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Roubini Asks of ‘Goldbugs’ on Twitter “Where is 2,000?”

Tyler Durden's picture




 

From GoldCore

Roubini Asks of ‘Goldbugs’ on Twitter “Where is 2,000?” - Ignores Academic Research

Gold is trading at USD 1,626.10, EUR 1,261.20, GBP 1,067.30, CHF 1,557.40, JPY 129,550 and AUD 1,643.0 per ounce.

Gold’s London AM fix this morning was USD 1,635.00, GBP 1,055.32, and EUR 1,255.18 per ounce.

Yesterday's AM fix was USD 1,665.00, GBP 1,068.75, and EUR 1,262.22 per ounce.


Gold in USD – 1 Yr (100, 144, 200 DMA – yellow line at $1,618/oz)

Gold is marginally higher in most currencies today and bargain hunters are beginning to buy after the recent price falls. The falls were due to recent dollar strength, liquidity issues in the financial system and weak technicals.

We warned in August that gold could trade as low as $1,500/oz or $1,600/oz as it had become over extended and overbought in the late summer. 

How much further might gold fall? Market momentum is a powerful force and therefore further weakness is quite possible. 

Support is at the 200 day moving average at $1,619/oz. Below that is the psychological level of $1,600 per ounce and the 250 day moving average of $1,571/oz.

Price resistance was seen at the $1,570/oz level between late April and July 2011 (see chart) and this level could become support as is often the case in bull markets.

It is important to note that gold’s falls have been primarily dollar related and gold has fallen by a lot less in pound and in euro terms.

Most analysts of the gold market remain of the view that this is another correction and that the medium and long term uptrend will continue due to significant investment, store of wealth and central bank demand due to geopolitical, macroeconomic, systemic and monetary risk.

One analyst who appears to have a very different view regarding gold is world renowned economist Nouriel Roubini. 

The Chairman of Roubini Global Economics has again taken to Twitter to engage in some name calling and to appear to question gold’s recent price action and whether gold may reach $2,000/oz.

Nouriel Roubini
@Nouriel New York
Professor at Stern School, NYU, Chairman of Roubini Global Economics (www.roubini.com), blog at www.economonitor.com/nouriel/ , co-author of Crisis Economics

Roubini or @Nouriel tweeted yesterday evening:

“Gold at a 7 weeks low down to 1635. Where is 2000 gold dear gold bugs?”

The tweet continues his frequent somewhat intemperate and aggressively dismissive tone with regard to gold itself and people who own it. He has also been  intolerant of people and experts who believe that a form of gold standard might be beneficial to the global monetary and financial system.

It is interesting that the tweet did not have dollar symbol or mention USD or dollars. 

Our expertise is not monetary economics so we will leave that debate to others (see commentary). However, we would note that experts on monetary policy such as the President of the World Bank, Robert Zoellick, and former Federal Reserve Chairman, Alan Greenspan, have proposed considering a return to some form of gold standard.

With regard to gold’s price and whether it is a bubble as has been suggested by Nouriel frequently, we do have an opinion.

Our opinion has been consistent - it is that markets are very unpredictable and it is extremely difficult to predict the future price movement of any asset class. It impossible to predict the future price movement of all asset classes over different time frames and over a long period of time.

This is the reason that we advise clients to have a genuinely globally diversified portfolio with allocations to global equities, global bonds (high credit, low duration), cash and gold. 

Diversification is the closest thing there is to a free lunch. 

The majority of investors, both institutional and individual, will find that the best way to invest is through an institutional index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.

Nouriel and many other experts continue to focus on the nominal price of gold in dollar terms. They fail to adjust for inflation and they fail to look at gold in euro, pound or other fiat currency terms.

By continually focusing on the dollar price, they completely fail to see and understand gold’s value.

Gold’s value has proven itself a safe haven both historically, in recent years and academically. There is now a large body of academic and independent research showing gold is a safe haven asset. 

Numerous academic studies have proved gold’s importance in investment and pension portfolios – for both enhancing returns but more importantly reducing risk.

The importance of owning gold in a properly diversified portfolio has been shown in studies and academic papers by Mercer Consulting, Bruno and Chincarini, Scherer, Baur and McDermott and the asset allocation specialist, Ibbotson.

An academic paper, ‘Hedges and Safe Havens – An Examination of Stocks, Bonds, Oil, Gold and the Dollar'  by Dr Constantin Gurdgiev and Dr Brian Lucey and was presented in November at a conference hosted by the Bank for International Settlements, the ECB and the World Bank.

This excellent research paper clearly shows gold's importance to a diversified portfolio due to gold's "unique properties as simultaneously a hedge instrument and a safe haven."

Oxford Economics research on gold in July 201, showed how gold is a good hedge against inflation as well as deflation.

Only last week, more excellent independent research was released confirming gold's unique role as a diversifier and foundation asset in the portfolios of investors, especially at a time of heightened currency,  investment and systemic risk.

The independent research from highly respected New Frontier Advisors (NFA) confirms the importance of gold as a portfolio diversifier to investors in Europe and to investors exposed to the euro.

As an academic and an economist, it is incumbent on Dr Roubini to do some research on this and thoughtfully reply. Engaging in name calling by calling people ‘gold bugs’ who advocate investing in gold is not professional. 

It is the economics of the playground and akin to someone calling Dr Roubini a ‘paper bug’, an ‘equity bug’, a ‘bond bug’, a ‘dollar bug’ or God forbid a ‘spam bug’.

We have some respect for Dr Roubini as a macroeconomist and have indeed shared many of his concerns in many years and shared them with our clients and the wider public as long ago as 2005 and 2006 when we and he warned that the US would soon follow in Iceland’s footsteps: (‘Today Iceland: Tomorrow Turkey, Hungary, Australia, New Zealand, US’ 30/03/06)

However, giving financial advice is not his expertise and he may be better suited focusing on his strengths.

Roubini is regarded as a guru by many experts and opinion makers internationally and there is a real risk that his opinions regarding gold could lead to poor and imprudent investment decisions.  

In December 2009, when gold was at $1,100/oz, he said that "all the gold bugs who say gold is going to go to $1,500, $2,000, they're just speaking nonsense."

One of our clients actually sold their gold allocation on the basis of this statement. Despite gold being the one asset class that had protected them during the crisis. 

It is possible we have misunderstood Dr Roubini and his opinions regarding gold and we would welcome a television debate on this matter with him. 

He advocates printing money to help the economy and people. He should also encourage people to protect themselves by diversifiying and owning some gold, which can offer a hedge to the possible consequences of currency debasement.  

Roubini has been fairly good at calling world economic events in recent months, however his investment ‘advice’ has been poor and he appears to not understand ‘investments 101’ which is diversification. 

For breaking news and commentary on financial markets and gold, follow us on Twitter.

SILVER 
Silver is trading at $29.73/oz, €22.90/oz and £19.23/oz 

PLATINUM GROUP METALS 
Platinum is trading at $1,448.75/oz, palladium at $617.50/oz and rhodium at $1,425oz. 

NEWS
(Bloomberg)
Gold Rebounds From Eight-Week Low as Two-Day Decline Encourages Purchases

(Reuters)
U.S. gold falls 2 percent on dollar rally

(Reuters)
Weaker gold to test, but not crack ETF holder nerve

(Financial Times)
Gold ETF holdings hit record high

COMMENTARY
(Financial Post)
Nouriel Roubini’s Lapse in Standards

(MarketWatch)
Contrarians detect strong wall of worry in gold market

(ZeroHedge)
Greek Bank Run Hits Record: Unprecedented €6.8 Billion In Deposits Pulled From Greek Banks In October

(Business News Network)
Video Interview with Kyle Bass: Deposits Leaving PIIGS – Final Precursor to Sovereign Defaults

(Financial Times)
Make your own (collateralised) gold standard

(Wall Street Journal)
Is Gold the Answer to Europe's Crisis?

