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Gold Reaches $1,900 Again - Supported by Risk of U.S. Recession, German Euro Risk and Wikileaks China Gold Cables

Tyler Durden's picture


From Gold Core

Gold Reaches $1,900 Again - Supported by Risk of U.S. Recession, German Euro Risk and Wikileaks China Gold Cables

Spot for immediate delivery rose to $1,903.00/oz as the dollar and all currencies fell against gold in early European trading. Risk aversion has returned due to concerns about the US and global economy and Eurozone contagion.

Gold is trading at USD 1,890.50, EUR 1,339.10, GBP 1,171.30, CHF 1,486.50 and JPY 145,350 per ounce.

Cross Currency Table

Gold’s London AM fix this morning was USD 1,896.50, EUR 1,341.13, and GBP 1,174.67 per ounce. The gold fix was higher than Friday’s in all currencies (USD 1,854.00, EUR 1,301.23, and GBP 1,143.81 per ounce).

The very poor employment figure in the United States has led to stock markets in Asia and Europe experiencing quite large falls. Also the exposure of the world’s largest banks to lawsuits which could cost billions is causing market jitters.

Despite continuing denial, a recession in the U.S. is inevitable; the question is only with regard to how deep the recession is and to the nature of the recession – inflationary, stagflationary, hyperinflationary or deflationary.

The consensus, especially amongst Keynesians, is that deflation is most likely. However, given the degree of currency debasement being seen internationally stagflation is also a risk. 

Hyperinflation, as being experienced in Belarus today, is the macroeconomic and monetary ‘black swan’.

There are growing concerns that the Eurozone crisis might degenerate again soon due to the Greek debt crisis and risk of default. Over the weekend talks between Greece, the IMF and ECB representatives over new bailout funds broke down.

The euro has fallen and the German local elections have added to concerns over Greece.

Exit polls suggest that Merkel’s ruling CDU has lost support ahead of parliamentary vote on Eurozone temporary bailout mechanism. There is also increasing speculation that she is preparing for a political farewell.

On Wednesday morning, Germany's Federal Constitutional Court will deliver its ruling - awaited for over a year - on suits claiming Berlin is breaking German law and European treaties by contributing to multi-billion euro bailouts of Greece, Ireland and Portugal.

There is a real risk that politics in Germany may soon lead to end of the European Monetary Union and euro as we know it. 

People’s Bank of China

Over the weekend, Zero Hedge picked up on the most recent batch of Wikileaks revelations showing cables from the United States embassy in China to State Department officials in Washington in 2009.

The cable summarizes several commentaries in Chinese news media. One of those commentaries is attributed to the Chinese newspaper Shijie Xinwenbao (World News Journal), published by the Chinese government's foreign radio service, China Radio International. The cable's summary reads:

“The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. 

Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries toward reserving more gold. 

Large gold reserves are also beneficial in promoting the internationalization of the renminbi."

The cables suggest that China sees gold as a valuable monetary and indeed geopolitical asset in order to further their aims to rival the U.S.A. as a global economic power. Something that we have long warned of.

The People’s Bank of China’s aims in this regard and their massive increase in gold reserves in recent years, is one of the elephants in the room ignored by many analysts and so called experts.

Even after nearly doubling their gold reserves to become the world's fifth-biggest holder of the precious metal - from 600 tonnes in 2003, to over 1,054 tonnes (announced in 2008), China still has less than 2% of its currency reserves in gold in marked contrast to most other large industrial nations including the U.S. (

The Chinese are nervous about the debasement of their $3 trillion ($3,000,000,0000,000) worth of U.S. debt and are continuing to diversify their currency reserves. 

Gold in Chinese Yuan (CNY) – 10 Year (Weekly)

In late 2010, a Chinese Chamber of International Commerce researcher said that China should "eventually boost its gold reserves to a level equal to that held by the United States". 

China's reported gold reserves total 1054 tonnes, a fraction of the 8133 tonnes held by the U.S.

Given the recent diplomatic tension between the U.S. and China (Tibet, Taiwan, Libya and Iran) there is an important geopolitical dimension to this story that is worth watching. 

China has diplomatically communicated to the U.S. financial authorities that they expect US monetary economic policies to be responsible and that the vast Chinese dollar holdings not be devalued.

Chinese diversification into gold will continue but the Chinese will continue to do so under the radar and will not broadcast their intentions for fear of driving down the dollar and up gold prices and then having to chase the gold market.

