Guest Post: Gold And Silver: We Were Right – They Were Wrong
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Submitted by Brandon Smith of Alt Market
Gold And Silver: We Were Right – They Were Wrong
Only now, after three years of roller coaster markets, epic debates, and gnashing of teeth, are mainstream financial pundits finally starting to get it. At least some of them, anyway. Precious metals have continued to perform relentlessly since 2008, crushing all naysayer predictions and defying all the musings of so called “experts”, while at the same time maintaining and protecting the investment savings of those people smart enough to jump on the train while prices were at historic lows (historic as in ‘the past 5000 years’).
Alternative analysts have pleaded with the public to take measures to secure their hard earned wealth by apportioning at least a small amount into physical gold and silver. Some economists, though, were silly enough to overlook this obvious strategy. Who can forget, for instance, Paul Krugman’s hilarious assertion back in 2009 that gold values reflect nothing of the overall market, and that rising gold prices were caused in large part by the devious plans of Glen Beck, and not legitimate demand resulting from oncoming economic collapse:
http://krugman.blogs.nytimes.com/2011/07/19/the-glenn-beck-debeers-connection/
To this day, with gold at $1600 an ounce, Krugman refuses to apologize for his nonsense. To be fair to Krugman, though, his lack of insight on precious metals markets is most likely deliberate, and not due to stupidity, being that he has long been a lapdog of central banks and a rabid supporter of the great Keynesian con. Some MSM economists are simply ignorant, while others are quite aware of the battle between fiat and gold, and have chosen to support the banking elites in their endeavors to dissuade the masses from ever seeking out an alternative to their fraudulent paper. The establishment controlled Washington Post made this clear with its vapid insinuation in 2010 that Ron Paul’s support of a new gold standard is purely motivated by his desire to increase the value of his personal gold holdings, and not because of his concern over the Federal Reserve’s destructive devaluing of the dollar!
http://www.washingtonpost.com/wp-dyn/content/article/2010/06/13/AR2010061304881.html?hpid=topnews
So, if a public figure owns gold and supports the adaptation of precious metals to stave off dollar implosion, he is just trying to “artificially drive up his own profits”. If he supports precious metals but doesn’t own any, then he is “afraid to put his money where his mouth is”. The argument is an erroneous trap, not to mention, completely illogical.
Numerous MSM pundits have continued to call a top for gold and silver markets only to be jolted over and over by further rapid spikes. Frankly, it’s getting a little embarrassing for them. All analysts are wrong sometimes, but these analysts are wrong ALL the time. And, Americans are starting to notice. Who beyond a thin readership of mindless yuppies actually takes Krugman seriously anymore? It’s getting harder and harder to find fans of his brand of snake oil.
Those who instead listened to the alternative media from 2007 on have now tripled the value of their investments, and are likely to double them yet again in the coming months as PM’s and other commodities continue to outperform paper securities and stocks. After enduring so much hardship, criticism, and grief over our positions on gold and silver, it’s about time for us to say “we told you so”. Not to gloat (ok, maybe a little), but to solidify the necessity of metals investment for every American today. Yes, we were right, the skeptics were wrong, and they continue to be wrong. Even now, with gold surpassing the $1600 an ounce mark, and silver edging back towards its $50 per ounce highs, there is still time for those who missed the boat to shield their nest eggs from expanding economic insanity. The fact is, precious metals values are nowhere near their peak. Here are some reasons why…
Debt Ceiling Debate A Final Warning Sign
If average Americans weren’t feeling the heat at the beginning of this year in terms of the economy, they certainly are now. Not long ago, the very idea of a U.S. debt default or credit downgrade was considered by many to be absurd. Today, every financial radio and television show in the country is obsessed with the possibility. Not surprisingly, unprepared subsections of the public (even conservatives) are crying out for a debt ceiling increase, while simultaneously turning up their noses at tax increases, hoping that we can kick the can just a little further down the road of fiscal Armageddon. The delusion that we can coast through this crisis unscathed is still pervasive.
Some common phrases I’ve heard lately: “I just don’t get it! They’re crazy for not compromising! Their political games are going to ruin the country! Why not just raise the ceiling?!”
