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Will Gold Crash With The Dow... Or Soar?
Submitted by Jeff Thomas via Doug Casey's International Man blog,
In 2008, we projected that the crash in the market was in fact a mini-crash and that the day would come when a more major crash would occur - one that reflected the level of debt. In recent months, this prognostication has been gaining traction - that a second, more severe crash is inevitable.
There are two primary camps amongst economists with regard to the economic direction that a crash will generate: inflationists and deflationists.
Inflationists tend to feel that the governments of the world that are now in debt over their heads will do what governments always do in such a situation. Rather than get off the monetary heroin, they will instead increase the dosage. Inflation will then ramp up dramatically, eventually causing collapses in currencies.
Deflationists, on the other hand, argue that when there is a market crash, there will be deflation. And since the debt level is so great, the severity of the deflation will likewise be great.
The argument goes back and forth, yet there seems to be the misconception that one must be either an inflationist or deflationist. This is not at all the case.
Recently, there have been vehement arguments from some very notable people in the deflationist camp that we shall soon see major drops in the Dow—first to 6000, then to 3300. They feel that, as this occurs, there will be a further real estate crash, gold will sink to $750, and unemployment will go through the roof.
Inflationists will inevitably reply that, in the event of a crash, the central governments will print money like never before, as soon as there is even a whiff of deflation. (Their argument is strongly supported by the repeated confirmations by the previous chairman of the US Federal Reserve, Ben Bernanke, that no deflation will be acceptable to the Fed, that they will indeed print as much as it takes to counteract any possible deflation.)
However, each camp is overlooking a significant factor. The deflationist reasoning tends to lead up to the occurrence of deflation… and then stops. They rarely comment on what happens next: the influx of newly-created currency units.
The inflationists overlook the fact that, when a major crash occurs, it happens suddenly and when it occurs, it carries other markets with it. No amount of monetary printing can react quickly enough to simply cancel out the precipitous deflationary force of a crash. All that can be hoped for by the Fed and others in their situation is that they “play catch-up” as quickly as possible—injecting money into general circulation (not just crediting it to the banks, as they are now doing) to reverse the deflation and to hopefully return to “controlled” inflation.
Are we headed for a crash in the stock market? Almost certainly, and probably a more severe one than in 2008.
Are we headed for dramatic inflation or even hyperinflation? Again, almost certainly.
So what will this look like? How will it play out?
Consider the following as an order of immediate events (in brief form):
- The Dow crashes, in downward lurches, interspaced with false recoveries.
- As the crash unfolds, we will see innumerable people who bought on margin selling everything to cover their losses. (If they hold gold or gold stocks, these will be sacrificed even if the holders remain confident about gold. Their goal will be to cover immediate losses, at whatever cost.)
- Due to the dramatic selloff in gold, the price of gold plummets.
This is the deflationist argument and it is a logical one. (Popular estimates for the gold price are between $1000 and $750 as a potential floor.)
But this scenario rings true only if all those who hold gold are forced to sell.
What could actually happen might be similar to what we have seen with the unravelling of paper gold - that the development only serves to encourage those who understand gold to buy all they can. This serves to create a floor for the gold price.
There may well be sudden downward spikes that would tend to prove deflationists right, but as we now live in an electronic age, the turnaround by purchasers will be almost as quick as the crashes themselves. It may be that we will see sudden precipitous drops in gold, followed by immediate rises in purchasing - a real rodeo ride.
It is entirely possible that gold stocks will stay down longer than the gold price, and some (otherwise viable) companies may even go into liquidation. However, gold itself will not drop to $750 and stay there, as deflationists imply. More to the point, its recovery may be quite swift.
The market is experiencing a divide that didn’t exist before. Until recently, there have been many people (millions) who misunderstood gold, treating it like a stock. Many of those people are disappearing from the market (having been washed out by the paper gold failure), and soon, most of those who are still in gold will be those who understand it. The higher the percentage of gold ownership that is in their hands, the more solid the floor.
Whatever that floor may prove to be, gold will stabilise. Then, inevitable inflation will cause renewed interest in gold by the misinformed, as it begins its inflationary rise. By the time gold passes $2000, the misinformed will be falling all over each other to get back in—still not understanding gold, but desperate to ride the coattails of “a winner.” It would be at this point that we would go into a period of dramatic inflation, with a concurrent gold mania.
