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Cash Out Of Gold And Send Kids To College?

Tyler Durden's picture





 

From GoldCore

Cash Out Of Gold And Send Kids To College?

Today's AM fix was USD 1,608.50, EUR 1,310.92, and GBP 1,030.69 per ounce.

Yesterday’s AM fix was USD 1,612.75, EUR 1,307.46 and GBP 1,029.79 per ounce.

Gold climbed $4.90 or 0.03% in New York yesterday and closed at $1,617.70/oz. Silver fell to $27.86 then rallied and finished with a gain of 0.39%.

Gold appears to in lock down mode this week with prices trapped in an unusually narrow 1% or $15 range between $1,603/oz and $1,618/oz.

Gold Spot $/oz Daily,20 days & 20 minutes - (Bloomberg)

Support is at $1,585/oz to $1,590/oz and at $1,570/oz. Resistance is at last week’s high of $1,628/oz.

Technically, the narrowing wedge pattern suggests that a close below or above these levels could lead to rapid and sharp moves down or up.

Gold was initially flat in Asia but took a dip and has remained weak in European trading.

XAU/GBP Exchange Rate Daily  - (Bloomberg)

Gold is on track for its 2nd weekly gain – possibly due to concerns about the Chinese, US and global economy. Slowdowns in all major economies mean that it’s not really a question of if the central banks will employ fiscal stimulus packages, only when.

An indication of continuing demand, especially institutional, for gold was seen in the data from ETF Securities' which showed gold ETF holdings up a very large 216,000 ounces or 6.7 tons on Thursday.

Cash Out Of Gold And Send Kids To College?

The Financial Times published an interesting article on Wednesday by a Tokyo-based analyst with Arcus Research, Peter Tasker, entitled of 'Cash out of gold and send kids to college'.

The article is interesting as it is an articulate synopsis of those who are either negative on and or bearish on gold. It clearly shows the continuing failure to understand the importance of gold as a diversification and as financial insurance.

Tasker incorrectly states that gold is "just another financial asset, as vulnerable to the shifts of investor sentiment as an emerging market."

He conveniently ignores over 2,000 years of history showing how gold is a store of value. He also ignores recent academic research showing gold to be a hedging instrument and a safe haven asset.

Another fact unacknowledged is how gold has clearly been a store of value since the current financial and economic crisis began in 2007. Since then gold has protected people from depreciating financial assets (such as equities and noncore bonds) and from depreciating fiat currencies such as the dollar, the pound and more recently the euro. 

Further evidence that gold is not just "another financial asset" is seen in the fact that some of the largest buyers of gold bullion bars today are central banks.

They are buying physical gold bullion in order to diversify their foreign exchange holdings and to own a physical hard asset that will protect in the event of currency crises or an international monetary crisis.

That gold remains a store of value is also seen in the fact that the other most important buyers of gold in the world are store of wealth buyers in Asia and the Middle East (particularly China and India but also in Turkey, Iran, Indonesia, Thailand, Malaysia, Vietnam etc).

Millions of these buyers do not view gold as a risky "financial asset." They know through experience that gold is a store of wealth and are buying near pure gold jewellery and bullion coins and bars in order to protect against currency debasement.  

Were Peter to have a conversation with a few Spanish, Irish or Greek investors he would quickly realize why gold is not just another “risk on” asset.

Japanese, British and American investors would be wise to diversify into assets that have protected periphery European investors in recent months.

He also suggests that gold is a bubble as "the price has simply become too rich".

He makes a comparison with the "great historical bubbles", such as "Japanese stocks in the 1980s" and the "Nasdaq in the 1990s".  This comparison is simplistic and misleading as the percentage price gains in both the Nikkei and Nasdaq bubbles was orders of magnitude greater than gold's gradual rise since in 2000.

Indeed if one looks at gold's performance in an all important long term perspective (see video showing ‘Gold Undervalued From Long Term Perspective’ <3 mins, 20 seconds>), one sees that gold's gains in recent years are very sustainable and gold is merely playing catch up after the massive under performance and bear market of the 1980's and 1990's.

The Financial Times is fairly good in covering the gold market and allowing a plurality of opinion regarding gold. Every so often simplistic, unbalanced articles about gold are published.

XAU/EUR Exchange Rate Daily - (Bloomberg)

Such articles by 'experts' have the effect of confusing and misleading other journalists and the wider public and contribute to weak hands selling their gold holdings. This was seen again in recent days.

What is interesting is that such articles are often a contrarian indicator. They often come at a time of heightened negative sentiment against gold and can often mark an intermediate low in the gold price.

These articles are also a good contrarian indicator as they show that there remains a fundamental lack of knowledge about and appreciation of gold and its importance as a diversification for portfolios.

Incidentally, in the volatile year that has been 2011, gold has still outperformed many assets and seen its wealth preservation attributes shine again.

Gold has risen by 8.7% in euro terms, by 3.1% in US dollar terms and by 2.3% in sterling terms so far in 2011.

Never let the facts get in the way of a good gold bashing article.

Tasker accepts that US equities, despite being in a 12 year bull market, are still not cheap and yet he does not advise people to cash out of US equities.

Not acknowledged is the fact that only a tiny minority of investors have any allocation to gold whatsoever and therefore are not in a position to “cash out of gold” even if they were imprudent to do so.

Finally, investors and savers who have an allocation to gold will, in the coming years, be the people who can as Tasker concludes "buy a nice house, hire some workers, send your kids to college and eat big breakfasts".

That is gold's value – it is a proven store of wealth that protects people's living standards from government profligacy and financial asset and currency depreciation.

'Cash out of gold and send kids to college' can be read here.

Our video about gold as a store of value versus cash which debunks Tasker’s article can be watched here.

Cross Currency Table – (Bloomberg)

 

NEWSWIRE

(Bloomberg) -- China Cracks Down on Extortion of Gold Exchange Members: Xinhua

Chinese police caught 10 people on suspicion of hacking computer systems and extorting 14 member companies of Hong Kong’s

Chinese Gold and Silver Exchange Society early this year, Xinhua News Agency reported yesterday, citing police in Hunan province.

