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"Gold Is A Good Place To Put Money These Days" - Greenspan
Given the fragile nature of the U.S. economy, Eurozone economy and indeed the global economy, Fed critics continue to believe that this may be a short term hiatus prior to a resumption of QE, if asset prices start to fall or economic growth falters.
Former Federal Reserve Chairman Alan Greenspan admitted yesterday to the Council on Foreign Relations (CFR), that QE and the Fed’s bond buying program, which aimed to lower unemployment and spur stronger economic growth, fell short of its goals.
It has been a busy week for the man once known as "Maestro”. The end of last week saw him engage in public discussions with the likes of Marc Faber and Peter Schiff at the New Orleans Investment Conference.
Ominously, Greenspan warned at the New Orleans Investment Conference that the Fed’s balance sheet is a “pile of tinder” and gold is a “good place to put money these days” as it will rise “measurably” in the next 5 years.
He told the CFR that the bond buying program was ultimately a mixed bag. He said that the purchases of Treasury and mortgage backed securities did help lift asset prices and lower borrowing costs. But it didn’t do much for the real economy.
“Effective demand is dead in the water” and the effort to boost it via bond buying “has not worked,” Greenspan said. Boosting asset prices, which aids the already wealthy, however, has been “a terrific success.”
When asked about QE, Greenspan made the unusually frank admission that “the Fed’s balance sheet is a pile of tinder, but it hasn’t been lit … inflation will eventually have to rise.”
Greenspan, who headed the Federal Reserve from 1987 to 2006 surprised guests in New Orleans when he stated bluntly, "I never said the central bank was Independent!" in response to criticism that the Fed was financing social programmes.
This stunning admission, if true, begs the obvious question: to what extent are the current policies of the Fed and other central banks the result of careful reasoning by independent monetary experts and to what extent are they being dictated by politicians desperate for public popularity and reelection or worse still by unelected powerful banks and bankers?
Greenspan said that currency debasement had failed to foster economic growth and unemployment had not been alleviated. However, at least asset prices had been boosted which he described as a "terrific success."
So Wall Street reaped tremendous benefits from QE while main street flounders and taxpayers, both living and yet to be born, have the privilege of footing the USD 4,000,000,000,000 bill - that is $4 trillion. He also indicated that ending QE would "unleash significant volatility in markets."
In what may be the saving grace of his legacy, he continues to expound the virtues of gold.
In New Orleans, he was asked why central banks still own gold. His answer was encouraging if a little vague, "Gold has always been accepted without reference to any other guarantee." When asked where the price of gold was headed in the next five years he said "measurably” “higher."
Question: “Where will the price of gold be in 5 years?”
Greenspan: “Higher.”
Question: “How much?”
Greenspan: “Measurably.”
He told the CFR that "gold is a good place to put money these days given it's value as a currency outside of the policies conducted by governments."
So, the primary policy the Fed has - which is to put a floor under favoured markets and support U.S. bond and asset prices and give the process a complicated sounding title - has failed, according to the ‘Maestro’ who devised said policy.
What happens next? We don't know but for once we would be inclined to follow Mr. Greenspan's advice.
As we discussed last year, Mr. Greenspan is not the only person to have chaired a major central bank who views gold as a highly relevant strategic asset.
Mario Draghi, head of the ECB and former governor of the Bank of Italy, has this to say:
"Well you’re also asking this to the former Governor of the Bank of Italy, and the Bank of Italy is the fourth largest owner of gold reserves in the world, which is out of all proportion to the size of the country. But I never thought it wise to sell it, because for central banks this is a reserve of safety, it’s viewed by the country as such.”
“In the case of non-dollar countries it gives you a value-protection against fluctuations against the dollar, so there are several reasons, risk diversification and so on.”
The smart money continues to understand the importance of gold as diversification.
Marc Faber, who also spoke at the New Orleans Investment conference, summed up our view perfectly when he suggested that each individual should be their own central banker, holding the reserve currency that is gold as insurance against government bungling.
See Essential Guide to Storing Gold and Silver In Switzerland here
GOLDCORE MARKET UPDATE
Today’s AM fix was USD 1,205.75, EUR 958.09 and GBP 753.59 per ounce.
Yesterday’s AM fix was USD 1,228.00, EUR 963.67 and GBP 761.65 per ounce.
