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4 Mainstream Media Articles Mocking Gold That Should Make You Think
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
For those of you who have been reading my stuff since all the way back to my Wall Street years at Sanford Bernstein, thanks for staying along for the ride. I appreciate your support immensely considering that I essentially no longer write about financial markets at all, and for many of you, that remains your profession and primary area of interest.
There are many reasons why I stopped commenting on markets, but the main reason is that I started to recognize I wasn’t getting it right. In fact, in some cases I was getting it spectacularly wrong. Whenever this happens, I try to isolate the problem and fix it. In this case there was no fix, because much of why I was no longer getting it right was rooted in the fact that my heart, soul and passion had moved onto other things. My interests had expanded, and I started a blog to express myself on myriad other matters I deemed important. Providing relevant market information needs intense focus, and my focus had shifted elsewhere. I recognized that I wasn’t intellectually interested enough in centrally planned markets to provide insightful analysis, and so I stopped.
This doesn’t mean I won’t start up again. When central planners do lose control, I may indeed become far more interested in opining on such matters. Time will tell. In the interim, financial markets do still play an important role in the bigger picture of social, political and economic trends I passionately care about. The stability and increase in financial assets (stocks and bonds) is of huge importance to the propaganda machine, in particular keeping the non-oligarchic, non-politically connected 1% in line and believing the hype (see: The Stock Market: Food Stamps for the 1%).
So while I won’t claim to know when the paradigm shift will begin in earnest, I do rely on people who have gotten macro forecasts right, and there is no one better than Martin Armstrong. Years ago, he was saying that nothing goes up in a straight line and that gold would experience a severe correction before beginning its real bull market. We are seeing his prediction unfold before our very eyes. What he also said is that as gold approached the $1,000 per/oz mark or even below, everyone would proclaim that “gold is dead” and start making comically bearish statements. In a nutshell, negative sentiment would plunge to levels not seen in years, if not more than a decade. We are starting to see this now.
Here are four mainstream media articles that provide some evidence we may be approaching a sentiment low. Some of them I’m sure you’ve seen, others perhaps not. What amazes me is how they’ve all come out within the last two weeks.
1) From the Wall Street Journal: Let’s Be Honest About Gold: It’s a Pet Rock
Here are a few choice excerpts:
Gold is supposed to be a haven amid hard times and soft money. So why, even as Greece has defaulted, the euro has sunk against the dollar, and the Chinese stock market has stumbled, has gold been sitting there like a pet rock?
Many people may have bought gold for the wrong reasons: because of its glittering 18.7% average annual return between 2002 and 2011, because of its purportedly magical inflation-fighting properties, because it is supposed to shine in the darkest of days. But gold’s long-term returns are muted, it isn’t a panacea for inflation, and it does well in response to unexpected crises—but not long-simmering troubles like the Greek situation. And you will put lightning in a bottle before you figure out what gold is really worth.
With greenhorns in gold starting to figure all this out, the price has gotten tarnished. It is time to call owning gold what it is: an act of faith. As the Epistle to the Hebrews defined it forevermore, “Faith is the substance of things hoped for, the evidence of things not seen.” Own gold if you feel you must, but admit honestly that you are relying on hope and imagination.
Recognize, too, that gold bugs—the people who believe in owning the yellow metal no matter what—often resemble the subjects of a laboratory experiment on the psychology of cognitive dissonance.
So, if buying gold is an act of faith, how much money should you put on the line?
Anything much above that is more than an act of faith; it is a leap in the dark. Not even gold’s glitter can change that.
Think about some of the words and phrases used in this WSJ article:
“Pet rock.”
“Greenhorns in gold (greenhorn means a person who lacks experience and knowledge).”
“It is time to call owning gold what it is: an act of faith.”
“Gold bugs often resemble the subjects of a laboratory experiment on the psychology of cognitive dissonance (this is actually true in many ways).”
Condescending as the entire article is to gold owners, he even goes so far to quote the Hebrew Bible!
Moving on.
2) From the Washington Post: Gold is Doomed
When you think about it, a bet on gold is really a bet that the people in charge don’t know what they’re doing. Policymakers missed yesterday’s financial crisis, so maybe they’re missing tomorrow’s inflation, too. That, at least, is what a cavalcade of charlatans, cranks, and armchair economists have been shouting for years now, from the penny ads that run on the bottom of websites — did you know that the $5 bill proves the stock market is on the cusp of crashing? — to Glenn Beck infomercials and even hedge fund conferences. Indeed, John Paulson, who made more fortunes than you can count betting against subprime, has been piling into gold for six years now, because he thinks “the consequences of printing money over time will be inflation.” They all do. Goldbugs act like the Federal Reserve’s public balance sheet is a secret only they have discovered, and that it’s only a matter of time until prices explode like they did in the 1970s United States, if not 1920s Germany.
But economists do, for the most part, know what they’re doing. Sure, they missed the crash coming in 2008, but that wasn’t because they didn’t understand how bank runs work. It was because they didn’t understand that unregulated lenders had become vulnerable to runs. And the economists who haven’t forgotten their history knew that this inflation fear mongering was all wrong too. Specifically, there’s a difference between the central bank buying bonds, a.k.a. printing money, when interest rates are zero and when they’re not. In the first case, money and short-term bonds both pay the same amount of interest — none — so, as Paul Krugman has explained over and over again, printing one to buy the other won’t change anything. Banks won’t lend out any new money, and will just sit on it as a store of value instead. That’s what happened when interest rates fell to zero in 2000s Japan, and it’s what is happening now in the U.S., U.K., Japan, and Europe.
It almost makes you feel bad for the goldbugs, until you remember that some substantial number of them are just trying to scare seniors out of their money. But the ones who aren’t really thought the 1970s showed that gold went up when inflation did, so the fact that gold was going up now meant inflation couldn’t be far behind. They didn’t understand that the price of gold doesn’t depend on how much inflation there is, but rather on how much inflation there is relative to interest rates. So now that rates are rising, gold, as you can see below, is falling. Wait a minute, rates are rising? Well, yes. The Federal Reserve hasn’t actually raised rates yet, but it has talked about it enough that markets have reacted as if it already did. That’s been enough to make real rates positive again.
