Ben Bernanke Is Indeed A Gold Bug's Best Friend

Tyler Durden's picture


A week ago, we asked (rhetorically), whether "Bernanke Has Become A Gold Bug's Best Friend?" While we knew the answer, today's reponse by the market confirms it. Beginning just before 10 am, or the moment Ben's prepared remarks went off embargo, gold and silver have been on a relentless tear (chart 1), with Gold passing $1760/ounce and now just $150 from its all time nominal highs. And while risk is on elsewhere, stocks priced in gold are down 0.9% since their highs yesterday and at their lows in real terms (chart 2), even as they hit new nominal highs, confirming that fear of the coming monetary tsunami will benefit precious metals. So while the lemmings focus on meaningless nominal gains, their real purchasing power just lost another 1%. Thank you Chairsatan - you are a good man.

Gold and Silver since Bernanke speech began:

And ES priced in Gold since yesterday:

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Thu, 02/02/2012 - 12:08 | 2120088 GeneMarchbanks
GeneMarchbanks's picture

Let's just hope he gets reappointed.

Thu, 02/02/2012 - 12:19 | 2120131 fonestar
fonestar's picture

Where are the deflationist morons now, saying gold back to $300/oz and silver back to $5/oz?  Where are you?  Roubini... was that you?

Thu, 02/02/2012 - 12:19 | 2120145 Silver Bug
Silver Bug's picture

I'm sure he's beginning to understand that the best way to devalue the dollar is against gold. If you try to devalue your currency vs the yen or the euro, etc, then they just devalue after you do and it becomes moot. Hold on to your gold.

Thu, 02/02/2012 - 12:29 | 2120191 TruthInSunshine
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Precious Metals just 'friended' The Bernank on sitonmyfacebook

Thu, 02/02/2012 - 13:14 | 2120253 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Sipping Coffee with Ben Bernanke

Uhm, good afternoon, and, uh, welcome to Sipping Coffee, with me, Ben Bernanke.  Today, uh, we will visit the, uhm, Mariner Eccles Building, where the Board of Governers swim in pools of gold left over from when the great FDR stole it from, uh, uh, Americans in the name of Patriotism.  We also take a look at, uh, the basement furnace, where we shovel dollars into the fire to keep, uh, uhm, uh, in-inflation from getting out of hand.  But first a word from our, uh, sponsers....

[A voice booms from the loudspeakers]

Bow down to Ba'al!!!!!

Yes, Ba'al, my, uh, favorite Dark Lord.

[Bernanke looks down at the floor, raises his hand, and makes a hook 'em longhorns hand gesture]

Every month the, uh, Board gets together to, uhm, party like it's 1913.  We swim in, uh, uhm, gold coins and make pinatas out of, uh, hundred dollar bills.  This is my favorite time of the month as I get to see my, uh, friends and discuss, uh, m-m-monetary p-policy and what we should do next with our trillions of, uh, dollars of liabilities....

[Ron Paul steps onto the set, strapped with machine gun]

Not so fast Bernanke!  How are you balancing the liabilities on your balance sheet!

[Bernanke picks up his coffee mug]

Uhm, with tradition and pixie dust.

[He sips his coffee]

Thu, 02/02/2012 - 12:31 | 2120199 Oh regional Indian
Oh regional Indian's picture

As long as the DXY is heavily manipulated via the Yen, Gold price in dollears can be played endlessly. That Yen carry trade is the Elephant in the living room of commodity speculation. The great 10 year Gold Rush financed by the Great 10 year Yen Carry Trade.



Thu, 02/02/2012 - 12:35 | 2120224 spiral_eyes
spiral_eyes's picture

The only real way to measure the long term trends in the US economy is priced in gold: 

Also, China might well be the REAL goldbug's best friend. This MSNBC article is hilarious. The PBOC state DIRECTLY why they are buying gold and the article just assumed that their stated reason is wrong (because, you know, what could be better for hedging risk than paper with a massive counter-party exposure?) and that instead it might well be because they are trying to offload all their non-income-producing gold, and get into "real-income producing assets" like the US Treasury 

Thu, 02/02/2012 - 12:56 | 2120322 Missiondweller
Missiondweller's picture

Wow, the author is stunningly stupid.

