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Guest Post: Time to Accumulate Gold and Silver?

Tyler Durden's picture




 

Submitted by Jeff Clarke of Casey Research

Time to Accumulate Gold and Silver

Do you own enough gold and silver for what lies ahead?

If 10% of your total investable assets (i.e., excluding equity in your primary residence) aren't held in various forms of gold and silver, we at Casey Research think your portfolio is at risk.

After speaking at the Cambridge House conference last month and talking with many attendees, I came away convinced that most investors fall into one of two categories: those that hold an abundance of gold and silver (which tends to be physical forms only), and those with little or none. While both groups need to diversify, I'm a little more concerned about the second group. Here's why.

Regardless of what you think will happen over the remainder of this decade, one thing seems virtually certain: the value of paper money will be affected, perhaps dramatically. Even if the economy slips into deflation, the deflation wouldn't last long. A panicked Fed would print to the max and set off a wild rise in prices. This is why we're convinced currency dilution will not only continue but accelerate.

Let's take a look at what's happened so far with the value of our currency vs. gold, after accounting for the loss in purchasing power.

Both the US and Canadian dollar, after adjusting for their respective CPIs, have lost about a quarter of their purchasing power just since 2000. Concurrently, gold has increased dramatically in buying power, far outpacing the effects of inflation.

This is the core reason why I'm convinced we should hold our savings in gold and silver instead of dollars. Let's take a brief look at how gold and gold stocks might perform if the economy takes a turn for the worse…

 

What If We Enter a Recession or Depression?

Mayan prophecies aside, many of our panelists last month, including most of the senior Casey staff, believe economic, monetary, and fiscal pressures could come to a head this year. The massive build-up of global debt, continued reckless deficit spending, and the lack of sound political leadership to reverse either trend point to a potentially ugly tipping point. What happens to our investments if we enter another recession or – gulp – a depression?

Here's an updated snapshot of the gold price during each recession since 1955.

Clearly, one should not assume that gold will perform poorly during a recession. Even in the crash of 2008, gold still ended the year with a 5% gain. And with the amount of currency dilution we've undergone since that time, it seems more likely gold will rise in any economic contraction than fall. Indeed, if the response of government to a recession is more money printing, precious metals will be a critical asset to have in your possession.

Even if the gold price ends up flat or down this year, the CPI won't. Gold's enduring purchasing power is why we hold the metal.

How about gold stocks?

In spite of the debilitating 1970s that suffered from stagflation, price controls, three recessions, and the Vietnam war, gold producers rose over 600% while the S&P was basically flat. And that includes a roughly 65% fire-sale correction, much like we saw in 2008. To be clear, gold and silver stocks won't be immune to selloffs if a recession or worse temporarily clobbers our industry. But in the end, we're convinced they will prevail.

Don't lose patience with, or confidence in, your gold holdings. What happens to the price over any short period of time is only one chapter in the book of this bull market, and we think you'll be happy by the time that last chapter is written.

 

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Sat, 03/10/2012 - 15:55 | 2243481 B-rock
B-rock's picture

I've said this here before, but here goes again: In 1972, 1986 and today, a good new Ferrari costs 90 oz of gold.

Sat, 03/10/2012 - 16:04 | 2243507 Ahmeexnal
Ahmeexnal's picture

So much for Iceland wanting to adopt the loonie.

They might as well adopt concrete boots and jump off a pier.

Sat, 03/10/2012 - 16:35 | 2243572 trav7777
trav7777's picture

please join them

Sat, 03/10/2012 - 17:35 | 2243690 kito
kito's picture

Back off of my friend jim.....

Sat, 03/10/2012 - 17:48 | 2243707 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Fourth Rule:  Only two guys to a fight

Sat, 03/10/2012 - 17:58 | 2243718 kito
kito's picture

who said mr. morrison was the one fighting?...............

Sun, 03/11/2012 - 07:21 | 2244535 GetZeeGold
GetZeeGold's picture

 

 

Fight all you want.....I'll hold your gold for you.

 

In a death match.....theoretically I'll only have to give back 50%.

 

 

Sat, 03/10/2012 - 20:10 | 2243911 smiler03
smiler03's picture

How come it is ALWAYS overlooked that the poor sucker who bought gold on 21st January 1980 had to wait almost 28 YEARS to see their asset once again reach what they paid for it?

"The previous all-time record high gold price in US dollars, reached on 21st January 1980, fixing at $850.00 on that day's p.m. London fix, was finally topped on January 3rd 2008, 11 times in January, and again on February 1st."

http://www.taxfreegold.co.uk/highestevergoldpriceinusdollars.html

edit: It's not difficult to foresee that gold bug rage will ensue and somebody will say something like... but if you bought it on ..... then it would be worth ..... today. Go on, surprise me.

Sat, 03/10/2012 - 20:24 | 2243940 bonderøven-farm ass
bonderøven-farm ass's picture

Because boomers weren't intelligent enough to read the writing on the wall.  My generation has inherited this shit storm and we aren't buying the story line..... (ad meliora) 

Silver bitchezz.......! 

Sat, 03/10/2012 - 20:46 | 2243975 DosZap
DosZap's picture

bonderøven-farm ass

Because boomers weren't intelligent enough to read the writing on the wall

 My generation has inherited this shit storm and we aren't buying the story line..... (ad meliora) 

Brainiac where were you?, if Boomers were not intelligent enough , Oh mighty one, why did your Dick get caught in the watergate?.

If YOUR generation was so intelligent, how did you get stuck?.

