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Gold Surges As Market Remembers Definition Of "Dilution"

Tyler Durden's picture




 

Yesterday, when charting the global multi-trillion central bank stealth reliquification (aka the primary driver for the market to surge 20% in the past several months, and since "the market, or Russell 2000 is the economy" just as the ChairSatan, to result in what naive commentators define as an economic bounce), we said "As a reminder, when gold was at $1900 last summer, central banks had pumped about $2 trillion less into the markets. We expect the market to grasp this discrepancy shortly." With gold about $30 bucks higher, the market is finally starting to "grasp it", and is now back to $1755, as silver passes $34. 

Gold is this:

Because of this:

And this:

And much more is coming.

 

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Tue, 02/21/2012 - 11:36 | 2180894 resurger
resurger's picture

Paul Krugman said "Why would i buy gold at Tops!"

 

Tue, 02/21/2012 - 11:39 | 2180902 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Soros said, "Gold iz zee ultimate baubble!"

Ultimate - Definition:

http://www.merriam-webster.com/dictionary/ultimate

Tue, 02/21/2012 - 12:30 | 2181146 0z
0z's picture

Bubble: A bull market in which I don't have a position.

Tue, 02/21/2012 - 13:06 | 2181314 GetZeeGold
GetZeeGold's picture

 

 

16 trillion deficit may have something to do with that bubble.

 

 

Tue, 02/21/2012 - 13:17 | 2181353 DoChenRollingBearing
DoChenRollingBearing's picture

16 trillion is the debt, no?

Tue, 02/21/2012 - 14:02 | 2181484 GetZeeGold
GetZeeGold's picture

 

 

Well sure.....that's what I meant to say! Heh heh.....you got me there doc. ;-)

 

 

Tue, 02/21/2012 - 13:16 | 2181350 DoChenRollingBearing
DoChenRollingBearing's picture

@ 0z

+ 1 for just the moniker, + 2 overall.

But, I hear you re me never seeming to be in a Bubble on the way up...

Tue, 02/21/2012 - 14:02 | 2181488 xela2200
xela2200's picture

The difference is that Soros says it is a bubble, so he can buy yours.

Tue, 02/21/2012 - 11:51 | 2180942 Quinvarius
Quinvarius's picture

In 1913 every $50 of national debt was backed by one ounce of gold in the Treasury.  Today every $50,000 of national debt is backed by one ounce of reported gold in the Treasury.  Based on that metric, in 1913 Dollars you are getting gold at about $1.75 an ounce.  I question his definition of a top.

Tue, 02/21/2012 - 11:55 | 2180960 He_Who Carried ...
He_Who Carried The Sun's picture

What goes up, must come down.

 

Short the EUR/USD or CHF/USD (I prefer) is much more lucrative...

...and this blog is about making money, right? Right?

Tue, 02/21/2012 - 12:06 | 2181043 Quinvarius
Quinvarius's picture

There is no market in FOREX.  Those rates are agreed upon and set by central banks.  If I was stupid enough to bet in that market, I'd continue to say the same thing I said when the EUR was at 1.27--They are taking it back up to 1.50 like they always do.

Tue, 02/21/2012 - 23:38 | 2183289 arsenal009
arsenal009's picture

I shorted the Yen against the Dollar last Wednesday when the BoJ announced they were going to purchase $180 Billion worth of assets.  Worked alright for me...

Tue, 02/21/2012 - 12:48 | 2181247 midtowng
midtowng's picture

Actually no dollars are backed by gold in the Treasury.

Tue, 02/21/2012 - 15:08 | 2181671 debtor of last ...
debtor of last resort's picture

Then why is it called treasury?

Tue, 02/21/2012 - 11:50 | 2180946 HoofHearted
HoofHearted's picture

Paul Krugman doesn't know his ass from a hole in the ground. What does he know of tops or bottoms? Remember, he supported our Nobel Laureate in Chief, too.

Freegold, freesilver, and Ron Paul!

Tue, 02/21/2012 - 12:04 | 2181030 resurger
resurger's picture

Amen Hoof!

