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Why The Game Is Not Over Yet For Gold

Tyler Durden's picture


2013 was a brutal year for precious metals investors. Santiago Capital's Brent Johnson begins his excellent presentation "#$1%!k##!!***#$$" with a mea culpa for the worst year in a dozen even as Santiago topped the list of precious metals funds. But crucially, Brent points out, "it is only half-time" in this fight and "if gold investors will stick with the fundamentals - which is very hard to do sometimes - the second half could be very rewarding." Simply put, he notes, the only reason the level of water in our economic bucket has increased slightly is not because the holes are fixed... but because we are pumping dollars in quicker than they are leaking out. "Excess Reserves are a ticking time bomb," Johnson adds, and the second half of this monetary game will be very different from the first.

Part 1 - "The First Half Of This Monetary Game" -

Fund performance, Mea Culpa...


What the Fed has done so far, holes in our economic bucket..."the only reason the level of water in our economic bucket has increased slightly is not because the holes are fixed... but because we are pumping dollars in quicker than they are leaking out"

money printing, the housing 'recovery', and stocks vs the real economy... "if you spend $8 trillion and can't throw a good party, you should be thrown in jail"

Part 2 - "How The Second Half Will Play Out"


Where has all the QE money gone? Why inflation has remained tame... "excess reseves are a ticking time bomb"


Fed reassuranes are bullshit. How reverse repo will work and how the second half of non-expanding monetary base will be a problem. Simply put, if the Fed cannot get monetary velocty to pick back up then they will not be able to continue tapering... and velocity increasing is inflationary.

They can't rase rates as they are now in extreme forward guidance mode that they will keep interest rates low for an extraordinary period of time...

This will end badly - its a matter of "if" not "when"... but as Johnson goes on, there are still challenges (e.g. India) but selling gold now is concentrating assets not diversifying them... and we are going to win in the end.


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Thu, 01/16/2014 - 22:17 | 4339802 Big Slick
Big Slick's picture

Gold... bitchez!

Thu, 01/16/2014 - 22:28 | 4339848 Long-John-Silver
Long-John-Silver's picture

2013 was a good year for buyers of Gold (and other PM's).

Thu, 01/16/2014 - 22:45 | 4339887 lineskis
lineskis's picture

"If they continue to taper, velocity must go up."

I doubt the monetary base is the only factor influencing money velocity. Taxes and governments hunting down capital seems to make velocity go down, no?

Thu, 01/16/2014 - 23:49 | 4340017 SafelyGraze
SafelyGraze's picture

a reminder for all you operators out there:

men should not ride in buckets

and at 5:00, "men shall not work near dangerous banks"

rio tinto 


Fri, 01/17/2014 - 00:29 | 4340082 acetinker
acetinker's picture

lol!  How bout "men shall not work for rio tinto"?

Fri, 01/17/2014 - 10:48 | 4340741 markmotive
markmotive's picture

Eric Sprott says 'yes'.

Of course, it helps to be bullish when you have a horse in the race.

Fri, 01/17/2014 - 03:58 | 4340226 X_mloclaM
X_mloclaM's picture

GDP revisions to include research !Buried *velocity* the symptom  cough.. the recovery is over now ..  omg  ... noo

Fri, 01/17/2014 - 09:54 | 4340541 RaceToTheBottom
RaceToTheBottom's picture

Reserve requirements can be further decimated, along with accounting standards all allow the WS Banksters to play looser and that will speed up the Velocity, I think.

Get ready to clean up their mess.

Fri, 01/17/2014 - 10:24 | 4340649 dmger14
dmger14's picture

I believe he said that velocity must go up in order for them to taper.  The reason for QE was to combat declining velocity.  They can't taper with velocity declining or the markets and economy crash.

Fri, 01/17/2014 - 02:37 | 4340202 TheRideNeverEnds
TheRideNeverEnds's picture

If you liked gold at 1200 you are going to LOVE IT at 600!

Fri, 01/17/2014 - 04:14 | 4340237 Ulterior
Ulterior's picture

I am still underwater with my positions, we probably live in differenet univereses

Fri, 01/17/2014 - 08:53 | 4340391 N2OJoe
N2OJoe's picture

I have a little math problem for you: If gold is $600 and there's no gold left in Fort Knox, yet the Chinese and Indians continue buying at a breakneck pace, then how long till there's no gold left in the west and paper gold ceases to exist?

Stack on bichez!

Thu, 01/16/2014 - 22:28 | 4339849 Harbanger
Harbanger's picture

War bitchez!

Thu, 01/16/2014 - 22:32 | 4339858 prains
prains's picture

Bread Helmets Bitchez!