Far better to slowly and gradually pursue a policy of reserve diversification thereby accumulating gold without spooking markets are causing the gold price to surge.

This is likely the strategy of other creditor nation central banks and even many billionaires internationally.

China's intentions with regard to positioning the yuan as a global reserve currency have been declared by many officials. 

China wishes to internationalize the yuan by having important commodities such as gold traded in yuan. An official from the People's Bank of China said in May 2010 that China should develop more yuan-denominated gold investment products for 30 trillion yuan in savings the country has.

The official said that China's trading in yuan-denominated gold investment products boosts the internationalization of the currency and the country, stating

“A currency's international status depends on its being accepted in trade and settlement and having certain international commodities denominated in that currency helps China's goal to internationalize the yuan. Gold is a good choice to have yuan trading.”

China has been less vocal regarding the trading of oil in yuan or renminbi, but this is a likely policy goal and could potentially threaten the petrodollar and thus the dollar's reserve currency status.

Indeed, China has already done bilateral deals to buy oil and gas from some producing nations with yuan.

Speculation that the euro could supplant the petrodollar and the dollar as global reserve currency are now well and truly dead. 

China's growing political and economic clout, and the fact that it is the world's largest creditor nation mean that its currency poses a long-term threat to the dollar as global reserve currency.

Should geopolitical tensions continue to escalate between the U.S. and China, then the Chinese could use the gold and wider currencies market in a currency war.

Such threats to the dollar and growing concerns about fiat currencies internationally, mean that gold is likely to continue rising for the foreseeable future, and the inflation adjusted high of $2,500 per ounce looks inevitable.

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

Silver is trading at $42.52/oz, €30.10/oz and £26.35/oz. 

Platinum is trading at $1,871.50/oz, palladium at $763/oz and rhodium at $1,800/oz. 

Gold Climbs Above $1,900 as Concern About Slowing Economies Stokes Demand 

Gold edges lower; growth worry supports

(The Telegraph)
RBS faces billion dollar bill in US lawsuit

QE3 no silver bullet for markets

BofA, JPMorgan Among 17 Banks Sued by U.S.

(Zero Hedge)
Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree 

Commentary: Gold climbs back - Gold bugs cheers bounce-back

(Business Insider)
MAULDIN: It's All About The Jobs -- And Gold

China knows about gold price suppression, and U.S. knows China knows

MIDAS SPECIAL - WikiLeaks/US Embassy In Beijing Price Suppression Cable/China/GATA On The Move In Hong Kong And London

(Financial Times)  
The Worst of the Euro Crisis is Yet to Come


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Mon, 09/05/2011 - 09:04 | 1633891 bullionbaron
bullionbaron's picture

If you think there is potential for the metal to hold or even run higher from these levels short term I think the preciouc metal miners offer a fantastic opportunity.

A huge breakout to new highs (and out of an inverse head and shoulders) on the GDX and HUI on Friday is very bullish and they are due for a large run.

Charts and further commentary on my blog:

Mon, 09/05/2011 - 09:17 | 1633950 problemfixr
problemfixr's picture

I think you are on to something, Baron.

Mon, 09/05/2011 - 10:57 | 1634438 Precious
Precious's picture

"The problem with gold is that it's simply too expensive to melt into bullets." -- precious

Mon, 09/05/2011 - 09:18 | 1633954 jekyll island
jekyll island's picture

Let's be a little more specific, BB.  High quality miners will move forward, over 80% of mining companies do not make money.  Gold and Silver do not require management or have a board of directors making stupid decision, we have the government for that.  

Secondly, gold and silver producers have and will do well in the current fearful environment.  My gold explorers haven't done anything, some are down 40% or more.  Encourage people to buy mining companies with good management, good share structure, plenty of cash, good results and are already in production or just about to start production.  All the others are speculation and should be treated as such.  Oh, buy on the dips, 20% of what you would like on the first tranche and wait to see what happens.  I jumped in a couple times at what I thought were good entry points only to see them fall another 30% or more. That is the way of mining stocks.  If you can't stomach the risk, just buy physical gold and silver.  It will serve you well.  

Mon, 09/05/2011 - 09:23 | 1633988 bullionbaron
bullionbaron's picture

You raise some good points. It is important to ensure you buy high quality stocks with solid management & a good cash buffer. For those who are new to the stocks but see the potential in them being undervalued as a sector then you could also look at exposure to an ETF which tracks a basket of miners like the GDX.