While I agree that many gold bugs do deserve the criticism they get, it’s interesting to see the way in which the Washington Post demonizes them as:
“Just trying to scare seniors out of their money.”
But the purpose of the above article is less about demonizing gold bugs, and more about praising the existing system of crank central planners that no one other than starry eyed pundits and thieving oligarchs actually support (see: “Revolution is Coming” – The Top 20 Responses to Jon Hilsenrath’s Idiotic WSJ Article).
Here are some examples:
But economists do, for the most part, know what they’re doing.
Paul Krugman has explained over and over again, printing one to buy the other won’t change anything.
This story is far from over, as the Fed has yet to raise interest rates. Talk to me about victory when rates normalize.
Moving along to the next article:
3) From Bloomberg: Gold Is Only Going to Get Worse
The problem for gold isn’t just that prices are dropping. For many, the metal also has lost its charisma.
Prices will drop to $984 an ounce before January, according to the average estimate in a Bloomberg News survey of 16 analysts and traders. That would be the lowest since 2009 and a 10 percent retreat from Tuesday’s settlement. Speculators are shorting the metal for the first time since U.S. government data began in 2006, and holders of exchange-traded products are selling at the fastest pace in two years.
“Gold is out of fashion like flared trousers: no one wants it,” said Robin Bhar, an analyst at Societe Generale SA in London. “It’s not going to collapse, but we think it is going to be at a lower level in the not-too-distant future.”
“Gold is a weird relic of antiquity,” said Brian Barish, who helps oversee about $12.5 billion at Denver-based Cambiar Investors LLC. “It’s not a commodity that has much fundamental demand. It’s pretty, so people use it for jewelry. But it’s unlike iron ore or oil, or copper, or corn. There’s not specific end-use for it. People just like it, so it becomes a discussion about fervor.”
Let’s once again highlight some of the terminology used.
The metal also has lost its charisma
So now it’s magically turned into a human being as opposed to a pet rock.
Speculators are shorting the metal for the first time since U.S. government data began in 2006
“Gold is out of fashion like flared trousers: no one wants it.
“Gold is a weird relic of antiquity.”
Finally, for the last article. This one takes on more of the tone from the WSJ article, basically just calling gold buyers imbeciles.
4) From Market Watch: Two Reasons Why Gold May Plunge to $350 an Ounce.
CHAPEL HILL, N.C. (MarketWatch) — Gold bugs, who have just begun to digest bullion’s more than $100 drop over the past month, need to prepare for the possibility of an even bigger decline.
That, at least, is the forecast of Claude Erb, a former commodities manager at fund manager TCW Group, and co-author (with Campbell Harvey, a Duke University finance professor) of a mid-2012 study that forecast a plunging gold price. They deserve to be listened to, therefore, since — unlike many latter-day converts to the bearish thesis — they forecast a long-term gold bear market when it was only just beginning.
You might think that, with gold now trading more than $500 lower than when the study was released, Erb would declare victory and leave well enough alone. But Erb is doing nothing of the sort. Earlier this week, he told me that the gold community now needs to consider the distinct possibility that gold will trade for as low as $350 an ounce.
Erb uses the five well-know stages of grief to characterize where the gold market currently stands. Those stages are denial, anger, bargaining, depression and acceptance, and he argues that the gold-bug community currently is in the “bargaining” stage.
Erb imagines them saying the functional equivalent of: “So long as gold stays above $1,000 an ounce, I’ll go to church every Sunday.”
Over shorter terms measured in years, according to their research, you must take seriously the possibility that gold won’t just drop below $1,000 an ounce but, eventually, to a far, far lower price as well.
Some choice quotes to think about:
The gold community now needs to consider the distinct possibility that gold will trade for as low as $350 an ounce.
Erb uses the five well-know stages of grief to characterize where the gold market currently stands.
“So long as gold stays above $1,000 an ounce, I’ll go to church every Sunday.”
This is pretty much peak condescension, and once again, notice the religious imagery.
Gold won’t just drop below $1,000 an ounce but, eventually, to a far, far lower price as well.
I didn’t write this article to “call the bottom in gold” or anything like that. I merely want to flag these four articles due to the hyperbolic nature of some of the statements made (they are exhibiting pretty much exactly the same behavior as the gold bugs they mock do). I do think that something is happening on the sentiment front that warrants we are closer to the bottom that the mid-stages of a bear market.
While I certainly accept that gold prices could fall further from here, I don’t think they will go anywhere near $350/oz, or $500/oz. If Claude Erb cares to make a public bet with me on that, he can find me here.
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Patriotism is dead.
Long live gold!
First they mock you, then they HFT dump on you during illiquid hours, then they buy all the phyzz, then they impose capital controls, then Bernank flees to B.V.I., then Hillary gets elected, then Americans work 364 days of every year to pay off the budget deficit, then you flee to B.V.I., then you get a blowie from a native in the jacuzzi while the Carl's Jr voiceover dude watches, then you win.
A little context would help.
These articles are written by people who don’t own gold and are convincing themselves it’s a good idea, but to have that view you must not be paying attention.
Anyone who wants to write on an investment, stocks, precious metals or bitcoin, should own at least a little first.
Few things validate gold's inherent value more than the fixation baseless fiat banksters and their shills have on it.
How a "pet rock" could cause such consternation is actually no riddle at all.
< Central planners don't know what they are doing.
< Central planner know EXACTLY what they are doing.
Which do you fear the most?
Wow, good question. When I was a kid trying to make sense of a chaotic world I had an epipheny: 'my god, there's no one in charge of the world'. It was a horrifying thought. 'we're doomed'.
Many years later I was struck by a more horrifying realization: there ARE people in charge, and they have chosen this reality and kill/lie/cheat/destroy for their own benefit. 'we're doomed'.