What these people are lacking is a basic understanding of the bigger picture. Ultimately, this debate is not about raising or freezing the debt ceiling. This debate is not about saving our economy or our global credit standing. This debate is about choosing our method of poison, and nothing more. That is to say, the outcome of the current “political clash” is irrelevant. Our economy was set on the final leg of total destabilization back in 2008, and no amount of spending reform, higher taxes, or austerity measures, are going to change that eventuality.
We have two paths left as far as the mainstream economy is concerned; default leading to dollar devaluation, or, dollar devaluation leading to default. That’s it folks! Smoke em’ if you got em’! This train went careening off a cliff a long time ago.
If the U.S. defaults after August 2nd, a couple of things will happen. First, our Treasury Bonds will immediately come into question. We may, like Greece, drag out the situation and fool some international investors into thinking the risk will lead to a considerable payout when “everything goes back to normal”. However, those who continued to hold Greek bonds up until that country’s official announcement of default know that holding the debt of a country with disintegrating credit standing is for suckers. Private creditors in Greek debt stand to lose at minimum 21% of their original holdings because of default. What some of us call a “21% haircut”:
http://www.reuters.com/article/2011/07/22/us-greece-iif-idUSTRE76K6VX20110722
With the pervasiveness of U.S. bonds around the globe, a similar default deal could lead to trillions of dollars in losses for holders. This threat will result in the immediate push towards an international treasury dump.
Next, austerity measures WILL be instituted, while taxes WILL be raised considerably, and quickly. The federal government is not going to shut down. They will instead bleed the American people dry of all remaining savings in order to continue functioning, whether through higher charges on licensing and other government controlled paperwork, or through confiscation of pension funds, or by cutting entitlement programs like social security completely.
Finally, the dollar’s world reserve status is most assuredly going to be placed in jeopardy. If a country is unable to sustain its own liabilities, then its currency is going to lose favor. Period. The loss of reserve status carries with it a plethora of very disturbing consequences, foremost being devaluation leading to extreme inflation.
If the debt ceiling is raised yet again, we may prolong the above mentioned problems for a short time, but, there are no guarantees. Ratings agency S&P in a recent statement warned of a U.S. credit downgrade REGARDLESS of whether the ceiling was raised or not, if America’s overall economic situation did not soon improve. The Obama Administration has resorted to harassing (or pretending to harass) S&P over its accurate assessment of the situation, rather than working to solve the dilemma:
http://news.yahoo.com/obama-officials-clash-p-over-downgrade-threats-200358261.html
Ratings company Egan-Jones has already cut America’s credit rating from AAA to AA+:
Many countries are moving to distance themselves from the U.S. dollar. China’s bilateral trade agreement with Russia last year completely cuts out the use of the Greenback, and China is also exploring a “barter deal” with Iran, completely removing the need for dollars in the purchase of Iranian oil (which also helps in bypassing U.S. sanctions):
http://uk.reuters.com/article/2011/07/24/china-iran-oil-idUSLDE76N0DJ20110724
So, even with increased spending room, we will still see effects similar to default, not to mention, even more fiat printing by the Fed, higher probability of another QE announcement, and higher inflation all around.
This period of debate over the debt ceiling is liable to be the last clear warning we will receive from government before the collapse moves towards endgame. All of the sordid conundrums listed above are triggers for skyrocketing gold and silver prices, and anyone not holding precious metals now should make changes over the course of the next month.
What has been the reaction of markets to the threat of default? Increased purchasing of precious metals! What has been the reaction of markets to greater spending and Fed inflation? Increased purchasing of precious metals! The advantages of gold and silver are clear…
European TARP?
The MSM blatantly glossed over the EU decision on the latest Greek bailout, as many pundits heralded the plan as decisive action on the part of Europe. But, what was the EU solution to the possibility of Greek default? In the end, their solution was to LET GREECE DEFAULT! Brilliant!
http://blogs.reuters.com/felix-salmon/2011/07/21/greece-defaults/
EU proponents of the plan for Greece are calling the solution a “selective default”, which I suppose, is meant to make it sound less default-ish. However, this is, indeed, a default, and many Greek bondholders are going to lose substantial sums of money as the Greek government decides who they are going to pay back, and who they are going to give the finger. Strangely, this plan also includes the creation of a kind of European Monetary Fund, or a European TARP. This means a broader strategy is being put into motion that involves continuing bailouts and fiat injections of Euros, not just into Greece, but into other countries as well, including Ireland, Portugal, Spain, and even Italy:
http://www.zerohedge.com/article/goldmans-complete-summary-european-council-decisions
Extended printing of Euros means devaluation, and devaluation means greater international interest in gold and silver. The EU Council plan is a blinding flashing neon sign telling us to BUY PRECIOUS METALS, while we still can.
