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Gold: Knock, Knock, Knocking On Record's Door

Tyler Durden's picture




 

Update: gold is now at a fresh all time nominal high, with a price equivalent to that fateful year in which the world's biggest and perfectly legitimate criminal cartel was founded on Jekyll Island some years ago.

When it comes to gold, one can now officially skip the foreplay (because apparently there is such a thing s a 2G spot). Unlike two weeks ago when the latest Shanghai margin hike caused gold to temporarily lose its equilibrium and flop, however briefly, somewhere in the lower 1700s, as of tonight it has valiantly processed, and completely ignored, news from the Shanghai Gold Exchange that trading margins for the gold forward contract, Au(T+D), will be raised, temporarily starting Sept 9 to 13 percent from 12 percent, while the daily circuit breaker would be lifted to 10 percent from 9 percent, and has proceeded to rise to within nickels of the all time high, with spot trading over $1910 at last check. Since Europe is about to open shortly, and since the free fall in risk will resume now that virtually every rhetorical gimmick has been used and abused ad inf, it appears that absent the CME doing away with margin altogether, we will see $2G spot within hours.

 

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Tue, 09/06/2011 - 00:42 | 1637184 bullionbaron
bullionbaron's picture

With Gold stocks still languishing around prices seen when Gold was around $1400-1500 this is the sector to be for the largest gains from here in my honest opinion:

http://www.bullionbaron.com/2011/09/precious-metal-stocks-breakout-gdxhui.html

Look for companies who have good cash reserves, a Gold/Silver resource & conservative management who do right by their shareholders. Where you are not comfortable looking at specific companies, then an ETF which tracks a basket of companies might be suitable alternative such as the GDX.

Tue, 09/06/2011 - 00:46 | 1637195 mcguire
mcguire's picture

for those addicted to the juice, the 2x leveraged etf is NUGT.. 

Tue, 09/06/2011 - 05:35 | 1637549 Thomas
Thomas's picture

For those addicted to the juice, you might note that it did a $50 flash crash at 4:00 AM. Although it did recover, ddiction kills.

Tue, 09/06/2011 - 05:48 | 1637562 spiral_eyes
Tue, 09/06/2011 - 06:27 | 1637599 DefiantSurf
DefiantSurf's picture

That would be funny if it wasn't so sad

Tue, 09/06/2011 - 07:52 | 1637662 Thomas
Thomas's picture

There may be a top in gold but there does not have to be. If the dollar goes to zero, everything (including gold) goes to variants of infinity.

Tue, 09/06/2011 - 00:49 | 1637202 The Deleuzian
The Deleuzian's picture

Some of juniors are selling like it's 2002....

The accumulation mode is upon us.....

Never forget where the companies are...

Mexico-US-Canada are the only places I would park money

Tue, 09/06/2011 - 00:51 | 1637207 mcguire
mcguire's picture

right. chavez... 

 

Tue, 09/06/2011 - 01:51 | 1637337 Freddie
Freddie's picture

Park your money in Obama's USA/Detroit/Baltimore America? 

Tue, 09/06/2011 - 03:30 | 1637427 Howard_Beale
Howard_Beale's picture

Yes, but, where do you park your car? Becase paper miners are gona go down with the ship. If gold takes a major hit then these guys realy get smushed. If you have to play in paper, stick with those out of the junior minors (no earnings) for the play. The beta is far higher, there are no proven earnings or only minimal ones, so keep your powder dry.

If you insist on trading paper then the GDX is far less volatile. If you need alpha and want to play the run-up then the double gold ETF is where you should play and be nimble. Otherwise, for instance, write out of the money calls, and selling in the money puts at the level you want to own it. This way, you make money selling calls and selling puts, making your break even much lower than your buy price.

I personally only buy physical and store it by the squirrels. I would not bet on mining stocks ever. But I like my paper strategy enough that I may just suck in some premium enough to offset any selloff and I would get out at break even if there was a rout.

Tue, 09/06/2011 - 06:53 | 1637615 Snidley Whipsnae
Snidley Whipsnae's picture

Swissy just pegged to Euro... Swiss Gov announces that the Swissy will be defended at 1.20 Swissy to the Euro...

Hell is coming to breakfast...

http://maxkeiser.com/2011/09/06/swiss-national-bank-pegs-chf-to-eur-does-everyone-have-their-seatbelts-buckled/

Tue, 09/06/2011 - 07:35 | 1637641 Howard_Beale
Howard_Beale's picture

Munch munch munch...wtf? Interesting day ahead. They did what?????!!!! Madness, sheer madness,

 

Tue, 09/06/2011 - 07:51 | 1637659 youngman
youngman's picture

an amazing drop in the gold price from that announcement...why???  Now gold is the last safe haven....?????

Tue, 09/06/2011 - 01:44 | 1637328 Dasa Slooofoot
Dasa Slooofoot's picture

My SPAM is at 4k/oz. 

Tue, 09/06/2011 - 08:21 | 1637716 fockewulf190
fockewulf190's picture

"When it comes to gold, one can now officially skip the foreplay (because apparently there is such a thing s a 2G spot)."

 

Once my 5G spot is stimmed, I´ll be spazzin so hard I´lll be belted into a chair and babblin´Timmah Timmah Timmmmmah!!".

Tue, 09/06/2011 - 07:27 | 1637633 tmosley
tmosley's picture

Jesus, am I the only one noticing the complete and utter collapse of the Swiss Franc?  Down 8 FUCKING PERCENT.

Numerous forex traders will be jumping out of windows when they wake up and see this insanity.

Tue, 09/06/2011 - 07:30 | 1637635 Snidley Whipsnae
Snidley Whipsnae's picture

tmosley... Swiss have pegged the Swissy to Euro... ~ 1.20 to the Euro...

http://www.businessinsider.com/wow-swiss-national-bank-takes-intervention-to-a-new-level-franc-plunges-2011-9

Tue, 09/06/2011 - 07:37 | 1637644 tmosley
tmosley's picture

Damn I hate the smell of collapse in the morning.

Does anyone know exactly how they are implementing this peg?  Are they just flooding the market with francs, or have they implemented a Chinese style system.