Mon, 09/05/2011 - 10:09 | 1634234 Fuh Querada
Fuh Querada's picture

Good quality gold (and silver)  mining stocks are a imho an essential diversification in addition to ETFs and to storing the physical metal, and having to worry about how safe that storage is. Doug Casey made a good point recently that we have fear mode now which will leave the junior exploreres untouched until the mania starts. Thus the producers are leading the current uptrend.

Mon, 09/05/2011 - 10:26 | 1634304 Thomas
Thomas's picture

I would simply like to hat tip the guys at Goldcore for their nice summaries of the geopolitical foundations underlying gold.

Mon, 09/05/2011 - 09:45 | 1634092 MFL8240
MFL8240's picture

I agree but, must decide if you want a hard assett or more confetti.

Mon, 09/05/2011 - 10:03 | 1634198 jekyll island
jekyll island's picture

Your comment shows your ignorance.  You should not invest in mining stocks until you are holding physical PM's, at least a third of your assets.  If you do not have a strong foundation of physical metal no way should you be investing in the mining sector.  THEN you can speculate in mining shares for the upside potential they represent.  I have had two holdings double or triple in the last year: Great Panther Silver and Silverquest.  I sold half of the position and used the profit to buy a monster box of silver and still held a sizable stake in the companies.  I would say the risk was richly rewarded.  That is the value of the mining stocks, take the profit when available and move it into hard assets or use it to buy shares in another company.   

Mon, 09/05/2011 - 10:10 | 1634244 FEDbuster
FEDbuster's picture

You should not invest in physical PMs until you have your food, water, first aid and the means to protect it taken care of.  Two years of storage for each family member and long term production solutions for food and clean water, IMHO.

Mon, 09/05/2011 - 10:17 | 1634273 jekyll island
jekyll island's picture

You're absolutely right, of course.  Fill up the pantry, drill a well, guns and ammo for protection, silver rounds to buy more as you need it.  Personally I think a 6 month supply would be enough, 2 years is not unreasonable.  

Mon, 09/05/2011 - 11:20 | 1634521 Smiddywesson
Smiddywesson's picture

Your logic is faultless, but you can do both.  These things are not mutually exclusive.  

On the other hand, let's play devil's advocate.

If you wait to amass physical, you are definitely going to pay a much higher price and be able to stockpile less of everything.

I sure wish I had bought my physical first and my food later.  That sentiment is likely to remain true right up to the time that food is no longer available.  Hopefully, that time doesn't even come.  If you believe in PMs, the time to start buying is now.

Mon, 09/05/2011 - 10:54 | 1634421 Snidley Whipsnae
Snidley Whipsnae's picture

Miner = Liar standing next to a hole in the ground...

Mon, 09/05/2011 - 12:14 | 1634709 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1895 and green.

Physical > Miners

Mon, 09/05/2011 - 14:13 | 1635116 akak
akak's picture

Bernanke = a-hole standing next to a liar who is brown.

Mon, 09/05/2011 - 09:05 | 1633893 jekyll island
jekyll island's picture

Thanks for the update.  Yawn.  Wake me when gold hits $2,500.  Probably next week. 



Mon, 09/05/2011 - 09:07 | 1633900 spiral_eyes
spiral_eyes's picture

stagnation, bitchez

abolish the gold standard, have a massage-the-figures money printing economy, watch your productive base, and social system fall to pieces. 

Mon, 09/05/2011 - 09:17 | 1633926 hedgeless_horseman
hedgeless_horseman's picture

Yu can't eat it, but Yu can drive it... long as Yu remember to pay the taxes.

Mon, 09/05/2011 - 09:30 | 1634010 Sudden Debt
Sudden Debt's picture

Actually, I think you can eat and ride them both. Even while sitting in that car.


Mon, 09/05/2011 - 09:41 | 1634072 au_bayitch
au_bayitch's picture

SD @ 0930 ; Like your style

Mon, 09/05/2011 - 11:42 | 1634588 DoChenRollingBearing
DoChenRollingBearing's picture

Very good!

Mon, 09/05/2011 - 09:44 | 1634089 chindit13
chindit13's picture

Damn, why didn't I think of this when I was Marketing Director at Yugo?

Mon, 09/05/2011 - 10:41 | 1634360 thunderchief
thunderchief's picture

R  U Hard up for the Chinese chicks or the hot rides???... They are both a tough FUCK!!

Takes one to know one....

Mon, 09/05/2011 - 11:18 | 1634518 Bicycle Repairman
Bicycle Repairman's picture

I want the whole picture.