?Six of the people were detained, Xinhua said

?The people are suspected of trying to extort 100,000-300,000 yuan from the member companies for allowing the companies’  websites to continue operating, according to Xinhua

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

Gold Bulls Strengthen on Outlook for Additional Stimulus - Bloomberg

Gold ticks down, investors still eye China stimulus – Reuters

Gold Little Changed Amid Firm Dollar – RTT News

Gold, corn and oil among top assets in crisis - FT

COMMENTARY

Gold rush in China could see it sweep past India - Mineweb

ANALYSIS - Waiting for QE3: gold's last hurrah? - Reuters

What Happens to Greece’s Gold when They Exit the Eurozone - GoldSeek

 


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Fri, 08/10/2012 - 08:06 | Link to Comment JonNadler
JonNadler's picture

he forgot to mention that you can't eat gold!

Fri, 08/10/2012 - 08:09 | Link to Comment Popo
Popo's picture

Well...to be fair:  Gold *is* wildly subject to investor sentiment.   However,  that sentiment is currently very very good.

But I meet plenty of goldbugs who like gold for the wrong reason:  Because they think it always goes up.   That there's crazy talk, and it's the same crazy belief that slaughtered the real-estate sheep.

Fri, 08/10/2012 - 08:11 | Link to Comment SGS
SGS's picture

Ponzi goyim lemming continuum endures once again.

Fri, 08/10/2012 - 08:14 | Link to Comment Badabing
Badabing's picture

Oh I forgot that currency is based on its edibility, good point.

 

 

 

dick

Fri, 08/10/2012 - 08:38 | Link to Comment strannick
strannick's picture

Once in college they can study Keynsian economics, and then write articles about how bad gold is to pay off their student loans

Fri, 08/10/2012 - 08:43 | Link to Comment francis_sawyer
francis_sawyer's picture

Sell your kids & buy gold...

Fri, 08/10/2012 - 08:48 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Hi Johnny.....some advise. Steal as much gold as you can...cause we're totally screwing you over right now.

 

Forget college.....get gold. When those rocket scientists are working for you....you can borrow one of their degrees.

 

Fri, 08/10/2012 - 09:43 | Link to Comment tocointhephrase
tocointhephrase's picture

THEY ALSO FAIL TO MENTION SILVER IN THAT CHART....HMMMMMM? EDIT:OVER THE LAST 5 YEARS SILVER HAS BEEN IN THE TOP THREE FOR PERFORMANCE!!!

Fri, 08/10/2012 - 11:20 | Link to Comment boogerbently
boogerbently's picture

I LOVE the "Gravity" theory in equity analysis. (What goes up must come down)

" gold is a bubble as "the price has simply become too rich"."

I imagine they've been saying this since gold was $35/oz.

Sat, 08/11/2012 - 01:28 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

Gold must really be a fucked investment if Corn with Pubic Hair has performed better.

Fri, 08/10/2012 - 08:20 | Link to Comment Red Heeler
Red Heeler's picture

"Well...to be fair: Gold *is* wildly subject to investor sentiment. "

Well...to be fair: Gold *is* mildly subject to paper manipulation.

Fri, 08/10/2012 - 10:33 | Link to Comment KK Tipton
KK Tipton's picture

How much is 1oz. of FRN paper money worth compared to gold?

 

Now there's a left field question....not really responding to your exact comment.

 

Anybody? Somebody put a stack of $20's on a scale plz.

 

 

Fri, 08/10/2012 - 10:45 | Link to Comment blunderdog
blunderdog's picture

FRNs weigh about a gram each.

Fri, 08/10/2012 - 11:53 | Link to Comment KK Tipton
KK Tipton's picture

I just threw a $20 on an electronic scale and it didn't even register.

A thin gold/diamond ring here weighed 1 gram.

Silver ring was 4 grams.

US nickel is 5 grams.

 

Though I did toss the gold ring and the $20 on the scale and got 2 grams.
Scale is not very sensitive. FRN might be just under 1gm?

 

Edit - 1 troy ounce is 31 grams.

http://gold.yabz.com/measurements.htm

Lots of interesting gold info at that site.

 

 

Fri, 08/10/2012 - 12:38 | Link to Comment blunderdog
blunderdog's picture

FRNs weigh about a gram each.

That's how the cheap bill counting machines WORK.

Fri, 08/10/2012 - 13:11 | Link to Comment Red Heeler
Red Heeler's picture

"Anybody? Somebody put a stack of $20's on a scale plz."

The answer is: 29.

29 Jacksons x $20 = $580.

Fri, 08/10/2012 - 09:05 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Real estate isn't very portable unless it's a mobile home.

Real estate hasn't been used as money for the last 5 thousand years.

and... most people that own gold know that it's purchasing power does fluctuate but returns to 'normal' once economies stabilize.

Those that believe that gold is a 'get rich quick' scheme are the minority, imo.

Gold is to prevent 'getting poor quickly'.

Fri, 08/10/2012 - 09:24 | Link to Comment CH1
CH1's picture

A college diploma is the most insanely over-proced paper on the planet!

Fri, 08/10/2012 - 13:28 | Link to Comment aerojet
aerojet's picture

I just received the alumni magazine for one of the hoity-toity graduate schools I attended.  It made me a little bit queasy reading about all the various bs awards and honors the faculty bestows on each other.  The amount and dollar value of some of the grants they received was also eye-opening.  The whole thing is a scam--I felt it when I was there, and I still feel the same way, and that's why I'm not working in higher education. 

Fri, 08/10/2012 - 11:48 | Link to Comment ElvisDog
ElvisDog's picture

Real estate also needs constant maintenance and upkeep costs. The only upkeep cost with gold is the cost of storing it, which can be as little as $75-100 a year for a safe deposit box. A house will cost at least $5000-10000 a year to maintain when property taxes and insurace are included.

Fri, 08/10/2012 - 15:21 | Link to Comment smiler03
smiler03's picture

You can live in Real Estate.

