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Guest Post: Gold And Silver: We Were Right – They Were Wrong

Tyler Durden's picture




 

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+:

http://www.bloomberg.com/news/2011-07-18/egan-jones-cuts-u-s-rating-to-aa-on-spending-cut-concern-1-.html

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:

http://finance.yahoo.com/news/Wheres-the-volume-Stock-apf-2486403790.html?x=0&sec=topStories&pos=4&asset=&ccode=

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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Mon, 07/25/2011 - 10:35 | 1490387 baby_BLYTHE
baby_BLYTHE's picture

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

Mon, 07/25/2011 - 10:37 | 1490397 GetZeeGold
GetZeeGold's picture

 

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.

 

Mon, 07/25/2011 - 10:42 | 1490416 redpill
redpill's picture

Oldgay Itchezbay!

 

Mon, 07/25/2011 - 10:51 | 1490452 nope-1004
nope-1004's picture

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.

 

Mon, 07/25/2011 - 11:42 | 1490654 Harlequin001
Harlequin001's picture

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...

Mon, 07/25/2011 - 15:33 | 1491615 snakeboat
snakeboat's picture

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.

Tue, 10/04/2011 - 08:50 | 1736599 BrianN
BrianN's picture

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.

Mon, 07/25/2011 - 11:05 | 1490509 Ray Elliott
Ray Elliott's picture

Oldgay illway ithay ivefay 000 oonsay.

Mon, 07/25/2011 - 11:31 | 1490605 Boba Fiat
Boba Fiat's picture

Did you say, "Old gay bitches"? 

Mon, 07/25/2011 - 14:35 | 1491335 Inibo E. Exibo
Mon, 07/25/2011 - 10:46 | 1490435 baby_BLYTHE
baby_BLYTHE's picture

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.

Mon, 07/25/2011 - 11:02 | 1490499 Cognitive Dissonance
Cognitive Dissonance's picture

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. 

Mon, 07/25/2011 - 12:35 | 1490873 DoChenRollingBearing
DoChenRollingBearing's picture

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!

Mon, 07/25/2011 - 11:43 | 1490661 Azannoth
Azannoth's picture

Funny when I was 10 years old I tried to buy dollars, because my allowance was in an East European currency(post the fall)

Mon, 07/25/2011 - 12:02 | 1490727 baby_BLYTHE
baby_BLYTHE's picture

How easy was it for you to convert into dollars? Were there any restrictions?

Mon, 07/25/2011 - 15:56 | 1491768 Azannoth
Azannoth's picture

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$ ^^

Mon, 07/25/2011 - 10:51 | 1490453 Thomas
Thomas's picture

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.

Mon, 07/25/2011 - 10:53 | 1490464 Thomas
Thomas's picture

and cost basis of silver starting at $4 and running up to $28.

Mon, 07/25/2011 - 11:25 | 1490585 living on the edge
living on the edge's picture

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.

Mon, 07/25/2011 - 12:38 | 1490894 DoChenRollingBearing
DoChenRollingBearing's picture

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!

Mon, 07/25/2011 - 10:54 | 1490472 Overflow-admin
Overflow-admin's picture

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).

Mon, 07/25/2011 - 13:19 | 1491070 Marty Rothbard
Marty Rothbard's picture

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.

Mon, 07/25/2011 - 10:35 | 1490392 TradingJoe
TradingJoe's picture

"Talk is cheap"!

Mon, 07/25/2011 - 10:37 | 1490400 BrianOFlanagan
BrianOFlanagan's picture

wow, a victory lap for the bulls already?  Means an intermediate top must be in.

Mon, 07/25/2011 - 10:47 | 1490431 Henry Chinaski
Henry Chinaski's picture

+1

there is still time for those who missed the boat

Heard that one before...

Mon, 07/25/2011 - 12:11 | 1490769 Bob
Bob's picture

I sold my physical silver on Friday, +25% in six months.  There will be a large dip buying opportunity yet . . . I hope. 

Mon, 07/25/2011 - 13:13 | 1491052 SRV - ES339
SRV - ES339's picture

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!

Mon, 07/25/2011 - 14:54 | 1491449 Lord Koos
Lord Koos's picture

You guys would have been a lot smarter to sell your silver for gold, rather than paper.

Mon, 07/25/2011 - 19:42 | 1492456 Bob
Bob's picture

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. 

Mon, 07/25/2011 - 17:06 | 1492104 mayhem_korner
mayhem_korner's picture

Hoping is not a reliable strategy.

Mon, 07/25/2011 - 19:49 | 1492461 Bob
Bob's picture

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. 