Thu, 02/02/2012 - 12:36 | 2120227 fonestar
fonestar's picture

I just want silver to at least go to 1/30 or 1/25th an ounce of gold.  Maybe then I can buy something else for a change...

Thu, 02/02/2012 - 14:07 | 2120619 BeerBrewer09
BeerBrewer09's picture

Times of plenty for us silver bugs. Keep buying and be patient!

Thu, 02/02/2012 - 14:28 | 2120700 KingdomKum
KingdomKum's picture

We few, we happy few, we band of silver holders  !

Thu, 02/02/2012 - 12:33 | 2120209 midtowng
midtowng's picture

The deflationists would be right if it wasn't for the Central Banks.

Of course that's the same as saying if I didn't grow old I might live forever.

Thu, 02/02/2012 - 17:30 | 2121240 akak
akak's picture

Deflationists, HA!  Still sailing the world's oceans of paper and red ink in the USS Futility, led by Captain Douchinger and Admiral Prechtologist, cluelessly searching in vain for the edge of the flat earth and the infamous (but never before seen) deap-sea-dwelling monster of appreciating fiat currency.  Meanwhile, the crew grows ever weaker due to the scurvy of currency depreciation, all the while blaming it on flagging "animal spirits", and attempt to cure themselves with Keynesian bloodletting inflicted with the knife of ZIRP while simultaneously chanting "all debt is equal to money"

Thu, 02/02/2012 - 12:34 | 2120213 Zadok
Zadok's picture

In honor of the new year, updated charts from the decoupling of the USD from the Gold Standard.

My personal Silver year 2012 target is about $60

Gold target for 2012 is about $2100.

These are trailing indicators, valid as long as the can-kicking continues.  When the dam breaks, these become invalid...

Until that time, best wishes.


Thu, 02/02/2012 - 15:35 | 2120937 BoNeSxxx
BoNeSxxx's picture

All currencies are flat today but money is soundly up.

I plan on rolling around in mine when I get home tonight.  Well, at least that's what I would do had in not fallen into the lake by accident some time ago...

Thu, 02/02/2012 - 12:34 | 2120215 midtowng
midtowng's picture

Bernanke isn't doing any of us any favors. Those gains you are getting are in nominal dollars.

Thu, 02/02/2012 - 12:55 | 2120319 mattu13048
mattu13048's picture

Armada Markets just sent out a note that they shorted gold futures today.

Thu, 02/02/2012 - 14:18 | 2120663 Dr.Vannostrand
Dr.Vannostrand's picture

Come on man, just make your comment and pimp the link below a la Snakeyes. This is getting old. And yes, I did down vote you, just like on every other thread.

Thu, 02/02/2012 - 14:16 | 2120659 AldoHux_IV
AldoHux_IV's picture

Whether it's him or someone else, the path is already set. Let's not confuse his worthiness and the price of gold b/c it's the actions of all central planners that will create a disastrous outcome and invariably a new valuation in PM's along with other assets... it may not be so correlated at that point.

Thu, 02/02/2012 - 12:08 | 2120091 Cognitive Dissonance
Cognitive Dissonance's picture

Ben Bernanke Is Indeed A Gold Bug's Best Friend

So is Dallas Fed president Richard Fisher

Richard Fisher, president of the Dallas Fed, is one of the richest of the 12. He accrued a portfolio of at least $21 million after working 22 years in the financial industry as a banker, stock broker and hedge fund manager.

Fisher owns more than 7,000 acres in Texas, Georgia, Iowa and Missouri, in addition to more than $1 million in SPDR's Gold Trust, and at least $50,000 in platinum and uranium each.

Thu, 02/02/2012 - 12:23 | 2120166 Dr. Engali
Dr. Engali's picture

 My question is why would he let anybody know that? Is he sending a signal?