It's basically whether you believe in incompetence theory (like most people) or conspiracy theory. In the case of central planners they're actually both: in charge and incompetent. They think they know what they're doing, but it's a complex system in flux. So you know what? we're doomed.
Well said, causixoid. The real difference between folks is that a few are sociopathic, while the other 99%+ have no idea what a sociopath is. Oh, they know a psychopath, like a movie theater killer, but not the Snakes in Suits that are after everything you've got. Old oriental saying (reversed);
Man, who does not know when enough is enough, will never have enough. (like a black hole)
Man, who does know when enough is enough, will always have enough. (Enough means that one does the best they can, without crossing over into lyin', stealin' or killin'.)
GOLDISM!!!!!
~"The metal also has lost its charisma"~
I didn't believe this at first but after checking the bottom of the safe I found out that yup, there was all of gold's charisma puddled down low in one corner. /sarc
I sure hope it loses its charisma down to the low eights. Hell, I'll settle for $850. Come to daddy, you sweet baby you!
the lower it goes the larger my stack.
That's what 'she' said!
Hey forgetabou gold. I'm waiting for Bitcon to get back to $1000/usd+ so I can buy buy buy.
I know for a fact that they don't know what the fuck they are doing. I was at FRBNY in 08 during the crash and everyone had that deer in the headlights look.
That's a comforting thought. I'm more afraid that they DO know what they're doing and it's all part of their plan to fuck us harder.
Supernova Born
Indeed, nice observation.
The best suggestion I have gotten yet (and very recently) is to "only buy as much gold as you understand." *
* Or until your wife makes you stop. So get crackin'!
Or better:these articles are written by people payd by the 1% who are staking gold and want to pay the lowest price, because they know better than everybody else what's is coming.
The gold and silver miners of the world are already at the brink of calamity right now with current prices. Three digit gold and one digit silver implodes the entire industry...world wide. The consequences for mining jobs must be known by the Central Banksters, but they believe the higher priority is fiat, and the control of the fiat system must be preserved regardless of collateral damage. I also suspect the banksters would love to see the whole PM dealer industry evaporate as well. They do not want an alternate monetary system to exist, let alone thrive. Of course, a declining gold price may cause the other nations of the Earth to lose interest in reclaiming it´s physical gold supposedly located in the vaults of the NY Fed. They want nothing more than do dodge the repatriation bullet
It will be interesting to see how paper PM´s maintain their price levels when the physical supply dries up like a lake in California. Parker Schnabel, Todd Hoffman and Tony Beets may have to change their show from "Gold Rush" to "Fossil Rush". No matter, I´m still trading my paper for phyzz for as long as supply is available. We shall see who wins.
Gold and silver are found during the mining of copper and numerous other industrial metals.
I suppose the industrial world must grind to full stop if the baseless fiat banksters' dream of "A World Without Gold" can ever be realized.
Clearly it is much safer to own mountains of paper printed with fancy ink
or better, to have electronic deposits whose balance depends on the keystrokes of criminals
rather than a precious metal, with no liabilities attached, that cannot be manufactured by fraud,
and has served as money for thousands of years
They never repatriate the FRN's. Funny that.
"own mountains of paper printed with fancy ink"
No thanks, I'll take the mountain. Then I'll find something of value
"First they mock you...."
Still laughing. Great one.
Laughing is now illegal, LTER. Looks like I'll be seeing you and nmewn in Camp soon.
So how come these same genius commentators are not singing the same song regarding the buying power of fiat paper?
So pet rock? Look at any chart on buying power of a dollar bill.
So sing an equal swan song on the death of purchasing power Y/Y? The manipualted inflation. Gold to $350 I doubt. But if gold goes down to $1000 you can gaurantee that your rent will explode, food prices are higher than ever,
$350/oz implies an almost 80% wipeout of current US debt of $18.25 Trillion. At some point, bank deposits would no longer be available or gold won't be (oh yea, the mint already sold out of silver). At the current $1092/oz., gold is on sale. 33% off! When the next stock crash hits, gold will start discounting the next QE.
You can read through PM forums in other countries to see how jealous they are of the $USD buying power when stacking. Coincidence China is buying gold after dumping treasuries? Next look at online PM stores to see how their stock, smaller increments priced closer to spot, goes out as prices dip further. Keeps dipping, more is sold out. Never seen anything like that with Xboxs, furbies, beanie babies, magic cards or anything else for that matter.
Over here in Los Angeles rent is already exploding, food price are soring and gas is going up up up.
There is a clue here, and it has nothing to do with shiny metal's charisma or lack of. If trees could speak they would say humans are all idiots.
I find it difficult to understand how anyone will take financial advice from a person making $45,000 a year writing for a newspaper who is - for lack of a better term, consistently broke?
The goons writing these pieces are getting kickbacks. Its at least $1500 to include just a website link into one of these fake MSM articles. I imagine writing a fake article to control a commodity's price is a somewhat larger payday. I have a decent idea how this works on these financial sites, and have a very good understanding of how this works in other trades, like the gaming world.
Have to pick and choose how you want to interpret what you read on the internet.
"It’s pretty, so people use it for jewelry. But it’s unlike iron ore or oil, or copper, or corn. There’s not specific end-use for it"
Interesting that Bloomberg ignores silver in that list.
gold = EXPENSIVE shiny lead
Tungsten would have been a better, but equally stupid, illustration.....
I suspect a lot of gold out there actually IS tungsten.
Prober= man with small,penis seeking little,boy for fun.
Use lead to get gold, cheaper on the front end. If you're into that kinda stuff
You should go to sleep, you are going to be late at your job at JP Morgan tomorrow .
the mortar of a bullish bottom?
leave my wife out of this...
Just like shooting a lion, progressives want to be chipped. Because the European Union is so cool.
Let's all get chipped, drunk, and stupid - RFID ...
It looks like I gave up drinking at a good time.
The parasites doth protest too much, me thinks!