Mon, 07/25/2011 - 12:16 | 1490789 chumbawamba
chumbawamba's picture

Amateurs.  Gold is still cheap.  This baby has a long way to go before it runs its course.

Mon, 07/25/2011 - 12:44 | 1490924 DoChenRollingBearing
DoChenRollingBearing's picture

+ $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.

Mon, 07/25/2011 - 14:10 | 1491247 Temporalist
Temporalist's picture

Where the heck is GG?

 

Maybe he and Marla moved to an island together to watch the world crumble?

Mon, 07/25/2011 - 17:32 | 1492170 Island_Dweller
Island_Dweller's picture

Unless I'm nisunderstanding. his blog hasn't been updated since June 2010.

 

http://gordongekkosblog.blogspot.com/

Mon, 07/25/2011 - 17:32 | 1492171 Island_Dweller
Island_Dweller's picture

Unless I'm nisunderstanding. his blog hasn't been updated since June 2010.

 

http://gordongekkosblog.blogspot.com/

Mon, 07/25/2011 - 18:20 | 1492267 Bob
Bob's picture

Perhaps he's practicing the Gold Standard for gold protection: Silence. 

Mon, 07/25/2011 - 18:24 | 1492276 Bob
Bob's picture

That was wickedly funny, Temporalist! 

Mon, 07/25/2011 - 18:47 | 1492241 Bob
Bob's picture

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 . . .

Mon, 07/25/2011 - 16:27 | 1491938 Ra-Marduk
Ra-Marduk's picture

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.

Mon, 07/25/2011 - 10:38 | 1490401 Juice Box
Juice Box's picture

Pieces of 8's!  Gold and Silver!  

 

Pirates were right - if its not shiny, its whiney!

Mon, 07/25/2011 - 10:38 | 1490404 CHARLIE.DONT.SERF
Mon, 07/25/2011 - 11:46 | 1490673 pupton
pupton's picture

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.

Mon, 07/25/2011 - 10:39 | 1490408 Cognitive Dissonance
Cognitive Dissonance's picture

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.

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.

Mon, 07/25/2011 - 10:46 | 1490432 Dr. Porkchop
Dr. Porkchop's picture

When the fraud no longer works, they'll use force. Fraud still works pretty good though.

Mon, 07/25/2011 - 12:17 | 1490794 chumbawamba
chumbawamba's picture

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.

Mon, 07/25/2011 - 12:52 | 1490969 DoChenRollingBearing
DoChenRollingBearing's picture

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.

Mon, 07/25/2011 - 10:48 | 1490440 fuu
fuu's picture

+1

Mon, 07/25/2011 - 10:59 | 1490488 pupton
pupton's picture

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.

 

Mon, 07/25/2011 - 11:12 | 1490542 Cognitive Dissonance
Cognitive Dissonance's picture

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.

Mon, 07/25/2011 - 12:02 | 1490725 pupton
pupton's picture

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).

Mon, 07/25/2011 - 12:22 | 1490812 DaveyJones
DaveyJones's picture

incremental is the key. They condition us for our conditioning

Mon, 07/25/2011 - 19:38 | 1492448 Medea
Medea's picture

+ a bunch

 

Hop on that soapbox whenever you like.  It suits you.

Mon, 07/25/2011 - 19:50 | 1492482 Wild tree
Wild tree's picture

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...................

Mon, 07/25/2011 - 12:57 | 1490994 DoChenRollingBearing
DoChenRollingBearing's picture

@ 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...

Mon, 07/25/2011 - 13:41 | 1491131 Cognitive Dissonance
Cognitive Dissonance's picture

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.

Mon, 07/25/2011 - 15:54 | 1491760 AwlDone
AwlDone's picture


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?

Mon, 07/25/2011 - 17:21 | 1492139 mayhem_korner
mayhem_korner's picture

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.

Mon, 07/25/2011 - 10:40 | 1490410 cpnscarlet
cpnscarlet's picture

But the 1% per day limit is still on for now, and naked shorts are still the latest fashion.

Mon, 07/25/2011 - 10:40 | 1490411 Hulk
Hulk's picture

This is just the beginning for Au/Ag. The big gains lie directly ahead

Got Gold?

Mon, 07/25/2011 - 10:53 | 1490462 Cognitive Dissonance
Cognitive Dissonance's picture

Gold on Black is beautiful baby.

Got Gold?

Mon, 07/25/2011 - 12:58 | 1490997 DoChenRollingBearing
DoChenRollingBearing's picture

+ the usual $55,000 Hulk.  Just look above to my reply to Chumba so I can save typing!  LOL...

