Grant Williams On The Simplicity Of Owning Gold

Tyler Durden's picture

As we enter a week in which the expectations are high for yet another large expansion of central bank balance sheets, and ever more extreme monetary policy (thanks to the LTRO 2), we thought it appropos to listen to Grant Williams, of the famous "Things That Make You Go Hhhhm" newsletter, explain in its simplest terms, why it is still a good time to own gold. In two excellent and succinct presentations, Williams discusses the 'simplicity' of investing through the last four decades but ends by focusing specifically on the rotation to Gold at the start of the last decade (2000) and why the reason for rotating out of the precious metal has not occurred yet. Seeing the world of Gold as a battle between Too Much and Not Enough (and drawing on global supply, demand, and holdings flow) Williams lays out the reasons for owning gold, and how to know when to cover - as he narrows the five reasons to reconsider Buffett-and-Roubini's Barbarous Relic down to one simple rule - Central Bank Monetary Policy Changes.

Simplicity 1 - An introduction to investing by Simplicitly over the past forty years and making one big decision through each decade - ending with a focus on the current position in Gold and Central bank largesse writ large...


Simplicity 2 - Williams expands specifically on Gold - with key insights on owndership, supply, demand shifts, demographics, and central bank behavior with a succinct summation of reasons to own and reasons to exit that should help many deal with the ebbs and flows.

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fightthepower's picture

But, but, you can't eat gold.

Everybodys All American's picture

Funny you say that ... two store fronts of cash for gold opened up where there used to be places to eat in my neighborhood within the last two weeks.

B-rock's picture

In 1972, 1986 and 2012 a good new Ferrari is around 90 oz. of gold.

Michael's picture

I fear the nation needs 4 more years of Obama to get over that black president thing.

Pladizow's picture

Basically, Mike Maloney's Cycle Investing!

GetZeeGold's picture



You're all a bunch of barbarians....I learned that from watching CNBC.




Thomas's picture

Great presentation of once-per-decade decision making. I, BTW, buy gold from a local coin dealer. When gold was $457 an ounce and I was buying what he had, he said, "Don't you think this is a top?" I asked him how many buyers he had: "Just you." Quite the mania. He now has three buyers: me and two of my friends.

Michael's picture

Pun intended.

See thread post.

DoChenRollingBearing's picture

@ B-rock

+ 1


But, I'd rather have the 90 oz...

trav7777's picture

ferraris don't hold their value like gold these days.

Paradoxically, when F got their cars out of the shit ditch after the 348 (in response to getting blowtorched by the japs with the NSX), their long term collectability went in the opposite direction.  The 355, modena, 430, and now italia are pretty brilliant cars, but really just commodities any longer.

GetZeeGold's picture



60's era Mustangs are still gold.




Al Gorerhythm's picture

You buy a depreciating, destructible, reproducible, high maintainence machine.... with gold?

vh070's picture

And one in my neighborhood mall.  I should've asked for a two-way price.

non_anon's picture

but, But Bennyboy says it's just a tradition

nmewn's picture

"The central banks of the US, Europe and Japan have increased their "assets"...and I use that term under 32% in the last 17 months..." Grant Williams

lol...excellent point Grant.

lolmao500's picture

Seriously, the latest argument from the MSM : you can't burn gold, but you can burn euros to keep you warm... that was their argument when they reported on eastern europe countries burning their money to keep warm in record cold a few weeks ago.

Dead Canary's picture

Sure you can. I do it all the time. Just take the gold foil wrapper off and eat the yummy chocolate inside.

Chuck Walla's picture

And Uncle Warren says Gold is bad.

Stackers's picture

You cant eat Federal Reserve Notes either. Well I guess you could with enough ketchup

engineertheeconomy's picture

in response to "fightthepower" - why would you want to eat your money?

are you too stupid to plant a garden?

fightthepower's picture

I thought people might get the sarcasm.

WestVillageIdiot's picture

Yummy.  Nothing like a gold shake, especially since gold doesn't melt until it hits over 1,900 degrees.  Something tells me that you might have a little heartburn from that one. 

AU5K's picture

actually, you can.  its called 'gold leaf' and occassionally, albeit more rarely these days, featured in high end restaurants.  now please stop posting your ignorant drivel on AU79.

Pinch's picture

I'm 50% in precious metals. I have one ton of silver, and almost more gold than I can carry. It's enough for one man. How about you?

tallen's picture

Nice, do you store it yourself or is it in a vault? I've got 22kg of silver, but I'm only a student so all I've got so far is from working hard on the side from my studies. (Got a couple of stocks poised to gain from a war with Iran too). 

non_anon's picture

I'd recommend storing it yourself, in 2007 the Feds confiscated my silver from NORFED warehouse in ID. I've written to the AG and Judge with no reply and no return of my stolen property by the US Government!

mogul rider's picture

I bought my silver at 4-12 bucks over the last 30 years and inherited a shitload more - sold all my tradebale which is most of it at my target 49.10 (told everyone here too and got flamed). Bought it all back 8 weeks later for I think $26+/ (Don't remember exactly off the top of my head).

Will sell it again at $60-$70. Not sure what my target is yet. It;s amplitude is changing so work needs ot be done. Probably higher who the hell knows. I figure 100 flames on my silver comment shoudl be the next top this year. Then a 61% ass kicking smash.

Have 70 ounces of Gold which I never sell and will accumalate more of. You can buy milk with your silver, I'll buy towns thanks.

Silver is a trade nothing more. It's entirely gamed by banksters, traders, and all their evil twins.


How's that

eddiebe's picture

Wow, you must be really smart.

oddjob's picture

If crowing about magical trades makes you happy, you go girl.

trav7777's picture

there were plenty of people who were top calling at 49.

Others were saying "$60 by next week" and even junking anyone who said to exercise caution.

Let history stand as the judge.

flacon's picture

To be fair to mogul rider, James Dines put in a sell when silver hit $49.... and if you don't know who James Dines is, he's a legend. 

Prometheus418's picture

+1 for the amplitude catch.  Haven't heard it mentioned here yet.  My target is for $75-80 by the end of April.  All bets are off if things go off the rails before then, of course.

Not likely to sell silver in any case, as that is not what I'm doing with it- but it's fun to speculate anyway.  Also helps with the stomach-churning spot price drops.

silvermaister's picture

silver is more precious than gold you retard


theMAXILOPEZpsycho's picture

Mogul Rider is a big fat lier

I know because silver wasn't 26 bucks 8 weeks after the 49 top...more like 5 months

Get your facts in order before you come on here trying to make yourself feel better about your infirior dna

eddiebe's picture

 Wow, you must be really rich. Are you one of the 1%?

Silver Alert's picture

Wasn't that a code used in Star Trek?


"Admiral, if we go by the book, like Lieutenant Saavik, ounces could seem like pounds."


Schmuck Raker's picture

Four perfect trades over 40 years. Is that so much to ask?

[2 of them gold.]