I don't really understand how they could implement something like this overnight against the will of investors.  That is, unless FOREX investors are stupid, and took the price down for them after they announced the devaluation, in which case the Franc is stupid undervalued.

Need more information so we can guess what the outcomes of this move will be (other than generic failure).

Tue, 09/06/2011 - 07:55 | 1637661 dwdollar
dwdollar's picture

If you play hot potato with fiat currencies guessing on actions of central bankers and outcomes of political decisions, you're liable to be burnt... sooner or later.

Tue, 09/06/2011 - 08:54 | 1637868 Long-John-Silver
Long-John-Silver's picture

What happens to Gold and Silver stock when nations nationalize their mines? They instantly go to ZERO.

As Gold becomes the worlds reserve currency and Silver becomes the citizens money once more can you imagine a nation not nationalizing the mines operating under their sovereignty? This is the reason Gold stocks languish.

Tue, 09/06/2011 - 00:42 | 1637185 KingPin 999
KingPin 999's picture

yippie ki yay mother f-----ers

Tue, 09/06/2011 - 01:16 | 1637258 Hugh G Rection
Hugh G Rection's picture

Vhere are mein detonators?

C'mon Blythe, where were your monkees last friday?  Non farm payroll and no beatdown?  Losing control of this thing???

Tue, 09/06/2011 - 03:08 | 1637387 Howard_Beale
Howard_Beale's picture

In my best Blythe voice:

"Oh but whatever do you mean?"

"Let me see...My Monkees had a hit show in the 60's and I watched it in rerun. I loved Davey Jones! Who knew he was 5'5?"

"Oh, we're talking about commodites? I love silver and gold all over my body but I am basically a trained seal. Jamie gives me a good piece of wood when I do what he says. It's not that I think it is good to continuously lose money in the metals markets--but I have my marching orders. But seriously, it's not like I am Rebekah Brooks, guys! What a despicable whore! I mean, at least my boss is a sexual sociopath, still good looking, and the Debt Brother from Planet O loves him. Rebekah Brooks was with Murdoch! Oh the horror!"

'I have to tell you that sex with a sociopath like Jamie is incredible. Give that puppy a Viagra and he forgets his own name. It's kinda dreamy--check out the Banzai dog of Jamie, it's surrealistically seductive with those beautiful blue eyes and calming demeanor. I think Obama fell in love with him at first sight. And if you watched him on CSPAN being called "Mr. Demon" he was as good as Dexter at keeping his cool."

/Blythe Masters

Tue, 09/06/2011 - 05:34 | 1637548 Mentaliusanything
Mentaliusanything's picture

2G spot ....... Right on so many warped levels. I think I shall have to Tip my hat to the Writer - You sir have a wicked sence of humour.

Now back to regular programming (after I dry my eyes)

Good laugh my dear sir

 

Tue, 09/06/2011 - 00:42 | 1637186 Blorf
Blorf's picture

I like the temporary price margin hike with a specific reason cited.

It's almost as if the shanghai exchange is adjusting margins to actually protect investors instead of helping bail out favored traders from their losing positions.

F the CME.

Tue, 09/06/2011 - 01:16 | 1637262 DoChenRollingBearing
DoChenRollingBearing's picture

Agreed.  Gold would do just fine with no margin at all.  Bring it!

Unless you trade and are good, I would stick to just buying the rfeal physical gold.  Not the paper stuff.

Tue, 09/06/2011 - 01:57 | 1637344 Alpha Monkey
Alpha Monkey's picture

Unless you trade and are good, I would stick to just buying the rfeal physical gold.  Not the paper stuff.

Unless you can time when the paper market will implode from the mass realization of the fractional status of gold paper, I wouldn't touch paper gold.  Why spend money competing in a relatively rigged casino, worrying about what numbers are going where when you can just buy a stack and have peace of mind.

Tue, 09/06/2011 - 06:58 | 1637618 Snidley Whipsnae
Snidley Whipsnae's picture

"Unless you trade and are good, I would stick to just buying the rfeal physical gold. Not the paper stuff."

Excellent advice DCRB... and, who can know when a margin hike, new 'jobs' program or a Fed annoncement is coming? It's by guess and by golly... Anyone that 'times' an announcement and makes some benny bucks gets a swelled head and begins to think that they are a great market timer... This is a sure fire recipe for a wiped out trading account...

Physical is the best option...

Tue, 09/06/2011 - 00:43 | 1637187 Waffen
Waffen's picture

Someone remind Gold that he needs to drag that bitch we call Silver up with him.

Tue, 09/06/2011 - 00:50 | 1637205 X.inf.capt
X.inf.capt's picture

BUY,BUY,BUY

pre-65 dimes

p.s. nice rack,waffen

Tue, 09/06/2011 - 01:53 | 1637338 Alpha Monkey
Alpha Monkey's picture

According to the "Gold Trail", FOA, Another, and FOFOA, gold will be seen as the exclussive world wealth asset of choice.  Silver, while gaining value from falling fiat values, does not hold the same qualities as gold, nor does it hold the same history.  Golds price action will outperform everything else, including silver.

I traded my silver for a few ounces of gold not too long ago.  I don't regret my decision, even if i'm putting all my eggs in one basket, my gains have thus far outperformed silver.

I would argue, that when gold starts making it's real moves, we will find that silver will be sold off by others to buy gold.  People shy away from gold because it is expensive, but anyone can get denominations in fractions of grams... which are not that expensive, when holding for long term.

Tue, 09/06/2011 - 02:17 | 1637368 Reven
Reven's picture

I tend to agree with the FOFOA perspective on gold versus silver.  But I also think you'll want some silver if you want to do any basic bartering during hyperinflation.  Gold needs to be held till a new, stable currency is introduced.  I have a small stash of silver in case I want to buy more ammo or whatnot during the shit storm.  But there's no fucking way I'm trading gold for ammo/food during the chaos unless I absolutely have no choice.  That's going to be the ultimate loser trade of the millennium.  I hope people who own significant quantities of gold have at least 1-2 year's worth of supplies to ride out this storm.