P'one

Tue, 02/21/2012 - 12:52 | 2181267 EscapeKey
EscapeKey's picture

Krugman is just another shill, who always words himself in a such way, he can later claim his apparent position on an issue was in fact "misunderstood"; aka the man is spineless.

Of course, that those of us who "misunderstood" read articles where he recommended starting QE programs to the tune of $8-10tn, building lots and lots and lots and lots of roads to nowhere, but at the same time make sure public debts "didn't become excessive". An extra 50+% debt/GDP apparently isn't excessive.

Tue, 02/21/2012 - 12:31 | 2181147 William113
William113's picture

Hope and Change (_*_)'s

Tue, 02/21/2012 - 11:37 | 2180895 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold, bitchez!

Tue, 02/21/2012 - 11:51 | 2180956 machineh
machineh's picture

PSI, bitchez! Has Ben got a deal for you:

Exchange your gold for plated tungsten with 30% of the value, to be doled out over 30 years.

Proposed name: the Roosevelt Plan, complete with Collective Action Clause (a vote of Congress obliges all holders to swap).

Tue, 02/21/2012 - 13:22 | 2181370 DoChenRollingBearing
DoChenRollingBearing's picture

@ Mr Lennon

+ 1 of course

 

Physical gold & silver only.  'less of course you are a speculator rather than a saver.

Tue, 02/21/2012 - 11:36 | 2180896 SHEEPFUKKER
SHEEPFUKKER's picture

Hasta la vista paper whores. 

Tue, 02/21/2012 - 11:50 | 2180944 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The gold and silver charts are long overdue for a breakout.  I do think it will take a few more weeks for them to gather the steam to breakout.  I am looking at silver breaking out in about 2-3 weeks.  The breakout price is $36.  Once silver breaks $36 it should move to $42 before getting caught range bound.

Gold will of course break its nominal high around that time, $1880, and hoot to abouts $2200, before it gets caught rangebound.

The dates I am looking for are the breakout starting on March 5th, and finishing March 19th.  Then of course fundamentals take over once again.  If Greece defaults its debt payment on March 20th (it won't and the bonds will be rolled) then PMs will go sky high.  Most likely the bonds will be rolled (thanks in large part from MF Globals rehypothecated sub accounts being wired to JPM - yes, that is what those funds will be used for, to support the Europonzi) and PMs will find a range for a month or so before taking off upwards again.

We are at a point where I do not see another significant pullback coming for awhile though.  Gold would need to move above $2500 to correct to $2200, and silver would need to test $50 before pulling back to $44.

Tue, 02/21/2012 - 12:18 | 2181094 Likstane
Likstane's picture

Mr.L H -"Then of course fundamentals take over once again"  Really?  The bedrock fundamental truth that an imaginary number of fiat FRN's somehow is a representation of the true worth of gold.  Are you some kind of advisor to GS? I'd rather ask my dog what she thinks.

Tue, 02/21/2012 - 12:20 | 2181098 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Then don't read my posts.

Tue, 02/21/2012 - 12:24 | 2181118 Likstane
Likstane's picture

Piss up a rope!

Tue, 02/21/2012 - 12:46 | 2181236 RockyRacoon
RockyRacoon's picture

Don't go looking for trouble.  Cheeky would have ripped you a new one by now.   I'm just not up to his standards.

Tue, 02/21/2012 - 13:18 | 2181362 gmrpeabody
gmrpeabody's picture

"Piss up a rope!"

If I were you (and thank God I'm not)..., I would practice reading and comprehension before posting.

Tue, 02/21/2012 - 11:53 | 2180970 john39
john39's picture

the irony is that the banker cabal is fully aware that fiat will collapse, and no doubt has socked away enough gold to buy the world four times over.  its all a matter timing and perception.  after the fiat world burns, they will own any productive asset worth owning.  and the masses will officially return to serfdom.

Tue, 02/21/2012 - 12:07 | 2181046 prole
prole's picture

That would be an improvement from slavery

I don't know how we could get any worse from the current state of slavery in which we live (besides .gov emloyees or 'overseers')

I suppose if they physically put us in cages and raped us. Maybe they'll wait a few years and introduce that at airports.