Fri, 08/10/2012 - 09:28 | Link to Comment adamas
adamas's picture

get a grip.... Real Estate was an appreciating asset for one reason and one only , banks were perpetually loosening lending criteria for 40 years , pumping floods of fresh new fiat into housing , everyone jumped aboard like good little sheep thinking that buying a house on a credit card was the way to retire early and rich. now debt is collapsing , mortgages are unavailable , housing will revert to its true value, the value of its component parts, wood/brick/copper pipes. Gold on the other hand forms the base of Exters pyramid.... the layer above are US treasuries, once the fascination with lending money to banksrupt uncle Sam wanes there is only one place on earth for funds to go in size....GOLD ... hope this helps...

Fri, 08/10/2012 - 11:21 | Link to Comment Death and Gravity
Death and Gravity's picture

Partially true. Real estate has indeed been appreciating for decades due to, one: reduced credit-giving restraints by banks, second: increased money supply in the western world, and third and most important: The fact that you cannot make more land, but it's easy to make more humans, with associated human needs, ie. a place to live and work.

Mortgages and RE values are falling (not collapsing) due to the fact that the non-propertied wage workers are likewise falling into unemployment and outright poverty, with an inability to service their mortgage payments, simply because there is no money from work income to pay it.

As long as mainstream economics do not acknowledge this fundamental fact in resource scarcity of land, there will be a ever widening cleft between property owners and non-propertied wage workers, which NO amount of welfareist redistribution will solve.

Fri, 08/10/2012 - 11:27 | Link to Comment Paul Atreides
Paul Atreides's picture

LOL fuckin troll at it again, shillin for the government...you're scum!

Fri, 08/10/2012 - 13:30 | Link to Comment aerojet
aerojet's picture

You can make more humans, but most will live in abject poverty and never purchase real estate.

Fri, 08/10/2012 - 08:14 | Link to Comment Colombian Gringo
Colombian Gringo's picture

Yes you can. You can swallow a small gold coin and it will come out the other end untarnished.

Swallow a fed reserve note, and notice how it reverts to its real nature, crap.

 

Fri, 08/10/2012 - 08:25 | Link to Comment Death and Gravity
Death and Gravity's picture

FRN by another name:

Brownbacks.

Fri, 08/10/2012 - 10:05 | Link to Comment tabasco71
tabasco71's picture

He doesn't need to - corn lets its returns do the talking.... duh!!

 

Case of putting your money where your mouth is

Fri, 08/10/2012 - 10:13 | Link to Comment jimod
jimod's picture

But you can eat cattle. The Watusi and the Masai are right! 

Fri, 08/10/2012 - 11:02 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Ah!  JonNadler strikes again!  Where's Bravo?  

And thay guy who says it onlt costs $5 to get it out of the ground?

Fri, 08/10/2012 - 08:07 | Link to Comment Aziz
Aziz's picture

Drop out of college, cash into gold.

Fri, 08/10/2012 - 08:14 | Link to Comment AU5K
AU5K's picture

+1

Fri, 08/10/2012 - 08:18 | Link to Comment malikai
malikai's picture

That thought in 1999/2000 would have been absolutely rediculous!

Nevermind the fact that those who did have that thought are now wondering what to do with their stunning gains.

Fri, 08/10/2012 - 08:32 | Link to Comment GMadScientist
GMadScientist's picture

One 1/10 oz coin at a time...Lulz

Fri, 08/10/2012 - 09:18 | Link to Comment youngman
youngman's picture

I get mad when people say a "college" degree is what you need....that is to broad brushed for me.....if you study engineering...write code...medical... ...you will get a job.....if you study AFRICAN LESBIAN WRITERS....you will not get a job...to many people do the latter.....they pile up the government loans ..."study" for 8 years...Maybe go to GRAD school....because that is where the dreadlocks really look cool....they have no intention of paying the loans back...they believe that the government will come in and save them.....pay them off or forgive them..College is a right in their minds....also a job..healtcare..housing....it should all be supplied by government....see where this is going..

Fri, 08/10/2012 - 09:48 | Link to Comment blunderdog
blunderdog's picture

    if you study engineering...write code...medical.

That's bullshit, though.  There are plenty of engineers and coders who are working crap jobs, or on the bricks.

Medical stuff's different because it's a government-funded industry.

Fri, 08/10/2012 - 13:32 | Link to Comment aerojet
aerojet's picture

I would only add that while they are doing all that higher educatin' they are getting a near total indoctrination into leftist ideology.

Fri, 08/10/2012 - 14:54 | Link to Comment blunderdog
blunderdog's picture

You ever been to a college?

Fri, 08/10/2012 - 08:09 | Link to Comment Badabing
Badabing's picture

 

Cash Out Of Gold And Send Kids To College?

Only if they teach “Gold is real money 101”

Fri, 08/10/2012 - 08:14 | Link to Comment hugovanderbubble
hugovanderbubble's picture

Gold will suffer from Debt Haircuts But other assets will suffer much more.

So in relative terms yes Long Physical Gold

Fri, 08/10/2012 - 08:11 | Link to Comment TideFighter
TideFighter's picture

Soon China will have all of our gold and our graduates.

Fri, 08/10/2012 - 08:17 | Link to Comment SGS
SGS's picture

no one wants your graduates.  Washed up drunk and cocaine induced 4 year degrees coupled with the clap and a little clymitia is so 90's.  THis education thing is OVER.

 

SELL CORN BUY GOLD.

 

BOOM.

Fri, 08/10/2012 - 08:24 | Link to Comment Death and Gravity
Death and Gravity's picture

Sell Corn buy Cannabis.

"Dat ain't corn, boy!"

Fri, 08/10/2012 - 08:34 | Link to Comment GMadScientist
GMadScientist's picture

You didn't smoke that Acapulco gold!

Fri, 08/10/2012 - 11:04 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

It took a village!

Fri, 08/10/2012 - 08:54 | Link to Comment El Oregonian
El Oregonian's picture

Sell corn by REAL food, instead of Monsanto produced GMO insecticide called corn...

Fri, 08/10/2012 - 09:20 | Link to Comment youngman
youngman's picture

"sittin on my sack of seeds"...remember that song

Fri, 08/10/2012 - 11:33 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Smokin' them wildwood flowers got to be a habit
We never seen no harm
We thought it was kind-a handy
Take a trip and never leave the farm

http://www.youtube.com/watch?v=UyY-6oh0Ow8

Fri, 08/10/2012 - 08:12 | Link to Comment Death and Gravity
Death and Gravity's picture

Ahhh.... in short: "drop your financial safety, and pump money into the education bubble, and indebt your kids for life".