Tue, 09/06/2011 - 03:28 | 1637433 DaBernank
DaBernank's picture

You bring up the important monetary role of Silver, use as monetary specie in barter. If you cannot trust a central bank today, why would you trust central bank paper in the future, especially during a transitional phase? Or do we believe that one day we will wake up and freegold will just "be in place" with Politicians & Banksters acting honestly vis-a-vis honest money.

Silver has great historical monetary status. Silver, being "useful", will not have identical "store of value" status as gold but it has been money in all of recorded history. We can look at the modern day UK £ , and trace back through the history of various empires, back to ancient Lydia (modern-day Turkey)  in the pre-classical world.

"The Lydian Trite is considered by many experts to be one of the first coins used as money. It was made of “Electrum”, a silver and gold mixture, by a mint established by King Ardys of Lydia at around 652-615 BC"

Athens, Egypt, and Rome all had silver currencies.

I was in Cadiz (Spain - "Europe's Oldest City") not long ago and at the archaeological museum, they refer to the primary early settlement being a Phoenician colony of Tyre founded at least by the 9th century BC, and perhaps as early as the 11th. The Rio Tinto silver mines appear to have been the driving force for Phoenician occupation of the region.There were bronze-age people there prior to the Phoenicians, known as the "Tartessians" who mined tin and held their wealth in Silver.

Long-term store of wealth = gold ; Money = gold and silver.

Tue, 09/06/2011 - 10:49 | 1638245 tekhneek
tekhneek's picture

Give it 5 years. You'll wish you held all silver when the gold/silver ratio hits 12:1.

Think about it logically: $2,000 for 1oz Gold American Eagle

At current prices (if you bought silver today and held it til the ratio drops more):
At 16:1 - $688/oz of gold ($1,312 difference)
At 12:1 - $516/oz of gold ($1,484 difference)

Hell, even at 30:1 - $1,290 ($710 difference)

When I see the biggest investment opportunity of all time, it's not gold my friend. It's silver. Look at the numbers. You will be able to buy more gold simply by storing your purchasing power in silver then transferring it later.

Tue, 09/06/2011 - 16:09 | 1639353 Hephasteus
Hephasteus's picture

Silver did what it was supposed to do. Broke golds arm. It won't go anywhere till golds broken arm is done snapping and crackling. Then it will launch and break it's legs. Then copper will crash down to you just dug a bunch of tons of it out of the ground for 1/4 the cost of the gas.

Gold silver and copper are the true trinity of the planet.

Gold is the cruel father.

Silver is the bitch mom.

And copper is the child named damien. The unholy spawn of wage arbitration, relative money mechanics and inflating fiat currency with everything deflating versus gold behind the curtain.

The consipiracy is too complete though. The government wont let business fail and business won't let goverment fail because they are both so co-dependant on each other if one of them goes down the other goes down. Because you can't have stupid fucking cities building 10 billion dollars worth of roads to prepare for a future without fucking cars while they pay TSA 80 grand a year to abuse the fuck out of you to keep you out of planes and burning gas so they can save it for their war engines. You're in the middle of a psychosis and following the rules is about as smart as eating right and exercising before your date with jeffery dahmer.

Tue, 09/06/2011 - 03:15 | 1637420 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Silver up over 100% over 12 months
Silver up as much as gold for the year
Silver up twice as much as gold since the start of the bull market
Silver which means "money" for more than half of the worlds population

I've been on your guys site and don't agree at all. He basically says: Banks hoard gold, therefore gold will be remonitised. He fails to realise that its the free market, certainly not banks that choose gold. Because of that banks are forced into hording it. And the free market is/has/will choose silver as well.

Both Turk and Sprott sell more silver than gold (on a cash basis), and so does every bullion dealer I've talked to. And i think we all know about the amount of silver avaliable for investment demand compared to past bull markets.

My money says silver will outperform gold for the next 6 months as well.

Tue, 09/06/2011 - 03:24 | 1637429 spdrdr
spdrdr's picture

Don't forget that Another and FOA were cheerleaders for the Euro experiment, and held resolute faith that the Euro would become the new world reserve currency, supposed to backed by a mandated 15% gold holding.

I am sure that they (both) read ZH, and in fact I'm sure one of them comments here occasionally - it would be interesting to hear their analysis of the apparent fate of the Euro...

 

Tue, 09/06/2011 - 03:44 | 1637444 DaBernank
DaBernank's picture

Just read the comments of "Spitzer" to understand the kind of denial that is possible by Euro cheerleaders. It's as if it were still 1998 and he works for the ECB as a media mouthpiece: "These European bank problems are USD/Fed problems, not ECB problems. The ECB has the world's largest gold horde. The ECB has no debt." what misinformed rubbish!

By buying bonds from governments and providing cheap credit to banks around Europe in a bid to stem the debt and bank crisis, the Eurosystem which underpins the ECB has become hugely leveraged. With only €81.187 billion in subscribed capital and reserves, compared to €1.895 trillion in assets, the ECB is now leveraged 23.4 times. In contrast, strong central banks such as the Swedish Riksbank, the Norwegian Central Bank and the Swiss National Bank, are leveraged only 4.7, 5.9 and 6.3 times respectively. Meanwhile, the average hedge fund is leveraged around four or five times.

(Alignment not working in the chart but I think you can figure it out)

Table 1: Spot the difference between the ECB and other central banks

(€m)          Capital     Reserves     Assets         Leverage     C+R as %ratio of Assets
ECB           10,761       70,426     1,895,870       23.4: 1        4.25
Swiss NB    36,174         -           226,641         6.25:1         15.96
Sweden      110         7,235        34,757          4.73:1          21.1
Norges Bank  8,441         -          49,345         5.85:1          17.1

Source: ECB weekly financial statement 24 May 2011, SNB Balance sheet, Swedish Riksbank weekly financial statement and Norges Bank Balance sheet April 2011

Tue, 09/06/2011 - 04:36 | 1637500 Alpha Monkey
Alpha Monkey's picture

That is something that has been bothering me too.  I wish they would provide analysis.