Mon, 09/05/2011 - 09:14 | 1633934 silvertrain
silvertrain's picture

Cnbc said last week that it looked like the Gold bubble had burst..Can something be a bubble twice in as many weeks?

Mon, 09/05/2011 - 09:50 | 1634120 DefiantSurf
DefiantSurf's picture

You are now dumber for having watched that crap, and we are all dumber for having read your comment on that crap...thx


Tue, 09/06/2011 - 21:42 | 1640456 Fiat2Zero
Fiat2Zero's picture

We do need someone to "take one for the team" and watch that crap.  Otherwise how will we know what is being programmed into the sheeple?

Mon, 09/05/2011 - 10:09 | 1634240 StychoKiller
StychoKiller's picture

If you repeat an untruth often enough, SOMEONE will be stupid enough to believe it! :>D

Mon, 09/05/2011 - 10:39 | 1634365 DosZap
DosZap's picture

CNBC is a SHILL for the Traitors in the Treserve.............They would not know a bubble if it came out their nose.

We all know what a BUBBLE IS, and looks like..............

The Entire World may be in a, Bubble, but GOLD is not even close.

Mon, 09/05/2011 - 11:25 | 1634538 Smiddywesson
Smiddywesson's picture

Can something be a bubble twice in as many weeks?

Exactly, bubbles that are popped stay popped.  That's why they are called bubbles.

Mon, 09/05/2011 - 09:14 | 1633936 Bringin It
Bringin It's picture

OT, but check this out.  Ineresting?  Saw it on the AEP comments.

Tavistock: The Best Kept Secret in America


Mon, 09/05/2011 - 09:28 | 1634004 tamboo
tamboo's picture

the 7-7  bus went off course and blew up right in front of the place,

nice little inside joke eh?

7/7 Witness: Bus Was Diverted To Tavistock Sq. By Two Unmarked ...
Mon, 09/05/2011 - 09:26 | 1633997 mrgneiss
mrgneiss's picture

I heard that JPM has offered to "hold" the confiscated silver.

Mon, 09/05/2011 - 10:05 | 1634217 Muddy1
Muddy1's picture

JPM BITCHEZ,  they'll melt it and make little bars to help cover their shorts.

Don't forget, it's Chase JPM, bury the bitchez

Mon, 09/05/2011 - 09:22 | 1633979 apberusdisvet
apberusdisvet's picture

Going forward, methinks the correctr economic term for what we face is "hyperstagflation", negative growth and incrementally increasing prices for necessities.

Mon, 09/05/2011 - 09:24 | 1633989 Tense INDIAN
Mon, 09/05/2011 - 09:30 | 1634011 Motley Fool
Motley Fool's picture

buy Tradition

Mon, 09/05/2011 - 09:30 | 1634012 Pimp Juice
Pimp Juice's picture

I'm not very smart so I have developed a color coded formula:

When green turns to red buy yellow and gray.

Mon, 09/05/2011 - 10:38 | 1634361 X.inf.capt
X.inf.capt's picture

i like that.

Mon, 09/05/2011 - 09:32 | 1634024 DutchSucker
DutchSucker's picture

According to the Yajweh tapes (indeed, its the Yahweh from the old testament :-)) the USA had transported their gold to France just before WW1. Thats why USA was somewhat involved with WW1. Hitler knew USA had gold in France during WW2.


Now I suggest Ron Paul gets his way and inspect Ford Knox.


Be suprised!

Mon, 09/05/2011 - 09:38 | 1634056 MFL8240
MFL8240's picture

There is proof that all of the Gold in Fort Knox was leased to foreign countries by Billie Blue Skirt and Robert Rubin.  There is no Gold at Ft Knox and anyone who thinks there is is crazy.  Ft Knox will never be audited, it would cause a global collapse within minutes.

Mon, 09/05/2011 - 10:07 | 1634227 Muddy1
Muddy1's picture

It wasn't a blue skirt, it was a blue dress with a sequin? (semen) accent from old blu balls hisself

Mon, 09/05/2011 - 10:37 | 1634358 DosZap
DosZap's picture

Could we get the EFFEN COMMERCIALS off the damn Comment sections?........LOL

The GOLD is stored at FOUR separate locations, Ft Knox, West Point(where most US Mint coins come from), FED RES Bank IN NYC, and I forget the other CLAIMED repository.

Mon, 09/05/2011 - 11:49 | 1634605 FeralSerf
FeralSerf's picture

The other claimed repository is "Deep Storage".  It's all there, but not in 400 oz. bars like you might expect.  It's mixed with some dirt and misc. rocks for security purposes.

