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Gold Over $1808 - May Be Poised for `Parabolic' Rise; People in West Not Prepared for Possible Currency Crisis

Tyler Durden's picture




 

From GoldCore

Gold Over $1808 - May Be Poised for `Parabolic' Rise; People in West Not Prepared for Possible Currency Crisis

All major currencies have fallen sharply against gold again today but especially the ‘commodity’ fiat currencies of the Australian, New Zealand and Canadian dollar. Swiss francs are also under pressure again today.

Gold is trading at 1,808 USD , 1,259.10 EUR , 1,096.40 GBP, 1,436.90 CHF and 138,510 JPY per ounce. 

The London AM fix was a second consecutive record nominal high in USD. Gold’s London AM fix this morning was USD 1,794.50, EUR 1,246.44, GBP 1,087.12 per ounce (from yesterday’s USD 1,792.00, EUR 1,240.39, GBP 1,089.96 per ounce).

Cross Currency Table

In my interview this morning on Bloomberg, the interviewer picked up on our recent suggestion that gold could go parabolic soon. Indeed, we said that it is likely not a question of if - but rather when.

A short interview is not conducive to informing people and therefore we wish to elaborate about a possible parabolic move.

Bull markets almost always end in a mania phase where there is a near universal belief that an asset class or security is going to rise and there is no risk involved.

This has been seen throughout history and was seen with the Nikkei, the Nasdaq and more recently with property markets in Ireland, the UK and the U.S.

It was also seen with gold in the 1970’s when gold increased 128% in 1979 alone. On January 2nd 1979 gold’s London AM Fix was $227/oz. By the 31st of December, gold’s London AM fix was $524/oz.

21 days later gold had increased another 60.9% to $843/oz.

This is parabolic.

Today’s 27% rise year to date in dollar terms is very tame in comparison.

The blind belief that an asset class, security or currency is a one way path to financial nirvana always leads to a bubble and the bursting of that bubble.

Today there is no such blind belief. Gold remains the preserve of the smart money - those who know their financial and economic history.

It is also the preserve of those who understand the importance of real diversification due to the risks posed by currency debasement and inflation.

Bloomberg: Gold Prices May Be Poised for `Parabolic' Rise

The largest buyers of gold today are institutions seeking to diversify themselves and protect themselves from currency debasement and the risks of depreciation of major currencies such as the dollar, euro and pound.

Sentiment remains muted and every single little scrap of potentially bearish news is greeted as a sign of the top or a bubble – whether it be cryptic statements from George Soros or the odd gold ATM globally.

One article from Bloomberg entitled ‘Gold Demand Falls 17%: World Gold Council’ was sent to me by a large number of clients and associates this morning alone.

Some are genuinely concerned that gold might top out at these levels. Others have been bearish and wrong in recent months and there is a large degree of confirmation bias going on here – and has been for some time.

Others simply do not own the asset class and fear they are missing the boat. Some are envious of others managing to protect themselves as unfortunately they may not be in a financial position to do so.

Other excellent Bloomberg articles this morning that are more bullish such as ‘Venezuela Gold Move Shows Foreign-Storage Discomfort, UBS Says’, ‘Gold Allocation of 10% Will Work in Any Scenario, Goldcore Says’ or ‘China Gold Investment Demand Jumps 44% on Rising Inflation’ were not forwarded.

More nuanced articles in our news section today were not forwarded.

This is a small but relevant sample of the sentiment towards gold. Many are nervous about gold at these record nominal highs and some are downright bearish (and some have been since gold reached the nominal high of $850/oz).

There is not a universal acceptance yet that the majority of people in the western world should own some gold bullion - physical coins and bars owned personally or stored in the safest way possible.

Quite the opposite – Joe and Josephine public have been selling the “family gold’ in the global phenomenon that is ‘cash for gold’.

This is in marked contrast to the Middle Eastern and Asian world where owning gold as a store of wealth is the norm due to their experience of currency debasement.

The emirate of Dubai’s launching of a 5 ounce bullion coin is another indication that demand from the Middle East is set to remain robust and may surprise to the upside.

The conditions today are more bullish than they were in the 1970’s for a whole variety of reasons which we have looked at in recent weeks.

One fundamental reason is the emergence of China and Chinese demand for gold. There was no Chinese demand for gold in the 1970’s.

The unrealized, important fact that the people of China were banned from owning gold bullion from 1950 (by Chairman Mao) to 2003, means that the per capita consumption of over 1.3 billion people is rising from a tiny base.

Many market participants and non gold and silver experts tend to focus on the daily fluctuations and “noise” of the market and not see the “big picture” major change in the fundamental supply and demand situation in the gold and silver bullion markets – particularly due to investment and central bank demand from China and the rest of an increasingly wealthy Asia.
 
Another factor today that was not present in the 1970’s is a global debt crisis that is threatening the global financial, economic and monetary system.

The vast majority of people in much of the western world are not prepared for the real possibility of continuing global currency debasement.

Owning gold is like owning car or health insurance. You do not stop buying insurance because the premium goes up. You shop around and get the best insurance at the best price.

The price may fall or rise (although given current conditions it is unlikely to fall in the medium and long term) but one needs to own it in order to protect oneself and one’s families financial future.