Thu, 01/16/2014 - 22:39 | 4339874 Harbanger
Harbanger's picture

Helmets for bread, Bitchez!

Thu, 01/16/2014 - 23:13 | 4339945 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Long on Glocks, Ak-47's, and Ammo...

Fri, 01/17/2014 - 01:43 | 4340157 Schmuck Raker
Schmuck Raker's picture

"#$1%!k##!!***#$$"... bitchez!

Thu, 01/16/2014 - 22:11 | 4339806 DoChenRollingBearing
DoChenRollingBearing's picture

Give me another 24 hours and I will finish my near-epic "Gold and Bitcoin" piece.  Gold, fishez!  But, BTC may have a place too...  Stay tuned!

Fri, 01/17/2014 - 01:58 | 4340174 Muppetrage
Muppetrage's picture

So I was just kinda thinking about bitcoin, and I've come to some conclusions. I'm probably wrong, so help me out here.

Ok, so assume that everything they say is true: unhackable, open source code, and limited supply.

Ok then, next week the Fed comes out and says we now have Reservecoin, exact same open source code as bitcoin, unhackable, and limited supply. Accepted everywhere bitcoin is accepted.
So what happens next? People rush in to make big gains just like bitcoin.

Ok then a few weeks later we have.
JPMcoin, Citicoin, BofAcoin, HSBCcoin, Muppetcoin,accepted everywhere.

Then weeks later, PayPalcoin, Amazoncoin, Ebaycoin, Visacoin,Mastercoin,Discovercoin,citgocoin,shellcoin,BPcoin,etc...etc...etc...

Wouldn't we just effectively have Unlimitedsupplycoin???

Fri, 01/17/2014 - 04:31 | 4340249 Oracle of Kypseli
Oracle of Kypseli's picture

The concept of competing parallel currencies is a good one. The one that survives is determined by the markets and the principle of "Bad money drives out good". (Gresham's Law).

Let them then offer whatever alternatives they want. I am sticking with PM's.

Fri, 01/17/2014 - 08:10 | 4340352 TheRideNeverEnds
TheRideNeverEnds's picture

I am putting my money on Cryptosheckel for the long haul.  

Fri, 01/17/2014 - 02:55 | 4340208 disabledvet
disabledvet's picture

the value of gold hasn't changed...just the game of getting it has. Epic Failure 2013 happen for a reason...namely, the time for mining on earth is past for all intents and purposes. Your tell has always been South Africa. They keep mining but the currency has never rallied once after the collapse.

Now Venezuela is hyperinflating? And Argentina...again?

I would argue "get zee gold" has simply entered a whole new ballgame that's all. Doing everything possible to keep energy from being imported into the USA is the "last gasp."

Fri, 01/17/2014 - 06:27 | 4340291 samcontrol
samcontrol's picture

do Chen

just like your epic advice on Argentina?

Thu, 01/16/2014 - 22:12 | 4339814 living on the edge
living on the edge's picture

This will end badly - its a matter of "if" not "when"

I say it is a matter of "when" because "if" already left the building...

Thu, 01/16/2014 - 22:29 | 4339853 DoChenRollingBearing
DoChenRollingBearing's picture

Yes.  When, fishez?!

Thu, 01/16/2014 - 23:48 | 4340013 fockewulf190
fockewulf190's picture

You need to act as if "when" is always tomorrow.  Keep preparing,  Keep stacking.  If "when" doesn´t show up the next day, all that means is you have recieved a 24 hour pass.  When this system implodes, it will probably be sudden and out of the blue, even though the writing on the wall is so obvious to see.  And for your own sake, don´t worry about the damn fiat price for phyzz, just get as much as you can as soon as you can.

Fri, 01/17/2014 - 06:17 | 4340285 saveandsound
saveandsound's picture

Altough I have a crush on PMs, I wouldn't place all eggs in one basket.

Just saying.

Fri, 01/17/2014 - 09:00 | 4340402 youngman
youngman's picture

I agree it will be a fast eruption..probably a Sunday night episode again....when deliveries can not be made....that wil be the red flag...

