'Gold Bullion or Cash' Shows Buffett, Roubini, Krugman Mistaken; Faber, Rogers, Bass, Einhorn, Gross Correct

Tyler Durden's picture




 

Submitted by Gold Core

'Gold Bullion or Cash' Shows Buffett, Roubini, Krugman Mistaken; Faber, Rogers, Bass, Einhorn, Gross Correct

Gold’s London AM fix this morning was 1,778.50 USD, 1,328.230 EUR, and 1,125.419 GBP per ounce.

Yesterday's AM fix was USD 1,754.75, EUR 1,325.04, and GBP 1,116.32 per ounce. 

Spot gold hit a 3 month high of $1,787.55/oz yesterday rising gradually for the fourth day in a row. Gold closes in New York at $1,778/oz and has consolidated in Asia and early European trading.

Silver surged over $1.20 yesterday to over $35.50 – up over 3.55% on the day and convincingly breaching recent resistance at the $34.50 level. Next level for resistance is $40/oz and then the record nominal, repeat nominal, high of 1980 at $50/oz.

'Gold Bullion Or Cash' was released for public viewing on Wednesday. The video is educating the public internationally about gold bullion and why gold is safer than cash in the long term and in certain circumstances gold will be safer than cash in the short term as well.

GoldCore Gold Bullion

http://www.youtube.com/watch?v=ja0EeLCraXI

Gold's importance in the uncertain world of today, gold's extreme rarity, liquidity and safe haven currency status is illustrated.

The ‘gold bubble’ and the many gold myths and misconceptions are looked at and the video uses music, images, facts and quotations to show how gold is a proven store of value throughout history and an important diversification today.

Currency debasement of all major currencies is happening today on a scale never before seen in history.

Yet there continues to be a complete lack of awareness amongst the majority in the western world as to the risks posed by our currency monetary and financial system.

There continues to be a lack of knowledge and indeed often wilful ignorance regarding gold.

Indeed, some comments on gold are so ignorant of the historical and academic record that they have all the hallmarks of crude anti-gold propaganda – and will be seen as such in time.

Gold is a proven safe haven asset and currency. Despite much recent academic evidence and the historical record showing this and despite voluminous articles, research and evidence, (evidence succinctly summarised in the video 'Gold Bullion or Cash'), there continue to be frequent anti gold outbursts by some of the most respected and trusted people in the western financial and economic world.

Such attacks on gold have come from men such as Paul Krugman, Nouriel Roubini and more recently Warren Buffett.

Alan Greenspan correctly wrote in 1966 that "an almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions”.

Today, an almost hysterical antagonism towards gold bullion as a diversification and as a store of wealth alternative to fiat currencies unites beneficiaries of the current status quo – both intellectual beneficiaries and material beneficiaries.

That status quo is a massively leveraged and insolvent monetary, financial and economic system. 

The masses are slowly realising the fundamental unsoundness of our global monetary system and are beginning to ask questions. But they are continually lulled into a false sense of security by the “experts”.

Experts incidentally who failed to warn them about the stock, property and global debt bubbles before it was too late.

Many Greeks today lament that they were not aware of gold as a safe haven and wish they had diversified into gold. These lamentations will be experienced in other debt-laden industrial nations in the coming months and years.

A minority in the western world are seeing through the anti-gold bias and beginning to take action and buy physical bullion as insurance and as protection from significant monetary, systemic, geopolitical and macroeconomic risk.

Crude anti-gold propaganda that is based on sophistry, silly straw man arguments, ad hominem and personal attacks, poor research, inaccuracies and actual fallacies is the stock in trade of what we could be termed the expert "paper bugs".

We would prefer not to have to engage in name calling but unfortunately the likes of Roubini, Krugman and Buffett have tended to engage in ad hominem attacks (accusing those who buy gold or sell gold bullion of being driven by fear or even of creating fear) rather than engage in rational debate regarding the merits of gold as diversification or as financial insurance for one’s and one’s family’s portfolio or life savings.

This shows the intellectual weakness at the heart of the anti-gold proponents' very poor arguments and faulty logic which ignores thousands of years of history and recent excellent academic research.

A few probing questions from a knowledgeable interviewer about simplistic anti-gold opinions would quickly show the weakness of their pronouncements regarding gold.

A hosted TV debate would similarly help enlighten people but we would be surprised if the expert paper bugs would engage in such a debate.

Meanwhile, many of the people and investors who correctly predicted the current crisis - and protected themselves, their families and their clients in the process – continue to advocate a diversification into gold.

Faber, Rogers, Einhorn, Gross and many others have all articulately laid out why they believe gold is an essential diversification in these times.

