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Gold As A Store Of Value
For those with doubts after a nine-month correction in gold (and especially over the last few days), Brent Johnson of Santiago Capital reminds us that 'nothing has changed'. Starting from the three propositions that: 1) Money is extremely misunderstood; 2) 'Fiat' money is a poor store of value; and 3) Gold is an excellent store of value, Johnson provides, in a little under 10 minutes, a succinct summary of all the reasons to remain long the shiny yellow stuff. As it reverts to being 'the most marketable commodity' once again, with the 'good-as-gold' USD continuing to lose its purchasing power over time, Johnson provides some thoughts on the periods of deflation and how gold plays into that end-game: "If gold were not a good store of value, why do all the central banks of the world store it and hold on to it - even when crises abound?"
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MDB's satire is much more sublime.
It is almost q u i t t i n' t i m e .
Now that is gold. Have good one.
You might put your gold in a bank vault, and even if the bank vault is completely blown up, the gold will still be there, just as it had been prior to the building collapse. You would spend your time digging that gold up and retrieving it from the rubble, much like they did after that fateful day on 9/11.
I would NEVER put my gold in a bank vault because one day they will close and not reopen until your gold is gone! If its in the bank then its the banks gold period
Ha ha! I knew I would get trashed on that one. YOU wouldn't of course, but if you had something like 10 tonnes of gold, a bank vault is the obvious place. And of course, it would get leased out because you want to cover costs. Those are the facts of life.
If I had the kind of $$ to buy 10 tons of gold, I would have my own vault and security.
if stocks do correct in order to get QE3, dont you think gold (and all other PMs will correct as well). after, the price of gold is determined by the paper market. see you gold bugs at 1300.
if stocks do correct in order to get QE3, dont you think gold (and all other PMs will correct as well).
************
You are an especially dumb one who obviously is totally market clueless-
Does this historical chart not prove your ridiculously stupid gold/stock market correlation "theory" ludicrous ?
http://bit.ly/Nif1UM
Ammo make good currency too...
If interest rates were to go up tomorrow and the market tank and the last gasp panic into gold continue driving the price up to 8500 an ounce we would all be doing whatever it took to get our hands on some. Just wait its coming
Except that if real interest rates rise, then holding gold has more opportunity cost, which would tend to put a downward pressure on gold. Gold is generally sensitive to interest rates.
Gold as a mere store of value? HA! Gold is a store of WEALTH. Of course "value connotes a price function" and hence "a market for your gold." And of course who are anyone of us to say "you can do this with your gold but you can't do that."
A skilled man earned one silver dollar per day in olden times. A person earning the minimum wage today for eight hours could buy two silver dollars. Therefore, ergo, silver and gold have not kept pace with wages.
i didn't junk you buzz, but whatever you are on, it must be fabulous!
"silver dollar" = USConstutional definition of 1789? = olden times?
you sure abt the minimum wage back then? link?
you don't appear to have been cloned at least; thank goodness for that!
smoke?
This is comparing apples to oranges. Modern production technology allows more silver/gold/[any_thing_else] to be produced per unit of labor than in "old days."
Before 1933, a silver dollar bought a whole hell of a lot more than $60 (two silver rounds at todays price) does today.
i did a scan after this thing took me over: ok so far...
tyler has been gone today b/c QEII sent him tickets to the big soccer game tonight. luckily, he was able to catch a ship
keep drinking tyler! you da man!
here's what american peons have to look forward to while we're out burning gas, eating, and on safe trips to the liquor and ammo stores this weekend, weather-wiZe, BiCheZ! HPC Surface Analysis/Radar Loop
"I stack, therefore I am."
I only get this stupid gold mail commercial what gives?
it's friday humor you styooopid fuking bear!
wall to wall merit financial commercials at night watching tv, wall to wall ads on the radio every day on the way to work. gold vending machines, people mailing their jewelry across country for cash,
all that's missing is erik estrada
Meanwhile, Fraud Street ramps-up parabolic into the close of a Friday when nobody is paying attention on, well, absolutely nothing and even less volume.
check the volume in xom
when is the last time anyone bought gas, walked to the cashier and tried paying for that gas with gold? try it and see if the cashier accepts it and lets you drive off. idiots.
when is the last time anyone bought gas, walked to the cashier and tried paying for that gas with gold? try it and see if the cashier accepts it and lets you drive off. idiots.