Tue, 09/06/2011 - 05:50 | 1637564 spdrdr
spdrdr's picture

To be clear, I have an enormous respect for A/FOA/FOFOA, insofar as they are highly intelligent and erudite commenters.

I was personally turfed from USAGOLD in 2004 or so because I expressed "anti-Bush" thoughts; I pleaded with Kosares (or whomever) that I was merely expressing an opinion, got re-instated as a "member", and was finally and conclusively turfed in 2007 because I expressed my sorrow at the self-induced passing of Kurt Vonnegut Jnr, one of my favourite authors.

Jesus Christ.  Haven't been back there for 4 years.  Does it still exist?

Nevermind.  I was there when FOFOA started his commentary.  Both A/FOA were spot on in terms of gold. I was there shortly after 9/11, when they disappeared.  They led me on the Trail, and I have accumulated since then a sufficient amount of PMs in order to protect my family.

These guys ROCK!

However, I think that their belief in the Euro may have been misguided...  

 

 

 

Tue, 09/06/2011 - 06:05 | 1637583 spdrdr
spdrdr's picture

AND further let me clarify:

I have NO respect for Vonnegut's political views, but great appreciation of his writings.

Go figure!

Tue, 09/06/2011 - 08:11 | 1637696 rwe2late
rwe2late's picture

spdrdr - "I have NO respect for Vonnegut's political views..."

That's a rather blanket disrespect:

Vonnegut was a lifetime member of the ACLU.

In 1968, he signed the “Writers and Editors War Tax Protest” pledge, vowing to refuse tax payments in protest against the Vietnam War.

"The only difference between Hitler and Bush is that Hitler was elected” In a 2003 interview Vonnegut said, "I myself feel that our country, for whose Constitution I fought in a just war, might as well have been invaded by Martians and body snatchers.”

Speaking of Bush and Kerry, he said that "No matter which one wins, we will have a Skull and Bones President at a time when entire vertebrate species, because of how we have poisoned the topsoil, the waters and the atmosphere, are becoming, hey presto, nothing but skulls and bones."

Tue, 09/06/2011 - 08:29 | 1637773 Dyler Turden II Esq
Dyler Turden II Esq's picture

"Haven't been back there for 4 years. Does it still exist?"

Yes, still exists - after a fashion. But the idiots (the USAgold people) essentially kicked EVERYONE off, except for USAgold employees. So the "forum" still exists, shorn of any real forum-like activity. They had had enough of that "freedom of speech" nonsense. Fuckers. They never understood that fora are RIGHTFULLY CO-OWNED BY THE CONTRIBUTORS, who are the ones creating all the value, while they stand there and rake in the profits from sales.

Tue, 09/06/2011 - 11:20 | 1638362 passwordis
passwordis's picture

     Far outperformed silver?  Perhaps over the past few weeks but in terms of years Silver has outperformed Gold by a factor of 2 to 1.  You would have made twice as much in silver over the last 10 years.

The catalyst, at least for me, for trading silver for gold will be when / if the world goes to some type of gold backed system... not when Gold starts making "real moves" (hasn't gold been making real moves for a long time?) 

 The fundamentals as I understand them suggest to me that there is absolutely no reason to believe silver will not continue to outperform gold. Perhaps this is partly due to my bias as I'm 100% physical silver  but every real indicator says silver is significantly under priced compared to gold and the fundamentals are stronger today then they were in 2001.

 

Tue, 09/06/2011 - 00:43 | 1637191 Enceladus
Enceladus's picture

Got Gold bitchez

Tue, 09/06/2011 - 00:59 | 1637223 DoChenRollingBearing
DoChenRollingBearing's picture

Me too.  But, I'll get more.

Tue, 09/06/2011 - 00:46 | 1637196 X.inf.capt
X.inf.capt's picture

the bad part is,

gold is THE hedge against turmoil.

and judging by the barometer of gold....

a bad day is coming....

Tue, 09/06/2011 - 00:49 | 1637203 Temporalist
Temporalist's picture

Looks like I picked the wrong week...

http://www.youtube.com/watch?v=VmW-ScmGRMA

 

Tue, 09/06/2011 - 01:08 | 1637227 DoChenRollingBearing
DoChenRollingBearing's picture

@ X.inf.capt

+ $1905 and green

Everyone possible should own some gold, especially parents...

EDIT:

That would be + $1913 (1:03 AM ET) now.  Fed's year of birth!

http://finviz.com/futures.ashxz

Tue, 09/06/2011 - 01:16 | 1637264 X.inf.capt
X.inf.capt's picture

HOW IRONIC...GOOD NIGHT, DO

Tue, 09/06/2011 - 01:19 | 1637270 DoChenRollingBearing
DoChenRollingBearing's picture

You too, all the best.

Tue, 09/06/2011 - 12:05 | 1638506 passwordis
passwordis's picture

  A bad day coming? It's been a bad decade.

Tue, 09/06/2011 - 00:47 | 1637198 Caviar Emptor
Caviar Emptor's picture

My Park Ave friend says: "Gold...it's not just for your soap dish anymore"

Tue, 09/06/2011 - 00:51 | 1637208 caerus
caerus's picture

i'll cover if 1915 holds

Tue, 09/06/2011 - 00:52 | 1637209 fonestar
fonestar's picture

Oh, I'm sure it will go back to $200/oz any time now.  Yep, it was a nice ride but now that world leaders have discovered fiscal prudence, religion and some large vaults they forgot about the situation will reverse itself.  "Full faith and credit" and all that good whole wheat shit...

 

/sarc

Tue, 09/06/2011 - 01:13 | 1637253 Blorf
Blorf's picture

I'd throw all of my gold into the depths of the ocean if I could live in that world, but I don't see it happening.  We're fucked.

Tue, 09/06/2011 - 00:54 | 1637212 Temporalist
Temporalist's picture

I see $1913...I'd like to request when gold hits $1931 there is a ZH Party in honor of the FED.

Tue, 09/06/2011 - 00:56 | 1637218 Temporalist
Temporalist's picture

Incidentally the Sep 5 London fix is record high of $1895 on kitco chart.