The video 'Gold Bullion or Cash' clearly shows who is mistaken and who is correct.

NEWS

Yahoo Finance
Gold comes off 3-mth peak; heads for weekly gain‎

The Wall Street Journal
Gold, Silver Hit 2012 Highs As Dollar Slips

Bloomberg Business Week
Gold Rises to Three-Month High as Dollar Drops; Silver Gains

The Australian
Gold, silver at year high on Iran jitters

RT
Tsunami of debt: Japan faces costs of credit

COMMENTARY

MISH's Global Economic Trend Analysis
Price of Oil Hits Record High in Euros and British Pounds; Oil Shock Coming

Reuters
Video: Jim Rogers: Greece Deal Is A Sham

The Economic Collapse Blog
Video: Even Robert Kiyosaki Is Warning That An Economic Collapse Is Coming

Barron's
Hendry: Gold at $5,000/oz? As "Hyperdeflation Happens Before Hyperinflation"?

BBC
Audio: Jim Rickards on Currency Wars and Gold

Mineweb
Western central banks - more debt, Asian central banks - more gold

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Fri, 02/24/2012 - 08:35 | 2192221 Squishi
Squishi's picture

Bluff it and the E con o mists are getting it good and hard! 

Fri, 02/24/2012 - 08:54 | 2192248 Colombian Gringo
Colombian Gringo's picture

Gold is a major threat to the fiat money beneficiaries such as Buffet and other wall street insiders.  Besides Buffet is overrated, the product of an excellent PR machine.  If I could get  easy access to billions and inside deals, I would also be in favor of fiat and against gold.

Fri, 02/24/2012 - 09:20 | 2192282 Squishi
Squishi's picture

let me clarify: these people are con men, they spread propaganda for washington a.k.a the FED! 

Fri, 02/24/2012 - 09:28 | 2192303 HoofHearted
HoofHearted's picture

Wonder why it is Roubini, Krugman, and Buffett? Just look at the Greenspan quote about statists. Then think about these three...

I had a colleague tell me that "PMs are an illegitimate investment vehicle." Another colleague stated, "Yeah, but hasn't he tripled or quadrupled over the last three years?" The discussion ended there. Sure, there are sometimes good businesses to invest in. My idea now is to preserve wealth so that later I ca make it grow...in the right environment. We're not there in the current economic state of the world.

Fri, 02/24/2012 - 10:47 | 2192510 GetZeeGold
GetZeeGold's picture

 

 

I pine for the days when propaganda wasn't a bad word.

 

 

Fri, 02/24/2012 - 14:38 | 2193507 SAT 800
SAT 800's picture

Propaganda has always been a "bad word"; so your time period doesn't exist. In the modern world, the PR flacks prefer to talk about "Manufacturing Consensus", it sounds so much nicer.

Fri, 02/24/2012 - 10:58 | 2192564 trav7777
trav7777's picture

gold is a currency that is accepted pretty much everywhere.   And it has none of the negatives that come with whichever sovereign would print the cash you wanted to hold.  There's nobody gonna QE gold, nobody gonna CHF/EUR peg on you in the middle of the night.

This is why sovereigns hold it and why they "hate" it...it exists independent of their ability to control.

Fri, 02/24/2012 - 11:02 | 2192579 GetZeeGold
GetZeeGold's picture

 

 

The treatments seem to be working Trav......that almost makes sense. :)

Fri, 02/24/2012 - 12:59 | 2193067 Ghordius
Ghordius's picture

I thought this was always Trav's position. I understood him this way about gold and less so about silver?

Notice that he does not go mystical about gold, as others do. ;-)

Fri, 02/24/2012 - 14:40 | 2193516 SAT 800
SAT 800's picture

Gee, you posted something without hating on anyone and getting 113 thumbs down; are you feeling alright?

Fri, 02/24/2012 - 11:28 | 2192682 Bastiat
Bastiat's picture

Well said.

Fri, 02/24/2012 - 12:53 | 2193035 Roi
Roi's picture

http://fofoa.blogspot.com/2012/02/yo-warren-b-you-are-so-og.html

 

...On the difference between saving and investing... mostly...

Fri, 02/24/2012 - 09:27 | 2192300 bigkahuna
bigkahuna's picture

He has his share of gold laying around somewhere. There is no shortage of bold liars in the USA and he is one of the big ones. He got his railroad deal from the white house though, I give him sith lord status for that-right along with cheney and soetoro.

Fri, 02/24/2012 - 09:35 | 2192312 disabledvet
disabledvet's picture

"there's no such thing as a gold billionaire because there's not enough gold." I agree with that! How about a "copper billionaire" then since "if we debase one we debase all....