********
Speaking of idiots-
Try buying gas with a master card when all they take is visa-
I suppose you could go to the ATM and withdraw cash and then go pay for it-
You could also go to the coin dealer right across from the ATM and throw down a a silver or gold coin and then-just like the guy with no visa-go pay in cash-
Some of you people are so fucken blinded it bothers me to waste my time with you-
when is the last time anyone bought gas, walked to the cashier and tried paying for that gas with gold? try it and see if the cashier accepts it and lets you drive off. idiots.
Absolutely, somebody finally gets it! For 4,000 years, gold has been the premier money and store of value. So your pithy insults have proven them all to be idiots! King Tut = Idiot! Spanish Empire = Idiots! Wise men who insulted Jesus with a krapy gift like gold = Idiots!! US government who holds 5,000 tons of gold = 5,000 ton IDIOTS!!
Me = IDIOT!
Every Goldbug on ZH = IDIOTS!
Only you 101, only you are the smart one with your faith in paper currency, you stand alone you genius you
"No other commodity enjoys as much universal acceptability and marketability as gold."
- Hans F. Sennholz
Gold Quotes
"In the long run, the gold price has to go up in relation to paper money. There is no other way. To what price, that depends on the scale of the inflation - and we know that inflation will continue."
- Nicholas L. Deak
Quotes About Gold
"If ever there was an area in which to do the exact opposite of that which government and the media urge you to do, that area is the purchasing of gold."
- Robert Ringer
Gold Quotes
"Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money."
- Daniel Webster
Quotes About Gold
"Gold is forever. It is beautiful, useful, and never wears out. Small wonder that gold has been prized over all else, in all ages, as a store of value that will survive the travails of life and the ravages of time."
- James Blakely
Gold Quotes
"As fewer and fewer people have confidence in paper as a store of value, the price of gold will continue to rise."
- Jerome F. Smith
Gold Quotes
"Gold would have value if for no other reason than that it enables a citizen to fashion his financial escape from the state."
- William F. Rickenbacker
A mask of gold hides all deformities.
Gold
Dekker, Thomas
1572-1632 British Playwright
Gold and silver from the dead turn often into lead.
Gold
Fuller, R. Buckminster
1895-1983 American Inventor Designer Poet Philosopher
It is much better to have your gold in the hand than in the heart.
Gold
Fuller, Thomas
1608-1661 British Clergyman Author
Gold! Gold! Gold! Bright and yellow, hard and cold.
Gold
Hood, Thomas
1799-1845 British Poet and Humorist
Gold will be slave or master.
Gold
Horace
BC 65-8 Italian Poet
To have gold is to be in fear, and to want it to be sorrow.
Gold
Johnson
The man who works for the gold in the job rather than for the money in the pay envelope, is the fellow who gets on.
Gold
Johnson, Joseph French
Gold makes the ugly beautiful.
Gold
Moliere
1622-1673 French Playwright
Gold s father is dirt, yet it regards itself as noble.
Gold
Proverb, Yiddish
Sayings of Yiddish Origin
Gold like the sun, which melts wax, but hardens clay, expands great souls.
Gold
Rivarol, Antoine
1753-1801 French Journalist Epigrammatist
A wooden bed is better than a golden coffin.
Proverb, Russian
Be glad today. Tomorrow may bring tears. Be brave today. The darkest night will pass. And golden rays will usher in the dawn.
Bolton, Sarah Knowles
Come, cuddle your head on my shoulder, dear, your head like the golden-rod, and we will go sailing away from here to the beautiful land of Nod.
Wilcox, Ella Wheeler
Sleep
Death is the golden key that opens the palace of eternity.
Milton, John
Death and Dying
Do something every day that you don t want to do. This is the golden rule for acquiring the habit of doing your duty without pain.
Twain, Mark
Duty
Every morning you are handed 24 golden hours. They are one of the few things in this world that you get free of charge. If you had all the money in the world, you couldn t buy an extra hour. What will you do with this priceless treasure? Remember, you must
Unknown, Source
The US Dollar was unpegged from Gold by Nixon due to unfair trade. It was to protect America and the working people against cheap labor. Unfornately the opposite occured.
http://toomuchonline.org/tmweekly.html Check out Portrait of a Lost Decade.
Gold must be close to a bottom now. Here is some ineresting technical analysis on gold. I prefer trading gold with CFD's
Send a bill to Wall Street for what they own you. http://makewallstreetpay.org/
http://confoundedinterest.wordpress.com/2012/06/21/economic-stall-speed-existing-homes-sales-fall-philly-fed-index-falls-most-since-august-2011/ Economic Stall Speed: Existing Homes Sales Fall, Philly Fed Index Falls Most Since August 2011
The beauty is that gold is backed nothing and the USD is backed by the industry & military complex, which may or may not go away at the end of tunnel.