Thu, 02/02/2012 - 12:41 | 2120252 Quintus
Quintus's picture

He is obliged to disclose details of his investments.

Thu, 02/02/2012 - 12:44 | 2120268 TruthInSunshine
TruthInSunshine's picture

Yeah, but he hasn't disclosed where his fizz is buried.

Thu, 02/02/2012 - 12:09 | 2120094 Dr. Richard Head
Dr. Richard Head's picture

Traditional barbarous relic that isn’t money.

Thu, 02/02/2012 - 12:16 | 2120126 death_to_fed_tyranny
death_to_fed_tyranny's picture

 If such a barbarous relic, then why are so many countries buying up so much physical? Ahh Yes. The world is awash in barbarians! I AM SPARTACUS!

Thu, 02/02/2012 - 12:09 | 2120099 mayhem_korner
mayhem_korner's picture



Real question is how close is he and the Fed to fessing up to the truth that the barbarous relic thing was just a lie.  Ben's his own (and only) friend, and he knows eventually this is going to boil down to who holds the Au.

Thu, 02/02/2012 - 12:21 | 2120156 jekyll island
jekyll island's picture

OK, let's review.  The comment about the barbarous relic refers to the gold standard for fiat currencies, not gold itself.  The way the politicians and banksters starting way before Tricky Dick have manipulated prices and screwed the public that I have to agree with that statement at least on some levels.  The real barbarous relic is fiat currency regardless of any standard to which it may be linked, but hasn't that been proven 15 times over already?  



Thu, 02/02/2012 - 12:30 | 2120189 mayhem_korner
mayhem_korner's picture

 gold standard for fiat currencies, not gold itself.


What is a "gold standard for fiat currency"?  Isn't that a contradiction?  A gold standard backs the "currency" with a physical asset; fiat currency backs the "currency" with a promise (e.g., full faith and credit).  Whittle through the algebra, and in a gold standard gold is money.  Ben knows that, but his charter (for now) is to sustain the lie.  Eventually, he and the Fed are going to run for the exits, but until then he needs to keep the theater full of patrons.

I think we agree.

Thu, 02/02/2012 - 12:09 | 2120100 Newsboy
Newsboy's picture

Spend those diluted FRNs on something you need, soon...

Thu, 02/02/2012 - 12:09 | 2120102 The Axe
The Axe's picture

yes, ben is a goldbug BFF     but he is raising all boats....the FED controlled market moves ever higher and higher.....

Thu, 02/02/2012 - 12:15 | 2120124 SheepDog-One
SheepDog-One's picture

Problem is, stocks are only worth the advertised value upon completion of a sell order. Until then its all just a theoretical value, which can be worth -0- tomorrow morning.

Equity holders prayer every nite is to please not let any sellers of size suddenly show up.

Thu, 02/02/2012 - 12:11 | 2120106 RobotTrader
RobotTrader's picture

Gold $2,500 = Dow 15,000


SPY is now getting ready to charge to new highs in many foreign currencies$spx:FXE,$spx:FXY,$spx:FXC,$spx:FXS,$spx:FXA,$spx:FXM,$spx:FXB,$spx:FXF|D


Gold is doing the same, but lagging a little:,GLD:FXY,GLD:...|D


Thu, 02/02/2012 - 12:19 | 2120144 mayhem_korner
mayhem_korner's picture

Gold $2,500 = Dow 15,000


So you're saying that the Dow will fall another 40% priced in gold?   Before the Dow bubble bursts, I presume.

I'll give it a "plausible."  :D

Thu, 02/02/2012 - 17:42 | 2121331 akak
akak's picture

Don't try to confuse RobotTard with the concept of "nominal" vs. "real" --- he is nowhere near being up to the intellectual challenge.

Hey RobotShitforbrains, why can't you EVER respond to anyone here?  Are you THAT much of a coward --- or is the idea of having to actually defend your stock-pimping trolling just too much for you?