Fri, 02/24/2012 - 09:51 | 2192340 wandstrasse
wandstrasse's picture

In the future everyone will be a billionaire for 15 minutes...
Andy Warhol statement adopted to Weimarer Republik conditions.

Fri, 02/24/2012 - 14:47 | 2193547 SAT 800
SAT 800's picture

A metric tonne goes for $56.1 Million; so 200 Tonnes is a little over a Billion $US. I'm willing to bet there is a small, family oriented, investment group in Europe that has perfect title to a 200 Tonne Chunk. It's in a railroad tunnel driven part way into the swiss Alps; it's a blind tunnel and it has a nuclear blast door at the opening. Some people are extremely well prepared.

Fri, 02/24/2012 - 09:22 | 2192287 Stoploss
Stoploss's picture

His father, Howard Buffet, had a very different view of gold. I wonder what father would say to son were he still alive today?

Fri, 02/24/2012 - 09:37 | 2192314 disabledvet
disabledvet's picture

"WOW!" and "Holy shit!" come to mind.

Fri, 02/24/2012 - 12:05 | 2192825 AetosAeros
AetosAeros's picture

I was thinking more along the lines of Smokey and the Bandit with Jackie Gleason Playing Sheriff Buford T. Justice:

"There's no way, nooo way, YOU sprang from my loins.

Remind me when I get home to slap your Momma in the mouth!"

Fri, 02/24/2012 - 10:37 | 2192464 Stuck on Zero
Stuck on Zero's picture

The same modern statists who hate gold also hate families, global warming deniers, churches, morals, the Constitution, the rule of law, and anyone who honors ethics more than power. 

Fri, 02/24/2012 - 12:51 | 2193022 Tsunami Wave
Tsunami Wave's picture

F the modern statists

Fri, 02/24/2012 - 11:20 | 2192644 Baptiste Say
Baptiste Say's picture

"I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. You must be prepared to meet their opposition intelligently and vigorously. They have had 15 years of unbroken victory.

But, unless you are willing to surrender your children and your country to galloping inflation, war and slavery, then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money." - Hon Congressman Howard Buffett .*1

I think it's clear Howard Buffett favoured gold due to a steadfast respect for humankind and freedom. Chances are he'd disgraced with Warren.

Warren Buffet, once a value investment hero who made billions through shrewd investment sold his soul at least a decade ago in the pursuit of making tens of billions more, in 2002 he visited Jacob Rothschild's manor along with Arnold Schwarzenegger so it's clear he stopped being a good old boy from Omaha years ago and is a long time insider by now, I'm leaning towards concluding Warren Buffet is one evil man and I think his principled, old right, libertarian father would be ashamed.

*1 - from the The Commercial and Financial Chronicle on 5/6/48 via LewRockwell.com

Fri, 02/24/2012 - 11:26 | 2192671 Badabing
Badabing's picture

In Fortune magazine Warren B. has article that states his strategy is identifying under and over valued stocks. If so, what the fuck happened with gold so far this decade?

Also he gives no credit where credit is due, to the tax payer, that’s us!  If his investments weren’t bailed out he would have lost all the inheritance from his father.


He also states that gold earns no interest while ignoring the gold leasing by the big boys.

He must clarify his statement and say gold earns no interest for the little people that have to pay taxes!

Fri, 02/24/2012 - 08:36 | 2192223 bullionbaron
bullionbaron's picture

It continuously susprises me how long it's taking for the general public to 'get' precious metals.

http://www.bullionbaron.com/

Fri, 02/24/2012 - 08:57 | 2192254 French Frog
French Frog's picture

In a strange way, it could be because a lot of people know or have at least heard of the term 'bubble' and many of them believe that Gold is in its own bubble now and "they're not going to get suckered in right at the top".

This is not my view, but to a lot of people, the corelation between the eroding value of fiat currencies and the rise in the price of gold is not really understood: after all, if you were to ask 100 person what they think of inflation (even moderate), most would tell you that it is a good thing, despite the continual erosion that it creates in their purchasing power.

Fri, 02/24/2012 - 09:22 | 2192288 chubbar
chubbar's picture

Agreed, but the "bubble" mantra is part and parcel of the disinformation program designed to keep the general public out of PMs, IMO. Also, most of the general public are not well versed on financial or economic matters and trust what the "experts" are telling them. When they sense a disagreement between experts the default position is to do nothing instead of proactively seeking out answers.

I don't have a lot of hope that americans will come around to PMs until it is too late. The gov't knows that a large movement into PMs will not be possible given the constraints on physical availability and a large upward price movement reveals that the king has no clothes.