You assign blame but accept NO personal responsibility for yourself.Unless your 20yrs old, I do not buy it.

Sat, 03/10/2012 - 22:04 | 2244074 bonderøven-farm ass
bonderøven-farm ass's picture

You don't have to 'buy' it....history speaks for itself, no?

Look around ya buttercup, what's your grand assessment? Want to lay the blame on the 30 somethings? The 20 somethings? Undoing decades of fiscal mismanagement, entitlement programs, reckless foreign policy, corporate 'globalism', and irresponsible legislation (to name a few) will take time......that's the legacy my generation has inherited.

Pull yer head outta yer ass.....

Sun, 03/11/2012 - 03:08 | 2244400 Lord Koos
Lord Koos's picture

Want some cheese with your whine?  Do you somehow think history started with the baby boomers in 1970? 

Sun, 03/11/2012 - 09:41 | 2244641 GetZeeGold
GetZeeGold's picture

 

 

It's all in the timing.

 

No one held a gun to anyones head in 1980 and forced them to buy gold just the same as no one forced anyone to keep 100% of their retirement in Enron.......thanks for that gumball Paul Krugman.

 

Sun, 03/11/2012 - 09:36 | 2244658 Confused
Confused's picture

Of course not. But each generation has the power to stop the shit mess the previous one has created. 

 

Perhaps yours just joined the party........

Sun, 03/11/2012 - 09:38 | 2244660 GetZeeGold
GetZeeGold's picture

 

 

Party on Wayne.

 

Sun, 03/11/2012 - 16:18 | 2245436 DosZap
DosZap's picture

bonderøven-farm ass

I am not laying blame on anyone asstard.

I am saying know what the hell your talking about, how this started..........99.5% says NO one here was alive when this BEAST was started, try 1913.

Facts are Facts................................do your homework.

Sat, 03/10/2012 - 22:49 | 2244121 bigkahuna
bigkahuna's picture

I am frustrated too, but the boomers got played just like we have. They did not have the easy access we have to information. The word is out and we all are learning together on this, age is not relevant to what we are dealing with now.

Sun, 03/11/2012 - 06:45 | 2244516 Crash N. Burn
Crash N. Burn's picture

the boomers got played just like we have. They did not have the easy access we have to information.

 

 Try to imagine a time boys and girls when there was no internet. The only information available was presstitute approved.

Sun, 03/11/2012 - 07:26 | 2244538 Ghordius
Ghordius's picture

and how many use the internet for news about Lady Gaga and sports only?

the presstitute is still working nearly as well as before

Sun, 03/11/2012 - 08:58 | 2244624 economics1996
economics1996's picture

The boomers elected Ronald Reagan and he sold them down the river, just like Bush I and II.  Fuck we had a Republican house, senate, and president for 6 years and the mother fuckers still spent us into oblivion.  

Don't say the boomers did not try, they just didn't realize the Republicans were feeding them shit and they should have voted Libertarian.  Don't make the same mistake.

Sun, 03/11/2012 - 09:56 | 2244665 GetZeeGold
GetZeeGold's picture

 

 

It was Bush.......infinity.

 

/sarc the size of my ranch in Crawford TX.

 

Sun, 03/11/2012 - 09:38 | 2244661 Confused
Confused's picture

restricted information is part of what allows this game to continue.

 

which is why the internet will be shut down in some form.

Sun, 03/11/2012 - 12:43 | 2244925 Gold Dog
Gold Dog's picture

As a boomer-

I did buy at high prices....but kept buying all along. It was easy to see where the policies of the Gubbmint were going to end up.

I also take some measure of responsibility for the trouble our country is in. (See above.) Once the draft ended I went on my merry way bitching and moaning but I know I should have fought harder to change things.

May future generations forgive me.

 

Dog

 

Sun, 03/11/2012 - 16:34 | 2245466 DosZap
DosZap's picture

Gold Dog

Gold Dog, do not apologize for things 100% out of your control.

Government is to blame, for all this..........................ALL WE did was what we were taught was right, and worked for a better country for all .None of us did anything to bring this about,and there damn sure was nothing we could have done.

I have beat my brains in mailing/calling/donating to causes for change..............all it got me was less wealth,and losing candidates, and disrepect for failing.

WHO was the majority that voted the current asclown in?, youth, and women, and minorities.

So, see anyone can get suckered..............

Sun, 03/11/2012 - 08:03 | 2244565 kito
kito's picture

@dos.....at least the twenty year olds have enough sense to vote for ron paul...the boomers are still looking for more of the rape train by supporting romney.....

Sun, 03/11/2012 - 15:57 | 2245391 DosZap
DosZap's picture

kito

Kito, agreed to a point but I am damn sick and tired of the ass clowns here blaming the Boomer's for everything bad.(1946-64)

If they know history at all, they would go back and bitch about WHO really started the shit train.

Teddy Roosevelt,Woodrow Wilson, and FDR..........................LBJ, and Ted Kennedy, and ALF Gwhore.

The Tea Party, and the Conservatives are not buying into Romney.(and that covers a ton of boomer's, and millions that fall in that age bracket.),it's not that they do not want to support Ron, it's just the system is rigged against him,

A vote for Paul, unfortunately is a vote for Obama.(facts are facts)

Bottom line, is we must get the SOB out of the peoples house.....................with anyone but him, deal with the next one later.

Mon, 03/12/2012 - 07:15 | 2246713 jpalm
jpalm's picture

"A vote for Paul, unfortunately is a vote for Obama.(facts are facts)"

 

Then so be it. Our republic is doomed regardless, may as well vote my conscience in the last election. I can sleep at night with that.

