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Guest Post: Gold Tells The Truth

Tyler Durden's picture





 

Submitted by John Aziz of Azizonomics

Gold Tells The Truth

One of gold’s greatest powers is that it is a unit of account which cannot be fudged nearly as easily as the fiat all-you-can-print buffet.

Feel like your wages are buying less in real terms?

They are:

Feel like your dollar is buying less, even though the financial press claims that the dollar is strong?

It is buying less — but so are the other fiat currencies:

Feel like the housing bubble hit you hard?

It hit you harder in gold-denominated terms:


Feel like you have less disposable income?

You do:

Feel like U.S. treasuries are really falling in value, even though the popular press keep telling investors that treasuries are priced at all-time highs?

John Maynard Keynes, Charlie Munger and Warren Buffett all said or implied that gold was a barbarous relic. But what’s the barbarous relic? The precious metal that shows prices without a veneer of manipulation, or the paper currency that smudges the true state of supply and demand through money printing, thus misleading markets and society? Charlie Munger says gold is not for civilised people, but in reality gold may be the most civilised currency of all — because it allows civilised people to purchase insurance against the risk of civilisation failing.

A central bank can claim to have demonetised gold. It can claim gold is a barbarous relic (even while keeping thousands of tonnes on its books), or just an “instrument to hedge tail risk” (although Jamie Dimon surely disagrees — J.P. Morgan prefers to “hedge tail risk” by making huge speculatory prop bets on credit derivatives).

But gold is still gold. It’s still that same shining yellow metal that investors have for thousands of years held up as a unit of account and store of value, and a medium of exchange.

Central bankers can’t just abolish history. On the other hand, history may very well abolish the central bankers and their fiat currencies.

 


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Thu, 05/17/2012 - 13:23 | Link to Comment Aziz
Aziz's picture

I am a barbarian!

Thu, 05/17/2012 - 13:25 | Link to Comment t_kAyk
t_kAyk's picture

Truth is in the eyes of the beer-holder. 

Thu, 05/17/2012 - 13:33 | Link to Comment idea_hamster
idea_hamster's picture

"But what’s the barbarous relic?

The precious metal that shows prices without a veneer of manipulation, or the paper currency that smudges the true state of supply and demand through money printing, thus misleading markets and society?"

Well, if you're going to ask and answer your own questions, then there isn't much room for a conversation, is there.

Thu, 05/17/2012 - 13:56 | Link to Comment mcguire
mcguire's picture

the problem is that recently, PM prices have failed to tell the truth..

Thu, 05/17/2012 - 15:01 | Link to Comment citta vritti
citta vritti's picture

for me, I'm no longer sure I know that any one day's pricing in PMs' various markets, has much truth to tell beyond that transactions occurred in the price ranges reported, and even that can be suspect.

maybe the truth is the PMs are pushed down (or up) on any given day in fiat terms by market participants (yes, that officially includes the Fed, the ECB, central banks all over, etc., their banking and financialized minions (or do I have that backwards?), so their rise tomorrow will seem more in line with how everything else is rising as the fiat easings resume, continue or whatever it is they do, as Greece is now telling Germany they must if the EZ is to continue, never mind the hundreds of billions already provided; just a little more please, or I pull the pin on this grenade.

maybe the truth is that shifts in other asset markets (gimme some of that FB, or quick, we need cash to meet margin calls on our such-and-such position) are prompting some holders to sell what they think they can most easily, prompting buyers to bid ever lower in hopes of a better price.

maybe the truth is that participants more nimble than I see opportunity to go short, with every intention to stay or go long for the longer term.

lastly, and I think least likely, maybe the truth is that the decade long bull run for PMs really is over and done with -- or do I mean the decade-long (sorry, century-long, or pick a number between 1971 and 1913 as subtrahend from today) loss in value of the U.S. dollar (sorry, FRN). As to that, that really doesn't sound like the truth, at least until there is political consensus to change our financial and fiscal systems of borrow and spend our way to prosperity and happiness, though temporarily, for a day, a week, a month, a quarter, a year (yikes!) maybe that view will gain traction for long enough, or repeatedly enough, to dissuade me and many others from buying some PMs if we could: it both costs a lot of FRNs and it decreases in FRN price after purchase! What a deal! Now, where's that FB prospectus? Central Banking god Volcker acknowledged failure to control the price of gold was a mistake the Fed made in the late 1970s - 1981; you can be sure that lesson has not been forgotten (then again they're bureaucrats so maybe they make mistakes once in a while).

