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Marc Faber Redux: "I Don't Trust Anyone... Hold Gold Outside The US"

Tyler Durden's picture




 

Sometimes it's worth remembering that while the demise of the status quo may take a while, there are actions one should be taking despite the sound and fury each and every day. As Marc Faber warned, "I don’t trust anyone." Simply put, Faber blasts, "the monetary policies as they are implemented by central banks around the world, are actually preventing the markets from clearing and [not allowing] the economy to truly improve." His recommendation, he'd "prefer investors hold physical gold in a safe deposit box, ideally outside the US," because "Fed policy will destroy the world."

Everyone will print money... (one of Faber's best from 2 years ago!! his reasoning remains impeccable)

And here recently:

  • CNBC: “Uh, so do you thus not trust US banks or US custodians? Do you think they might fail or abscond with the gold?”
  • Faber: “The US is a country that likes to create trouble, but they don’t like to clean up things.”


 

“I prefer if investors hold physical gold in a safe deposit box, ideally outside the US, in various locations... Switzerland, Singapore, Hong Kong, Australia, Canada... I think it’s important in today’s very uncertain world to diversify, not only the various asset classes... but also the custody of your assets should be in different jurisdictions.”

 

“We’ve now been five years into the bull market and the US economy bottomed out in June 2009. We already had a crack-up boom—not in the economy of the typical household, but in the economy of the super-well-to-do people, whose asset prices rose dramatically and as a result created a huge wealth inequality.”

 

“My view would be that we have already printed so much money, and to accelerate it will be bringing about numerous other problems, so my time frame is that the [bubble], maximum, will burst in three years’ time.”

Faber continues,

Once the collapse happens, the power of central banks will be curtailed greatly because people will realize who brought along first the Nasdaq bubble in 1999: The Federal Reserve. Who brought about the housing bubble between 2001 and 2007? The Federal Reserve. And who is bringing now along another great credit bubble and asset bubble? The Federal Reserve.”

Central Banks are preventing The Markets to clear and The Economy to truly improve (via King World News)

The monetary policies as they are implemented by central banks around the world, are actually preventing the markets to clear and the economy to truly improve. ...And there is wealth inequality to the extent that not the 1 percent but the 0.1 percent become immensely well-to-do because money printing helps the financial asset players and the real estate owners, and the majority becomes poorer.

 

The Fed has these statistics. They compile them themselves. In the U.S., since 2007 the majority of Americans in terms of wealth are poorer today by 40% than in 2007. But the 0.1% are far wealthier. That is the problem. When the wealth inequality increases at the expense of the majority, then you get Hollande in France who says, ‘If things go bad for you, if you are suffering, it’s all the fault of these rich people that abuse the system.’

 

The rich did not abuse the system. They behaved in a capitalistic way. The Fed abused the system by printing and printing and printing, and that created this situation where the cost of living of the lower income recipients is going up strongly because of energy costs, transportation costs, healthcare costs and food costs.

 

But the rich do not suffer because for them food is a tiny portion of their expenditures. It’s nothing compared to the expenditure of the private jet, so they don’t care about that. But if you have a household income of $40,000, and you spend say 30% to 40% on food and energy and transportation every year, it matters whether these prices are going up or not. So for the majority of people life has become harder, whereas for the .01 percent life has become a paradise. But that will change one day in my view.

 

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Wed, 05/07/2014 - 21:21 | 4738186 Slave
Slave's picture

The only place I'll be holding gold is in my gun safe.

Wed, 05/07/2014 - 21:31 | 4738226 zaphod
zaphod's picture

Your gun safe is known through registration lists and likely to be searched in a SHTF moment, that's the last place I'd put it. 

Bury your gold 6 feet underground in a remote spot known only to you and your wife and maybe kids. The location is a brain wallet and that is the safest place for anything.

Wed, 05/07/2014 - 21:36 | 4738234 Grande Tetons
Grande Tetons's picture

My mom hid hers underneath the bible that was next to her bed in plain view. 

Nobody will look there, she said. 

She had a point. 

Wed, 05/07/2014 - 21:46 | 4738257 Say What Again
Say What Again's picture

I love this quote by Faber;

.

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part."
Wed, 05/07/2014 - 22:01 | 4738292 lickspitler
lickspitler's picture

The Ultimate Collection of broken records.

Faber, Sprott, Turd Ferg,Sinclair, Eric King,Celente,Pento,Turk,Fleckenstien,

Featuring such hits as: Resets-a-comin,   Don't touch my Gold ,  We been fucked by the fed,  The DOW is a lie. and the NSA is in my ureathra.

 

Good luck with that. 

Wed, 05/07/2014 - 22:27 | 4738382 Wahooo
Wahooo's picture

Nailed it. They're like old cars or trucks you hardly ever use - you start them every so often just to,keep them running.

Wed, 05/07/2014 - 23:56 | 4738632 Big Slick
Big Slick's picture

Macro-economists like Faber have correctly predicted 8 out of the past 3 economic crises.

Thu, 05/08/2014 - 00:07 | 4738656 old naughty
old naughty's picture

Okkkk, one for the road !

Thu, 05/08/2014 - 00:22 | 4738665 Soul Glow
Soul Glow's picture

Safe deposit boxes?  I'll stick with a coffee can under the sink.

Thu, 05/08/2014 - 05:15 | 4738926 negative rates
negative rates's picture

I agree with the Fed statement, but rather than move money around I would abolish the Fed.

Thu, 05/08/2014 - 08:23 | 4739199 N2OJoe
N2OJoe's picture

I'll stick with a false PVC pipe in an attic or basement

Or a false metal HVAC duct

Or a false electric outlet granting access to the space between wall studs

Or a false septic pipe

Or a rusted out old car

Or an old unused heating oil tank

Or in/buried under a rusted out old car

Or inside the bead of a junk wheel with a tire

Or buried under a compost pile

So many possibilities if you use your imagination for anything invonvinient, innocuous, or disgusting to check, move or sift through. Also greater distance from a structure or manmade landmark makes for a less detectable undergrounde cache.

Wed, 05/07/2014 - 22:56 | 4738482 FreedomCostsaBu...
FreedomCostsaBuck-o-Five's picture

you forgot Graham Summers...

Thu, 05/08/2014 - 00:05 | 4738653 bunnyswanson
bunnyswanson's picture

Here is the new reality...working 60 hours a week at a job you've been doing for 30 years and making half of the income you made 10 years ago, with no benefits, no overtime, no retirement...in fact, independent contractor status with 14% off the top fo social security taxes.

Mortgage due on 1....late on 16th...on 7th (payday), I make my payment and 30 minutes later, Chase bank is calling my up asking for my payment....never in 15 years has this happened.