Stock Market Facade Is Over And Inflation Is Here
The “great bull run” over the past two years has been somewhat successful in fooling a certain percentage of Americans into believing all the recovery talk was real. The fundamentals, though, show that this run is entirely fabricated. Besides a static real unemployment rate of around 20%, housing market hellfire, and crushing inflation in commodities, trading volume in stocks is also at a three year low:
This means that the overall value of the Dow is being driven by a much smaller pool of investors. A smaller pool of active investors means a more volatile market, with a greater chance of wild swings or inflated values. This lack of stock participation also leads one to question the validity of the bull run as a whole. What, we might ask, has really been holding the markets up for so long, if so few people are feeding the machine?
We must keep in mind that since the credit crisis began the Fed has held interest rates at near zero. That’s almost 3 YEARS of near zero interest rates; far beyond the predictions of many mainstream analysts. The reason? Easy fiat from the Fed is the only thing keeping markets alive. Without it, they would crumble. We hear only of the fiat pumped into the system through bailouts and quantitative easing, but rarely do we hear about all the printing that goes on in-between these public events. The extent of Fed currency creation is made more apparent by the St. Louis Fed’s Adjusted Monetary Base:
According to the Fed publication ‘Monetary Base In An Era Of Financial Change’, the AMBSL is an index measuring the central bank balance sheet, including open market operations, statutory reserve requirements, and foreign exchange market interventions. The index, though, includes only what is reported by the fed, and without an audit, it is impossible to determine its accuracy. In all likelihood, it actually under-reports the amount of fiat being flooded into markets.
Can the Fed prop up the markets forever? No. The volume versus value conflict is too revealing, and I believe we have reached a point at which the weight of negative data is preventing any further significant climbs in the Dow even in the face of manipulation. A kind of critical apex is created; a point at which two forces once balanced meet and derail each other. Stocks, at this time, are very vulnerable, especially when they are supported by a central bank induced fiat framework
When investors realize that the bull run is fake, not to mention over for a very long time, that dollar devaluation is a certainty, and that bonds are a deathtrap, where will they turn to protect their savings? That’s right…gold and silver. The price potential for metals going into the final half of 2011 is extremely high. Lows can strike abruptly, and they do often under such volatile circumstances, but unlike MSM talking heads, we look well beyond week to week progressions. The long term trend is really what matters, and the long term trend for gold and silver has been impressively positive.
To those who chose not to take my advice over the past three years, or the advice of countless other alternative analysts and economists, I can only say we stand by our record. Our purpose is to help you secure the safety of your buying power as much as possible in these dangerous days. That is all. It is not too late to establish a foundation in precious metals, and it is not too late to accept the reality of our country’s quandary. Warnings, though, are just a small window in time, and they are only useful, so far as they are heeded.
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Not to own any Gold, is to trust a central banker- Marc Faber
Back when Gold just crossed 1,000 per oz he said it would never fall below that level again.
That is when I bought the majority of my PMs. Best investment advice I ever received
That is when I bought the majority of my PMs. Best investment advice I ever received
First bought at $273......went in 2008 during the crisis at $700.
When your eyes are screaming at you....you have to act.
Oldgay Itchezbay!
The fact that silver and gold need to be beaten down with such fervor is evidence enough to me that the banksters are intent on printing their way into oblivion.
Vote with your money. Buy PM's.
Ok, so when does the buyer ever dictate the market price?
Just a quick question, because when does a price plunge mean that I have to sell?