Thu, 01/16/2014 - 22:16 | 4339820 Greenskeeper_Carl
Greenskeeper_Carl's picture

Wasn't a bad year for me. I bought a lot more a lot cheaper than I ever thought I would get. And we are at 17t in debt, which will undoubtably double by 2025, assuming this is still a country/currency by then, and as a less than 30 year old, I am in it for the long haul. They can keep it down here for years if they want, and I will keep buying. Eventually their paper games will stop working and gold/silver wil be able to find their true value, in the mean time I will continue to enjoy the sale. Thanks ya fuckers

Thu, 01/16/2014 - 22:41 | 4339880 Miffed Microbio...
Miffed Microbiologist's picture

Carl, I think your age group has the best chance of surviving this charade when it finally blows up. Being 20 years older, it looks a bit tenuous for me the longer this goes on. Everything purchase we make now is geared to hunkering down for a highly uncertain future. Next up is a week battery backup for our solar panels. Thanks to Benny's inflation, major purchases are difficult to save but not dumping cash in worthless trinkets, new cars and mindless entertainment frees up cash our sheeple associates seem to spend without a second thought. Of course, they look at us and snicker. This does not incline me to help them much when the time comes.


Thu, 01/16/2014 - 23:15 | 4339951 Callz d Ballz
Callz d Ballz's picture

Miffed- wind is a great compliment to solar, the non-commercial home brew type are incredible coupled with the right gear. If you're in a good area for it, it's a no brainer.

Fri, 01/17/2014 - 00:36 | 4340090 Miffed Microbio...
Miffed Microbiologist's picture

I have a neighbor who home brewed a nice set of little turbines. Mr and I were very fascinated with his set up. The final verdict was a thumbs down. Our area has seasonally very gusty winds ( up to 80mph) but otherwise very calm. He said it over all wasn't very cost effective. A constant breeze would have been better. It's too bad, we were very hopeful. I'm sure other places would be better. However, when it comes to sunshine we can't be beat by too many.


Fri, 01/17/2014 - 09:58 | 4340552 Tall Tom
Tall Tom's picture

You can write that again. No rain this winter. Sunny skies.


Unfortunately this is setting up to be a Tinder Box year for Wildfire Season. (And most think it is the Earthquakes which threaten our Southwestern Corner Cul-de-sac.)  Those damned Santa Anas will blow down any Wind Turbines.


Get rid of those Oil Filled Eucalyptus Trees. (Although they might tell you if thar is coluah in da ground underneath yer property.)



Fri, 01/17/2014 - 11:41 | 4340965 Miffed Microbio...
Miffed Microbiologist's picture

So right! The Cedar Fire started 4 miles from my home. I was one of those poor saps who called 911 to report the fire and they poo pood it. Now if you report a wisp of smoke, four trucks come with sirens a blazing. Euks are bad but palm trees are worse. Go up like a Roman candle and explode shooting embers everywhere. We have lots of Manzanita that do burn like the dickens but quite hardy and come back. Obviously naturalized to this high fire area.

Our biggest fear is though we have a 10,000 gallon cistern, when the fire takes out the power, the solar is designed to shut off ( to prevent it from sending power onto the damaged grid which can hurt repair crews) and we have no way to pump our water. Then the fire trucks sweep the area and drain everyone's cisterns to fight the fire. This happened to us during the Cedar fire.

Winds are blowing hard now. I'm nervious some idiot may take advantage.


Thu, 01/16/2014 - 23:59 | 4340036 quasimodo
quasimodo's picture

Not so sure about that miffed, I think your era and mine(40's) are going to see things blow up too before we are unable or too feeble to make a difference in our own lives. 

That chicken on Wall St? That SOB can only go around in the rotisserie for so long. The skin turned a nice, golden brown some years ago, and right now it's on the verge of edible and burnt to a f-ing crisp.

Pardon the cheesy analogy but anything else requires too many other colorful words.

Fri, 01/17/2014 - 00:45 | 4340099 Miffed Microbio...
Miffed Microbiologist's picture

Yes, you are probably right. Everything I want to do seems to get farther and farther out of financial reach. Then I'm not so sure if making our home a survivable fortress is even wise. What if conditions occur requiring us to move. Right now we are in extreme drought conditions here. If it lasts long enough will our well still produce? It's just impossible to prepare for so many contingencies and it's what you don't see is what slaps you in the face. This is why I try to balance the doomer prepping with lots of pleasures today for who knows what tomorrow will bring.


Fri, 01/17/2014 - 02:07 | 4340183 MeelionDollerBogus
MeelionDollerBogus's picture

Dewpointe Atmospheric Water Generator

my advice: inspect the idea, see if you can find it cheap & do be ready to move. The USA will collapse & imagine nearly everywhere being Detroit.

Fri, 01/17/2014 - 11:09 | 4340803 fedupwhiteguy
fedupwhiteguy's picture

Thanks for the link. I didn't know those existed as home units. I plan on researching that and see if the power draw can be lowered by eliminating the hot & cold aspect. Room temp water is a bit better for  you than cold water.