Sun, 03/11/2012 - 16:47 | 2245504 DosZap
DosZap's picture

kito,

I just love Monday morning quartebacks..............................All that $$$$$$$$$ for only 9%?, in most cases.

RP has never garnered over 10% of the ELECTION vote.He has had the most respect ever this trip around, simply because the house is burning down.

I vote NO for all of them except Paul, but voting for him, gets me Obama,make a political statement and vote for him....................Same old shit KITO.

What does that get us a moral victory?, or 5yrs more of total tryranny.

Sun, 03/11/2012 - 17:10 | 2245567 sitenine
sitenine's picture

So, you're saying, if I get you right, you'd prefer Mittens Romney as your President perhaps?  Maybe Santorum?  As you say, yes, there are ass clowns on ZH, but our ass clowns are world class.  You are a status quo-bot, a dime a dozen, and nothing special with nothing special to say.  BTW, what do you mean 5yrs more of total tryranny - you mean 4yrs? - and what the fuck is tryranny?  Seriously.

Sat, 03/10/2012 - 20:31 | 2243951 mnevins2
mnevins2's picture

I'm almost at 5%, but I very well recall the period that culminated in 1980 - and what followed afterwards.  Will it be "different" this time?  No idea.  And so I'm at 5%.  But it is disingenuous to "overlook" 1980 - 2000!

Sat, 03/10/2012 - 20:45 | 2243973 tmosley
tmosley's picture

What, it's possible to lose money chasing parabolic moves?  NO WAI!

Sat, 03/10/2012 - 21:17 | 2244015 ljag
ljag's picture

Again, it matters not the price but how high ur stack is. Surprised?

Sat, 03/10/2012 - 21:21 | 2244021 nmewn
nmewn's picture

Muttley,

And a dollar (your chosen value comparison, not mine) bought how many loaves of bread in 1980 vs 2008?

Sun, 03/11/2012 - 05:35 | 2244484 RafterManFMJ
RafterManFMJ's picture

 

 

Just stepped out of the wayback machine: according to the inflation calculator:

 

What cost $100 in 1980 would cost $258.03 in 2008.

Also, if you were to buy exactly the same products in 2008 and 1980,
they would cost you $100 and $35.44 respectively.

Sun, 03/11/2012 - 07:44 | 2244550 nmewn
nmewn's picture

Glad to have you back and I trust you're all in one piece with nothing of value missing ;-)

Sun, 03/11/2012 - 18:04 | 2245742 smiler03
smiler03's picture

Hi nmewn, tis always a pleasure to see your comments ;O) Regarding the bread, Rafterman saved me the work! 

Mon, 03/12/2012 - 07:04 | 2246705 nmewn
nmewn's picture

The time released decay of fiat is no way to value anything is it? ;-)

Sat, 03/10/2012 - 22:02 | 2244070 Paul67
Paul67's picture

28 years? not bad, you have just made a great point; namely that given at most a few decades you won’t lose your purchasing power in the long run.  Sounds like ‘the’ money of savers to me.

 

How long do the people below have to wait to get the same purchasing power out of their paper?  I’ll save you the time, never is the correct answer Alex.

 

http://moneytipcentral.com/inflation-in-america-what-will-hyperinflation-look-like

 

Question; If you had a time machine what would you to take as a form of money at your destination?  Simple, Gold if I want to buy land or politicians and Silver for everything else.  Then again you can buy Gold with Silver though at 15 to 1 so plan accordingly.  Unless you go foward in time at which 10 to 1 might be a better prediction.

Sat, 03/10/2012 - 22:06 | 2244079 Xploregon
Xploregon's picture

@smiler03

The answer is really simple; That was true then but, is it now? Looking at the totality of all curent world events and, the economic fundimentals, do you think it really is the same?

Sun, 03/11/2012 - 18:13 | 2245773 smiler03
smiler03's picture

It's different now, of course.

Sat, 03/10/2012 - 23:10 | 2244144 Bansters-in-my-...
Bansters-in-my- feces's picture

hey fucktard smiler03 I see you declined when they were passing out brains.

Sun, 03/11/2012 - 18:09 | 2245760 smiler03
smiler03's picture

And let me guess... you're a goldbug and you don't like my question. It's your choice to ignore a historical fact.

Sun, 03/11/2012 - 04:33 | 2244451 FinsterMonster
FinsterMonster's picture

All time high for gold was year 1492, adjusted for inflation to 2012 = $3357 per oz.

Gold has not come back to its all time record in 520 years...

Source:

http://www.gold-eagle.com/analysis_98/jmiller050598.html for the 1492 to 1998 chart

Inflation calculator: http://www.dollartimes.com/calculators/inflation.htm

Sun, 03/11/2012 - 18:11 | 2245767 smiler03
smiler03's picture

Well that's an interesting take on it :O)

Sun, 03/11/2012 - 10:03 | 2244693 Silveramada
Silveramada's picture

poor sucker average Joe then went and buy a home in 2005-2006...

Sun, 03/11/2012 - 17:25 | 2245621 WhiteNight123129
WhiteNight123129's picture

I will sell when Gold gets at 12% of M3, and when Jim Rogers is trashing Gold and nobody listens to him because everyone is packined and "inflation panic is the headlines of WSJ ", then you buy Chinese stocks hands over fist, consumer spending sector and consumer financials in China. Yuan and HKD are good diversifaction of currency too for now. There are convoluted ways to buy Yuan. For now hoarding BITCHEZ that is PMs and agri commodities. Smiler03 this recipeworks since 1782,worked  before 1819, 1864, 1920, 1950, 1980, go to school smiler03.