God bless us, every one.

Thu, 05/17/2012 - 13:27 | Link to Comment resurger
resurger's picture

+soap

Thu, 05/17/2012 - 13:28 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I am gloriously barbarous!

And I am at the gate.

Thu, 05/17/2012 - 14:06 | Link to Comment HarryM
HarryM's picture

Gold is like strapping a lie detector to every coniving , thieving , lying , bastard, manipulating scumbag politician.

 

 

Thu, 05/17/2012 - 14:11 | Link to Comment DaveyJones
DaveyJones's picture

there's not enough gold for that

Thu, 05/17/2012 - 21:58 | Link to Comment StychoKiller
StychoKiller's picture

One gold brick can be used numerous time on Bankster's skulls.

Thu, 05/17/2012 - 14:23 | Link to Comment Peter Pan
Peter Pan's picture

It's true that gold is not for civilzed people. Because if we were civilized we wouldn't be printing fiat crap, conducting wars for the benefit of corporations and leaving prople like Corzine off the hook. But because we ARE uncivilized we have this metal called gold which protects our wealth from our barbarous activities.

Thu, 05/17/2012 - 13:29 | Link to Comment tmosley
tmosley's picture

What is best in life?

Thu, 05/17/2012 - 13:41 | Link to Comment CuriousPasserby
CuriousPasserby's picture

To drink beer

holding your gun

looking at your pile of gold.

Thu, 05/17/2012 - 13:46 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Scratch that

Thu, 05/17/2012 - 13:55 | Link to Comment resurger
resurger's picture

Fucking Crazy Bitch! seriously what the fuck was that, a strap on ?!

http://www.youtube.com/watch?v=5a0Sz0AGjqs&feature=g-all-lik

 

Thu, 05/17/2012 - 14:56 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Microphone was what it seemed to be.  She reached up to her mic by her chest while fiddling with the monitor strapped to her leg.  Should be a strap on considering financial media like fucking us plebes in the ass anyway.

Thu, 05/17/2012 - 14:04 | Link to Comment HarryM
HarryM's picture

Speaking of guns, don't forget to stock up on bullets, they may end up being more valuable than gold.

Thu, 05/17/2012 - 13:47 | Link to Comment robertocarlos
robertocarlos's picture

Something about driving forth your enemies and hearing the lamenting of their women.

Thu, 05/17/2012 - 14:07 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Mongol General: Hao! Dai ye! We won again! This is good, but what is best in life?
Mongol: The open steppe, fleet horse, falcons at your wrist, and the wind in your hair.
Mongol General: Wrong! Conan! What is best in life?
Conan: To crush your enemies, see them driven before you, and to hear the lamentation of their women.
Mongol General: That is good! That is good.

Thu, 05/17/2012 - 13:32 | Link to Comment vast-dom
vast-dom's picture

labeling gold a barbaric relic is basically projecting : Charlie et. al. are the true barbarians that only give a fuck about money and control.

 

Munger get off the planet already!

Thu, 05/17/2012 - 16:51 | Link to Comment tocointhephrase
tocointhephrase's picture

and when you get there I hope its a very cold place, laced in gold and silver thats so bright it burns your vision, I hope you see hitler you fuking war mungering barbarian arse washer! (Sorry I had to get it out guys & girls)

Thu, 05/17/2012 - 13:32 | Link to Comment malikai
malikai's picture

<--- Barbar

<--- Mungerian

Thu, 05/17/2012 - 13:43 | Link to Comment TheGardener
TheGardener's picture

I regretably missed that Munger discussion. Too busy out hunting, deer season here.