Fri, 01/17/2014 - 17:42 | 4342232 MeelionDollerBogus
MeelionDollerBogus's picture

I'm betting the UV filtering is most of the draw.
The cold is what you need to condense, I don't think that's optional.
Taking it from the air, however, I'd imagine a lot of excessive UV filtering is easily turned off & not needed.

Fri, 01/17/2014 - 10:01 | 4340565 Tall Tom
Tall Tom's picture

Are you in North County or East County?

Fri, 01/17/2014 - 11:06 | 4340795 fedupwhiteguy
fedupwhiteguy's picture

i believe she's in the East County as am I.

Fri, 01/17/2014 - 12:55 | 4341316 Miffed Microbio...
Miffed Microbiologist's picture

I'm near Ramona


Fri, 01/17/2014 - 14:44 | 4341694 fedupwhiteguy
fedupwhiteguy's picture

wow! so close. i just sold house and am making plans to move everything 955 miles north.

Fri, 01/17/2014 - 18:57 | 4342449 Miffed Microbio...
Miffed Microbiologist's picture

Well, that will take you out of Cali. Congrats. If I lose my job we will probably make our move because my husband can work from anywhere. He absolutely loves Colorado around the Durango area. Since I dragged him to this god forsaken shit hole 30 years ago, I feel he has first pick to our new home.


Fri, 01/17/2014 - 00:04 | 4339898 skyun
skyun's picture

Carl sounds like you just birded #3 and just cant waite to tee it up on the reachable par 5 #4. Good luck bro.

Fri, 01/17/2014 - 08:41 | 4340376 BoNeSxxx
BoNeSxxx's picture

Much like your user name Carl, you are wise beyond your years.

Thu, 01/16/2014 - 22:26 | 4339844 Donewidit
Donewidit's picture

I keep going back to that dow/gold ratio chart, speaks volumes.

Thu, 01/16/2014 - 23:16 | 4339958 satoshi101
satoshi101's picture

ONLY in hindsight does the DOW/GOLD ratio speak,

The last time  the DOW-GOLD ratio 'signalled' BUY to the stackers is when the 3X GOLD-ETF's fell 50% in one day...

Go ahead and follow the GOLD/DOW ratio, but DO opposite what the stackers tell you to do.

[ I own GOLD, of course I do, living in ASIA, I keep gold in the house for insurance, ... just in case, but so does everybody, ... its like saying "I like sex", ... it doesn't need to be said, unless your an idiot ]

Thu, 01/16/2014 - 22:36 | 4339869 NoDebt
NoDebt's picture

20 years ago I couldn't imagine the day when pot was legal to buy but gold wasn't.  Well, we're halfway there now.  The problem in the future won't be the value of gold, it will be that it's illegal to buy or possess, thanks to coming capital controls.  That's the future speed bump that stands in the way of basically everything that isn't tied inexorably to the dollar.

I expect some down arrows here, so please provide an explanation after you hammer me.  I could be wrong about this.


Thu, 01/16/2014 - 22:39 | 4339878 prains
prains's picture

I could be wrong about this.


NoDebt, if you're married this goes without saying

Thu, 01/16/2014 - 23:16 | 4339957 NoDebt
NoDebt's picture

Shit.  Yes, I'm married.  Now I feel so foolish.  I can't believe I forgot that obvious rule.

Thu, 01/16/2014 - 22:43 | 4339885 Callz d Ballz
Callz d Ballz's picture

The problem in the future won't be the value of gold, it will be that it's illegal to buy or possess, thanks to coming capital controls

Bring it!

Thu, 01/16/2014 - 22:49 | 4339896 SWCroaker
SWCroaker's picture

What's the point?  Why enact a law to control something that almost no US cit owns?  

1933 was different.  The ruling then essentially seize all hard deposits in banks, from people some, but mostly from businesses.   It was successful enough that the gov actually didn't make much of a stink about cleaning the last coins out from the citizenry's pockets; they'd already nabbed most of the bullion from the bank holdings.

Contrast with today: why pass a law that visibly persecuted mainly disparate individual citizens, for a net gain of really not so much?

Much more likely that they'll front-run the collapse by building bullion positions, and then expect to live like kings when the value of it goes parabolic due in large part to their machinations.

Thu, 01/16/2014 - 23:10 | 4339939 DoChenRollingBearing
DoChenRollingBearing's picture

Or revalue it to a very high price (call in the gold for $10,000 / oz for example), "FOFOA-style".  FOFOA writes that is one very plausible scenario, .gov offers to buy agold att an arbitrarily very high price (then starts paying down some of the debt <-- also as an example).