With all the focus on the nominal price of gold, the value of gold is still not understood by the majority in the western world today.

It will be soon.

For the latest news and commentary on gold and financial markets please follow us on Twitter.

NEWS

(Bloomberg) -- Gold Rises Above $1,800 as Slowdown Concern Boosts Demand
http://www.businessweek.com/news/2011-08-18/gold-rises-above-1-800-as-slowdown-concern-boosts-demand.html

(Wall Street Journal) -- WGC: India, China Standout Markets For Gold Demand
http://online.wsj.com/article/BT-CO-20110818-700436.html

(Bloomberg) -- Venezuela also wants gold back from Morgan, Barclays, Standard Chartered, and Scotia
http://www.bloomberg.com/news/2011-08-17/chavez-preparing-government-takeover-of-venezuela-s-gold-mining-industry.html

(Reuters) -- Gold edges down on firm dollar; growth worry supports
http://www.reuters.com/article/2011/08/18/markets-precious-idUSL3E7JI03D20110818

(Reuters) -- S.Africa mines minister worried about mine "carnage"
http://www.reuters.com/article/2011/08/18/safrica-mining-idUSL5E7JI0FR20110818

(Emirates) -- Dubai Unveils 5 Ounce Gold Bullion Coin
http://www.emirates247.com/markets/gold/dubai-unveils-gold-bullion-coin-2011-08-17-1.413820

COMMENTARY

(Financial Times) -- Bullion Bulls Talk of $5,000 Gold
http://www.ft.com/intl/cms/s/0/843c6ae6-c96f-11e0-9eb8-00144feabdc0.html#axzz1VMvCxReZ

(Gold Anti-Trust Action Committee) --  Gold has become 'substitute currency,' Jean-Marie Eveillard tells King World News
http://gata.org/node/10284

(Greshams-Law) -- 40 Years of Fiat Currency – Is Gold as ‘Cheap’ as it was in 1971?
http://greshams-law.com/2011/08/17/40-years-of-fiat-currency-is-gold-as-cheap-as-it-was-in-1971/

(CNBC) -- Gold Council: Demand Still Strong—But Changing
http://www.cnbc.com/id/44181373

(Zero Hedge) -- As Chavez Pulls Venezuela's Gold From JP Morgan, Is The Great Scramble For Physical Starting?
http://www.zerohedge.com/news/chavez-pulls-venezuelas-gold-jp-morgan-great-scramble-physical-starting 

(Bloomberg) -- Bloomberg Video - GoldCore: Gold Prices May Be Poised for `Parabolic' Rise
http://www.bloomberg.com/video/74110956/

 

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Thu, 08/18/2011 - 08:12 | 1572005 Snidley Whipsnae
Snidley Whipsnae's picture

We don't want no freakin parabolic rise!

Slow but steady is the way to permanent high level...

Thu, 08/18/2011 - 08:17 | 1572025 Pladizow
Pladizow's picture

From '70' to '80' when gold did 2,400%, some of the junior miners did tens of thousands of % - penies to hundreds of $'s/sahre.

This is where fortunes will be made again.

Thu, 08/18/2011 - 08:25 | 1572051 bigdumbnugly
bigdumbnugly's picture

we don't need no par -a - bola....

we don't need no price con - trol...

and i hope so pladdy.  but these miners ('specially silver) have been getting shorted to hell.  waitin' for the dogs to be let out.

Thu, 08/18/2011 - 09:25 | 1572348 hunglow
hunglow's picture

I thought Pladdy Boy did let the puppies out.

We buy Au/Ag.   Idiots welcome.

Thu, 08/18/2011 - 08:30 | 1572069 eri
eri's picture

No, fortunes will not be made again on miners.

Nobody trusts paper anymore.

It's all about physical now.

 

Thu, 08/18/2011 - 08:44 | 1572113 Shocker
Shocker's picture

Exactly, you need to have something else to protect your wealth in todays crazy times

 

 

-

Thu, 08/18/2011 - 08:43 | 1572116 youngman
youngman's picture

The Venezuelan miners just got the shaft.....and I see this happening all over the world...countries will take controll of the miners...at least in the third world countries

Thu, 08/18/2011 - 08:50 | 1572142 Pladizow
Pladizow's picture

Meaning those that are left in politically stable countries will be worth that much more.

Thu, 08/18/2011 - 09:02 | 1572200 youngman
youngman's picture

True...but we do not allow mining here...to enviro bad bad bad...

Thu, 08/18/2011 - 09:26 | 1572359 trav7777
trav7777's picture

we already pretty much mined out this country.

Thu, 08/18/2011 - 09:28 | 1572373 Flakmeister
Flakmeister's picture

Don't confuse them with details Trav... much easier to blame the tree huggers...

Thu, 08/18/2011 - 10:07 | 1572652 Frog-And-Toad
Frog-And-Toad's picture

Spoken at a whisper "Who is John Galt?"

Thu, 08/18/2011 - 10:09 | 1572674 Flakmeister
Flakmeister's picture

A figment of the collective imaginations of the Randians...

Thu, 08/18/2011 - 13:41 | 1573776 faustian bargain
faustian bargain's picture

Oh, is that why businesses are leaving California? I thought they were just all sick of the sunny beaches and long growing seasons.