Tue, 09/06/2011 - 01:13 | 1637252 DoChenRollingBearing
DoChenRollingBearing's picture

$1913 reached at 1:05 AM ET and still there at 1:12 AM.

Tue, 09/06/2011 - 01:15 | 1637261 Temporalist
Temporalist's picture

I know...that's why I mentioned it.  Highest I've seen so far is $1915.90.  I chose $1931 as the party date for the Great Depression that they've led the world back into.

Tue, 09/06/2011 - 01:18 | 1637265 DoChenRollingBearing
DoChenRollingBearing's picture

How about $1933?  Year of confiscation...

Yes, you are right, you spotted it, I did not read your reply well.  Sorry!

Tue, 09/06/2011 - 01:23 | 1637279 Temporalist
Temporalist's picture

That would be good too...and then we'll have another one at $1971...and again at $2000.

Tue, 09/06/2011 - 01:26 | 1637287 DoChenRollingBearing
DoChenRollingBearing's picture

+++++

Tue, 09/06/2011 - 02:25 | 1637378 Troll Magnet
Troll Magnet's picture

And 2008 to mark the year of hopium and some loose pennies.

Tue, 09/06/2011 - 00:58 | 1637221 DoChenRollingBearing
DoChenRollingBearing's picture

There are two groups of people who REALLY SHOULD own gold:

 

1)  parents, for the long-term benefit of their children

2)  the middle classes, to keep gold ownership from being too concentrated.

I just wrote an article about this at my blog.  Send me a gmail at my name saying you will behave, and I will send you the link to my blog if interested.  I write under my own name, hence the hoop.  Most of my readers (over 200) came from zerohedge.com

Tue, 09/06/2011 - 07:59 | 1637670 Zero Debt
Zero Debt's picture

I like gold but the emphasis on middle-class parents doesn't make any sense.

Tue, 09/06/2011 - 09:15 | 1637954 Howard_Beale
Howard_Beale's picture

How about financailly responsible middle class parents that want to have a college fund that actually will pay for college? That make sense to you>

Tue, 09/06/2011 - 11:32 | 1638394 passwordis
passwordis's picture

  It's ironic that Zerohedgers would peddle the racket of higher education.

Tue, 09/06/2011 - 01:01 | 1637226 bob_dabolina
bob_dabolina's picture

With all the leveraged hedge funds someones gona sell. 

I got my eye on you Paulson.

Tue, 09/06/2011 - 09:22 | 1637990 Howard_Beale
Howard_Beale's picture

Paulson thought he could get a free ride on BAC with the FedL Strike one.
Loaded up on GLD-biggest scam on earth: Strike two.
Down 4 soon to be 5% this year: Strike Three
He is so 2008 and is the poster boy for "You are only as good as your last trade."

Tue, 09/06/2011 - 01:03 | 1637233 SumSUN
SumSUN's picture

Wholly hell this is great.

Hopefully GDXJ gaps up and LNKD gaps down....

Tue, 09/06/2011 - 01:06 | 1637240 digalert
digalert's picture

It's a confidence vote.

Tue, 09/06/2011 - 01:08 | 1637244 Yamaha
Yamaha's picture

I heard Ben Berneke is long the banks and short gold because it isn't real money.

 

Thank him for all his hard work......

Tue, 09/06/2011 - 01:14 | 1637256 TruthInSunshine
TruthInSunshine's picture

Ben S. Bernanke is 'traditionally' an imbecile or evil incarnate (you decide which one, but it's one of the two, and in an extreme manner).

Tue, 09/06/2011 - 01:09 | 1637245 The Shootist
The Shootist's picture

Gold bitchez! (I want the ZH mug  =)

And 'Ron Paul was right, bitches!'

Tue, 09/06/2011 - 01:18 | 1637266 Sequitur
Sequitur's picture

Today I found a 1963 Washington quarter. Wasn't looking for it -- but the change jingeled and this quarter had a distinctive metallic "ring" when jostled. I took a moment to look on this 1963 quarter: U.S. money with real intrinsic value.

And there it is. Fifty years ago, the U.S. produced money with substance behind it. This 1963 Washington, which is ninety percent silver, puts today's clad quarter garbage to shame. I dare say I love this little silver Washington, and am disgusted with clad.

I think this 1963 twenty-five cent piece is worth around $8.00 today, give or take. Isn't that something? Treasury's denomination is meaningless. The precious metal's the thing. I'm going to hold onto this 1963 quarter, just like I carry around one of my one-ounce gold maples for good luck. What I wouldn't give for the U.S. to go back in time, to produce money of substance, money of silver, and perhaps even some gold. (Though I wonder if even the clad pieces are worth more than their face value given commodity inflation.) 

I then looked at the paper in my wallet, and really became dejected, especially the "federal reserve note" moniker at top. Backing this paper is tens of trillions of on-balance sheet debt, and hundreds of trillions off-balance sheet, and I know these promises will never be kept. Never. Many Americans are going to suffer.

I remain long and strong in commodities and precious metals. I love them more every single day, gold, silver, land, some foreign businesses not denominated in U.S. dollars.

To hell with these rigged markets and these goddamn banks. May we return to the days of the 1963 silver Washington.

Tue, 09/06/2011 - 01:22 | 1637276 The Shootist
The Shootist's picture

Silver's fine to carry around, but I'd be afraid of losing a 1 oz gold coin. Not for me.

Tue, 09/06/2011 - 01:28 | 1637297 Sequitur
Sequitur's picture

I need to carry the coin around. When I look around and see the troubling events unfolding, I'll give the coin a few flips. Makes me feel better. Like the reality tokens in Inception, I usually say. Even if I lose it, the moments of peace something real brings are worth the cost, which is minimal to me.

Also have a one-ounce silver Eagle on my desk. Love it.

Remainder is locked up, including overseas, so if anyone is trying to track me down, don't bother, you'll have to break into a secured vault.

Tue, 09/06/2011 - 02:01 | 1637348 Freddie
Freddie's picture

You better be carrying around brass and lead in your pocket if you know what is good for you when it all starts coming down.