Mon, 09/05/2011 - 09:35 | 1634038 MFL8240
MFL8240's picture


The experiment in equality that propelled an unknown clown to the White House is doing well on all fronts.  Take a look at Libya today, his success has been spread over the economy, foreign affairs and pretty much everything this clown touches.  Needs to go and we cannot wait till 2012; at least Biden has American values.


But have no fear, the witty hater Maxine (Go to Hell Tea party)  has the answer, a trillion dollar jobs program.  I guess this money will come from the taxes paid by her constituents!  Lol!!

Mon, 09/05/2011 - 10:08 | 1634233 Muddy1
Muddy1's picture

Maxine's job program = reparation

Mon, 09/05/2011 - 10:49 | 1634391 DosZap
DosZap's picture

Maxine should be glad her ancestors sold her distant relatives in to slavery, otherwise she would never have been an American,likely never even born, damned sure would not have made it to adulthood, nor would she be a trouble making bitch in power.Between her and Sheila Jackson Lee,I have difficulty figuring which one is batshit crazy, or on permanent PMS cycles.

How's that for reparations?.Thank GOD you were given the chance to be an American(while we still were in a positive mode).

Mon, 09/05/2011 - 11:57 | 1634650 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1895

MAXINE should be one of the most grateful people in the world!  Where else could she get into Congress and bloviate to hell with no consequences?  And they re-elect her everytime!

She should indeed thank God every day!

Mon, 09/05/2011 - 09:47 | 1634100 Cheyenne
Cheyenne's picture

The shiny stuff is so bubbly that the U.S. mint has suspended silver and gold products for the 3rd or 4th time this year.

And I'm sure the Chairsatan remains ignorant about why the unrelenting price increase.

Mon, 09/05/2011 - 09:49 | 1634107 Xibalba
Xibalba's picture

Who is that trying to sell at $1895?  Doesn't the FRBNY know it's a national holiday?  

Mon, 09/05/2011 - 09:50 | 1634118 jekyll island
jekyll island's picture

Love this comment: 


China's reported gold reserves total 1054 tonnes, a fraction of the 8133 tonnes held by the U.S.


How many believe that represents China's total holdings?  Should read "1054 tonnes, a fraction of their total unreported holdings"

Reverse that comment for the US holdings

Ron Paul anyone?  


Mon, 09/05/2011 - 11:41 | 1634583 Smiddywesson
Smiddywesson's picture

I think you are half right.  The Chinese have lied in the past about their gold acquisitions, so they must have more than they admit.

As to US gold.  The current conspiracy to kick the can and slowly acquire gold is world wide and is being orchestrated by the Fed and the ECB.  What kind of system would permit a goldless Fed to survive?  The Fed wouldn't be doing what it is doing unless it was getting the lion's share of the action.  They are buying.  They have had three years to replace the gold they leased out.  Maybe it isn't all replaced yet, and that's why we have to continue to kick the can, but they would be suicidal not to replace it.

Mon, 09/05/2011 - 12:01 | 1634667 DoChenRollingBearing
DoChenRollingBearing's picture

FOFOA does not believe that Ft. Knox is barren of gold, nor of the need to "crash" JPM.

He uses hard logic, and when he postulates, he uses "Occam's Razor" -- the simplest explanation is the one most likely to be right.

I too would like to see Ron Paul to audit both Ft. Knox and the Fed.  The truth.  Bitchez.

Mon, 09/05/2011 - 12:22 | 1634733 RockyRacoon
RockyRacoon's picture

I'm not a fan of referring anything to being "a fraction" of anything else.   After all,  99/100ths is a fraction.

Mon, 09/05/2011 - 14:16 | 1635146 akak
akak's picture

Your comment is 99.44% pure.

Mon, 09/05/2011 - 09:50 | 1634121 theotheri
theotheri's picture

The bias in this article is a joke. Gold Core telling you to buy more Gold because the Chinese are going to corner the market- but not tell anyone!!

Fucking pathetic pumpers. Zero Hedge, Infinite Agenda. Pump the barbaric relic with no dividend.

Full Disclosure- nine figure unlevered prime (huge barrier to entry) real estate portfolio, pays me to wait for the next pull back. Gold is Bubble.