Such a shill for the status quo, that author is. Sigh.

Fri, 08/10/2012 - 08:34 | Link to Comment GMadScientist
GMadScientist's picture

Hmmm...my loans were paid off before I graduated.

Fri, 08/10/2012 - 09:49 | Link to Comment oddjob
oddjob's picture

How much is a G.E.D. these days?

Fri, 08/10/2012 - 10:00 | Link to Comment GMadScientist
GMadScientist's picture

Don't you worry your little head about that, precious.

Did you know you can work while you get a degree? Apparently this is news.

Fri, 08/10/2012 - 10:09 | Link to Comment oddjob
oddjob's picture

Work 2 jobs to pay for some pseudo educated acedemic's tenure. Fuck That. These people were supposed to be the educated conscience of the people and instead sold out for bankers confetti and a 2 hour workday.

Fri, 08/10/2012 - 13:36 | Link to Comment aerojet
aerojet's picture

To be clear--the professors didn't do that.  They have their own foibles, but the people who sold out to the bankers are the administrators.  Your typical college prof doesn't exactly live the high life.  A handful work up to a decent salary.  At the big research universities, there's a handful of high-flyers who pay themselves a percentage of each grant, but even then, they make like $250K/yr. before taxes and they work like hell.  Contrast that with how much football and basketball coaches earn, or the higher ups at the university--that's where the priorities are all out of whack.

Fri, 08/10/2012 - 10:16 | Link to Comment TGR
TGR's picture

Eureka! I do believe you've just solved the woes of the world. Just round up all the unwashed unemployed, under-employed and benefit-leaching masses, send them to college and presto, they can all be gainfully employed AND pay off their degrees at the same time!

Fri, 08/10/2012 - 13:37 | Link to Comment aerojet
aerojet's picture

You make light of it, but if those ignorant people could somehow become educated, hell, even just exercise some common sense, they could go very far.

Fri, 08/10/2012 - 22:16 | Link to Comment TGR
TGR's picture

Well I agree, I am certainly not against education in most forms, and whether it's a trade skill or degree/diploma, all the better for the individual and the economy, in theory, to a degree. The comment that people can work to pay off their exhorbitant college fees while actually studying just struck me as a little ironic in this economic quagmire we are in, that's all!

 

Fri, 08/10/2012 - 08:47 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Death and Gravity said:

Ahhh.... in short: "drop your financial safety, and pump money into the education bubble, and indebt your kids for life".

Well, yes, you are correct. However, you really can't expect the status quo shills to come right out and tell you what to do in a straightforward manner. For maximum effectiveness, it must be cloaked in marketingspeak and public relations puffery.

They will get a boatload of suckers to take the bait by extolling the virtues and necessity of a college education as an "investment in the future". Some of the suckers might get a little suspicious if the message was "throw away your savings and sell your children into slavery in exchange for accredited credentials which will have ceased to be relevant by the time they are awarded."

Such a shill for the status quo, that author is. Sigh.

Slithering snake oil shill does indeed slither.

Fri, 08/10/2012 - 11:30 | Link to Comment Paul Atreides
Paul Atreides's picture

Hypocrite bullshitter right there folks, defends a tyranical govnerment that murders 3000 of its own citizens on 9/11 yet calls the author a shill for the status quo on gold and student debt. I can handle Robotrader and MDB, at least they're good for a laugh its the trolls like D&G that are the malicious, devious pieces of shit that need to be put up against a wall and shot in the coming revolution.

Fri, 08/10/2012 - 11:42 | Link to Comment Harbanger
Harbanger's picture

There is no such thing as an education bubble, loans and subsidies created a tuition bubble. 

Fri, 08/10/2012 - 11:57 | Link to Comment Death and Gravity
Death and Gravity's picture

Point taken; by "education" I meant tuition, as you write.

Fri, 08/10/2012 - 13:40 | Link to Comment aerojet
aerojet's picture

Have you toured many large campuses lately?  I think it's clear that the bubble represents a lot of different things, especially tuition and real-estate, but overall, it is not wrong to portray it as a "higher education bubble" because when the bubble bursts, a lot of schools are simply going to cease to exist completely.  The rest will be consierably downsized.

Fri, 08/10/2012 - 08:12 | Link to Comment malikai
malikai's picture

Here's how gold looked as of this morning:

http://www.quantsig.net/img/com_gold.png

Fri, 08/10/2012 - 08:14 | Link to Comment Red Heeler
Red Heeler's picture

Send kids to college where critcal thinking is an elective?

Gold never has to think.

Fri, 08/10/2012 - 08:41 | Link to Comment azzhatter
azzhatter's picture

and brainwashing is mandatory

Fri, 08/10/2012 - 09:21 | Link to Comment kill switch
kill switch's picture

 

Critical thinking?,,,Critical thinking? Are you mad? You my friend should be inserted on the no fly list and renditioned under the NDAA,,, ASAP!!! Oh wait,,Obummer wouldn't go that far would he? You are a terrorist non the less. And you are now in grave danger...

 

Critical thinking INDEED.

/With extreme /sarc

 

On a serious note, WE ARE FUCKED!! Old news...

Fri, 08/10/2012 - 08:15 | Link to Comment vertexa
vertexa's picture

Don't get into debt!

Fri, 08/10/2012 - 08:18 | Link to Comment RockyRacoon
RockyRacoon's picture

I welcome articles like his at FT because one must see the absurdity of the position in order to bolster one's own.   It's the ultimate form of hyperbole and exaggeration.   It's almost as if the article were planted by the gold-bugs!   How better to illustrate the sanity of holding gold than to wrap it in buffoonery?

Fri, 08/10/2012 - 09:18 | Link to Comment CH1
CH1's picture

one must see the absurdity of the position in order to bolster one's own

Sometime, yes. But it should not be continual... that goes to an ugly place.