Thu, 08/18/2011 - 13:56 | 1573830 Flakmeister
Flakmeister's picture

Yeh, they headed to Texas where the budget situation is comparable....

Thu, 08/18/2011 - 08:33 | 1572082 Thomas
Thomas's picture

One can't help but wonder what the strong buying season will bring. I, BTW, totally concur with the notion that gold is by no means over owned. I, like many of you, am now the resident go-to guy on all things financial in my little peasant hamlet having been the town crier for over a dozen years (despite the bouts of scorn). The questions I get are, at some level, emblematic of what the populace is waking up to. People know about gold but I see no evidence whatsoever that they own any. What I can see, however, is growing anger. Get long guillotines. 

Thu, 08/18/2011 - 09:03 | 1572206 Snidley Whipsnae
Snidley Whipsnae's picture

I see the same thing happening...

But I do see a bubble in the 'awareness of PMs'... Which I take to mean that some are becoming aware of PMs but either cannot or will not make purchases. Hey, maybe they are waiting for confirmation? :)

I have one friend who recently bought some gold for the first time... and in spite of what I suggested he bought numismatic gold coins that are way over priced, imo.

This is the same guy that I advised to purchase gold at ~$350...

Thu, 08/18/2011 - 09:30 | 1572391 trav7777
trav7777's picture

people know how much gold is worth because they are dumping all that jewelry and getting plasma TVs they couldn't otherwise afford or a nice downpayment on a shiny new car.  Or maybe it's the "best christmas ever" for the family as they parted with more of their wealth than ever in exchange for pricey consumer merchandise.

Gold has been steadily climbing, having some mini crashes which are good because they firm the conviction of the wallflowers that they were smart to dump the jewelry and smart not to buy into this bubble.  If there is a stampede off the sidelines, gold will double or triple from here in short order.  There simply aren't enough paper instruments to handle the volume of dollar slosh

Thu, 08/18/2011 - 08:37 | 1572095 Oh regional Indian
Oh regional Indian's picture

Agree Pladizow. In the great mining boom in California, Levi's and Shovel sellers made most of the money. And such is how it's always been. It's the tool sellers that make the fortunes. Look no further than the world of software.

ORI

http://aadivaahan.wordpress.com/2011/08/16/pre-cursor-2-and-currents/

Thu, 08/18/2011 - 08:22 | 1572043 LongBalls
LongBalls's picture

The enviornment is about to take gold out of the reach of most people in the west. Next up...... silver. When gold goes over $2,000 oz. the cat will be out of the bag. People will be thrusting too and fro. Silver is becoming the best value at this point. The sheeple will awake. and when they do hold onto your shorts boys!!!

Thu, 08/18/2011 - 08:29 | 1572067 baby_BLYTHE
baby_BLYTHE's picture

Backing up the truck on some silver bars myself

Thu, 08/18/2011 - 08:27 | 1572061 CH1
CH1's picture

"Parabolic" and "falling demand" are two sides of the same coin. Establishment types need to define this as something unsustainable - hence their choice of such words.

If Joe Average ever realizes that gold and silver are the only money that endures, they are out of business.

Thu, 08/18/2011 - 08:38 | 1572101 Bicycle Repairman
Bicycle Repairman's picture

Joe Average gets paid in FRNs and pays his taxes with FRNs.  He will have to take a ride with FRNs wherever they go.  This isn't about Joe Average except when Joe gets something to barter.

Thu, 08/18/2011 - 08:33 | 1572078 Bicycle Repairman
Bicycle Repairman's picture

Yes.  A parabolic rise would garner all kinds of unwanted attention from the usual suspects.  A steady 10% per year for 20 years should do it.  Surely the FED can manage that?

Thu, 08/18/2011 - 10:16 | 1572742 passwordis
passwordis's picture

A 10% return would'nt even cover your inflation loses.  Real inflation over 8% according to the people who make it thier business to  combate offical Government propganda. Poised to double over the next two years.

Thu, 08/18/2011 - 13:56 | 1573829 Bicycle Repairman
Bicycle Repairman's picture

Yes.  As aprt of FED "management" the inflation rate would have to be tamed.

Thu, 08/18/2011 - 08:45 | 1572125 Mike2756
Mike2756's picture

It already is, it's about 3X it's monthly 200ma, about the same as oil when it pulled back. Silver went 5X but, you have to figure in the g/s ratio. 

Thu, 08/18/2011 - 09:34 | 1572418 Hulk
Hulk's picture

"Slow but steady is the way to permanent high level..."  Not in the case of major, structural, worldwide crisis. For the life of me, I don't understand why people don't get this by now...

Thu, 08/18/2011 - 08:13 | 1572010 Cash_is_Trash
Cash_is_Trash's picture

Don't. Go. Exponential.

Have. Most. Of. Working. Life. Ahead. Bitchez.

Thu, 08/18/2011 - 10:21 | 1572787 DonutBoy
DonutBoy's picture

It's inevitable - it's the way markets work.  You'll see it double in a couple of months or similar.  If you are using any leverage you have to take your best guess and move some of your savings ouf of gold, and standby for the pullback.  If it's all physical you can not worry about it and enjoy your life.

