curse and rip apart all day long are quickly accepted as having told the truth once they agree with us.
Jamie Dimon said yesterday that it was assured that the bond market would turn on the U.S one day. Now today Draghi says that his LCS guy still likes gold. So now they are both telling the truth. Liars right up till now. Because when it becomes serious....
the real players have shorted paper and bought physical (all the way to the bank) ... what do you think if we know this much, they dont? you really believe they gave away the store? jamie is just an errands boy.
fuck Draghi. regardless of what he is saying. fuck him in the ear.
no problemo amigo - fine with me. btw, probably his remarks were not intended for wide distribution, but this is the age of internet
yeah man, it's all good, and agreed about the distribution.
He is talking up the Euro all the while selling the USD. To please Germany, that actually has gold, the ECB has none except for a printing press/NY Fed/and awesome countries like the PIIGS
It amazes me how exploited America is by the cronies in and outside it's boaders. It''s disgusting.
if Germany gets pleased that easy, we might as well extend the delivery to 17 years ... just a thought
Yes, has gold...........has it coming over the span of 7 years and counting?
Yup. They promised. Crossed their hearts and everything. Pinky swore. All golden tungsten back, 7 yrs. no problem. Drilling and filling...
I understand the words you are using but somehow the sense of your message escapes me. what exactly ought the ECB do, in your opinion?
I know some days my English is as bad as Mario's, but wouldn't his comments indicate that
THERE ACTUALLY IS A PLAN B (or a at least a plan Au)?
So it must have been serious if he was lying to ZH and the rest of the world?
Or was he telling the truth then and lying now?
of course there are several plans. we are continentals, we don't even go to have a shit without a plan and a backup plan
but they are scenario dependent. so no, we continentals don't see him as lying when he said that the EUR has a lot of sunken political capital in it that he was going to defend. that's true
if you make a shitty question, you'll get a shitty answer. the whole bunching together of 17 national bank is a reactive and defensive move. which was followed suit by the CHF, for example
we never hid the fact that Plan Au is a possibility. yet also remember that this is outside the ECB's scope
most of europe's gold does belong to the national treasuries anyway
cultural and historic context. just read the other comments and note how much the whole is misunderstood on the meme that "all the central banks are the same and allied"
nothing could be further from the truth
add to the above the question of expectations. we continentals don't expect the chairman of the ECB to say the truth. the ECB has one, and only one mandate: price stability
if he cheats, lies and threathens markets while maintaing the fundations of our internal economic price calculations intact... well, he is doing his damn job
completely in line with the traditions of the 17 national banks and of the Swedish, the Norvegian, the Swiss, etc. etc.
Hayek would approve, von Mises would not, if this helps to understand
----
the EUR itself can and will be sacrificed on the altar of price stability and economic calculation, if needed (though the shit would have to hit the fan way harder than currently)
we see it as protecting the real economy. in a way it's industrial capitalism vs financial capitalism. not a good way to put it, but it should give you a hint
"Stability" is as subject to interpretation and debate as President Bubba claimed the word "is" was. Just be sure to check your wallet EVERY time a politician or banker uses the word "sacrifice" -
I could construct a plausible defense of the 1980's USD devaluation in terms of maintaining price stability, economic production and exports (industrial capitalism), but it would gloss over the effects of easy money, leveraged debt and buyouts and the 1987 crash (financial capitalism); or for that matter a US-centric defense of Volker's actions against stagflation that glosses over their impact on Emerging Market economies which in turn transformed certain US Bank's assets into myths, further exacerbating what was to come later in the decade.
Regardless of whether a lying central banker has one mandate or two, I would question his ability to deliver promised results based on the inherent complexity of the engine design that must produce the output.
Meanwhile, I enjoy the benefits the SNB's defense of Swiss industry at relatively little cost (other than the atrociously weak domestic purchasing power of the CHF), but a relatively small mis-step in the financial sector can change all that very quickly.
absolutely agree. the SNB example is perfect, "sacrificing" some purchasing power for the sake of industry and tourism. yet don't forget what the SNB is currently purchasing with that...
"It amazes me how exploited America is by the cronies in and outside it's borders. It''s disgusting" - I presume you believe that, don't you?
The remaining belief of Americans in the strength of the American economy is so delusionary ... yeah, America has great access to natural and human resources ... but so does Europe.
So yeah, Europe is being torn up due to internal inequality ... but the same inequality exists inside the US, the internal transfer payments are just not a topic of discussion in the US at the moment (although if the average ZH had his way they certainly would be).
At the end of the day the Euro is tied to a trade block with an external trade balance ... and the US dollar is tied to a trade block which maintains an external trade balance by using it's military to hold onto the middle east as defacto US territory.
Ignoring the US's extortion tactics, the US dollar is tied to a fuckton more external liabilities than the Euro.
I'll bet Draghi wishes he had a supertanker full of gold right about now, with all those worthless assets he calls collateral backing up all those worthless piece of shit under-performing loans across southern Europe.
Hahaha, maybe Draggy will get a ECB expedition going looking for Hitlers gold scattered somewhere in the Italian alps in a salt mine or something. He is truly a f*cking a-hole. I hate him, yes he killed my trade in July 2012, unforgivable.
@ chump666 He(Draghi) bent me over last year in September with his save Europe at all costs bullshit. He deserves to be shipped to Iceland and thrown in a volcano! That's the only thing hot enough to kill a parasite bankster. ;-)
hahahahahahaah that was good. Yep, he killed so many positions.
ah, now I understand. the ECB "killed" your positions. well, perhaps you were betting on horses you don't know or understand?