Once "they" raise the price to $5000 or $10,000 (which I believe they could do, it would be the new "floor" under price of gold, physical gold), then Freegold would likely quickly follow: the world would then see that only physical gold counts, and everybody would want some.  Just as those of us who own decide NOT to sell...

Thu, 01/16/2014 - 23:12 | 4339947 satoshi101
satoshi101's picture

Now your asking the right questions.

Think in the last 20+ years they moved most GOLD investors to paper-gold, nobody has PHYS-GOLD in spite of rhetoric.

Of course in ASIA everybody has PHYS-GOLD

I agree in 1933, with 25% un-employment, most citizens had long sold their GOLD to eat, ... the GOLD GRAB was largely because it was easy, and cheap.

Today, the GUBMINT has cleverly moved 90% of STACKERS to the paper  market, ... so the GOLD is not real in the first place,

There simply is NOT enough REAL gold in the hands of the public to bother.


The other thing given that the  GUBMINT can now print unlimited FIAT for free, and forever, ... in the past grabbing GOLD had a purpose, to control capital-flight, ... but now with the NUKE-GUN on the worlds head, the USA doesn't have this problem, now the WORLD is running to the USD, becaues they USA has destroyed the ALT.


Thu, 01/16/2014 - 23:24 | 4339973 NoDebt
NoDebt's picture

Fair point, but they're already going after BitCoin and it's no bigger than a fly on an elephant's ass compared to gold (paper or physical).  I have a feeling the relative size and worth of certain assets could change dramatically.  US Treasuries are HUGE compared to anything physical right now.  But if they start to tank, those other assets suddely look much more compelling to confiscate by comparison.


Fri, 01/17/2014 - 01:52 | 4340171 satoshi101
satoshi101's picture

In CHINA they're going after BITCOIN.

In the USA every NAZI is all over himself praising BTC.


In 80% of the world, they want to protect the citizen from fraud, in the USA the criminals run the government, thus BITCOIN is encouraged in the USA.


IMHO it will even be easier to create FIAT to the moon with BITCOIN than with the USD,... this fucking MYTH of 21Million BTC's,... what a fucking joke, its going to be 4 quadrillion a year brought into the pool.

The FED is 100 years, and people ask intelligent questions, with BITCOIN you got every moron in the world praising it as SALVATION.

Don't think for a minute that anybody in the IRS/NSA/CIA/DEA is going 'after bitcoin' they're encouraging the bitch more than FONESTAR.

Thu, 01/16/2014 - 22:51 | 4339900 Tinky
Tinky's picture

The U.S. government is going to make it illegal to own the most widely held and trusted collateral (and hard currency) in the world? They're going to do it when its importance becomes more widely understood than it has been for generations (i.e as the dollar is in its death throes, and Au value is surging)? Confiscation?

Won't happen. What is likely is that taxes on profits from the sale of gold will increase significantly.

Fri, 01/17/2014 - 06:36 | 4340294 Gene Parmesan
Gene Parmesan's picture

I think it could happen, but more as a form of political punishment than anything else. They won't stand idly by while the freedom crowd gets rich. It sends the wrong message to their voting base. Control over everything at all costs is their game.

Fri, 01/17/2014 - 09:02 | 4340408 L_Conquistador
L_Conquistador's picture

I suspect that the NSA knows that the loyalists own S&P crap, and the freemen own gold and silver.  It's another motive for their suppression of precious metals. 

Sat, 01/18/2014 - 03:18 | 4343454 AgentScruffy
AgentScruffy's picture

Smuggling of gold + silver would take off. Americans are resourceful.

Thu, 01/16/2014 - 22:51 | 4339901 Miffed Microbio...
Miffed Microbiologist's picture

The possible looming threat of capital controls hesitated our first purchases of gold. When I read Surviving the Economic Collapse by Ferfal Aguirre and what happened in Argentina in the early 2000s, I learned what use gold can be in such situations. The book also elucidated important practical survival skills in a modern situation unlike some authors who seem to think the return of the horse and buggy is inevitable. I highly recommend it.


Thu, 01/16/2014 - 23:33 | 4339985 Harbanger
Harbanger's picture

That may help you at that moment, but like in Argentina, they went even more radical left than before their economic collapse.  Gold sales have since been banned in Argentina, since 2012.  That's why I say, enjoy the liberties your forefathers fought and gave their blood for bitches, while you still can.

Thu, 01/16/2014 - 23:01 | 4339914 Harbanger
Harbanger's picture

"The problem in the future won't be the value of gold, it will be that it's illegal to buy or possess, thanks to coming capital controls."

That's why our real problems are political/ideological, not simply financial.  But that takes thought, courage and creates conflict.  It's easier to believe that when this 100 year progressive dream collapses, the statists will admit failure and we will gracefully return to liberty.  Sorry, but that ain't gonna happen bitches.