Thu, 08/18/2011 - 08:15 | 1572016 BeerGoggles
BeerGoggles's picture

This is just another Buy the dip moment. All fib levels holding.

Thu, 08/18/2011 - 08:17 | 1572021 snowball777
snowball777's picture

Crack open another tallboy, Cramer.

Thu, 08/18/2011 - 08:15 | 1572017 KnightsofNee
KnightsofNee's picture

205, 206, 207, 208, 209, 210 ounces, mmbawahhahahahahahahah, 211, 212, what? Who's that. Go away. I'm busy. 213, 214, 215 ounces, mmbawahahahahahahaha! Shhh! Did you hear that?

Thu, 08/18/2011 - 09:08 | 1572249 Dr. Richard Head
Dr. Richard Head's picture

I close the blinds around my house whilst counting me ounces. Don't want any of those paper bugs to know about me stash.

Thu, 08/18/2011 - 08:16 | 1572018 Sofa King
Sofa King's picture

"With all the focus on the nominal price of gold, the value of gold is still not understood by the majority in the western world today.  It will be soon."

It's not understood because we here in the west have a hard time with religion.

 

Tue, 10/04/2011 - 09:25 | 1736702 DosZap
DosZap's picture

It's not understood because we here in the west have a hard time with religion.

It has noting to do with religion,( if you think it does explain) and all to do w/being te Reserve currency of the world for 60+ years,WE,in the west have never known REAL serious  currency debasement,change of currency, or had to concern ourseves with a new government, and Constitution,and Dictators ever.

That's why we are called SHEEPLE,if you never had to worry about wolves eating the flock, you do not fear them,out turn is coming,very soon.

 

 

Thu, 08/18/2011 - 08:16 | 1572020 Snidley Whipsnae
Snidley Whipsnae's picture

Bring on some margin hikes to calm gold down... and blow out the specs...

25% per yr is more than enough... beyond that lie dragons

Thu, 08/18/2011 - 08:24 | 1572044 DrunkHarryReid
DrunkHarryReid's picture

I'll bet some of those short the Dec 12 5000 Call are not sleeping as easy as they had hoped.

Here is to hoping JPM tries to offer Chavez SI since they don't have enough GC in storage.

Silver Bitchez!

Thu, 08/18/2011 - 08:28 | 1572065 Snidley Whipsnae
Snidley Whipsnae's picture

If everyone continues to accumulate PMs in a slow but steady fashion we will blow up the paper games, the fucking bankers, and the damed Fed...

Then we can get on with restoration of a real currency and financial system...

Thu, 08/18/2011 - 12:10 | 1573400 DosZap
DosZap's picture

Snidely Whipsnae, @8:28

I am really getting ILL on all this DRAMA, about GOLD GOING PARBOLIC, GOLD GOING APESHIT.....................

Look at Pla, and Silver, and Plat....................they have done at least as well, and a couple better.

Fear Mongeing bitcheszz,,,,,,,,,,,,,,,,,

This has been a ORDERLY run up IMHO, esp considering the state of our union, and the rest of  planet earth.

To be honest if the market had been FREE to run, it would /should already be at $5,000.

Thu, 08/18/2011 - 08:17 | 1572022 deezy
deezy's picture

unleash the beast

Thu, 08/18/2011 - 08:17 | 1572024 The Swedish Chef
The Swedish Chef's picture

You can´t eat barbarous relics. Only buy what you can eat: paper, debt and hopium.

Thu, 08/18/2011 - 08:18 | 1572028 Sathington Willougby
Sathington Willougby's picture

If you don't know why gold could go parabolic, have a smoke.  You just got fucked.

Thu, 08/18/2011 - 08:18 | 1572029 fiftybagger
fiftybagger's picture

Don't worry, they'll just crater stocks to stop it.  And when that stops working, oh snap.....

Silver For The People

http://www.youtube.com/watch?v=T6h9bl1N9Lc

Thu, 08/18/2011 - 08:26 | 1572052 LongBalls
LongBalls's picture

Stocks are cratering. And where are the people going? Gold. Gold is now the world reserve currency and safe haven asset.

Thu, 08/18/2011 - 08:19 | 1572031 antidisestablis...
antidisestablishmentarianismishness's picture

Gotta love it when the main reason to own an asset class is that it hasn't gone parabolic yet.

Thu, 08/18/2011 - 08:22 | 1572042 Quintus
Quintus's picture

I don't recall anyone ever suggesting that that's the main reason to own gold.  There are many reasons to own it, but that's not one that I've ever heard.

Thu, 08/18/2011 - 08:20 | 1572032 DosZap
DosZap's picture

They did not print it but y/oy , India's purchases are UP 161% to date. And, they are just entering their traditional Holiday season.

This time IT really is different, and anyone who says Gold is in a mania, and is due for a Blow Off...................is either an idiot, has none, or is a drone for the establishment.(that has a PILE,and act like they do not).

Soro's never really was serious when he said a year or so ago it was in a bubble...............he was simple posturing ,hoping his blathering would cause a drop, so he could buy more.

Thu, 08/18/2011 - 08:38 | 1572099 fiftybagger
fiftybagger's picture

If you go back and listen carefully, Soros did not say gold was in a bubble.  What he said was "gold is the last bubble" subtlely implying that it has barely begun yet.