Had a tale to tell about sown in quarter ducats :

When rumor spread in the ghetto that there was a transport
out, hope got carried away with expectations them heading for Palestine. Bribes flowed to be on the list.

When word spread it would rather be a way out through the
chimneys, even more bribes (gold ?)
were rendered to : get off the list

Thu, 05/17/2012 - 13:53 | Link to Comment TheGardener
TheGardener's picture

Even before that unfortunate boating accident, it has always been for the day after which might never ever arrive.

But now as we assembled here with all the treasure sunk, let's talk about the future. Or, the future of others being our past, our new order, not theirs.

Thu, 05/17/2012 - 17:20 | Link to Comment eaglefalcon
eaglefalcon's picture

I finally figured out why people bring their gold on fishing trips. It turns that a bag of gold is a good anchor. Unfortunately, the rope of often snaps for no reason. Thus their hoards end up in the bottom of lakes

Thu, 05/17/2012 - 13:45 | Link to Comment TonyCoitus
TonyCoitus's picture

Hello, my name is Tony Coitus, and I'm a barbarian.

Thu, 05/17/2012 - 14:12 | Link to Comment William113
William113's picture

You may be a barbarian. But your not an illegally elected President. OOOOOPPPSS. Even in death Mr. Brietbart makes us smile.

http://www.breitbart.com/Big-Government/2012/05/17/The-Vetting-Barack-Ob...

 

 

Thu, 05/17/2012 - 13:25 | Link to Comment EscapeKey
EscapeKey's picture

Gold holds governments accountable, and we can't have that now, can we.

 

Thu, 05/17/2012 - 13:57 | Link to Comment Raymond K Hessel
Raymond K Hessel's picture

Gold holds governments accountable?!

 

Nothing holds governments accountable.  

 

You can book that.

Thu, 05/17/2012 - 14:15 | Link to Comment DaveyJones
DaveyJones's picture

revolutions are a rather abrupt accounting method

with an emphasis on subtraction

Thu, 05/17/2012 - 20:41 | Link to Comment WhiteNight123129
WhiteNight123129's picture

I beg to disagree, in the country where I was born, we had the hyper-inflation boosting drastically the work of Antoine Louis. Joseph-Ignace Guillotin proposed the machine as an execution system, hence the word guillotine. Now we can argue if that holding rulers accountable, however the paper experiment had to end by 1796-1797. Lots of government figures lost their heads in that period, the game was who will guillotine who and who be last with his head attached to his neck... :-) 

Thu, 05/17/2012 - 20:41 | Link to Comment WhiteNight123129
WhiteNight123129's picture

I beg to disagree, in the country where I was born, we had the hyper-inflation boosting drastically the work of Antoine Louis. Joseph-Ignace Guillotin proposed the machine as an execution system, hence the word guillotine. Now we can argue if that holding rulers accountable, however the paper experiment had to end by 1796-1797. Lots of government figures lost their heads in that period, the game was who will guillotine who and who be last with his head attached to his neck... :-) 

Thu, 05/17/2012 - 14:52 | Link to Comment Bizaro World
Bizaro World's picture

Silly serf, governments hold themselves accountable, just ask them, they'll reassure you. U.S. case in point: EPA suing DOD (Dept. of Defense) over past crimes against the environment, where, unfortunately, US citizens were exposed to high levels of known carcinogens. Gov't uses the US citizen tragedy to sue itself and grow in size....meanwhile, poor Aunt B died early and painfully from cancer and strapped Aunt B's family with debt of numerous medical care.

 

Or is that too cynical...

Thu, 05/17/2012 - 13:28 | Link to Comment ebworthen
ebworthen's picture

GOLD - the immutable economic barometer that 99.9% of reality allergic economists ignore.

Thu, 05/17/2012 - 13:30 | Link to Comment resurger
resurger's picture

because it's the fraud barometer eb

 

Thu, 05/17/2012 - 13:28 | Link to Comment LawsofPhysics
LawsofPhysics's picture

With all fiats dying it would appear that there is a reserve currency and one world standard after all, gold.  Imagine that, same as it ever was.