 

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Wed, 12/14/2011 - 11:02 | 1978505 jcaz
jcaz's picture

What- not busy teaching?

Those who can't.......

Wed, 12/14/2011 - 11:06 | 1978531 bigdumbnugly
bigdumbnugly's picture

that's ok if that douche tweets that tripe.

but if he flaunts it to my face i am forewarning him i am just not in the mood and may not be able to control my response...

Wed, 12/14/2011 - 11:16 | 1978598 johny2
johny2's picture

Typical of Roubini, who has been short euro for ages now, and hurting day and night, and now that he thinks he may be able to actually to see dollar reach parity with euro, he is getting bit emotional. Don't pay any notice to the moron, the Gold bugs should not bothered by fools like Roubini.

Wed, 12/14/2011 - 11:36 | 1978752 Hard1
Hard1's picture

The coordinated sale by central banks is our last chance to buy gold at these prices before these central banks collapse.  They are looking at their balance sheet and their only way for them to survive is to mark their liabilities (money in circulation) at the same price of their assets (the famous crappy mortgages that are in the heart of our leveraged financial mess).  Now they are selling their only valuable asset before it gets rehypothecated by the custodian.

Wed, 12/14/2011 - 11:37 | 1978756 Turd Ferguson
Turd Ferguson's picture

Fuck Roubini. He can suck my crank.

What a fucking douchebag.

Wed, 12/14/2011 - 11:41 | 1978785 GeneMarchbanks
GeneMarchbanks's picture

Turd just went Leeroy Jenkins. Turd, I know you're a pro, but the 'paper price' is exactly why I bought physical, don't trust them numbers.

An emotional Turd. Never seen that before...

Wed, 12/14/2011 - 11:55 | 1978861 s2man
s2man's picture

Surprised me, too.

He probably just hasn't had his coffee yet.

Wed, 12/14/2011 - 12:02 | 1978894 trav7777
trav7777's picture

I'm tweeting to silverbugz about "$60 by next week" and "$49 by the end of the week"

Wed, 12/14/2011 - 13:10 | 1979215 nope-1004
nope-1004's picture

When the S&P was at 710 and climbing post 666, Roubini said this was a "suckers rally".

I've stopped following him because he has been 100% wrong on EVERYTHING.  So I gotta go with his record:  If Roubini says Gold won't hit $2,000, y'all know it will.

 

Wed, 12/14/2011 - 15:02 | 1979756 akak
akak's picture

When I want financial advice from cereal box cartoon characters, I will stick with the Lucky Charms leprechaun (who at least hoards gold) instead of this disingenuous, Keynesian Count Chocula.

Wed, 12/14/2011 - 15:21 | 1979834 LFMayor
LFMayor's picture

LOL, good call.  I initially though he looked a lot like Erik Estrada.

Wed, 12/14/2011 - 15:31 | 1979873 akak
akak's picture

Maybe Eric Estrada after a number of years on heroin.

The analogy, come to think of it, is not that far off, either, as Keynesianism is an insidious and mind-destroying drug, much like heroin --- except heroin use hurts only the user, whereas Keynesianism destroys everyone else around the public user, not just the user himself.

Wed, 12/14/2011 - 16:53 | 1980337 Hive Raid
Hive Raid's picture

Jews play many roles in the Jew Tower of Lies. Some Jews are awarded certificates by other Jews, deeming them "authorities" in the eyes of the suckers. Then the Jew scribes, also awarded various honors by other Jews, manufacture daily doses of propaganda based on the trusted advice of the authority Jews. Jew-owned Jew-run entities disperse this virulent bio-weapon of mass mind destruction over the sucker population. And so the Jew bankers can continue to enslave and destroy.  The Jew Tower of Lies.

Wed, 12/14/2011 - 12:02 | 1978897 Turd Ferguson
Turd Ferguson's picture

No, he's just such an arrogant, tenured prick. Fuck him.

Even worse is the asshole Gartman. Why on earth anyone listens/follows him is beyond me. He's either hopelessly stupid (in which case he should be ignored) or he's a book-talking, agent of disinformation (in which case he should be ignored).

Be patient. Paper gold may finally see 1550 today. That level will be your big opportunity to get long.

Wed, 12/14/2011 - 12:09 | 1978936 jekyll island
jekyll island's picture

Gartman announced had sold all his personal gold holdings yesterday, but couldn't sell the gold in his hedge fund because he can only make changes at the end of every month. 

Roubini, well a broken clock will be right twice a day.  Let's all tweet him back after the Fed announces QE3. 

Wed, 12/14/2011 - 12:11 | 1978954 The Big Ching-aso
The Big Ching-aso's picture

 

 

Ya, I think all that campus pussy is affecting his brain.   Everything smells like roses to him except the precious.

Wed, 12/14/2011 - 12:15 | 1978973 Turd Ferguson
Turd Ferguson's picture

Sorry for the spam but I feel this is pretty important.

http://www.tfmetalsreport.com/blog/3147/only-charts-matter

Wed, 12/14/2011 - 16:07 | 1979543 OliverTwist
OliverTwist's picture

Turd wrote: ..."With one-month lease rates at -0.5%, the bank actually gets paid interest by the lender to borrow the gold." ..

Lease Rate = LIBOR – GOFO (it can be also negative if GOFO > LIBOR)

Please have a look on the following link:

http://goldchat.blogspot.com/2010/07/understanding-negative-lease-rates.html

And if you still beleave that you can get paid by borrowing gold try it out for yourself in real life!

Wed, 12/14/2011 - 18:35 | 1980784 fourchan
fourchan's picture

not one damn thing matters but this,

 

good money forces out bad.

Wed, 12/14/2011 - 12:27 | 1978978 Max Fischer
Max Fischer's picture

 

 

Telling your gullible followers that "paper" prices matter on the way up (silver to $50!!, silver to $100!!), but don't on the way down ("don't worry, this collapse is just 'paper' games by the 'cartel'") is just as irresponsible and damaging as any of the media whores you criticize daily.  It is nothing more than a convenient yet hypocritical argument which enables you to be right no matter which direction the "paper" goes. Lucky for you, many of your gullible readers don't question it because they're so damn emotional about their metals.  Perhaps they might when they try to find a "selling opportunity" instead of the non-stop "buying opportunities."

Max Fischer, Civis Mundi

 

 

Wed, 12/14/2011 - 12:30 | 1979037 Turd Ferguson
Turd Ferguson's picture

Fuck you asshole.

Let's see you try running a website that you update twice a day. Every prick in the world, such as yourself, can show up with 20/20 hindsight and claim that I suck. Fine. Fuck you anyway. If you had actually been reading my site for the past week, you'd know that I've been warning people about this since about 1750.

 

ahhh... that felt pretty good. Cathartic. On my site, I always have to be polite and treat people with respect. It sure is fun to come here and blast away sometimes.

 

Wed, 12/14/2011 - 12:32 | 1979046 NotApplicable
NotApplicable's picture

No lack of targets, that's for sure.

Wed, 12/14/2011 - 13:10 | 1979211 Max Fischer
Max Fischer's picture

 

 

The "pressure" to create 2 posts a day is of little consolation to all the bagholders wondering if the "paper" prices they paid all year long really doesn't matter today. 

