Gold: The Unsurance Policy - Love It Or Loathe It
Grant Williams, Of Things That May You Go Hhhmm, gave the following presentation at Mines & Money in London in early December laying out why he believes the gold price is languishing despite a wealth of what would ordinarily be positive catalysts. Currently, outside those who focus on precious metals, there is an enormous amount of apathy but, we suspect, that apathy will shortly turn to enthusiasm - an enthusiasm which will expose the rift between paper prices set in NY and the structural changes undergone in the physical markets over the last several years. Still, outside of today's small move, for now... Nobody Cares.
Gold: The Unsurance Policy
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Ok first gold has only been down the last three years, and those three years are great times to buy. Always buy an asset as it is depreciating, never buy it as it is moving higher. This goes for any investment, be it dollars, btc, a house, land, stocks, bonds. Getting caught at the top sucks, but buying into the top is even worse.
Then when considered, even if someone was buying from 200 to 2013, if their average price is higher than right now, with every buy the average price comes down.
Also day traders lose their shirts all the time. FX traders go bankrupt all the time. Flipping houses can cause bankrupcy easy. But by putting money into savings by purchasing gold, there is no way to go broke. Saving for retirement was never so easy as it is by purchasing physical bullion when one can afford to.
In 2008 Gold was around $1200/oz, and you are lying on down time of three years.
Lol you're wrong. Gold's high in 2008 was $1006/oz.
But my apologies, it's been down for just over 4 years now.
In CANADA it was $1200./oz in 08.
In Zimbabwe it was a bazillion. What's your point?
Point is that if I invested my money in physical gold back in 2008, and held it long term until now, I would be losing my money at whatever point I cashed in and decided to sell.
That's my point, Soul Glow. I don't like putting my money to sleep.
Do you mean interst like on a bond payment? Like on a junk bond? You lost principle there. And USTs and Munis aren't keeping up with inflation. Do yoou mean a dividend? Like GM. GM lost the same principle as the interest brought in. If you are day trading good luck.
Good luck trading then. I'll sit on the sideline and put my money into silver coins when I can.
Ok... if you invested YOUR MONEY in physical gold back pre-2001, than your investment would have increased +500% and you would be making money "at whatever point you cashed in and decided to sell"....
400% and 500% increase return on your investment is FAR FROM being asleep.
Besides gold and silver is the MOST LIQUID investment one could ever have! ALways someone somewhere willing to buy that bullion from you! You can go into any pawn shop with it and walk out with cash, anywhere in the world!
You're a dumbfuck on PM's, that's the point. Look at 5 and 10 year charts in many other currencies dickhead.
Gold is money, everything else is credit.
JP Morgan
And gold is over $1500 in Canadian Dollars now. Whats your beef?
Mine is in a safe embedded in my houses foundation.
When did you buy it, and when are you planning on selling it? In the interim you are sitting on gold that is not collecting interest.
My guess is the interest you are collecting is less than the loss of purchasing power of the $ and with currencies losing P power at break neck speed. When the world decides to dump the $ you will be screwed, hence all of your stocks are in $.
Gold is what ALL CURRENCIES ARE MEASURED IN. doesn't that mean anything to you. Gold can never lose as much as a FIAT CURRENCY or a STOCK ever.
Did you see what happened when the exponential credit slope deviated in 08/09? You know that the recovery is based on subprime, student loans, mortgage debt, credit card debt, govt debt etc... You are a brave person if you think this game goes on indefinitely.
The markets are not free markets, and the market crashes are not free market crashes when circuit breakers trigger every few months. In brief, all markets have already crashed, and are continuing to crash as we write here. The DOW will drop again tomorrow IMHO, and the circuit breakers will trigger again.
Anyone that trades fake money for real money is incompetent to handle real money? nice logic bud
Gold is money and nothing else. You cyst on the nut of a hog.
What a stupid fucking thing to say. Do you always say the first thing that pops into your empty skull? Seriously man. And then close with "Anyone that buys gold is incompetent to handle money...?" Gold is money you fucking asshat!! Because you do not understand this means you really oughta look at an alternative place for expressing your apparent ignorance on this et al matters.
Pareto: Agreed. Like Ron White (comedian) said: "You can't fix stupid."
www.gata.org
Yet the gold price flashes across CNBC's and bloombergs ticker parade every 20 seconds together with oil,the dollar,the dow,etc.... funny,maybe somebody cares??