Whatever level of drop gold experiences as a result of deflation, gold will rise up from it like a phoenix - long before other asset classes rise.
In fact, it will lead the pack.
The question for the investor should not be whether we shall see inflation or deflation. We shall see both. The rodeo is underway and we are, whether we wish to be or not, in the saddle of the bronc. Soon, the chute will open and he’ll start bucking for all he’s worth. When he does, it will matter little whether he bucks to the left or to the right. The only objective should be to ride it out.
In investment terms, what this means is that we need to have avoided those investments that are most greatly at risk and have chosen instead those investments that are likely to be intact when the ride is over.
If we have loaded up on precious metals, in truth, it matters little if gold drops to $1000 or (gulp) to $750 as deflationists have predicted. All that will matter is whether we have had the fortitude to stay in the saddle until the ride comes to an end.
Editor’s Note: Gold is inherently an international asset because it is disconnected from any government and its value is universally recognized everywhere in the world. Buying some is perhaps the easiest step you can take toward internationalizing your savings. The next step is to store your gold in a safe foreign jurisdiction. Perhaps one of the easiest and most convenient ways to own physical gold offshore is with the Hard Assets Alliance. To get a free report on how you can internationally diversify your physical gold see here.
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<---- Soar?
<---- Crash?
Stupid question, like CNBC pre-supposing we are f*cking idiots and don't know the answer.....
Through the eyes of gold, the Dow is a figment of euphoric Fed induced delerium....like seeing a cloud that looks like a pot leaf....
first fear then PANIC.............and then GOLD
Not necessarily, but gold will still be standing when all others have crumbled to the ground.
A deflationary crash is by historic definition a situation where a unit of gold buys more and more goods.
We're about to revisit history.
Crash, then soar. Knife-catching will make some rich; Do you feel lucky, punk?
luck is a dangerous strategy. I have no ethical qualms about having sold all my gold near the top, then waiting for 1K to buy it all back. Buy and hold is dead in all forms.
If the supply hasn't dried up. You assume that a ready supply can, and would exist. Not necessarily the case.
It might be probable, but under exceptional historical circumstances (what we are currently staring down), exceptional events will occur.
As nerve wracking as this global situation is, and it IS nerve wracking, you can bet that some people are going to make out like bandits when the dust settles.
PS: this next crash will probably be worse than '08/'09, but don't underestimate the ingenuity of the people at the top to find a way to kick the can down the road. So you're probably right.
When the global debt pyramid actually collapses in earnest, things will be absolutely brutal.
yer, +1. Dude, i have no doubt when the shit hits the fan that the paper price will go down to $1000. - but can you get physical delivery at that price? and will your paper contracts be honoured (even in fiat let alone phys) when their bluff has been called by the market and they fold on their obligations?
juyst f'n buy it now and sleep soundly. The tops and bottoms of markets are for fools, so they say
"Perhaps one of the easiest and most convenient ways to own physical gold offshore is with the Hard Assets Alliance."
To be honest, I'll never understand people who want to "offshore" their PMs. How much can you trust its safety? No. Possession is ownership. If you're paranoid about government confiscation, try buying numismatics... and have a powerful pistol nearby.
Not sure if your history book shows the future. We're going forward. The history hasn't been written yet. In your scenario, you would need to trade gold for money before you buy anything.
I think you could TRADE your gold for acres of land and grow tomatos at $2 apiece, but these people who are stuck in cities with no money to buy food, they can't eat their gold. You are correct in thinking something epically bad is going to happn.
Am thinking of gold as the ultimate unit of money.
In the future see investors out of stocks and other assets (including fiat cash) and into gold for safety.
Personally I believe that Exter's pyramid will assert itself...people will run down the pyramid, ultimately to cash, and that being USD since that is the current reserve currency, but as it becomes obvious that the USGOV won't be able to pay its bills in a deflation, as tax revenue crashes, people will realize that the Fed MUST print, as it is the "lender of last resort" to the welfare/warfare state. The Fed will become the "bad bank", and all toxic assets will be stuffed into it, as the fed prints USD and buys "assets" in order to continue manipulating markets. Fed accumulates massive assets denominated in USD, and then USD will blow up, taking the debts with it. Interesting that "assets" used to be gold in a vault, now "assets" are debts, promises to pay made by other people and companies. We have a vault full of promises, and we are rich! What a fucking joke.