Baltimore is a fine indication of how right you aren't.
Funny. My economics professor was economic advisor to the Australian Government when the Soviet Union invaded Afghanistan. FOr a few days there appeared to be a real possibility that America might go to war over this. My Professor recounts how he was called into Cabinet at short notice and asked what the economic implications of of a hot war between the USSR and America would be.
His immediate reply: "what are Australias gold reserves and where are they? - And he is a classic Keynsian economist!
To put that another way, Gold is a "barbarous relic" right up until it isn't. At the tipping point gold changes in a microsecond from a waste of money into the only universal currency.
FUrthermore, the mainstream media are corrupt to the core and will spin any Government propaganda they are asked to.
Ron Paul : Why do central banks hold Gold ...
It's a.... classic Bernanke response.
The Mainstream media has been mocking Gold for a long time now. Nothing new. That goes to show they're in cahoots with the FED or they're owned by the corrupt FED.
https://biblicisminstitute.wordpress.com/2014/08/24/the-corrupt-federal-...
The rate of "gold is bad" stories is increasing.
Nor do these stories really use a serious approach.
The increase and intensity of these hit pieces tells me something is up; time to buy moar!
Silver has clearly decoupled from the paper price. Premiums are greater than they have been for a long time. We are at the market floor for silver. Premiums on gold have gone up a little so we may be close to a bottom with only a little way down to go. Good time to buy both. The only way this would change is if Asians really slowed down buying because they support the physical market. There are just a whole lot of Asians who want to buy, billions of them.
You mean like if the stock market crashed, and they couldn't get their money into the safety of Gold, say because they might get shot for selling their stocks?
#41
Only 20% of Chinese household wealth is in stocks while 60% in the US. That crisis in Chinese stocks is not as bad as you may think and is motivating the other 80% to buy more gold.
By proxy all western systems public pension funds have been in the stock market since 1992. It's not 60%, it's 100%. Since everyone is printing money to prop up both pensions and markets...well...there it is.
Debt free i am not complaining if our overlords see fit to grant me another year or two at these discounted prices.
We'll be lucky to get another year or two. There's an election coming up next year, so another round of QE is likely, if the markets tank. Can't have a meltdown on the magic negro's watch. They'll wait til they can blame it on Jeb or Donald.
Just to put these prices in perspective, what they're really saying with a $350 price is that:
1) Miners will pull gold out of the ground and sell it for 1/3 of their extraction costs
2) Demand for gold is negative, more supply is being put on the market than demand, and demand is decreasing, thus the lower price.
Neither of those statements is, in fact, true. Miners do move to their high grade deposits during downturns in price to stay profitable, and lower oil prices do reduce extraction costs, but nowhere near enough to make those prices realisitic. And demand for gold on the retail level is so high it's selling out, and on the central bank level is so high that China and Russia are adding more to their reservers per year than they're mining.
So what's going on (which we all know here) is that the market is getting flooded with paper, and the MSM is publishing anti-gold stories in force. I agree with the author, this is a marker for a significant market event that's coming.
You nailed it.
You can't argue with the facts.
(You can- but you'll lose in the long run).
If gold gets to $350 houses will cost $1000. I will then gladly trade my gold for real estate.
I have to believe that there's an inflection point where paper price doesn't affect physical price.
Take, for example, the absurd $350 / oz. call... My thesis is that long before paper prices got anywhere near $350, the fact that no one - from miners all the way up the supply chain - was selling physical below some threshold would completely crash the Matrix-like world created by gold futures.
The hard part: figuring out where that threshold resides. Paper prices can perpetuate the Matrix environment for quite a while and probably lower from where prices are today.
Very well said. Right now the premiums over spot for physical metal are higher than I have seen in a while. I am paying the same price for silver Eagles as I was when silver was 18 bucks an ounce. I'll say it again...don't like the stuff, don't buy it.
OF COURSE - it's the old adage "follow the money". Who has the most to lose if gold keeps elevating in value? The Federal Reserve that's who. By pounding gold that makes more people keep their fiat (and worthless) paper. The United States is starting to panic and the last thing they need is for gold to go up in price - much higher than it presently is. So - they'll make it the bad guy and watch all the lemmings do as they please.
Who has the most to gain from cheap gold?
BUYERS!
TPTB are buying, never been a clearer signal.
Lots of pet rocks found off the coast of fla...I read that article and wondered, why would anyone want those pet rocks.
Because history repeats itself.
Or it rhymes, at least.
Following the stages of grief model, we accolytes of gold should be progressing into "depression" which seems woefully all too true including the rest of the planet.
depressions correct finance and so this one has much further to go; gold will still be the best store of value. If gold is such a putz of a deal, why are central banks still holding all of theirs? hint: not a trick question.
Historically, gold and weed have been pretty close in price. The divergence over the last 6 years or so will eventually be corrected, either by weed going up (inflation), or gold going down (deflation).
Anyone know what an ounce of good weed goes for these days?
I spray them shits with roundup bitch.
Get yo Mufukin wheel on!!!!
http://www.urbandictionary.com/define.php?term=sherm
"A joint/cigarette dipped in LIQUID PCP not embalming fluid. The embalming fluid is most commonly used to disguise the drug term PCP for non-drug talkers. REAL EMBALMING FLUID MAY CAUSE DEATH AFTER SMOKING.
"DAM ROUGE WE OUT TO BLAZE A SHERM."
"NAH...IM COO FUCK THAT PCP BULLSHIT, I AIN'T TRYIN TO BE BIG LURCH AND EAT A BITCH ALIVE"
BC weed maybe $180/oz. if you know a guy.
$20 for the gram for blue
Does anyone think we can validate Obama's polished turds to provide leverage for the next debt ceiling increase?
If the way things have been going are an indication, I would say yes those polished turds may suffice. That may actually explain a lot.