Fri, 08/10/2012 - 09:21 | Link to Comment Sean7k
Sean7k's picture

I couldn't agree more and have to add, why would anyone want people entering and crowding the market that is soooo very underpriced? 

The CB's have to continue expanding the monetary supply. Someone will buy or take that paper- until they don't. 

Thusly, please continue to keep a lid on the price US government, please hold that short position JPM. Someday, I will need capital for the black markets which will control goods in the marketplace and they won't be taking dollars. As more and more goods are only secured on black markets, the dollar will cease to have any value. 

 

Fri, 08/10/2012 - 08:18 | Link to Comment BlackMagician
BlackMagician's picture
“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.”

There is no going back to the 90's...

Fri, 08/10/2012 - 08:23 | Link to Comment Hayek FA
Hayek FA's picture

you didn't make that gold

all your gold is belong to us

Fri, 08/10/2012 - 08:27 | Link to Comment Peter Pan
Peter Pan's picture

Sell the gold and send the kids to college? For what? To burden them with debt and without a guarantee for a decent paying job? Spare me. Had parents invested in $30000 of gold in 2000, that gold would be worth around $180,000 today or the value of a decent house for which a college graduate would have to work a lifetime to pay off.

With a fully paid off house plus whatever savings a young person could save from age 18 to 25, they could end up going to college at a slightly more mature stage of their life and still have a family.

Fri, 08/10/2012 - 09:19 | Link to Comment CH1
CH1's picture

Right!

If you want education, READ BOOKS!!

Fri, 08/10/2012 - 09:28 | Link to Comment sessinpo
sessinpo's picture

"Sell the gold and send the kids to college? For what? To burden them with debt and without a guarantee for a decent paying job? Spare me. Had parents invested in $30000 of gold in 2000, that gold would be worth around $180,000 today or the value of a decent house for which a college graduate would have to work a lifetime to pay off."

 

This is tripe.  One could use that same argument for any bull market of any asset. Why didn't you invest in corn last year, you would have had great returns that would fit the statement above. What about all those RE investers before housing collapsed? They were saying and thinking the same thing. And what about this sentence? "To burden them with debt and without a guarantee for a decent paying job?". Where on earth is anything guaranteed? I don't know you economic or political values, but anyone that thinks something should be guaranteed in life is full of liberal BS with or without knowing it. Nothing is guaranteed in life including gold and life itself.

Fri, 08/10/2012 - 13:52 | Link to Comment aerojet
aerojet's picture

I don't think you people appreciate intellectual pursuits very much.  You don't go to college because of "jobs" you go there because you want to learn about particular subjects.  The whole vocational aspect is really a side issue.  So what are you clinging to gold for if you don't have any better understanding of the world than when you started?  Also, how do expect to obtain that gold unless you have something worthwhile to trade for?  I guess you can be a whore and just take it up the ass, but that's not exactly contributing to mankind's knowledge.  You get out of college what you put into it and far too many people put nothing into it and so they get nothing back out except debt.  They're stupid to do that, they didn't think it through.  But it isn't my problem.

Fri, 08/10/2012 - 15:38 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

aerojet said:

I don't think you people appreciate intellectual pursuits very much.  You don't go to college because of "jobs" you go there because you want to learn about particular subjects.

That's why some people go to college. If all you want to do is learn about particular subjects, college may help some, but it isn't necessary.

The whole vocational aspect is really a side issue.

You're somewhat correct, but not in the way that you expected. For most American college students these days, the vocational aspect is secondary to the primary reason they are attending college: credential attainment. It's just a way to spend four or five years drinking, getting high, having sex, and playing video games, interspersed with cramming for tests and navigating a maze of bureaucratic red tape.

It's nice to think that they're being educated along the way, and a few of them are, but for many, intellectual pursuits are tertiary at best.

Fri, 08/10/2012 - 08:30 | Link to Comment EvlTheCat
EvlTheCat's picture

Your first mistake is worrying what a, doushy, Financial Times writer "thinks".

Fri, 08/10/2012 - 08:36 | Link to Comment GMadScientist
GMadScientist's picture

I believe you mean 'douchey'...'doushy' is how Sean Connery feels after a night of doing shots.

Fri, 08/10/2012 - 10:01 | Link to Comment EvlTheCat
EvlTheCat's picture

LOL.  I stand corrected.

Fri, 08/10/2012 - 08:31 | Link to Comment Ted Baker
Ted Baker's picture

Peter Tasker MUST BE BRITISH AFTER ALL GORDON BROWN SOLD ALL UK GOLD AT 245$....HOW EMBARRASING

Fri, 08/10/2012 - 08:34 | Link to Comment Levadiakos
Levadiakos's picture

GB was a teenager when gold was $245/oz. An impressive feat for a teen.

Fri, 08/10/2012 - 08:39 | Link to Comment GMadScientist
GMadScientist's picture

Man does he look shitty for someone who is supposedly only 30 years old now.

 

Fri, 08/10/2012 - 08:37 | Link to Comment disabledvet
disabledvet's picture

But he still got the cob...

Fri, 08/10/2012 - 08:38 | Link to Comment disabledvet
disabledvet's picture

"What's the matter Colonel Sanders...chicken?!!"

Fri, 08/10/2012 - 08:41 | Link to Comment GMadScientist
GMadScientist's picture

The Colonel does not bow to pressure, from peers or Yankees; that is why he is fit for command.

 

Fri, 08/10/2012 - 14:22 | Link to Comment Harbanger
Harbanger's picture

You may like this video the Colonel made in response to Chick fil-a.

http://www.youtube.com/watch?v=MODI6M_eQ30

Fri, 08/10/2012 - 08:38 | Link to Comment ivars
ivars's picture

Gold, silver are coming out of one of the bull run triangle corrections. As long as USA debt increases exponentially , which is guaranteed, there is nothing to stop the exponential trend of the 2001->onwards  bull run. Absolutely nothing, so, as many times during this run, it will just move one back into exponetial corridor, and it will happen very, very soon. Silver will further benefit from downwards oscillation of GSR, and will grow superexponetially which will cause for it to correct first at 60-70 USD in february-April 2013.