Mon, 09/05/2011 - 10:28 | 1634310 jekyll island
jekyll island's picture

I'll come by with my gold to buy your "prime real estate" for 90% off when you realize you are overweight in the second largest bubble the world has ever known and need some liquidity.  Stupid troll.  You are such a dumbass that you do not even know the comment about the barbarous relic was referring to the gold standard, not physical metal stupid shit.  At least you will be able to grow food on your land, hope you plan on holding it for a long time.  

Mon, 09/05/2011 - 10:43 | 1634378 Xibalba
Xibalba's picture

mark to market your portfolio pls.  then revise your 'figures'.

Mon, 09/05/2011 - 11:00 | 1634452 theotheri
theotheri's picture

I mark to market daily. Can't believe the low cap rates people pay for prime real estate. Could be because it's safe and pays a yield. It's th real safety hedge. Not like your useless nuggets. It's shelter. Nothing more basic.

And if drops 50%......I buy more because I'm unleveraged. I've only been doing this for 40 years.....I probably don't know what I'm doing.

I bought gold at $500 in the 80's and sold at $700. Same thing happening now.

Mon, 09/05/2011 - 11:12 | 1634505 Libertarians fo...
Libertarians for Prosperity's picture



Don't be such a douche bag.  How's your GS doing that you bought in early August?


Mon, 09/05/2011 - 11:43 | 1634590 theotheri
theotheri's picture

Bought on the dip, sold on the spike. Haven't followed it since.

Gold is going to get crushed like every other bubble.

Mon, 09/05/2011 - 12:29 | 1634743 RockyRacoon
RockyRacoon's picture

Your definition of "bubble" may be different from some others.  An incorrect definition can cause havoc in a portfolio of assets.   BTW  Real estate has counter-party risk: government zoning law and taxation.  It also lack the feature of portability which is a basic element in a wealth conservation plan.

Mon, 09/05/2011 - 12:45 | 1634802 Libertarians fo...
Libertarians for Prosperity's picture




And you think I believe that?  That you timed the market absolutely perfectly, caught a falling knife at the perfect moment on August 8th and flipped it for a measly 1% or so a few hours later?   

Listen up, foolio...

I told you to stop being a douche bag, and you kicked it up a notch. The last thing ZH needs is another wannabe oligarch with grandiose claims of having a hundred million dollar real estate portfolio in NY, SF, LA, etc., and the ability to day trade better than the best vacuum tubes in Greenwich.  Anyone can make unverifiable claims to a bunch of strangers on the internet.  If your ego needs validation and you can't get it from your family, friends and career, try a 1-900 chat line.  ZH isn't the place for it.

Mon, 09/05/2011 - 11:27 | 1634532 Beam Me Up Scotty
Beam Me Up Scotty's picture

Wait till they jack your property taxes up to infinity and beyond.  They'll own your prime real estate for free.

Also, good luck keeping the cold and hungry zombies out of whatever you own.  You have the resources to protect every peice of real estate you own?  My parents have a couple cabins, and I was telling them, you can write those off, there will be people squatting in those for sure if the SHTF--and the squatters won't be paying the property taxes either.  Even if you own bare ground, can you take physical possession of it?  Or will there be a tent city on it?  Possession is 90% of ownership if the SHTF.  Good luck to you and your 9 figure portfolio.

Mon, 09/05/2011 - 11:39 | 1634571 obelisks
obelisks's picture

and who is going to be around to pay your rent when the shit hits the fan ? What will your return be then?

Mon, 09/05/2011 - 11:46 | 1634601 theotheri
theotheri's picture

Whereas I see continued weakness in the global and specifically US economy and the risk a significant and prolonged recession, you see the destruction of western civilization. My view of the future is way more fun, trust me on that.

Mon, 09/05/2011 - 12:04 | 1634674 DoChenRollingBearing
DoChenRollingBearing's picture

Even though I think you are wrong, I hope you are right.

Mon, 09/05/2011 - 18:31 | 1636066 jekyll island
jekyll island's picture

Every regime that has abandoned the gold standard eventually had their currency collapse and it took the entire economy with it.  I think your success will be determined by one thing: 

Will the Fed defend the dollar by raising interest rates when inflation hits to the point they cannot whitewash it with the CPI numbers?

If yes, then your reality will be possible.  If no, the dollar will eventually collapse and cause hyperinflation.  In my world gold works with either scenario, outrunning inflation or being driven up by the sheeple fleeing US Treasuries.  Since you have bet the farm on the Bernank,  I have one question to you:  Do you feel lucky, punk? 