Gold, being the bottom of the inverted pyramid, will soar when viewed as denominated in scrip / fiat...gold in "buying power" will rise significantly, as non-holders seek it, then stabilize.
Mining stocks....woo-hoo! Then nationalization, so timing will be important.
Given the corruption at the COMEX and LBMA trading primarily paper instead of gold with enormous leverage, it seems likely that a small fraction of a percent of those who try to secure gold later will get any gold.
The gold tip on Exter's pyramid should be 1/1000 of the area of the rest of the pyramid to reflect the lack of liquid gold currently available to market vs other assets.
By intervening in the market to disrupt proper pricing of gold, there will likely be very little, even none offered, when the time comes. Just a new astronomically high price.
I pretty much agree with your scenario. I believe the motivation will be a bit different though.
We are somewhat in the midst of people recognizing that the bonds of all states are not worth buying. Controlled rates are just too low to meet any investment goals. When there is no longer a market for placement of the debt with private holders, occuring now with all govts. doing limited QE, the only purchasers are the money printing central banks. When the private investors and pension plans become sellers, the money supply really does EXPLODE. People will then rush to buy anything physical to beat inflation. Look at some of the reports from Argentina and Venezuela regarding auto purchases for a store of value. Everyone will be dealing and comparing nominal prices in the local currency market. The USD may be the last to fall but it will suffer the same fate as Zimbabwe dollars.
Japan is now on the verge of the currency collapse that will implode most of Asia that is in their trading block. If their govt. pension funds do actually try to shift from holding the JPY demoninated bonds yielding nothing, selling and diversifying their holdings, it will be only months, not years, before the implosion. Who would wait for those sales to drive prices lower when a policy change is actually announced? Everyone will try to front run it.
Once that example is underway, the sale of low yielding promise, backed by only more promises, will not be possible for much longer.
Excellent.
That is the play.
True insurance is what you have in hand, not paper promises in these times.
I have been thinking this way since 2008.
Not an easy thing to do as COG DIS writes so eloquently.
We will never forget these days, unless of course...
Good Night.
Pento,
No. A deflationary collapse is where currencies value rises in relation to every other asset class. Your dollar would buy more and more stocks, gold, oil, everything.
In '29 cash would have been the best asset class to hold.
Not currency value but gold value is increased in a deflationary crash.
In the 1929 crash, gold was money in the US - that is why cash was the place to be. Now it is just fiat paper.
In a deflationary crash, all assets including the bonds crash and the central banks print like the maniacs they are - gold (money) value goes to the moon as the curency then collapses.
Great post.
The tick data => http://bit.ly/1fMcakI is indicator the pros use, and has been deadly accurate lately, and hinting more dowside on Russell and Nassie soon. Short term.
SHORT TERM - That probably means more down for the indicies and market. GOLD UP!
LONGER TERM - A Rally is comign to the market.... so GOLD DOWN!!
we shall see. :-)))))
Always bet on human greed and stupidity and the worst thing they can do will be the first thing they WILL do. The smart people will dig in and ride it out.
Will drop just a little against USD, assuming USD is being drained out of the system
It will abundantly soar against Dow. Dow will collapse
Gold will do what gold will do.
Gold does not care about the dow, gold does not care about the usd, gold does not care about bonds, or any of those silly reindeer bankster games...
At Gold HQ they have a picture of Nixon on the wall, with ribbons and glitter and party balloons surrounding....
The Dow will be like a love-bug on the windshield of gold's freight train once it gets rolling...
Hey, and I'm no big fan of gold, I prefer 1964 US coins.....
Gold will return to true value but there will be an interlude after everything hits the wall. That interlude shall be known as 'interesting times'. In our just in time world things like food and fuel will become very hard to obtain very quickly. People living within 50 miles of any coast represent 57% of the population. Things will get very bad in the cities and if your going leave, leave now. Otherwise be like a mouse at a cat orgy and do nothing to attract attention while stocking up for the collapse.
Expect gold to appear volatile in fiat currencies as their short term situations change.