Here are pictures/charts:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=2340#p38955

 

 

Fri, 08/10/2012 - 08:46 | Link to Comment GMadScientist
GMadScientist's picture

Gold and silver are contango with the constellation of Virgo.

Love the crystall ball.

http://www.youtube.com/watch?v=3AV_0saAy6A

Fri, 08/10/2012 - 09:14 | Link to Comment Badabing
Badabing's picture

After doing a thorough analysis using OHLC charts overlaying Elliott wave principle, Fabonacci ratios, momentum rate, the 200 and 50 DMA, and resistance break out trending I have come to the conclusion that the in-depth analyses just preformed is for SHIT because the market is counterfeit!

 

Buy physical PMs

And fuck you banks!     

Fri, 08/10/2012 - 09:31 | Link to Comment GMadScientist
GMadScientist's picture

You've timed the ovulation perfectly.

Fri, 08/10/2012 - 09:48 | Link to Comment Hayek FA
Hayek FA's picture

Charting Gold or Silver against fairy paper is like trying to nail jello to drywall.

Fri, 08/10/2012 - 10:51 | Link to Comment azusgm
azusgm's picture

"As long as USA debt increases exponentially , which is guaranteed, there is nothing to stop the exponential trend of the 2001->onwards  bull run. Absolutely nothing, so, as many times during this run, it will just move one back into exponetial corridor, and it will happen very, very soon."

Taxes

Trade with gold will go underground

Makes you a terrorist

Fri, 08/10/2012 - 08:39 | Link to Comment BeetleBailey
BeetleBailey's picture

If someone does cash out of gold to send their kids to college, it better be an AG college; farming, technical or bio-tech.

NOT fucking liberal arts, or some such useless shit.

 

Fri, 08/10/2012 - 08:42 | Link to Comment GMadScientist
GMadScientist's picture

You have the attitude of the beaten serf; too dumb to even know there's life outside the cave and angry with anyone who isn't as willing a slave as yourself.

Amusing, truly.

Fri, 08/10/2012 - 09:21 | Link to Comment CH1
CH1's picture

Damn, you're awfully harsh on Beetle.

Fri, 08/10/2012 - 09:29 | Link to Comment GMadScientist
GMadScientist's picture

Just tired of the "you should only go to school to be a cog" meme...people who think that their personal values should be projected onto the rest of society (if I don't like it, it's "useless shit") are no better than communists and they completely fail to understand what makes capitalism a better (not perfect, just better) system for satisfying our invididual needs, whatever they may be. Since I know Beetle is a 2/20 hustler, he gets zero slack when trying to pull rank on people who do the stuff that makes life worth living in a world full of paper-pushing pussies like him.

 

Fri, 08/10/2012 - 09:51 | Link to Comment blunderdog
blunderdog's picture

Big fascist crowd here, yo.  It's not like this is news.  Society will be perfect just as soon as everyone on Earth thinks the same way these guys do.

Fri, 08/10/2012 - 12:47 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

Agreed 100% and just to further this for people that might be a bit slow on the uptake, if you work 8 hours a day, and sleep 8 hours a day, that still leaves 8 hours of time to fill.  What to do with that time?  Even if you're completely fucked in the head and think it's normal to work 12 hours a day, that's still 4 hours, every single solitary day, of time that has nothing to do with working at a job.  Consider an even more extreme scenario, where you work 12 hours, sleep 8 hours, and do chores 3 hours.  Yep, there's still that pesky hour with nothing in particular to do.  What to do with that time?  Certainly not interact with your family, that's hippie bullshit.  Prostitutes and blow?  Don't need college do do those professions.  Eat $500 a plate dinners?  Cooked and served by liberal arts degreed people.  Sorry for your inconvenience, Beetle, but we liberal arts "dipshits" unfortunately play at least some role in your illusiary "master of the universe" lifestyle.

Fri, 08/10/2012 - 08:43 | Link to Comment Getting Old Sucks
Getting Old Sucks's picture

Leave all your physical gold to grandchildren. 

Fri, 08/10/2012 - 08:47 | Link to Comment GMadScientist
GMadScientist's picture

Drop the last two words and become a buddhist.

Fri, 08/10/2012 - 09:01 | Link to Comment Northeaster
Northeaster's picture

"Leave all your physical gold to grandchildren." -

This is what I was thinking, or at least my children, and it won't be taxed either. I don't have a lot, I think "all in" anything is dumb, but it's an asset that won't be taken or taxed when I'm gone. I don't believe I'll need it for what's left in my lifetime, but it's a good feeling knowing I won't be leaving a burden to my children when I go in the ground.

Fri, 08/10/2012 - 08:48 | Link to Comment MFLTucson
MFLTucson's picture

Sell Gold and get your kids an education so they are prepared for the depression with no jobs.  Brilliant!

Fri, 08/10/2012 - 08:50 | Link to Comment JPMorgan
JPMorgan's picture

The FT is just PM bashing for their pay masters.

They just don't want the public investing in tangible asset classes that don't promote the continuation of the fiat system.

Fri, 08/10/2012 - 08:52 | Link to Comment Scalaris
Scalaris's picture

Cash kids out of college to buy gold > Cash kids to buy gold > Cash gold to buy cocaine and llamas > Win 

Fri, 08/10/2012 - 08:53 | Link to Comment HardAssets
HardAssets's picture

Stack gold . . . . and corn, cob loads of the stuff.

Fri, 08/10/2012 - 09:09 | Link to Comment sessinpo
sessinpo's picture

I post the following while acknowledging that I hold some PMs in my portfolio, physical.

"Tasker incorrectly states that gold is "just another financial asset, as vulnerable to the shifts of investor sentiment as an emerging market."

This is purely opinion, not fact.

 

"He conveniently ignores over 2,000 years of history showing how gold is a store of value."

This is true, gold has not historically gone to zero as other investments have such as a particular stock.

 

"Another fact unacknowledged is how gold has clearly been a store of value since the current financial and economic crisis began in 2007."