Tue, 03/13/2012 - 18:43 | 2252140 smiler03
smiler03's picture

But it didn't work between 1980 and 2008.

That's all I said.

Learn to read.

Tue, 03/13/2012 - 18:50 | 2252159 akak
akak's picture

So you cherry-picked one 28 year period out of several thousand years, and expect us to take your argument against gold seriously?  What about those --- the VAST majority --- who did NOT buy gold at its one-day price peak in 1980?  I am still well ahead on the two Krugerrands which I purchased less than one year prior to that price spike in early 1980 --- can you say the same about your bank account?

Where did you go to school, anyway, the Jon Nadler Academy of Disingenuous Propaganda?

Mon, 03/12/2012 - 14:06 | 2247822 Diogenes
Diogenes's picture

And if you bought the Dow in October 1929 you would have gotten even in 1954. So what?

How about this. If you bought New York Central Railway, one of the market leaders of the time, you would never have gotten even. If you bought Johns Manville, another Dow stock, in 1980 and held it until now you would have lost all your money.

It is easy enough to pick a time period when you would make, or lose large sums of money. It is easy to find a time when your investment in a certain stock would have gone to zero. It is impossible to pick a period when gold went to zero.

Mon, 03/12/2012 - 18:18 | 2248756 smiler03
smiler03's picture

How come it is ALWAYS overlooked that the poor sucker who bought gold on 21st January 1980 had to wait almost 28 YEARS to see their asset once again reach what they paid for it?

27 people downvoted my post. 

It is clear then that at least 27 people disagree with history. With hindsight, Gold was a BAD investment in 1980 unless you were prepared to wait for at least 28 years. Why downvote it? The answer is obvious, you're scared shitless that it might happen again.

Bubble.

Maybe.

Who knows?

I'm in Silver, f*** gold. Smileys :O) :O) :O) :O) :O)

Thu, 04/12/2012 - 14:42 | 2338856 mogul rider
mogul rider's picture

You got nuked cause you reminded them that they were balls in in September last year

Sat, 03/10/2012 - 18:49 | 2243798 kill switch
kill switch's picture

You must be the only living brain donor. Ripley's

 


Sat, 03/10/2012 - 17:18 | 2243659 Treeplanter
Treeplanter's picture

The loonie will survive most currencies.  Canada is also resource rich, incuding gold and silver.

Sat, 03/10/2012 - 18:20 | 2243757 dark pools of soros
dark pools of soros's picture

So .... The loonie will survive after the US heads up there to 'spread democracy' and liberate those resources?

Sat, 03/10/2012 - 19:34 | 2243863 tmosley
tmosley's picture

Don't be certain that the US will have either the will or the ABILITY when the time comes.  Beyond all the joking, Canada has a powerful military, and could easily negotiate MAD protection with any of the other resource-hungry nuclear nations of the world.

Sat, 03/10/2012 - 19:51 | 2243890 dark pools of soros
dark pools of soros's picture

Hmm..  Mounties.. Muslims..  kinda sounds the same sitting from Tel Aviv

they'll say it was a typo afterwards

 

 

Sat, 03/10/2012 - 20:27 | 2243946 Likstane
Likstane's picture

Canada-a powerful military? Me and 5 guys from my neighborhood could probably take Yukon territory.  Keep on smoking it!

Sat, 03/10/2012 - 20:46 | 2243974 Jreb
Jreb's picture

Canadian bacon anybody? You have to watch them tricky Canucks. Rumour is they are planning a preemptive defensive strike against Detroit - then on to Washington. Remember the War of 1812? Pretty soon we'll all be speaking out the sides of our mouths and drinking Pilsner from a snub nose bottle while dreaming of the good days when the Habs ruled the world.

Truth is we are all Greek now. So quit your wining, greese up and take your medicine. 

Sat, 03/10/2012 - 22:03 | 2244073 louisianagold
louisianagold's picture

They can have Detroit. 

Bomb it for 36 months straight, and you couldn't tell the difference.

Sat, 03/10/2012 - 20:50 | 2243980 tmosley
tmosley's picture

Not unless you shoot lasers out of your eyes and can leap tall buildings in a single bound.

Canada has a FULLY MODERN MILITARY.  When was the last time the US engages a FULLY MODERN MILITARY in OPEN COMBAT?

You just went full retard.

Sat, 03/10/2012 - 21:05 | 2243998 Likstane
Likstane's picture

go chug a Labaats...eh beetch

Sat, 03/10/2012 - 21:16 | 2244013 tmosley
tmosley's picture

I live in Texas, you idiot.

Go play armchair general somewhere else.

Sun, 03/11/2012 - 00:22 | 2244253 Likstane
Likstane's picture

ok, go chug a lone star, pissbag.

Sat, 03/10/2012 - 22:23 | 2244094 kito
kito's picture

T mos you've jumped the shark.......Canada's military budget last year was 22 billion......our lovely pentagon spends that much on breath mints....which they would need after chewing up and spitting out the Canadian military in record time......

Sat, 03/10/2012 - 22:56 | 2244132 UP Forester
UP Forester's picture

....said the Soviets about the Finns....

Sun, 03/11/2012 - 05:37 | 2244485 pufferfish
pufferfish's picture

The Talban and the Veitnamese (VC) called. Or, is this where I'm told the USA didn't want to win those wars?