The Mighty Wurlitzer lives on
https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-publications/csi-studies/studies/vol52no2/intelligence-in-recent-public-literature-1.html
If the herd is flocking into gold, and you know that governments Worldwide are snapping it up in large purchases, it makes sense to figure that governments would want to short gold in order to keep fiat reserve currency stable whilst they keep buying the dip. Frankly, gold is being artificially kept low in price by a cartel of buyers, and shorts, so that governments can keep buying low priced gold relative to metals. Governments, and Goldman Sachs, are hoarding commodities, and precious metals.
NOTE: All anal retentive money hoarders hoard whatever they can get their hands on dirt cheap. If the price is high, they won't buy. If the price is low, watch them go.
Interesting that paper silver prices are down while premiums rocket higher. It made me curious about what the banksters are up to. Other than naked shorting, I was wondering if the might be going after miners - either shorting or trying to do outright buys of the miners.
Being that propaganda is a great indicator this is a very bad sign for everything but gold. Here ye! here ye! The banker owned media says that gold is nothing more than a pet rock! Well shit, in that case...
Today, Bloomberg points out that Gold is a relic of antiquity and has no real value. It’s more like a beanie baby or a pet rock than a tier 1 “asset.” Therefore, institutions that carry Gold on their balance sheets as an asset (US Treasury, IMF, ECB, BIS, FED, PBOC, etc.) are nothing but elaborate accounting frauds and should be shut down immediately.
A good place to start would be for the US Congress to seize and dismember the BIS. That would get the global markets’ attention and let everyone know that the United States will no longer tolerate the scam that is Gold. It is a fad and not an “asset” and has no place on a bank’s balance sheet. Any institution claiming otherwise is a rogue criminal organization operating an accounting fraud.
The only way to stop the ECB, PBOC, IMF, BIS, etc. from continuing the fraud is for the U.S. Department of Justice to get out there and start putting bankers in jail. There’s already a facility for them all in Guantanamo …
Watch Gold fall to zero as all the central bankers are rounded up and sent to prison for re-education.
http://www.bloomberg.com/news/articles/2015-07-28/gold-out-of-style-like-bell-bottom-trousers-signals-lower-prices
Guess I just bought my first 2 "pet rocks" today. For a very small investor like me those Sunshine 1 gram bars on sale at JM Bullion this week is a big time buying opportunity.
When you think about it, a bet on gold is really a bet that the people in charge don’t know what they’re doing. Policymakers missed yesterday’s financial crisis, so maybe they’re missing tomorrow’s inflation, too. That, at least, is what a cavalcade of charlatans, cranks, and armchair economists have been shouting for years now, from the penny ads that run on the bottom of websites — did you know that the $5 bill proves the stock market is on the cusp of crashing? — to Glenn Beck infomercials and even hedge fund conferences. Indeed, John Paulson, who made more fortunes than you can count betting against subprime, has been piling into gold for six years now, because he thinks “the consequences of printing money over time will be inflation.” They all do. Goldbugs act like the Federal Reserve’s public balance sheet is a secret only they have discovered, and that it’s only a matter of time until prices explode like they did in the 1970s United States, if not 1920s Germany.
But economists do, for the most part, know what they’re doing. Sure, they missed the crash coming in 2008, but that wasn’t because they didn’t understand how bank runs work. It was because they didn’t understand that unregulated lenders had become vulnerable to runs. And the economists who haven’t forgotten their history knew that this inflation fear mongering was all wrong too. Specifically, there’s a difference between the central bank buying bonds, a.k.a. printing money, when interest rates are zero and when they’re not. In the first case, money and short-term bonds both pay the same amount of interest — none — so, as Paul Krugman has explained over and over again, printing one to buy the other won’t change anything. Banks won’t lend out any new money, and will just sit on it as a store of value instead. That’s what happened when interest rates fell to zero in 2000s Japan, and it’s what is happening now in the U.S., U.K., Japan, and Europe.
What a fucking joke. "Experts" always stick together "journalist" thinking they know what they're talking about.
What this clown tells me is that banks knowingly made bad loans got free money and are now sitting on it, and at some point will lend it out again. How bout its already leveraged up in the ponzi stock market. How hard is this to understand. Loan companies money to buy back stocks. 5he same stocks the banks own. When companies and stocks go down the banks again will just print from thin air and buy stocks at the bottom. Wash rinse repeat. JP Morgan did the same thing 120 years ago. Then he really did it 102 years ago.
Fucking "journalist" sucking off "expert" economists. Liars and clowns running a ponzi scheme is what it really is.
Not only do I have no problem admitting that my faith in gold has the character of religious devotion; in fact, I'm quite proud of that fact. When human institutions, and religions, and states fail, the gods continue to endure, along with their earthly raiment.
These stories are actually hilarious when you look at the true fundamentals of the 'stock market.'
Now, if these guys were not paid shills, they would be asking why so many buybacks? Why are so many valued at 10, 20 times the money they gross? Why IPOs on companies that do not even have a profit of any kind? What, I read a while back some guy wanted an IPO on roach coaches...
No, thanks, I will stick with haard collateral and PMs.
Demand for physical gold is high, while the price is dropping. What gives? The supply of bullion in the futures markets is increased by printing uncovered contracts representing claims to gold. This artificially increases the supply of gold, thus forcing prices down. (See:www.counterpunch.org/2015/07/28/supply-and-demand-in-the-gold-and-silver-futures-markets). US hegemony rest on 2 pillars- military strength and equally (more?) important, strength of the US dollar. Rising gold prices, along with a stagnant, declining economy and exploding deficits weaken the dollar and US global power. Given these realities, the US is desperately trying to maintain its global stature. All mainstream media outlets panning gold- WSJ, Wash Post, Bloomberg & Market Watch are part of the “team”- consisting of large corporations running things, their mouth piece- corporate media outlets, their point people in- government, the judiciary, military and police/ criminal justice system. As part of the “team” corporate media does everything in their power to maintain dollar hegemony, and thus, pan gold.
They want your gold so they are bullshiting you to sell it.
Repeat with me:
"M O T H E R F U C K Y O U"
You see? It' s easy.