Thu, 05/17/2012 - 13:31 | Link to Comment resurger
resurger's picture

Amen

Thu, 05/17/2012 - 13:36 | Link to Comment bdc63
bdc63's picture

agreed ... it certainly is taking the world an excruciatingly painful amount of time to figure that out though ...

Thu, 05/17/2012 - 16:56 | Link to Comment tocointhephrase
tocointhephrase's picture

But precious Silver has not sung her last song. I hope its along the lines of Marley. Get up stand up, stand up for your rights, Jah!

Thu, 05/17/2012 - 13:29 | Link to Comment WALLST8MY8BALL
WALLST8MY8BALL's picture

Paper Rots. Gold resists corrosion with some extreme exceptions - Munger Buffet and Keynes will soon become the relics

Thu, 05/17/2012 - 13:30 | Link to Comment lordbyroniv
lordbyroniv's picture

MY ADVICE [channeling Munger]: "Suck it up everyone,...suck it up."

Thu, 05/17/2012 - 13:37 | Link to Comment bdc63
bdc63's picture

You're wasting your time Tyler.  If people haven't figured this out by now, then they deserve what they have coming to them.

Thu, 05/17/2012 - 13:34 | Link to Comment kralizec
kralizec's picture

Real or unreal?  I'll take real thank you very much!

Thu, 05/17/2012 - 13:34 | Link to Comment Dr. No
Dr. No's picture

I have one more chart, "Dr. No's holdings over time".... it is ramping up.

Thu, 05/17/2012 - 13:35 | Link to Comment BeetleBailey
BeetleBailey's picture

Long Gold.

Short (time left on earth) Munger and Buffet. Keynes is dead. Gold outlived him.

Thu, 05/17/2012 - 13:36 | Link to Comment xtop23
xtop23's picture

Tell me something I don't already know about Gold, instead of belaboring the obvious.

Felt like a GD Kingworld News article. 

Buy miners they're undervalued and metals are going higher !! Well no shit, Sherlock.

edit; And FUCK Charlie Munger too

 

Thu, 05/17/2012 - 13:43 | Link to Comment goforgin
goforgin's picture

When gold is @2,100 and NEM @100, the world is going to be a better place. LOL. BUY TRE!!!

Thu, 05/17/2012 - 13:37 | Link to Comment A_S
A_S's picture

gold went up

Thu, 05/17/2012 - 13:38 | Link to Comment semperfi
semperfi's picture

On a long enough timeline the survival rate for everyfiat drops to zero.

Thu, 05/17/2012 - 13:39 | Link to Comment XtraBullish
XtraBullish's picture

Silver looks like it could pop back to $33 in a hurry...here's my favourite junior...

http://thefundamentalview.blogspot.ca/2012/05/quick-update-on-tinka-reso...

 

Thu, 05/17/2012 - 13:39 | Link to Comment oldman
oldman's picture

Tyler,
Would you please send this to Robert Brusca?
He thinks we are in love with gold and cannot comprehend that we just use it as a standard of measuring the real world, although we do use it as a hedge against fiat(just in case, right?)
Thanks om

Thu, 05/17/2012 - 13:39 | Link to Comment walküre
walküre's picture

Demand for gold seems to be decreasing. Are miners producing a glut of gold and how will that reflect in the price? Miners have production cost of only several hundred dollar per ounce and current prices are multiples of that.

Those are a few aspects we should be discussing instead of just focusing on whether or not gold is a good investment or has safe haven appeal.

Thu, 05/17/2012 - 14:07 | Link to Comment lasvegaspersona
lasvegaspersona's picture

walkure

I think you have several facts wrong

mining costs are high

they aren't flooding the markets...it is sales of gold driving the price lower (paper, little physical)

markets are not reflective of supply demand anymore....be cautious...folks here don't care about the short term they are positioning for a big BANG SIZZLE POP

Thu, 05/17/2012 - 14:39 | Link to Comment jimmyjames
jimmyjames's picture

markets are not reflective of supply demand anymore....be cautious.