Just imagine:  The bank no longer accepts US dollars for payment of bills...JUST IMAGINE WHT THE FUCK THAT WOULD MEAN.L

 

Thu, 05/08/2014 - 00:33 | 4738696 BeanusCountus
BeanusCountus's picture

You are wrong. My bet is you have never studied history. Or economics. Or psychology. Or anything. Perhaps you believe in the new modern thinking that debt doesn't matter, people will react in a rational way and the control of the dissemination of information can prevent chaos forever. I beg to differ. The masses are a mob. And a dumb one at that. Plain and simple. The mob will move when their "stuff" is taken away. And there is no way the western world can ever pay for that "stuff" that the mob has become accustomed to. If you would ever listen to the message of those you dismiss so quickly, you would understand that its hard to predict the "when", but the "if" is not even a question.

Thu, 05/08/2014 - 01:08 | 4738736 WTF_247
WTF_247's picture

Do you actually think the status-quo is sustainable?  Meaning the US can borrow 5-10%% of GDP indefineately (and increasing each year to pay former debt owed)?

If so then why the fuck does anyone pay taxes if the govt can just borrow the money with no consequence?  Why should anyone work - just print and give it to me already.  Why even bother with all the crap the IRS gives people - eliminate it.

You already know the answer - handing out free money to anyone who wants it makes money worthless for trade.  The US and other countries are going about the same mission at a snails pace.  They have all colluded together to devalue at the same rate.

If England, France, Italy, Canada, US, Germany and other major FX currencies ALL devalue by printing at about the same rate, the FX cross rates stay the same.  That makes stupid people (and the media) think that everything is fine.  Its a race toward 0 but the cross rate remains the same.  Until it does not.

The media (and even broker/dealers to the public) are conditioned to report spikes up or down in FX.  Govts are way, way ahead of this.  Devalue equally and nothing appears to be happening.  It takes a long time before the results actually manefest.

As with any bubble (aka .com, and many others) - calling the top is pointless.  Irrationality can last longer than you can remain solvent.  However - it can and will revert.  Faber is right on his analysis just wrong on the timing.  It is very possible that some uknown event (massive technological change) will change/spark the economies of the globe in the right direction - only time will tell.

Wed, 05/07/2014 - 22:41 | 4738429 naughtius maximus
naughtius maximus's picture

 If we spend it on gasoline it goes to the Arabs. 

 

You mean the mexicans and Canadians

Wed, 05/07/2014 - 23:01 | 4738493 TruthTalker
TruthTalker's picture

Thank you I needed a good laugh!

Thu, 05/08/2014 - 00:16 | 4738667 BeanusCountus
BeanusCountus's picture

Classic. Nothing else to say.

Thu, 05/08/2014 - 00:28 | 4738687 intric8
intric8's picture

Faber's a riot. Try getting your physical gold back into the u.s. If such a scary crisis hit. America would declare gold contraband. It would be confiscated at customs. Some peeps dont realize it was once actually illegal to personally own gold in america.

Stock up on ammo. At some future time it might be worth its weight in gold

Thu, 05/08/2014 - 01:51 | 4738785 HardAssets
HardAssets's picture

Who knows what's gonna happen in the future ?  I sure don't.

Maybe its good to spread your bets around as much as possible; I can see that.  But there are problems with the 'store your gold overseas' meme also.  What if they grab your gold as you try to bring it back into the country. What if they grab you if you try to leave the country to get it. What if they declare gold a 'strategic asset of critical national security importance and seize those nice big fat vaults overseas (but leave a nice 'I.O.U.' of course).

There are no 100% guarantees on anything in this world.

Thu, 05/08/2014 - 08:34 | 4739163 free_lunch
free_lunch's picture

"There are no 100% guarantees on anything in this world."

 

- You will pay taxes

- You will die

- Politicians will be corrupt

- Money devalues

- Bubbles will implode

- Most people are easy to fool

- Free thinkers with real analytical insight will always be scarce (and be ignored)

- People NEED to be ruled (the alternative is chaos)

- The population numbers have to be reduced or at least contained at present level(pray it will be through birth control)

- Real democracy sounds well but is no solution (talk with average people on the street and imagine they got to decide policy(most can't even point out Germany on a map, or have no knowledge of concepts like exponential growth) Real democracy with voting rights linked to IQ- and personality- test could be worth a thought?

- Things will get much worse before there is any hope for improvement

- If money is all you care about, your life is worthless

- ..

 

Joe Rogan - Devolution Of Stupid People: http://www.youtube.com/watch?v=Sf8R5ZlDiJg

 

Idiocracy: http://www.youtube.com/watch?v=icmRCixQrx8

 

The Most IMPORTANT Video You'll Ever See (exponential growth): http://www.youtube.com/watch?v=u5iFESMAU58

 

 

World population growth:  http://www.susps.org/overview/numbers.html

 

Thu, 05/08/2014 - 06:45 | 4738975 stocktivity
stocktivity's picture

...but the prostitutes will spend it at Walmart.

Wed, 05/07/2014 - 22:15 | 4738335 Robinhood
Robinhood's picture

I suggest buying guns and ammo to defend your property. Stand and fight for your freedom. Molon Labe muther fuckers. Is this fight club or pussy out, run and hide cunt club? 

Thu, 05/08/2014 - 02:27 | 4738810 bunnyswanson
bunnyswanson's picture

Cities, small and large, will see the police departments collapse under lawsuits from the too numerous to count police brutality lawsuits (last one is a teen who died after having his throat sliced open by a cop searching for "swallowed" drugs.

 

then, it's off to eh FEMA camps..or more precisely Find and Eliminate Malcontent Americans

 

http://www.secretsofthefed.com/teen-dead-alabama-police-cut-throat-open-...

 

 

"In an effort to retrieve the alleged bag, the lawsuit says police had to shove a sharp object into the teenagers throat. Lawyers for the Smiths say drugs were never found in his throat or stomach.

The autopsy report confirms this, stating that there was no indication of anything unusual found in the teens body."

The autopsy goes on to say:

“Because of the circumstances of this event, it is difficult to discern if the decedent died from a drug overdose or an asphyxia event exacerbated by either the occlusion of the airway by the foreign object, a possible vascular occlusion associated with the neck restraint, or from a combination of all the events that transpired during this incident.

Thu, 05/08/2014 - 02:41 | 4738826 ebear
ebear's picture

Buried deep in the New Mexico desert, with the GPS coordinates on a lottery ticket pinned to your fridge.

Wed, 05/07/2014 - 21:37 | 4738237 Long-John-Silver
Long-John-Silver's picture

I keep my gold and silver safe in boating accident sites.

