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The Big Picture For Gold And Silver
With precious metals back at 4-year lows against a backdrop of gold migration from west to east, paper vs physical divergences, 'disappearing' Comex positions, dark pools in London, collateral grabs, and massive monetary policy extremist actions; we thought the following two presentations worth considering. Tocqueville's John Hathaway delves into the darker corners of today's gold markets while Mike Maloney reminds us of the big picture behind gold and silver as wealth insurance. The failure of a monetary system is never a smooth road - it is rocky and undulating, with twists and turns that don't appear on any map. But the destination is always without question, despite suppression efforts: Gold will inevitably respond to an expanding fiat currency supply. That simple.
Tocqueville's John Hathaway asks (and answers) "Do You Know Where YOUR Gold Is" as he explains how counterparty and systemic risk will converge and the various dark and murky corners of the precious metals markets in which manipulation grows unchecked...
John Hathaway Tocqueville Keynote
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And Mike Maloney explains the big picture for gold and silver in the clip below...
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Simply put,
We are living through unprecedented times, and if there is one lesson to keep in mind it is this: The failure of a monetary system is never a smooth road paved with gold. It is rocky and undulating, with twists and turns that don't appear on any map.
But the destination is always without question: Gold inevitably responds to an expanding fiat currency supply. That simple.
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you have neglected default
The mere printing of money is the definition of inflation. The result of inflation is higher prices. Credit creation is the same as saying debt creation. No economic system in the history of the world has survived that scenario. The current situation is not unique to history---it's been repeated many times, each time with disastrous results, without exception.
Printing money does not create wealth, it creates debt. Wealth is created by producing a product people want or need and will trade their wealth to have. Wealth is created by sweat and imagination and labor and time. Creating more and more money is not creating wealth. It's creating debt. You cannot become wealthy taking on more and more debt, and neither can any civilization grow and become wealthy by creating more and more debt. The US Fed did not create the debt of printed money. It only perfected it.
A slight ammendment to that. It is the printing of money at a rate that does not match the growth in the asset base that causes inflation. This is why when there is a deflationary collapse, i.e a cacase of bad debt, and the destruction of assets, that hyperinflation follows. Those with an income end up with too much currency and too little to spend it on. Inflation and deflation are never equal and opposite.
Another amendment: The malinvestment of debt money destroys the debt and is hence deflationary... reduces the liquid money supply.
In that regard QE3 is neutral to the money supply by buying bad debt and sentencing it to eternal zero velocity on the Fed's balance sheet.... the purchases are a wash liquid money supply-wise.
Malinvestment in "defense", "security" and other non wealth producing endeavours is likewise deflationary... it is parked eternally "off balance sheet" as an asset (believe it or not).
The problem for QE appears when interest rates rise and bank want to turn the funds held in QE accounts into tradable debt notes. Then the printing presses will roll. QE for that reason while neutral, locks the system into ZIRP with the threat of collapse when ZIRP ends.
Therefore ZIRP is eternal. All statements to the contrary are bogus. Bonds should be bought for capital appreciation and stocks for yield...topsy turvy like.
Sherlock Holmes – The Red Headed League http://www.dailymotion.com/video/x13m7yj_sherlock-holmes-12-the-red-head...
The plot to steal French gold... it is a good story whatever its relevance. Copper Beeches is my favourite. Diplomatic Immunity!
Mike Maloney as a big picture source for metals ? LOL run for the hills
Whatever Mike says, IF you do the opposite you will probably make money. He is the Jim Kramer of pm bugs
Are there better places to park your money and earn a return ? abso-f*u&k%i^n*g-lutely!
Are there worse places to park you money than PM ? abso-f*u&k%i^n*g-lutely!
I pretty much lost all my PM due to ill health and the price collapse, but I would not have put my money anywhere else. Ultimately it has opened up a new opportunity for me to sue the banks. I am asking the courts for the defendants to compensate me in bullion because they have manipulated forex rates, and thus manipulated the currencies in which I would otherwise be repaid.
www.kingoftherepublic.com.
Since you got the 1st laugh and the only laugh, I guess you get the last laugh too by default...
What you are calling money, isn't. And obviously nobody here would trade you real silver money for your fiat debt notes.
Well, ok then, we all think there is one final last laugh for all of us, so enjoy your one while you still can.
Has gold really kept up with expanding money supply?
Yes it did, tracked all the way up to $1,900 then TPTB got scared of where it was heading.....thus selling hundreds/thousands of tons of non existent paper gold to press the price down a mile under water.....thing is like their money printing...as soon as the stop....the cork bounces back at rapid speed.
