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Guest Post: Is Gold Still The Answer For Investors?

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Tue, 11/22/2011 - 22:04 | 1905074 Cognitive Dissonance
Cognitive Dissonance's picture

Last paragraph.

"Even higher prices than mentioned here are possible from the flight to safety out of the euro, the seasonal rise into the new year, and the accelerating action of gold from a shift in sentiment of the investment public to a relatively small market. Gold is by far the best "answer," and now is still the best time to invest."

I think my confirmation bias has just been stimulated.

Was it as good for you as it was for me?

Tue, 11/22/2011 - 22:09 | 1905099 paarsons
paarsons's picture

Everything with gold going forward is going to depend on Europe and interest rates.

If we go into a deflationary cycle, the gold bugs are screwed.

But what do I know?

http://fucklloydblankfein.blogspot.com

Tue, 11/22/2011 - 22:15 | 1905118 I think I need ...
I think I need to buy a gun's picture

thats bullshit,,,,,so what your saying is my dad will be rich from his federal pension/social security because gas will drop to $2.00 and he'll have PLEENNTTYYY of money to travel the world with right?

 

We are next after Europe buy my guess is they will catch it before that happens and revalue the supply........

Tue, 11/22/2011 - 22:29 | 1905176 He_Who Carried ...
He_Who Carried The Sun's picture

Gold? Who the fuck cares about that shiny piece of useless rock?

Can you eat it, can you put it in to your gas tank?

I invest our money in companies where people actually work hard to earn a living. The institution I work for entirely agrees...

Timing and Patience are key...

Tue, 11/22/2011 - 22:34 | 1905199 flacon
flacon's picture

paarsons,

 

When you first came out with your blog, I used to read it. I liked it. But then after a few days I was questioning some things you said. And now I have to question if you yourself are Lloyd Blankfein fucking himself... 

 

What on earth are you smoking? Of course we are about to enter a hyperDEflationary collapse, and that is the best time to own GOLD AND SILVER. There is no "out" for bankers in a hyperDEflationary collapse, and that is why they ALWAYS PRINT MORE MONEY, which isn't really hyperinflation, since we already had hyperinflation, that is CURRENCY DESTRUCTION. 

 

I think it's advisable for everyone to own SOME paper cash to hold them over for a few months as the iPress is lubricated with extra terrabytes, but seriously... what's up with you?

Tue, 11/22/2011 - 22:40 | 1905229 JW n FL
JW n FL's picture

 

 

http://www.zerohedge.com/news/presenting-swiss-black-loch-ness-monster

The SWISS have Printed 300% + in 2011.

http://research.stlouisfed.org/fred2/series/BASE

We have Printed? well I'd rather not say how much..

 

and to answer your question..

 

NO!

N... O... SPELLS NO!

Gold does NOT! cost any more than it used too.

Paper Money is just Worth! LESS!!

 

Now if you can NOT! figure out the facts with the information provided.. You should hurry and go Vote for whoever "Your Gut" tells You too Vote! For!!

 

Ignorance is Bliss!

Stupidity is Heaven!!

and!!!

you (nor I) can fix stupid.

 

Guns!

Gold!!

and..

Nickels!!!

 

Tue, 11/22/2011 - 23:09 | 1905353 flacon
flacon's picture

Please watch this video. Very important (4 mins): 
 
http://www.youtube.com/watch?v=fE_nXrbpXis 
 
A timetable for collapse: After Christmas?

 

It's possible that M(other) F(#$%$R) Global was a COMEX default.... seize the assets, don't deliver... and it's over... 

Tue, 11/22/2011 - 23:42 | 1905458 flacon
flacon's picture

 

The "currency supply" is M2, NOT M0. But M2 has not yet been MONETIZED. M2 has already started the process of hyperDEflating, which will wipe out banks, and since banks ARE governments it will wipe out governments. Just suppose one had the God-power to iPrint more money, then one could save the banks/governments while destroying the currency. That is what is happening. We already had hyperinflation - where do you think $1.4 Q.U.A.D.-RILLION of derivatives comes from? THAT is hyperinflation. The printing of money is to stave off the hyperDEflation. 

 

It's partly a matter of symantics and word definitions. What most people think of hyperinflation (printing like mad) is not actually true hyperinflation - that is CURRENCY DESTRUCTION which happens AFTER hyperinflation has already happened, which it has. QUADRILLIONS. There aren't enough planets, stars, galaxies to pay that off, so the only logical thing to do is to DESTROY THE MEASURE OF WEALTH, which is the US Dollar. 