Wed, 05/07/2014 - 21:44 | 4738252 OC Sure
OC Sure's picture

LOL!

Wed, 05/07/2014 - 22:00 | 4738288 Anusocracy
Anusocracy's picture

I keep my gold in my teef.

Thu, 05/08/2014 - 00:11 | 4738661 TheAnswerIs42
TheAnswerIs42's picture

We have ways of recovering that...

Wed, 05/07/2014 - 21:49 | 4738261 james.connolly
james.connolly's picture

This is good advice, my only caveat is that when you have to run away from the USA, you have no idea how many years before you can return safely to get your gold back.

>>>

I advocate burying a small percentage remote from your home,

But you need to keep the majority of your GOLD in a safe BANK, there are many 'registered gold' places in ASIA, where family's have kept GOLD safely for century's.

Go travel and find these places and then you never have to worry about your gold.

In ASIA its always been the case that GOLD is privacy, and nobody tells the GUBMINT about your GOLD.

In the USA they have conditioned you that you have no secrets, but in ASIA it really is this way, your GOLD is nobody's fucking business.

Once you have your wealth secure, you can roam the world as a poor person and enjoy life, without fear of theft.

Sit in the USA, and your just waiting for a knock&talk, they will beat your children until you tell them where the gold is, and you EVER bought GOLD in the USA they know, just like if your EVER BOUGHT a GUN, they know.

 

Wed, 05/07/2014 - 23:32 | 4738587 spine001
spine001's picture

Just consider that if TSHTF the airline industry will be one of the first ones to go.

Thu, 05/08/2014 - 01:34 | 4738765 agent default
agent default's picture

With FATCA in place any gold held with a bank or any other financial institution is reported to the US government.  You have to be completely out of the banking system.

Thu, 05/08/2014 - 04:46 | 4738908 Fred C Dobbs
Fred C Dobbs's picture

Gold at this time held outside the USA does not have to be declared under FATCA.  The following is from Arthur Bell CPA website.

quote

For instance, gold held in a safety deposit box should not be considered an SFFA since safety deposit boxes typically are not financial accounts for FATCA purposes. However, gold held in a custodial account maintained by an FFI would be considered an SFFA. 

unquote

Thu, 05/08/2014 - 05:45 | 4738942 james.connolly
james.connolly's picture

Google "Black listed banks"

These are banks that told FATCA/IRS/USA to FUCK-OFF,

There are many,

The IRS doesn't control the world, except in your own mind.

 

Thu, 05/08/2014 - 10:52 | 4739746 agent default
agent default's picture

Can you mention some?  My search came up with nothing

 

Wed, 05/07/2014 - 23:34 | 4738589 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

zaphod

The risk is real that you may literally lose it if you bury your gold (trust me on that, at least my loss was small...).  Divide your Au up into two or more lots, bury some if you like, hide the rest, give some to any kids or grandkids when they are ready.   Overseas if you can, although that was much easier a few years ago.

:)

Another alternative re overseas is to loan money to someone you trust and/or have other quiet assets "over there".

And of course, Bitcoin!  There is nothing wrong with having 1% in BTC.

Thu, 05/08/2014 - 05:00 | 4738917 Bernoulli
Bernoulli's picture

100% agree, but I would reduce the people who know it to maximum +1 (maybe not kids, never know how "long term" they think) and also divide the gold up and bury it in two remote underground spots.

Wed, 05/07/2014 - 21:23 | 4738196 fonzannoon
fonzannoon's picture

"best of" tonight? Tyler must have a hot date! Go get em Tyler!

Wed, 05/07/2014 - 21:30 | 4738220 Bear
Bear's picture

There is no place to hide on the globe, gold will be under attack (and confiscation) by every central bank on the planet. It's an easy call for gov to make ... give up your gold at a 'fair' price to save the nation, it's your patriotic duty.

I think it will be part of the Gold Wars as a means to strip the last vestige of wealth from the people before they declare mission accomplished with a Global Fiat Currency.

Think about it. Who would stop them?

Wed, 05/07/2014 - 21:31 | 4738227 Tinky
Tinky's picture

Gold will be under attack by the PBOC? Really?

Thu, 05/08/2014 - 08:43 | 4739251 free_lunch
free_lunch's picture

What about coffee, diamonds, copper, platinum, cigarettes, liquor and other alternatives that are not in risk of confiscation..?

Wed, 05/07/2014 - 21:30 | 4738223 peter4805
peter4805's picture

Bad advice from Faber. If you can't touch your gold you don't own it.

Wed, 05/07/2014 - 21:43 | 4738250 james.connolly
james.connolly's picture

Good advice I just wrote this a few minutes ago in response to Fred, I think only the BITCOIN fuckheads think this way,

>>>

If you have GOLD in your posession, then they can take your gold,

Malaysia, Singapore, and Hong Kong,; all can buy 'registered' GOLD, and keep it safe, keep it secret, and all you have to do is get off your lazy ass and go travel and take care of business.

The problem is that UNICORN's don't have any fucking money,.. so its a lame topic on this forum.

Thu, 05/08/2014 - 01:17 | 4738744 WTF_247
WTF_247's picture

Bullshit.  Until the Fedocrats in that country declare an "emergency" and then confiscate.  I can assure you, almost 100%, that it will be far more palitable for confiscation of "foreign" assets first rather than national.  The people of that country will support it almost 10:1.  Foreigners will be blamed for the ilks that plague the nation.  You do not think if the "borrow and spend" model of global prosperity hits the fan that the US will not be blamed for all of it??

You are  making a BIG asumption about future politics and that the US and its citizens will always be viewed in a favorable status abroad.  Based on history and the shifts of power over time this will not always be the case.  Tomorrow you are fine.  10 years from now, who knows.

 It always starts that way. I would NOT keep anything in a foreign bank that I would not mind losing.

Thu, 05/08/2014 - 05:25 | 4738931 Winston Churchill
Winston Churchill's picture

As a Switzer, fine for him.
Americans generally will be held accountable for the ravages
of Uncle Scam in a SHTF situation.
Fair or not, that gold will be taken for reparations, count
on it.

Thu, 05/08/2014 - 05:41 | 4738936 james.connolly
james.connolly's picture

Not many people understand this, that this time the USA ain't going to come out on top, and that the world KNOWS about MH-370, they know about the 100 millions corpses left aside by the USD 'reserve currency' adventure.

I completely agree, they will come to the USA like post-civil war and carpet bag everything, and they will take all USA gold that wasn't already stolen.

Then they will take every surviving USA citizen and rub his/her nose IN the shit of their making ( death ), not unlike how germans were forced to go see the death-camps.

