Egon von Greyerz: "Too Late To Jump On The Goldwagon? "

Tyler Durden's picture

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traderjoe's picture

Gold Bitchez!

- sorry, couldn't resist...

Misean's picture

Tell 'em about the twinky Egon.'s picture

And don't cross the streams. It would be bad.

MachoMan's picture

I collect spores, mold, and fungus

Bastiat's picture

Oh man, that Milk Cow!!!!


CapedCrusader's picture

It's never too late to jump on the Gold bandwagon.  Ebay and the Gold informercials tell me so.  Always buy gold and never sell good.  Total debt up 6x and gold up 50x.  Gold is not a bubble.  Just buy.  Don't sell.  Just think how rich you'll be.  lol.



spartan117's picture

First, the gold infomercials you are referring to are selling gold-clad coins.  Not the same as REAL gold.  Second, cash 4 gold stores are popping up all over California.  Can't speak to the rest of the country, but if my neck of the woods is any indication, I'd say people are SELLING their gold, and not buying any.  Third, gold is not up 50x.  As a percentage to total US debt, both public and private, the total value of gold has fallen in the last 10 years.  Fourth, and perhaps the most important of all, you're a moron.

Thomas Jefferson's picture

All the commercial vacancies resulting from the crash of 2008 have been filled with "We Buy Gold" stores.  It is a nationwide phenomenon.

MachoMan's picture

I'm wondering how the hell people are still liquidating their gold at this juncture...  I would have thought they would have liquidated their entire stocks by now, but apparently the bubble (much of the stuff probably still has a credit card balance) was larger than I guessed.  If these people weren't pissed off yet, I'd think they'll be really pissed off if grandma's old ring could be traded for a house only a few years after selling it...  

Precious metals holdings necessarily require other liquid assets so as to not force yourself into a liquidation...  if you're buying an insurance policy, better make sure you can pay the premiums between now and your casualty.

Doña K's picture

Those selling gold, need the money. Unemployed, underemployed, unfotunate, on and on. People who have something left from paying taxes and the debasement of the dollar, buy gold and silver to preserve the purchasing power of their savings.

Bring the Gold's picture

While your entire argument is very accurate, I felt that point four was really the clincher Spartan.

greased up deaf guy's picture

my "is gold in a bubble" gauge is craigslist. i do a search for "gold coins" in the local area and the ads posted by prospective buyers versus prospective sellers is usually about ten to one. if the day comes when there are more ads posted by sellers as opposed to buyers, only then will i even start to consider gold to be in a bubble. my guess is that will be never.

Snidley Whipsnae's picture

Gold/silver are headed East. When a weak hand in Cali or elsewhere sells 'scrap' gold, who is the end purchaser? Of course China/India are the big buyers but all of SE Asia, the Mid East and Europe must be considered for all of these soverigns have a long history of fiat failures and there populations do not trust paper money...for good reasons.

"Vietnam to buy 5 tons of gold to ease market crunch"

If you want to understand the demand for PMs, look East... Americans are almost totally clueless about PMs and will only realize what has happened after it has happened...

newstreet's picture

Carthago delenda est.

choorles's picture

"The [way this] negative real interest rate story relates to gold is very interesting, because [people equate] the negative real interest rates with deflation and they equate deflation with an environment that is poor for gold. Historically, however,  negative real interest rates or ‘deflation’ are actually the best time to be buying gold … So gold is [increasing] in either deflation (which is really another word for hyperinflation), hyperinflation or inflation … So there is really a no lose situation. There’s no top on gold, because there is no amount of destruction that one can imagine won’t visit the fiat currencies around the world because the fiat currency grid is going to go the way of the dodo … There is no top on gold, $10,000/oz for gold, yeh of course, it could go a lot higher because fiat currencies are going to zero … It has run it’s course, it’s finished, it’s over, the 25 year paper bull market is finished”

Remember, it’s just a ride…

 The monetary revolution will not be televised. You need ¡SilverRevolución!

 Help us follow the paradigm shift towards a decentralized monetary system.

zorba THE GREEK's picture

I read this article earlier on 321 Gold and found it pretty well sums up most of the

extremely negative scenarios that have been bouncing around the Blogosphere for

the last couple of years. What frightens me the most is that, through a process of

eliminating unlikely outcomes due to unlikely actions by TPTB, it is basically the same

conclusion that I have come to believe. I continue to read on several sites hoping to

find another less dire, plausible outcome for society based on information that I was

unaware of or had overlooked. In the meantime, I have taken several precautionary

measures and will continue to prepare for the inescapable chaos and hardships which

lie ahead.

GFKjunior's picture

So what's up with Switzerland? I mean they seem safe and smart with tons of gold in their banks and a well armed populace. When SHTF it seems like a good place to be, or am I missing something?

Thomas Jefferson's picture

Attention to detail.  US gov has keys to the ViaMat vaults.

Barmaher's picture

US Gov has keys to the US ViaMat vaults.  Not the ViaMat vaults in Europe.