 

Don't worry when you hear me say that gold thrives in hyperDEflation, I am two steps ahead of most. In Germany when they were in the process of destroying their currency, they had TRILLION MARK NOTES, and the central planners said: "There is LESS MONEY NOW THAN WHEN WE STARTED PRINTING"!!!! OMG! READ THAT AGAIN! NOT ENOUGH MONEY... SO... PRINT MORE ZEROS AND MAKE MORE MONEY TO STOP HYPERDEFLATION!

 

Wed, 11/23/2011 - 00:04 | 1905495 flacon
flacon's picture

When it comes time to "sell your gold" (trade it in for real hyperdeflated assets, like a car or a house or whatever), just tell your bank branch manager to procure for you a tax exempt document from your country's tax collection agency. No capital gains taxes. At that time, what will a bank most covet, owning a car, or owning YOUR GOLD? They want your gold. So give it to them in exchange for their assets. You might even be so bold as to ask for them to pay YOU a tax at that time (discount for paying in gold). A 35% tax refund FROM YOUR BANK TO YOU wouldn't be too unreasonable to ask for. Don't you think that the "elite" will do this? There will be no capital gains taxes on giving your gold to the government (banks (one and the same)). Period. None!

 

(who makes the laws? The "lawmakers" do. Who are the "lawmakers"? They are the BANKS! "Give me control of a nation's money and I care not who makes the..... the what? THE LAWS!)

 

Do you think Bill Clinton will pay "capital gains taxes" when he comes to exchange his gold for real assets? HELL NO!

 

 

Bill Clinton: Going Off Gold Standard Is Cause of Financial Inequality

 

http://www.youtube.com/watch?v=dxIocPUfw0g

 

 

Wed, 11/23/2011 - 00:50 | 1905652 JW n FL
JW n FL's picture

 

 

http://www.youtube.com/watch?v=KheJE71GzpA

Uploaded by RussiaToday on Nov 22, 2011

Watch the full Keiser Report E213 later today. Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host, Stacy Herbert, discuss the Koch Brothers and MF Global and Northern Rock and Richard Branson's blonde hair and big, shiny teeth. In the second half of the show, Max talks to independent radio journalist Richard Thomas about Occupy LSX, poll tax riots and financial apartheid.

KR on FB: http://www.facebook.com/KeiserReport

 

Wed, 11/23/2011 - 01:27 | 1905727 SGS
SGS's picture

Those nipples in that avatar are terrible.  holy FUCK!

Wed, 11/23/2011 - 00:08 | 1905541 GenXer
GenXer's picture

Celente is just angry because Corzine stole his gold.

Wed, 11/23/2011 - 00:16 | 1905571 Vic Vinegar
Vic Vinegar's picture

Celente is also angry because: the McRib didn't live up to the hype / Gossip Girl was on re-runs this week / he is a hypocrite who sells fear to the semi-washed fringe. 

Wed, 11/23/2011 - 00:31 | 1905621 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I'm still trying to figure out what the hel Celente was doing trading futures.  I thought he was 'bout physical.  Shit....

Wed, 11/23/2011 - 05:04 | 1905918 Gief Gold Plox
Gief Gold Plox's picture

I am not entirely sure whether the EU all out crises can be efficiently subdued till christmas. I hope so as It means a few more pay-checks for gold purchase for me, but I doubt it.

Tue, 11/22/2011 - 23:45 | 1905479 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold does cost more.  It's production peaked a decade ago.  It's price is rising because its supply is decreasing.

Tue, 11/22/2011 - 23:51 | 1905491 Deadpool
Deadpool's picture

wrong. it grows about 2% a year...about same as population of Earth. an oz is an oz. it's the dollars that are losing value.

Wed, 11/23/2011 - 00:09 | 1905544 tmosley
tmosley's picture

Exactly.  Poak X idiots cant tell the difference between hard money and consumables.  Gold production could stop tomorrow and the effect would be minimal.

Wed, 11/23/2011 - 00:19 | 1905583 Deadpool
Deadpool's picture

silver is in decline and what comes out of the dirt gets used up in industry creating a wonderful supply demand imbalance for investment, but 100:1 leveraged COMEX price suppression hides that fact.

Wed, 11/23/2011 - 00:29 | 1905612 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold peaked production a decade ago.  It has had a bounce due to demand, but unless we break out, I am saying it peaked production.

Gold Production:

http://investmenttools.com/futures/metals/welcome_to_the_page_about_gold.htm#worldgoldprod

Tue, 11/22/2011 - 22:40 | 1905231 He_Who Carried ...
He_Who Carried The Sun's picture

Gold only works well in an inflationary and recklessly leveraged environment which we won't see again until this pile of shit is de-leveraged i.e. another 10 to 15 years depending on who gets it first regarding much needed austerity.

Gold is for those from yesteryear who still bet on QE3,4 and 5. Game over folks. Merkel will win which means austerity and de-leveraging and financial sanity will come back!