It's still gold.
If gold does crash you mutha fuckas had better be ready.
I have a very hopped up 1948 Chevy 6100 Series Dump Truck, revved and ready.
I will haul ass down the the coin store and load the hell up.
Pretty Please!
But seriously, I believe that deflation will incessantly continue to pull down commodities from here.
When stocks begin to fall, time will be short to buy precious with any realistic expectation of getting delivery.
On your toes indeed.
yea, but that day is far down the road yet, we'll have some years of global deflation to play with first
You gotta post a picture! I know you can buy engine parts on Ebay for all the old vehicles really cheap, I do not doubt what you say.
Good for hauling tomatoes too. Seriously. You ever look up www.cropking.com ?
"Son, you're gonna drive me to drinkin' if you don't stop drivin' that Hot Rod DUMP TRUCK!!!"
Hydroponics is great but you can be sure of one thing, the grid will go down and they are then useless. Think about it, you must be able to live without power for an extended time.
But greenhouse technology is Ancient and will extend your growing season, thru different weather scenarios if you can keep the glass or plastic on.. my plan is to be the only mother with heritage seed plants for your garden, when every one else is looking for a shovel to dig up their yards
Economist...lol...what are those?
But wa wa wa what about supply and demand? Price goes down people buy more...price goes up people buy less...so in the case of gold...if it goes down it won't be for long. I hope it crashes...I'm all in. We don't have deflation we have manipulation...ssssshhhh...whisper to yourself...there is no inflation. Good luck finding gold for $750-$1000 benny bucks...
As the world goes full retard, gold and silver will become preferred assets. However, without lead and faith to back them up, you might as well be holding shares of Twitter.
Y ea but unlike paper those of us with the physical can hold a true asset in our hands that remains whole and true to its form. All this paper dreams that the fools hold has a value stated by man. The worth is what they make it if its worth anything at all. But guess the world could do that to the metals as well but then what I guess cows chickens wheat and water i got that toooo. Ready set and ready to go.
Controlled crash, authoritarian style, then inflation. That's the history.
Is that like "Love, American Style"?
When the crash happens I suspect the banks will lock up all the supply from the mints to replace their 'high quality liquid asset' BIS requirements. The time to buy and take delivery is before the crash.
Did Apple just buy all of that glass company for a dollar?
I want to live, I want to give
I’ve been a miner for a floor in gold
It’s these retracements I never get
That keep me searching for a floor in gold
And it’s getting old
Welfare mothers
Make better lovers
zzzz
"Are we headed for a crash in the stock market? Almost certainly, and probably a more severe one than in 2008"
"Almost certainly???".....oxymoron
I've seen the ZIRP and the damage done/ A lot of trouble caused for everyone/ Our US fiat is like the setting sun...
Depends on what the Elite make it out to be. Why do we have this conversation is beyond me. One is REAL, the other fake/fradulent.
We always leave out the rest of the world....if the dow tanks..and the dollar tanks..i think the Asians will be buying hand over fist...as well as Russia....and any other of our enemies.....they will be dumping our dollars and buying real assets as fast as they can...
Starts slow, but worth the read:
http://thedeliberateagrarian.blogspot.com/2013/10/how-to-get-through-com...
This is not news. It could be my time doing this showing. I have always expected deflation first (in the $ price of gold), the bucking market (100 or more dollar a day swings), then inflation into possible/likely hyperinflation.
I have assumed this thesis since 2007.
Meanwhile, if newbies don't know, then yeah, it "bears" repeating.
I would have a death grip on mine, but I lost it in a tragic boating accident, so alas, I am not a playa...
as long as you marked with chalk the spot where you lost the boat, you can find it again
It will soar priced in fiat and crash priced in silver.
gold monthly shows that we are likely heading down before we go up
http://bullandbearmash.com/chart/spot-gold-monthly-closes-channel-suppor...
if you are insistent on owning gold, do so at a lower price - 1050 is likely the next low in the near term.
Gong! Buy now and you will have something. Wait for $1050 or $15 silver and you might end up with nada. The fuse is lit, do you really think you can get in and out before she blows?
Gold would buy you a loaf of bread every day for a year, in ancient Babylon , 2,500 years ago
Pretty much the same now.
Paper?