Gold fell $17.40 or 1.42% to $1,211.20 per ounce yesterday and silver slid $0.14 or 0.81% to $17.07 per ounce.
Gold for Swiss storage or immediate delivery dropped 0.7% to $1,203.22 an ounce in late trading in London. The yellow metal hit $1,201.53 today, its lowest since October 6th.
Gold for December delivery slid 1.8 % to $1,202.50 on the Comex in New York. Futures trading volume was 65% above the average for the past 100 days for this time of day, data compiled by Bloomberg show.
Silver for immediate delivery slipped 1.5% to $16.60 an ounce in London. Platinum fell 0.7% to $1,251.75 an ounce. Palladium lost 0.9% to $787.50 an ounce, after a five-day bull run.
Gold fell on the expected Fed announcement and confirmation that the Fed is to end QE and their highly unorthodox money printing and six year monthly bond purchasing programme.
The move was not unexpected by precious metals market participants and therefore the sudden sharp selling raised some eyebrows. Indeed, it has all the hallmarks of continuing manipulation of the gold and silver futures market.
If the mooted end of QE is bearish for gold and silver, then it is also equally bearish if not more so for overvalued stock and bond markets. Yet, those markets saw far less volatile trading and saw minor losses - the S&P closed down just 0.14%.
The move lower yesterday also took place despite very high global coin and bar demand in recent days which would ordinarily have led to higher prices. It also comes at a time of heightened geopolitical and economic concerns and the emergence of the Ebola virus. Not to mention, the bullish “Save Our Swiss Gold” initiative.
Is yesterday’s trading another sign of manipulation? If it walks like a duck and quacks like a duck ...
Gold is testing support at $1,200/oz and below that is support at the triple bottom at $1,180/oz.
Prudent money will continue to dollar cost average into coins and bars on price weakness.
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the only question is, will Gold or Bitcoin first reach 100$ ?
TIMBER !!!!!!!!!!!!!! 1166$
He told the CFR that "gold is a good place to put money these days given it's value as a currency outside of the policies conducted by governments."
Yeah, I am going to trade on your advice Al.
Question: “Where will the price of gold be in one week?”
Greenspan: “Higher.”
Question: “How much?”
Greenspan: “Measurably.”
How getting slammed to $1,175.
What a know-nothing, trying to be relevant maroon.
Timing is everything.
If you ‘investors’ are still paying house payments or on credit card support, you shouldn't be investing at all but instead taking the sure thing, paying off that debt.
The last thing you want is to own a bunch of $1,200 gold then have to sell at $550.00 because you need to raise funds.
“One in the hand is worth…”
He did trick you guys.
LOL. Green eggs on your face? That’s Fed-Stench, bitchez.
They've been doing it to us for over a hundred years. Let the goy slaughter continue, I guess.
So he makes the announcement and gold drops. Looking at the futures (right now) after the BOJ announcement, up 20 and gold down big again. Goldman makes several negative announcments, and market makes fresh all time highs. The muppet slaughter never ends!
This is a zero sum game. I stopped listening to these kikes a lonnnnnng time ago.
Yo, BullCore.... Gold has been in a correction for a couple years, these days it has turned into a blood bath. Greenspan told everyone to go get a "Liars" Loan second mortgage at the top of the last great Bubble... Housing problems "contained "
http://finviz.com/futures_charts.ashx?t=GC&p=w1 This duck is pointing to $800
"Prudent money will continue to dollar cost average into coins and bars on price weakness."
prudent money has cost-averaged sold gold coins and bars at $1900,$1800,$1700,$1600,$1500,$1400,$1300 on price (strength and then) price weakness
and now is wondering if $1200 is a good place to start to buy or if its better to wait for 900$
Goldcore has it backwards
He could be playing a trick.
Cackling away right now like the Penguin from Batman.
If Greenspan has really said its time to buy GOLD now, i would be really worried.
It would make a lot of sense, if Greenspan was Goldcore indeed
To have a former Fed chairman come out and say such a thing should cause all Americans to sit up and take notice that something is very wrong! I contend the primary reason that inflation has not raised its ugly head to become a major economic issue is because we as a society are pouring such a large percentage of our wealth into intangible products or goods. This includes currencies. If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar.
Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply. The timetable on which economic events unfold is often quite uneven and this supports the possibility of an inflation scenario. A key issue being one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment or stop driving the twenty miles to work? Answer, it could be months before your car is repossessed so you buy gas.