Mon, 07/25/2011 - 10:44 | 1490422 Dr. Porkchop
Dr. Porkchop's picture

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.

Mon, 07/25/2011 - 10:51 | 1490446 High Plains Drifter
High Plains Drifter's picture

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.

Mon, 07/25/2011 - 14:10 | 1491249 Oh regional Indian
Oh regional Indian's picture

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/

 

Mon, 07/25/2011 - 10:45 | 1490425 DosZap
DosZap's picture

3 Million Americans,2 Billion Indians, 1.5 Billion Chinese, cannot all be WRONG.

Mon, 07/25/2011 - 11:48 | 1490678 Harlequin001
Harlequin001's picture

No, but they can all be hungry...

Mon, 07/25/2011 - 12:31 | 1490849 FeralSerf
FeralSerf's picture

And if they're all shooting at each other, they can become less numerous.

Mon, 07/25/2011 - 12:36 | 1490881 Harlequin001
Harlequin001's picture

and mightily pissed...

Mon, 07/25/2011 - 10:46 | 1490433 Samual Adams
Samual Adams's picture

Gold's Eggs Always Hatch.  You can count them anytime.

paper on the other hand----has a Utilitarian use = Wiping Ass

Mon, 07/25/2011 - 10:53 | 1490461 DaveyJones
DaveyJones's picture

I wondered why the market was flush with paper

Mon, 07/25/2011 - 10:47 | 1490439 FlyPaper
FlyPaper's picture

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)...

Mon, 07/25/2011 - 10:52 | 1490455 Samual Adams
Samual Adams's picture

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!

Mon, 07/25/2011 - 11:06 | 1490518 Bill Blackstone
Bill Blackstone's picture

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.

Mon, 07/25/2011 - 11:54 | 1490695 NotApplicable
NotApplicable's picture

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.

Mon, 07/25/2011 - 13:02 | 1491007 DoChenRollingBearing
DoChenRollingBearing's picture

Correct.  If the price comes down very much, all the physical disappears.

Mon, 07/25/2011 - 13:15 | 1491060 Ryman1075
Ryman1075's picture

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 :)

Mon, 07/25/2011 - 19:36 | 1492430 Nom de Guerre
Nom de Guerre's picture

I'll second that.  Went to a local coin auction recently.  Got three 1 oz silver rounds for $100.

Mon, 07/25/2011 - 10:49 | 1490442 Thorlyx
Thorlyx's picture

Sometime it's dangerous to be right.

Mon, 07/25/2011 - 10:59 | 1490485 Version 7
Version 7's picture

Don't worry, we have evolved to survive not to be right.

Mon, 07/25/2011 - 11:51 | 1490690 Harlequin001
Harlequin001's picture

for some people it's an art form...

Mon, 07/25/2011 - 11:20 | 1490564 Silver Dreamer
Silver Dreamer's picture

That is especially true when the government is wrong.

Mon, 07/25/2011 - 10:49 | 1490443 spartan117
spartan117's picture

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.

Mon, 07/25/2011 - 10:51 | 1490449 oldmanagain
oldmanagain's picture

In the long run, gold will buy a loaf of bread.  

Mon, 07/25/2011 - 11:04 | 1490507 Captain Planet
Captain Planet's picture

True: one gram of gold will buy an enormous loaf of bread

Mon, 07/25/2011 - 11:52 | 1490691 Harlequin001
Harlequin001's picture

and a house...

Mon, 07/25/2011 - 12:14 | 1490783 toady
toady's picture

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!

Mon, 07/25/2011 - 12:19 | 1490798 Harlequin001
Harlequin001's picture

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.

Mon, 07/25/2011 - 10:51 | 1490451 Hearst
Hearst's picture

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..

Mon, 07/25/2011 - 10:58 | 1490482 iamse7en
iamse7en's picture

What happened to full RSS feeds. Don't see ZH commenting on that at all. It makes me so sad.

Mon, 07/25/2011 - 15:04 | 1491503 iamse7en
iamse7en's picture

It's fixed!!!

Mon, 07/25/2011 - 11:00 | 1490489 FoieGras
FoieGras's picture

"Those who instead listened to the alternative media from 2007 on have now tripled the value of their investments" - Not sure if this is correct, unless one attributes a value to fiat currency. An ounce of gold bought in 2007 is still an ounce of gold, measured in gold. The value is identical. Measuring value in fiat currency is a fools game.