The big problem for the state sponsored ponzi is that if my price to sell is say $10,000/oz then that is the price that I will sell my PM's at, and I reserve the right to raise it or lower it at my discretion. It matters not one jot what happens to the gold price in the interim, that's my price to sell. One day I'm sure that the chief idiot in charge will realise that manipulating the futures price has no impact on my willingness to hold precious metals other than that I will buy more if the price is manipulated lower.
The problem is the income tax. If these guys were right about one thing it is this, 'Next, austerity measures WILL be instituted, while taxes WILL be raised considerably, and quickly. The federal government is not going to shut down. They will instead bleed the American people dry of all remaining savings in order to continue functioning,' but if I really needed the advice of an investment pundit I would say 'thanks but no thanks' to Alt Market and choose one that could actually read financial markets and wasn't more than 5 years late to the party...
The past is past. If your teenage child were to have $1,600 in savings today, would you point her towards a shiny coin, or digits in a bank's computer? I know my grrl is being guided (by me) towards shiny metal.
With today problem of US dollars printing to help the economy, it's more actual and appropriate to save your economy in hard precious metals like bijuterii argint silver and gold rather than some paper moneys that have no real value.
As a big US economist said, gold is the currency that will never be someones debt. Try to keep your long-term savings in precious metals and not in common currencies.
Oldgay illway ithay ivefay 000 oonsay.
Did you say, "Old gay bitches"?
Me.too@aol.com
yeah, well I was only around ten years old then. My allowance money only went so far.
Did however receive some high yielding treasury bonds when I was an infant that paid out pretty nicely at maturity.
I love ya baby_BLYTHE......but you're still incredibly young. Nothing wrong with that, except that we all tend to think we are older and wiser than we were yesterday or yesteryear. That is not always the case, though you seem to be making an exception to that rule. :>)
Just remember that we always supply our own confirmation bias whenever we need or want it. And keep saving that allowance, even if it's just you who are giving it to yourself. Pay yourself first, then everyone else.
CogDis is right. The first time I walked into a real casino, I won. That wound up costing me a lot more in later on... Hey! Those guys CAN play poker better than me!
I stay out of casinos now as my record is so bad: 30 or visits to gamble, walking out a winner only about 5 times.
I also stay away from put and call options: 6 punts, lost all or part of my money all 6 times.
Stick with gold. Save your money as much as you can. Pay yourself first is exactly right. The really nice thing about gold is that you can buy and spend at the same time!
Funny when I was 10 years old I tried to buy dollars, because my allowance was in an East European currency(post the fall)
How easy was it for you to convert into dollars? Were there any restrictions?
It was after the fall of the wall, so no restrictions, but money changers didn't want to do business with a kid trying to buy 10$ ^^
Sub-$300 cost basis--started buying while it was gurgling its death rattle. Bought all the way up until about $1000. My exposure now is over the top, by MSM standards.
and cost basis of silver starting at $4 and running up to $28.
Been buying gold over the years and bought alot on the dip back to $700. I should have gone all in then but no sense second guessing. I continue to buy every few months and expect gold and silver will set us free.
Similar story for me, a buyer for decades, although the bulk I have bought was when gold reached $900 or so. Even though gold is at $1600, I will keep buying as fiat comes my way.
Onward to $55,000 bitchez!
I don't trust central bankers anymore. Being a little late on the run, I prefered buying silver instead of gold. In the little 9 months that followed my PHYSICAL purchase, I'm currently around 25% net (incl. transportation & VAT fees) loss. But I'm for the long run and maybe before next year I'll be net positive.
How I can actually have a net loss on my investment? Stack priced in CHF (which bounced against USD) so...
I'm waiting for a reversal signal in $XSF; I'm currently in CHF cash and waiting the right moment to move (which could come anytime; the BNS is screaming to debase CHF and Silver is breaking resistance).
Baby,
I was about your age back in the seventies, the last time the dollar was falling apart, and gold was soaring. I hope you appreciate how lucky you are to have ZH to read. The best I had back then was the Charlotte Observer, and they only reported after the fact. If I had bought into the PM market early, like I did this time (2004), I'd have made a killing.
"Talk is cheap"!
wow, a victory lap for the bulls already? Means an intermediate top must be in.
+1
Heard that one before...
I sold my physical silver on Friday, +25% in six months. There will be a large dip buying opportunity yet . . . I hope.