Tue, 02/21/2012 - 12:45 | 2181232 Zero Debt
Zero Debt's picture

Troops march on the White House for Ron Paul: http://www.youtube.com/watch?v=OHAnGCsSkQU

Recently I have been pondering the possibility that there will be a rise of mutiny and disobedience in the US military if the troops see no hope that the strategy will change. It goes beyond me why they should be fighting abroad when the enemy is domestic and most of the "missions" makes no strategic sense and actually weaknes the US.

When you see more and more videos of soldiers in uniform expressing their dissatisfaction (actually they are not allowed to do that, so it's a light form of mutiny), you have to start wondering what the intellectual undercurrent is of that.

 

Tue, 02/21/2012 - 13:24 | 2181378 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1 for interesting comments on our military.

Our Constituion, bitchez!

Tue, 02/21/2012 - 15:24 | 2181739 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

The US military will never act against a legitmate government. As much as I dislike the current administration they are in power legally.

The men and woman who work each day to keep us free and safe respect the Consitiution, as quaint as that may sound, and will never do anything to destroy it.

It is up to the non-military citizens to create the change needed to right the mess in Washington. 

Tue, 02/21/2012 - 17:13 | 2182252 DosZap
DosZap's picture

fxrxexexdxoxmx

the current administration they are in power legally.

The Military Oath is to the Constitution, first and foremost.

The current administration, is subject to removal by force if they start issuing illegal(anti Constitutional Orders), by the Military.

THAT is their first priority.

Tue, 02/21/2012 - 12:34 | 2181155 mc_LDN
mc_LDN's picture

5 Lessons of Global Babylonian Banking Cartel Ponzi Schemes

Lesson 1 Engineer financial instruments that no-one can understand.

Lesson 2 SELL SELL SELL (said financial instruments)

Lesson 3 Buy everything with profits - Countries, Governments and Companies. There is nothing and no-one that cannot be bought. 

Lesson 4 Install Banking Cartel Mafia into all financial levers and positions of power

Lesson 5 Use bought Media for Propaganda to LIE LIE LIE. Importantly do it while smiling - "Gold is not money"

--------- ONLY REFER TO BELOW IF LESSONS 1 - 5 FAIL -----------------------

Lesson 6 Having exhausted last 5 Lessons with failure ensure escape routes. Hoard PMs and Commodities like a mofo and when everything has gone kaput rise like a phoenix off the ashes.

Lesson 7 If having applied Lessons 1 - 6 results in failure ensure escalation to DEFCON 5 - the final hedge - TOTAL WAR.

 

 

Tue, 02/21/2012 - 12:57 | 2181283 engineertheeconomy
engineertheeconomy's picture

Quadrillion dollar question is which country will go back to the Gold Standard first? Will they allow it outside of their country? Obviously they will not accept paper for it, but will they accept petroleum?

Tue, 02/21/2012 - 11:37 | 2180897 catacl1sm
catacl1sm's picture

"Gold and Silver, Silver and Gold!"

Tue, 02/21/2012 - 11:39 | 2180905 SHEEPFUKKER
SHEEPFUKKER's picture

Platinum doesn't suck either. lol

Tue, 02/21/2012 - 12:14 | 2181076 urbanelf
urbanelf's picture

I see your point and understand your position on platinum, but have you ever considered that GOLD, BITCHES?!?!?!

Tue, 02/21/2012 - 13:27 | 2181387 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Platinum is my favorite as well.  Pt prices are creeping up on gold over the past couple of days.  And Pt Eagles are HARD to find.   Plenty of Pt Nobles, but I would rather have the Eagles.

Tue, 02/21/2012 - 11:38 | 2180898 gdogus erectus
gdogus erectus's picture

Some kind of a Pavlovian response to say... say... don't say it.... SILVER BITCHEZ!

 

edit - oh, nevermind - hendrix beat me to it

Tue, 02/21/2012 - 11:41 | 2180909 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's ok.  Here, have a podcast.