Thu, 08/18/2011 - 08:51 | 1572102 Pladizow
Pladizow's picture

Soro's stated it would be the "Ultimate" bubble, ultimate being synonimos with "Last".

He didnt neccisarily say it is currently in a bubble but that some day it inevitably will be.

And he could well be correct - after the curriencies and soverign debt collapse.

Thu, 08/18/2011 - 08:20 | 1572034 disabledvet
disabledvet's picture

Absolutely incorrect. Gold buying done to protect against a default risk which obviously is coming from Europe. Clearly if this transpires it will be a self inflicted wound. The hell to pay would be large. Great buying opprtunities await in my view for mega cap corporations as they can "google-ize" the competition.

Thu, 08/18/2011 - 08:27 | 1572060 cossack55
cossack55's picture

Oh yeah. Always buy paper. You can eat it with a little catsup.

Thu, 08/18/2011 - 08:33 | 1572081 LongBalls
LongBalls's picture

Gold buying is a due to the revelation by investors that governments of the world have taken on the housing crisis debt load from the banks, can't get their economies going, and are debaseing currencies to make their exports cheaper and at the same time to make it easier to pay off the debt load through inflation. If you think unemployment around the world is ready to decline because consumer demand is picking up, the financial mess is stabilized, and debt loads of counrtries around the world are under control then you are correct. Keep buying those inflated P/E's......

Thu, 08/18/2011 - 08:20 | 1572035 lieutenantjohnchard
lieutenantjohnchard's picture

we few, we happy few, we band of gold and silver holders.

Thu, 08/18/2011 - 10:20 | 1572778 Frog-And-Toad
Frog-And-Toad's picture

I'll follow 'ye into battle Lt.  

 

I am VERY heavy on Silver, as I just graduated and couldn't afford a few gold bars.  I am hoping that I will get some of the sheep when they realize they cannot afford gold so try and maintain their purchasing power.  

 

I think it's hilarious how, back in Feb. and Mar. I was told to read what Buffett had to say about Gold being a bet against society... As soon as I read this illogical "argument" I knew the shit was about to hit the fan at that point.  

Any advice on a young college grad who has limited fiacos?  I say silver will flirt with $75 by Jan. 1, 2012.  Thoughts? 

Thu, 08/18/2011 - 12:41 | 1573549 Matrix R Us
Matrix R Us's picture

That's a possibility but don't worry too much about the price. You know you've done the right thing the moment you get those silver coins in your hands :)

Thu, 08/18/2011 - 08:20 | 1572036 chinaguy
chinaguy's picture

Going to be some profit taking & still the waters for while

Thu, 08/18/2011 - 08:26 | 1572053 Snidley Whipsnae
Snidley Whipsnae's picture

Thats not a bad thing...

I'm in this game since 68 and don't need to see a rerun of a spike/crash... been there

Thu, 08/18/2011 - 08:25 | 1572049 alexwest
alexwest's picture

person who used 'genuinely; word is compelete blockhead.

###Some are genuinely concerned that gold might top out at these levels.

 

what fuck is  'genuinely? DO THEY #UCKING 'genuinely concern that US prints 15% of US GDP ?

or Brits prints 10 % of GDP, or japanese who pays 50% of entire budget into debt servicing? or half of Europe countries

are basically bankrupt..

 

idiots ,who  genuinely concerned of gold topping, deserves to lost all money..

 

alx

 

Thu, 08/18/2011 - 08:45 | 1572124 fiftybagger
fiftybagger's picture

+1818

Thu, 08/18/2011 - 15:49 | 1574293 MsCreant
MsCreant's picture

+1825.90

Thu, 08/18/2011 - 20:58 | 1575374 StychoKiller
StychoKiller's picture

+$1835.02 (as I type this)

Thu, 08/18/2011 - 08:34 | 1572055 PulauHantu29
PulauHantu29's picture

Most super wealthy people I know are just now beginning to buy gold so I have to agree gold will have a long way up to go. I hope it rises in a tame fashion rather then hyperbolic. I don't like sudden instability....slow steady progress as currencies deteriorate is better. Unfortunately, i am not among the super-people but I have added my share of GLD, GDX and SLV for wealth preservation. I hate to see my hard earned money go to waste.

 

GL!

 

 

Thu, 08/18/2011 - 08:45 | 1572119 Pladizow
Pladizow's picture

By buying the GLD and SLV you are screwing yourself and every other purchaser of the PM's that want to see the price increase - investigate your choices.

Thu, 08/18/2011 - 08:52 | 1572146 Badabing
Badabing's picture

"I have added my share of GLD, GDX and SLV for wealth preservation. I hate to see my hard earned money go to waste."

I don't know what to make of that!

Thu, 08/18/2011 - 08:31 | 1572057 WorkOutWellForAll
WorkOutWellForAll's picture

If you got an Internet connection, worrying about investing in gold is reactionary bourgeois.

Yes, I understand it may make you some more money than keeping it in dollars. I've read the 10,000 articles.

Why not worry about how to recreate Bretton Woods -- actually bring it about -- rather than drool over dollar ticks?

I understand now.. you are all older and richer than me. That's why I just can't seem to care about investing in precious metals. Hence the defensive conservatism.. got it!