Sat, 03/10/2012 - 23:21 | 2244160 steelrules
steelrules's picture

Don't forget there are an estimated 20,000,000 guns floating around up here in civillian hands, sure our military would be wiped out but would you want to walk down any street Canada as an occupier afterwards? 

Sun, 03/11/2012 - 00:16 | 2244239 mick_richfield
mick_richfield's picture

What would piss me off would be the part where I would have to learn to accept surrenders in both English and French.

Sun, 03/11/2012 - 01:33 | 2244330 Jreb
Jreb's picture

Ouch!

LOL!

Sun, 03/11/2012 - 04:47 | 2244458 BigInJapan
BigInJapan's picture

...and we Canadians sure can blend in real good when down south...

Sun, 03/11/2012 - 16:22 | 2245444 Ahmeexnal
Ahmeexnal's picture

that is....until you open your trap and blurt out "EEEEEEEEEEEEH???????"

Sun, 03/11/2012 - 20:46 | 2246074 Jreb
Jreb's picture

Huh??

Sun, 03/11/2012 - 14:31 | 2245216 dogbreath
dogbreath's picture

i can shoot at the national match level.   we don't own the military semi and auto stuff.   guys up here shoot hunting rifles.  lots of magnums.   good for accuracy at distance.  

Sun, 03/11/2012 - 15:36 | 2245341 DosZap
DosZap's picture

dogbreath

 we don't own the military semi and auto stuff.

Military doesn't use semi autos dude.

Also, you are making a serious mistake just having JUST  bolts guns. Unfortuantely most of your serious stuff would likey happen at 200yds and in.

You had best have BOTH.And lots of Pb.

Sun, 03/11/2012 - 01:04 | 2244288 xtop23
xtop23's picture

Im curious what the ratio of civilian gun ownership in Canada vs the US is - 

Rhetorical question of course. Not to discount the people of Canada I'm sure there's plenty of people there that own guns but...... unless the country is bleeding drones out of it's rectum like the US is , a conventional encounter would be quite lively if brought south.

As far as the header of this ZH post , when is it not a time to be actively accumulating Au and Ag?

Sun, 03/11/2012 - 01:29 | 2244321 Jreb
Jreb's picture

Ratio is similar to US. Canadians have lots of guns and are quite Americanized in this sense. They're just less obnoxious about it.

Sun, 03/11/2012 - 02:24 | 2244365 xtop23
xtop23's picture

 Hrmm , I've looked at the lists of weapon type and model that are banned or unlawful to own/use in Canada and it looked to me to be much more restrictive than in the US. I suppose they all shoot lead so it's a moot point. 

 As far as obnoxious about gun ownership . I suppose American's really do like em and are very vocal about it , much like Canadian's and hockey. 

 Personally , if things continue too much further down the current path , I'll be moving to Montreal. 

 I'll start practicing how to pronounce "about" properly , so I can fit in immediately.

Sun, 03/11/2012 - 12:00 | 2244821 Jreb
Jreb's picture

Sorry - sarc mode should have been on - was a stab at Canadian politeness.

Sun, 03/11/2012 - 08:45 | 2244613 Treeplanter
Treeplanter's picture

I doubt if you could even find the Yukon.

Sun, 03/11/2012 - 14:26 | 2245201 dogbreath
dogbreath's picture

why would you and your buds want too.  You can't swing a dead cat in whitehorse without hitting a dyke.   as for the gold fields good luck getting them.  you'll spill lots of blood getting them and trying to hang on to them.

Sat, 03/10/2012 - 16:06 | 2243513 noses
noses's picture

And at that price you could get the new Ferrari for used gold. How many ounces of gold would you get for an used Ferrari?

Sat, 03/10/2012 - 17:10 | 2243646 ilion
ilion's picture

Does anybody have a chart on how many ounces of gold was needed to buy an average US house let's say over the last 100 years period?

Sat, 03/10/2012 - 18:26 | 2243766 duo
duo's picture

Ned Schmidt had an analysis.  It's been around 100 oz for 200 years.

Sat, 03/10/2012 - 18:40 | 2243782 slewie the pi-rat
slewie the pi-rat's picture

people research this stuff;  try looking? 

GATA had a recent link about a new site: Golden Markets | With Gold as Unit-of-Account

this has the major exchange indices and currencies w/ % changes in ounceZ! 

Sun, 03/11/2012 - 15:21 | 2245307 DosZap
DosZap's picture

slewie the pi-rat

GATA had a recent link about a new site: Golden Markets | With Gold as Unit-of-Account

this has the major exchange indices and currencies w/ % changes in ounceZ! 

Well this will definitely bring on the Exec Order to turn in or else.

Sun, 03/11/2012 - 10:09 | 2244706 Silveramada
Silveramada's picture

at the peak of the bull run in 1979-1980 took 50 oz gold or 800 oz of silver +-...this time around will take maybe 700 or 500 Oz silver for an average us home...

Sat, 03/10/2012 - 17:08 | 2243643 Silver Bug
Silver Bug's picture

Just get on a Dollar cost averaging plan. This is your best bet. Take the emotions out of it. Gold and Silver have a long way to run yet.

 

http://jamesturkblog.blogspot.com/

Sat, 03/10/2012 - 17:20 | 2243661 Dermasolarapate...
Dermasolarapaterraphatrima's picture
Don’t count on stocks as an inflation hedge Commentary: Over the long run, equities aren’t an inflation answer

 

"Contrary to opinion, equities are not a good hedge against inflation.”