Every one of these contracts, bonds, stocks, every one of the fiat currencies, represents a promise that WILL be broken. Paper, only as good as your counter party.
And your counterparty can get ripped off and fucked and become unable to pay you! Nothing personal, they are just fucked. And so are we, and so on, and so on. Is the Ro on this thing worse than Ebola? I know so.
Can't wait (not really but sort of/we're ready) to hear the chumps yelling: Whadduya mean my dollar's no good here! (deer in headlights look)
It's better to be 40 years too early. Then one day too late.
Both camps seem to miss the simple fact they can just reprice gold to pay off the debt. There is no crisis.
you have to have the gold to reprice to pay the debt
So who is they?
Is the US .gov going to tell the rest of the world what the value of anything is in a crash, be it inflationary or deflationary?
I think you haven't accurately figured out who the players are and how they will arrange the board...
DaddyO
Deflation most likely wins this fight, though an burst upwards could happen first before the decline. But.. there also could be a third mess next decade which could make it soar
"However, each camp is overlooking a significant factor. The deflationist reasoning tends to lead up to the occurrence of deflation… and then stops."
After deflation comes the next inflation/deflation cycle. Who said anything stops? The deflationist argment is that deflation will occur, despite central banks being able to print money. Japan has already proven it.
I agree and I am a deflationist. See my post right above yours. Crazy inflation "could" come but think it is in the next decade someitme after deflation runs its course.
I don't know. I think it will soar, but it may decline another 20% to 50% before it does.
The thing is if it does soar you're probably better off with lead, canned goods and bottled water. Silver OTOH looks doomed, it may follow the same pattern but the gold/silver ratio looks dead, making value in gold that much easier to haul around. Maybe in a crash, and just for its utility as small change, silver would make a comeback.
Current pattern looks like it will need at least a couple more weeks to play out. But I could be wrong, it has happened before.
Gold has always been a currency in its own right .
What you are talking about is the Exchange rate between a currency and gold .
See http://andreswhy.blogspot.com/2009/03/transactional-physics-exchange-rat...
See also http://andreswhy.blogspot.com/2008/10/financial-crisis-2008-exchange-rat...
Look what happens if you take a round trip around the diagonal .
There is too little physical gold to play a large role in financial affairs of large nations .
Historically , when a fiat currency collapses , silver coins take over .
Happened numerous times in China , Europe , Japan and USA .
Gold was suspicious (a peasant in posession of gold coin was usually hanged , on suspicion.)
Silver was the valuable commercial medium .
In a complete collapse (like in Bronze Age Collapse circa 1200 BCE) , Neo-Vikings will certainly plunder Singapore .
And there goes your gold .
See http://andreswhy.blogspot.com/2014/02/neo-vikings.html
Historically , old currencies were simply replaced before inflation or deflation could do too much damage ,
Only in exceptional circumstances was the full path allowed (eg Germany 1923 - reparation of war debts)
Try to keeptrack of all the zeroes lopped off in Francs , Lire , Rubles etc .
http://andreswhy.blogspot.com/2011/11/inflation-vs-deflation.html
http://andreswhy.blogspot.com/2011/11/inflation-vs-deflation-ii.html
Expect the same with $US , &UK , Euro's (if it survives this ,which is doubtful . More likely new Marks etc)
Nifty footwork is the price of keeping your assets from greedy fingers .
As usual .
Money is boring , especially if you have too much of it .
Who owns who , after all .
here is what you have to understand
if you would like to survive and be
satisfied in this world. .....
.
Alex McMurray "Jesus Always Gets His Man" 7-27-2013 Live at Fantasy
http://www.youtube.com/watch?v=u1kUpwoq6fM
.
"At The Foot Of Canal Street" at Chickie Wah Wah
http://www.youtube.com/watch?v=WwW0m9eZO6I
.
“The union of nature and soul removes the veil of ignorance that covers our intelligence.”
? B.K.S. Iyengar, Light on Life
.
there was something else of importance but
i lost it.
you know, blindman, you post some interesting, provocative stuff with an excellent taste in music. neat.
If you compare the US data to past recoveries this one is very mild at best and sick at worst.
So the Fed isnt reducing stimulus QE because the ecpnomy has reached lift off velocity. They're tightening because QE isnt working.