TFMR interviews John Williams of Shadowstats.com:

http://www.tfmetalsreport.com/podcast/3339/tfmr-podcast-12-john-williams-shadowstatscom

Tue, 02/21/2012 - 11:43 | 2180913 monopoly
monopoly's picture

At the very least it will get rid of the trolls that never contribute financially to this site for a day. But this cannot last, because Robot told us so. 

:)

Tue, 02/21/2012 - 11:59 | 2180919 JohnKozac
JohnKozac's picture

 

 

¡ Cómo es barbárico !
Tue, 02/21/2012 - 11:44 | 2180920 engineertheeconomy
engineertheeconomy's picture

Palladium

Tue, 02/21/2012 - 12:01 | 2181016 JohnKozac
JohnKozac's picture

 

 

¡ paladio, cómo es barbárico tambien!

Tue, 02/21/2012 - 13:06 | 2181315 engineertheeconomy
engineertheeconomy's picture

"barbarico" is what the bankers are doing to the good people of greece. Hijo de su puta madre JohnKozac

Tue, 02/21/2012 - 12:10 | 2181057 Deo vindice
Deo vindice's picture

@engineertheeconomy

I keep hearing about Palladium but as a relatively newcomer to the whole PM concept, I am wondering how Palladium does in a recession / depression.

Tue, 02/21/2012 - 12:46 | 2181238 mick_richfield
mick_richfield's picture

Platinum and palladium are not precious metals.  They are expensive industrial metals.

Tue, 02/21/2012 - 13:10 | 2181331 engineertheeconomy
engineertheeconomy's picture

Do you research before investing, PM's are for the long term, never invest more than you can afford to lose. Having said that, the 5 PM's are Gold, Silver, Platinum, Palladium and Rhodium. They are all used as money legally in some country or another. Paper is only paper, and it's value NEVER goes up over time. Definately get into something physical - Olivia Newton John

Tue, 02/21/2012 - 13:28 | 2181390 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

I like palladium too.

Tue, 02/21/2012 - 11:46 | 2180923 the grateful un...
the grateful unemployed's picture

i recall the inverted logic of stock dilution in the 90's. the more stock the higher the price of the stock went. their logic was superb, with a larger float holding the stock of that company was actually easier. the logic from a hedge fund managers perspective is that you didn't want to own too much of something, because the exits can get very crowded. by increasing the volume of stock certificates that stock was suddenly too large to fail!

now i suppose owning any sort of fiat demands that we dilute the amount so that runs on the bank and such are never going to happen! why would there be a run on the bank, we're printing more certificates, and by making them sell proof the value must therefore increase.

as an addendum to the bob prechter jaguar story, what happens when everyone has two jaguar cars? the short answer is they don't want anymore, the long answer is, there's no place to sell them either. the market can never go down, keep making more jaguars!

Tue, 02/21/2012 - 11:46 | 2180924 yabyum
yabyum's picture

34 bones has been a real ceiling for silver, lets see it stay above and climb that figure. It is time to hug your local coin shop owner.

Tue, 02/21/2012 - 11:47 | 2180929 RagnarDanneskjold
RagnarDanneskjold's picture

China cuts reserve requirements: is it too late?

http://investinginchinesestocks.blogspot.com/

Deflation is now settling in. The big question is how bad is the real estate slowdown? If the optimists are right, the sector will stabilize in the second half and central bank easing will help spur growth to offset negative shocks. If it's bad, the PBOC is behind the curve and more serious deflation will follow. Then the money spigots will open and we'll really see some inflation accompanied by currency depreciation (unlike the brief dip in late 2011). Then we may see a China gold frenzy that puts the past two years to shame.

Tue, 02/21/2012 - 12:03 | 2181027 JohnKozac
JohnKozac's picture

 

 

¡cortes de tipo de interés, cómo es barbárico!

Tue, 02/21/2012 - 11:47 | 2180932 BeerBrewer09
BeerBrewer09's picture

Can someone explain to me what central bank bond holding will accomplish? hope to accomplish?