Several investments or sectors have risen in that time period. Why isn't the same logic used there? The truth is that many of those bull markets are liquidity driven and PMs are subject to those same rules of the market. It is unfortunate to have goldbugs like goldcore try to ignore supply and demand fundamentals to justify a certain opinion.  The basis for goldcore's entire argument is a hedge against fiat currencies gone bad. Well until goldcore or someone else can tell us all definitively when the the world's reserve currency, the US Dollar, will be defunct, such arguments and statements made are pure speculation and often wrong because the analysis is so blatantly biased.

 

"Further evidence that gold is not just "another financial asset" is seen in the fact that some of the largest buyers of gold bullion bars today are central banks."

Central banks and governments have always held, bought and sold gold. Various transfers have risen and gotten more publicity. Again, the manipulation of information to justify a bullish argument.

 

I do find value in hold some PMs, but I think goldcore's nonsense post, arguments and logic do more harm then good. Finally I will add one more thing. Goldcore doesn't seem to see one important thing regarding the thread topic: "Selling gold to pay for kids college". Why is that? Why aren't those people using gold to pay for college instead of having to convert it to a fiat currency first? Because for some reason, goldcore hasn't accepted that fiat currency is still the preferred and accepted asset to pay for debts, not gold, not yet. This is my basis for suggesting that PMs will may decline relative to the US dollar in a deflationary environment. PMs may rise in value relative to other assets, but until the dollar is killed, people will have to convert ALL assets to dollars to pay for things, including gold.

 

Fri, 08/10/2012 - 09:23 | Link to Comment CH1
CH1's picture

Gold.... HAS  NO  COUNTERPARTY  RISK.

Fri, 08/10/2012 - 09:32 | Link to Comment PatientZero
PatientZero's picture

"This is true, gold has not historically gone to zero as other investments have such as a particular stock."

What the hell kind of glue are you sniffing? "has not historically gone to zero"??? It is IMPOSSIBLE for gold to hit zero.

You know how gold is made? It is the result of a fusion reaction at the primal core of the Sun BEFORE our solar system took proper form. In other words, it was formed roughly 4 billion years ago when the Earth took form. You will never see that kind of raw fusion power again. EVER. Unless we get off this planet and start space exploring. That ain't happening any time soon.

 

Now -- not only is gold a store of value but it has insane numbers of industrial, technological and scientific uses. The same goes for Silver.

Fri, 08/10/2012 - 09:51 | Link to Comment aka Gil
aka Gil's picture

Thank you, and might I add "gold has not historically gone to zero"...zero what?

Fri, 08/10/2012 - 11:49 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

ZERO HEDGE, BITCHEZZ

Fri, 08/10/2012 - 15:47 | Link to Comment smiler03
smiler03's picture

 "You know how gold is made? It is the result of a fusion reaction at the primal core of the Sun BEFORE our solar system took proper form. In other words, it was formed roughly 4 billion years ago when the Earth took form."

Apart from a few simple  errors in this statement, the same applies to every other element in the universe other than Hydrogen, Helium, Lithium and Beryllium.

Fri, 08/10/2012 - 09:35 | Link to Comment Sean7k
Sean7k's picture

You conveniently ignore the effect of manipulation by bullion banks and governments in the price of gold and silver. First, the question of why manipulate it in the first place: to protect the price of currency. Second, to manage the perception of gold and silver as assets by the general public. This has a definite effect on the market demand for PM's. 

Goldcore is merely making a counter argument to Tasker's. It doesn't attempt to measure all assets classes, as Tasker doesn't. Tasker's argument is against gold. 

I agree that currency is the preferred method, but that just might be because it is the ONLY LEGAL METHOD. Did you forget about legal tender laws? 

Finally, pricng or attempting to determine value in a fiat currency is only useful if you're going to buy or sell. If you hold wealth, the price of a dollar is meaningless- unless you hold dollar denominated assets. 

Fri, 08/10/2012 - 10:08 | Link to Comment blunderdog
blunderdog's picture

You're getting a bit TOO Austrian there.  It's important to understand that all commodities/resources/services/etc are ultimately only valued by human beings, BUT....

...you're on a goldbug thread, where it's not really acceptable to question the magical wonderfulness of gold's inherent and eternal value.

Fri, 08/10/2012 - 12:59 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

"It's important to understand that all commodities/resources/services/etc are ultimately only valued by human beings"  

Sorry, didn't realize we were considering non-humans in the discussion of currency, though it's important to note that reptilians also seem to value it as a substance.

All kidding aside, gold is currency.  It's an important hedge against fiat.  I agree that 100% allocation in gold doesn't make sense, but at least 30% seems very reasonable.

Fri, 08/10/2012 - 13:12 | Link to Comment blunderdog
blunderdog's picture

I detect some sarcasm, but if you read the posts here, you should've long ago realized that there's a very LOUD goldbug contingent that truly seems to believe that gold's value is not *arbitrary.*

Fri, 08/10/2012 - 14:26 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

"gold's value is not *arbitrary.*"

It's fiat price is arbitrary.  That's the important distinction.  It's actual value is not, both as a undilutable medium of exchange, and as an industrial metal.  If that makes me a "goldbug", fine, but keep in mind that using that term is either wittingly or unwittingly advancing underlying motives.

http://www.zerohedge.com/news/disinformation-how-it-works

"Once you label me, you negate me."  Why are you negating people that hold the opinion that it's a good idea to hold gold as a store of value?  What (or whose) purpose are you serving?  I'm just a person trying to do what I can to protect my family.  Why don't you want me to protect my family?

Fri, 08/10/2012 - 14:48 | Link to Comment blunderdog
blunderdog's picture

Gold's value is PRECISELY arbitrary.  It is a rare element, and that's *all* it is.  There are other rare elements as well, and any one of them can potentially be used as a form of "wealth preservation" or "sound money."

That's the first critical realization of the Austrian school of economics: ALL valulations are based on human psychology.  There's no external source of information about what make something "valuable."

My purpose is to point out failures in *reasoning.*  I don't particularly care what anyone does based on anything I say.

Fri, 08/10/2012 - 14:58 | Link to Comment Precious
Precious's picture

The value of anything is arbitrary until you have a market.  Once you have a functioning market, with participants, arbitrariness disappears.

So if you have a market, especially one with liquidity in a baseline currency instead of barter, then the value of an arbitrary thing becomes completely non-arbitrary.