Nobody can win a rigged game. It's not a matter of understanding.
Nah yen, it's been tried, if you throw them down an Icelandic volcano they just pop out again at Stromboli.
Or he could look in....say....Switzerland.....on maybe the Vatican?
Which is why I promote all CB sell their gold immediately.
Dollars? I shit'em...
Gordon Brown sells UK Gold in exchange for Euro toilet paper
Nothing new here didn't he say the same thing a few months to about a year ago about not wanting to sell the ECBs (alleged) gold reserves. For all we know this is just bs blowing to hide the fact they don't have the gold they say they have. Audit the ECB, public style so everyone can see if they have the collateral they say they have.
the ECB and the bunch of 17 cbs that are part of the EuroSystem are audited, regularly. including the ECB's gold. just saying
Fair enough. I am not familiar with how they do their auditing over there. My bad for assuming they used US standards for audits like the FED and Treasury concerning Fort Knox.
Whats with the recent truthful banker speak lately?
Reminds me of movie Liar, Liar..
It's from Revelations:
And lo, when the lion doth lie with the lamb, and the puppy doth play gently with the kitten, thine banksters shalt speakest with a straight tongue and the dead shall rise and walk upon the face of the earth.
Shit. Must be King James Version.
Don't recall zombie prophesies that were so specific. Good times.
It's from Revelations
First of all it's Revelation.....without the "S".
Second of all it doesn't say that....I should know....I've actually read it. It's like the ultimate DD. You might want to grab a copy of it....we seem to be heading into it.
I'll say the same thing that I've been admonished twice this week with, for good reason.
"Pay attention to what they do, not what they say."
I wrote it on the blackboard 500 times.
Excellent advice. Sometimes difficult to follow, given they're quite canny at covering their dirty slime trails.
But, but Canada is going to make up for selling all it's gold by issuing crypto currency this fall.
http://business.financialpost.com/2013/09/19/canadian-mint-pushes-ahead-...
Canada is going to make a fortune "servicing" the fucked up Obamacare software they coded and in some cases stole and sold to us.
By the way Canada, thanks for screwing up on that one and do us a solid any keep the bugs coming.
Tekoa da silva has an uncle in Lugano. Grebal la golda.
Saw a commercial for Ford where the announcer goes "We'll do whatever it takes to get a Ford pickup in your driveway," and just couldn't stop laughing, as all these central bankers have been saying those same words 'we'll do whatever it takes.'
Mario, why didn't you tell this to your mate Gordo, the Kirkcaldy cunt, the North Queensferry bampot?
Amazing, the CBers are finally ready to admit they have been lending monopoly muny with no reserve.
Apparently afraid the tide is going out, and a stack of countries and banks are going to be caught out.
"in the case of non-USD countries, it gives you good protection against fluctuations of the USD."
translation: The US will be mad at me unless I say this,, but....
Can someone please send this to Gordon Brown?
Baaahahahaaaa!
I'm a gold bull but now that central banks have started to pump it i'm getting a bit worried...
When you see yourself as the ultimate authority on all things economic and do not understand something, you think nobody else might be able to understand that which stumps you. A delusion leading to an error.
“When it becomes serious, you have to lie." -Jean Claude Juncker
I will always remember that admission above.
The American's must hate the European's sometimes as they do from time-to-time throw a spanner in the works and speak some truth.
I doubt Draghi will get any public praise from other central bankers around the world for those comments lol.
these ****s will say anything
now seriously, what's so strange about Draghi saying that selling gold it's a bad idea for national banks, particularly those who can't print USDs?
he gave a completely orthodox answer, for a member of the EuroSystem. we never stopped believing in gold, on the continent
perhaps, just perhaps, you have not understood what sensible monetary policy means, for us. or what our options are and aren't. and betting against an entity of this size and firepower while not understanding it's goals does not sound like an intelligent thing to do, imho
...."Europe has 8000 tonnes of gold, in particular Germany has 3000 tonnes"...
James G. Ricktards, famed author of Currency Wars.
Pretty shure we leased out a fuck ton... Oh and a big part of it resides at club fed.
@Fuh Querada
Europe has more than 12600 T. of gold
http://en.wikipedia.org/wiki/Gold_reserve
Germany 3391.3 Italy 2451.8 France 2435.4 Switzerland 1040.1 Netherlands 612.5 ECB (European Central Bank) 502.1 Portugal 382.5 United Kingdom 310.3 Spain 281.6 Austria 280,0 Belgium 227.4 Sweden 125.7 Greece 112,0 Romania 103.7 Poland 102.9 Denmark 66.5 Belarus 49.4 Finland 49.1 Bulgaria 40,0 Ukraine 36.4 Slovakia 31.8yes but where is...if they cant hold it they dont own it..the cen banks have sold the real wealth to the east and sold out their nation sovereinty...this will be a slow reality to be absorbed
correction appreciated. But as remarked below, it all depends on the meaning of "has", as Germany discovered. They have paper receipts for a good portion of it.
You are right.
In fact , it depends of the countries.
wogs dont sell gold
no shit
So, Bernanke, who is naked shorting the hell out of gold on a massive scale, says he doesn't understand gold prices?
Hollywood couldn't make this stuff up.
I heard all Italy's gold was on board the Costa Concordia. Tragic.
Europe could easily get their gold back in a flash if they accepted freshly minted US$ from the US and purchased physical in their own markets. The pnly problem is the possibility of real price discovery.
The risk, in getting paid in Casino Chips ($), is that the Casino could go bust before you're done cashing out at the teller.