Thu, 01/16/2014 - 23:07 | 4339931 satoshi101
satoshi101's picture

Buying government 'stamped' pot ain't freedom.

Not long before the gubmint adulterates and fucks the pot, ... they always do,

How long before BATF takes over and becomes the NAZI POT REGULATOR?

I will fucking come, and then if you want quality POT, it will be back to the fucking black-market,... who in the fucking HELL want's to smoke BATF-APPROVED POT?"

"Freedom in the USA, just another word, for NOTHING left to lose" - janis Joplin


Thu, 01/16/2014 - 23:15 | 4339953 Harbanger
Harbanger's picture

I agree, freedom now means freedom to be a degenerate.  The problem is global however, our hollywood mafia has very long tentacles.  I'm not concerned, I've been fighting and winning from the bottom my entire life.

Fri, 01/17/2014 - 02:13 | 4340184 satoshi101
satoshi101's picture

That's another common myth here on ZH, that because the USA is a failed penal colony and a nation of dumb hair-lips so every where else.



Anybody that tell's you that the rest of the world is even remotely as fucked up as the USA is a fucking village idiot that has never left the USA.

No place on earth is as much of a fucked up police-state, with cops and their unlimited budgets (NSA/CIA), and Google, with unlimited potential to create unlimited SPY GADGETS ( glasses, contact-lens ), ... It never fucking ends.

Most country's don't have USA-movies, and/or USA violent TV, and the cop's are too POOR to buy a bicycle or a gun. Poor police means NO spy gadgets, and no cameras on every post.

Only in the USA where UNLIMITED FIAT means UNLIMITED TOYS for COPS and INFINITE POLICE STATE, every where else in the world COP means poor, and feeding your family with small-time graft.

Fri, 01/17/2014 - 02:52 | 4340207 Harbanger
Harbanger's picture

That's why our problem is not financial.  Simply limiting funding as in your example, doesn't give the citizens any more rights or liberty.  It just means that it's easier to break the law in those places.   Any poor country with dictatorship is an example of that.  I wish you were right about most countries not having access to Hollywood, believe me, especially since the internet, Hollywoods influence is everywhere.

Fri, 01/17/2014 - 10:59 | 4340774 F em all but 6
F em all but 6's picture

Of course they will regulate it. According to USSC precedent, the fed can prohibit it altogether.

But we arent dealing with State Police powers here as those (regulatory) powers are reserved to the States. BATF was originated under dept of treasury. AKA Federal Taxing Power. The power to place an excise on the privilege of engaging in the business of growing and selling )manufacturers and dealers) includes the power to control the identification and movement of the property subject to the tax. Movement involving commerce powers. The fed will use those powers to control everything.


And as for the black market? Yup, created by overtaxing and abusive regulation. Prohibition created the likes of Al Capone. Taxation and regulation that can and does act to prohibit always leads  to mass organized crime and all the fun that goes with it. Cause and affect. The entire universe operates on that simple principle.

Thu, 01/16/2014 - 23:03 | 4339923 satoshi101
satoshi101's picture

That's ONLY a problem, if you STAY in the USA.

Nobody in ASIA fears they can't have their GOLD, it would be UN-THINKABLE for a government to take your GOLD or your CHILDREN.

The fact that the US Government can enter a home and take children, ... is symptomatic that the USA man has NO fucking balls.


Keep the PEOPLE drugged up, and hooked to PORN.

It's all here now, ... drugs legal, and KARDASHIAN SNATCH 24/7

This has all long been predicted, but GOLD.

Remember everyone in the USA is a wage/debt SLAVE, why in the fucking hell should the plantation owners allow slaves to OWN gold?


Your choice to live in a SLAVE-STATE,

You think that smoking 'pot' is FREEDOM? My ass

Even here where I live, old women openly sell 'smoke' in the market, ... so fucking what, ... nobody cares,... just another example how a natural right, becomes a monopoly government biz in the USA.


Fri, 01/17/2014 - 01:59 | 4340175 MeelionDollerBogus
MeelionDollerBogus's picture

considering indications pot can cure cancer I think it's a big deal it become legal.

Gold can do awesome things but directly cure cancer as-found from nature: it can't do that.

Fri, 01/17/2014 - 02:04 | 4340179 satoshi101
satoshi101's picture

'medical marijuana' has been legal for years,... why are we talking about this?

Fri, 01/17/2014 - 03:55 | 4340225 MeelionDollerBogus
MeelionDollerBogus's picture

no it hasn't, not everywhere. It's got to be everywhere & that's why we're talking about it.
This process has only just started.