Mon, 07/25/2011 - 11:14 | 1490547 firefighter302
firefighter302's picture

"Those who listened to alternative media in 2007 tripled their investment in metals."

Not sure of it is correct?  Lets look.

Silver May 2009  $11.50

Silver May 2010  $18

Silver May 2011 $ 38

Few Green plastic boxes of SAE's have been a brilliant investment.  And will continue to be so, imho.  Long and strong and ignorant of the media and naysayers.

Mon, 07/25/2011 - 12:51 | 1490968 Calculated_Risk
Calculated_Risk's picture

Those are prices. Value is the same.

Mon, 07/25/2011 - 12:30 | 1490843 DCFusor
DCFusor's picture

Agree Foie.  I "play" gold two ways.  One is a physical core position -- store of value, purchasing power.  Over a long timeframe, it's bascially flat in actual value measured, in say, Colt Peacemakers, saloon girls, and bar tabs.

Then I turn around and play with paper, for short term trades.  Most recent example -- bought on dips last week, quite a lot.  Sold it at opsn this AM, nice profits, real nice.  Now it's getting hammered (for all the reasons we know) and I'll be ready to wash, rinse, repeat pretty soon.  Didn't someone here say there was going to be a slapdown on Tuesday or so?

At any rate, that was almost a percent a day from the risk in paper -- and now I'm out with the "money in the mattress" for a little while (except of course, that core physical).  Seems like when there's a big enough pop, there will always be a drop right after (inverse dead cat bounce?).  Nice thing about playing the high beta moves on paper -- you're out a lot of the time, so exposed to less risk there, and have money to play something else being high beta just then.  Cycles, rotation, whatever you wanna call it.

And, ZH helped -- thanks everybody!  That over the weekend news and some helpful links to overseas futures trading made me more sure of the timing.

 

Mon, 07/25/2011 - 11:00 | 1490491 tyler
tyler's picture

The top callers and bubble talkers have been proven to be babbling idiots time and again.  That won't stop cnbc from having another segment called "has the bubble burst in precious metals?"  They got a microphone and are in front of a camera so I guess that's what qualifies them as someone to listen too.  Their just like weathermen getting the weather wrong, showing up for work the next day and acting like you should still listen to their forecast.  Never adressing the fact that they had me taking an umbrella and wearing a coat to work on a sunny 75 degree day.

Mon, 07/25/2011 - 11:08 | 1490495 Monedas
Monedas's picture

Yes you can....eat your silver ! I recommend Canadian or American dimes ! 5 dimes with a meal will do the trick ! Anti-bacterial, roughage, "Gravitas" for gravity assisted bowel velocity and recyclable ! Retrieval requires some ingenuity....but not a daunting task for the resourceful ! Monedas 2011 Throw an old, well worn silver dollar in with the wash the next time you wash your tennies and skid marked shorts !

Mon, 07/25/2011 - 11:56 | 1490706 Harlequin001
Harlequin001's picture

I recommend selling some and buying food...

and of courser, let's not forget the odd silver bullet...

Mon, 07/25/2011 - 12:15 | 1490786 Monedas
Monedas's picture

Silver is so anti-bacterial.....the purists don't even wash their "Dietary Dimes" ! They just wipe them with the clean corner of the WSJ they just shit on ! I'm going to market some perforated, hollow, pure silver "Gastro-Globes" ! Will not damage your intestinal flora ! Monedas 2011 Who says Monedas ain't funny ?

Mon, 07/25/2011 - 12:22 | 1490815 Harlequin001
Harlequin001's picture

stick a candle in it and it might make a nice ornament.

mind you though if you insist on inserting it it might just turn into a bomb...

Mon, 07/25/2011 - 13:07 | 1491030 DoChenRollingBearing
DoChenRollingBearing's picture

I have a hunch that Monedas is going to be one of Zero Hedge's favorites...

"...the clean corner of the WSJ they just shit on !"

Where else can you read gems like this?

Mon, 07/25/2011 - 11:03 | 1490501 Captain Planet
Captain Planet's picture

I just took a (s)troll on the NYTimes comment board under the krugman PTB public service anouncement...wow. seriously, WTF?

''Where were all the gold bugs when it was $250/oz?'' Answer, dear sir, they were realizing the bottom and not telling you about it, while buying quietly.

''Gold is probably the most rigged market in the history of markets. Gold has little intrinsic value - it's used in some electronics, but that's it. The only real value gold has is for conspiracy theorists aka gold bugs.'' And what value to conspiracy theorists see in gold? The powers of a crystal ball?

 

Oh America, how fucked you are...

