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Elliott's Paul Singer: "In A World Of Intentionally Degraded Currencies, Gold Should Be In Everyone's Portfolio"
Gold is reversing its earlier losses as retail sales weakness prompts expectations of moar easing to save the world. This among other reasons is why Elliott Management's billionair manager Paul Singer told a conference in tel Aviv this morning that he likes gold and the precious metal "should be in every portfolio." Noting that it has been "treated unfairly," Singer says gold should be as much as 10% of everyone's assets.
- *ELLIOTT MANAGEMENT CORP'S PAUL SINGER SPEAKS IN TEL AVIV
- *PAUL SINGER SAYS HE LIKES GOLD; SHOULD BE IN EVERY PORTFOLIO
- *PAUL SINGER SAYS GOLD HAS BEEN TREATED `UNFAIRLY'
- *PAUL SINGER SAYS GOLD SHOULD BE AS MUCH AS 10% OF A PORTFOLIO
As Bloomberg reports,
“In a world where the value of paper money is affirmatively aimed at being degraded by central bank policy, it’s kind of surprising to me that gold can’t catch a bid,” the billionaire and member of Bloomberg Markets 50 Most Influential said at a conference in Tel Aviv on Wednesday. “I like gold. I believe its under-owned. It should be a part of every investment portfolio, maybe five to ten percent.”
Singer took aim at monetary policy makers for a staggered economic recovery from the 2008 financial crisis, and what he called the "cult of central banking" in which investors turn to regulators such as Janet Yellen and Mario Draghi to solve the ills of the global financial system. And while those policies have "levitated" bond and equities, Singer is surprised by how little the investors he meets with own gold.
Confirming what Singer previously noted (at this year's Ira Sohn conference)
Every institutional portfolio should be 5-10 percent invested in gold to protect against zero interest rates that are degrading the value of paper currency, Elliott Management Chief Executive Paul Singer said on Wednesday.
Gold was the one tradable asset that has been "treated unfairly", he said at the Sohn Investment Conference, adding that his fund holds gold through options.
"Gold is the only real money," Singer said. "Gold would do well if people felt they needed some real asset to protect against inflation, government policy and/or diversification from stocks and bonds."
Singer said that seven years after the outset of the global financial crisis, governments had not yet enacted pro-growth policies, leaving central banks to run the global economy.
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Astute insights.
Gold....get it while it's subsidized.
Offer not valid in London....cause we don't have any.
If Harry Dent or Jon Nadler wants to send us some $700 gold....we'll take it.
Agreed. Along with some Ag, and Pb. Personally I have some coins, rounds, and "scrap". All of which were "lost" when my boat sank. ;-)
Anyone who doesn't realize this is clearly not paying attention, but there is never a shortage of ignorant people
+1173, Exactly.
Get ready for the slam in 3...2....1
Gold is the enemy of fiat
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/
So at some point gold will go to 3500 and then the fed will jack rates to 10% crushing every asset class? oh wait thier is this little problem of 19-20 trillion in debt and 100-150 trillion in unfunded liabilities. Own the phyical...get out of debt...secure food and water...get lots of popcorn
...have a dependable tribe and the means to defend it all. Diplomatically as well as physically. Hey MERCS are cheap these days, so be optimistic.
... don't live within easy reach of an Obama-son hood.
Gold and Silver...Check.
Food Stocks....Check.
Solar power system and water supply...check.
Disqualified in acquiring a gun. Alternative: A beautiful 41" Clay Tempered razor aharp Katana and trained to use it...Check. Up close and personal in case diplomacy doesn't work
Don't get too excited about Gold, just yet.
I'm as much of a Gold bull as the next guy and always buy something every month. However, the daily and weekly charts don't indicate any sort of big time upmove, yet.
Both charts need some more time before any sort of proper bull move can get going.
So keep your big powder dry, there's going to be a fucking boatload of cash to be made on the upside, just not yet IMO.
"daily and weekly charts..."
"boatload of cash..."
You maybe a gold bull, but I bet there are a bunch of folks here who would say you just don't get it.
What don't I get?
I'll let somebody else point out the dissonance. This is priceless.
Gold is not an investment, it's insurance. That's what you don't get.
Gold is still the preferred collateral as well! After the herd is thinned and the dust settles, rebuilding your company/wealth will require such collateral. Just like my grandfather did after WWII and I will do after WWIII. Remember, real wealth is not on any balance sheet folks.
same as it ever was!!!!
"Remember, real wealth is not on any balance sheet folks." -LawsofPhysics
You may not want your real wealth on any balance sheet, if you are wise. Why let your fiat enemies know what your real strength is in your fortress?
A prudent person will keep cash and PM, safe from the clutches of relentless or vengeful predators: Judas The Tax Collector, Litigators R US, or an Ex-Spouse. If you live long enough, and have enough Assets, chances are that at least one of these will come after you and your precious ass(ets).