I have Gold....its ok.....it goes up and down.....
it is not the amazing store of wealth sellers of it make out as many pay too much for it and then it goes down for a fair amount ot time.....
sqeezing your balls for a long time......
many people make out there is never a time to sell it...
Give me a Mercedes Gullwing 1955 for a store of and appreciation of wealth
And a surprise hailstorm.
Do you honestly see any new cars being built that will appreciate in such a fashion? I ask because eventually all of the old ones will be either worthless or not for sale...
How long do you expect to live for....?
I thought counting sheep was the effective until I saw this. Dude should market this as a replacement for white noise generators.
This is brilliant and right on the money!
Hear all this carping. If you own gold and silver for quick profits - then sell and move on. PM's are for people who have no debt, much cash, reliable positive cash flow, real estate, the requisite fire arms and ammo, refuges and safety nets (like 20-year friends in remote rural areas). God bless rural America.
Great post. Great diversification.
Talking God, guns, n' guts & gold, is just talking shit, FarmBoy.
http://investmentresearchdynamics.com/the-comex-is-a-zombie-market-hedge-funds-record-short-paper-gold/
The hoi polloi and the mainstream investoriat have all forgotten WHAT MONEY IS.
They will be reminded.
for all those bitcoin lovers....I bring you an EMP....better look it up...by the way whatever happened to the USS Cooke? Do you honestely think that a anything on a computer is safe?
If you own physical gold you have no counterparty risk...unless someone puts a bullet in your head...then nothing matters...but do you still want to risk someone else controlling your money while you are still alive?
"Nobody Cares". Really? That's just the Chinese PR machine messing with round-eyes.
They keep swapping UST's for AU deliveries, by hammering the paper price with excess and plentiful US paper, and scooping up the real thing.
I BLAME CHINA. Far more than our western banks.
p.s. As Grant's charts show, if, Russia or China wanted to, they could have bought up all the gold mines for $125 Billion, and jacked up the price. But they won't do that until they have enough of our mined and minted PM in their bank vaults. From where -- having bought it with national money -- they will move it into their private hands, i.e. to Chinese oligarchs.
pps. I over-allocated with excessive "Irrational Exuberance" near the peak in 2011-2012, by allocating 33% near said peak and watching it slide ever since. Like that Farmer's Insurance TV ad, I bought too much insurance plus paid too much. Why did I go overboard? Because of ZH and its gold shills (article writers and bloggers). What's worse, is that I used my father's money (who passed away in 2013) to buy said PM -- at the time on his behalf. He passed away in 2013, knowing that the PM portfolio dropped a bunch, even though he urged me to "go easy". This is the kind of experience that's burned into you. Having learned the hard way, I will eternally revert to Vulcan-like discipline of Asset Allocation. I swear to Spock! And to dad. may he RIP.
Definitely a bitter pill to swallow, sorry for your loss. Just for some perspective though, a single humans life span is nothing compared to the history of gold as true money. There is a very real possibility that your mistake could one day be your great grandson's blessing, and the story a family legend. You never know.
A lot of us have bought too much PM for myriad reasons but would you really rather be in stocks or bonds right now? Those are terrifying investments to be in. No upside and they could collapse anytime.
With the amount of war these clowns seem to be stirring up gold should be making big moves coming up soon. It already should be. So it will probably go down even though...Arab Spring II, ISIS in Europe, WWIII, Saudis eyeballing Iran, rancher trouble in the US on the eve of gun legislation... and that's just the risk of shooting war. What a joke!
They can't do it forever.
"...gun legislation..."
In theory, what Obama does when he issues executive orders is not a legislative act. I wonder which of the candidates running to become prez would promise to overturn any such action Obama might take. Someone should ask them.
Gold is hedge insurance against government going awry. Like all hedges you determine how much risk insurance you want to take out. Some (liberals) will see no risk and buy no gold. Others many settle on a %. And still others will buy on the headlines. I have bought when gold has hit long term support starting back in the 1990s when gold was rising off 300. If the long trend breaks support I would sell what I have accumulated in this hedge.
A huge problem is the Apathy. Our product is focused on ordinary Joe Sixpack; small weight bullion as affordable as possible to give him a chance to own some Gold. But that is the flaw in our model, the Customer Apathy, you would not believe the dumbness in ordinary people - for most as long as they have booze and smokes they couldn't care less about markets, economics, finances,. Frustrates the hell out of me...
www.teamramgold.com/about-us
Grant is absolutely right, NOBODY CARES.
Until there is a pension default, bank bail-in or a combination of the above.
Then everybody will care.
Squid