 

Mon, 07/25/2011 - 11:30 | 1490602 firefighter302
firefighter302's picture

I must disagree with you, Captain Planet,

Americans, how blessed we are. Amazing medicine, technology, food, education and opportunity. The love of trustworthy family and friends and the opportunity to achieve almost any goal. To buy and store metals and accumulate land and wealth.  To control my own destiny and to be happy.

Life is wonderful and the blessings we enjoy in America are spectacular.

If you feel "fucked", I'd investigate the guy in the mirror. That's who I hold responsible, for my shortcomings.

Mon, 07/25/2011 - 12:20 | 1490805 Vergeltung
Vergeltung's picture

well said FF302

Mon, 07/25/2011 - 12:20 | 1490806 Uncle Remus
Uncle Remus's picture

You typed that with a straight face didn't you?

Mon, 07/25/2011 - 12:29 | 1490840 Harlequin001
Harlequin001's picture

'Americans, how blessed we are. Amazing medicine, technology, food, education and opportunity.'

and what part of this statement isn't the direct consequence of excess credit creation? And what part of that isn't going to disappear before you can shout 'shit'?

'Life is wonderful and the blessings we enjoy in America are spectacular.' - and now it's time to pay for it...

'... I'd investigate the guy in the mirror. That's who I hold responsible, for my shortcomings.' - Let's see if you still feel this way in 2 years time...

nice sentiments though, whilst it lasted.

Mon, 07/25/2011 - 11:32 | 1490610 Monedas
Monedas's picture

Don't forget...."I'm in AmeriCAH !"....Rita Monedas, West Side Story ! http://trololololololololololo.com/ What planet are you captain of, Uranus (as in your highness) ?

Mon, 07/25/2011 - 13:10 | 1491040 DoChenRollingBearing
DoChenRollingBearing's picture

"Rita Monedas, West Side Story !"

What did I just tell you all above?  We have a star among us!  NEVER leave us Monedas!

Mon, 07/25/2011 - 11:03 | 1490502 apberusdisvet
apberusdisvet's picture

Methinks that the two new exchanges in China will eventually result in true price discovery after years of suppression; the only question is when.  The fact that the Administration and DHS specifically are ramping up the police state (see VIPR and military troop movements in the US), I would imagine that it will be sooner rather than later.

Mon, 07/25/2011 - 11:33 | 1490616 Abitdodgie
Abitdodgie's picture

Do you really think the Chinese market is going to be on the up and up , no they are going to screw everyone just like the American/English market . All the worlds Governments are in on this ponzi scheme, easy money! 

Mon, 07/25/2011 - 12:08 | 1490743 JoBob
JoBob's picture

It seems that the Chinese are bright enough to make certain that their hard commodity markets stay on the up-and-up. With their population and lack of social support systems, why not give the Chinese people an honest mechanism to accumulate wealth? That would avoid vast social problems in the future. After all, they likely don't want to be like the US of A.

Mon, 07/25/2011 - 12:31 | 1490854 Harlequin001
Harlequin001's picture

do you mean like by putting gold back in money as opposed to starting another exchange through which its price can be manipulated?

Mon, 07/25/2011 - 12:38 | 1490897 DCFusor
DCFusor's picture

I might have to call BS on that one.  Chinese markets (any kind) are....no cleaner than anyone elses, and maybe less.  There were some interesting things that happened with copper due to their strangeness -- part of their stimulus awhile back allowed companies to buy copper (but not other things) with cheap credit and use it as collateral.  Many chinese firms with no use for or interest in copper took advantage of this, and copper goes up in their bizarre form of "price discovery".  This made a nice big bump in China copper accumulation awhile back till the government shut down the practice.  Then a slump till all that copper was actually used for something and they had to start buying again for real uses.

 

Sino-Forest comes to mind as another example of how up and up they are...

Mon, 07/25/2011 - 13:14 | 1491055 DoChenRollingBearing
DoChenRollingBearing's picture

I also agree that China has BIG problems and are corrupt as hell.  That's OK.  I am not worried about China as long as we use reasonably easy diplomacy to keep our differences from getting out of control.

China will not take us over, nor overtake us (unless we let them through .gov and bankster stupidity and greed).  We can live with them.  's cool.

Mon, 07/25/2011 - 17:50 | 1492206 DCFusor
DCFusor's picture

I have nothing against the Chinese at all.  Could be selection bias, but the Chinese I run into where I live are some pretty cool people -- I guess they had to be to wind up here in the first place, so the sample is likely skewed a lot (well, they say so themselves).  I don't think they'll over run us anytime soon, if ever.  I am kind of amazed they are able to run that big a show at all without breaking up internally, actually.  They have a long way to go yet to bring their people out of poverty other than the few new billionaires, and there will for sure be some bumps on that road, already some are showing.  It will be interesting to see if they handle them in any better, or even different way than others -- learning opportunity no matter how it turns out.