I got out Friday too... expecting a drop this week once the debt issue is closed (Comex Expiration and Treasury Auctions factors as well)... BTFD!
You guys would have been a lot smarter to sell your silver for gold, rather than paper.
Perhaps. We'll see. Different people are willing to tolerate different levels of sweat and stress. I wish I were a type B kinda guy. In that fantasy, I'd be a happy man. And I would simply be holding the physicial.
But not me.
Hoping is not a reliable strategy.
Hope has a high coefficient in our world . . . in our markets, not so much, since MOMO rulz, but then I'm beginning to literally hate our markets--look WTF they have become.
Give the devil his due.
Amateurs. Gold is still cheap. This baby has a long way to go before it runs its course.
+ $55,000
Hey, but what would a dumb Bearing know, what with a hole in the mddle where a brain would normally be? Gold will soon be seen again as the best wealth preserver in town. PHYSICAL gold only though, in your hands.
---
"All else will be left behind when the Gold Mothership takes off."
-ZH-er "Gordon_Gekko"
Want to read why (the long version)?
fofoa.blogspot.com
Disclosure: I am not FOFOA, but I do donate to his blog.
Where the heck is GG?
Maybe he and Marla moved to an island together to watch the world crumble?
Unless I'm nisunderstanding. his blog hasn't been updated since June 2010.
http://gordongekkosblog.blogspot.com/
Unless I'm nisunderstanding. his blog hasn't been updated since June 2010.
http://gordongekkosblog.blogspot.com/
Perhaps he's practicing the Gold Standard for gold protection: Silence.
That was wickedly funny, Temporalist!
Yes, the original Gordon_Gekko. His day had come.
I'm surprised that nobody talks about the Gold Standard for gold protection. That would be, similarly to the first two rules of Fight Club, that you don't talk about it.
Otherwise you have to plan for a whole lot of exigencies. Why net costs like those against the value of your gold, I'm always wondering.
Hey, where the hell is Gordon, anyway?
We don't hear much from him anymore . . .
Hey chumba, good to see that you dropped the idiotic "I am chumbawumba". You will get much more serious reply's by dropping that non-sense.
Pieces of 8's! Gold and Silver!
Pirates were right - if its not shiny, its whiney!
Physical, bitchez.
http://www.youtube.com/watch?v=vWz9VN40nCA
ONJ's Cameltoe leotard thing almost made it worth the overt homo-sensuality there...plus I had to sit through the Fabio "Old Spice Guy" commericial...All in all, at least I'm 4 minutes and 30 seconds closer to going home for the day.
This is what we all expect. So be careful everyone isn't on the same side of the boat just in case it doesn't. We are dealing with desperate men who will do desperate things. Including taking from the minority to satisfy themselves and the majority.
When the fraud no longer works, they'll use force. Fraud still works pretty good though.
When they come for your gold, be prepared to shoot, and be prepared for a long stand-off. Hence:
Gold, Guns, Garden.
Silver, Bullets, Seed.
There are 80,000,000 armed Americans. After some 20 - 50 Fasicist Thugs are killed while coming by to confiscate gold OR guns, that will stop. The cops will have no heart to take on 80,000,000 people ready to stop that.
Chumba is right about another point too. Diversification is your friend. Silver for spending. Food & water for (some) self-sufficiency. Guns & ammo to secure your rights. Booze and prescription meds for barter. Condo dwelling Bearing misses out on the garden part, but ANYONE could (and should RIGHT NOW) be actively preparing for a nasty period in which all of us are in peril in one or more ways.
+1
http://www.youtube.com/watch?v=oMlqn_Hjyi8
CD - To your last point, did you read the article in American Thinker about the potential for the desperate ones to take our IRAs? http://www.americanthinker.com/2011/07/is_your_ira_going_to_be_raided.html
Physical anything must be pried from cold, dead hands. Minimize paper/electronic exposure IMHO.
No, the government would never do that. /sarc
Interestingly the very fact that we are seeing these types of articles more and more is doing exactly what the article stated, conditioning the public to accept what will soon be seen as inevitable.