For the record, It's not your bad calls that I'm criticizing. It's all the conspiracy-driven disinformation/lunacy that needs to stop.  For whatever reason, the precious metals community is so full of bullshit and bad information it's ridiculous.  Crash JP Morgue, buy physical!  Price doesn't matter!  The gubbermint gonna get my stash!  The Cartel is attacked us overnight!  Paper and physical are decoupling!  Silver and gold parity!  The COMEX is going to implode!  There's a shortage of silver!  Etc. Etc. etc....

It's all nonsense, and you're squarely in the middle of it - although not quite as bad as SGS. 

Max Fischer, Civis Mundi

 

Wed, 12/14/2011 - 13:15 | 1979230 nope-1004
nope-1004's picture

Then stick your balls on the line:  Where will PM's go?  Give us your target.  Is gold going to $100?  Silver to $2,50?

Easy to criticize when banksters like you have nothing to offer AFTER the heist.

 

Wed, 12/14/2011 - 13:27 | 1979260 Max Fischer
Max Fischer's picture

 

 

How the fuck would I know where gold will be in six months?  As I said, It's not the price predictions that I'm criticizing.  It's the bullshit analysis and disinformation garbage that I'm commenting on.  

Max Fischer, Civis Mundi

Wed, 12/14/2011 - 13:50 | 1979387 fonestar
fonestar's picture

Good for you.  We are buying and holding gold and silver because there may not be a market, an economy or a dollar in six month's time.  The people here are smart enough to see that this fractional reserve system is nothing but an onion composed layer upon layer of nothing but complete bullshit, smoke and mirrors.  So personally, I do not care what the price of paper gold is six months from now (the denominator) because the end result of this mathematical equation is a non-number.  However, a scarce element will still be a scarce element.

 

Now, go somewhere where you're wanted.

Wed, 12/14/2011 - 14:30 | 1979607 tmosley
tmosley's picture

So, basically, you just want him to shut up.

I wonder why?

Wed, 12/14/2011 - 15:14 | 1979804 Bay of Pigs
Bay of Pigs's picture

Disinformation? Really? Why don't you explain things for us then?

Bullshit analysis? Did you know Turd called this takedown 100% correctly you fucking douche?

Wed, 12/14/2011 - 15:22 | 1979837 LFMayor
LFMayor's picture

Max Fisher,  Pillow Biter

Wed, 12/14/2011 - 19:37 | 1981012 jcaz
jcaz's picture

Oh really, "Max"?  "I don't know"....  Here, let me write that up on the board, so all the class can see for themselves-

"Gee Mr Hand- I don't know"

If you don't have the balls to take a stand, why are you on this board? 

Because you don't have any skin in the real game, and never will.

Bill Murray was right to bitch-slap you......

Wed, 12/14/2011 - 13:28 | 1979277 fuu
fuu's picture

His last real prediction was gold under $1000. Admittedly that was before the QE and was a while ago.

http://www.zerohedge.com/article/gold-plunges-paulson-liquidation-speculation-abounds-again-fund-rumored-be-down-1-billion-da#comment-474301

Wed, 12/14/2011 - 15:25 | 1979857 LFMayor
LFMayor's picture

Max Fischer,  strangles small pets in the nude

Wed, 12/14/2011 - 13:28 | 1979280 Eally Ucked
Eally Ucked's picture

And you decided to fight "conspiracy-driven disinformation/lunacy? First, everybody has brain and can decide what is true and what is not, and doesn't need your help to do that. Second, if you're such a fighter of disinfo and lunacy can you tell us if you fight them in any other field than precious metals?

Wed, 12/14/2011 - 13:36 | 1979310 fonestar
fonestar's picture

Fuck off and go to Yahoo Finance or CNBC chat with the other tools.  Your dollar-cult is fucking finished and good riddance!  Most of us here on ZH are at least good enough armchair historians to know the end days of a monetary empire when we see one and connect the dots.  Personally, I will feel little sympathy for the likes of you tools who bought into every stupid notion sold to you by your lard-assed, credit driven society!!

Just fuck off and go somewhere else!!

Wed, 12/14/2011 - 15:07 | 1979772 akak
akak's picture

Fonestar, I couldn't have said it better myself.  Bravo!

This MaxFisher is just another mental slave of the Establishment, whether he realizes it or not.

Wed, 12/14/2011 - 15:24 | 1979846 LFMayor
LFMayor's picture

Max Fischer, Master of the Bearded Bag Pipe

Wed, 12/14/2011 - 19:26 | 1980975 Jendrzejczyk
Jendrzejczyk's picture

You're killin me tonight.

Wed, 12/14/2011 - 15:28 | 1979877 LFMayor
LFMayor's picture

Max Fischer, drives slow through school zones

Thu, 12/15/2011 - 03:24 | 1982353 StychoKiller
StychoKiller's picture

Yeesh!  In my estimation, Au & Ag are "wealth insurance," NOT an investment -- check yer premises.

Wed, 12/14/2011 - 12:31 | 1979040 NotApplicable
NotApplicable's picture

PM holders don't measure wealth in dollars, as they are transitory.

Wed, 12/14/2011 - 12:45 | 1979111 Dr. Richard Head
Dr. Richard Head's picture

ALL great things are measured in pounds and ounces.  You know what I'm saying? Babies, metals, food, smoke,etc.

Wed, 12/14/2011 - 12:58 | 1979160 tmosley
tmosley's picture

I have been saying the paper price would go to zero for about a year now.  During the run up, I became truly exasperated that the price was rising so much, because it was moving up fast enough that it would have saved the COMEX by bringing fresh supply of physical onto the market.

But even if that weren't the case, why would a buyer of silver be sad to see lower prices?  It's not as if there haven't been 60% drops in a month before.  Yet every time, a year afterwards, it would be back up, and strongly.

The open interest is the important number here, and it hints at mass exodus from paper PM markets.

Wed, 12/14/2011 - 12:58 | 1979166 fuu
fuu's picture

Oh good, Rednecks for Prosperity has made an appearance.

Thu, 12/15/2011 - 00:58 | 1982171 Lord Koos
Lord Koos's picture

You may not like Maxie but he has a valid point... there is an awful lot of inconsitency within the PM crowd (and I am a member of that crowd).  Judging by the reaction he's hit a nerve.

Thu, 12/15/2011 - 03:36 | 1982360 StychoKiller
StychoKiller's picture

How many people go around churning their life insurance policies?  Why then, should one then go about churning their "wealth insurance" policy, which is what Au & Ag truly are at this point? 

A lot of people show up at this site, looking for answers, not just investment advice; especially when some of those answers lead to the conclusion(s) that the global financial system(s) is heading for a complete breakdown!  I understand why some get confused at all the rationalizations concerning Au & Ag, but those folks (the rationalizers) are still thinking in terms of PMs being investments. 

Once one sees the growth of the FRN money supply going exponential, it becomes quite clear that sooner or later, investment as a process, is gonna be come transformed into something unrecognizable to most people.

Get ready, The Great Implosion™ is coming...

Wed, 12/14/2011 - 14:48 | 1979693 Augustus
Augustus's picture

If you have funds to buy at 1550, it would mean that you must not really be fully invested in gold.  Why have you been hiding the info that you did not trust gold and have been in cash?

That is more twisted than a hog dick.

Wed, 12/14/2011 - 15:41 | 1979844 akak
akak's picture

Or, he simply has had additional income since his last purchase, you idiot.