Central banks use Gold as some artificial stability anchor but that game won't last forever.

PM's are in for some rude awakening.....

Tue, 11/22/2011 - 22:48 | 1905267 flacon
flacon's picture

You know, I was outside smoking a cigarette, and I thought of all the houses in the world where there is a mortgage, and then I thought, where on earth will all the money come from to pay off all the mortgages, credit card bills, car loan payments, student payments, BOND HOLDERS PAYMENTS etc. if you look at M0, it has grown, but if you look at M2 it has hyperinflated. The problem is, you can't get a "PAID IN FULL" rubber stamp on your debts by BORROWING more money. You have to use M0. And there just isn't enough M0 to go around. They have to "iPrint" it.

 

 

Tue, 11/22/2011 - 22:52 | 1905294 He_Who Carried ...
He_Who Carried The Sun's picture

Relax. They'd have to declare a war on us the people. They won't as we're quite a force and they want to get re-elected as well...

Tue, 11/22/2011 - 23:48 | 1905485 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

So when gold doubled during the great depression, that was inflationary?  Get your facts straight and come back to the grown ups table when you do. 

Wed, 11/23/2011 - 00:43 | 1905638 Reese Bobby
Reese Bobby's picture

The kid is an idiot: "I invest our money in companies where people actually work hard to earn a living. The institution I work for entirely agrees..."

Now those are the words of an underling somewhere on the buy-side of finance.  The more junior they are the more important they think they are.  His type don't last in the business because nobody can teach them anything and they never learn from their mistakes.  Note he has been haunting this site long enough to learn a lot but his brain is impervious to the knowledge ZH offers.

But I grant you, he should STFU and try and learn something.  It's just not going to happen.

Wed, 11/23/2011 - 14:05 | 1907451 Robot Trader's ...
Robot Trader's brother's picture

I think he meant to say the institution where he lives....

Tue, 11/22/2011 - 22:47 | 1905271 SHEEPFUKKER
SHEEPFUKKER's picture

GLTU my friend. 

Tue, 11/22/2011 - 22:50 | 1905283 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

How much do you make pimping for the New World Order.  I am sure your mother would be proud!

Tue, 11/22/2011 - 23:06 | 1905338 jeff montanye
jeff montanye's picture

you are mistaken, "callimmamman".  historically both gold and gold miners do well in deflationary periods with low real interest rates, following the ends of credit cycles.  the metal anticipates inflation by years.  see http://www.oilngold.com/analysis/research/gold-a-gold-stocks-during-peri... and http://www.hussman.net/html/gold.htm  john hussman is currently over weighting gold stocks in his strategic portfolio.

Tue, 11/22/2011 - 23:14 | 1905375 malek
malek's picture

Dream on!
And by the way, why don't you answer the question a few posts up:

so what your saying is my dad will be rich from his federal pension/social security because gas will drop to $2.00 and he'll have PLEENNTTYYY of money to travel the world with right?


Tue, 11/22/2011 - 23:22 | 1905399 Bansters-in-my-...
Bansters-in-my- feces's picture

Hey FuckTard...

Banks use Gold because of "tradition".

Don't you listen to your leaders,,,?

Tue, 11/22/2011 - 23:46 | 1905481 tiger7905
tiger7905's picture

It seems Sprott is shaking things up by buying $1.5 billion in silver.

http://goldandsilverlinings.com/?p=1751

Wed, 11/23/2011 - 00:02 | 1905526 Toxicosis
Toxicosis's picture

And this projection of "financial sanity" is based upon what intensive analysis of the global debt issues you have provided to us here at Zero Hedge?  Central banks use "fiat" as artifical stability, not gold.  If gold was presently used, why would they print dollars?

 

Either you're ignorant, stupid, incompetent, or all three.  I'm vouching for all of them as you're so out of the loop or just entirely sociopathic you can't tell asshole from your elbow.

Wed, 11/23/2011 - 00:11 | 1905550 tmosley
tmosley's picture

So you are saying gold will be crushed because this time will be different.

How uninsightful.

Wed, 11/23/2011 - 00:23 | 1905591 FutureShock
FutureShock's picture

Yeah well read your first line, we have hardly seen the results of the recklessly leveraged environment. The Fed covered up 2008 and we have every state pension plan and US credit default swaps leveraged in banks plust more leverage in europe like no one has ever seen. Merkel is in a loose loose deal and Germany gets hosed either way, it is just how bad. Will they leave the Euro or will the PIIGS.

There never has been fincancial sanity, the entire fractional system is ponzi dependent on growth and the debt is not fixable. Gold could be up huge in 12 months or another 5 years. Creative can kicking is gold's only true enemy that can win battles but never the war.