Should I assume they are buying their own bonds?

Tue, 02/21/2012 - 11:51 | 2180951 mayhem_korner
mayhem_korner's picture

 

 

Will accomplish = currency debasement, massive inflation, and uber civil unrest

Hope to accomplish = defer above until they are out of office

Tue, 02/21/2012 - 11:49 | 2180938 Shizzmoney
Shizzmoney's picture

Gold is the new 401K.

That is, if the US Government doesn't hold a gun to your head and take the shit, first.

Tue, 02/21/2012 - 11:54 | 2180973 Kali
Kali's picture

If they even try to do that, I have a gun I can point right back.  They will have to pry either from my cold dead hands.  Remember the Bugs bunny cartoons where Fudd would pull out a rifle, then Bugs would pull out a bigger one, then Fudd a bigger gun, then the cannon get rolled out?  Ha, ha.  This is gonna be some crazy shit this week!  Yeeha!

Tue, 02/21/2012 - 12:03 | 2180974 Kali
Kali's picture

oops dupe

Tue, 02/21/2012 - 11:55 | 2180978 HoofHearted
HoofHearted's picture

Most of us with that kind of 401K also have an AK, an AR, and other kinds of high velocity deliverance mechanisms...

Tue, 02/21/2012 - 12:33 | 2181163 dhengineer
dhengineer's picture

OOOOH, gosh, my "401K" was in a back-pack in the back seat of my car and I forgot to lock the hatchback when I went in to buy some groceries... Somebody grabbed it and took off.... I didn't call the cops because my insurance wouldn't have covered it anyway... sorry, officers, I just don't have it anymore...

Tue, 02/21/2012 - 11:50 | 2180947 KingdomKum
KingdomKum's picture

we few, we happy few, we band of silver holders  !

Tue, 02/21/2012 - 11:51 | 2180955 mayhem_korner
mayhem_korner's picture

 

 

We are our own 1%

Tue, 02/21/2012 - 11:50 | 2180948 Kali
Kali's picture

Hold on to your big yellow Turd Ferguson hats!  Is reality finally setting in?  Will the great runup finally begin?  PMs bitchez!

Tue, 02/21/2012 - 11:53 | 2180965 mayhem_korner
mayhem_korner's picture

 

 

Patience, young Skywalker.  Patience.

Tue, 02/21/2012 - 12:02 | 2181018 Kali
Kali's picture

4 years ain't enough?  Shit, this farce has gone on long enough.  (not young, not a Skywalker, BTW)  At some point the bullshit can be smelled by everyone, we are getting close, smells like an outhouse.  C'mon, haven't had much else to be happy about for awhile. : )

 

As one vulture said to the other:   Patience my ass, I'm gonna kill something!  (I am on a real cartoon thing today, Looney Tunes!)

Tue, 02/21/2012 - 13:25 | 2181383 Chump
Chump's picture

No way.  Joe 6-pack doesn't want to smell the bullshit, and all he sees in the news is a nice downward trend in unemployment and DOW 13K.  Winning.

But on the bright side, you can keep on piling up the PMs, ammo, and foodstuffs while we wait for inevitable crunch.  Time is a gift.

Tue, 02/21/2012 - 11:52 | 2180958 rsnoble
rsnoble's picture

Where would you guys recomend buying silver from? In physical form not pieces of paper.

Tue, 02/21/2012 - 11:56 | 2180990 HoofHearted
HoofHearted's picture

Anywhere you can. I prefer cash exchanges from local coin shops, on craigslist, or whatever. You can also buy online,but you leave a paper trail. Most of us who have done that also seem to have hd terrible boating accidents involving our precious, so maybe that is not completely recommended....

Tue, 02/21/2012 - 12:16 | 2181082 prole
prole's picture

I don't know about pm transactions on craigslist.  Too easy to set yourself up for some kind of scam, theft or ~murder~ there be monsters

Your local coin shop might dip into you for a little profit, but he usually won't kill you

Tue, 02/21/2012 - 12:25 | 2181122 rumblefish
rumblefish's picture

out of curiosity, what is your primary concern on paper trails? Are you concerned with the gov't using the data for confiscation?