It's coming, like it or not.

Nobody cares about the 1% whining, or how your not part of the PTB, your an 'american' you voted for the bitches and you consumed 'cheap gas' and enjoyed the rape&pillage of the world for 100 years.

If your still in the USA when they come, you will KNOW their PAIN.

Thu, 05/08/2014 - 10:00 | 4739528 dizzzave
dizzzave's picture

When it really comes down to it, if shit's fucked, you're fucked. No amount of gold or lead or non-hybrid seeds is going to change that.

Wed, 05/07/2014 - 21:43 | 4738251 eatthebanksters
eatthebanksters's picture

Even if you can touch it you may not own it....I can touch my balls, but I don't own them...

Wed, 05/07/2014 - 21:52 | 4738271 Global Hunter
Global Hunter's picture

so who owns your balls then? 

Debated whether I wanted to really post this question or find out the answer but thought to myself, what the fuck I am sure I am never going to ask that question ever again so what the hell.

Wed, 05/07/2014 - 21:53 | 4738275 Grande Tetons
Grande Tetons's picture

I think nutsack confiscation is way off in the distance. You should be OK. 

Wed, 05/07/2014 - 22:49 | 4738460 delacroix
delacroix's picture

they already got my foreskin

Wed, 05/07/2014 - 23:16 | 4738539 Keyser
Keyser's picture

Married with children, right? 

 

Wed, 05/07/2014 - 23:27 | 4738569 Harbanger
Harbanger's picture

The world is upside down for now.  But as sure as the sun will rise again, we will understand the importance of our father.

Thu, 05/08/2014 - 00:25 | 4738683 DoChenRollingBearing
DoChenRollingBearing's picture

And Our Father as well...

+ a big ONE

Thu, 05/08/2014 - 01:18 | 4738746 WTF_247
WTF_247's picture

Of course you don't.

They are in your wifes purse.

Wed, 05/07/2014 - 21:44 | 4738255 Kreditanstalt
Kreditanstalt's picture

I'd think a safety deposit box in Singapore represents about as low a counterparty risk as is possible to imagine.  Certainly a good deal lower than even physically holding one's own gold in the U.S., where the U.S. government is in charge...

Wed, 05/07/2014 - 21:55 | 4738279 james.connolly
james.connolly's picture

The problem is  if you end up in say Africa, how do you get that GOLD, .. I think today with COMMUNICATION's what it is, you can find a trusted party in SINGAPORE that has been in business 100's of years stroring MAFIA GOLD,... and they know how  to take care.

The problem with safety deposit boxes in ASIA they get ripped off all the time by EMPLOYEES, ... all the fucking time.

Find a trusted party ( easy if you get off your ass and travel ),and meet face to face, setup an account, and then you can travel the world and sell your gold electronically, and have the money transferred to account should you need your money for living expense.

The USA is full of assholes and crooks, but in ASIA party's have been taking care of GOLD forever, and in ASIA if you rip people off that company is dead,... no fucking compare to the way assholes do business in the USA.

>>>

Faber is just saying DON'T keep your GOLD in the USA, and fuck yes,... I would go further, don't have ANY fucking ASSET in the USA, not even a fucking HOUSE, in the future any and all assets will be taxed to INFINITY.

 

Wed, 05/07/2014 - 21:51 | 4738245 Kreditanstalt
Kreditanstalt's picture

(First video above doesn't work.)

Half an hour ago, gold LOOKED like it was on its way to a very modest recovery at nearly US$1293 and then, as usual, came sudden and completely counterintuitive waves of (almost certainly paper) selling that took it back to US$1288.

They say the markets are "rigged", meaning that cheating is going on.  But it isn't.   The STRUCTURE of the markets themselves ~ allowing naked shorts, permitting the Comex to be a major price-setter for the physical metal, allowing unlimited puts, calls, & options ~ serves to legitimise just this kind of 'lawful' manipulation and game-playing. 

All the "players" like it just this way.

And don't look to government to change that structure: they're complicit in it.

Wed, 05/07/2014 - 22:18 | 4738344 RaceToTheBottom
RaceToTheBottom's picture

Fiat money has been, is , and will always be, in a war with Gold/Silver.

The FED is not just complicit, they are designing and engineering the war

Wed, 05/07/2014 - 21:45 | 4738256 10mm
10mm's picture

He lost me with "Safety Deposit Box". He's out of his tits or just plain losing it.

Wed, 05/07/2014 - 21:49 | 4738262 Tinky
Tinky's picture

Neither. He's not using it literally as in "in a bank". In fact, he has made it clear many times that it should be outside of the banking system. He essentially meant in an independent vault.

Wed, 05/07/2014 - 21:53 | 4738267 Dr. Engali
Dr. Engali's picture

How in the hell are we supposed to hold our gold in a safety deposit box abroad when .gov is forcing everybody to sign agreements about reporting American citizen's overseas accounts? Any gold that is held in another country will be disappeared like flight 370. I'll take my chances here at home where my gold is backed by something....... lead.

Wed, 05/07/2014 - 21:56 | 4738276 Kreditanstalt
Kreditanstalt's picture

I don't think, for you Americans, it is necessary to disclose under FATCA the existence of physical gold in a safety deposit box.  They might not let you rent a box, though...

Wed, 05/07/2014 - 21:58 | 4738284 Tinky
Tinky's picture

Correct – it is not necessary to report metal holdings yet, as long as it is kept outside of the banking system.

Wed, 05/07/2014 - 22:00 | 4738287 Kreditanstalt
Kreditanstalt's picture

Yeah...YET...

Wed, 05/07/2014 - 22:10 | 4738314 nmewn
nmewn's picture

Having a law in place has never stopped anyone from doing what they wanted to do...for whatever reason, good or bad. Having a law in place has also given cover to a lot of evil...witness Hitler, Mao, Pol Pot, Stalin (yes Blankfein & Warren too...lol) etc.

Law is a contrivance of justice for "the masters"...it really only matters if it applies equally to all, including them.

I will not submit to this peverse interpretation of "law"...ever.

Wed, 05/07/2014 - 23:23 | 4738566 Keyser
Keyser's picture

Correct – it is not necessary to report metal holdings yet, as long as it is kept outside of the banking system.

You do if the metals are in coinage... You do not have to report if in bullion and only if below certain $$$ limits, varying based on marital status... 


Wed, 05/07/2014 - 23:48 | 4738618 Tinky
Tinky's picture

Outside of the U.S.? Can you provide a linked reference?