They don't seem to be as good at innovation as we were -- emphasis on the past tense, as I don't see us doing all that well there these days either.  I do recall we used to say the same about the Japanese, and it didn't stay true all that long.  And we've now made ourselves real easy to beat in any space race, for just one example.  Not to quote a guy I don't like much, but "quantity has a quality all its own".

 

They like to gamble -- it's one of those tendencies that do vary a little with genes it seems.  They might overtake us in trading for that reason at some point, anyone who loves a game does get good at it.

Mon, 07/25/2011 - 11:05 | 1490510 newbee
newbee's picture

Long term PM's up.  Short term, I don't trust any of this crap.  Sucker the little guy in by the boat load, then the big boys pull the plug. Buy PMs for the long term.  Good luck if you try to time it.

Mon, 07/25/2011 - 11:06 | 1490516 Idiot Savant
Idiot Savant's picture

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.

Nice post, but he must not pay much attention to the market. The market levitates when there's no negative news, or when the news is bad, but not as bad as expected. No one knows how long this can go on, but the beaches are littered with dead shorts that bet against Bernanke.

Mon, 07/25/2011 - 11:06 | 1490517 Trifecta Man
Trifecta Man's picture

And we are at these highs in precious metals despite the obvious corrupted CFTC allowing the bankster shorts to commit financial terrorism at the COMEX.

Mon, 07/25/2011 - 12:35 | 1490877 Harlequin001
Harlequin001's picture

yes

Mon, 07/25/2011 - 11:09 | 1490521 mogul rider
mogul rider's picture

I sold some today. In fact I'll sell more now that some smhuck who has 30 ounces of silver says he was right. Boy the pumpers are everywhere it seems.

contract settlement cometh - you know what that means.

Boehner just got a call to setlle and gold peels back to 1560.

Only time will tell. But exuberance is everywhere which means the fish are left in the pond.

 

Time to get out of the pool and get a margarita

Mon, 07/25/2011 - 11:15 | 1490552 BaBaBouy
BaBaBouy's picture

Who cares when its going to $3k $5k $15K ???

 

I sold my Zarlink at 45 cents doubling my money and thinking im a genious, where its at $3.75 today.

 

Are you a genious too?

Mon, 07/25/2011 - 11:23 | 1490579 Silver Dreamer
Silver Dreamer's picture

No, but he may be a genius.

Mon, 07/25/2011 - 12:43 | 1490921 DCFusor
DCFusor's picture

This is how I've been playing my non core position as well, and I sold all the paper at open this AM, and it's looking like it was smart -- I'd only opened the trade last week on the dips.

I tend to sell big green numbers and look for the chance to get back in.  You don't say "gee that's it" and then whine if something continues up -- you just didn't get back in when you should have.

And yeah, gold back to 1560 or thereabouts, I'm going to back up the truck - again.  I actually find it easier to time and trade than a lot of other things, with the comfort that all the gold bugs ain't gonna let it totally tank.  But I'm in a position of having to kill to eat, not just store value, so I trade as well as hold.

Mon, 07/25/2011 - 11:09 | 1490530 cat2
cat2's picture

Darn you Tyler, it's stories like this that make we worried about my long posistion...

Mon, 07/25/2011 - 11:11 | 1490538 BaBaBouy
BaBaBouy's picture

The Money Changing game is just fabulous.

Mon, 07/25/2011 - 11:14 | 1490548 Lmo Mutton
Lmo Mutton's picture

I lost all my silver in a boating accident.

 

Bummer.

Mon, 07/25/2011 - 11:27 | 1490591 Silver Dreamer
Silver Dreamer's picture

The same thing is happening to firearms in Virginia too since it is perfectly legal to sell face to face to another resident.  Yeah, I owned that firearm at one point, but honestly I couldn't tell you the name of the dude that showed me a valid VA driver's license to buy it years ago.  Sorry Mr. Government Agent.  Oh, and who knows how many I have, for I buy them in the same fashion.

It may be wise for folks with enough cash to be buying PM's to be following a similar purchasing plan.

Mon, 07/25/2011 - 12:43 | 1490922 Harlequin001
Harlequin001's picture

'It may be wise for folks with enough cash to be buying PM's to be following a similar purchasing plan.'

No need, mine got hit by a fucking asteroid...