Wed, 12/14/2011 - 11:45 | 1978808 Kaiser Sousa
Kaiser Sousa's picture

damn Turd...dont hurt nobody "Hammer"....

Wed, 12/14/2011 - 12:38 | 1979056 flattrader
flattrader's picture

A comment from Turd's site caught my eye...which if true would explain a lot of the weirdness I've seen the past 2 1/2 days...though I think there is some hysteria in his last two points, something is definitley wrong at the CME.

CME Broke?
Submitted by Strongsidejedi on December 14, 2011 - 10:45am.

Hat Tip!


5

I've written an op/ed piece on the CME behavior in the last 90 days.

http://www.tfmetalsreport.com/forum/3148/cme-broken

I'd like to get other's take on my comments.

Please feel free to destroy my argument.
Please!

However, my current conclusion is that the CME is broke.

I think we're seeing an attempt to paper over the default of the market itself.

CME can not back the trades being made on its market.

CME can not claim to have a legitimate price action on gold or silver because the settlement of the contract itself is broken.

Therefore, my conclusion is that the MF Global bankruptcy is a financial 9-11 event.

MF Global has taken out the entire agricultural industry's financial structure.
MF Global is much worse than 9-11.

MF Global has essentially interfered with the planting season for 2012.

Wed, 12/14/2011 - 13:08 | 1979206 Bay of Pigs
Bay of Pigs's picture

Good to see you over there Kaiser...

Wed, 12/14/2011 - 11:47 | 1978821 CrazyCooter
CrazyCooter's picture

In college, I solved a problem presented by the professor (i.e. built a solution) that had not been fully nailed down since he was presenting it in the ciriculum (~ 1 year). It was a neat trick to make the problem much easier to work with. I had students visit me for multiple semesters after for the trick so they could complete the lab.

I felt really smart!

Then I did something really, really dumb (lets not talk about it here)...

My point?

Just because Roubini did some great work and has recieved much aclaim for it, doesn't mean he knows everything. I mean, fuck, I am just a redneck and I figured that out in college ...

So just apply common sense, keep the ideas that are elegant, improve on the ideas that work, and pass on the ideas that are broke.

Regards,

Cooter

 

Wed, 12/14/2011 - 11:55 | 1978858 Tsunami Wave
Tsunami Wave's picture

Exactly. For people like him, if he's someone that only has to be right - even about something bold once, you just retire at the top and then at least every now and then offer opinions.  He's not very bright though and his own institute is completely broke anyway. He should just keep quiet and stay as an NYU professor.

Wed, 12/14/2011 - 12:12 | 1978958 Stuart
Stuart's picture

Roubini is almost a perfect contrarian indicator like Gartman.  Gartman says sell, now Roubini mocks it,.... holy crap... BUY, BUY, BUY!!!

 

Wed, 12/14/2011 - 12:06 | 1978918 fonestar
fonestar's picture

Cooter, it seems like us rednecks, mechanics, technicians, etc, etc (people who have real jobs in the real world) make much better economists than the economists do.

Wed, 12/14/2011 - 12:03 | 1978901 fonestar
fonestar's picture

I've actually been endeavouring lately to understand the mind of the paper bugs, something that I haven't really tried before because it just runs so contrary to what I see as basic logic.  They seem to see gold as representitive of an oppressive age when wealth was tied to physical scarcity.  They don't seem to understand the relationship between scarcity, supply and demand though.  They seem to think that if everyone just thinks like they do (and suffers a collective amnesia) that wealth can be summoned into existence via the printing press.  For them gold and silver is like discussing cancer in the nuclear family of the 1950's.  Best not to even bring up reality, lest someone suffer the pangs.

Thu, 12/15/2011 - 03:41 | 1982362 StychoKiller
StychoKiller's picture

Virtually everyone draws the wrong conclusions from History, at some point in their lives.

Wed, 12/14/2011 - 12:18 | 1978988 trav7777
trav7777's picture

yeah this type of schadenfreude is unbecoming...Rubeini has been wrong for so long that he's just desperate.

But, at this point, gold has knifed thru the 200DMA and is entering oversold territory, but not horribly so...way outside lower BB.  Needs to rally convincingly soon.  The weekly chart looks fuckin ugly, absolutely looks waterfallish

Wed, 12/14/2011 - 12:39 | 1979072 Temporalist
Temporalist's picture

And when did it start its drop?  Just when it hit the upper band, literally almost the exact moment it hit $1750.  All around the same time MF Global loses customer accounts and client contracts, and lease rates drop, yet the Chinese are buying increased amounts, the Eurozone is on a continued decline with no solutions, there is saber rattling in Iran and around the ME and Russia to China....it's all  conveniently manipulative or contradictory.

Wed, 12/14/2011 - 14:12 | 1979512 tmosley
tmosley's picture

This is HILARIOUS, coming from you.

Everything is moving as I predicted it would.  U jelly?

Wed, 12/14/2011 - 19:38 | 1981015 Jendrzejczyk
Jendrzejczyk's picture

You don't find your own delight in my pain over the silver drop unbecoming?

Wed, 12/14/2011 - 12:23 | 1979001 WhiteNight123129
WhiteNight123129's picture

Just bought a few tens of ounces today. What does he think that pushing down Gold will make the debt burden of the US sustainable???? He can piss off.

Wed, 12/14/2011 - 12:26 | 1979017 WhiteNight123129
WhiteNight123129's picture

He wants a fight, he will get one, this is fight club!

Wed, 12/14/2011 - 14:04 | 1979424 mr_T
mr_T's picture

Roubini has NO class. I went ape shit when he attacked Rickards without even reading his book.. he's a jealous little bitch. Could not stand our boy Rickards getting the spotlight for a few weeks. "Pity the fool" is too light for that biach.. Fuck you jive Turkey.. we will see who has last laugh when all is said and done ....Sucka

i

Wed, 12/14/2011 - 11:38 | 1978763 Pladizow
Pladizow's picture

Gold makes Roubini and other keynesians irrelevant - it is a direct threat to their livelihood.

Roubini and many others will become the antiquated relics!

Roubini = white noise.

Wed, 12/14/2011 - 11:16 | 1978603 clymer
clymer's picture

Judging by this pic, i'd say your response might get him excited..

 

http://gawker.com/nouriel-roubini/

Wed, 12/14/2011 - 11:21 | 1978640 ShankyS
ShankyS's picture

Where was $1200 will be the more likely question before this is all over you douchebag. My how the mighty have fallen. This ass flops moore than a politician. 

Wed, 12/14/2011 - 11:28 | 1978694 taraxias
taraxias's picture

$2,000 is there, right in front of your nose, for those who understand what the fuck is going on.

 

Roubini is an one trick pony whose time has already come and gone.

 

Stay long, stay strong......PHYSICAL.

Wed, 12/14/2011 - 11:57 | 1978868 A Lunatic
A Lunatic's picture

And don't forget kiddies, when you price your gold in GOLD it really doesn't fucking matter.

Wed, 12/14/2011 - 13:01 | 1979173 mayhem_korner
mayhem_korner's picture

Price your gold in GOLD

 

Awesome!  As I posted elsewhere, the 'pundits' still think the sun revolves around the earth.  The value of gold doesn't change so much as everything around it does.

With a stack-WAC of $885, I think I can ride this paper-panic-puppy out.  :D

Thu, 12/15/2011 - 03:46 | 1982368 StychoKiller
StychoKiller's picture

The further it drops, the more those that understand exponential functions are gonna buy (Physical, that is!) -- THERE IS NO POLITICAL WILL TO MAKE ANY REAL CUTS IN GOVT SPENDING, ANYWHERE!