Tue, 02/21/2012 - 11:59 | 2180999 BeerBrewer09
BeerBrewer09's picture

I like my local coin shop. I pay cash, they ask no questions, no paper trail, etc. They only charge $1-2 per ounce commission.

There was a shortage of silver when it dipped, but now the junk silver buckets were full. You should have a nice selection available at your shop. If you want to spend big money, buy a monster box online.

Tue, 02/21/2012 - 11:59 | 2181005 Clint Liquor
Clint Liquor's picture

I like these folks:

http://www.coloradogold.com/

 

 

Tue, 02/21/2012 - 12:53 | 2181265 RockyRacoon
RockyRacoon's picture

Where would you guys recomend buying silver from? In physical form not pieces of paper.

You should first outline the form of silver you want to hold.   100oz bars, junk silver, bullion coinage (Eagles, Maples, Onzas, etc), and the amount you want to spend.   All these are variables that affect your choice of seller.   I could offer suggestions but not without a narrowing of the objective.

Tue, 02/21/2012 - 11:52 | 2180959 Kaiser Sousa
Kaiser Sousa's picture

Gold is in a bubble...Silver too...

spread the news....

disclaimer: im still stacking biatchez!

 

Tue, 02/21/2012 - 11:54 | 2180977 MrMorden
MrMorden's picture

Paper, bitchez.  Oh...nevermind.

Tue, 02/21/2012 - 11:56 | 2180985 Bazinga
Bazinga's picture

The gold/silver ride will continue to be bumpy as it has always been.If you have been buying physical for a while,  just enjoy the ride!

Tue, 02/21/2012 - 11:58 | 2180994 PaperBear
PaperBear's picture

The Kitco webpage for the gold price is having trouble refreshing, I wonder why.

Tue, 02/21/2012 - 11:58 | 2180997 Trader47
Trader47's picture

$5000 GOLD coming to a Theatre near you in 2015

Tue, 02/21/2012 - 14:54 | 2181622 Uchtdorf
Uchtdorf's picture

Nah, the system will implode before it gets there.

Tue, 02/21/2012 - 11:59 | 2181004 monopoly
monopoly's picture

Need to mention something here. My wife watches TV, I gave up on it a couple of years ago. But I pay attention when the news channels she flips back and forth to report what they think is "news". Now the rise in oil prices and gas that we all feel at the pump. They talk about Iran, geopolitical stress, refinery outage as the reasons for the rise in prices. This is true, but they never mention the real reason for our inflation and price increases which is just beginning. The absurd, insane policies of the fed and our govt. Not once do they mention the 15+ trillion in debt, soon to be 16, then 17 Trillion. 

MSM just refuses to be truthful with citizens. And this will not change. That is why we have to look for the truth elsewhere. I think here is a good place to start.

And from ShadowStats. If inflation is measured in real terms, prior to 1980, when oil and food mattered, before all parameters changed, which of course we need little of now. Real inflation, 10.5%. That is fact.

But I still do not short this market. Liquidity has to go somewhere, but I am watching those bonds. Tempest in a storm?

Tue, 02/21/2012 - 13:36 | 2181419 Panafrican Funk...
Panafrican Funktron Robot's picture

Bonds are the intermediary vehicle for stock liquidity, so as long as fresh fiat is pumping into the system, there's no reason to think bonds or stocks are really going to drop all that much, at least on a nominal basis.

Tue, 02/21/2012 - 12:01 | 2181015 Kaiser Sousa
Kaiser Sousa's picture

"Today, a 1% interest rate on a checking account is a pretty good deal. They can be found, but they’re often available from local banks and are prone to change. In fact, I’d suggest that a 0.5% interest rate on a checking account, given the current state of interest rates, is something to be happy with. Why is that so important?