Wed, 05/07/2014 - 21:58 | 4738286 fonzannoon
fonzannoon's picture

One of my neighbors set themselves up with solar panels and a greenhouse etc. and we were together at some neighbor dinner not too long ago. They were bragging to all us other neighbors that they were "off the grid". This is in Nassau fucking county where they build houses on top of each other. So I half joked "I hope you own a gun". They looked at me and said without any trace of amusement "um...no...we don't believe in guns". I laughed like a mainiac and said "good, because I do, and if we ever end up in a scenario where your house is more valuable, I will have let you do all the work setting it up, and I will just fucking take it".

My wife tells me not to talk to the neighbors anymore.

Wed, 05/07/2014 - 22:21 | 4738357 RaceToTheBottom
RaceToTheBottom's picture

"

My wife tells me not to talk to the neighbors anymore."

I don't think that you need to worry about that.  You will not be invited to any dinners anymore.

 

Funny story though.

Thu, 05/08/2014 - 00:55 | 4738717 Boxed Merlot
Boxed Merlot's picture

Funny story though...

 

 

Who knows?  Might've made a couple of new believers in the process.

Wed, 05/07/2014 - 22:24 | 4738364 Dr. Engali
Dr. Engali's picture

Lol.. People like that crack me up. By the way, how did your wife's inflation presentation go with her boss? Are you sleeping on the couch or is everything good?

Wed, 05/07/2014 - 22:33 | 4738404 fonzannoon
fonzannoon's picture

they went for it, I got real lucky. thanks for asking Doc.

Wed, 05/07/2014 - 22:50 | 4738463 F.A. Hayek
F.A. Hayek's picture

I read the original post and secretly hi-fived you, as I have done the same thing. If you don't ask the question, the answer will always be no.

Wed, 05/07/2014 - 22:57 | 4738483 fonzannoon
fonzannoon's picture

i appreciate that, and i think you are right. I believe that is why the answer was yes, everyone today is so scared shitless about everything, no one asks.

Wed, 05/07/2014 - 23:35 | 4738593 F.A. Hayek
F.A. Hayek's picture

You are exactly correct! Never let anyone keep you down, you need to fight every inch of the way for yourself and your family.

Thu, 05/08/2014 - 02:59 | 4738834 Serenity Now
Serenity Now's picture

fonz,

LOL!  That's a funny story.  I don't think you have to worry about getting invited to another party.  

Wed, 05/07/2014 - 21:52 | 4738272 FieldingMellish
FieldingMellish's picture

...and with this we have an excellent buying opportunity coming up... probably followed by many, many more buying opportunities...

It will be interesting to see if Goldman's $1050 prediction (actually expected by many goldbugs) comes true and, if so, if gold indeed stops falling there or continues on... and on.... and on....

Kill the Comex or the beast lives on.

Wed, 05/07/2014 - 21:53 | 4738274 navy62802
navy62802's picture

Fortunately, US citizens do not have to register purchases of gold, as they do weapons purchases in many states. On a side note, eventually gold purchases in the US will be viewed by the government as weapons purchases, as such purchases are a weapon against the established economic control mechanism.

The safest place for physical gold is within your personal purview. If you own physical gold, hide it. Disguise it. Truly secure storage of the commodity requires the inclusion of a third party unless you are already fabulously wealthy. Unless you are personally wealthy enough to afford a secure storage location (i.e. an armored safe of steel rebar re-inforced concrete) and the security forces necessary to guard such a facility, you are better served by simply disguising your gold stash.

Personally, I feel that burying a gold stash in a remote location is a good idea. Such a location should be marked by land navigational aids and not by GPS, as GPS will become a weapon against you when the shit hits the fan. And in a worst case scenario, GPS will not even be available at all ... in which case, GPS coordinates will be essentially useless.

Wed, 05/07/2014 - 22:25 | 4738372 notadouche
notadouche's picture

"In Buxton, Maine you happen along an empty field with a giant tree there will be a rock that has no earthly reason for being there.  Dig and you will find...."    You mean something like that?  Naturally there is probably a Walmart there now and the tree, rock and stash will be long gone.

Wed, 05/07/2014 - 22:40 | 4738425 navy62802
navy62802's picture

Something like that.

Thu, 05/08/2014 - 02:53 | 4738828 ebear
ebear's picture

 "Naturally there is probably a Walmart there now and the tree, rock and stash will be long gone."

or an open pit mine 3 miles wide and 1/2 mile deep...heh.

Wed, 05/07/2014 - 21:54 | 4738278 Freebird
Freebird's picture

If she breaks 1285 we are for sure into a downdraft for now

Wed, 05/07/2014 - 22:02 | 4738285 Kreditanstalt
Kreditanstalt's picture

Er...WHY? 

You sound like the technicians and chart-watchers who, when gold hits $1270 will call for $1190; then when it reaches that they predict $1050; later they call for $950 and so on...always uni-directionally.

WAVES of buying might commence at $1285 and the next stop may be $1350.(?)  Who knows?  It's only paper anyway...

One day they'll need real metal.

Wed, 05/07/2014 - 22:11 | 4738320 Freebird
Freebird's picture

The technicals now & again work...its looking very wobbly after a seven day run up. Sure not to rely on TA ..imho we go down if we break here - whether its your supprt levels who knows...call it a gut feel & 8 years of investment. At the end of the day, as you say who knows..buy me a sandwich if I am on the money ; )

 

 

Wed, 05/07/2014 - 22:21 | 4738350 Kreditanstalt
Kreditanstalt's picture

Technicals sure as hell haven't worked too well recently in the rigged and manipulated markets we now have.

How many "Hindenburg Omens" have come and gone?  How many moving averages have been violated yet nothing happens?

This is not anywhere close to a free market.

Thu, 05/08/2014 - 00:00 | 4738641 IridiumRebel
IridiumRebel's picture

It's a fucking computer program.

Wed, 05/07/2014 - 21:56 | 4738281 NFX
NFX's picture

its all fine and dandy to say put your gold in a safe deposit box in one of the named countries. What happens when the US crashes and burns and you have absolutely NO leverage anymore with those countries. They will start thinking, hmmm maybe we can just open those boxes and take the goodies.  what will you do when you are not backed by a viable governemt anymore? Like most ZH'ers say that the best place is in the ground in your immediate vicinity. remember if the US gov knows you have purchased some gold it had better be buried deeply to protect from gov metal detectors. also if more people know where your gold is buried what is to prevent them from showing up and threatening to shoot your kids if you don't tell them where it is. don't think it will happen? What if you are branded a terrorist? anything goes...

Wed, 05/07/2014 - 21:58 | 4738282 james.connolly
james.connolly's picture

Jimmy roger's left the USA years ago, because they stole $300 Milllion USD from his account,

He went to SINGAPORE, where shit like this would never happen,....cuz if you stole a man's money in SINAPORE they would kill you and your family.