Wed, 12/14/2011 - 12:08 | 1978928 stirners_ghost
stirners_ghost's picture

I agree with you, but wouldn't be surprised to see $1200 again before $2000. The scramble for dollars as balance sheets implode will shake out a lot of weak goldbugs.

Wed, 12/14/2011 - 11:33 | 1978677 bigdumbnugly
bigdumbnugly's picture

yikes.  thanks for posting that, cly. after viewing i think maybe i'll leave it to someone else.

 

Wed, 12/14/2011 - 11:50 | 1978830 Conax
Conax's picture

Thanks for the link- I printed out the pic for a trip to the shooting range this afternoon.

Practice makes perfect.

Wed, 12/14/2011 - 11:24 | 1978664 Ignatius
Ignatius's picture

A while back this assclown Roubini was saying that gold prices of $1500 - $2000/.oz. was 'crazy talk' (sic).

Talkin' the 'company line' is his employment insurance. 

I've been in since the middle of '03 and I'll put my returns against his anytime (didn't he recently fold his investment firm?). 

Wed, 12/14/2011 - 12:48 | 1979121 Temporalist
Temporalist's picture

"didn't he recently fold his investment firm?" Yes...

""In the current year, RGE is estimated to have $14 million in revenue but is expected to lose $2 million. Upon learning this, calls by CNBC to Roubini and his company's spokesman were not returned."

http://www.erictyson.com/articles/20111017

Wed, 12/14/2011 - 11:11 | 1978579 Freddie
Freddie's picture

Roubini is a douche.

Wed, 12/14/2011 - 11:17 | 1978612 clymer
clymer's picture

He thinks he might be able to take Soros's place when he croaks

Wed, 12/14/2011 - 11:44 | 1978804 bigdumbnugly
bigdumbnugly's picture

well then he's misguided again because i've heard that all spawn of satan were immortal.

Wed, 12/14/2011 - 11:18 | 1978620 Spooky Polish
Spooky Polish's picture

Polish Tit asks of Roubini - where's 140 iq You've lost 

Wed, 12/14/2011 - 11:16 | 1978604 He_Who Carried ...
He_Who Carried The Sun's picture

Keep on trumpin' so Roubini can sell into strength...

Wed, 12/14/2011 - 11:18 | 1978623 Socrate
Socrate's picture

It is time to start getting long on phisical, bitchez!

Wed, 12/14/2011 - 11:30 | 1978712 Hmm...
Hmm...'s picture

is it really?

I personally am not sure when it is the right time to buy physical gold/silver again.

Many large financial investors are clearly levered, and invested in gold.  What percentage of investors are levered financial players???  I dunno... but they clearly affect the price... Otherwise Mr. Margin would not be having such an affect on the gold price.

and altough physical and paper price are not identical, they are nearly 1:1 correlated for now.  At some point in the future that will change... but now it is nearly 1:1.

It may be prudent to wait until we are closer to true collapse to buy, wait until the levered financial players are REALLY in crisis... but when is that time?  Hogs get slaughtered ya know.  and I guarantee that my hand will shake like crazy when it is time to push the buy button...  not sure if I'll be able to do it...  (and maybe that time is now at $1600... who knows).

I've bought substantial amounts of Gold this year at near peaks and so I'm licking my wounds.  My goal is to maybe get a little bit more in the future... but it's hard to tell the difference between gold and equity investing these days... and I left equity investing in 2009 after I made a killing shorting the damn markets due to the unpredictability.

Wed, 12/14/2011 - 11:44 | 1978797 Free Markets
Free Markets's picture

I have said it a couple times already, but if you really want more PMs, don't wait for a bottom.  Buy now and hedge it with GLL or DGLD and drop the hedge at whatever price level you feel comfortable with.

Wed, 12/14/2011 - 12:41 | 1979086 NidStyles
NidStyles's picture

You should be buying already. DCA the whole way. Buying at the last moment will lead to more likely getting slaughtered and never seeing your physical. In other words you should be buying physical.

Wed, 12/14/2011 - 11:46 | 1978735 SheepDog-One
SheepDog-One's picture

Roubini ya punk! Twittering like a little bitch wow I'd think you'd be more above 'internet trololol' level of guys in their moms basements. 

I know you'll read this too, you little butt snorkeler.

Wed, 12/14/2011 - 11:47 | 1978818 The Deleuzian
The Deleuzian's picture

SheepDog!  The new Economic Thesaurus

Wed, 12/14/2011 - 11:52 | 1978838 fuu
fuu's picture

Roubini sounds like RNR/LFP/etc.

Wed, 12/14/2011 - 11:40 | 1978773 Miss America
Miss America's picture

Roubini Bashing has really become a blogging pastime...   but any of you who think he's a moron are really ignorant.  Him and his RGE were one of the main birthplaces of the huge economic awakening that has occurred!!!

For the few hundred people that were on his blog in 2005- 2008, not only did you get a free education, but you were witness to this social awakening that created site just like this one!!!!!

...and his DOW calls back then fell on the same deaf ears and drew ire form the real "paper/DOW bugs" back then.

I wrote freelance for the RGE but have since split from it, and share major differences in opinion from Nouriel, but to mock him economically is shortsighted.

I have a mixed view on gold and have written about it many times.  In true collapse, it is worthless, because it's exchange will be for a collapsed paper.  To think that you will be handing gold shavings to a hot dog vendor to buy something is ludicrous! 

As a hedge, currency vs currency, country vs country, it has value.  ...but this is a manipulated industry and gold is subject to said manipulations. 

Like in 2005, I took a look at so many charts, and studied my ass off.  I can remember what the 30 year chart for the DOW looked like.  In particular, look at 1975 to 2000. 

...now look at gold from 1975 - 2011.

In hindsight, bubbles are obvious.

All the best, RH/MA

Wed, 12/14/2011 - 11:49 | 1978823 Pladizow
Pladizow's picture

Do some more research beauty contestant!

Wed, 12/14/2011 - 12:08 | 1978924 Miss America
Miss America's picture

no.  No more research needed.  I don't play with "investments" of any kind. 

If you value gold in relation to EUR, GBP, USD, etc...   when it's finally time for you to accru all that wealth you've gained from gold's value, what are you going to cash it in for???  

Paper?  binanry code? 

It's not exchangable for goods!  You can not have a barter system for 7 billion people with a rare comodity!!!!!!!!!!!!!!!!!!  You will not exchange it for a hot dog when you are hungry some day.

As an actual hard asset, you can't eat it. and it is a sub-par conductor of electricity, so what's its real street value?

What's the end game here?  In collapse it's worthless.  ...because you'll exchange it for a worthless paper/binary currency. 

all the best, Rich

Wed, 12/14/2011 - 12:42 | 1979084 NotApplicable
NotApplicable's picture

Why do set up such a ridiculous straw-man argument?

Gold is for storing wealth over time, to be exchanged for large scale purchases or to be liquidated into another medium as needed for smaller purchases (like say, hot dogs). This other medium can be silver/copper or whatever else has been found locally to provide the best utility as an intermediate good.

Wed, 12/14/2011 - 13:32 | 1979293 Miss America
Miss America's picture

...and why is it that the new medium is accepting gold in exchange for the "silver/copper" or whatever???   Why gold.  Who chose gold as the:   When everything collapses, and we restart, all of the new xxxx will be exchanged for GOLD!   (yahoo gold, congrats on coming out on top.)

