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In Gold We Trust - 2015 Edition
Monetary history, staggering mountains of debt, demographic problems, metrics relevant to the gold market, central bank debauchery and currency debasement in all their terrible glory, and even the beer price of gold – the latest Incrementum "In Gold We Trust"chartbook has it all...
There has been an astonishing synchronization between equity markets and the gold-silver ratio until 2011. A rising stock market almost always coincided with a declining gold-silver ratio, i.e. with silver outperforming gold. This may have been due to re-inflation being accomplished with conventional monetary policy – i.e., credit expansion by commercial banks – in previous cycles . This affected the real economy more quickly and fostered consumer price inflation. This time, re-inflation has been attempted by means of central bank securities purchases, which has led to price increases in investment assets, but has not been able to spur consumer price inflation.
Full Chartbook below...
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"In EPSON printer toners we trust" - Bernank
Ummm.....I think they still use ink. Not toner. Other than that, I take your point.
Oh, Brother.
Having bought 25 or more printers in my life, I can safely say Brother was the worst. Cheapest.....but also the worst quality printout.
Now can we get back to the topic at hand?
Fawke gold... it's teh epitome of centralization. A government hoarding all of it in one place, lying about how much they have and claiming to "back" a currency with it! You want to put your faith in something time-tested, more divisible and recognized in times like these... you want to put your trust in Bitcoin.
In debt we trust.
Incrementum publishes interesting pieces on gold. Please keep these putting out these pieces, Tylers, thanks!
The rest of you, buy gold if you do not have enough.
I was just scanning the article for the beer price of gold. Which is pretty much all I care about.
Precious metals will eventually replace a large portion of the 15 figure debt market as the prefered safe haven asset.
Simple truth is that humans lack the intelligence, diligence, honesty and integrity to maintain any type of system over extended periods of time. Especially over decades or several generations. Beyond incorporating merkle roots into a working electronic cash system, we think this is perhaps the true brilliance of Satoshi and his system.. to take the currency creation process out of human hands altogether and in effect make it a thoughtless, "matter of fact" distributed protocol shared by everyone. We were musing on what could be teh ultimate poetic justice for the status quo... out of the ashes of this system they erect their (occult) "phoenix".. the "SDR" or "new low fat bullshit gold standard" and have everyone just ignore it and continue to trade in crypto!
"But, but it's official government gold money!"
"Thanks anyway but I'll pass.."
and then you took Obama's dick out of your mouth
Hey wow brilliant comment, especially ironic.. you know... since you are teh one arguing for gov-controlled money!!
"Fawke gold... it's teh epitome of centralization. A government hoarding all of it in one place, lying about how much they have and claiming to "back" a currency with it!"
"10. As long as those who exchange values with one another have been voluntarily agreeing upon what thing is the unit of measure then their best decision has always been to choose precious metals. Gold, silver, and copper are the unit of measure that people voluntarily decide to represent that they have performed productive work. For just as the miners must perform productive work to bring this value to others, just as the smiths must perform productive work to give form to the value, just as the bankers must perform productive work to safeguard and invest the value to increase value, so too must others perform their own productive work to exchange their values to obtain the metals. This money once obtained by exchanging their productive work for it then is a value itself as it retains its ability to be exchanged again for the productive work of someone else. Each person then is the undertaker of their own personal reserve of money. They must do something to acquire it. They must do something to manage it. How they do it must be decided by their mind..."
http://ocsure.blogspot.com/2015/05/what-is-fractional-reserve.html
They must do something to manage it.
Yeah, and therein lies the rub... people invariably have trusted banks and governments to manage it. Including teh people here who want to see a return of the "gold standard". They're not into gold, they're into government & "standards". They just want the gold/paper/gold/paper scam to start over again so their grandkids can fuck the rest of the world over again. Thankfully in the age of cryptocurrency nobody will ever trust YOU, your "dollar", your "government" or your banks ever again!