Yup. I was thinking about how they conditioned us for wars in Asia and middle east to make them seem more necessary and less objectionable. They condition us for the VAT taxes, they condition us at TSA checkpoints for unreasonable search and siezures. They condition us in public schools to have parents cede control of their children to the government "educators", and inversely, children to ignore their parents values and authority. They condition us to STFU about our Christianity, first in government, then in "public" then even in private.
At what point is their offense so objectionable that no amount of conditioning or PR propaganda going to pacify? Which rights will they have to violate to incur the wrath of the mob???? The government now has control over our movement, our property, our children, our bodies, our speech, our relationships to/with each other, our birth and our death. We are no longer "sovern" freemen.
The incremental nature with which our liberties have been slowly eorded away over decades is insideous as hell. Each generation gets a little more "conditioned" for serfdom and dependence. When you attempt to awaken others to this fact we are made to feel irrational by the MSM attack. How do we organize to put an end to it and roll it back? Tea Party? They're fine and I get the Tea Party movement, but REALLY? Unless the Tea Party morphs into a real revolt...How? Elections seem not to matter...(Sorry for the soapbox, didn't plan on it).
incremental is the key. They condition us for our conditioning
+ a bunch
Hop on that soapbox whenever you like. It suits you.
Pupton,
Truth
masquerades as soap box; only because it is so seldom spoken, only thought. Pavlov's dogs were the first conditioning that had a scientific basis; our puppet-masters have learned a lot since then. Slow conditioning, till acceptance. I home school my eleven year old daughter, and speak out only to the ones I trust. The black suits have not come for me yet, but I expect it some time down the road. The spying has increased coupled with the government's back-handed desire to get all the intel on the "home-grown" terroists. No need to get alarmed; anyone that thinks that the Constitution still has life fits that label. We will have the opportunity down the road to fight for that belief, the question is are they more "hollow men" than real. Time will tell...................
@ CogDis,
Argentina was the example for all to see.
I have been trying to observe more and more of the conditioning of the citizens. It is indeed everywhere. Trying to shake it off is very hard. Thanks for letting us know that even WE who are aware of it are still stuck and enmeshed in this web.
At least I got rid of my IRA in 2008, paid my taxes and penalties, but the money is mine. A lot of that went to gold...
Never in a million years would I claim I can see it all. This is because so much of it is embedded within our culture and the way we think. It is buried deeply in our languages and thus we use the very tool that enslaves us to communitcate with each other, assuring it's transmission to others and the reinfecting of ourselves.
I posted this yesterday under a different article, but I am interested in some thoughtful responses and some of you seem to be in the same place I find myself.
...I am fully committed to PMs(gold and silver mostly) and have been since 2008 (finished trading paper vehicles in 2010). I have tried to discuss/persuade friends & family of gold and silver's value... all to no avail for many reasons... no surprise to most of you. I have read many thoughts on past and possible future gold/silver confiscation. Most I can dismiss or deal with, but I do have a nagging thought. Is it possible with so few people (average people) really owning it here in the US, when the government decides to come after it they will have the blessing and assistance of the have-nots? I mean when the SHTF and if/when the Gov't takes draconian steps to gather it (rewards to turn in others), will those have-nots really see it as a problem? I am also thinking of guns. When most people do not have an immediate interest in a matter (especially in stressful/trying times), they tend to say, "so what? it doesn't affect me right now." I do think my hands will have to be cold to release that which I hold...BUT?
Awldone-
You are digging into a really important question. Only those few who've exprienced a large-scale meltdown (like Argentina or Zimbabwe) can relate first-hand experience.
My view is this: those in closest proximity to you, if they are desperate for lack of preparedness, are a far more imminent threat than the government. They can find you faster, and their interest in "confiscating" from the "haves" will stem from fundamental survival needs (whereas the govt wiseguys will be following orders).
So I think a good plan involves identifying a community of like-minded preppers, and perhaps informing ill-prepared neighbors only of your weapons cache.
But the 1% per day limit is still on for now, and naked shorts are still the latest fashion.
This is just the beginning for Au/Ag. The big gains lie directly ahead
Got Gold?
Gold on Black is beautiful baby.
+ the usual $55,000 Hulk. Just look above to my reply to Chumba so I can save typing! LOL...