Love it, this represents vindication. I like Silver more than Gold, mainly because it is actually consumed - in huge quantities. Gold is a store of wealth, Silver is money - traditionally anyway. These types of articles represent an ignorance of history and a blind love affair with fiat currencies - good for them, I prefer to buy low so these articles are fantastic. I'd love to see Gold hit $350/oz - of course it won't because we don't have enough time left before the fiat/financial system crash - maybe we make it to $750. Regardless, I continue to buy both and have been for almost 24 years and have never sold any of it during that time - accumulating this stuff, along with other important commodities will make a huge difference when TSHTF - and that's coming fast...
Why don't all these great economist sign an open letter to the world's governments telling them to liquidate the CB gold holdings and use that money to stimulate the global economy. Kill two birds with one pet rock stimulate the economy and get rid of a worthless piece of rock costing tax payers to store..................didn't think so
They are FULL OF SHIT!
If they want us to sell our GOLD and SILVER, all you have to do is raise the price by 200% and I'll sell all of it for some other assets.
I wouldn't call Amb. Lee Wanta a gold bug. At the same ask him yourself why he owns 2000 metric tonnes himself. Purchased cheap via the former Soviet Union ..
http://wantarevelations.com/2014/04/wantasellsgold/
I, too, have noticed a marked increase in the media rhetoric downtalking PM's. This same media is conspicuously silent in regard to the hundreds of frothy stocks selling at multiples of 100+. I would put more credence in the analyst bashing gold if that analyst came back with another article that brought to light the fact that the NYSE new lows are swamping new highs by over 10 to 1 as it was last week. What these idiots are paid to do is "disinform". I try to avoid formulating financial plans on opinionated articles. Personally, I put PM's in the same category as ammo and insurance. Nice to have around, "just in case". Back in his day, I think Noah looked pretty rediculous for years....
"I recognized that I wasn’t intellectually interested enough in centrally planned markets to provide insightful analysis, and so I stopped."
I hear that. I couln't have said it better myself. This is the very reason I stopped writing the Hindenberg Omen blog on Seeking Alpha two years ago, after 4 years of reporting. I finally realized that the banking community had come to the point where they simply could not let the markets fall as much as 3%... or they would die. 90% of stocks below their 50 day moving average... and the market just continued chugging ever higher... more than once. Are you fucking kidding me? Yes... you were kidding me... but you were not fooling me.
http://seekingalpha.com/instablog/357305-albertarocks/2133652-hindenburg...
This is the very reason I stopped writing and publishing articles on my own blog that covered just about any topic on technical analysis that I felt like writing on any given day. The bankers had literally destroyed the true value of technical analysis. It no longer worked because the markets all over the world no longer reflected true natural forces of supply and demand. The bankers had removed any possiblity of true price discovery. TA will never work again until the bankers finally lose control. WHICH THEY WILL. When that day finally arrives, I have a hunch I might start writing again.
http://albertarocks-ta-discussions.blogspot.ca/2012/01/blog-post.html
This is the very reason I just walked away from these incredibly dangerous markets two years ago... just to make sure I survive. My cash is not in the markets other than in miners that are in a position to survive 'any' price of silver. Such as Alexco Resources, who have developed the brilliant strategy of doing reclamation of former mine sites for the Government of Canada. This revenue is constant, it is reliable and it is very lucrative. And all this revenue is being used to further Alexco's silver discoveries in the incredibly rich Keno Hill Silver District up in the Yukon... which Alexco owns.
http://www.alexcoresource.com/s/Home.asp
My cash is not in any bank. I have no investimens in real estate. All I have is a lovely new black Ford F150 with that smokin' hot EcoBoost engine. And I take that baby on fun trips into the beautiful wilderness of the Alberta mountains every chance I get. And I have some silver. Probably more silver than that truck can carry.
Yep, I'm going to end up in great shape while Goldman Fucking Sachs and JP Morgan go the way of Citigroup... crashing 90%, do a reverse split, crash 90% again. It's called deflation you bastards, and you're about to pay the price for your sins. Have fun JP. Best of luck BAC. Sucks to be Sachs.
Why do I own silver when I'm expecting a deflationary cycle of biblical proportions? Just watch and learn.
I'll think of all you banktards and thoroughly enjoy watching the whole bunch of you criminals crash and fucking burn to a crisp while I sip some cold ones from my perch high atop some mountain, breathing fresh air while watching you fuckers rot. I'm really going to enjoy that. You aren't.
Logged in just to upvote you!
>I'll think of all you banktards and thoroughly enjoy watching the whole bunch of you criminals crash and fucking burn to a crisp while I sip some cold ones from my perch high atop some mountain, breathing fresh air while watching you fuckers rot. I'm really going to enjoy that. You aren't.
My sentiments exactly except I'll be in a lovely cabin in the Russian taiga.
Alberta, I upvoted your comment and concur with your observations.
Your ALEXCO mention is interesting (down from $9.67 to 0.42 in 4 years) but can you comment on this article from 12/2014? (and things have only gotten worse since then)
http://seekingalpha.com/article/2777105-update-alexcos-updated-pea-doesn...
Question is how much lower can it go? Values sure get frisky on penny stocks. Thx!
Thanks for the upvote. Well first of all I should emphasize that I'm a technical analyst through and through. I "usually" don't care as much about fundamental analysis, although if I can understand it, in many cases I will listen. The primary theory behind technical analysis is that no matter what news or opinions all of us have ever heard in the past, or will hear in the future, the record of INVESTOR reaction to those pieces of news and rumours are all reflected in the charts. So it doesn't matter one iota what the talking heads say... I don't even waste my time listening to the jokers in the MSM.
Nor have I 'ever' cared about the opinion of others. And I say that respectfully, because there are many great fundamental analysts out there, each of them drawing a different conclusion. To me, all those opinions are just noise. I just don't care if they like a stock or not. Except in the case of Alexco... Eric Sprott likes it and to me that is a very important fact. I like Sprott and I trust him immensely (I'm not trying to infer that I know him. I don't.)