In the USA when jimmy went to the cop's the cop's said "What do you want us to do?"

Jimmy left, said "FUCK IT"

Faber is right,... keeping any asset in the USA is fucking STUPID.

Wed, 05/07/2014 - 22:02 | 4738294 DollarMenu
DollarMenu's picture

He says-

 

“I prefer if investors hold physical gold in a safe deposit box, ideally outside the US, in various locations... Switzerland, Singapore, Hong Kong, Australia, Canada..

Maybe he is one of those 0.1%  In any case, his advice is no good to me.

After buying tickets to all those places, I've got nothing left for PMs.

Guess I'll have to stick to the neighborhood, and our various p-patch gardens and chickens, and hope for the best.

 

Wed, 05/07/2014 - 23:29 | 4738578 Keyser
Keyser's picture

Shhh... Here's a tip, don't tell anyone...

www.goldmoney.com

 

Wed, 05/07/2014 - 22:04 | 4738297 Bemused Observer
Bemused Observer's picture

Hold it outside the US? How much gold do you fucking HAVE? Most of us can walk our stash across the border stuffed into various body cavities...

Wed, 05/07/2014 - 22:13 | 4738309 Grande Tetons
Grande Tetons's picture

Have you ever tried shoving an ounce of Gold up your ass? It smarts. 

In all seriousness...he is talking about the kilo plus crowd for gold or the stacker club for silver. 

https://www.youtube.com/watch?v=kngBtoylIVM

Wed, 05/07/2014 - 22:16 | 4738339 james.connolly
james.connolly's picture

Exactly he's talking to 0.0001% of the ZH audience, you wonder why ZH posts an article that is out of league with its readers?

ZH should be posting articles about food-stamps, or ebay trading card's and how to hide them up the arse.

 

Wed, 05/07/2014 - 22:20 | 4738352 Wahooo
Wahooo's picture

I'd like more articles about investing in Franklin Mint commemoratives.

Wed, 05/07/2014 - 22:25 | 4738373 Grande Tetons
Grande Tetons's picture

No salesman will call. This is a special offer that will be offered for a limited time only. We repeat...only 10 coins per caller. 

Thu, 05/08/2014 - 10:24 | 4739649 Bemused Observer
Bemused Observer's picture

I'd like to see more articles on hiding things up your ass...

Wed, 05/07/2014 - 22:13 | 4738329 james.connolly
james.connolly's picture

Pass any border worldwide with only the clothes on your back; they will take anything they find.

Random anal cavity searches are becoming common, and strip searches are routine crossing USA borders.

I don't even carry a phone or computer when I cross the border, ... and especially I don't carry 'wealth', JUST PLAIN FUCKING DUMB.

Your baggage? Great idea also, ... they'll rob you blind.

I have seen guy's in customs get nailed for one gold coin, don't  assume they don't scan gold, they do, and gold scanners have been around forever.

ALQUEDA(CIA) used to put diamonds up their ASS to move money,.. but now that hard with anal searching.

Best bet is secret numbered accounts, that way the NSA/CIA never see's your name and for god's sake don't use a TELEPHONE, and if you do go to ASIA and buy a handful of SIM's for  a buck each,... and never use the same phone number more than a few days in a row.

Buy a few phones too for $6 each... and keep them around for your SIM's.

In the USA all SIM's are tied to you registered,... bullshit. In ASIA everything is anonymous.

Fuck I bought phone in the USA last time there, a blackberry the fucking SIM was welded into the FRAME. FUCK THE USA.

Thu, 05/08/2014 - 10:23 | 4739640 Bemused Observer
Bemused Observer's picture

Not for nothing, but if things get so bad they are doing anal checks for gold, then a numbered account isn't going to help anyone...

Wed, 05/07/2014 - 22:06 | 4738301 james.connolly
james.connolly's picture

This article is terrible, because the reality is while FABER offer's good advice 90% of the UNICORN's are FSA, and 99% live paycheck to paycheck, or pension to pension,

I see so much bullshit in the comments, assertions by people who have never traveled.

Faber lives in THAILAND a nation where everybody has GOLD, and services are everywhere that you can trust to take care of GOLD.

For the sake of sanity, those who have no money, why even participate in this debate?

For those with MONEY, if you still have ANY money ( wealth ) in the USA, then why in the fucking hell is it still there?

>>>

You have to ask why ZH posts articles like this? 99% of the audience doesn't travel, and you can't OPEN an account abroad unless you travel.

 

Wed, 05/07/2014 - 23:54 | 4738626 IridiumRebel
IridiumRebel's picture

You have to ask why ZH posts articles like this?

"FSA and 99% live paycheck to paycheck, or pension to pension,
99% of the audience doesn't travel, and you can't OPEN an account abroad unless you travel."

You answered your own question.

Thu, 05/08/2014 - 00:47 | 4738712 james.connolly
james.connolly's picture

So why does ZH post this? Just because it  say's 'FABER'?

This isnt' the first time ZH has posted this line of thinking, ... I think I have seen it ten times before here FABER telling people to get their 'wealth' out of the USA.

Fuck yes,... its coming, and they will go door to door, and take all, ...

But given that 99% here can't do what FABER advocateds because they're losers what's the fucking  point?

OH  I get it, ... ZH is telling other losers that the RICH and their 'wealth' is fleeing the USA,... yep and this has been going down for 30+ years ....

>>>

You had to get your money out before 2010, ... now its all watched game-over,... sorry to say.

 

Thu, 05/08/2014 - 05:09 | 4738922 Fred C Dobbs
Fred C Dobbs's picture

You can still take gold out of the USA you just need to declare it at US Customs prior to leaving.  That is for amounts above USD 10,000 and is the easy part.  The problem is when and where you land, do you declare it there.   

 

 

Wed, 05/07/2014 - 22:09 | 4738305 remain calm
remain calm's picture

I don't think the government will try and take gold from American citicens. It would be a very difficult task. The easieast thing for the government to do will be to take your savings and retirement accounts. The next thing they will do it institute a one time wealth tax, akin to a death tax but you are still alive.

Wed, 05/07/2014 - 22:20 | 4738354 Tinky
Tinky's picture

That's correct. They will not confiscate.

Wed, 05/07/2014 - 23:49 | 4738619 Chuck Knoblauch
Chuck Knoblauch's picture

They will confiscate.

They will make it illegal to own gold and silver in the US.

 

Thu, 05/08/2014 - 00:24 | 4738682 Libertarian777
Libertarian777's picture

but what would be the point, few US citizens own gold. What would they confiscate? In 1933 it was different, gold was money and everyone had some. Now who has gold. I know I don't own the stuff. Wouldn't touch it with a ten foot pole. It has no value. It just sits there unproductively. And I'm not Jewish, and its not 1939.