Mon, 07/25/2011 - 12:14 | 1490781 Strider52
Strider52's picture

I think mine was stolen. I had it in the back yard, then I got a dog, and he likes to dig stuff up. I don't really know what happened to it. All I know is that I *used* to have gold & silver, now I don't.

Mon, 07/25/2011 - 12:45 | 1490913 Harlequin001
Harlequin001's picture

phew, that will save you from being 'grassed up' if you ever had tried to sell it.

I don't suppose your dog's for sale is it perchance?

Mon, 07/25/2011 - 14:17 | 1491277 Strider52
Strider52's picture

Are you kiddin Harley? Do you know how much a gold-sniffin' dog is worth?

Mon, 07/25/2011 - 18:08 | 1492242 s2man
s2man's picture

I sold my gold back to Kitco.  Now, I officially do not own an PMs. 

Oh, I have a feeewwwww US silver coins around here, somewhere, which I pick up at the coin shop, occasionally, for cash.  All currency exchanges, none the less; no sales tax involved.

US coins are easily recognizable. denominable, and legal currency, an added bonus over bullion.

Mon, 07/25/2011 - 11:21 | 1490570 Caviar Emptor
Caviar Emptor's picture

A nostalgic look back at the Wrongo!! propaganda warfare since the crisis: 

-Jan 28, 2010: "the ultimate asset bubble is gold" -George Soros, Davos Conference 2010 (Gold up over 30% since that remark)

-CNBC interview on, interestingly, March 9th, 2009"I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KOnews,msgs) will be making money, and I think Wells Fargo (WFCnews,msgs) will be making a lot of money and . . . it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that." -Warren Buffet (Gold up 76% since that remark)


Mon, 07/25/2011 - 11:30 | 1490600 BaBaBouy
BaBaBouy's picture

I'd rather stare at my Gold, than at that Smiling Old feck from Omaha still driving his Plymouth Reliant...

Mon, 07/25/2011 - 12:03 | 1490732 Monedas
Monedas's picture

He's trying to set an example of a compassionate, NWO, Socialist man ! He gives Orchids to the swine and draws his nutrients from pig farts ! Monedas 2011 Monedas' mother was bred and born in Nebraska......and she's a better role model for life than that "Pig Fucker" from Omaha !

Mon, 07/25/2011 - 11:43 | 1490664 firefighter302
firefighter302's picture

The "Oracle" of Omaha made a similarly mis-timed trade in silver, if my memory is correct. Didn't he sell his position, right before silver took off like a rocket?

 

Mon, 07/25/2011 - 11:59 | 1490720 NotApplicable
NotApplicable's picture

He was forced to sell it in order to remain a bankster in good standing. Can't have outliers openly hedging against their own currency, you know. Looks bad.

Mon, 07/25/2011 - 12:31 | 1490853 Broomer
Broomer's picture

And this, kids, is what happens to everyone who brags about their PM holdings in public.

He got his... confiscated, so to say. If he had them secretly he wouldn't have to sell.

Mon, 07/25/2011 - 12:42 | 1490904 BaBaBouy
BaBaBouy's picture

Ya'll probably right.

 

Was Soros also threatened?

 

Chinee say nothing, Butt are probably buying every unencumberred Ounce they can get their mangy little hands on...

 

Note that during the 2008 "Crisis", the Old Omaha Man, bought Sacks shares, and also lent them 5 Bill I think.

 

Lots of circumstantial evidence to be found under every dirty mattress...

Mon, 07/25/2011 - 12:56 | 1490979 Monedas
Monedas's picture

Remember our dear, departed brother Oral Roberts ?         Could it be, Warren Buffet, Pig Sucker in chief, has "oral soros" on his tongue from porcine herpes ! The "Oral of Omaha"...."Oral Buffet" ! Monedas 2011 Comedy Jihad Oral Stylings

Mon, 07/25/2011 - 13:04 | 1491012 Monedas
Monedas's picture

Jimmy Buffet....Oral Buffet.....uh ? Hey, being a poet is like making pig sausage.....it's not pretty to watch ! No apologies implied nor warranties proffered ! Monedas 2011 Comedy Jihad Sausage Stuffin'

Mon, 07/25/2011 - 13:18 | 1491068 DoChenRollingBearing
DoChenRollingBearing's picture

I look forward to the Monedas 2011 Global Jihad Comedy Tours.

2012 too.

2013...