“In periods of high and increasing inflation, gold and commodities are definitely something you want in your portfolio,” said Mark Johannessen, managing director of Harris SBSB in McLean, Va., and former president of the Financial Planning Association. Dimson, Marsh, and Staunton’s research backs him up. “Gold is the only asset that does not have its real value reduced by inflation,” they write. “Gold has on average been resistant to the impact of inflation."

http://www.marketwatch.com/story/dont-count-on-stocks-as-an-inflation-he...

Obviously, this author has no clue that, 'you can't eat gold.'

Sat, 03/10/2012 - 17:44 | 2243695 SRSrocco
SRSrocco's picture

HAVING FUN WITH PRECIOUS METAL NUMBERS

 

$13.4 Billion spent on all Gold & Silver Eagles 1986-2011

$76 Billion invested in the GLD & SLV (at time of article)

$170 Billion = 1% ownership in Precious Metals compared to total Retirement funds in USA

$17,000 Billion = US Retirement market (as of Q3 2011)

I wrote about this in THE COMING PARADIGM SHIFT IN SILVER, and I would imagine it is best to be exchanging FIAT NOTES for BULLION any chance one can get.

Lastly, I am not in favor of PAPER Gold & Silver ETFS (there are some exceptions... PSLV for one).  I used it above as a form of reference only.

Sat, 03/10/2012 - 19:22 | 2243843 OldTrooper
OldTrooper's picture

You cover alot of ground in that article.  Sent the link to my brother and parents so they'll have some clue why they get silver for Christmas.

Sat, 03/10/2012 - 19:54 | 2243893 dark pools of soros
dark pools of soros's picture

..and then wonder who on your lists gets gold

Sat, 03/10/2012 - 20:22 | 2243913 SRSrocco
SRSrocco's picture

OldTrooper... I am glad you got some use out of that article.  I have two more in the works as we speak.  I am researching the diesel consumption in the mining industry.  BHP Billiton gets the DIESEL HOG award for consuming 436 million gallons of diesel in 2011 at its mines.

We got serious problems coming down the pike as regards to NET OIL EXPORTS.  The Peaking of Oil is one problem, but the decline of Net Exports is twice as bad.  Why??... because of the compounding aspect of the two factors taking place at the same time:

1) declining oil production from OIL EXPORTERS

2) increased domestic consumption from OIL EXPORTERS.

The situation is indeed grim.  Each year the percentage of NET OIL EXPORT DECLINES becomes exponentially worse.  A fraction of analysts understand this principle.

Anyhow... the first article will discuss these aspects as it pertains to the SILVER MINING INDUSTRY.  The second will focus on COPPER & GOLD as they run hand in hand together.

 

Sat, 03/10/2012 - 20:30 | 2243950 OldTrooper
OldTrooper's picture

I'll look forward to that article.  I'm in North Dakota leasing oil and gas, so oil is a subject near and dear to me and good, clear articles are a real treasure.

Oh, and to DPSoros, the only person that gets gold...well, she's really special!  But she does look better in silver, so I indulge her with white gold.  Talk about paying a premium!  Oh well, she's worth it.

Sat, 03/10/2012 - 22:25 | 2244095 Doña K
Doña K's picture

Leads me to believe that as fuel gets more expensive, mining operations will have to adjust ore value upward for the extra cost. Hence, gold and silver will move higher on that reason alone on top of the loss of value in the reserve curency.

Get your gold and silver now so that you could afford fuel in the future.

Sat, 03/10/2012 - 23:53 | 2244219 HungrySeagull
HungrySeagull's picture

They can fix that easily enough, Just stick a few AC Recifier locomotives on rail with a few cars each. One upbound, one downbound in series to and from the bottom of the pit.

Presto no more Diesel fuel only the generating of the power is needed.

Sat, 03/10/2012 - 23:47 | 2244207 Bear
Bear's picture

If you like PSLV, then your best play would be to buy PSLV and sell SLV. So take 10% of wealth and buy physicals and the other 90% in the PSLV/SLV play ... one cannot lose.

Sat, 03/10/2012 - 18:30 | 2243769 IronShield
IronShield's picture

And did you have a point to make before too?

Sat, 03/10/2012 - 21:40 | 2244044 qqqqtrader
qqqqtrader's picture

median home priced in gold

http://qqqqcharts.blogspot.com/

 

Sat, 03/10/2012 - 23:43 | 2244196 Bear
Bear's picture

In 2002, 90 oz got you a 4 cylinder Toyota Camary ... with chrome wheels

Sat, 03/10/2012 - 16:02 | 2243502 Seasmoke
Seasmoke's picture

 

If 90% of your total investable assets (i.e., excluding equity in your primary residence) aren't held in various forms of gold and silver, we at Casey Research think your portfolio is at risk.

 

THERE FIXED IT....

Sat, 03/10/2012 - 16:17 | 2243524 Yardfarmer
Yardfarmer's picture

damn! beat me to it. but more like 95%.

the other 5% resides in storable foodstuffs and steel tubes directing gaseous explosions of gunpowder and lead.

Sat, 03/10/2012 - 17:12 | 2243650 ilion
ilion's picture

Where should I store all of this, in a bunker under the Swiss mountains?

Sat, 03/10/2012 - 17:26 | 2243674 Treeplanter
Treeplanter's picture

No. Put it in boxes hidden by  the most boring books, and mark them as old books. Fill another box with old Playboy mags and movies and keep it out front and on top.  And keep your mouth shut. 