Fri, 01/17/2014 - 10:55 | 4340764 skyun
skyun's picture

Ever heard of GOLDSCHLAGER... It can cure many ailments. Come to think of it... It can cause many ailments.

Thu, 01/16/2014 - 22:42 | 4339882 Fix It Again Timmy
Fix It Again Timmy's picture

Motto of Wall Street and The Beltway - "I Steal, Therefore I Am..."  I don't believe that's a sustainable trend....

Thu, 01/16/2014 - 22:55 | 4339907 homiegot
homiegot's picture

You're wrong because gold is being manipulated.

Thu, 01/16/2014 - 22:59 | 4339919 Callz d Ballz
Callz d Ballz's picture

Won't be cashing in that policy until the time is right. I suggest alternative holdings in the interim.

Thu, 01/16/2014 - 23:40 | 4340000 skank
skank's picture

Slider: Crash and burn, huh, Mav?

Top Gun Maverick Vs Jester

Fri, 01/17/2014 - 00:00 | 4340037 shutdown
shutdown's picture

The best part about buying gold and silver is that the very worst thing that can happen is that everything will be fine. (Hey, it's a joke)

Fri, 01/17/2014 - 00:01 | 4340042 jomama
jomama's picture

I'm just going to leave this here.

Fri, 01/17/2014 - 00:50 | 4340109 buyingsterling
buyingsterling's picture

Loved it. When you take a good hard look at him, you can see he's a badass.

Fri, 01/17/2014 - 08:26 | 4340361 fijisailor
fijisailor's picture

He looks stuffed to me.

Fri, 01/17/2014 - 00:10 | 4340057 IridiumRebel
IridiumRebel's picture

Shut up and stack.

Fri, 01/17/2014 - 00:16 | 4340065 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1 for concise

Fri, 01/17/2014 - 01:11 | 4340129 q99x2
q99x2's picture

Since I've been using Bitcoin I fail to understand why anyone would want Gold other than for manufacturing and jewelry.

Bitcoin is a currency and Gold is a commodity so if the banking system fails why wouldn't you want something that you can buy stuff with?

Fri, 01/17/2014 - 01:43 | 4340160 satoshi101
satoshi101's picture

One man in the UKRAINE controls over 70% of all Bit Coin Mining Pools world wide.

That man can do anything he wishes, he can pull the "BIT COIN KILL SWITCH" Should he Wish

One Man can evaporate all BITCOIN on earth in a few minutes,

Nobody can touch your GOLD if its in your possession.


I know its fucking dumb to have to say this, but these bit-tards are fucking DUMB.

Fri, 01/17/2014 - 04:36 | 4340255 Ghordius
Ghordius's picture

the difference between a currency and a commodity is... price stability. ergo Bitcoin is currently a commodity. just saying, you can still buy things with a commodity

Fri, 01/17/2014 - 07:51 | 4340340 geewhiz
geewhiz's picture

Both gold and bitcoin are money, i.e. specie. You have to understand the attributes that make an object become money, and tulips do not satisfy those attributes. Gold, silver and bitcoin are money, each with different strengths, eg. Bitcoin is the m.ost storeable and transportable and fungible.

In fact a nation could represent its precious metal store with a fixed quantity of a unique cybercurreny redeemable in the metal. The kleptocrats could steal the metal and the cybercurrency would still be money without the metal backing it because it would be in popular use as money and could not be counterfeited or destroyed.

Fri, 01/17/2014 - 10:36 | 4340696 MeelionDollerBogus
MeelionDollerBogus's picture

that's because you're an idiot.

#1 we need to manufacture things from gold & silver, for real.

#2 you need a grid. I'm 99% sure the grid will be gone. I'm 1% sure I can rebuild small grids myself for community use but it will mostly be wireless transmission of power generated from biodiesel generators.

Buttcoin requires a full global grid. That grid is going to be removed forever.

You believe that can't happen and that makes you a fool.

A currency can't ever, ever be built on a grid as a minimum requirement.

Bitcoin is not a currency. It's a ponzi-scheme using fiat dollars to get more fiat dollars via speculation. Bitcoin has no value at all as a currency.

Gold is money. In a banking system failure only gold and silver will be money, never bitcoin. Commodities are money. Binary digits are not money.