The question is whether or not any particular chart looks at all promising... and in the case of miners... I really want to know if they will even be able to survive this incredible assault on precious metals and all commodities in general. Let's face it, we're on the cusp of a major global deflationary event. I referred to it as an "assault", but in reality this global deflationary cycle is 100% a purely natural reaction to an insane inflationary push by the banking idiots. And that's baically because 99% of all 'money' in the solar system was created out of thin air. A deflationary implosion is nothing more than those dollars getting sucked back into that imaginary void that they were birthed from in the first place. Dollars literally vanish off the face of the earth. And it's the bankers' final reaction, their final gasp that would cause the hyperinflation which would follow... the final death of currency.
In any case, basically that's what the bankers are trying to do... drive miners right out of business. Many of them will fail, especially those with a ton of debt and they don't even have an operating mine yet. All they have is proven resources. But many will never get a chance to mine those resources before they go bankrupt... poof. Just setting up a mine will take another $250M. So the day IS going to come when gold and silver come under intense demand, and there won't be very many mines ready to deliver for years. It will be a fun ride.
In any case, again, this is why I love Alexco. Of all the miners with a ton of reserves, Alexco is the only primary silver producer in Canada, and they're sitting on a motherlode. Not only that, but they ALREADY DO HAVE an operating mine. It is shut down at the moment, but they will bring it back on stream once silver gets back up to about $25 CDN. In the meantime, their minesite reclamation branch just continues to rake in hefty profits. Basically Alexco will never go broke, even if the price of silver drops another 50%. On top of that, billionaire silver guru Eric Sprott is a major shareholder. If any company is good enough for Eric Sprott, it's good enough for me.
Yeah, penny stocks are frisky as hell. I never used to buy them. Today that's all I'm trading... and on a very small scale. When the stock markets finally crack and drop 75%, it will be the majors who will take the brunt of that. Faceplant, Twitter, Google, AAPL, the entire banking sector, insurance companies... all of them will get slaughtered and that's where most of the losses in the stock markets will come from... the great big 'darlings' that all the pension funds have soaked up. Most tiny little pennies won't even feel the crash.
Anyway...l those are my thoughts. I'm flattered that you even wanted to hear them. Thanks for that :-)
Here is why gold prices are artificially low:
http://michaelekelley.com/2015/07/20/dear-fed-plz-raise-gold-price/
http://www.zerohedge.com/news/2015-07-09/are-big-banks-using-derivatives-suppress-bullion-prices/
Here are some more signs of a coming recession.
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record...
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
http://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/
http://www.zerohedge.com/news/2015-07-27/when-will-we-ever-learn/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
Why is it ok for a company like Apple to keep $200 Billion cash under the mattress but it's not ok to hold Gold , because Gold just sits there doing nothing?
OK this may be a bit lengthy bit I am sick to death of reading articles about gold, and it seems to me that virtually no one understands how to use gold.
Except one very specific group who I know, understand gold.
Central banks.
There is no central bank on the planet does not own gold and buts at every opportunity.
Even gold pundits and the third rate floggers of gold and their risible arguments for owning it haven't a clue.
My father grew up in a small rural village, never saw gold until at 18 joined the air force during the war and got shipped off to India as an engineer.
Saw real shit, death and poverty on unimaginable scale but also noticed how many Indians had gold.
Got to understand it.
After war finished engineering degree worked for a company and rose to chief inspector then spend 20 plus years traveling the world with his job.
Smart, cynical, he had heard it all before, He2 could smell bullshit at the far side of the moon, and he wasn't coy about telling any bullshit purveyors to fuck right off.
When 17 he bought me an eagle, and told me to remember two things.
Always save in gold and get a house early. They are basically the same thing.
No one gets scared shitless when their house value goes up and down, they ride it out unless you are dumb enough to buy the BFATH and take on a 125% mortgage without any fucking income.
You don't flog the house and live on the street next day because y6ou expect the price to fall a bit.
A house is the same as gold, except you can live in it, it costs more to maintain and you can add to it, at least you can in chunks,, like an extension after the pay the parasitic cunts in city hall to grant you permission, Or you can move to a larger house, and maybe if you are lucky even a mansion in later years.
Houses have always been a good investment long term and always has been because you use it and it should maintain value, a recognized store of wealth.
Gold is the same, except you cant live in it, it costs a little to maintain, but you can add to it brick by brick, even as small as a few grams..
I never think of gold changing in value, only currencies change.
Show me a central banker that print fucking gold. Currencies are manipulated, not real physical gold.
But you need to know how to use it.
By 23 I had started buying 1oz bars every couple month or so, and saved them and it slowly grew did my gold house.
In 2006 I figured the economy was about to crash and took steps. I sold all my gold, went overseas and opened a new out sourcing company there and transferred all the cash off shore and then bought gold with it all. gold is portable unlike a house, easily and quickly.
Now every cent of income is paid to the off shore outsourcing company and every cent over running costs passed to another company I have that every quarter spends every bit of it buying gold.
The gold still with security tags is held in a private vault and I now have a private lender who advances cash in any currency instantly against the 45% of that gold collateralized with them.
Result, since 2007, the quantity of gold has risen at 14.3 % per quarter compound until last June 25th
I don't care what the $ does, its risen against almost all currencies except the fucking shekel this year, so guess what the jews are doing. But against other currencies little change.
I hope the $ fucking manipulated to fuck by the fed doubles in value against gold. I just means my gold grows faster , but as far as using gold to run the business, the entire cost ie my entire income is turned into gold and operations financed by borrowings against that gold. It is entirely put down as stock, and as the out sourcing company and my company here makes no profit, then taxes have been zero since the first day. No capital gains tax as i never ever sell gold, No need, I can get as much cash as I need anywhere in the world using that gold, no one will refuse its security.