We are I think on the same side of the coin.
Coinhead, here is the tale.
Those are not "banks" that are being trusted. Banking is an honest, productive, business.
Banks are not counterfeiters. Therefore, our generations are not experienced with the benevolence of banking.
I'm all for crypto currency for the same reasons and same consequences as [commodity] money.
http://www.forbes.com/sites/katevinton/2015/03/30/two-former-federal-age...
So very secure. /sarcasm.
Yeah, Brother should have stuck to manufacturing electric typewriters.
If the deflationary collapse in so-called reserve currencies accelerate, then gold will become even more expensive in the end. The periphery and developing nations are paying the biggest price now but at some point they have to depeg from the USD or collapse. They would be wise to de-peg and set up a gold/oil based currency to back their failing fiat funny money. The Saudis had best be first as they are already at beggar status:
Is Saudi Arabia Begging US Banksters for an Economic Bailout?
This seems odd.......
https://www.intellihub.com/alert-air-traffic-collision-warning-systems-l...
If not for the Fed constantly attacking gold, it would be above $2500 per ounce today. And silver would be around $60 an ounce. But high gold prices are a threat to the dominance of the US dollar. So gold must be relentlessly suppressed by attacks at 3 am at night
Paul Volcker: Gold Was the Enemy
“Gold was the enemy to me because that was a speculative vehicle while I was trying to hold the system together. [The speculators] were on the other side.”
Then and now, the gold price is viewed as the inverse price of the confidence in the system. If gold is high, it usually means something is amiss. In Volcker’s time, the high inflation and budget deficits of the 70s propelled gold from a low of $35 before 1970 to a high of $668 in 1980.
http://www.theepochtimes.com/n3/1299447-paul-volcker-gold-was-the-enemy/
Shouldn't the GSR tighten up?
Maybe not 10 to 1 but much lower than it is now.
About 15 ounces of silver to 1 ounce of gold in the earth's crust. So that ratio should be 15 to 1. But silver is an industrial material and a lot of it is used up in applications.
About 1 billion of silver bullion is available for sale today compared to about 2 billion ounces of gold.
My best guess is that gold to silver ratio should be about 10 to 12 to 1 not 77 to 1 as it is today
My guess also. "Historically", I believe the ratio was 12:1 in the Book (for the 12 apostles), which doesn't necessarily mean something, but the fact is funny ;-)
Markets distorted by Fed intervention. But then which market isn't?
Just as I predicted, this was the worst holiday weekend ever for the comment section.
We all pay the price for no "open thread"!
So the message is: we have deflation now, we may get more deflation along with more market volatility and a strong USD, then, we may get a weaker USD along with asset inflation ... at some point in the future, maybe. Haven't I read this somewhere before ... a thousand times.
When a space craft fails to reach escape velocity it crashes back to earth in a blazing ball of fire can we expect the same from the US economy. If history is anything to go by all signs point to yes.
PanicNowAndAvoidTheRush.com
One thing the report didn't mention is that physical gold appears to be drying up. This from Seeking Alpha:
Summary:Gold available for delivery at the COMEX warehouses has dropped to the lowest levels in the data's history.
The number of contracts per available ounce has also risen to over 125, which is the highest we have ever seen.
We think this is a bullish development as less gold available for delivery means that fewer investors are willing to part with gold at these price levels.
Silver, Beaches!
FED raises rates this week. Ha-ha....just kidding.
What happened to al the comments? More than half of them just disappeared!
Bottom line, buy as much physical silver as possible. The criminals who call themselves US government (FDR) didn't confiscate it last time and they probably won't this time either. It is available in small enough of a units of value to buy everyday stuff like bread and eggs.
+ 1, because I finally get to disagree (mildly) with you!
Gold is better (for a long-term Store of Value, beyond question). NO countries experiencing hyperinflation in recent years has used silver as a currency (ref: FOFOA's blog). They used their own currency, or DMs, or dollars. In Peru in the 1980s they used their currency, they spent it FAST!