Sophist Economicus's picture

Yup. And they'll get a full marching band welcome at Zurich international and a ticker tape parade as they march to the vaults to carry the stuff back to the states

Pegasus Muse's picture

Wrote GoldMoney this morning on this issue.  Just got their reply.  The bolds are mine.



The last week or two there has been a issue floating around on Precious Metal websites.  In a recent interview with Jim Rickards on KingWorldNews either Jim or Eric mentioned something about 'the US government has the keys to the ViaMat Bullion Vault'.  Now I'm reading the same thing in the comment section of von Greyerz's latest article, posted on ZeroHedge:

You guys need to detail what the truth is on this matter and the potential impact for GoldMoney customers.  If the US government (or any other government) has access to the vault in which a customer's bullion is stored they may need to consider other storage arrangements.

Perhaps Mr Turk can address this on video so people will have the correct answer 'from the horse's mouth' so to speak.  Otherwise rumors will just continue to spread. 


pegasus muse


Dear Mr. Pegasus Muse,

Thank you for your message.

Please note GoldMoney will not offer bullion storage in any country where the government requires the vault operator to give the government a key to the vault, unless we disclose to our customers this condition of storage. 

We can confirm that this condition of storage does not apply to the vaults operated by Via Mat in London, Zurich and Hong Kong. If there is a change, we will notify our customers of this change as soon as we are advised.

GoldMoney operates on the island of Jersey – one of the British Channel Islands – and follows Jersey law. While the future cannot be predicted, it is worth noting that gold has never been confiscated in Jersey.

How gold confiscation would affect customers will depend largely on the scope and specifications of the restriction. For example, if gold were to be confiscated in the US, there may not be any repercussions for US customers holding gold in vaults outside the US.

It is therefore difficult for GoldMoney to mitigate against all possible outcomes. However we do aim to provide our customers with as many options as possible to enable them to diversify their assets by class, storage location, and by offering the option of taking physical delivery.

GoldMoney provides its customers with the facility to purchase gold, silver, platinum and palladium and the opportunity to diversify and optimise their investment portfolio. Furthermore, you have the ability to choose between storage locations in London, Zurich and Hong Kong, which affords geographical diversification.

Furthermore, GoldMoney operates under the laws of Jersey, one of the British Channel Islands, and is subject to the exclusive jurisdiction of the Courts of Jersey.

GoldMoney never discloses any customer details to any third party, government or tax authority and would not do so unless obliged to by law. There is no history of gold confiscation in Jersey, the British Channel Islands or the UK.

Jersey is a politically and economically stable jurisdiction that has become a major financial centre because its legislation relies upon the principles of common law, which prioritises property rights.

For additional information please refer to our Privacy Policy:

We appreciate you taking the time to share your concerns. Please do not hesitate to contact us if you have any additional questions.

With kind regards.


Senior Relationship Manager – GoldMoney

Bárðarbunga's picture

+1 Zorba

The Ponzi will break down. The big question is when. What has to happen to get it rolling?

On the author's use of "circa" I'm guessing he found himself a new word this week.

Doña K's picture

IMHO, it will unravel very fast, as soon as one peripheral European country bails out of the EU and prints its own money, or the German people throw out Merkel.

Circa=Castillian expression for approx. 

His use in English is incorrect  as it is not followed by a date.


7bit's picture

Judging fom his name the native language of the author is German. The use of the word "circa" for "approximately" would be absolutely correct in *german*, its used very often in the german language. This is probably just one of these "false friend" mistakes/mistranslations that happen to everybody who is not 101% versed in a foreign language.


Snidley Whipsnae's picture

The Ponzi is breaking down as we watch. Every week, and sometimes daily, we see headlines that would have been seen only in 'The Onion' four years ago.

Here is Jim Rickards on CNBC telling the bobble heads what is going to happen and, of course, the bobble heads are in denial. Rickards tells it like it is... Soverigns have to default on their bonds, big banks have to be broken up, bank stocks have to be defaulted on, bonds of big banks have to be defaulted on... Or we are all are in for 20 years of hard road.

The bobble heads say "we will go the muddle through route" with more printing, more fiat weakness, punish savers, punish Main St, etc. Rickards tells them that the WWW is going to stop that approach by soverigns, that everyone now has a megaphone and everyone is calling for an end to saving the banksters to the detriment of all others. Rickards tells them that gold will save the day and will be the new backing for new currencies...

The bobble heads are dumbfounded... lol...

AmazingLarry's picture

The whole article attempts to refute it's title: there's no goldwagon. 

Just for fun, I carried a $50 Eagle around with me one weekend and showed it to a number of people. No one had a clue what it was "worth." Only one person correctly identified it. 

But I agree, buy some gold plated clad, and try to flip it as real. You know it's the Amerikan way.



zorba THE GREEK's picture

Larry That would bring you bad karma, and the last thing you want to have when TSHTF is bad Karma.

Troll Magnet's picture

that is NOT the american way, my friend. that's the CHINESE WAY!

vast-dom's picture

Fuck gold! Silver is the move!

