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So, Wait, Gold Is NOT Outperforming Stocks By 23% YTD?
Listening to all the mouth foaming commentary out of assorted TV channels and economics professors which have apparently suddenly woken up from their deep hibernation regarding the imminent death of the gold market, one could be left with the impression that gold was wiped out, collapsed, imploded and will never rise again. After all: what does it really bring to the table aside from complete lack of monetary dilutability and a safe haven to hundreds of trillions in derivative counterparty risk (in its physical form that is, as Celente recently found out), not to mention a hedge to human idiocy as Kyle Bass said a few days ago? Well nothing really... So we were shocked, shocked, when we ran a simple chart comparing the performance of gold and the S&P Year to Date to discover that outperforming by a margin of about 23% is... gold? Huh. But wait, the real safe haven are bonds many would say. After all, the US has no counterparty risk and it has prudent fiscal and monetary authorities. So how do they compare? Well, as of today: flat, with gold actually outperforming modestly. That's right - gold and the US long bond, even following the recent "drubbing" in gold have generated the same price return. So... what were we talking about again?
Gold vs ES:
and Gold vs the Long Bond:
Source: BBG
»
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Options expiry is tomorrow... all you need to know. BTFD
my bullion dealers know he same thing... they didn't lower their prices today. And I was hoping for some discount shopping.
I can't really blame them.
The PM's are screwed - the "Super DuuuuuPER Committee" will fix everything!
I think they've done enough fixing!
-John
http://www.johnu78.com
GetZee buys the FD. Doesn't know anyone at MF Global.
Boom......WINNING!
Ditto!
Silver is cheap! Though the Northwest Territorial Mint tells me it'll be 8-10 weeks before they can actually get me any, and have no Maples in stock.
I am surprised that WB7 hasn't taken license with the Might Heroes opening theme:
http://www.youtube.com/watch?v=72rYHuWidSM
To place "certain" other personages as "Cry Baby Man"
"Printing Press Man"
"MAD Man"
Etc.
Something about Super Duper Committee just made that fall out in my mind.
You mean the super commitee where John Kerry is the senior stateman for the Democrats, who was on Bloomberg this morning saying the republicans are traitors/ronin to the USA because they hold an oath to Lord Grover Norquist instead of their oath the US constitution? The same dude who is a billionaire but pays a 12% tax rate ("the bernake" - "the Kerry" status is legit on wikipedia. at the time of this posting) http://en.wikipedia.org/wiki/Teresa_Heinz
Equal opportunity, the pubs specifically wanted this super commitee to keep the president out of the mix since he failed in the "grand compromise" and now they are claiming the super committee failed because there was no presidential leadership.
From this drama, I am trying to figure out what is a barbaric relic and what is not. I cant afford gold, but I hope if TSHTF I know enough zh dialect to work an honest days work for an honest days pay to the smart people who have the physical and food they'll be able to procure with it.
"Panel set to fail to cut deficit $1.2 trillion"
That's the headline on Yahoo today. Now that has to be bullish eh. I mean, it's $1.2 trilion they're cutting. Or failing to cut. Or something.
What the fuck? They also failed to cut $50. Or $500 trillion. Or whatever number you bloody like. I feel like I'm going mad.
The Onionization of America.
Once the super committee contains zero congresscritters agreement will be reached on a deficit reduction plan. Members of the 'New' super committee will remain anonymous but will be appointed by Goldman Sucks partners.
Implementation of the New Deficit Reduction Plan will take effect beginning in the year 2075...When a gallon of gas costs $5,000.
Go long wheelbarrows and PMs...and, pitchforks.
LOL, super duper committee failure announced after the close. Against my better judgement, I went back into PHYS at the close (glutton for punishment).
Miners got hammered. I´ve bought some GORO at $ 18.1 today. These kind of days are perfect to buy some juniors.
Well Cramer is #1 followed by Bob Pisani then LIESMAN.....these guys have no problem taking your money each and every fuckin day.