Fri, 02/24/2012 - 10:05 | 2192366 bigkahuna
bigkahuna's picture

Once people understand the scope of the contemporary BS and disinformation that has been continuously flowing for at least ten years, they will warm up to PMs as well and that right quickly. See: unauthorized wars / false flag attacks / TARP / and so on. Outside of that, most people are effectively "asleep at the wheel". The shiznit will have to hit the fan and fly right into their face to wake up the herd. 

Fri, 02/24/2012 - 15:02 | 2193608 SAT 800
SAT 800's picture

Ten Years? More like 90 years.

Fri, 02/24/2012 - 23:30 | 2194940 bigkahuna
bigkahuna's picture

Agreed. I am only addressing the conteporary post Clinton stuff for now. There are many layers to peel back on this nasty onion.

Fri, 02/24/2012 - 10:30 | 2192445 Acet
Acet's picture

Another reason why most people don't buy gold is because they either have no savings at all or the few savings they do have are held for short term objectives (a new car, vacations) rather than long-term "saving for a rainy day".

This dawned on me when I saw a documentary here in the UK on BBC about how did we got into the crisis in the UK. At some point they interviewed people on the street in China and in the UK and asked them how much did they roughly save as a percentage of their income - most Chinese were saying "50%", "40%" while almost all the British where saying "nothing" (there was one out of the 5 interviewed that said "10%").

I've been probing around my friends and aquaintances here in the UK (most of them professional, middle class types) and the vast majority don't save much if anything at all, which confirms the picture I got from that documentary.

It seems to me that in developed nations naked, almost irrational consumerism is the mainstream and being cautious and saving for the future is rare and old-fashioned.

This is slowly changing: as people get hit by problems (mostly unemployment) or see others hit by them, they first start paying up their debts (which is already happening) and then start saving for a rainy day. Only when they have enough rainy-day savings will they start worrying about their savings being eaten away by inflation and only then will gold used more by individuals as a safer store of value.

 

Fri, 02/24/2012 - 10:37 | 2192471 Chump
Chump's picture

Excellent comment.  By the time a majority of Westerners get around to buying gold to protect themselves it will be far more cost prohibitive.

Fri, 02/24/2012 - 10:54 | 2192541 purplefrog
purplefrog's picture

Indeed.  Even now, for most, silver is their only option.  IMHO, it's not a bad option at all right now.

Fri, 02/24/2012 - 11:31 | 2192694 bigkahuna
bigkahuna's picture

yessssssssssssssssssssssssssssssssssss........

Fri, 02/24/2012 - 19:56 | 2194557 Chump
Chump's picture

I can attest to that personally.  I'm a member of the crowd that can only afford silver, and so I'm heavily weighted in it.  I have, however, taken the hit on premiums and bought several fractional amounts of gold.  I also believe that before we really spin away into a destroyed currency the price of PMs will crash along with everything else, so I hope to be able to pick up a large amount of both when the time comes.  It's a risky play though, because there is a good chance they simply won't be available for purchase at that point.

It is what it is; we've all had 4 years and counting to get ready.

Fri, 02/24/2012 - 13:05 | 2193094 Ghordius
Ghordius's picture

excellent comment - and you should add how many are already strongly leveraged.

I had some discussions with some wealth managers and one client was flabbergasted to hear that this particular billionaire (not a client of them and not coming from them) was completely over-leveraged, he had mortgages on all houses, toys, planes and yachts.

to this the WMs muttered that "it's often the case that they look more than what they are" and "some of them live and die on the margin". perhaps some cosmic justice around the corner?

Fri, 02/24/2012 - 13:11 | 2193127 EmileLargo
EmileLargo's picture

I saw that Robert Peston documentary as well. When you watch stuff like that you realise how totally screwed the West is. The vast majority of people wouldn't last a month without a paycheque.

Fri, 02/24/2012 - 14:54 | 2193573 blunderdog
blunderdog's picture

  because they either have no savings at all or the few savings they do have are held for short term objectives (a new car, vacations) rather than long-term "saving for a rainy day".

In the USA, we've been mercilessly propagandized for decades NOT TO SAVE.  The financial industry has always pushed the concept of investment over saving, and the "put your money to work for you" message has long emphasized the value of leverage.

If you "educate" people with bullshit for long enough, it can't come as any surprise that they're badly misinformed.  The financial bubble in the USA has been all my generation has ever known, and I'm sidling up to middle age at this point.

30 YEARS of lowering interest rates.  OF COURSE there's no saving.

Fri, 02/24/2012 - 15:01 | 2193599 SAT 800
SAT 800's picture

Bullionvault.com; based in London. Look it up on Google and read the business prospectus. You can start your savings right now.