I'd think guns, ammo, shelter, food, community, would all be far more important.

Me thinks, you need to revisit the gold apoclypse theory?

Or don't.  Good luck.  Serioslly.  I don't wish bad on you.  I just am trying to give you another view.  Did I help?  maybe/maybe not. 

My bet, is 2 years from now, whether the economy collapses or not, you will be exchanging that gold for either the same fiat CCY, or for a similar value on the new CCY (after collapse). 

I just don't see the madmax future, where people that bought gold bars will live in castles.  No.  TPTB will still have their power, as they will restructure (in a collapse) things to still favor themselves.

all the best, RH/MA

 

Wed, 12/14/2011 - 14:38 | 1979649 blunderdog
blunderdog's picture

Why gold.  Who chose gold as the:   When everything collapses, and we restart, all of the new xxxx will be exchanged for GOLD!

Historically, it seems like the bankers made that decision.  Although gold's been valued in every human culture studied that's been able to work metal.

I guess the answer to your question is: "the human species."

But maybe this time is different and gold will just be litter in the future.

Wed, 12/14/2011 - 16:36 | 1980241 Edelweiss
Edelweiss's picture

  In my opinion, anyone looking at their long term prospects for survival (financial, etc.) would be wise to look at these situations from as many vantage points as possible.  Like many others here, I do have gold, guns,stored food, and cash in quantities that let me sleep more soundly.  I also have a substantial amount (some are snickering no doubt) in a retirement account through my employer.  If my roof leaks, or my truck needs repaired, I take care of it, instead of paying hundreds (or thousands) in labor for someone else to do it. Making sure you have relevant, and desireable skills is critical.  To me survival is about being prepared for as many scenarios as possible.  As "miss" said above, TPTB will likely change the rules to suit their interests when the need arises. 

Wed, 12/14/2011 - 12:42 | 1979092 RichardENixon
RichardENixon's picture

After the currencies we now use collapse, those of us with phyiscal gold will be able to exchange it for the new currency, which will be pegged in some way to the price of gold such that it will purchase about what an ounce of gold will purchase today. It's not really that complicated, even for a beauty contest winner like yourself.

Wed, 12/14/2011 - 13:23 | 1979259 Miss America
Miss America's picture

Oh...   If that's the case, then everyone should buy gold.  I'm glad you figured it out. 

I'm sure the new economy wouldn't be pegged to something else, (like energy) especially since every gold system has collapsed too. 

...and the "miss" in "miss america" means a different "miss". 

 

Wed, 12/14/2011 - 12:44 | 1979105 NidStyles
NidStyles's picture

In a collapse your life is worthless as well, because all you have is silly paper backed by nothing. Gold is for long term after a collapse. It's called being prepared.

Wed, 12/14/2011 - 12:54 | 1979143 Temporalist
Temporalist's picture

Are you sure you're not Miss Teen USA because you babble like she does:

http://www.youtube.com/watch?v=lj3iNxZ8Dww

Wed, 12/14/2011 - 14:09 | 1979485 JOYFUL
JOYFUL's picture

hey Miss Porcine lip gloss!

 Since you are NR's designated first(&prolly last) line of defence here, I'll leave you with this....

 

In Anadalu, where Roubini comes from, AU is up 30 percent over 6 months, and 48 percent yoy at the moment I write. Please ask your pissant mentor where to look for an equity or stock play up half as much on the Istanbul exchange for the same time period.

The Great Roudini - he left the East at the exact peak of the bubble economy of the West...and made his play for glory in a declining market. Is he still trying to flog his business?  I fear it's value may be subject to the same forces of market attrition as gold!....let's see him escape from that bubble!

No more research you say?  Pity. About 6 billion of those 7 live outside the EuroMerika Bubblezone.  Harshness of life outside of the cheap Chinese import syndrome has acclimatized them to making things work outside of credit card zombie world.

The Ataturk gold coin is the biggest selling gold issue in the world. Period.  When the time comes, it will be traded for everything from sheep to computers...."As an actual hard asset, you can't eat it. and it is a sub-par conductor of electricity, so what's its real street value?" Your knowledge base has ZERO  street value outside of your BUBBLE VISION. You will be among the first to go down. Along with Chumly.

Wed, 12/14/2011 - 15:50 | 1980008 akak
akak's picture

You will be among the first to go down. Along with Chumly.

ZING!

+1!

Wed, 12/14/2011 - 15:51 | 1980016 Miss America
Miss America's picture

So says you.  (I never worked for Roubini.  Thus "FREELANCE".  I hung out in that sandbox because like minded people who saw this tragedy coming were gathered there.  ...and we were preparing!!!  ...and I lurk instead of writing anymore becaus ethe system is a joke.  Why waste my time.)

Intellectually, I'm comfy with any outcome, as I adjust well. 

My survivor skills play out well on those "into the wild" trips I've taken.

My ex-pro athlete background (that I still maintain) typically put me ahead of the curve there.

I say, reset!!!  Bring it on.  I've got a good track record of being right, winning and backing it up both metally and physically.

All the best, RH/MA

 

Wed, 12/14/2011 - 15:59 | 1980060 Matt
Matt's picture

Are you familiar at all with Zimbabwe, where people had to go dig for bits of gold and tiny diamonds so they could buy food? Please provide an example of a hyperinflationary collapse, or even a deflationary one, in which people did not accept gold as a medium of exchange.

Wed, 12/14/2011 - 17:11 | 1980450 Papasmurf
Papasmurf's picture

If you value gold in relation to EUR, GBP, USD, etc...   when it's finally time for you to accru all that wealth you've gained from gold's value, what are you going to cash it in for??? 

 

Food, water, fuel. things that will be scarce.

Thu, 12/15/2011 - 03:50 | 1982372 StychoKiller
StychoKiller's picture

and it is a sub-par conductor of electricity,

Compared to what?  Only Ag is a better conductor.  Yer talkin' thru yer hat.

Wed, 12/14/2011 - 11:52 | 1978837 Free Markets
Free Markets's picture

I do think it possible to hand a gold shaving over for a hotdog.  There will be powerful people that have what you want.  How do you expect to get the hotdog?  What will you barter?  Some form of currency will be created such as grain or livestock or PMs.  The difference between the three is the first two will go bad so you dont want to preserv your wealth long term in those items.  The third, PMs, will no got bad thus preserving wealth.  The same goes for diamonds, one of a kind paintings, etc.  Uh and no I dont think hotdog vendors will be all that powerfull. lol

Wed, 12/14/2011 - 11:57 | 1978854 B9K9
B9K9's picture

What very few seem to realize is that no one is getting through the bottleneck with their current net worth/asset base intact. It doesn't matter if it's equities, FI, PM, land and/or cash - there is no escape from the reset.

The emotional responses you see on this thread are from people who were dreaming that they would emerge in a new reality as the MOTU. Trav and others have been on their case - with limited defense/mobility, roving gangs of ex-mil & police will relieve them of their precious holdings in short order.

Think it through - the only way forward is via localized economies aka small, sustainable communities. Yet, if you purchase land today @ inflated prices, it too will suffer during the reset. So you have to let that go - the key is not the value of the land, but the value of the community. No one can go without sleep - at some point, someone you trust is going to have to stand guard.

Many readers know I reference history - clans & tribes represent the oldest and most enduring forms of communal organization. The way forward is to understand & replicate the past.