Mon, 09/05/2011 - 09:52 | 1634130 phat ho
phat ho's picture

Obviously the fix is in when Elizabeth Warren wasn't considered to head the consumer protection agency. Must. Pave. Way. For. Corporate. Profits.

And really OT: anyone have experience of being harassed/detained shall we say, for carrying cash through airport security? I know you must fill out a form for anything over 10k but if you carry less than that in cash; either in wallet and/or moneybelt what is the best way to go through security? International flight, basically.

Mon, 09/05/2011 - 11:16 | 1634279 thunderchief
thunderchief's picture

SVM....The Rape of Nanking...Same thing as to what the shorts are doing to this stock right now and have been doing to the miners the past year.  

The real silver and gold fight IMO is now taking place in the miners like SVM.   Go in long and strong my commrades.   Burn these shorts.  Scorched earth. 

No Quarter.  Take No Quarter...

Mon, 09/05/2011 - 10:26 | 1634303 Gandalf6900
Gandalf6900's picture

Did they ever stand a chance

Mon, 09/05/2011 - 10:29 | 1634319 Basia
Basia's picture

No Need to declare any money  less than $10,000.  Wear cargo pants with lots of pockets.

Mon, 09/05/2011 - 10:42 | 1634374 yellowbr
yellowbr's picture

Come on Gold Core, it's not China who is the world's largest creditor nation, it's Japan.

Mon, 09/05/2011 - 10:52 | 1634418 DosZap
DosZap's picture


I think maybe they meant largest  SOLVENT Nation,

Because Japan damn sure isn't.

Mon, 09/05/2011 - 11:34 | 1634559 Clint Liquor
Clint Liquor's picture

Yes, Sir. Japan has the highest debt to gdp ratio in the world.

And it's going to get much worse as their demographics suck.

Mon, 09/05/2011 - 12:05 | 1634680 DoChenRollingBearing
DoChenRollingBearing's picture

As do the demographics in China.

Mon, 09/05/2011 - 10:45 | 1634387 mailll
mailll's picture

Even though Lindsey williams talks a lot before he gets to the point, some things that he was told by the Elite was that gold was going to go between $2000 and $3000 dollars an ounce by the end of the year. Oil prices were to go between $150 and $200 a barrel by the end of the year.  Both will start going up starting late August to early September.  He gave this date in June, I believe, but he was told about the prices long ago.  This is their goal. The reason I bring this up is that this article mentions the collapse of the Euro.  Lindsey says that the Elite are going to crash the Euro, and within 2 weeks, destroy the U.S. Dollar.  He says Gold is the currency of the Elite. All this is being planned to bring into play the one world currency (and the eventual digitization of everything, drivers licenses, medical records, credit cards, insurance info, and what ever else they can digitize so that they can squeeze it all onto a chip to be implanted in our "hand or forehead".  "No one will be able to buy or sell without the mark of the beast.") He didn't say the part about digitizing everything, I just added this in.  It seems appropriate here. People should be aware that everything is pointing in this direction. Digitizing everything, and making electronics smaller and smaller. Check this video out.

 He also said last October that a crises is going to break out in the Middle East within 4-5 months.  This was right on.  He said that the reason this crisis was being engineered is to destabilize the whole middle east so that all oil from the middle east will be cut off so that the U.S. congress has no choice but to allow western oil companies to drill wherever they want, especially in Alaska.  This crises is to go all the way to Saudi Arabia. He said a lot of things in the past that were right on so I have no reason to doubt what he was being told.

Mon, 09/05/2011 - 11:00 | 1634450 DosZap
DosZap's picture


Newsflash,this dude was told next time I need a new DL, I would be required to give a retina scan, I said have my SS#, my thumbprint,the FBI has my fingerprints, and a back ground check, and now you tell me I WILL be getting a retinal scan, or no license?.

She said Yes sir, I said with all DUE respect lady, then this is the last time I will ever apply for a DL, and I will drive without a license, and if I get pulled over, I will just pay the ticket.

Cause you,or no one else is scanning my retina.Same for implanting anything anywhere on my ass.(that's the Mark of the Beast), and if you take it, your ass is grass, for eternity.

So thanks, but no thanks.

Mon, 09/05/2011 - 11:41 | 1634580 mailll
mailll's picture

Hopefully more and more people will realize the road they are taking us down. More and more people should research the "Mark of the Beast" in the book of revelation and what happens to all those who receive the mark. Everything is pointing in this direction. 