*************

You got it--

Thu, 05/17/2012 - 15:58 | Link to Comment walküre
walküre's picture

Mining costs are high..

The production costs for several miners are in the hundreds, not in the one thousand and hundreds.

Yet, you suppose everyone will buy gold at $1600 /oz just like lemmings are buying AAPL i-crap for $500 when their cost of production is $30.

Anyway, nice pop today across the entire sector including juniors. Let's see if it carries through or if it's more downhill from here.

 

 

Thu, 05/17/2012 - 18:32 | Link to Comment Vlad Tepid
Vlad Tepid's picture

But...people do buy Apple i-crap for $500 even though the production cost is $30 and they always have.  That's how an industrial economy works.

Because gold is not an industrial product the fundementals (not just the profits) support whatever people are willing to pay for it in the currency they hold.  Gold price is not a reflection of the supply and demand of the metal or even the whim of the miners, but a reflectionn of the relative strength or weakness of the currency it is purchased in.

Thu, 05/17/2012 - 22:16 | Link to Comment oldman
oldman's picture

@Vlad T

" Gold price is not a reflection of the supply and demand of the metal or even the whim of the miners, but a reflectionn of the relative strength or weakness of the currency it is purchased in."

Vlad, I don't know why but your comment above does not seem correct. I'm working intuitively, of course, so rationally I have no idea----

But, if gold drops to $1000 per and stays there for awhile--I think you will see a lot less mining---sort like the old afrikaners working the tailings when the price of gold was high. Why would any miner develop a property where the costs were more than $400-550 when he is only going to get a grand minus expenses.

This currency thing, at least for the US, is a recent development and while it is obviously true----mining has been going on a long time. 

And it actually is one of the most ancient of all industrial products---been working gold for decor and jewelry for how many thousands of years?

I guess that's all I have to say---thanks for the provocation, it got my mind going again         om

Thu, 05/17/2012 - 14:36 | Link to Comment jimmyjames
jimmyjames's picture

Demand for gold seems to be decreasing. Are miners producing a glut of gold and how will that reflect in the price?

**************

Ridiculous--gold has been coming into the market for the last several years at around 2000 tons/yr-

Industrial/jewelry demand is about the same tonnage/yr-

There's about 170,000 tons in existence-

Do you think 2000 tons of supply in surplus or deficit would actually make a difference?

Thu, 05/17/2012 - 15:59 | Link to Comment walküre
walküre's picture

Not according to the latest Jon Nadler interview featured on Kitco. Maybe he's just pulling his numbers out of his ass. Saying that industrial demand is down 7% and retail demand in India for example down 30%.

The story that demand is decreasing is repeated across the web by numerous outlets. All propaganda? Maybe so.

Thu, 05/17/2012 - 18:35 | Link to Comment cristo
cristo's picture

the rupee just hit an all time historical low against the dollar yesterday 54.44/1 . Indians know quite well how to protect their wealth . Look for a spike in investor demand .

Thu, 05/17/2012 - 18:37 | Link to Comment Vlad Tepid
Vlad Tepid's picture

The lower demand in India is a reflection of the boycott by gold sellers recently.  Quite temporary.  Industrial demand (which is very small anyway for gold) being down 7% means nothing because in a re-/depression industrial demand is down across the board.  The miners are still pulling just as much out of the ground and much of it's been purchased in advance by national governments (China, Russia, Venezuela etc).

As said, I haven't trusted anything Nadler has said for years.  He's a gold analyst the same way that Keith Olberman is a reporter.

Thu, 05/17/2012 - 13:40 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Funny thing is, after a 12 year bull run, still only 2-3% of people in own any gold at all.

It appears the brainwashing has been very successful.

 

Thu, 05/17/2012 - 13:40 | Link to Comment huanjo
huanjo's picture

Gold is a liar, you should have used an alternative commodity index instead such as the Jefferies CRB Index, to get a more accurate picture of the value of your money. 

Thu, 05/17/2012 - 14:24 | Link to Comment DaveyJones
DaveyJones's picture

Gold lies less than the men who control it.