Yes gold tracks money supply.
A resolute gold bug named Fred
has 3 $Million troy ‘neath his bed
“No fiat I’ll trust,
your nickels can rust !”
The butler can’t wait ‘til he’s dead
Listen Surf. It's true. An idea for Americans, purchase a small pasture and put some cows on it and let them build piles of dung. Since American have such "FEAR of FECES" they will never touch the earth with their wretched, thieving hands.
Bury the gold directly in the soil with no fear of sleepless nights.
Well, it still may not be safe, as another limerick I posted a few weeks back suggests:
A gold bug, friends call him “Drew”
Hid Kruggerands right down the loo
“No thief would dare
To look way down there”
. . . his plumber’s new Jaguar is blue
Can TPTB continue to control an exceedingly complex system and do you trust them? Those are the questions to ask yourself regarding whether it's wise to hold PMs or not. History suggests they cannot control things forever and that they should never be trusted. Some (not all or none) investment in PMs is only wise given where the world has been and where it seems to be going...
http://olduvai.ca
http://www.caintv.com/obamacare-architect-ezekiel-em
http://www.theatlantic.com/features/archive/2014/09/why-i-hope-to-die-at...
Words of a eugenecist.
I need to call myself on my future-phone to see how all this plays out. I imagine we'll be looking at a similar spike that Maloney mentions from 1980 in the not-to-distant future. I'm dialing but i'm just not answering on the other end...wtf! Oh well, off for wings and beer to enjoy today. :)
Gold prices seem to have reached a multi-year low. This gold cycle model has had reasonable accuracy for turn dates, and right now it is forecasting a rise in price.
Nice but old news. I've been positioned for years for the fall.
Me too, but just a few years ago this info was just allegations by a few "tin hat" insiders. Its nice to see this info going more and more mainstream.
What is bizarre to me is that many reporters and investors hear this and see this and still don't get it.
If an ex-con pulled a ponzi scheme he'd be jailed in a day, but when well dressed bankers go ponzi, they are "providing liquidity".
Investors should remember that the gold market is actually very small compared to the amount of money that the government holds in its reserves -with over $100 billion of US treasury holdings Russia could buy every single ounce of gold produced in 2014
Seem to be a lot more troll types jumping in on the ZH PM articles these days. Seems to me somebody is worried enough they feel the need to hire more muppets to shout everyone down and wind people up...
To me, it is the hypothecation and rehypothecation that gives me the shivers. How many times can an asset be borrowed on before the cards get swept up in some gust?
I don't know about the Gold thing or the collapse of the dollar but hypothecation and rehypothecation could make MF Global no worse than a kid picking his nose.
I *wish* someobody was paying me, after I lost my life's savings, generations of my family's savings, my home, my health, and nearly my life, by betting on the metals!
Look, I don't want to be razzle-dazzled by 10 pages of colorful, eye-catching charts and graphs that don't tell me anything useful. I don't want to spend an hour reading all about Keynes and Hayek and Austrian economics and the 300-year Rothschilds Conspiracy or UFOs or jet vapor trails.
I just want to know what the *price action* in the metals is going to be in the *short* term. By "soon" I mean the next few days, weeks, and months. Maybe three months. After that, it just won't matter anymore. I don't want to hear about "eventually," "finally," or "ultimately." I don't care what it's going to be in 2017 or 2021 or the Year Twenty-Five Ten.
being an American, living in America, weighed heavily on how i try to protect my family, invest my assets, and future earnings.
when the idea of MYRA'S, and gated MMA'S are made public, it's a pretty good bet they already have in place an executable plan, then the virtual immpossiblity for 80% of Americans to move assets outside of America.
my prediction, when it crashes it's going to be a Greece 2.0, but it will happen mon. morning, of course the banks will close and do their part, retailers, 401K administrators, and day traders will not have access to the market, the hft's working with the TBTF'S will work all mon. and then on tues. open up, and the reset market value will 30% less, and then let everyone else go at it.
How long was gold possession illegal in America and England, 40, 50 years ? The bankers can drive the price of gold back down to $35 if they want and anyone alive today can only hope their offspring can cash out.
You know why silver is going to be hammered into oblivion ?
Because the greedy mineres are crushing everest-sized mountains every day in south america to produce BILLIONS of ouces of the stuff that the market is not moping up.
Those who claim the production cost of an oz of silver is around $17-19 are INSANE
clearly the miners can keep up this even if the price falls to $5 an ouce because they only have to switch to a lower grade of rice that they pay their pet slave south amercan workers with.