AP POLL TOP 3 BULLSHIT ARTISTS
Cramer
Pisani
Liesman
Cramer is by far the worst!!!
-John
http://www.johnu78.com
The juniors are so damn volatile I'd only lose sleep over it, but I'm ready to pick up some ABX should it drop a few dollars more. Currently trading at less than 10x P/E going by their last quarter earnings.
I've been patiently holding my shorts for over a month- through all the risk on/risk off bullshit. Hopefully this is the beginning of the dip I've been waiting for.
Peter Bookvar on Closing Bell, CNBS, 11/21/11. From the 2.20 mark:
“Gold is going much higher. Let’s compare Gold and the S&P500. The S&P500 priced in gold is at its March 2009 lows of 666. So Gold has performed better than the S&P500. I expect that to be the case for the next few years, going forward.”
http://video.cnbc.com/gallery/?video=3000058450
Peter may have ended his gig on BS Central with that bit of truthiness.
The whole point is to confuse the sheeple. Risk on, risk off. I don't really care. Owning the phyzz is the only way to navigate this shit storm.
I fucking hate being a sheep. At least I'll be able to make some colloidal silver with my stash and ride out the shitefuck of a storm coming that these wanker bankers created.
Wait a second. Come on. Indisputable facts and common sense have no place on CNBS.
That gold is up 23% vs the S&P doesn't fit the narrative.
Turd, we are grateful for the shelter your hat offers us in these trying times!
who among their advertisers and command and control would introduce that topic? :) /in the punchbowl/
+1685
Did some PM trades today myself:
http://richcash8tradeblog.blogspot.com/
I love P M dip days ,,, Its kinda like a snow day .. stay in watch the prices fall .. then play in it !
I've followed these guys on Twitter for couple of months now (http://spadacapital.com) and they are up 34% YTD. I can't figure out for sure what they are trading, but it seems they do commodities options, both short and long. They also mentioned expire of gold options tomorrow as a cause for recent volatility.
Gold is going to be in a world of hurt until there is a real sense that the printing presses are going to be turned on. Silver could be seeing sub $25 early next year or sooner. The question then becomes will the US political stalemate keep the Bernak from buying new print cartridges until after the election? Then if a repub wins will they trash the presses?
Oh I have been long gold and silver a really long time, but I think the next few months could be tough.
By the way I had my acct frozen at MF. F@#K Corzine!!
Uhhh... surfersd... If I had my money in MF Global and it was frozen I would be reluctant to offer investment advice, speculation on price moves, speculation on possible Fed moves, speculation on political events, or predictions of tomorrows weather.
options expiry is almost a quarantee to get some BTFD gold and silver.
I would love to see silver get over $50 by the end of this month!
-John
http://johnu78.blogspot.com/2011/11/how-to-get-started-in-amateur-radio.html
Sprott plans to issue more PSLV shares. Fasten your seatbelts!
http://www.pmbug.com/forum/f3/sprott-set-start-new-pslv-like-silver-fund-218/
id like it to go to 20 so i can stock up more.
Robot trader promised that several months ago......still waiting
I'd rather see it hit zero so I can acheive my medium term goal of buying ALL the silver. Physical only, of course.
tradition bitchez
Gold and silver are massively overvalued, by all the fractional paper trades, which drives up their prices.
You mean, just like the equity markets that are all down for the year, while gold and silver are up?
you know... if you say it once or twice, we read you. No need to say it over and over again.
He thinks if he says it enough times it will come true. I remember Math Man doing the same until he gave up and disappeared.
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
"Only $5 to dig from the ground ...."
(A phrase which shall live in infamy!)
akak... If he were still around would it be "Only $6 to dig from the ground...." due to inflation?
Great insight.
Great time for you to sell all you have.....before it's too late......
"Gold and silver are massively overvalued, by all the fractional paper trades, which drives up their prices."
If that was the case, physical gold/silver would be sold at a discount, not a premium.