Manthong's picture

When I started really into this last year, mostly with Ag, $10,000 gold seemed absurd.

The more I learn about the fundamentals of the many dilemmas we are in, the more I am convinced that this number is reasonable and may very well be conservative.

I forget who said it, but one of the axioms I heard was “Gold will make you sleep well, but silver will make you rich”

Keep in mind that even with a 40:1 Ag:Au ratio $10,000 gold gets you $250.00 silver.

I find the arguments for the ratio to be lower, even to parity, credible.

That having been said, the circumstances leading to $10,000 gold require consideration of the Pb:PM ratio.


Doña K's picture

The silver drawback is the price to weight ratio when you're on the move.

A 5' long 1-1/4"D PVC pipe full of 1oz. of gold maple leaves = $1 Million - Painted dark gray in a roll bar of your Jeep or in the kitchen plumbing under cabinets and a thousand other ways to keep it close when you have to.



Manthong's picture

No argument on the weight and bulk of gold if you need to bug out with max value and lowest profile.

For less than absolute Armegeddon, the silver probably will provide the best bang for the buck as fiat fizzles.

PaperWillBurn's picture

The silver drawback is that silver is best used as a commodity. Central banks don't stash silver in their vaults..they store gold. A consumable does not make a good referance point. The global economy needs a new reference point and CB's are loading their vaults with it as we type.

Manthong's picture

"The global economy needs a new reference point and CB's are loading their vaults with it as we type."

Agreed, but..

Silver is speculation to be sure, but a good one.. it is slowly going away and that means it is becoming relatively more rare. The GS ratio is lilely to narrow and... silver alway was and always will be money.

Ketsa's picture

The problem with silver, at least here in Switzerland, is that you have to pay VAT on transactions.

Gold is not subject to VAT here. not sure about anywhere else.



Bansters-in-my- feces's picture

"also since the Government creates money out of thin air"...???

Stay away from the dope dude,,,,I'ts too strong for you.

dark pools of soros's picture

riddle me this..  if everyone is suppose to buy gold, then who is selling?  If the thought is to tell everyone to buy gold then wouldn't those people tell the sellers to NOT sell?

Is it the thought that 'the common man is getting over on the central bankers' by buying their gold stash?  hrmmm no

Are we all buying it up hot from the miner's depths? Well that is NEW gold so won't that dillute gold once the manic buying stops?

Or is this like any other greater fool theory and we are all just loading up to sell the bubble right before it pops??

Or, lastly, we are buying all the central banker's gold so they can use all this fiat money while it can still buy them hookers and coke. Then, when it is time to make a new currency they will just trade that new 'more valuable' paper for our gold so we can finally try to have some fun with those now worn out strippers and our old ass bodies?


just food for thought on why you are here and what your plan is

Hulk's picture

fiat money buys fiat gold...

greased up deaf guy's picture

please allow me...

if everyone is suppose to buy gold, then who is selling?

dealers who make their living on volume and private owners who think it's had a good run and is overpriced.

If the thought is to tell everyone to buy gold then wouldn't those people tell the sellers to NOT sell?

see above. they're making a market. by the way, who are "those people"? the only person you should answer to for your financial decisions is you.

Are we all buying it up hot from the miner's depths? Well that is NEW gold so won't that dillute gold once the manic buying stops?

like oil, production will follow suit once demand diminishes. my question to you is what will be produced more in the foreseeable future? gold or fiat?

Or is this like any other greater fool theory and we are all just loading up to sell the bubble right before it pops??

maybe, but to each their own. personally, i won't be selling any gold until there is something else of tangible value that i can quickly purchase after converting that gold to FRNs or whatever the bartering medium is at that time.

Or, lastly, we are buying all the central banker's gold so they can use all this fiat money while it can still buy them hookers and coke. Then, when it is time to make a new currency they will just trade that new 'more valuable' paper for our gold so we can finally try to have some fun with those now worn out strippers and our old ass bodies?

the sooner, the better ;).

Doña K's picture

There is a government obligation to sell coins. Of course they can stop if they want. Futures big game is played by those who need to liqidate for cash to be used as a medium of exchange like land or company aquisitions.

I for one, once I could buy a 65' ketch for 100-1oz gold coins, I become a motivated seller.

kito's picture

german business groups now pushing eurobonds. just a matter of time before fiscal consolidation in europe becomes reality

Thomas Jefferson's picture

Martin Armstrong offered this as a solution to the Euro crisis.   Interesting to see it being implimented so quickly.  Not surprised though.  The solution is always further consolidation of wealth and power.  Welcome to the NWO.

sgorem's picture

my gold stays with me. fuck switzerland. and i think the author was trying to say "circa jerk".

scratch_and_sniff's picture

Yeah, storing gold with the swiss, that worked out well for the jews.

doggings's picture

to be fair, they had bigger problems than their banks at the time

Pay Day Today's picture

Shit. That makes me worry now.