Don't get Shawshanked. Best have a Plan B, that you keep to yourself.
So is it the same thing as accumulating PMs if I store other commodities like bottles of liquor, animal pelts, canned food or diamonds? Seems to me just about anything you would have found in an old wild west trading post would hold it's value just fine if times really got that tough.......of course food and water are the most valuable commodity of all.
Your holding gold so you can exchange it for more paper fiat in the future. You should be owning gold to get you through the Great Reset and, hopefully, have some hard assets left for a restart within a new financial system. The current system is terminal...as well as the Federal Reserve Note and other fiat currencies.
Holding "dry powder" now, and hoping for a cheaper entry price, is quite risky. Your better off trading your fiat for phyzz now while it is available, vs. being one minute too late, because the current system CAN collapse at any time without warning (if anything, warning signs of economic collapse are everywhere right now), and when it does, physical gold will disappear.
Any talk about charts in a government-sanciond maniplated market borders on the absurd. The last four years are the proof (if not almost everyday at 3 AM).
Even though we slavishly watch the COMEX USD numbers far too much (me included), the day will come when your net worth in this world can only be measured in ounces.
Yah, except physical is still tied to paper. So we roll our eyes and watch paper to time our buys. Same way we roll our eyes but hang on the Fed's every word like the rest of the ignorant because at the current moment they are still in control of the thing I need to buy a loaf of bread.
Boatload of cash? You really think we buy gold to exchange it for funny money later?
I told all you jackasses that I'm a buyer of Gold EVERY month (and have been for many years, high or low prices it doesn't matter).
So what point of INSURANCE don't I get? I will continue to be a buyer every month probabily till the day I die.
My chart post was designed for trading purposes, ie probabilities suggest we're still some time away from a big bull move.
Don't take it personally. If you're even percieved as saying anything against the God Au, you'll be gang-tackled by the zealots. Ultimately though, the current cost/price of gold is irrelevant. IF you believe that fiat will fail then gold will be measured in value by what it can be traded for, such as food/water/clothing/land etc. Nothing more, nothing less.
but you're still talking in terms of technicals. right now, in this 'market' technicals matter nought when you have illiquid hour slamdowns and only 5 tons left of registered in the comex
that means it only takes a rich guy, or a collection of rich guys , to come up with $180 million, buy gold ask for immediate delivery, and ITS ALL OVER.
So what are you going to do with your Gold then?
I'll tell you. You're at some point going to exchange it for CASH and then use that CASH to buy something else.
For example, Gold goes through the roof, it just explodes to some price many can't imagine. So you decide to liquidate and rotate the investment into say yield paying property. Try to buy that property for Gold, it won't happen. So you'll sell your Gold for cash and then use the cash to buy the property.
However you spin it, your Gold will have to be turned into cash some day.
When gold "explodes" so will the fiat in the current system. You won´t be richer, your just going to need a wheelbarrel. Think Weimar Republic.
https://2012patriot.files.wordpress.com/2011/08/inflation-1.jpg
However you spin it, your Gold will have to be turned into cash some day.
Which is why they'd like nothing more than to get rid of cash. Then your gold will only get you (x)digits in an account. Of course, then only terrorists will want to own it so it must be made illegal to the common man. Gold would then be relegated to barter.
Not necessarily , what if gold IS cash ,like it has been many times in history ?
"charts need some more time before any sort of proper bull move can get going."
I hear what you are saying and good that you buy some per month, but I am not too sure the charts will give you too much warning before big movements occur.
The insurance side of the value of Gold will happen in sort of a binary function: it is of no use, until it is of total use. That will corespond to the time when people are scrambling for real collateral. I am not sure how it might happen, but it might happen fast.
My allotment recommends 100%………because at this point in time ....
Go all in or go home.....but thats just me.
... he likes gold and the precious metal "should be in every portfolio."
...he likes gold and the precious metal "should be in everyone's physical possession." - fixed it for ya'. :-)
Blah blah blah..
Allow me to make it even simplier for everyone;
When fraud is the status quo, possession is the law.
this applies to every single useful asset, period.
I'd buy some moar if it weren't for the fact that I keep losing the shit.
Make no mistake, he advises investing in gold. He doesnt say take possession, so he must have real faith in the 'system'. This sort of strategy was attempted years ago with taking possession of stock certificates, but no one does that anymore. It could not work with certificates because of all the naked short selling. And if you ask a broker about physical gold, they cant even make good on that because their institution only deals in paper or electrons. No one ever takesdelivery, they say.
personal question.
Which is priority?
A) Pay off Debt?
B) Buy more gold?
Im breaking even every month due to high rent. Im making payments on my student loans but if paying off debt is the priority, no more gold for me for like 30 years.
vq1.... i might have a solution for you that will 1. pay off your debt and 2. buy you some gold... I'm doing it and it works
all you need is an open mind and a bit of gold in your viens
www.teamramgold.com/about-us get in touch with me
Thanks Ram,
Unless you offer 3% or less over spot on OZ and $0 shipping I have someone else I work with. Best of luck.