Dude, the paper game drives spot price down, not up... If these fraud ETF's did not exist PM would be significantly higher...
buy the 200 day MA, ~1600
and Zeros (ZROZ) to hedge the liquidation trade that we get if the SnP collapses
Well one could do the Warren Buffett and buy Bank of America which is only down 5% today.
What without taking a bath first? That's just crazy talk.
Paging Dick Bove... Paging Dick Bove...
Dick Bove?
Dick Handler may need a new job soon.
And or buy AMR and wait for the announcement while over DC.......ladies and gentlemen we have run out of fuel and will be a few hours late. AMR goin breastuses up ???.........like everything else BK.
What on earth was Bloomberg streaming along the bottom earlier today? "Citi sees gold at $1750 in 2013" ????? This is report worthy?
That is so strange because I recently issued a report where Citi is bidless by 2013.
Weird.
look at a chart of the dow and spx priced in gold for the last 10 years. you'll die laughing
or die crying
Comay, can you tell me how to price spx in terms of gold on Stockcharts.com? TIA
just download spx historical daily prices and gold historical daily prices, put them into a spreadsheet and graph spx/gold. you'll see that there never was a rebound in stocks after the dotcom bust or the 2008 crisis. almost the whole damn graph has a negative slope
scattergun... simpler yet, go to this site and long term dow/gold ratio already calculated and charted... First link is to dow/gold long term ratio, second is to home page of site.
http://home.earthlink.net/~intelligentbear/com-dow-au.htm
http://home.earthlink.net/~intelligentbear/
Should not be a shock. After a deflation scare everyone knows that gold goes hypersonic because the Bernank will wet himself at the thought of being compared to Arthur Burns.
Every ounce you buy is a vote of no confidence for the dipshits in the federal government. Only the lost and the blind believe in the dollar anymore.
indeed. That's why I loaded up so many years ago, the faces changed but the same game is being played.
I heard it's a barbers relic!?!
They say you can't eat it....but...I like mine over corn flakes. That is what I use it for, honest.
The Japanese put gold flakes in beer. Srsly.
We do that with Danziger Goldwasser..
Knew I should have taken the sweepings off the floor.
No it's what barterer's relish.
Barbara's relic:
In the 12th century, the relics of Saint Barbara were brought from Constantinople to the St. Michael's Golden-Domed Monastery in Kiev, where they were kept until the 1930s, when they were transferred to St. Vladimir's Cathedral in the same city.
http://en.wikipedia.org/wiki/Saint_Barbara
US treasuries are the ultimate bubble. It is insanity for yields to be this low. Unfortunately, the insanity can prevail longer than my ability to stay short. Thus far, it is a standoff but I am optimistic that when vindication occurs, I will still be able to be short.
'40's, to 50's, rates stayed down here for a decade.
0% rates has never before occurred. If the Fed were to raise rates now, yields would rise and the US would go bust immediately because interest on the debt would be overwhelming.
ZIRP4EVA!
Short of war, it's the only game they've got.
IMF (or a new, TBD acronym) Consols will save the day.
In other words, the USG has maxed out all its credit cards and is boxed in a corner. This won't end well. Anyone who disagrees can only win the argument using fancy words and econospeak to obfuscate the truth. Any time a country gets its finances in a can't win situation, it can't win.
Argue deflation/inflation/stagflation until you are all blue in the face, it doesn't matter to the trade. This is a can't win situation for anyone without PMs.
I wanted to give you an "up" green arrow (or ten), but this damned site won't let me --- as it often does.
Use of italics at the beginning of a comment will do that.
There's a bug that prevents you from greening someone if they start their reply with a quotation. Something like that.
And just what was the debt-to-REAL-GDP ratio back then, and what was the REAL rate of inflation (currency depreciation) over the same period? Neither were even remotely comparable to today's figures.
Of course, I could be wrong... But you have a green, not from me though. I just tried!
Thanks anyway DoChen.