You can buy 24 kt "gold shot" (used by jewelers) from:
APMEX.com
riogrande.com
Gold shot comes as small BB-like pieces, many of them are VERY small, so you can make almost EXACT transactions w/ your gold.
Or you could just buy 1/10th oz gold coins and be prepared to chop them into 1/4ths (for example).
EDIT: A possible problem with gold shot is that you either have to trust your seller (and any buyer has to trust you) OR you should know how test its purity (acid-test)
* * *
But, since NO ONE can be sure of what will happen, I do own "enough" silver for any expected contingencies. But, in $-terms, I have much more in gold.
Like the central banks do....... THEY don't store silver.
JP Morgan....it means you are a liAr, or just plain ignorANT..... posibbly an igorant liar.
Actually FDR did forbid the "hoarding" of both gold and silver. See here.
"On March 6, taking advantage of a wartime statute that had not been repealed, he issued Presidential Proclamation 2039 that forbade the hoarding 'of gold or silver coin or bullion or currency,' under penalty of $10,000 and/or up to five to ten years imprisonment."
The gold bubble has already popped.
Barring a geopolitical event, gold is likely to go below $1000 in the next couple of years, and once it does, it will not be heard from for a generation.
Keep dreaming, dude... BTW Comex is dead.
lol....I love the sound of stupid people in the morning
This paper were using is not the u.s $. We are using the FR $
For Christs sake why do people keep calling the FRN POS a u.s dollar?
At present $US 1.00 is valued at approx $FR 14- 15.00. Who knows how much when the manipulation stops... if ever.
I would LOVE if someone can find me the G/S vs Dow chart going back to the 70s!
So how come there was currency debasement and inflation with the gold standard? Heck even Ronald Reagan commented on it in "The Speech" (1964?). Why are the people who are constantly telling us gold is going to be $5,000 an ounce (or whatever), always selling their gold, at the same time they are forecasting that increase in price? If they believed what they were saying, they wouldn't be selling would they?
This whole gold thing is utter bollocks, just looking for bagholders to scam. Fuck gold.
I'll see your stupid worthless gold, and raise you cold steel and hot lead. No, you will NOT be able to buy any of my alcohol production with your stupid useless gold! I may just stab your eyes out for having the cheek to assume that you could!
FFS people, when the Western Roman Empire collapsed, there was no use for gold at all. That's why all those gold stashes are still found today - nobody could be bothered to go and dig the worthless trash up. Heck that was pretty much true for silver as well (any around tended to go into religious objects, why eventually - after centuries - Vikings were looting Churches because it was useful for their business 1,000's of miles away).
You are betting against the end of the World, and when that happens, you can't cash in.
Are you stupid or what? Heck I'd rather buy popcorn and fireworks, and enjoy the show.
Start looking past "Oohhhh SHINY!" If you are being hypnotised by "SHINY!" you won't see what's coming.
Stupid is as stupid posts......Who is selling their gold now, fool?
The reason the price of Gold and Silver are Down is that the Fed has the US money supply growing, well on paper but not in circulation and the debts that are being created will not be payed back.
If the Fed Reserve defaults.....the tax payers will be broke for years and the money (cash, gold, silver art) with them.
The world like Gold and silver as it is a storge of Value that can't be forged like the American Dollar. The War machine fights thru the Cia etc. to keep this thru coruption in all countries that trade in Oil and by default other trades but this is changing quickly.
There are still people like You who will fight die and send others children to there death to maintain this but it's becoming like catching a falling Knife. The World doesn't want GMO's and the tech gadgets that become outdated before they are in productution but hedge funds keep marketing all to remove the cream of profits from the labor of others........soon oil and gold will float to the top as assets of value and the average American will be Fucked.
Golden chart porn. Deflation since 2011... ? BAHAHAHAHA....