Sat, 03/10/2012 - 17:32 | 2243685 ilion
ilion's picture

Isn't the tax man horny? If he sees the box filled with old Playboys, he might get encouraged to check out also the other old boxes?

Sat, 03/10/2012 - 18:09 | 2243740 Treeplanter
Treeplanter's picture

This works for burglers only.  You will have to ambush the taxman before he shows up.  Maybe someone could suggest a weapon.

Sat, 03/10/2012 - 18:31 | 2243771 Not For Reuse
Not For Reuse's picture

If everyone on ZH actually put 95% of their assets into gold and silver, I'm sure the markets for ammunition, spam, and KI would collapse by at least 50% overnight

Sat, 03/10/2012 - 19:06 | 2243823 Treeplanter
Treeplanter's picture

I plan to sell some mining shares to buy more ammo before Soros buys it all.

Sat, 03/10/2012 - 19:35 | 2243864 Dugald
Dugald's picture

A pit full of Punji sticks???

Sat, 03/10/2012 - 23:33 | 2244180 UP Forester
UP Forester's picture

Only if they're covered in feeshees...

 

Otherwise, try fougasse....

Sun, 03/11/2012 - 13:11 | 2245030 Gold Dog
Gold Dog's picture

90% in Gold the other half in silver- Yogi Berra

Sat, 03/10/2012 - 17:16 | 2243656 CuriousPasserby
CuriousPasserby's picture

Gold and silver used to be 10% of my assets when I bought them at $350 and $4 an ounce. Today they are 50% of my assets because they went up and the rest stayed flat.

Sat, 03/10/2012 - 16:02 | 2243503 GeneMarchbanks
GeneMarchbanks's picture
'Guest Post: Time to Accumulate Gold and Silver?'

Only now you're getting around to this realization?

Sat, 03/10/2012 - 16:21 | 2243539 Sudden Debt
Sudden Debt's picture

It was only after people who stood in front of a comming train and got killed that they started making signs like this:

http://www.featurepics.com/FI/Thumb300/20061229/Train-Warning-Signs-Dang...

Some with gold and silver

Sat, 03/10/2012 - 17:06 | 2243637 AL_SWEARENGEN
AL_SWEARENGEN's picture

This video http://www.youtube.com/watch?v=tDAKC0Nl6kg is akin to Gold and Silver holders escaping what's imminent. 

Sat, 03/10/2012 - 17:47 | 2243705 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

All of the cocksuckers without gold will wish they had some when the SHTF and they have nothing to trade with except for their wife's cunt. 

Sat, 03/10/2012 - 17:50 | 2243709 Flakmeister
Flakmeister's picture

Wow... now that was borderline nasty....

Sat, 03/10/2012 - 18:08 | 2243736 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Welcome to fuckin' Deadwood!

Sat, 03/10/2012 - 18:22 | 2243759 dogbreath
dogbreath's picture

funny one of the few shows on television that I could stand to watch got cancelled.  it was based on real history with real characters and about gold

Sat, 03/10/2012 - 18:41 | 2243785 AL_SWEARENGEN
AL_SWEARENGEN's picture

Young America had their own share of bought out government cocksuckers and monopolists to deal with.  The difference today is America is degrading into a bunch of pussies, afraid to take up arms and take down the corruption.

 

http://www.youtube.com/watch?v=LXu6sIf_C38&feature=related

Sun, 03/11/2012 - 15:31 | 2245331 DosZap
DosZap's picture

AL_SWEARENGEN

Young America had their own share of bought out government cocksuckers and monopolists to deal with.  The difference today is America is degrading into a bunch of pussies, afraid to take up arms and take down the corruption.

 Al, exactly why we have INDOCTRINATED, and made it illegal to be anything but PC.

Sat, 03/10/2012 - 18:58 | 2243795 slewie the pi-rat
slewie the pi-rat's picture

and medicine

the profession's dedication to keeping the hookers healthy enuf so their clients could still get out there to bring back the gold for the gambling, sex, booze, and gunfights

i thought they'd cloned the old doc from gunsmoke, milburnStone

Sat, 03/10/2012 - 19:59 | 2243900 geekgrrl
geekgrrl's picture

Unfortunately, Mr LH is probably correct.

Sat, 03/10/2012 - 18:21 | 2243758 deflator
deflator's picture

 You know times are either real bad or you're wife is real ugly when there are no bids...

Sat, 03/10/2012 - 18:55 | 2243808 kill switch
kill switch's picture

LH I'm shocked that you are nearing the edge,,,, The edge as defined by Hunter S. Thompson

 

 The edge,, there is no honest way to explain it because the only people who really know where it is are the ones who have gone over.

Sun, 03/11/2012 - 15:37 | 2245340 Kobe Beef
Kobe Beef's picture

"Only when people say you have gone too far, will you know you have done enough."

-The Hagakure

Mon, 03/12/2012 - 01:40 | 2246484 squexx
squexx's picture

You know the bitch is REALLY ugly if she's married to a wanker like Lennon Hendrix!

Mon, 03/12/2012 - 19:22 | 2248937 Death and Gravity
Death and Gravity's picture

EPIC.

Sat, 03/10/2012 - 16:14 | 2243529 Sudden Debt
Sudden Debt's picture

Correction: the kind of gold and silver you can hold in you hands

Sat, 03/10/2012 - 17:04 | 2243632 sitenine
sitenine's picture

Is there any other kind?

Sat, 03/10/2012 - 18:33 | 2243774 IronShield
IronShield's picture

Exactly...