Wed, 12/14/2011 - 12:03 | 1978900 Free Markets
Free Markets's picture

I fully agree with the community concept, but you must have something to trade. The full community concept where everybody has a task in their community economy and live for one another is a dream.  The person who owns that land will, in short order, try to collect more.  You assume greed will be forgotten.

Wed, 12/14/2011 - 14:35 | 1979635 JR
JR's picture

No one ever promised us a rose garden.

Wed, 12/14/2011 - 12:09 | 1978932 CrockettAlmanac.com
CrockettAlmanac.com's picture

Rather than "replicating" the paleolithic era can't we just relive last Thursday instead?

Wed, 12/14/2011 - 12:20 | 1978994 Miss America
Miss America's picture

Well said b9k9.  Unfortunately, I agree.  ...and those who don't (in my opinion) are holding on desperately to what they know.  The material possesion or dream of wealth, or wealth retention is hard to let go of.

At some point there will be a unfolding.  ...and the reset, that I have also called for for quite some time now will be born from a 200 year working history of the current model.  (I am hopeful we'll take modern history as our educator rather than ancient history)

With that said, when the reset occurs, hopefully "they" will put in place better rules that will control excess. 

Sustainabilty is they key.  Moderation should be a standard. 

all the best, RH

 

Wed, 12/14/2011 - 12:47 | 1979117 NidStyles
NidStyles's picture

The current model is not 200 years old, nor is it working. It's been tried how many times now? When will you people understand that it doesn't work?

Wed, 12/14/2011 - 14:32 | 1979617 JR
JR's picture

You are absolutely right, B9K9. I always appreciate your insight.

People with shared goals banded together is where the strength of the future lies. And our enemies would ever seek to divide - and destroy individually. This is why Stalin never allowed his party leaders to meet together without him.  United, we will stand on our terms; divided, we fall on their terms.

First, they came for the small businessmen and the manufacturing base in the 80s. Then they came for the dotcoms in 2000. Then they came for the homeowners’ equity in 2006 and investors unaware in 2008. Then they came for the savers through ZIRP and inflation. Now they are devaluing wage earnings, pensions and insurance proceeds… Does anyone think in the end he can escape? Only a fool would cheer the downfall of another group, believing its downfall will profit him and he will be spared. Better he join with them and fight - for his good and theirs.

Wed, 12/14/2011 - 14:05 | 1979467 JR
JR's picture

Good to hear from you, Rich; I was always one of your big fans, as well as Roubini’s. It’s absolutely true that Roubini was a major part of the awakening to dangerous financial trends - an awakening that continues to this day.

Obviously, his connections with Summers and other political insiders and his support for stimulus programs led to a mistrust of his purposes, that I shared. But this did not happen until the end, just before he (or was it TPTBs?) decided to end his open forum.

But, make no mistake; MA, is absolutely correct regarding Roubini’s expertise and the service that he provided in the predictions for the coming recession - predictions at that time which required a great deal of courage in the face of constant criticism.

BTW, MA, I have often wondered where many of the “regulars” on the Roubini forum are now blogging such as yourself, Bernard, Dave Chiang, Pete CA and PeterJB (although most were written by “Guest” which allows the greatest freedom of expression, IMO). I have since found London Banker. If you have any knowledge of them, I would appreciate a note here.

Wed, 12/14/2011 - 17:02 | 1980400 Miss America
Miss America's picture

Hello JR.

LB and I stay in touch via email.  The others, I see here and there on a website or 2.  Once every 6 months or so, I check the RGE.  (or re-read some of my old articles.  I swear when re-reading them, they could pass for current events, because so much of what we uncovered is just finally getting exposed.  ..or is the same as it was then!)  

I guess that means you found LB's website.  I check in over there time and again, as do some regulars.

Your Roubini end, was around my end.  Wasn't a big fan of the "connections" he had, and I thought his theories were getting too "swayed" with his circles he was keeping.  (but it still doesn't belittle his genius!  NOBODY fleshed it out like he did, especially with the blinders that the world was wearing at the time.)

"outerbeltway" (aka TomPfotzer) and I me with him to try and work on something that would help the general public...  but by that time Roubini was big time and jumping the shark.  (That plus he started hiring/expansion binge, and I didn't even get a call.  His calls were prophetic.  I put #s behind my calls and made or saved lots of people a ton of money.  The timing and accuracy of my calls were dangerously close to 95%!!!)  ...when I visisted him, his assitant told me that my foot traffic on his website had grown to a third of his.)

I actually started reading some of his stuff again, because I think he might be righting his ship...  but we will see.

Take care.  RH/MA

Thu, 12/15/2011 - 19:33 | 1985445 JR
JR's picture

Greetings, Rich. I’m sorry I missed your reply. I checked in a few times, missed, and thought I would give one more try today. And voila! Hope you see mine...

I agree that Roubini bears watching at the moment because many things he said were noteworthy and prescient, prophetic as you say, regarding this deepening crisis. I hope you share your expertise (it was spot on) here as much as you can – even if it’s contrary to some of the hardcore opinion. All the truth needs to be revealed; not just the wannabe truth, if we’re to survive this financially and politically intact.

I sure miss the good ‘ol Roubini days and your posts  Those were the days…and they did leave a mighty big imprint on the financial scene. Surely, even Roubini has some stirrings of nostalgia – he was making it big partly because of the draw of that blog – worldwide.

Happy Holidays, Rich, to you and your young family…for Auld Lang Syne…

J.R.

Fri, 12/16/2011 - 11:41 | 1986872 Miss America
Miss America's picture

Thanks JR.

Got the reply.  Best to you and yours too.

As far as writing, I'm pretty much done.  (other then a comment here or there) Running a bank operations desk always gave me a unique perspective.  (and a huge peek behind the curtain)

...but Nowadays you have to be careful about what you write.  So much attention is being paid, and I've had "organizations" contact me (since I wasn't anonymous) which could've threatened my livlihood.

Anyhow, with all the "noise" out there, and so many paying attention, if i stayed "middle of the road" with my comments, my voice would be drowned out these days.  ...and if I went controversial, it could hurt me.  ...so what to do?

As far as market calls go, since I've never owned a single stock/Bond/commodity/etc...  (which is why I've always stayed impartial)  I don't bother with doing the same level of research anymore.  I used to get a kick out of trying to help others that "invested", but it was so frustrating when I'd get 95% right, and people would lambaste you on the 5% (which were never large issues) that I got wrong.  To boot, my advice was free and they weren't giving me anything on the money they made.

So these days, why do that kind of work for these strangers that junk you? 

Zero hedge is good.  but it's not the fun playground that the RGE was.  ...and the circle of folks we had at the RGE were freaking amazing!!!  There were some high end economists, professionals, jo6packs, etc...  It was an amazing thinktank.

Good luck to you.  My silly analysis these days targets the middle of January being a peak rough point.  "I had a dream" about it.  (ha, couldn't help the MLK/irony) 

All the best, RH/MA

Wed, 12/14/2011 - 11:45 | 1978811 hunglow
hunglow's picture

This is getting fun!  Jim S. is my hero.  Ron P. too.

Wed, 12/14/2011 - 11:52 | 1978839 WhiteNight123129
WhiteNight123129's picture

Well if the Gold goes ballistic he is without a job for sure.... So that is why he is intolerant. Like we say back in my country "let him piss against the wind"...

Wed, 12/14/2011 - 11:55 | 1978852 WhiteNight123129
WhiteNight123129's picture

I just pray Roubini has a buy and hold on 30 years treasuries... Mwahahaha !!!