Tue, 09/06/2011 - 04:23 | 1637487 Blano
Blano's picture

I too keep a silver Eagle on my desk as a reminder, and sometimes carry it with me too.

I'm not gutsy enough to carry a gold coin, though (if I had one).

Tue, 09/06/2011 - 01:24 | 1637278 DoChenRollingBearing
DoChenRollingBearing's picture

@ sequitur

I got a 1964 quarter in change in Cozumel Port (we were on a cruise and at the tourist zone) earlier this year.  And that is Mexico, where they mine a LOT of silver!  The silver in that quarter is worth about +/- $7.00 now.

Tue, 09/06/2011 - 01:29 | 1637299 Sequitur
Sequitur's picture

Yep it's also 90% silver. Love it.

Tue, 09/06/2011 - 01:24 | 1637280 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

I wonder if even the clad pieces are worth more than their face value

http://www.coinflation.com/coin_calculators.html

Tue, 09/06/2011 - 01:27 | 1637293 Temporalist
Temporalist's picture

I have posted nearly the exact same before...listen to the jingle it is distinct.  The first silver quarter I ever "found" was by hearing something unusual.

Tue, 09/06/2011 - 01:39 | 1637322 CrockettAlmanac.com
CrockettAlmanac.com's picture

I can tell by coloration. On the rare occasions that silver turns up I can usually spot it in the clerk's palm as he hands me my change. Last time I found some was 3 or 4 years ago when I was at the bank and I could see the edges of three 40% silver halves in the teller's coin tray.

These days it's a thrill to find a wheat penny.

Tue, 09/06/2011 - 01:43 | 1637327 UGrev
UGrev's picture

+1 for spy vs spy.. 

Tue, 09/06/2011 - 01:37 | 1637318 Alpha Monkey
Alpha Monkey's picture

Went through my coin stash the other day, filled two ziploc sandwich baggies with quarters, only had 1 1963 quarter.  Wish I would have checked the stuff I put into coinstar a couple years back :(

Tue, 09/06/2011 - 06:09 | 1637586 Mitzibitzi
Mitzibitzi's picture

I've had that very same thought. Those Coinstar machines have popped up damn near everywhere in the UK over the last year or so.

Tue, 09/06/2011 - 07:33 | 1637638 JohnG
JohnG's picture

My wife's father died last year.  When cleaning out his house, we found socks, paper bags, plastic bottles, tupperware containers FULL of coins.  Took me three months to go through it looking for silver, there weren't a lot of pennies.  About 1/2 was silver.  The rest went into a Coinstar machine, just under $3000. 

Quite the stash.

Tue, 09/06/2011 - 09:26 | 1638008 Howard_Beale
Howard_Beale's picture

Why would anyone use Coinstar? They take a percentage of your money to roll it up. WTF?

Tue, 09/06/2011 - 10:21 | 1638188 RockyRacoon
RockyRacoon's picture

Assuming one has a bank account...   Ask for a cloth coin bag, they will give you one.   Put all your mixed coins in the bag with a deposit slip on top.   Drop off the bag at the bank and your account will be credited with the coinage total a few days later.   Please don't go on about "trust" and all that shit.   Banks do this day in and day out.  No big deal, no counting/rolling of coins, and you get full face value.   Why do folks insist on doing things the hard way?

Tue, 09/06/2011 - 17:18 | 1639592 zerozulu
zerozulu's picture

My Credit union branch ( I closed my CHASE accounts and moved to Local credit union just like any patriot should do) does not charge any percentage.

Tue, 09/06/2011 - 01:18 | 1637267 topcallingtroll
topcallingtroll's picture

If events have swung out of control and monetary and fiscal policy is paralyzed it will take gold down too, eventually.

Those of you believing in gold right now are of the view that bond vigilantes are impotent and governments and central banks have the political will to spend and monetize ginormous amounts of money and bonds respectively.

I am not sure there is the political will to open the fiscal and monetary policy floodgates. If a true deflation cant be stopped then cash and bonds are the place to be.

Treasury bonds, traditionally the haven of smart money at the margin, have consistently signaled that deflationary forces are unstoppable.

Isnt this the greatest show on earth? And we get to live through it!

Tue, 09/06/2011 - 01:21 | 1637275 Sequitur
Sequitur's picture

There is some decent research showing commodities and precious metals can do well in both inflationary and deflationary environments. If anything, I'd be worried about owning a ponzi home in the U.S. if we have deflation. Though I've always thought the market has much, much further to fall, and would not be surprised for homes to return to valuations approaching 2x annual income.

Tue, 09/06/2011 - 02:08 | 1637356 Threeggg
Threeggg's picture

The Ponzi home that I live in, is 100% owned by the Ponzi bank, that financed it with Ponzi currency. Feel sorry for the people that "had" equity or paid their house off in full.

Zillow and Case Shiller both say, we have a 25% haircut coming in home values. 

Tue, 09/06/2011 - 08:03 | 1637678 JohnG
JohnG's picture

I had my house built.  Owe nothing on it, never plan to sell it.  I'll live out here until I die I suppose.  I have to take the view that it's a roof and walls to keep me out of the wind, rain, heat and cold.

It seems the most logical, least painful point of view.

Tue, 09/06/2011 - 03:27 | 1637430 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Yeh, Real incomes are falling too...so that means homes could have a long way to go

They'll eventually be undervauled again one day. But most people will be concerned about huge food bills; people will live many to a home, avoid unnessessary renting at all costs.

Yet housing is still an essential commodity, so if you pick the rght area maybe you could get some bargins

Tue, 09/06/2011 - 06:12 | 1637588 Mitzibitzi
Mitzibitzi's picture

Hope that IS as low as they're likely to go! I'd still be in positive equity at double my annual wage. I think they'll go lower than that before all is said and done, however.

Not that'll I'll care much about the value when the looter zombies get through burning it down. ;-}

Tue, 09/06/2011 - 01:28 | 1637296 jimmyjames
jimmyjames's picture

If a true deflation cant be stopped then cash and bonds are the place to be.