If you are willing to do a bit of network marketing and refer a few people, you could end up getting you bullion for "free"...
dont dismiss it, its working for me..
Gold is the ultimate fiat. Since it's useless for anything but storing, it's never used up, it's worth is entirely determined by desire and greed.
If it's the ultimate hedge, then why in 2008, during a WORLD financial crisis, did gold DROP in value?
Are you suggesting that PMs don't get used as commodities? LMFAO!!!!
Yes, in 2008 the price crashed. Now remind us, what happened in 2009/2010? How has gold done over a 10, 20 or 30 year period?
How long do you expect to live, what about your kids?
PMs remain the preferred collateral even today. Or are you really going to be dumb enough to despute that to dipshit?
LOL!
They don't understand it was the paper gold price that crashed not physical.
There is a large misunderstanding as to what 'FIAT' is here lately. It seem some people think all money is 'FIAT'.
I was trying to explain this to Gilnut yesterday. That a FIAT is backed by no commodity only empty promises. A gold coin is not FIAT because it is itself a commodity and will always have value.
A Federal Reserve Note (FIAT) is not a commodity / backed by a commodity, it has no value other than that placed on it by a government.
I will explain using a Silver Dollar. Right now a US Silver Eagle has a FIAT value of $1. That same Silver Eagle on the other hand has a real moneytary value of $16. (not including current price premiums)
Paper gold?
There is no difference. Or are you saying that that despite the price of "paper" gold today of $1170 today, that physical is $1700?
Yes there is the commodity value of gold, but it's also that commodity value that is supported ONLY by emotion and greed. Gold isn't a commodity that's used for anything except luxuries (12% of annual gold production is used industrially). When the world goes to shit, luxuries are the first things to plummet in value.
" Or are you saying that that despite the price of "paper" gold today of $1170 today, that physical is $1700? "
This is closer to the truth, yes. By paper I was refering to the speculative derivative non physical paper market.
Emotion and greed drive most human behavior, so this is not unique.
And you said it yourself, gold is a commodity. Therefore not a FIAT. And you are absolutely correct about its uses, but for some reason going back forever, humans value gold. Even before the advent of money, the shiney metal was prized. Why do you think that is? Why do you think that has changed now for some reason?
I personally think Silver is a much better commodity for money creation. Many commercial uses and a relative rarity in amount available. I think Silver should be $5000/oz and gold $10000/oz. Then we could actually go back to gold and silver backed moneies.
I would explain the concept thus:
Fiat: "a command or act of will that creates something without further effort"
Fiat money means some singular entity can create quantities of that money by act of will without further effort.
Fiat money does NOT refer to the value boost accruing to whatever good people choose to use as money. People can choose to use anything they want to as money, PMs or otherwise. Whatever they choose, the value of that thing will then escalate beyond its inherent value to its value as a token of productive labor, facilitating trade. This is normal, healthy, and proper for anything serving as money.
The scientific/industrial value of gold is under $5/oz, so rest assured, people still value gold as money. And it is not fiat money, as any gold miner will confirm.
What happened in 2009/2010?
You mean the QE fueled buying spree (free money) that ran up the price of everything? Tell us, since credit has now been maxes out, what happens next worldwide crash? Where is the money going to come from to run up the price of gold then?
They won't have to. The price of everything else will crash while gold holds it's value which is exactly what it is for.
Your real name is Gartman, right?
I dont know if anyone is calling it the "ultimate hedge." In my opinion gold is speculation, in finance almost everything is speculation(?) Even the idea that you could withdraw the money from the bank on any given day is speculation (greece). Or retire on a pension (detriot). Or cash out your investments (stabbing of investment exec). Or sell your property for more than you paid (housing crisis).
I see alot of gold owners saying buy food and munitions too.
Hell, maybe ammo holds its value well.
ouch, downvotes. I wasnt being sarcastic about the value of ammo....
I get your point, but I got some different input too. Let's assume I earned 1000 bucks this month and want to save them for something, now I have to choose between different financial asset classes to use for saving. In the current environment of sustained QE, ZIRP, NIRP, hidden inflation and manipulation I will always choose Gold as a safe-haven asset. It's no worse speculation than just sticking with cash, which would constitute a bet on really low inflation.
So if you call this speculating, indeed mostly everything except instant consumption would be speculation.
Greeks, Cypriots, Mexicans, Argentinians all are glad they owned gold when their "money" went to shit.
Gold is the ultimate "fiat". You mean someone has to issue orders, backed by the threat of violence, that gold is valuable ? Ha ! you dont know much about women do you mate ?
“In a world where the value of paper money is affirmatively aimed at being degraded by central bank policy, it’s kind of surprising to me that gold can’t catch a bid,” ...
Who is surprised?
Try bitcoin.