Well, let’s say you maintain an average balance of $2,000 in your checking account throughout the year. Just for keeping that account open, the bank gives you $10 over the course of the year. You don’t have to do anything to get that ten dollars. Just keep your account open with that average balance and you’re good. Now, that seems like a relatively small amount, but the key thing is that you don’t have to do anything to collect it. If you choose a bank that offers some form of interest checking, you’ll simply get the money slowly throughout the year simply for having the account open. Interest on a checking account is a perfect example of what I think of as “effortless money.” It’s one of those things that, once you’ve made an initial decision or take an initial action, it continues to either earn you money or save you money in the future."

http://www.csmonitor.com/Business/The-Simple-Dollar/2012/0220/A-checking...

hee, hee, hee....with effortless money, who the fuck needs Gold and Silver....

Tue, 02/21/2012 - 12:17 | 2181086 Deo vindice
Deo vindice's picture

So that $2,000 gets you $10 at the end of a year.

And now your $2010 is worth about ... oh ... $1800 - $1850 due to inflation / cost of living increase.

What a plan.

Putting your money in a bank is like buying a guaranteed depreciating asset.

Tue, 02/21/2012 - 12:45 | 2181229 Deo vindice
Deo vindice's picture

Well, we know that at least ONE banker must read these posts.

Doesn't change the fact that banking your money is a losing proposition.

Tue, 02/21/2012 - 14:00 | 2181480 the grateful un...
the grateful unemployed's picture

deprecaiting and occasionally disappearing asset. if only you could believe that assets values didn't a long way to fall would you dump your paper and buy them, but anyone who buys a house, or a car, or even a block of gold is only likely to see those asset values fall further, with the cost of holding all those things substantial, reverse dividends.

Tue, 02/21/2012 - 12:47 | 2181240 DosZap
DosZap's picture

Kaiser Sousa

Where you kicked out of junior high?

You think making 1%, or .5% is a deal?...........when the rate of inflation is over 10%,your only losing your ASS.

Tue, 02/21/2012 - 12:56 | 2181275 RockyRacoon
RockyRacoon's picture

Ain't it funny how gold "returns" enough in appreciation to remain essentially flat.  Hey!  We've just defined STORE of VALUE.   Some folks just don't get how that works.

Tue, 02/21/2012 - 13:56 | 2181468 Kaiser Sousa
Kaiser Sousa's picture

apparently many here didnt bother to notice my first comment above on this story...

who would have thought omitting a "sarcasm off" notation would have garnered such swift and errant criticism...

been stacking both Ag & Au for a very long time...chill the fuck out and pay closer attention...

jeez

Tue, 02/21/2012 - 23:00 | 2183206 prole
prole's picture

I got your post (MAx) Keiser.

Wherefore are these dweebs downvoting a good post ridiculing the pretend "interest" paid on depreciating paper?  (depreciating for the time being ... .then it's gone)

Tue, 02/21/2012 - 13:56 | 2181469 the grateful un...
the grateful unemployed's picture

helluva world the only place your money is safe in you mattress, and inflation is running double digits?may i have a little risk premium please, sir?

Tue, 02/21/2012 - 13:51 | 2181453 Panafrican Funk...
Panafrican Funktron Robot's picture

Apparently the writer of this article doesn't understand the liquidity of ETF's, nor the ease in investing in said vehicles.  

Tue, 02/21/2012 - 12:02 | 2181019 Miss Expectations
Miss Expectations's picture

Colorado bill would legalize gold, silver currency

http://www.cbsnews.com/8301-500395_162-57381340/colo-bill-would-legalize...

Tue, 02/21/2012 - 12:13 | 2181072 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I like this guy, Colorado Bill.  He has a cool name, too. 

Tue, 02/21/2012 - 12:11 | 2181056 HungrySeagull
HungrySeagull's picture

Gaws, it's been range fed long enough. Move em dawggie out!

Pull a string, make the world safer. Push a string and make the world poorer.

Tue, 02/21/2012 - 12:11 | 2181062 rumblefish
rumblefish's picture

other way please...i need a dip to buy more ASE's!

Tue, 02/21/2012 - 15:32 | 2181776 HungrySeagull
HungrySeagull's picture

Fuck that. Grow a pair, sell a little at top, when it drops if ever, buy the dip then.