Thu, 05/08/2014 - 00:50 | 4738713 james.connolly
james.connolly's picture

Speak Up Hell, Run for you Life ...

In the USA today, it is 1939,

You didn't have to be Jewish to die in Germany, ...

First they came for the Socialists, and I did not speak out-- Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out-- Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out-- Because I was not a Jew.

Then they came for me--and there was no one left to speak for me.

Thu, 05/08/2014 - 00:58 | 4738722 Tinky
Tinky's picture

Nonsense.

It would be the least attractive option, because the amount of bullion in private hands in the U.S. is trivial relative to the wealth that can be skimmed much more easily, efficiently and safely through bail-ins, 401ks, taxes, etc. With regard to physical confiscation, it ain't gonna happen for the following reasons:

•  Logistical nightmare

•  Political nightmare (i.e. direct confiscation cannot be spun)

•  No chance of confiscating foreign-stored gold, of which there is plenty

•  Immeasurably easier and safer to tax profits from sales

•  High concentration of ownership amongst patrons of the very same politicians who make the rules; Cui bono?

 

Thu, 05/08/2014 - 06:55 | 4738991 Chuck Knoblauch
Chuck Knoblauch's picture

Why does the government keep a record of insignificant gold purchases?

Why do they need to know how much gold I may have locked away?

Thu, 05/08/2014 - 08:44 | 4739255 Tinky
Tinky's picture

Because you're a famous baseball player.

Wed, 05/07/2014 - 22:28 | 4738385 RaceToTheBottom
RaceToTheBottom's picture

I don't think that confiscation is their plan.  I think that windfall taxation is their plan.

Control the US selling sites for sales above a certain amount.

Sprinkle a bunch of new rules about non transportation of gold (outside the country).

And Bingo, mission accomplished

Thu, 05/08/2014 - 00:00 | 4738639 Aussiekiwi
Aussiekiwi's picture

Yes, they will just keep tightening the screws, higher food,gas,rent,Insurance,health and fees and taxes of all kinds until you have nothing left...then they will blame you for being poor.

Wed, 05/07/2014 - 22:34 | 4738406 Bill of Rights
Bill of Rights's picture

My ex wife is a Gold digger, please... take her.

Thu, 05/08/2014 - 00:16 | 4738669 IndyPat
IndyPat's picture

I keep the tungsten cored stuff in my safe next to the guns I don't mind parting with.

The rest of the goodies are elsewhere...but not fucking overseas.
Under the lake maybe...

Thu, 05/08/2014 - 00:51 | 4738715 tchild2
tchild2's picture

No thanks Faber. I am going to keep my gold right here where i control it, can access it, protect it, move it, or sell it conveniently.

Great advice. You would piss away ten thousand dollars each time you made a round trip to Singapore or Hong Kong in airfare, lodging, food, etc, not to mention the extreme hassle of trying to decide who you can trust in a foreign land, not speaking the language nor understanding the culture.

Right now, i can drive to the local B&M dealer, sell a couple of ounces for cash and no one reports anything. Total cost....about 15 min. Time and $2.00 in gas.

Thu, 05/08/2014 - 00:59 | 4738724 james.connolly
james.connolly's picture

The caveat is 'right now'

Smart men see the future, ... dumb men pretend that tomorrow will always be like today,

The entire point is that IT's COMING, and they will go door to door, and you will give it to them,...

Just like in IRAQ, ... the US enters the home and ask's one time, where are the GUN's, .. no response they grab a male child and crush a testical,... then they ask a 2nd time, .. some family's fail the 2nd and they smash the 2nd testical on that boy, then they grab another boy, but the 2nd boy 99.99% parents hand all guns and money over to the troops.

If you think this ain't coming to your home,your a fucking idiot.

FABER and ROGERS know this is coming.

First they came for the Socialists, and I did not speak out-- Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out-- Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out-- Because I was not a Jew.

Then they came for me--and there was no one left to speak for me.

Thu, 05/08/2014 - 02:31 | 4738814 SilverIsKing
SilverIsKing's picture

In the scenario you describe, it won't matter where you store your metal. One of your kids is ball less...unless you hand it over.

Perhaps handing over less than 100% might save a ball or two.

Thu, 05/08/2014 - 05:49 | 4738948 james.connolly
james.connolly's picture

In the middle-east when a son loses his ball's that FAMILY is finished,

I guess you all missed my POINT, the US-MIL hit's people where it hurts the worst.

HITLER had his troops have GERMAN-SHEHERDS RAPE children to get their parents to talk, and the dog's would go child-to-child, until somebody talked.

Given that these assholes who crush testicals have all come home to be cops and FEMA guard's, my guess is that those who stay in the USA are going to have a real education.

 

Thu, 05/08/2014 - 04:05 | 4738876 redwater
redwater's picture

I'm in both camps.

You need metal in your hands for trade.

Metals overseas for if you need to leave and start over - IMMEDIATELY - in another country. The idea is that you wouldn't be bringing it back to your home country. It's a contingency plan for getting the fuck outta dodge.

Say, Ukraine goes total clusterfuck. The Ukrainian with some metals in Singapore just needs to get on a plane to start his life over.

Or New York goes total tits up. EBT zombies eatin' people's faces in the streets. The man with metals overseas just needs to get on a plane.

Thu, 05/08/2014 - 00:55 | 4738718 james.connolly
james.connolly's picture

Why might ZH post this stuff about thoughts from all these RICH GUY's like FABER or ROGER's that choose to live in ASIA, rather than the west?

The recurring theme is "LIVE in the west they will rob you", ... yep both faber and rogers were robbed,...

Lot's of rich white guy's live in ASIA and they're happier than pig in shit,

Yet the majority of commenters here diss them, and suggest its better to DIE in  the USA, than sleep with a young woman in ASIA.

Me thinks that +90% of the commenters here are gubmint-trolls, for nobody who loves life, and had a choice would choose to live in a nazi prison, when you could go live in a country that is fun and free.

The fact that most of the commenters here DEFEND NAZI USA, is really interesting. Some kind of Stockholm Sydrome, they're so fucked by the USA they have to defend the reason they don't leave, ... sure they can't cuz they have no money, but the real reason is they fear travel, they fear the unknown, they fear everything in life,

So they wait for FEMA to come and get them at home, ...

the waiting game begins.