That doesnt mean they'll give up experimenting though.
So expext QE 3 to end this month. Equities continue to break down. And inflation could break down theough the bottom of the range established over the past couple years.
There's your deflation scare trade, followed by the Feds next effort. Maybe they buy Equity ETFs since it worked so well in Japan.
I think eventually Fed screws up so badly that investors lose confidence in the US $. And then you get your inflation trade (C $ RRB?).
Since debt destruction and a falling market are inherently deflationary, it seems we'll have deflation first. However, just as Ben Bernanke rather publicly promised, the Fed won't make the "mistake" again of failing to inflate/print as it believes it did during the Great Depression. In fact, folks today simply aren't made of stern enough stuff to survive a full-blown 1930s-style depression. We don't have the stomach for the hardships that past generations bore. After deflation gets firmly imbedded and equities are down 20-40%, Yellen and crew will remind us what they've said all along - that withdrawal from QE and rising interest rates are "data dependent." By that point, the data will suggest - at least to a central banker - that we're due for another round of easy money. We'll get renewed stimulus efforts and gold will begin to rise again. Which seems to explain why gold is falling today. Japan and Europe are still easing while we're tightening. To put it another way, the rest of the world is more effectively 'beggaring thy neighbor' than the US is, so the dollar is strengthening relative to much of the world.
Did you mean 'buggering thy neighbor'? Seems more apt, considering the SCOTUS declined the invitation to save marriage.
Paper holders of gold will be forced to sell to cover other paper losses. Gold willl also crash but physical will disappear and then gold goes "to da moon"
It is all about relativities. In other words what will either the Dow or gold buy in terms of real goods after the crash.
In my view it will depend on which asset class or commodity you are looking at.
My guess is that foodstuffs will cost proportionately more than real estate after a crash.
Comic Books people!!! Thats the future !!! Gold and Silver Age comic Books !!!
The Fed doesnt play in THAT market !!!
Well, not yet it doesn't. In time, everything will be played.
<-- Maybe
<-- Maybe not
Since the "consensus" is that gold is headed to sub 1100, everybody and their family is short, so gold might well go up. so maybe not ? triple bottom??
"The dollar keeps only through military blackmail on his feet" http://deutsche-wirtschafts-nachrichten.de/2014/08/02/der-dollar-haelt-sich-nur-noch-durch-militaerische-erpressung-auf-den-beinen/#.VDNI3tK44z0.twitter …
If fiat currency isn't real money, then it would seem that debts denominated in fiat currency aren't real debt.
It's real until it's not.
You should be ashamed for peeking at the last chapter.
Soar, of course. Everybody knows that. What else is there when the Dow crashes?
Promises are only as good as the paper they're written on...
We're headed into the strange days when gold price falls as demand increases and supply is nonexistent. I don't know how that's going to be possible, but I have little doubt it will happen; perhaps the Fed will fill us in. Safe to say premiums will explore as yet uncharted highs.
It's quite magical, isn't it?
what no one has considered is an inflationary deflation like what happened in zimbabwe, the most severe circumstance. the currency goes to useless while the economy is choked by collapsed demand. in every case gold and silver are exchangeble for goods and the time to exchange local fiat for pms is long gone. hard assets always reflect the true local value so gold would deflate with the economy but would be priceless against the local fiat.
it's a big guessing game isn't it...That's why I live in a small town up in the mountains with plenty of gold, a shit load of silver, lots of ammo, lots of food, lots of water, lots of cash, a standby generator, lots of fire wood if I need my wood burning stove, a green house, lots of seeds, lots of booze, no debt and a hazmat suit. I figure I'll survive at least 2 - 3 weeks longer than most if civilization collapses.
If you don't have the means to set yourself up then why worry about it. Just watch football and google Kim Kardashians ass during halftime.
The paper price of gold does reflect the dollar and not physical gold.
Gold will inflate in physical terms and deflate in dollar terms.
---> physical up and paper down until all paper died and phys is last man standing!
I think the ultimate unit of money will be the kilowatt hour.