Wed, 12/14/2011 - 13:13 | 1979225 Rodolfito
Rodolfito's picture

Roubini is a globalist shill, who does his little bit for the Rothschild cabal in return for his 'impressive job' at NYU.

Wed, 12/14/2011 - 14:23 | 1979568 SparkyTheWonderDog
SparkyTheWonderDog's picture

+1

Wed, 12/14/2011 - 11:02 | 1978507 Captain Kink
Captain Kink's picture

Neg real rates...etc. etc. etc.

Wed, 12/14/2011 - 11:38 | 1978766 Captain Kink
Captain Kink's picture

I don't see this move as a big deal at all.  The bull market is in tact, and nothing goes straight up.  I have owned the paper gold for clients since $350 and sold when it broke down through 900 during the financial crisis, buying back in the 800's on the way back up.  Now we are out of it again (1680-1700), and I suspect that it can go much lower. I don't worry, as this is merely a source of liquidity trade and profit taking against losses elsewhere in the books of managers.  Do not fear this move, use it to get more on the cheap.  That price will not be known until it has put in a bottom and is on the way back up.  And I don't think twice about the physical that I used to have before that ill-fated canoe trip.

Wed, 12/14/2011 - 12:48 | 1979122 Mikehy
Mikehy's picture

heh. damn canoes +1

Wed, 12/14/2011 - 11:02 | 1978508 GiantVampireSqu...
GiantVampireSquid vs OWS UFC 2012's picture

BTFD Bitchez!

Wed, 12/14/2011 - 11:03 | 1978510 Tsunami Wave
Tsunami Wave's picture

Where is dow 4,000 Nouriel? You said that too.

Wed, 12/14/2011 - 11:16 | 1978605 Boston
Boston's picture

On its way. He was just a couple of years early.

Wed, 12/14/2011 - 11:49 | 1978825 Dr. Richard Head
Dr. Richard Head's picture

Might be where Gold and DOW meet?  What the fuck do I know.  I linke fingering my gold and silver as much as I my wife.  In fact, I finger the silver after my wife - antibacterial and all.  HEY OHHHHHH!!!!!

Wed, 12/14/2011 - 11:56 | 1978862 WhiteNight123129
WhiteNight123129's picture

He might be right on that...!!

 

Wed, 12/14/2011 - 11:03 | 1978512 The Deleuzian
The Deleuzian's picture

I was in diapers but didn't gold get chopped from $200 to $100 in the early 70's!!  Wait it out and keep the powder dry!!!

Wed, 12/14/2011 - 11:11 | 1978575 machineh
machineh's picture

You're right; it did.

But theoretically, gold's long-term real rate of return is zero (i.e., about the same as T-bills, preserving purchasing power but no more than that).

From a least-squares fit to the past 40 years of gold prices, one could infer that gold currently is above its long-term trend.

Just sayin'...

Wed, 12/14/2011 - 11:16 | 1978597 Caviar Emptor
Caviar Emptor's picture

Yes because now there's not just inflation to eat away at purchasing power. There's Biflation. Gold is the only true hedge against both forces. SO there's a new trendline 

Wed, 12/14/2011 - 12:13 | 1978965 CrockettAlmanac.com
CrockettAlmanac.com's picture

Don't forget gayflation, lesflation and transmutation. Don't want anyone to feel left out.

Wed, 12/14/2011 - 11:16 | 1978600 The Deleuzian
The Deleuzian's picture

Sure...it's all about timing...However...after a good whack on the metals, they should soar...No evidence of a blowoff...I'd say about the sixth inning in baseball analogy...We haven't seen the fireworks yet!!  It will end in a mania like all asset classes...Gold is up what 12 years in a row?  We need a breather and after that...Look out!!!

Wed, 12/14/2011 - 11:33 | 1978729 Strut
Strut's picture

During the 2008 collapse gold shed ~30% and silver more than 50%. Although you were hard pressed to find physical to purchase anywhere near the spot price at that time. I expect a significant drop during this deflationary time too.  It will be a great buying opportunity - if you can find it...

Wed, 12/14/2011 - 11:49 | 1978788 The Deleuzian
The Deleuzian's picture

Oh Yea!!  The Fed's going to let the tide out and ruin all the leveraged players in the metals...When that ends...I expect a 'market making moment' or 'QEism' where everything just goes bananas!  The PM's will once again benefit the most...

By the way...Love your Avatar!

Thu, 12/15/2011 - 03:57 | 1982381 StychoKiller
StychoKiller's picture

Gad, will you just chomp that thing already?!

Wed, 12/14/2011 - 11:03 | 1978513 bankonthebust
bankonthebust's picture

Metals on sale! Stock up now!

Wed, 12/14/2011 - 11:10 | 1978568 solgundy
solgundy's picture

Roubini is stocking up with MD 20-20

Wed, 12/14/2011 - 11:13 | 1978583 machineh
machineh's picture

April 2000: 'Tech-Media-Telecom stocks on sale! STOCK UP NOW!'

How did that work out for ya?

Wed, 12/14/2011 - 11:03 | 1978515 SWRichmond
SWRichmond's picture

SWRichmond asks of Roubini "Where is the recovery?  Where is the money the banks stole?  Where is the sovereign bailout for EU?  Where is the U.S. balanced budget?

What a moron.

Thu, 12/15/2011 - 04:00 | 1982382 StychoKiller
StychoKiller's picture

Why are the Banksters NOT in jail?  Where are REAL Federal Govt spending cuts?  Where is a credible Republicon candidate?  (Well, some of us know the answer to that one!)

Wed, 12/14/2011 - 11:03 | 1978516 GeneMarchbanks
GeneMarchbanks's picture

'Roubini has been fairly good at calling world economic events in recent months, however his investment ‘advice’ has been poor and he appears to not understand ‘investments 101’ which is diversification. '

The man is dangerously stupid.

Wed, 12/14/2011 - 15:23 | 1979840 Bay of Pigs
Bay of Pigs's picture

Dangerously stupid indeed. Just like some of the other trolls that pollute this board.

Same message, different names.

William the Bastard you out there? What's your new handle?

Wed, 12/14/2011 - 11:03 | 1978519 Kyron95131
Kyron95131's picture

id like to slap this guys' 5 fathers

Wed, 12/14/2011 - 11:04 | 1978520 kalasend
kalasend's picture

Fuck Goldbugs

Now, give me the highest thumb downs ever. Trolling is fun

Wed, 12/14/2011 - 11:11 | 1978576 onebir
onebir's picture

Nice strategy for getting thumbs ups!

Wed, 12/14/2011 - 11:13 | 1978587 Tortuga
Tortuga's picture

I've no interest in having sex with a goldbug, but your sentiment is correct. The goldbugs/speculators buying on margin are the 2nd on the scene to sell to meet margins (after the banksters) and the 2nd on the scene (after the banksters) to buy, all in the hope of making a quick buck. I on the other hand have a long term investment in physical and USA miners that I am holding for insurance against when the trillions dollar house of cards falls and I want to trade for a box of diapers for my grandkids and some toilet paper for the family. These are exciting times we live in. GBA and RICO all banksters, their whores in DC and impeach the top 400 of the current DOJ.

Wed, 12/14/2011 - 11:28 | 1978697 Kaiser Sousa
Kaiser Sousa's picture

jealousy and envy are the paths to the "brokeside"...

dont hate

emulate...

that is if u aint broke already..........

Wed, 12/14/2011 - 11:04 | 1978522 lakecity55
lakecity55's picture

Anybody have any ideas on silver? It's also at a dip.

Thanks.

LC55

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