Thu, 02/02/2012 - 12:32 | 2120203 SheepDog-One
SheepDog-One's picture

And just think, this expert Robo called the top at $900 and sold. What a dick.

Thu, 02/02/2012 - 12:37 | 2120232 mayhem_korner
mayhem_korner's picture



You need to be kinder to the logic-challenged counterparties, sheep.  We need them to part with the undervalued and sop up the junk.

Thu, 02/02/2012 - 12:43 | 2120265 Smiddywesson
Smiddywesson's picture

Gold just broke strongly above the $1750 level and we break out the sock puppets tp spice up the conversation?

OK, I'll bite.  Yes Robo, you are absolutely right.  If they print, and continue to debase the currency, the Dow will go to the moon along with the price of gold because stocks are denominated in those debased dollars.

Ex: Weimar Germany, Oct. 1922-Oct. 1923, stocks up 2700%  Of course, with the currency destroyed, you couldn't buy much with those "profits."

Of course, they could always let go of stocks and see if they fall to their natural level first, but we all know they won't do that.

Thu, 02/02/2012 - 12:11 | 2120108 yabyum
yabyum's picture

1740 for gold and 34.00 for silver were real celings. Looks as if were are over that little hurdle. Keep on stackin'

Thu, 02/02/2012 - 12:22 | 2120164 mayhem_korner
mayhem_korner's picture



Au and Ag up on Bensquawk, but copper down.  Is the market showing signs of logic?  And will it last past the 3pm smackdown-rumor hour?

Thu, 02/02/2012 - 12:11 | 2120110 vegas
vegas's picture

He's a gold bugs best friend until he isn't. I'm certain he will do or say something in the minutes, hours, or days ahead that will allow his buds over at HSBC & Morgan to profit on the short side. You realize, he just can't abandon them - although I hope I live long enough to see just that.

Thu, 02/02/2012 - 12:16 | 2120127 user2011
user2011's picture

Well.... I think it is about time margin on gold will be raised.   They raise the margin on oil to stop it from going up.  It is about time for the gold. and of course silver.

Thu, 02/02/2012 - 12:30 | 2120195 tekhneek
tekhneek's picture

Go right ahead. That can only go so far and then what?


Thu, 02/02/2012 - 12:54 | 2120313 HoofHearted
HoofHearted's picture

Cash and carry, Blythe baby. I recommend it.

Thu, 02/02/2012 - 12:17 | 2120132 tmosley
tmosley's picture

Somehow I am reminded of Fun with Dick and Jane:

Thu, 02/02/2012 - 12:19 | 2120147 Lore
Lore's picture

Bernanke is a good stooge, unthreatening, just goes through the motions and puts up with the babble from the congressional rabble...

Now everybody will break for lunch, convinced that something meaningful just happened...

And another day goes by with nothing remedied...


Thu, 02/02/2012 - 12:22 | 2120162 mc_LDN
mc_LDN's picture


Thu, 02/02/2012 - 12:28 | 2120185 Dr. Engali
Dr. Engali's picture

Reminds me of Bagdad Bob as the tanks were rolling up to the front door.

"There are no American infidels in Baghdad. Never!"

Gold is not now nor was it ever money!

Thu, 02/02/2012 - 17:10 | 2121265 akak
akak's picture

Reminds me of Jon Nadler --- which is just another way of saying pretty much the exact same thing.

"All reports of the death of the US dollar are greatly exaggerated", he loves to say.  Sure, Jon, maybe it's not dead yet --- but the diagnosis for the dollar is in, and that diagnosis is "terminal".

Thu, 02/02/2012 - 12:25 | 2120175 azzhatter
azzhatter's picture

Ben- please remove your dick from my ass

Thu, 02/02/2012 - 12:26 | 2120176 russwinter
russwinter's picture

-Bernanke says we don't know how Greek debt talks will turn out. 


-Bernanke admits there will be losses on Fed’s trillion MBS portfolio under new refi proposal, but fails to quantify. -Is nobody listening, Bernanke admits that Fed will have no control over rates should markets lose confidence in fiscal policy


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