********

Yes both are proven deflation performers-but so is gold in fact more so-

http://4.bp.blogspot.com/_nSTO-vZpSgc/RbZwf5lgCXI/AAAAAAAAAN0/WJYO6dh-og...

http://2.bp.blogspot.com/_nSTO-vZpSgc/RbmMtplgCjI/AAAAAAAAAPk/NtN5JDlwHi...

 

 

Tue, 09/06/2011 - 02:28 | 1637381 DosZap
DosZap's picture

< topcallingtroll >
Who the hell wants bonds and more WORTHLESS PAPER SHIT.............?

Whose cash?,whose Bonds?.

Tue, 09/06/2011 - 13:11 | 1638718 topcallingtroll
topcallingtroll's picture

USA cash and bonds
Brazil cash and bonds, maybe.

Tue, 09/06/2011 - 08:01 | 1637674 Zero Debt
Zero Debt's picture

The bond vigilantes don't matter in the Treasury market because there is a Bernanke put on all maturities.

Tue, 09/06/2011 - 01:19 | 1637269 monmick
monmick's picture

But Dennis Gartman said the gold bubble was bursting! And he's hardly ever wrong on gold...

Tue, 09/06/2011 - 01:20 | 1637272 Yamaha
Yamaha's picture

Correct - Ron Paul is long gold and short the market according to his filings.

Tue, 09/06/2011 - 01:26 | 1637288 Rastadamus
Rastadamus's picture

2000 zero-zero, parties over, OOPS out of time!

So tonight I'm gonna party like gold is worth 1999!

$1999!!!!!!

Coming to a store near you!

 

Tue, 09/06/2011 - 01:37 | 1637291 RmcAZ
RmcAZ's picture

My FAZ is looking good right about now... as is my PHYS.

And of course, my pile of physical PMs.

Tue, 09/06/2011 - 01:28 | 1637295 Caviar Emptor
Caviar Emptor's picture

Wow all the gold bears from last week are pissed off. Soon enough they'll say how much they love gold like Cramer did circa late 2009. 

Tue, 09/06/2011 - 01:37 | 1637320 DoChenRollingBearing
DoChenRollingBearing's picture

AHH.   AHAHAHAHA!  AH...  AHAHAHAHAHAHA!

+ $1913

Tue, 09/06/2011 - 01:32 | 1637306 The Deleuzian
The Deleuzian's picture

Where did all the gold=bad propaganda come from if/when we have deflation!!!!

Tue, 09/06/2011 - 01:36 | 1637313 Caviar Emptor
Caviar Emptor's picture

CNBS's favorite headline: Gold down. 

They roll it out the next day after a new record is set. It makes them feel like maybe, just maybe they convinced some newbie dork at home to buy an empty piece of paper called stock instead. 

Tue, 09/06/2011 - 02:15 | 1637365 Threeggg
Threeggg's picture

Won't even here the word "Gold" tomorrow on the MSM. They will be telling everyone to buy the dip in equities or, that this could be a great buying opp if you have been waiting on the sidelines to get back in.

Garsh.............I love paper pushers !

LOL !

Tue, 09/06/2011 - 02:27 | 1637380 Howard_Beale
Howard_Beale's picture

Apparently you don't watch the MSM. It gets plenty of coverage these days,

Tue, 09/06/2011 - 01:55 | 1637342 markar
markar's picture

$1919.50

Tue, 09/06/2011 - 01:57 | 1637343 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Gold is for suckers.

 

Got my money parked in California Condor eggs.

Tue, 09/06/2011 - 02:09 | 1637361 Temporalist
Temporalist's picture

That is an expensive omlette.  I like mine Cali Baja style with some chorizo...

Tue, 09/06/2011 - 02:30 | 1637382 Howard_Beale
Howard_Beale's picture

Petty sarcasm at best. You must be a newbie. Oh my, just 17 weeks here. Yawn.

Tue, 09/06/2011 - 03:36 | 1637439 blindman
blindman's picture

yea, but it is probably federal offense to eat california condor eggs so ..
you can't eat condor eggs.

Tue, 09/06/2011 - 03:41 | 1637442 StychoKiller
StychoKiller's picture

Why is Au rising?  Could it be because of such idiocy as this:

If Californians want babysitters so they can have a night out they may have to fill out the proper state employment paperwork first. California Assembly Bill 889, submitted by Assembly member Tom Ammiano of San Francisco, will require anyone employing a "domestic employee" to provide minimum wages, workmen's compensation, rest and meal breaks and a variety of other benefits. The prospective law will apply to nannies, housekeepers, caregivers, even babysitters.  House-sitters, dog-walkers and other people who provide services around the home could also be included.  Given Democratic dominance in both California houses and utopian leftist Jerry Brown in the governor's office, this latest nanny-state measure may soon be law.

The bill provides that "domestic employees" over the age of 18 be paid at least minimum wage, and that substitutes be provided every two hours for scheduled rest and meal breaks.  Employees would also be entitled to overtime pay, and those employing them would be required to maintain time cards and other paperwork to meet state reporting requirements.  The first draft of the legislation also required an hour of paid vacation time for every 30 hours worked. This provision was deleted, but it is no more absurd than the rest of this job-killing bill.

 

From "The Times Robbins Report"

Tue, 09/06/2011 - 01:58 | 1637345 mt paul
mt paul's picture

1917.18  $ per oz 

 

curious numbers ..

Tue, 09/06/2011 - 02:03 | 1637352 UGrev
UGrev's picture

1920.25 my ballz are tingly..

Tue, 09/06/2011 - 02:09 | 1637360 mt paul
mt paul's picture

my balls are furrie

Tue, 09/06/2011 - 02:03 | 1637351 Freddie
Freddie's picture

Anyone think we will blow through $2,000 this week or maybe even tomorrow?

Tue, 09/06/2011 - 02:08 | 1637357 mt paul
mt paul's picture

maybe by dawn ...

 

the golden dawn ...

Tue, 09/06/2011 - 10:22 | 1638193 HedgeCock
HedgeCock's picture

Yeah, most probable.  

Tue, 09/06/2011 - 02:05 | 1637353 Drag Racer
Drag Racer's picture

how do you say $1922.00 in transitory  traditional terms???