Thu, 08/18/2011 - 08:50 | 1572141 fiftybagger
fiftybagger's picture

Got it?  You don't get anything.  How do you think these criminals will be stopped except by those of us who are stacking?  Stop contemplating Bhudda's navel and start using your brain!

Physical silver is the stake in the hearts of the financial vampires

Physical silver is the bullet that slays the wall street werewolves

 

Silver For The People

http://www.youtube.com/user/BrotherJohnF?feature=mhee

Thu, 08/18/2011 - 08:57 | 1572166 Badabing
Badabing's picture

"Physical silver is the bullet that slays the wall street werewolves"

and the werewolves of London

Thu, 08/18/2011 - 09:13 | 1572276 WorkOutWellForAll
WorkOutWellForAll's picture

You're right.. I didn't get it.

Nasal technoid speculators are better off cleaning toilets.

If by "[use] my brain" you imply worry about making money -- sorry. I was born rich, and I just can't be bothered.

How does your physical silver solution assist the Somlians, may I inquire?

Thu, 08/18/2011 - 09:39 | 1572452 Pay Day Today
Pay Day Today's picture

You wanna help Somalians get a clue. You need money to help. Many people here talk about making money in PMs. If you already got money, and if you want to be able to do good kamma then you better find a responsible way of preserving that money. Else you just gonna be another FRN rich guy burning the stuff to keep warm at night.

Buy physical PMs.

Thu, 08/18/2011 - 21:00 | 1575385 StychoKiller
StychoKiller's picture

Alleviate some suffering:  http://www.worldvision.org

 

Thu, 08/18/2011 - 08:28 | 1572063 PaperBear
PaperBear's picture

Would President Nixon have called Hugo Chavez an evil international speculator ?

Thu, 08/18/2011 - 08:28 | 1572066 johnnymustardseed
johnnymustardseed's picture

We wants it, we needs it. Must have the precious. They stole it from us. Sneaky little hobbitses. Wicked, tricksy, false! 
Yes, precious!They will cheat you, hurt you, LIE.

Thu, 08/18/2011 - 08:29 | 1572068 alexwest
alexwest's picture

gold doesnt give a fuck whoever is buying or not? indians, chinese whatever

MAJOR WORLD GOVERMENTS PRINTS BASICALLY FOMR 5 TO 10% Of GDP..thats only reason to know to buy gold

 

so fuck indian wedding season

alx

 

Thu, 08/18/2011 - 08:31 | 1572072 Kokulakai
Kokulakai's picture

We're farther from shore than it looks.

Only the foolhardy will abandon the lifeboat now.

Thu, 08/18/2011 - 08:31 | 1572074 Northeaster
Northeaster's picture

JS claims it will be whacked a little, then game on after. He's been pretty spot on for some time, missing by only a matter of months on his calls over the past few years.

Thu, 08/18/2011 - 08:32 | 1572075 gookempucky
gookempucky's picture

The word Parabolic along with bubble, overbought, correction coming soon etc etc ......what it means, ZERO, the new mantra for all the CB's across the globe should be GOLD PROBLEMATIC for AU will settle the score as we move into the 70 th round. Settle in for the Sullivan vs Kilrain of modern times.... Unfortunately for the fiat world they have the worst cut man in their corner as fiat continues to be bloodied up.

Totaly agree Sofa 

Thu, 08/18/2011 - 08:36 | 1572086 Monedas
Monedas's picture

Tyler, walk with me ? The "Bubble" is the universe of everything else ! Gold is what benefits when the "Bubble of Everything Else" implodes ! Monedas 2011 Notes in reverse from his perverse universe of the inverse !

Thu, 08/18/2011 - 08:36 | 1572088 Badabing
Badabing's picture

Futures

S&P   -24

Nasdaq  -49

Dow  -205

Gold $1816.45 new ATH

noyce!

Thu, 08/18/2011 - 08:37 | 1572096 rsnoble
rsnoble's picture

So basically everything that's gone parabolic in the past crashes back down but gold is different.  We'll see about that. 

Thu, 08/18/2011 - 08:44 | 1572118 spinone
spinone's picture

When deflation really kicks in gold will be liquidated for dollars to pay dollar denominated debts.

Thu, 08/18/2011 - 08:49 | 1572138 Pladizow
Pladizow's picture

I would think the opposite would be true - that in a hyperinflationary environment people with gold would cash in to pay of debts for pennies on the dollar?

Thu, 08/18/2011 - 09:24 | 1572333 jimmyjames
jimmyjames's picture

When deflation really kicks in gold will be liquidated for dollars to pay dollar denominated debts.

 

********************

Who holds gold?

Do you actually believe the "public" has ever participated in the gold market?

So maybe you should explain how the masses will take the price down-when they have no gold to sell--

Thu, 08/18/2011 - 08:45 | 1572122 Bicycle Repairman
Bicycle Repairman's picture

Pull up a seat.  But if all you do is watch, you won't be going to the after-party.

Thu, 08/18/2011 - 10:55 | 1572987 passwordis
passwordis's picture

 Well, the argument is, this is different because.... Gold/Silver have been held under water for the past few decades.  We have the mining data. We know what's on the earth and what's in the earth. We know the US Mint is selling record amounts of both Gold and Silver. We know the Gold Silver average and ratio over the last few thousand years.  So what you think is a parabolic rise to unsustainable and artificial levels is simply the natural price playing catch up.