Thu, 05/08/2014 - 01:01 | 4738730 james.connolly
james.connolly's picture

My favorite quote in FABER's book "tomorrows gold", is when he say's

"IN ALL HUMAN HISTORY SMART MEN LEAVE A COUNTRY BEFORE THE CIVIL WAR BEGINS"

Only fucking morons' stay and fight in a civil war, ... funny that ZH never posts this quote, from FABER.

Thu, 05/08/2014 - 03:43 | 4738862 Zoomorph
Zoomorph's picture

Are you suggesting that "smart" people flip-flop and take the easiest route to financial success, rather than defending what they've established, like or believe in, because it might be more challenging or dangerous?

Money isn't the most important thing to everyone. Nor "happiness", "safety", or staying alive as long as is medically possible. In fact I think anyone who attributes much meaning to any of those is relatively "stupid".

Financial success is at best highly dependent on luck (nobody can know everything and hence nobody can predict the future or know how to best position themselves in the present). Hindsight is 20/20, of course.

Thu, 05/08/2014 - 06:29 | 4738968 AdvancingTime
AdvancingTime's picture

Along to go with the thumbs up is a, "Well said" for it is indeed a great quote.

Thu, 05/08/2014 - 01:23 | 4738748 Notsobadwlad
Notsobadwlad's picture

There is a strange and flawed underlying assumption here.

You cannot trust the Fed, but you can trust the bank that holds your gold in one of their safe deposit boxes. How odd.

We have been bought up in society to hold many illogical paradigms. My belief is that when push comes to shove ALL banks will claim that what is in their safe deposit boxes are unsecured loans to the bank, just like the fiat money that is on deposit there.

Thu, 05/08/2014 - 02:56 | 4738832 icanhasbailout
icanhasbailout's picture

Seems like everyone has already forgotten about DHS combing through bank safe deposit boxes. For your security, of course.

Thu, 05/08/2014 - 02:20 | 4738807 zerohedgejjxxzz12
zerohedgejjxxzz12's picture

just think for a moment, Is this wha the fed was trying to do all along, Make the super rich richer!

 Was this by design?

Are they truly foolish or was this their plan!

Thu, 05/08/2014 - 04:28 | 4738890 redwater
redwater's picture

What are some opinions about metals trusts?

Like if I were to open a brokerage account in my 401k and transfer a few percent over to a metals trust stock, like Sprott's (something redeemable in physical gold or silver).

Would this be similar to having some holdings in a Singapore vault?

The stocks, I figure I could dump, if I need to. The vault, there would be reoccuring storage fees.

thx

 

Thu, 05/08/2014 - 18:14 | 4741349 Bemused Observer
Bemused Observer's picture

It depends on what your reasons are for wanting gold. Is it to take advantage of price fluctuations, or make a 'killing' if the price spikes? Then you buy paper and use your judgement the same way you judge any other investment.

But if you are feeling uneasy about the financial system, and are seeking safety, then you want gold in your HAND. If things get unstable, there will BE no redeeming that paper for anything. If your insurance from system failure requires you make your claims to the failed system, that's not really going to be very helpful...

And I can't help but get an image of an Indonesian fisherman in flip-flops with a cell phone..."Oh yeah sir! We have your gold nice and safe, in our VAULT..." as his friends crack up laughing...

Thu, 05/08/2014 - 05:02 | 4738918 Youri Carma
Youri Carma's picture

Also see:

Dr. Jim Willie: Quantum Leap in the Gold Price, Ukraine-Russia Crisis and More, 6 May 2014, Greg Hunter https://www.youtube.com/watch?v=sZD1i0GbQzg

GoldSeek LIVE! Webinar – Dr Jim Willie & Rudi Fronk [May 5, 2013], Goldseek http://youtu.be/iQH4Wu3JINw?t=29m9s

Thu, 05/08/2014 - 06:38 | 4738973 AdvancingTime
AdvancingTime's picture

Call me a skeptic but I contend that the illusion of value should not be held to close. What something is worth can change overnight. The value of a currency drops when everyone starts to sell it and even the value of gold can drastically change if a government confiscates it and makes it illegal to buy, sell or even own can.

What something is worth can be difficult to determine. And most of all tell me the value of a promise on paper or implied, remember if you own gold that is represented by a certificate, you own a piece of paper. The article below delves into what things are worth and why investors should be cautious.

http://brucewilds.blogspot.com/2012/11/what-is-something-worth.html

Thu, 05/08/2014 - 17:59 | 4741296 Bemused Observer
Bemused Observer's picture

Paper gold is a joke! The whole bloody POINT of gold is to seek safe haven from paper and fiat with something you can hold in your hand! It's supposed to be the rope that keeps you fastened to the mast during the storm. They've monetized it, that's what happened, and they're TRADING it, that's why they need it in 'paper' form.

And it cracks me up that some people think paper gold could EVER be exchanged for the real thing after a SHTF scenario...No, it's good for TRADERS only, so if you think the price will go up or down and you want to play it, go for it. But unlike the real metal, your paper gold can and WILL become worthless, so tread carefully.

It is NOT real gold!

Thu, 05/08/2014 - 07:01 | 4739003 overmedicatedun...
overmedicatedundersexed's picture

some old movie comes to mind, hmmm, treasure of siera modre or some such, and" badges we don't need no stinkin badges"..spoken by the mob now called the IRS, DOJ, CIA, NSA, and .gov in general.

to keep it simple folks, the .gov are robbers and as such rules and laws are weapons used by them against us.

as to gold, the IRS hates it as it gives a way around them, I say no more.

Thu, 05/08/2014 - 09:14 | 4739361 Cannon Fodder
Cannon Fodder's picture

While I am on the side of the stackers and believe in PMs, how exactly do you spend it in a SHTF scenario?

The government outlaws all ownership of PMs. All transactions of any kind have to be in digital format (ie your debit or credit card) - cash is no longer allowed.

What then? How do you turn that gold into a transaction? How do you know that person you are trying to barter with isn't a mole and won't just turn you in?

Again, I believe in the idea of PMs, I just don't understand how it plays out when the government cracks down on it and mandates every transaction be done in a digital format (including an RFID chip in your hand)

Thu, 05/08/2014 - 17:47 | 4741267 Bemused Observer
Bemused Observer's picture

Well, those scenarios are pretty unlikely, as there'd be no practical way to enforce them. The only reason they HAVE such control today is because everything is digitalized...anything outside that system MUST be pursued by "boots on the ground"...which they simply don't have enough of. Do you think they could plant 'moles' in every flea market, rummage sale, and yard sale across the country TODAY? Because there'd be a hundred times more popping up after such a scenario. Plus, Americans as a citizenry are heavily armed.

But, if they should TRY, you can expect a very lively black market where people will gladly tell you what they'll accept as payment. And they'll even teach you the 'secret handshake'...

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