Isn't Jefferies heavily weighted in WTI and isn't that index under its own criticism

Thu, 05/17/2012 - 14:39 | Link to Comment St Nicols
St Nicols's picture

Can't deny that the graphs do make a point, but I agree that using only gold as a reference may distort the effect of fiat creation. After all, gold may be attracting a bit of an oversized demand when compared to other hard assets. How about throwing some other metals?

Thu, 05/17/2012 - 15:05 | Link to Comment huanjo
huanjo's picture

Personally, I plan to use my money in future to buy things like gas, heating, food, automobiles, electronic goods etc. So I am interested in the value of my money relative to these commodities. However, if you plan to use all your money to buy gold, then by all means, value your money relative to gold. 

Thu, 05/17/2012 - 18:49 | Link to Comment Vlad Tepid
Vlad Tepid's picture

You post indicates a serious misunderstanding of gold.  It is not a commodity.  It is money that is not owned by any one particular country (CHF, JPY, USD) and therefore cannot be manipulated relative to them.  Your comment sort of reminds me of grade school kids nowadays who are trained only to look at swift movements and flashing colors (ie cereal commericals, public school lessons etc) and can't stare at a book with words in it.  Because the book doesn't move and doesn't flash (like these roller coaster fiat currencies) they declare that the book has nothing to say and has no value.

If your goal is to buy heating, food, and gasoline and you plan to do it in dollars, I say:  Good luck to you.  I hope you don't have a family to take care of.

Thu, 05/17/2012 - 13:41 | Link to Comment Smokey1
Smokey1's picture

All Charlie Munger does is follow Buffett around and hold Buffett's dick whenever Buffett takes a piss. If it weren't for Buffett, Munger would be a nobody.

By 2020, debt service will be at least $2 trillion a year for the federal government, which will probably exceed revenues at that time. Interest rates back at 7% on a national debt of $30 trillion will do the trick. Which means the fucking game is over for the USA.

Sometime between now and 2020 Berkshire will collapse along with the USD and the US government, and Buffett will be dumpster diving along with Munger, while the uncivilized people will be counting their gold.

Munger and Buffett eat shit.

Thu, 05/17/2012 - 13:48 | Link to Comment mayhem_korner
mayhem_korner's picture

By 2020, debt service will be at least $2 trillion a year for the federal government

 

Instead of "trillions of dollars", can we use "barrels of ink" as the unit of measurement?

Thu, 05/17/2012 - 14:42 | Link to Comment fuu
fuu's picture

Going to have to jump right to GBOI "Giga Barrels of Ink".

Thu, 05/17/2012 - 14:46 | Link to Comment Marco
Marco's picture

As long as the collapse stops short of anarchy they will both stay richer than you or I will ever be ... gold might be the best hedge, but a lot of the stuff they own isn't just paper either.

Thu, 05/17/2012 - 13:43 | Link to Comment Doubleguns
Doubleguns's picture

Bury gold, John Maynard Keynes, Charlie Munger and Warren Buffett in the back yard. Come back in 50 years and see which one has increasd in value and which are worth dirt. 

Thu, 05/17/2012 - 13:49 | Link to Comment ivars
ivars's picture
I guess the battle USDx vs PMs has been won by PMs

Which is essential. USDx will continue to move up, but PMs will move just faster. Normal flight to safety to USD as a reserve currency (=value storing commodity) with double safety found in PMs. No big inflation in the USA, hence. But fear of sovereign debt crisis in the USA will drive metals higher in USD terms, whatever USDx is. And in all (except any?Have no idea) other currencies even more.

So the bottom yesterday it was. How nice that it coincided with GSR peak. Right now GSR is 55,73. Yesterdays close was 56, 54. yesterday intraday maximum at the big end of Nymex selloff was 57. Peak GSR also happened during last silver bottom in December.

http://www.tfmetalsreport.com/comment/167413#comment-167413

Everything has worked out smoothly, and this (yesterday) was the last serious bottom. Lets wait a bit and get confirmation on that, and then , if true, these events have confirmed a bunch of prediction charts at once (in some , like USDx- trends). That may be helpful for future.