Better yet:
The Truth About Gold
Why You Should Buy Gold Now - Martin Armstrong
http://www.martinarmstrong.org/files/Why%20You%20Should%20Buy%20Gold/index.htm
Zero bitchez.
This is what gold will be worth come IMF SDR's, nothing plus a nominal cost in for industrial use. I would stay away from all miners, etf's, physical etc- sell it or if its not much keep the physical.
I have changed my mind on PM's recently, given the gov't can basically do and change everything it wants to suit the whims of the bankers. Even Switzerland devaluaing their money. Guns being sold to mexico: bang executive privilege, you can shut up now nothing to see american public.Legally you have to accept this scrap/scrip as legal tender now.
If you don't think it can happen how many of you here work for PM's? or get paid in PM's and pay rent, groceries etc?
You are getting stuck with little scraps of paper made from rags right now so I don't see a big leap between re-outlawing PM's again if SHTF.
I think you would be better off with hardcore trade/skill and or barter type items, if you this is what you foresee in the future.
Silver at 18.70 by august. gold at 1310 tops.
I have changed my mind on PM's recently,
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Another one gets tossed off the gold bull-
Seen this happen all the way up--ho hum
http://www.youtube.com/watch?v=eqyUAtzS_6M
While I agree with most I read after 5 years of being aware I still can't get my head around why buying today at 1600 is ok when it looks it's heading to 1300.
Why would the USAGovt deal in Gold .?
They use it to lose money,via the ESF that the treasury Sec gets to use.
Check it out.
USA ESF.......
Totally corrupt to the core.
nice video
Preaching to the choir here, but an excellent presentation nonetheless.
"If gold were not a good store of value, why do all the central banks of the world store it and hold on to it - even when crises abound?"
That says it all.....
The expression, "When you've got the sale, stop selling.", comes to mind.
so far gold is the store of value
if you exchange to it your silver
still waiting for the 60 go/si ratio
to post: "Ooops you've done it again"
big smiles for the guys who bet on
the only index that goes up in these times
:# ;) $)
No way deflation is going to hit hard and dollars will be desired by all.
See it is already happening price of SSD cards down by over 50% in one year the deflationists were right.
http://www.theverge.com/2012/6/22/3109811/ssd-price-stats-cost-per-gb-june-2012
Gold ...Pfffttt
I'd much rather invest my money in obscene bankster bonuses.
It helps them to ease the pain of my losses. They deserve at least that much courtesy from their clients.
Not all paper currencies today are fiat, HKD is not fiat, it is a central bank free, printing free, a banking system with large deposits , large capital adequacy, low loan to value, no gov securities layered in the banks. Technically it is the currency which could switch to Gold first by pegging against Gold as opposed to USD. HKD= best currency in the workd pegged to the worst, the ying and the yang if you will.
Really? when I was there all bills are issued by HSBC its printed on the bills. I don't know as much about the central bank in hk....
Gold has risen in value against EVERY CURRENCY on the planet not just the dollar, so how does the bad little Fed look now. The Fed values it at $42 an ounce. Gold is currently priced at $1600 an ounce, and has been increasing in value each year for the last 11 years.
There is only one stock that has duplicated this performance on the NYSE. ONE OUT OF TWO THOUSAND SEVEN HUNDRED AND FIFTY.
So what does this mean for the working man? You are worthless compared to a piece of metal. Your labor and hard work are worthless compared to this metal.
It is obvious the uptrend will soon become a downtrend, just look at the chart. Practically nothing has increased in value every year like this. It is a total anomally.
What do you do when it decreases? Buy wine watches and art? These things only increase in value because wealthy people need something to justify their wealth and to show off. Hey look I just bought the most expensive painting, I am so much better than you. I made all my money from selling crap to you and now I have a nice old painting, a nice old watch and a nice old bottle of wine. They have so much money they need to buy old things for a lot of money not new things. A painting from 1882 worth 250 million dollars what a laugh. These people with tons of money to spend crack me up. I would love to go to an auction just to laugh in their faces.
US treasury bonds have increased in value every year for 30 years.
If you are a working man your angst should not be with rich people it should be with the gov/central bank which renegotiates your pay every year by devaluing the dollar through increasing the supply of money.
Your post did give some good laughs and for that I say thank you.
As the Dutch say: goudbaren kopen, that is the best way to protect yourself