   
At some point in the future we should aspect Gold and Silver to be priced according to supply and demand.  It may overshoot but it won't be like a similar traditional investment bubble that pops and goes to near zero or zero. When it crashes it will crash to it's natural supply/demand price so the only loser will be John Doe who listened to CNBC and took his life savings to buy three ounces of Gold for $35000.

 

Thu, 08/18/2011 - 12:44 | 1573555 Rusty_Shackleford
Rusty_Shackleford's picture

Word.

Thu, 08/18/2011 - 08:39 | 1572104 Marcuz Aurelius
Marcuz Aurelius's picture

SocGen is getting hit hard again today ! -7% currently.

Thu, 08/18/2011 - 08:43 | 1572112 THE DORK OF CORK
THE DORK OF CORK's picture

I love the half finished Anglo office in the distance with cheap air conditioning................

Thu, 08/18/2011 - 08:44 | 1572117 PaperBear
PaperBear's picture

The Goldcore guy said "government certificates of gold". Is he kidding ?

Thu, 08/18/2011 - 09:03 | 1572212 THE DORK OF CORK
THE DORK OF CORK's picture

They sell Perth mint certs - its not a bad investment although I prefer to hold mine in Brinks.

Thu, 08/18/2011 - 09:39 | 1572428 Badabing
Badabing's picture

The Bloomberg vid is cut short at the end.

What happened after the interview O’Bryne

Hops down off a chair puts on a green top hat grabs his pot of gold and mumbles I will never let them have my physical let them eat paper


The piece of shit leprechaun

Thu, 08/18/2011 - 08:47 | 1572131 apberusdisvet
apberusdisvet's picture

Gold to $2000 by Christmas?  Thanksgiving? Labor Day? next week? this weekend?

Thu, 08/18/2011 - 08:49 | 1572136 sudzee
sudzee's picture

Blithe is in the house today. Video losses connection just as upside prediction is about to be made.

Thu, 08/18/2011 - 08:49 | 1572139 Long-John-Silver
Long-John-Silver's picture

The entire world has become the Weimar Republic.*

 

* Link opens in new window.

Thu, 08/18/2011 - 09:00 | 1572186 Sathington Willougby
Sathington Willougby's picture

 

Wow.

http://en.wikipedia.org/wiki/Double_exponential_function

 

Pigs get fat, hogs get slaughtered.

Thu, 08/18/2011 - 08:57 | 1572161 monopoly
monopoly's picture

The last thing I want to see is gold move up to infinity. Lets just keep it slow and steady with the occasional dump. I am in this for the long term. Gold will be part of a currency moving forward. Lets keep it simple and real. No parabola moves. No blow off tops.

Thu, 08/18/2011 - 08:57 | 1572165 FunkyOldGeezer
FunkyOldGeezer's picture

Not so long ago, everyone and his dog was calling an unsustainable bubble in Silver. Compare Silver's slope at that time to Gold's now. Gold has risen far more steeply lately and yet no-one is really calling the bubble with the same ferocity as they did with Silver.

It's a shame Silver didn't reach circa $50 when the news was worse. It would have just kept going.

O'Byrne is very Gold-buggish when he writes and yet suggests owning just 10% as insurance? Time he came clean.

Thu, 08/18/2011 - 09:00 | 1572183 monopoly
monopoly's picture

Silver will have its day. Patience is a virtue, especially when it relates to the miners. lol

Thu, 08/18/2011 - 09:06 | 1572231 Downtoolong
Downtoolong's picture

All red and negative on the Bloomberg commodity market summary right now except gold, silver and wool.

I guess the sheeple have at least gotten smart enough not to hand that last one over anymore.

 

Thu, 08/18/2011 - 09:06 | 1572234 bill1102inf
bill1102inf's picture

There is no SUCH THING as PERMANENT HIGH LEVEL.  Find me one parabolic chart that shows the value of something that has 'gone parabolic' and then remained there.  Never happens, instead, the price always returns to lower levels and often MUCH LOWER.  Fun while it lasts but if the SHTF, you had better have guns/water/food/shelter bc if your a lib, the crazies are coming for you and your gold and if your a conservative, you can shoot the invaders but no one is going to trade you for your gold regardless.

 

Look, lets say I have some cows.  A cow that say is worth $10,000 today.  Say GOLD goes to 10K an ounce.  OR 20K and ounce.  K? WIth me? Do you think I would sell you a cow for an OZ of gold regardless of its so called 'value'?  NOPE.  At 20K an ounce, ILL BET THERE WILL BE NO ONE WILLING TO BUY IT FROM ME.  You want my cow??? You get me the 20K in cash and then we can talk.  Lets say I take the 1oz coin for my cow. And gold goes to 9K or lower.  Id be a shmuck, but thats what all gold hoarders expect to occur.  What might actually occur is that I take your coins or money and you get no cow.  There is no such thing as lock limit down at the local coin shop/gold refiner.  