Fri, 02/24/2012 - 16:03 | 2193886 Seer
Seer's picture

"Another reason why most people don't buy gold is because they either have no savings at all or the few savings they do have are held for short term objectives (a new car, vacations) rather than long-term "saving for a rainy day"."

Though I doubt that many could fall in this category, I save little* as well BUT... rather than sticking shit in a couch cushion I look to obtain assets that will leverage my situation (pushing toward an income-generating farm).  Burn FRNs before inflation shoots up.  * Thus stated in regards to NEW savings (I still have my "old" savings).

Fri, 02/24/2012 - 09:42 | 2192324 disabledvet
disabledvet's picture

How about this simple view (and leaving aside the obvious fact that the Tylers' Durden want you to buy their gold at a higher price than they did): "there are other things that have much more appreciation potential and since cash money is limited for you and me we choose something else." for example "I choose to buy platinum instead."

Fri, 02/24/2012 - 11:19 | 2192638 Seer
Seer's picture

"In a strange way, it could be because a lot of people know or have at least heard of the term 'bubble' and many of them believe that Gold is in its own bubble"

No, no STRANGE way.  This is PURE propaganda.  Soon, I'm afraid, those advocating for PMs will be labeled "terrorists."  This is how you keep sheeple in line so that you can continue to use them.

Fri, 02/24/2012 - 14:15 | 2193395 Iwanttoknow
Iwanttoknow's picture

I thought they are.

Fri, 02/24/2012 - 09:40 | 2192321 LawsofPhysics
LawsofPhysics's picture

The "general public" are idiots who can't turn off "dancing with the stars", why are you surprised?

Fri, 02/24/2012 - 11:21 | 2192651 Seer
Seer's picture

It's the System, it's the Programming.  I don't believe that people are fundamentally stupid, just that they've been programmed to be that way.  Keeps the oligarchs' rein of power going...

Fri, 02/24/2012 - 14:36 | 2193502 ManOfBliss
ManOfBliss's picture

Possibly.

But I do actually think the majority of the species is genuinely stupid. I refuse to put them into a passive "victim" position by saying "Oh, they've been programmed" to be that way.

It's contradictory. You say they are not stupid, but yet they are programmed? Wouldn't only a stupid person be "programmed" by an outside influence? Hence the error.

They are stupid, and thus BELIEVE the lies. It's their own fault, due to their mental decicienies.

Fri, 02/24/2012 - 14:53 | 2193567 SAT 800
SAT 800's picture

Your supposition that only the stupid are programmed; dramatically and significantly effected by propaganda, is completely false. It has been disproven over and over again. When HItler pronounced as his operating principle, "Tell a big lie and tell it often"; He did not propose to only influence the stupid; which would have been ineffectual.

Fri, 02/24/2012 - 16:15 | 2193928 Seer
Seer's picture

Well, careful about getting all high and mighty, as I could probably paint you into a corned of "the stupid" as well.

"They are stupid, and thus BELIEVE the lies. It's their own fault, due to their mental decicienies."

Ugh!  Thus stated by someone who cannot use spell-check?

Sometimes it's a matter of blending in in order to not be a target of the wolves.  Unless YOU are in someone's shoes you have NO idea what options and knowledge/wisdom/awareness that he/she has available.

And, really... YOU were born knowing all this stuff?  I'd state that it's circumstance that has more to do with it: I was just another of the rats running the wheel until I took (was afforded) the time to really look around and assess things.  When I became aware of the likes of Edward Bernays (and, to counter- Dr. Albert Bartlett and John Jevons) I was able to escape from the "stupid pool."  However, now out of this pool I am a target by HS and other elements looking to keep us contained in said pool: if I manage to live longer out of the pool then maybe I can say I was less "stupid"...

Fri, 02/24/2012 - 14:58 | 2193588 SAT 800
SAT 800's picture

Mao said that the revolutionary swims in the sea of the people, as a fish swims in the water. All human beings exist in cultures; those items that make up the foundation beliefs of the culture in which the human exists, are virtually never challenged; and then only by a tiny minority of educated intellectuals. At least fifty percent of everything you, personally, believe is simply false. The "programming" which you don't see and don't detect, consists in the un-challenged assertion made from the day you could first understand your native language to date. You don't detect it as programming because its the assumed verity of the time; you've never heard anything else.

Fri, 02/24/2012 - 16:51 | 2194077 Seer
Seer's picture

Well said.  I should have read your post before I emptied my chambers... (pretty much saying the same)

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