Sat, 03/10/2012 - 16:17 | 2243534 TheSilverJournal
TheSilverJournal's picture

Seeing that the purchasing power of silver is set to rise by at least 30 times over the next few years, yes, it is time to accumulate.

TheSilverJournal.com

Sat, 03/10/2012 - 16:25 | 2243553 HoofHearted
HoofHearted's picture

We should continue to accumulate. It was much better to accumulate when we were paying $10 an ounce for it.

Sat, 03/10/2012 - 17:02 | 2243626 espirit
espirit's picture

I concur.  Still feels odd though to get the "deer in the headlights" look when I advise to buy phyzz or explain currency debasement.

Sheeples still don't get it.

Sat, 03/10/2012 - 17:41 | 2243699 Treeplanter
Treeplanter's picture

Even smart people don't get it.  Do we support all these people we warned when they are stuck with the Zimbabwe dollar?  I'm afraid I'm a little cranky about that idea.

Sat, 03/10/2012 - 18:01 | 2243721 tickhound
tickhound's picture

"Smart" has little to do with it.  Cognitive dissonance, together with being a direct beneficiary of the ponzi, makes for one potent sleeping pill.

Sat, 03/10/2012 - 18:23 | 2243761 TheSilverJournal
TheSilverJournal's picture

It's always worth it to help people. The best way to help people is to create the most resources that people need the most and the best way to measure that is how much profit you can make. It's a beautiful thing that making the most money honestly is the best way to help the world.

Sat, 03/10/2012 - 20:41 | 2243970 OldTrooper
OldTrooper's picture

How true.  Sounds like something Jeffrey Tucker would write.  http://mises.org/daily/author/205

Sat, 03/10/2012 - 17:55 | 2243712 TheSilverJournal
TheSilverJournal's picture

Or the response of "I don't worry about that kind of stuff," is pretty perplexing. I guess whether or not some people are able to feed their famiily the next year is not yet fashionable. When the printing press is rendered worthless and 46M people don't get their food stamps, the real interesting times will be upon us.

Sat, 03/10/2012 - 18:05 | 2243730 cowdiddly
cowdiddly's picture

Thats where the .999 fine Pb comes in.

Sat, 03/10/2012 - 20:32 | 2243954 smiler03
smiler03's picture

Seeing that the purchasing power of silver is set to rise by at least 30 times over the next few years.

That is an awfully bold claim. You have no qualms about stating "at least 30" but you are a whole lot more vague about "the next few years". Would it be 5 years? 10 years? 25 years?

Sat, 03/10/2012 - 23:03 | 2244137 UP Forester
UP Forester's picture

How long will it take for Thor's Hammer to stop playing whack-a-mole with silver?

How long before sheeple realize pretty pieces of printed paper (or 10% cotton, 90% linen if you like) are worthless?

 

And here I thought pop was something you drink.  Apparently, it's the sound when you finally pull your head out of your fifth point of contact....

Sat, 03/10/2012 - 23:13 | 2244151 BooMushroom
BooMushroom's picture

My immediate family thinks I'm nuts for stockpiling food. But they have no problem discussing which of their credit cards "has room on it" to buy more McFood or another shirt that will barely fit in the closet. Meanwhile I'm teaching myself to cook from scratch, and in solar ovens and over a fire.

We all know who they'll come to if the stores are asking for wheelbarrows full of cash for a ham.

Sat, 03/10/2012 - 16:22 | 2243545 MinnesotaMD
MinnesotaMD's picture

Govt. will try to fix the market in stasis. I've heard rumors govt might stop dealing with brokers for retail silver as part of Volcker Rule. I have no confirmation in print, but they are still working on the rule. Fed is having closed door meetings with big banks to vet the rule. I sense they don't want anyone to win but banks in dollar denominated assets. They really dont want gold bugs like the Paulists to win. They can't be allowed to beat the elite.

Sat, 03/10/2012 - 17:07 | 2243639 espirit
espirit's picture

Patient is starting to smell and needs to be buried, but the Fed is still yelling "clear" and applying the defib paddles.

No twich left in those nerves.

Sat, 03/10/2012 - 17:29 | 2243680 Sudden Debt
Sudden Debt's picture

Oh well, you can keep him in his bed a few more days and bill the family for the extra care

Sat, 03/10/2012 - 20:11 | 2243921 prole
prole's picture

Oh that is cold brother that is cold.

(It's probably 100% accurate)  but still cold!

I think the best thing for PM bugs is to spread the good word about au/ag,

or the paper ponzi masters will overwhelm us with paper, and we will be vanquished.

 

Sat, 03/10/2012 - 19:46 | 2243884 living on the edge
living on the edge's picture

Minn MD,

Trust me the "elite" are buying gold and silver at shocking rates. They are well aware of the financial catastrophe coming our way.

Sat, 03/10/2012 - 16:32 | 2243561 sitenine
sitenine's picture

This isn't a recession.

This is a world wide fiat printing currency destroying debt ridden hyperinflationary nightmare that has only just begun.  Luckily, we get the deflationary spiral first, so buying up assets makes pretty good sense - which implies that 'cash is king' even as it is being destroyed (interesting times we live in, yes?) - at least from my pov.

And seriously...

I wouldn't care less if gold tripled in price tomorrow - the minute I could afford another oz, I would get more!

I wouldn't care less if gold drops 70% tomorrow - the minute I could afford another oz, I would get much more!

Sat, 03/10/2012 - 18:37 | 2243780 IronShield
IronShield's picture

If the price dropped by 70% tomorrow you would get ...  Nada freakin thing.  But I like your dream.

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