Tue, 09/06/2011 - 02:08 | 1637358 UGrev
UGrev's picture

Like this..  "When the Fed can't fuck with it.. it's miller time!!!"

Tue, 09/06/2011 - 02:06 | 1637354 Oh regional Indian
Oh regional Indian's picture

Knocking on Heaven's Door or The gate of Hades? hmmmmmmmmmm?

Allofus PM lovers should re-member Midas well. And like someone said up-thread or another thread, the portends for "real' life in thsi scenario look terrible.

Time to grid the loins an dall that sort of thing.

V

http://aadivaahan.wordpress.com/2011/09/05/water-branding-and-thoughts/

Tue, 09/06/2011 - 02:19 | 1637371 DosZap
DosZap's picture

$1919.40 CST

Tue, 09/06/2011 - 02:20 | 1637372 changie
changie's picture

Margin raise for Shanghai T+D is only for one day due to Chinese Moon Festival on the 12th. margin will return to normal on the 13th.

Tue, 09/06/2011 - 02:20 | 1637373 The Deleuzian
The Deleuzian's picture

Everyone get ready for Obama's New Deal 2.0 coming this week.

Road workers will be everywhere... Mt. Rushmore needs a facelift..

Tue, 09/06/2011 - 02:20 | 1637374 changie
changie's picture

Margin raise for Shanghai T+D is only for one day due to Chinese Moon Festival on the 12th. margin will return to normal on the 13th.

Tue, 09/06/2011 - 02:22 | 1637375 Ghoaster
Ghoaster's picture

Damn! I guess I'll sleep in the morning.....This is gonna be a hell of a week for das homeland security

Tue, 09/06/2011 - 02:34 | 1637386 eazyas
eazyas's picture

fucks sake, i still have no gold, shits so dear , got some silver, but i want some gold!

Tue, 09/06/2011 - 02:36 | 1637389 Sequitur
Sequitur's picture

Silver is good.

Tue, 09/06/2011 - 04:31 | 1637496 Blano
Blano's picture

Better than nothing, and better than most.

Tue, 09/06/2011 - 02:42 | 1637392 blindman
blindman's picture

http://www.youtube.com/watch?v=5_swaxOidGU . "mama take this badge off a me i can't use it anymore" .... b.d. . " mama put my guns in the ground i can't shoot them anymore .."

.

http://www.youtube.com/watch?v=ZgAoe1o2134&feature=related

Best version of Knockin on heavens door - With Mark Knopfler

Tue, 09/06/2011 - 02:54 | 1637403 mt paul
mt paul's picture

golden..

what a great recording

of a classic

 

did joe cocker

of Blind dogs and englishmen

ever sing this song ..

would be a good mix ...

Tue, 09/06/2011 - 03:27 | 1637416 blindman
blindman's picture

all i could find was the shred which is painful.

but this is weird

Bob Dylan-Knockin' On Heaven's Door 8-bit

http://www.youtube.com/watch?v=s6ZoNyBMdGs&feature=related

.

Bob Dylan - Knockin' On Heaven's Door

http://www.youtube.com/watch?v=cJpB_AEZf6U&ob=av2n

Tue, 09/06/2011 - 03:30 | 1637435 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Aril Lavigne?? She's cute...

I'll get my hat...

Tue, 09/06/2011 - 03:57 | 1637455 blindman
blindman's picture

http://www.youtube.com/watch?v=pruYLmuEbjg
You can leave your hat on (Joe Cocker): official clip!

Tue, 09/06/2011 - 02:59 | 1637411 BooMushroom
BooMushroom's picture

 

Last Trade: 1,920.50 Trade Time: 2:23AM EDT
Tue, 09/06/2011 - 03:09 | 1637417 DosZap
DosZap's picture

$1907.30 CST

Tue, 09/06/2011 - 03:58 | 1637428 Conax
Conax's picture

They be knock knock knockin on PMs' head..

I was going to buy some gold, but gee, look, it's dropping just like the market, so I had better open up a Christmas account with the cash instead..

Bad old metals, can't eat em and all that bullshit.

 

Tue, 09/06/2011 - 04:10 | 1637466 blindman
blindman's picture

buy high, sell low. ?

Tue, 09/06/2011 - 03:45 | 1637446 StychoKiller
Tue, 09/06/2011 - 03:55 | 1637454 blindman
blindman's picture

2012 Dragon Gold Proof 1oz Coin 2S1215DAAA AUS $ 2,818.18 US$ 2,974.38
.
is it me or is that premium outrageous? ( escandaloso )

Tue, 09/06/2011 - 04:06 | 1637462 blindman
blindman's picture

return of the bitches, bitches.
.
Werewolves Of London
http://www.youtube.com/watch?v=1MRu8N2K0NY
.
I saw a werewolf with a Chinese menu in his hand
walkin through the streets of Soho in the rain.
He was lookin for the place called Lee Ho Fooks, gonna get a big dish of beef chow mein.

Chorus:
Aaahoo, werewolves of London
Aaahoo(2x)

Ya hear him howlin around your kitchen door, ya better not let him in.
Little old lady got mutilated late last night, werewolves of London again.

Chorus 2x

He's the hairy, hairy gent, who ran amok in Kent.
Lately he's been overheard in Mayfair.
You better stay away from him, he'll rip your lungs out Jim.
Huh, I'd like to meet his tailor.

Chorus 2x

Well, I saw Lon Chaney walkin with the queen, doing the werewolves of London.
I saw Lon Chaney Jr. walkin with the queen, doin the werewolves of London
I saw a werewolf drinkin a pina colada at Trader Vic's
And his hair was perfect.

ahhhooooo, werewolves of London
Draw blood

Tue, 09/06/2011 - 04:08 | 1637463 LukeWorm
LukeWorm's picture

Flash crash in gold futures !?

Tue, 09/06/2011 - 04:11 | 1637468 spdrdr
spdrdr's picture

Nope, London a.m. opening smackdown.

Impressive effort from the fuckers, I must say.

BTFD while you have the chance!

 

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