Now it is USD petrol kilowatts - then it will be renewable kWh
Price of gold will be determined by the amount of kWh needed to get it out of the ground
GROEI gold returned on energy invested
Gold will not crash. Paper gold? Maybe. The current gold "price" is a scam because the pricing mechanism is set in the paper markets, with unlimited amounts of paper gold. Paper gold are promises for gold that CANNOT all can be fulfilled. Half the plant - China, India, Russia et al. - are buying phyzz, and the western vaults and ETFs (GLD) are being drained. Gold is moving west to east, at a non-sustainable pace. Miners sell their product close to or below cost of production. Nuff said.
Price is human's reaction to natural scarcity.
Paper Gold has no scarcity, and can be produced ad infinitem.
Things are until they aren't anymore. Will paper gold survive? I seriously doubt it. The eastern phyzz exchanges and global demand for the real thing may eventually prove an insurmountable challenge to the western gold-ponzi scheme.
http://winteractionables.com/?p=15278
The Fed's policies help stawks and hurt gold, so as long as the Fed is still in charge...
"The Fed's policies help stawks and hurt gold, so as long as the Fed is still in charge...", means I will be able to cotinue to accumulate this beat down barbarous relic that is so despised with the highly inflated but soon to be worthless FRN.
Thanks to TPTB for this gift.
"Crash" or "Soar" in terms of what?
Dollars?
That's where your "thinking" (conditioning) needs to change.
www.roacheforque.blogspot.com
This site needs to be renamed preppers R US.
Get a ficking grip, gold is worthless in an electronic money economy. It is not money. It is an asset. nothing more.
As a gold holder it really discourages me to see articles proclaim gold as the saviour and great trade. BTFD you say. You've lost people billions probably.
Time and time again, gold has been used to protect us from goverment not economy...
You fucking gold pumpers have bankrupted millions of people which you dissgusting continually pump.
I shame you. You scared the shit out of people instead of providing a positive reframing of life.
You predicted chaos alright. Your chaos mantra fucked people who believed your crap.
How do you jerks sleep at night. In fact you are the enemy of society not the dark pools.
I hold gold to protect my people from government collapse, it is not a fucking trade.
How come gold haters always claims to own gold on an up day? LOL. Fiat is the enemy of society, not real money. Fiat has wrecked more countries than ebola and the plague combined. Real money always wins, no matter how much you proclaim otherwise. Gold is the global accepted unit of account that global trade requires to function. There is no subsitute.
Sorry you got bankrupted owning paper money. Fiat dollars are down 97% vs gold in the past 40 years. Next time just save and stop getting tricked into bankrupting yourself.
What happens to the "electronic economy/money" when the electricity goes off??
Gold crashes with everything else as margin calls are across the board and assets of all classes have to be liquidated...Gold comes back first as no one will believe that a turnaround is going to be imminent, easy or quick next time.
wouldn't it make as much sense to buy exxon at $35/share...as to buy gold at $750/ounce...
Blah blah blah, we'll dump GLD then you'll be sorry!
Gold won't drop for long. These paper hanging sonsobitches want you to think they will run things even after they're wiped out. As they dump paper 'gold', real buyers will carry off every coin, bar and ring of the the real thing leaving this place destitute. What will the cheesedicks use for wealth storage when the gold and silver have flown the coop to friendlier shores?
Government scrip?
a high price for gold (that mirrors it's true value) is the Fed's (and by extension the Banksters who rule the Fed) greatest enemy.
Because it means they have failed.
In the end the Fed's greatest tool is confidence in the system.
Without it, the Fed will cease to exist in short order, in its current form.
The purchase of gold represents a "vote" against the Fed, a "bet" against the current financial system and will be supressed at all costs.
As long as the Fed rules, and can control the price of gold, they will do so.
When the Fed loses control of the price of gold it will be a dark (but necessary) time.
It's a difficult tightrope to walk, because the Fed must also watch the actual physical market for gold and adjust accordingly so that the manipulated price of gold does not deviate too far from the actual supply and demand of physical gold even as the price is manipulated lower.
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig Heinrich Edler von Mises (29 September 1881 – 10 October 1973)
So..do central banks "give" money to governments/capital institions or.. do they "loan" it to them..?
See the Dow..
soaring so high...
It's hard, for some to see..
that the end could be nigh...
But due to the taper...
when their "wealth"
becomes vapor...
Maybe then they'll see..
the schtick that's been..
poking them in the eye...