Prediction charts like those here:

http://www.tfmetalsreport.com/forum/2814/ivars-charts

It is the relative movements which are important. Relative to USDx changes metals after the bottom was not anymore reacting the usual way ( going down when USDx goes up) , but both were going up, or metals were going up more than USDx. Since I expected this to happen long ago, prematurely, once I saw this  change in behaviour that happened today, I thought metals have won the battle vs, USD as risk off assets of choice. There will be still deviations from this new rule, perhaps, but the general trend from now on ( or it is in final forming stages to become very clear within few months) will be USDx up, PMs up. Just PMs will move faster, so their price in USD will increase.

"This may not be the beginning of the end, but it is definitely the end of beginning"

 

EUR is done for this year. Going down to 1,1, perhaps. Hence USDx increase.

Thu, 05/17/2012 - 13:44 | Link to Comment robertocarlos
robertocarlos's picture

I'm more shocked that gold went up 2.6% than I am shocked that Canada lost the World Hockey Championship.

Thu, 05/17/2012 - 13:52 | Link to Comment debtor of last ...
debtor of last resort's picture

Thu, 05/17/2012 - 13:57 | Link to Comment hankwil74
hankwil74's picture

Nice to meet you preacher; let me introduce you to the choir.

Thu, 05/17/2012 - 14:04 | Link to Comment American Sucker
American Sucker's picture

Gold will not save you if civilization fails.  That's hilarious crap.  If civilization fails, some bandit gang will drop by shortly to relieve you of your gold, food, blankets, water, etc.

You want to survive the collapse of civilization?  Get tight with your neighbors.

Thu, 05/17/2012 - 14:16 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

Gold will not save you if civilization fails.  That's hilarious crap.

 

Yep, one of the funniest straw men on legs.

Thu, 05/17/2012 - 14:20 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Where do people come up with this garbage? Did you ever read the article?

Fuck off with that "end if the world" crap in regards to gold.

Thu, 05/17/2012 - 14:52 | Link to Comment American Sucker
American Sucker's picture

When someone says, "Gold will save you from the collapse of civilization," I stop reading.  It's like "intelligent design", "the climate is always changing", or "the stimulus wasn't big enough".

Thu, 05/17/2012 - 18:54 | Link to Comment Vlad Tepid
Vlad Tepid's picture

And why, prithee, would the bandit gang want to relieve you of gold that has no value?  Methinks gold may have value after all.  Perhaps enough to stimulate a band of Merry Men to come and relieve American Sucker's without gold of their food and shelter?

Gold won't save you from the collapse of civilization.  It will put you on top of whatever comes next if you should be lucky enough not to get "Treasure of the Sierra Madre-d."

Thu, 05/17/2012 - 14:33 | Link to Comment TheGardener
TheGardener's picture

"Get tight with your neighbors."

Tight, not close , I second you.

My buffer humans living in my hunting ground surroundings I trust in , till they are gone.

Thu, 05/17/2012 - 14:48 | Link to Comment fuu
fuu's picture

That way your neighbors can turn you into the feds for the reward money.

Thu, 05/17/2012 - 14:24 | Link to Comment lasvegaspersona
lasvegaspersona's picture

if it was not for the efforts of guys like Munger, Bernacke and Buffet you ingrates woulds be paying $50,000/OZ for your gold and yet you berate them. tsk tsk tsk...

Thu, 05/17/2012 - 14:30 | Link to Comment UP4Liberty
UP4Liberty's picture
How well does the Fed protect the purchasing value of the dollar? *Texas Straight Talk, by Congressman Ron Paul, May 14, 2012:

''First, it is important to understand the Federal Reserve System.  Some people claim it is a secret cabal of elite bankers, while others claim it is part of the federal government.  In reality it is a bit of both.  The Federal Reserve System is the collusion of big government and big business to profit at the expense of taxpayers.  The Fed's bailout of large banks during the financial crisis propped up poorly-run corporations that should have gone under, giving them a market-distorting advantage that no business in the United States should receive.  The recent news about JP Morgan is a case in point.  JP Morgan, a recipient of $25 billion in bailout money, recently announced it lost another $2 billion.  If a corporation shows itself to be a bottomless money pit of 'errors, sloppiness and bad judgment,' the Fed shouldn't have expected $25 billion in free money to change that or teach anyone a lesson in fiscal discipline.  But it determined that this form of deliberate capital destruction was preferable to one business suffering bankruptcy.''