Or stop going to the tittie bar so much and start shoving into Metals.

Tue, 02/21/2012 - 21:34 | 2183052 deeznutz
deeznutz's picture

Am I doing it wrong if I am bringing ASEs to the tittie bar to put into bikini straps?

Tue, 02/21/2012 - 12:16 | 2181081 user2011
user2011's picture

But Market forgot the fine print "manipulation".  

 

BTW,  with the oil hitting 105,  I wonder when will CME raise margin on the oil.    Obama need to suppress oil price to boost Consumer confidence.    And they need to suppress the price of oil prior to invasion.

Tue, 02/21/2012 - 12:25 | 2181107 Shizzmoney
Tue, 02/21/2012 - 12:31 | 2181152 SillySalesmanQu...
SillySalesmanQuestion's picture

DJA crosses 13,000 for a few milliseconds and the morons at CNBS go wild in circle-jerk, pagan worshipping to the all mighty capitialism god of ignorance.

Tue, 02/21/2012 - 12:45 | 2181231 user2011
user2011's picture

Nah, they are not ignorant... They are paid to pump. 

Tue, 02/21/2012 - 12:52 | 2181198 Bill Shockley
Bill Shockley's picture

At my local coin shop you can buy pre 1965 US quarters loose in a plastic sandwitch bag for 75% of spot calling four quarters an ounce.

http://en.wikipedia.org/wiki/Quarter_(United_States_coin)

 

4x1.75=7 USA quarters for the ounce spot price or silver ounces in bar form traded(think I did the math right).

Most people recognize pre-1964 quarters and know they have extra value.

Few realize they are worth $5usd today more or less

Just saying.

Get quarters and get a life.

I need some ammo.

   bill

Tue, 02/21/2012 - 15:34 | 2181795 HungrySeagull
HungrySeagull's picture

Sheeit and the coin ops got all of my Quarters.

Wow, pretty ferengi thinking on the part of those in power...

Tue, 02/21/2012 - 17:19 | 2182280 DosZap
DosZap's picture

Bill Shockley

Bill,

And would you share this good news with us?.

I would like to buy some of those quarters.

Tue, 02/21/2012 - 14:23 | 2181546 Matt
Matt's picture

Are margin hikes on gold and silver futures more closely tied to price or warehouse inventory? Is there any method to anticipating when they will strike next?

Tue, 02/21/2012 - 14:48 | 2181607 devo
devo's picture

Damn, I listened to Gartman.

/sarc

Tue, 02/21/2012 - 15:33 | 2181789 HungrySeagull
HungrySeagull's picture

Futures = Imaginary Friends with Money.

Paper shares = Burn to keep warm while waiting for the money.

Take physical and forgetaboutit.

Tue, 02/21/2012 - 15:45 | 2181851 split4to1
split4to1's picture

ZH had it right this is a gold rush one we can all learn from that will continue Gold Rush 

Tue, 02/21/2012 - 16:31 | 2182030 SILVERGEDDON
SILVERGEDDON's picture

Paper sucks, you Wall Street fucks! I'll see you vampires in the sun, with my loaded silver gun. Yer goin' down in flames, from Lower Manhattan to the Thames. Your paper is I know not where, I'd rather shit my underwear! For, be there bull, or be there bear, silver is the suit I wear! (With gratitude, and apologies to Dr. Seuss.)

The only paper I own is the stuff I wipe my ass with. Market paper is worthless, because I cannot do a good job of wiping my ass with it. Gold was worth $28.00 an ounce when I was a kid. Silver was worth whatever was printed on the coin you spent. Any one think those days are coming back? All of the lying bum fucking aristocracy of the Age Of Paper Power can burn in their paper suits soonest. I won't even bother pissing on them to put out the flames. I collect gold, silver, lead, copper, real dry powder, food, tools, diesel fuel, and other useful commodities. There is a community of folks all doing the same, so skill sets and extra eyes and hands can guard each others sixes, and "break on through to the other side, break on through to the other side, YEAH "

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sikefeier0728's picture

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