I sold my silver off on Saturday after the price closed at 40.00. Mostly due to a pressing need for some cash, however I won't be getting back in. I'll keep my gold and focus soley on that for PMs from here on in. Had a decent run with the silver and didn't lose anything.
pretty soon, things will flip flop. gold has always been silver's big brother. but in the days to come, this relationship may change....it always was about silver. if it was so unimportant, then why do the big banks attempt to manipulate it so much? do they know something we don't ? gold was just the shiney metal out in front. silver was always called a industrial metal, and we were always told not to worry about this industrial metal. but i am here to tell you, that it is the poor man's gold. it is money. it will always be money. it is written.
My sentiments exactly HPD. I feel that the hyping of gold and it's suppression (especially post Hunt bros when silver became just plain dangerous to a few generations that got burned), it's now as much part of the conditioning mindset. Mainstream-stick with the markets. Alternative thinker-get gold.
One of the mis-conceptions that India is helping blow out of the water is the three olympic sized pools one about gold.
At a recent temple-haul un-earthing, they found close to 3 tones of gold. One temple. There probably are at least a hundred such in India alone, where peopel have been depositing their gold in return for favours sought or granted.
Then of course there is Yamashita's gold, the phillipino vaults, sunken treasures.
Kill that one theory and everything else about the gold story collapses.
Dr. PorkChop, I suggest a quick return into Ag, at least 50%.
Gold will fold.
ORI
http://aadivaahan.wordpress.com/2011/07/24/doldrums-and-cliff-edges/
3 Million Americans,2 Billion Indians, 1.5 Billion Chinese, cannot all be WRONG.
No, but they can all be hungry...
And if they're all shooting at each other, they can become less numerous.
and mightily pissed...
Gold's Eggs Always Hatch. You can count them anytime.
paper on the other hand----has a Utilitarian use = Wiping Ass
I wondered why the market was flush with paper
PM prices in fiat still have an opportunity for a great slap-down in a Lehman-esque failure (which I expect to see sometime in the future) - e.g., a repeat of 2008. One never knows the extent of government intervention, nor is global sentiment predictable. Gloating is never appropriate (look at the recent Silver take-down)...
Gloating?
*junk*
One never knows if the sun is going to rise either, yet I will 'gloat' that it will, and shit you know what it always does.
Gold and Silver ----Will rise like the sun!
At which point you BTFD, load up on physical, and tip your hat to those who made it happen. Can't go wrong going long (i.e. post-Revolution) physical. Just make sure you've got a strongbox and a thirty-aught to protect it.
That's assuming you can find physical at the paper price. My guess is that anybody that has any will not be willing to sell it at the depressed price, or they will adjust the premium up accordingly.
Correct. If the price comes down very much, all the physical disappears.
Don't forget about local coin shows...I went to one this weekend with a friend and he was able to buy "junk" 90% silver coins at $30 per face $1.
Phisical is still out there, people just forget about anything that is not "pure Bullion". The 90% silver is still out there and don't forget about sterling 92.5%.
I know many people here watch the bullion vendors like kitco (ahem..) and Apmex and the like, but small coin shows have tons of junk silver. There are plenty of things to buy like silver dimes at $3 each and halves at $15 each.
There is silver out there BELOW paper price, just go to a coin show and look :)
I'll second that. Went to a local coin auction recently. Got three 1 oz silver rounds for $100.
Sometime it's dangerous to be right.
Don't worry, we have evolved to survive not to be right.
for some people it's an art form...
That is especially true when the government is wrong.
Regular folks don't care about gold or the debt ceiling. They are more interested in Amy Winhouse and the NFL pack. Just check out the frontpage of CNN.
In the long run, gold will buy a loaf of bread.
True: one gram of gold will buy an enormous loaf of bread
and a house...
Sounds like you watched that Zimbabway(sp) link yesterday too...
I've been filing down one of my maple leafs since then. 1 oz = ALOT of grains!
and with that comment you hit the nail on the head.
Buying gold is easy, selling it in tradable quantities is more difficult...
That's why we have/need gold in money.
Once main stream realize that they must own Gold and Silver it wont be available for purchase. At least not at these levels. America is still going through its 'cash for gold' phase - the latest scheme of American's fleecing themselves..