Thu, 05/17/2012 - 14:40 | Link to Comment Stoploss
Stoploss's picture

The FED put..

Thu, 05/17/2012 - 14:59 | Link to Comment machar
machar's picture

If you happened own any barbaric relic now, do you know how much it will be worth? So make your own inference from that..

Thu, 05/17/2012 - 15:03 | Link to Comment billychiam
billychiam's picture

Looking at current gold level, it is a very oversold level on weekly chart. At the current point, it is a good time to hedge gold position against US dollar. Hedging against inflation.

Investors are now have renew interest in buying in dips. Silver has high potential to rally higher for now.

Lets see how the market play for the next few weeks.

Gold Price Singapore Pte. Ltd.
http://www.goldprice.com.sg

Thu, 05/17/2012 - 15:07 | Link to Comment SilverSavant
SilverSavant's picture

Yes, gold does tell the truth in this up is down world we live in.   If it were going up, then you would know it was crap.   Soon it will be telling it's own truth and it will be going way up.   However, it will seriously lag Silver.

Thu, 05/17/2012 - 15:23 | Link to Comment suckerfishzilla
suckerfishzilla's picture

One would  be better off buying some other precious metal besides gold.  Gold may be undervalued in terms of fiat currency but Au/Ag and other metal ratios are arguably far askew. White metal bitchez. 

Thu, 05/17/2012 - 15:50 | Link to Comment Sandoz
Sandoz's picture

Every one of these charts shows that gold is too expensive relative to X (X being home prices, wages, disposable income, USD). And of course ZHers somehow translate this as being bullish for gold. 

Thu, 05/17/2012 - 19:02 | Link to Comment Vlad Tepid
Vlad Tepid's picture

It's bearish for the dollar and only by EXTENSION is it bullish for gold.  These charts are an indictment of dollar manipulation.  Since gold is the anti-dollar, well...

Thu, 05/17/2012 - 20:00 | Link to Comment TrulyBelieving
TrulyBelieving's picture

A people prosper when the evils resident in all men are shackled by just laws. This is what civilized people do to protect the good and beneficial so all are at least given a good chance to survive, and even prosper. Now when man can legally steal from his fellow citizens by ways of fraud (fake money is certainly fraud) it is this society that is not acting civilized. This fiat system is corrrupt, and the only ones advocating for it are the ones gaining from it. This is how you can easily tell who the evil ones are. Those advocating for gold are generally aware it is a less corruptable median and desire for the civil society to prosper by using it as money.

Thu, 05/17/2012 - 20:16 | Link to Comment WhiteNight123129
WhiteNight123129's picture

ALL THOSE CHARTS ARE USELESS: YOU SHOULD MEASURE PRICE OF SOFT COMMODITIES IN GOLD OR SILVER IN GOLD, SILVER IN SOFT COMMODITIES ETC... ETC... MEASUREMENT OF FIAT MONETARY QUANTITIES IN COMMODITY MONEY DOES NOT MAKE MUCH SENSE.

 

 

Thu, 05/17/2012 - 20:17 | Link to Comment WhiteNight123129
WhiteNight123129's picture

ACTUALLY GOLD IS A BIT RICH IN AGRO COMMODITIES TERM, SILVER LESS SO. OR STATED OTHERWISE, AGRO COMMODITIES ARE CHEAP IN GOLD TERMS AND A BIT CHEAP IN SILVER TERMS.

 

Thu, 05/17/2012 - 20:37 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

I can't bearish all of the bullish - it. BUY THE FUCKING DIPS, BITCHEZ. There. Fixed it for ya.

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