Mon, 09/05/2011 - 12:09 | 1634687 DoChenRollingBearing
DoChenRollingBearing's picture

DosZap & mailll,

Way to stand up Dos.  I hope that I will do the same when they try that on me.  They have plenty of info on me.

No thanks for a mark of the beast.  If they will not then let me fly, then I will have to find another way to get to Peru...

Mon, 09/05/2011 - 12:34 | 1634775 RockyRacoon
RockyRacoon's picture

There's another reason for owning a small, inconspicuous yet comfortable yacht.   Like you needed one?

Mon, 09/05/2011 - 11:03 | 1634466 Smiddywesson
Smiddywesson's picture

Over the weekend, Zero Hedge picked up on the most recent batch of Wikileaks revelations showing cables from the United States embassy in China to State Department officials in Washington in 2009.

The cable summarizes several commentaries in Chinese news media. One of those commentaries is attributed to the Chinese newspaper Shijie Xinwenbao (World News Journal), published by the Chinese government's foreign radio service, China Radio International. The cable's summary reads:


OK, a super duper secret cable from an embassy is leaked to the media and we are told that it is going to inflame the gold markets? BUT, the cable just summarizes something some Deputy Chief of Station heard on the RADIO?  Do you know how much useless intel is typed out each month?  It came from open source reporting.  LOL, it must have been the end of the month and they were hurting to meet their intel production quota.  Did anyone learn anything from this cable that we didn't already know?  

The Fed and the ECB are orchestrating a chew and screw on their enormous debts, and therefore are spending even more ridiculous sums they have no intention of repaying to kick the can and buy gold.  Of course the Chinese are buying gold and lying about it, so is everyone else.  They know they are getting screwed and think they are losing their place as the leaders of the 21st century (i.e., The Century of China).  They are right, they are going to get screwed.  

Mon, 09/05/2011 - 11:11 | 1634500 Smiddywesson
Smiddywesson's picture

 the question is only with regard to how deep the recession is and to the nature of the recession – inflationary, stagflationary, hyperinflationary or deflationary.

It doesn't matter as much to me which of the above we experience.  First, gold will do well no matter which case proves true.  Second, the process will not allowed to continue to its logical conclusion before the Fed and ECB pull the plug and put us on a new monetary system. THEN, I will be very concerned about the nature of the recession, but until then, it's all kick the can and buy gold.

The central banks are not buying gold to hyperinflate the USD to zero.

They are not buying gold to allow a 20 year deflation

They are not buying gold to wallow in stagflation

They are buying gold to create a new system and escape unpayable debt loads and insolvent banks.

Mon, 09/05/2011 - 12:13 | 1634700 DoChenRollingBearing
DoChenRollingBearing's picture

One of the only ways we can fight them is for as MANY people as possible to buy gold.  The more our Middle Class has, the stronger our country and the more we can resist the NWO.

Opt out, buy gold!

The debts are unpayable.  Either default or hyperinflation (latter more likely IMO).

Get some cash FRNs ASAP while you're at it.  Silver too, in case TSHTF, then you have something to spend, while your wealth is held through the rough times...

Mon, 09/05/2011 - 11:11 | 1634501 Clint Liquor
Mon, 09/05/2011 - 12:32 | 1634770 theotheri
theotheri's picture

More evidence of sepculative panic buying. Widespread panic bubble.

Tue, 09/06/2011 - 21:40 | 1640448 Fiat2Zero
Fiat2Zero's picture

This is so lame it's laughable.  I have yet to meet another human being who owns a single ounce of gold (not in jewelry they are planning to sell to "Cash4Gold").  Except at the coin store that is...

When you tell me breathlessly you mortgaged your house to buy 3 ounces, then I'll call the top (you fucking sheep-boy).  And yes, I fully expect you to do this (just be honest and excited about it when you report back to us).

Mon, 09/05/2011 - 12:33 | 1634773 EhKnowKneeMass
EhKnowKneeMass's picture

LOL. Those dumb fucks are running out of reasons.

Mon, 09/05/2011 - 13:49 | 1635020 UncleJonNadler
UncleJonNadler's picture

Nadler Here!!!!! With your daily gold update!!! Recent trends and forecast from the Nadlers crystal ball indicate that gold is poised for a great crash of proportions not seen since 1980!! Gold will be reverting to its mean price of 456 usd in the very near future! The great gold crash of 2011 is in full affect!!!

Tue, 09/06/2011 - 21:37 | 1640440 Fiat2Zero
Fiat2Zero's picture

Que top calling troll flock in 3...2...1

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