 

 

 

Wed, 11/23/2011 - 00:23 | 1905592 FutureShock
FutureShock's picture

 

 

Wed, 11/23/2011 - 09:20 | 1906255 Calmyourself
Calmyourself's picture

5,000 years of history as the only stable "money" and central banks use it as a

"artificial stability anchor"

Nice boobs but you have to leave them alone once in a while and read a book..

 

 

Tue, 11/22/2011 - 22:47 | 1905274 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Agreed Mr. P!  In 98 years the privately held federal reserve has caused a 98% devaluation in the fiat federal reserve note.  Even some of the paper pushers who visit this site can see that a trend has been established here. 

Yes, keep some green fiat around in the event of bank runs and or a brief deflationary spiral, but there is no doubt the final two percentage points will be taken out in time probably within the next few years if not sooner.  Thereafter, inflation will rule the day and the today's paper pushers will be huddling in pathetic groups in the woods building camp fires using federal reserve notes as kindling!

Wed, 11/23/2011 - 01:55 | 1905772 Freddie
Freddie's picture

LOL!  I said the same thing last night.  I bet this prick is Lloyd the squid of Satan. 

+1

You nailed it flacon - currency destruction.

Gold will still be gold while paper will be worthless.

Tue, 11/22/2011 - 22:37 | 1905214 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Thank you for not buying metals so the rest of us who have common sense have more to buy.

Wed, 11/23/2011 - 00:06 | 1905537 Toxicosis
Toxicosis's picture

Shills and trolls buy metals.  Their paid to be sociopathic predators on websites such as this.  But if it's not a "paper" shill than yes the more metals for us the better.

Tue, 11/22/2011 - 22:38 | 1905218 flacon
flacon's picture

He_Who Carried,

Are you some sort of seahorse? Pregnant male?

 

In a time of hyperDEflation, which we are about to experience, the best asset is gold. DEFLATION is mathematically impossible to stop, no matter how much iDollars they inject into the system. GOLD ALWAYS DEFAULTS TO REAL ASSET IN A HYPERDEFLATION SCENARIO LIKE WE ARE ABOUT TO ENTER. The useless task of PRINTING MONEY is not actually hyperinflation, it is CURRENCY DESTRUCTION. Hyperinflation already happened.... NOTHING WILL STOP HYPERDEFLATION. 

Tue, 11/22/2011 - 22:46 | 1905268 He_Who Carried ...
He_Who Carried The Sun's picture

Hyperinflation? What are you talking about?

When is the last time YOU paid 200.000 US$ for a piece of bread?

Real deflation is just about to start and when it ends, bread will be sold for a nickel again or whatever our currency will be called by then...

Its going to be awful, but we can not do anything about it, else we'll burn our children's future. We've had our party from the late 70ies to the nineties. Now its time to pay for that and de-leverage.

Tue, 11/22/2011 - 22:52 | 1905295 SHEEPFUKKER
SHEEPFUKKER's picture

My friend, and exactly how will that 15 trillion dollar debt get paid off in your superdeflationary world? Superdeflation to me means millions more people lose their jobs and get foreclosed upon which will result in a hyperbolic rise in the national debt.  

Tue, 11/22/2011 - 22:58 | 1905327 He_Who Carried ...
He_Who Carried The Sun's picture

Exactly that is what will happen. Did you see them care so far? They did not care shit. All they came up with was some QE stupidity which helped some bankster to survive but sent thousands in to tent cities. Did they care? There is no other way, look at what Canada did in the nineties. They were lucky as Chinese demand was picking up and the world needed their commodities. We must stop fighting wars in idiotic corners of this world an pay zillions to Halliburton and the 6th fleet and come to our senses!

Tue, 11/22/2011 - 23:06 | 1905359 SHEEPFUKKER
SHEEPFUKKER's picture

So plunging home prices, OFFICIAL unemployment at say 20%, and skyrocketing national debt to say, i dunno, 25 trillion? That is your scenario? The civil war will start long before that happens my friend. 

Tue, 11/22/2011 - 23:31 | 1905427 He_Who Carried ...
He_Who Carried The Sun's picture

Both paths are quite scary, agreed!

Tue, 11/22/2011 - 23:32 | 1905434 SHEEPFUKKER
SHEEPFUKKER's picture

Finally something I agree with you. 

Tue, 11/22/2011 - 23:37 | 1905454 He_Who Carried ...
He_Who Carried The Sun's picture

You needed that, eh? I knew it!  ;-)

Wed, 11/23/2011 - 14:07 | 1907457 Robot Trader's ...
Robot Trader's brother's picture

I look at the nipples and then know to hit the red triangle......

Don't change the avatar, please.......

Do NOT follow this link or you will be banned from the site!