Use gold right and you can make a fortune, every fucking fiat goes up and down and remember every fucking banker on earth is committed to devaluing currency through inflation. What fiat will ever rise in value enough to get back purchasing power 10, 20 or 30 years ago. Not a single fucking currency ion the planet
Fucking hell, gold would need to fall to less than $100 an ounce before it possibly hurt me,
If you don't know how to use gold buy fucking fraudulent stawks and bonds, if you do build you fortune on it tax free and off shore.
If you own gold, you are a 'gold bug'.
If you own a gun, you are a 'gun nut'.
If you own neither, you are a 'progressive'.
I own both and am progressive .
I've been bearish for a while, but I must say, those articles are a sign that Gold is close to a significant bottom.
Have to wonder at the MSM, the program they are now tasked with is to enure the general population of the USA doesnt get interested in buying gold. TPTB either don't want independant citizens, too much demand for gold they don't have, cash dissapearing from the system.
Now gold will not go to $350/oz .. simply because the demand for real physical gold at anywhere approaching that price would be atronomical. Gold will be bouncing to $10k before it reached $350
And that physical is gonna very hard to find at those low low prices. Physical gold is already in Central Banks, strong hands who will be topping up, not selling at lowering prices.
It's getting harder for them to manipulate the gold price with the demand, so these articles try to soften up that demand.
Pet rock has been a physical market for six thousand years and in geological terms paper/digital is a blip before midnight.
Paper will be suppressed downwards forever and always, until one day revision by diktat to $5000 or $10000/oz will give paper margin longs a big profit.
Do you think you will ever be able to collect? That your broker will do a nice little transfer of a couple million? That your bank won't immediately bail it in? That you will ever be able to withdraw it in your lifetime when ATMs are limited to $10 a day?
Stack the physical while the morons accept USD, EURO, Chink or any other fiat for it.
so where is Germany gold, why can't they give them back, where is Gaddafi 144 tonnes of gold that made these sociopaths bomb Libya back to stone age, where is Ukraine gold that was loaded in planes in the middle of the night, are you kidding me. So gold is a pet rock i always say drive it down to below 1000 and i am gone stack up! these mainstream prostitutes don't scare me anymore.
the correct term is "presstitutes" (in the msm) ;-)
Clearly, if the establishment is so Hell bent on tying to convince people that gold is worthless, then it's obviously the ONLY thing that is actually worth anything.
Plan accordingly.
Let's be clear: the authors of such articles do not care if anyone holding gold "loses" money. Just like shills that talk up their book don't care if investors "make" gains on their calls.
In this case, their only broad-brush interest is to shake loose any weak hands of the stuff. Gold, as a universal store of value, is the ultimate threat to anything denominated in fiat currency, which is everything.
You know something is up when "prices" (faux prices of GLD, that is) are falling when demand is soaring. The only way that can happen is if supply can be manufactured (via paper claims). When concert ticket prices shoot up, more seats cannot be printed to depress the price. Yet that's what we have - millions of GLD bagholders with tickets to phantom seats. The concert will start eventually - I can wait.
OT, but insightful. The Scripture quote is not from the "Hebrew Bible" - it is from the letter of Hebrews, which is a NT book (author unaffirmed). The "Hebrew Bible" would consist only of what is known as the Pentateuch - the first five books of the Old Testament (Genesis, Exodus, Leviticus, Numbers, and Deuteronomy). Just another mark of evidence that many (most?) here have no real understanding of the contents of the Book. And many (most?) of those same folks dismiss those unread contents. Selah.
I would love it if gold dropped to $350/oz. I would get a second mortgage so I could install and fill a vault with the "relic".
These articles conveniently ignore the other 90% of the world's population who will continue to buy gold no matter the psyops here in the US. Clearly, the PTB just want your gold. Simple and transparent. At their price. And their time frame might be long. That old "irrational market" thing......
Speaking of bailouts - if the TBTFs found themselves accidentally on the wrong side of a giant pile of gold and silver derivatives that they could not cover, would our always altruistic and fairness-minded gov EVER consider confiscating the public's gold (for a fair price, of course) and then give said phys to whomever was demanding delivery? Probably the other arm of the same TBTF? Nah....
Big pools of phys like in GLD would be good targets. Phys in private homes could be made illegal to buy and sell other than selling to the gov.
Biggest reason there's no price inflation: over $15 trillion has been off-shored, poised to come back in when the speculative bubble has burst and assets can be had on the cheap.
All wannabe economists needs to understand the difference between price inflation and monetary inflation!
Money is constantly being created. This doesn't necessarily mean more money is being spent.
If some fat cats make an extra trillion, chances are that it'll stay in some deep pool of capital and not really touch on the real economy.
The reason for weak gold prices is that the economy is weak, and that prices can't go up faster until unemployment goes down and people make more, allowing them to spend more.
If money is being spent at faster and faster speed we call that the velocity of money. For instance, if the economy consisted on nothing but 16 year olds with no limit credit cards, stores would see them coming and jack up their prices for everyone ASAP.
Velocity now is anemic. Paradoxically, if more money made its way to the lower classes, more would be spent and price inflation--a threat to the banks, if acknowledged--could occur.
An example would be if 10,000 people get an extra $100 each to spend through government entitlement. Straight cash. What would they do? Get out and spend it.
Contrast that with an extra 1,000,000 for some really rich dude. You can send him that kind of money and yeah, he'll buy a yacht every now and then, but the velocity and thereby benefit of spending the million will be pathetic.
Government spending works in the same way. The more they spend on military, for instance, the less economic benefit per dollar placed. Goverment purchases encourage greater and greater inefficiency.
Finally, remember that the Comex price does not reflect real demand for the physical form of the metal. Traders are simply allowed to trade synthetic derivatives based on physical assets that they don't possess. If trades were all settled in physical, the price would zoom radically.
When the Comex fraud is exposed--by the absence of physical with which to meet redemption requirements-- the price of the real physical will zoom. All it will take is the ratio of paper metals to physical to grow too big and force a short squeeze.