Mon, 07/25/2011 - 23:32 | 1493323 Monedas
Monedas's picture

DoChen ! Thanks ! This post is to direct you to a Do Chen tribute on page two ! You have achieved number 1 fan status and all the privileges thereto ! Monedas 2011 Maybe your company can produce my "Gastro-Globes" ? I'm thinking perforated balls would be difficult to clean !  Smooth silver balls, maybe with a hollow space inside, about the size of marbles or the diameter of a dime ! Solid silver balls might be too heavy ! Pure silver ..... no plated crap ! Well, maybe an economy line or a trainingg-wheels line for the working class ! What think ?

Mon, 07/25/2011 - 11:25 | 1490574 moonstears
moonstears's picture

BARBAROUS RELICS! YOU CAN'T EAT THEM...uhh...waitaminute...

http://money.cnn.com/galleries/2008/fsb/0807/gallery.most_expensive_foods.fsb/index.html

Mon, 07/25/2011 - 11:23 | 1490577 bikeluv2
bikeluv2's picture

I really liked this article a lot - it is straight to the point and very correct in all of its' assertations.   People are just not that aware how corrupt our banking system is and those who placate the bankers are benefiting one way or another from their crimes.  I recommend Max Keiser to those who want a fun and quick way to understand what is going on - Max is great with his analysis and is calling it the way it really is.  Love that Zero Hedge is one of his main links - you guys seem to get more on with the details and sometimes your debth is awesome.  Keep up the good reporting and truth telling.  America needs to get their head out - we have been living way beyond our ability to keep the facade going way too long.  It is amazing how people still embrace the huge houses, big suvs, shopping and all that is American - and want it to keep on going - when will we ever learn?  I guess for a society to really change it takes a massive amount of pain - sometimes those with a very large threshold need that much more!!  Americans have a large threshold for all  things big and grotesque.  We had better get the paddles ready and get ready to yell - clear!!  Can you say - triple bipass anyone (QE3)?  

Mon, 07/25/2011 - 11:41 | 1490653 moonstears
moonstears's picture

bikeluv...what you say is sound. Much of what Max says, too. HOWEVER...RT, Keiser's employer, is/was created a Kremlin tool. I point this out because many here (rightly) bash the US MSM, but think RT is unbiased. Grain of salt, think agendas. It is sad, that the leadership in the USA, thinks that the 10% in power, can distribute the wealth of the 40% or so who create it, to the 40% who produce naught, yet benefit from the votes, and the 10% who illegally immigrate. The ponzi will fail, if no jobs are allowed to proliferate, period. This is the failure in DC, there will be no "jobless recovery". Capitalism must prevail if we are to succeed going forward as a prosperous nation. (note to prying eyes: I'll let Mr. Obamanator borrow that catchphrase, if he desires)  

Mon, 07/25/2011 - 12:11 | 1490768 EFNuttin
EFNuttin's picture

It is amazing how people still embrace the huge houses, big suvs, shopping and all that is American - and want it to keep on going - when will we ever learn? 

A friend just sold her house to move a few hours away into a house for her, the retired husband, and the one grown child.  The house has 4 bedrooms, 3 baths, and is 2400 square feet.  She has a great job in financial services, but how long do people expect they can stay near the top of this pyramid scheme?  It's not like she owns this firm or any piece of it.  The fraud is over, downsize, grow your own food, forget about the helping hand from Big Brother.  Don't end up starving like so many did in the First Great Depression.

 

BTW, "all that is American" was not big houses, SUV's and so on just a few decades ago.  Back then, taking care of your family really was the focus, not wowing the neighbors with facades purchased with borrowed wealth.

Mon, 07/25/2011 - 11:38 | 1490592 digalert
digalert's picture

If we didn't have that damned 2012 election coming, the FED could do bank repo's. But no, we must re-elect Mr. TOTUS and Barama too. The Bernank has reportedly done a turbo-jet upgrade to his airforce $ fleet. The cancerous de-population contrails you see daily will be supplemented with confetti fiat across the land until the serfs on their knees submit.

disclaimer: I own the "barbarous relic" as well as the bastard stepchild silver.

Mon, 07/25/2011 - 11:29 | 1490595 sunnydays
sunnydays's picture

He forgot to mention how Jon Nadler has been saying for the past year, Gold will drop to around 550 to 700 - it's real value.  If people have been listening to Nadler - they are still sitting on their fiat money and waiting for that drop Nadler has promised will happen over and over again.

 

OH wait.... was Nadler wrong?  The anaylist for Kitco - a gold and silver company wouldn't try to keep people from buying gold and silver now would he?   Nadler still says Gold and silver are bad investments.  You have to wonder if he will ever give up in trying to talk people out of metals.

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