Thu, 08/18/2011 - 10:09 | 1572677 HedgetBedgadget
HedgetBedgadget's picture

+2011

Thu, 08/18/2011 - 09:10 | 1572256 jjsilver
jjsilver's picture

just because gold goes to 2500, 5000, 10000 etc does not mean it is overvalued. you have to look at it in relation to the dollar which is worthless. If you sell where will you put your proceeds, in more worthless dollars?

Thu, 08/18/2011 - 09:13 | 1572279 MillerlovesSilver
MillerlovesSilver's picture

Very interesting comments on the Goldprice-behavior site today ... http://www.silver-info.com/goldprice-behavior.htm

For example:

The front page of the Huffington Post

There are more and more articles on gold being published in the mass media, but it's still very moderate. People are slowly starting to wake up...very very slowly. And the term 'waking up' just means that they somehow get to start thinking about problems...however, they are still miles/years away from making their first real precious metals purchase.

...Just check it out.

Now, new ATH @ $1821  ;)

Thu, 08/18/2011 - 09:33 | 1572411 Pegasus Muse
Pegasus Muse's picture

In my local paper today.  Bottom of the front page (with a color picture, no less, of bullion bars).

"The new American gold rush:  A big bounce, ounce by ounce, as gold take off"

It's a New York (AP) article.  Looks like TPTB that control MSM are pushing gold today for some reason.  The article did not just magically appear because some local yokal editor thought it was a good idea.

 

Thu, 08/18/2011 - 11:13 | 1573090 gdogus erectus
gdogus erectus's picture

Yeah - and on CNBC this morning they are singing the praises of gold.  WTH?  This can only mean they are about to whack it again.  Probably with a margin hike in the next day or two.

Thu, 08/18/2011 - 09:20 | 1572313 aerojet
aerojet's picture

You guys deride those tv stations such as Bloomberg and CNBC until they put on some goldbug guy who has a complete conflict of interest with his advice (he sells gold, *of course* he's going to tell you what you want to hear about it!), and you use this as some kind of evidence to win an argument?  Come on.  Gold is not outside of the financial world, neither is silver.  You're going to get your asses handed to you, and it won't be on a gold, or silver, platter.

Thu, 08/18/2011 - 09:25 | 1572352 Monedas
Monedas's picture

 When gold goes parabolic, it won't be used to buy tomatoes from a street vendor ! I will be a portable, tradable asset for the bigger things in life ! Monedas 2011 Bigger than life, kick ass comedian ! Funny 62.7% of the time......bank on it !

Thu, 08/18/2011 - 09:27 | 1572355 Pegasus Muse
Pegasus Muse's picture

"You want my cow??? You get me the 20K in cash and then we can talk."

I'll sell you my cow for an ounce of gold.  Keep your cash .... it's soon gonna be trash. 

Thu, 08/18/2011 - 09:41 | 1572462 Stuck on Zero
Stuck on Zero's picture

Two things are keeping gold from going parabolic: any one government or all of them getting together could dump gold on the market in a minute and take the price down 80%, and most potential buyers are looking at the price and saying: "It's too late now.  I missed the buying opportunity."  How do you address them apples?

Thu, 08/18/2011 - 11:56 | 1573326 tsx500
tsx500's picture

so u missed the boat too , huh ?

Thu, 08/18/2011 - 16:00 | 1574346 MsCreant
MsCreant's picture

Guess the screen name is about the amount of PM he has?

Thu, 08/18/2011 - 09:58 | 1572601 Irene
Irene's picture

Hey Bill.....

You want my cow??? You get me the 20K in cash and then we can talk.  

Typical nth gen American.  My "very distant" ancestors (parents, grandparents, etc.) went through more bank runs, bank resets, hyperinflations, currency changes, etc. than you could count.  Learn some history, man.  The LAST thing anybody wants to hold in difficult times - if they're smart - are hoards of cash.  Ever hear of waking up and everybody "starting over" with, say 20 NEW dollars in the bank, the old ones being kaput?  No?  Fat lot of good your 20K in cash would do you then. 

Yeah, I know, don't need no stinkin' history, right?

Thu, 08/18/2011 - 10:16 | 1572744 gwar5
gwar5's picture

A secular bull market for gold, per se, is only a small part of the reason to own gold. 

Yes, it is a way to preserve wealth against the stated government policies of fiat debasement, but more importantly, owning gold is protection against the coming certainty that the USD will no longer be the WRC in a few years.

People who have given some thought about gold to protect against government policies have still not taken the next step in the mental excercise and considered the implications of what things will like without the USD as the WRC. By the time everybody figures that one out, it'll be too late.

 

Thu, 08/18/2011 - 15:14 | 1574096 mkkby
mkkby's picture

I don't understand why people think gold is money, when it hasn't been for so long.  Possibly this is just the latest momentum play.  At the end of every bull market, a few assets hold on to the bitter end.  Back in 2000, it was internet stocks.  Now it's aapl, bidu and gold.  All the asset managers flock into a smaller and smaller set of assets that haven't broken trendline... YET.

Good luck to all you gold believers.  I hope it works out.  Personally I don't like the wide spreads, the storage/security issues or the cap gains taxes.  I think that saps too much of your wealth.  Better to trade currencies to preserve wealth.  It's hard to believe they would all go under.  And it's hard to believe a new reserve currency would use gold, when an electronic system could be chosen instead.  It's all guesswork, so let's not be arrogant.

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