Fri, 01/17/2014 - 15:50 | 4341879 semperfi
semperfi's picture

my bet is bitcoin was either created by the bankster syndicate or now sponsored by them - perhaps all paper money will be replaced by bitcoin in the future so they can track and steal our wealth at will - unless your wealth is in gold/silver that you hold

Sat, 01/18/2014 - 03:16 | 4343452 AgentScruffy
AgentScruffy's picture

A lot of Bitcoin is in the hands of a small minority. That makes it easy for them to manipulate the price--and take profits and crash it.
I'm also not a fan of Bitcoin b/c at any moment the govt could shut it down. It's faith-based just like fiat currency.

"Just 47 people own 29% of all outstanding Bitcoins; 930 own 50%. Another 10,000 folks bring the total owned by the largest coin holders to roughly 75%,"

Fri, 01/17/2014 - 01:40 | 4340153 satoshi101
satoshi101's picture

GOLD is KING ... GOLD will be HERE for ever


*** For PAPER-PONZI GOLD, Yes dear the GAME is OVER

PAPER GOLD is dead

ETF/ETN GOLD is dead


For GOLD investment newsletter writers the game is over

Anybody selling anything other than 'gold in the hand' is dead.

If your selling GOLD at a "PREMIUM PRICE" your dead
If your selling ADDED VALUE GOLD your dead

Fri, 01/17/2014 - 09:17 | 4340434 JoBob
JoBob's picture

satoshi101: "You're" is a contraction of "You are", as in "You're selling gold."


"Your" is a possessive indicating ownership, as in "This is your gold.".

You cannot substitute the two. It is bad grammar, plain wrong, and irritating.

Stop irritating people who may otherwise care what you think.


Fri, 01/17/2014 - 02:17 | 4340187 satoshi101
satoshi101's picture


This entire OP-POST is based on "G-O-L-D", meaning FAKE GOLD either ETF or MINING STOCK GOLD ( GLD, GOLD ) ... ALL toilet Paper.

This entire article is about PAPER-PONZI GOLD.

When will ZH start differentiating "REAL FUCKING GOLD" that you can hold, from SHIT sold by Wall Street?


Yes ITS GAME-OVER for the Guy's who make a living HUSTLING FAKE PAPER GOLD PRODUCTS to idiots, the greatest MORON bought in 2011, and now there are NO MORE MORONS WITH MONEY LEFT TO BUY FAUX-GOLD.

Fri, 01/17/2014 - 02:20 | 4340189 ebworthen
ebworthen's picture

The same thing happened in the Great Depression.

Property and equities were overvalued with massive speculation.

When the SHTF the government intervened.  This time; instead of outright confiscation of tangibles; they robbed future generations with Trillions of QE and bailouts.

Of course they are smacking down precious metals as the world is pushed to digital only accounts and the elimination of cash so that everything is track-able, traceable, taxable, and confiscate-able.

They must crush any belief in the value of tangible precious metals so they can capture the working citizen population en mass.

The game of mass psychological and gradual theft of labor and assets of past, current, and future generations is afoot.

Fri, 01/17/2014 - 07:57 | 4340345 Sufiy
Sufiy's picture

Glenn Beck: Where Is German Gold?

 Glenn Beck is digging up the mystery of German Gold repatriation. With the reports that even small amount of the delivered Gold so far was melted beforehand we can be sure that there is no more original German Gold left. As we have discussed before, theGold smashing down has started with Venezuela's request for Gold to be returned back and last year Gold's bloodbath was assured with Germany seeking for its Gold to be returned as well.

Fri, 01/17/2014 - 08:52 | 4340390 UTICA CLUB XX PURE

I'm 55. What will the price of silver be in 15 years? What will it be worth when my kids are my age [40 years from now?] I'm betting it will be quite valuable in the long run...


Fri, 01/17/2014 - 10:52 | 4340755 Pesky Labrador
Pesky Labrador's picture

In 2003, a friend gifted me one silver bullion. Last year I found ZH and pulled out that silver round. He paid $6.75 for it ten years ago and at the time it was worth $23.00. That's when the light went on, the paper note lost its value in the past 10 years and the silver maintained its wealth.

There is no logical reason to keep fiat currency except for your monthly bills. Silver may not make you more wealth but it will not lose your wealth ither. 

Fri, 01/17/2014 - 08:56 | 4340397 Sufiy
Sufiy's picture

China Expands Gold Reserves to 2,710 Tons - Third Largest In The World 

Now we have the confirmation from China IMF reporting to the previous report from Bloomberg. China is very serious in accumulation Gold and latest reports from Germany about the Gold price manipulation are coming now with the record leverage at COMEX with 112 owners per each ounce of Gold!

Fri, 01/17/2014 - 10:31 | 4340678 MeelionDollerBogus
MeelionDollerBogus's picture

gold soars this morning, another 1100 pennies!

Do NOT follow this link or you will be banned from the site!