It is important to remember that debts can go unpaid and promises be left unfilled. If this happens where does it leave us? Chaos and major disruption would result from such a scenario. As we have seen from the economic crisis of 2008 and following many other unsettling developments legal actions can continue to drag on for years. More in the article below.
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos....
He's wrong as usual .
Big is out .
Ostrum is in .
So are healthy reserves .
The inverse of fractional Banking .
Fractional Investing .
Lose MiniMax : the minimum of the maximal possible losses .
The only real survivability is in the loyalty of persons .
Where investment should lie .
Oil and Banks are going the way of taxis .
There is an Uber waiting for them .
See why :
https://www.academia.edu/9031355/The_Were-Sheeples_Almanac
https://www.academia.edu/9031355/The_Were-Sheeples_Almanac
With this guy's track record, go short.
well someone has to say the system is not solid, so he gets the job, false of course, but I bet gold goes up, for however long, maybe quite a while. why sell now? wait and buy even. however, stocks, healthcare, are safe also.
Fed's tightening. China imploding, and I'm not the typical doomer saying this. Get out of gold while you can.
Not loosening is the new tightening? They have lowered the bar for you. We're bailing out the Euro the EU and China by letting the dollar strengthen. Which China will use the influx of dollars to buy more gold. Eventually the dollar crashes but not yet.
Thanks Lloyd for that advice.
Otrader, I don't have to be Lloyd. Traders like you make money for traders like me.
He is so full of shit yeh in 1966 he was all about gold then gets into the FED and becomes a monetarist and runs us by taylor rule. We know we should all buy PMs if you dont know that get the f out of the market
Greenspan and his ilk have destroyed the entire junior gold mining industry. The majors will be next. Any trust in gold as an asset class is doomed. Him coming out and saying buy gold is probably the final nail in the coffin. Goodbye yellow brick road.
If Greenspan dies in a forest and nobody cares, did it really happen?
The wrath of unintended consequences .
"Sheeple wear Wolfskin !"
See
https://www.academia.edu/9031355/The_Were-Sheeples_Almanac
http://andreswhy.blogspot.com/2014/10/were-sheeples-almanac.html
I will hold on my purchases until the Swiss gold referendum. The "No" vote will win, because democracy always loses (it did so in Greece, Italy, Cyprus, Scotland and Cataluña) and the cartels are powerful enough to pay all the necessary propaganda. When the No vote wins, it will sink into people that gold cannot even serve as reserve for central banks. The political move of Swiss gold bugs is so ill advised that will fire back on them and the rest of the world gold bugs. I will therefore buy gold in December, at $900/oz.
Trying to atone for past sins...he helped lock us all in the crowded theatre, stood by while it was doused in gasoline and set on fire...
And in a moment of last-minute guilt, he points out the exit to those who can hear him, and hopes that small mercy will save his soul.
GREENSPAN IS DOING A DEATHBED CONFESSION.
I bet he is going to die soon and he knows it.
Good timing, Greenie.
Alan Greenback is speaking to the elite.
He's saying "You're welcome for the QE handout. You have less than 5 years before collapse. Move to gold."
"I never said the Fed was Independent" means "Fuck the proletariat."
It means they would like to create hyperinflation ASAP and continue to enslave and impoverish the masses as much as possible as soon as possible...
Thanks for stating the Obvious you Zionist Pig!
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When Goldspan talks people listen.
Yeah,
He's been right about everything else, right??????
What about in 1999 when it was $256/oz and Greenspan was juicing the daylights out of the money supply and destroying the US economy?
Now you're helping us out Alan?
Well people did listen to him then i guess.
i mean it totally fucked them, and all of us over.
this time however he seems atleast a tad reasonable.
gold at $17 per ounce over spot or $19 over spot per ounce under 10 ounces. OPM bars are where its at
http://www.bgasc.com/category/1-oz-gold-bars
Anyone have a good place to buy bullets at a good price
Switzerland backing their currency with Gold. Russia and China accumulating metals. Doesn't mean GLD won't be printed to infinity. Will the paper price and the metal price diverge? Will they stop printing GLD? Who the fuck knows...
Russia and China will lose. they have many debt denominated in $$$$.
when SHTF, they will be forced to sell their gold to the US @400$ and from there it can go to 4000$. not before