Fri, 08/10/2012 - 15:06 | Link to Comment blunderdog
blunderdog's picture

You can create a market for anything, though, and a market can disappear as quickly as it appeared.

Markets don't determine "values."  Markets determine PRICES.  Things that cannot be sold still have value, regardless of a market-determined price.

Fri, 08/10/2012 - 08:57 | Link to Comment GMadScientist
GMadScientist's picture

Educate your kids yourselves early and often, then they can get a scholarship, and you can make them buy their own damn gold.

 

Fri, 08/10/2012 - 08:57 | Link to Comment tradewithdave
tradewithdave's picture

If there is no link between human consciousness and the perceived value of precious metals as measured against that human consciousness rather than as against fiat, then Tasker's thesis would be correct, no?  However, if you agree with that assessment (gold consciousness link) then you are subject to Gensler's most recent naked Libor treatise and how his continuing move towards near frictionless money (electronic rather than paper money) leads to a reverse of Gresham's law.  Unfortunately for FOFOA the prisoner's dilemma doesn't work as a single player game theory.  As a matter of fact, game theory only works with two people and the same can be said of conspiracies. 

Raise your hand if you would be willing to go to jail for not using your assigned electronic money to satisfy your double coincidence of needs.  Not sure how to answer.  Then ask Fekete or Jaitly.  I don't think you will get an answer because if you did they (and their sponsors) would be out of business.  Freegold is free alright in the same way you can imprison a man but you can't imprison his mind.  Who needs habeas corpus when you have habeas mentis?  Time for SecTreas to re-write the Magna Carta.  Confidence in the U.S. dollar... a Guantanimo of confidence for the mind and a feedback loop of distraint for the Fed.

www.tradewithdave.com

Fri, 08/10/2012 - 09:21 | Link to Comment GMadScientist
Fri, 08/10/2012 - 08:58 | Link to Comment Crispy
Crispy's picture

Keep the gold and if the kids dont get a full ride they dont deserve college.

Fri, 08/10/2012 - 09:03 | Link to Comment 1000yrdstare
1000yrdstare's picture

Another desperate act, ladies and gentleman, Please do the opposite of what these shills want or suggest...seems to work for me....

 

Fri, 08/10/2012 - 09:11 | Link to Comment sessinpo
sessinpo's picture

Yep, and I've been correct so far. I love the down arrows because I need them to take the opposite position of me so I can profit off their loss. THANK YOU!!

Fri, 08/10/2012 - 11:49 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Funny no one brings up the issue of negative interest rates when talking about golds value.

ZIRP is gasoline on the fire for the Golden Bull. 

Fri, 08/10/2012 - 09:10 | Link to Comment 1000yrdstare
1000yrdstare's picture

He also suggests that gold is a bubble as "the price has simply become too rich".

Ha!, and about to be richer!

Fri, 08/10/2012 - 09:13 | Link to Comment Vendetta
Vendetta's picture

tasker is feeding the muppets their daily dose of propaganda

Fri, 08/10/2012 - 09:22 | Link to Comment Goatboy
Goatboy's picture

You enjoyed common prosperity under unperfect fiat currencies, accumulated some reserves and now when times are tough you prefer not to be part of the common? Its natural, do buy some gold.. if it will make you feel better. Whole idea (of gold as a savior) is retarded and most people will not profit on this bubble of desperation. As usual.

Fri, 08/10/2012 - 14:37 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

"unperfect"

Got to there and realized they're substantially underpaying their shills.  Quality suffers.  You get what you pay for.

Fri, 08/10/2012 - 09:23 | Link to Comment serog
serog's picture

Good headline, anyway.

Fri, 08/10/2012 - 09:26 | Link to Comment Gideon Gono
Gideon Gono's picture

My kids are 10 years out from college.  Years ago I sold mutual funds, and... each kid has 10 Eagles and 500 oz of Ag in their college fund.  I'm the fund manager.

Fri, 08/10/2012 - 09:35 | Link to Comment GMadScientist
GMadScientist's picture

Good man. I would just "rehypothecate" it into a Porsche.

Fri, 08/10/2012 - 09:42 | Link to Comment PatientZero
PatientZero's picture

I hear you, sir. My kids are still young, but I've been saving Aurum and Argentum for my kids so when we come of age and understand finances, they'll be surprised with their very own literal treasure chest of shiny booty.

Aren't I a great dad?

Fri, 08/10/2012 - 09:50 | Link to Comment DavosSherman
DavosSherman's picture

The Financial Times is owned by whom?  GS isn't the only gang that calls 'em muppets. 

Fri, 08/10/2012 - 10:06 | Link to Comment Boxed Merlot
Boxed Merlot's picture
Cash Out Of Gold And Send Kids To College?...

Tell that to the University of Texas' Endowment Fund.

Fri, 08/10/2012 - 10:40 | Link to Comment GOLDTEETHSILVER...
GOLDTEETHSILVERFILLINGS's picture

I WOULD HAVE GONE TO COLLEGE BUT HIGH SCHOOL GOT IN THE WAY!

Follow the yellow brick road...

Fri, 08/10/2012 - 10:46 | Link to Comment Bangers
Bangers's picture

Gold's soooo last millenium. Bitcoin's soooo this millenium.

Fri, 08/10/2012 - 11:02 | Link to Comment jaygould
jaygould's picture

must be fun being a gold bug??? ok, ok 8/1999 250 --> 9/2011 1900; the perfect short --> 1623 8/10/2012 --> ?? my continuing bet, lower, of course

Fri, 08/10/2012 - 11:07 | Link to Comment azusgm
azusgm's picture

Suck it in, work hard, pay the kid's college and teach him/her the importance of being debt-free. Worked for us. Very appreciative daughter who is free to work for herself instead of a corporate master.

I started buying PMs while she was in college. Gave bullion rounds to niece and nephew for birthdays/Christmas/graduation. Nice to see gifts appreciate so much for them. Could have bought some itoy or edoodad, but don't think it would have worked out so well after a period of time.

Fri, 08/10/2012 - 13:49 | Link to Comment Missiondweller
Missiondweller's picture

This is from 2011????

Do NOT follow this link or you will be banned from the site!