Yes, I am often thwarted in trying to give other posters arrows (usually green ones, in fact), for no apparent or consistent reason that I can fathom.
Tyler, please fix this glitch!
Hey akak,that happens lots to me also.
I just keep jabbing the up or down buutons with my cursor until i get it(the green or red arrow) to bounce a bit and THEN click on arrow.
This works.
Or If it won't take a geen when I want ,I could click the opposite of what I wanted to,then unclick it and click the one I want next,it seems to give me the count every time I do this.
And this works too.
post WWII was the only other time we had debt to gdp higher than now, 100% +/-, and Inflation (official) was also moderate (qofficially)
And post WWII the US was the only industrial economy untouched by the war, able to fund the reconstruction of Europe and Japan while producing goods for the whole world.
The US was able to pay down its debt BECAUSE it had a viable economic base able to PRODUCE goods of real value (instead of the current LasVegas casino where the only economic activity is wilds ass bets on paper).
No way to grow our way out of this mess.
I agree and you are preaching to the choir, but if we are trying to do anything, what we are trying is the pump-priming of ZIRP. My point is simply that ZIRP and QE will likely continue for a very long time, whether or not they work. Print, baby, print!
dupe
TPTB will make shorting US bonds Illegal....and gold too
we can hope, then they loose the market. It goes underground.
Not necessary. They could use the tax system to get what they want. For example, they could make investments in 401ks and IRAs that are not invested in US bonds taxable, thereby shepherding everyone into bonds.
Most of the gold held in private hands in this country is in the hands of the 1%. They don't want their gold confiscated or heavily taxed, so there won't be any confiscation, and if there is, it will be through a tax system which can be avoided with the right lawyers.
Gold and silver will remian under pressure as long as deflation fears are present. That being said, today the Dow finished back at its 2009 recession low today.... when measured in gold. I will sure take gold over stocks right now.
And here I always assumed that most adults eventually outgrow their childish fears of imaginary monsters lurking under their beds. My mistake, apparently.
rookie viewpoint...Why did Gold start moving when we entered the deflationary phase of the long cycle? because deflation ushers in the reactionary keynsian debasement of the currency to combat it...perhaps what you mean to say is that as long as real rates are negative, gold goes higher. negative real rates means we will pay you to borrow...we will give yo more fiat on top of the fiat you borrow, because money is worthless.
Thailand had great weather for a long time leading up to the tsunami.....
still have good ladyboys too.
How does one agree or disagree with that?
but but but "Wow, gold priced in ES isnt looking too good"
Seems to me, if you are a European banker and you dimly see the approaching demise of the Euro that you might stock up on gold. It will be there ready for re-conversion to the new marks, drachmas, lira, etc. Evdn in a deflation you get conversion and preservation of wealth. Opinions?
I am buying into the drop in gold stocks. I expect a rough ride. Good luck to you professional traders these days. I do not envy you.
All bankers are buying, all over the world, as much as they can get away with (and we know there are quotas, don't we?). Inasmuch as they already know what the end game is, I would say you've found your answer.
That's the odd thing, Smiddy. I've read how European bankers and individuals are buying record amounts of bullion, not to mention China and others and yet prices stay flat. Even if denominated in euro's or other currencies that indicates to me the price of gold should be swiftly moving up in any currency. Yet, we have this back and forth on prices.
My suspicion is that more gold has been sold than actually exists in futures, ETF's, paper contracts, etc. That would explain the current price-demand and supply-demand curves. It artificially inflates the amount of gold which better meets demand and keeps prices down, somewhat. If it actually had to be delivered I suspect there would be panic and jail time for some. Then we would have true price discovery, too.
Ignore the man behind the curtain. Gold is a barbarous relic.
Okay. I am a barbarian. Send it all to me.
24hgold/eBay widget now has Gold Eagles at a somewhat high premium of 8.9% over spot (paperr gold). The widget is imperfect, but is an indicator of availability of physical.
24hgold.com
The widget is down at the bottom of the Home Page.
Right now, the widget is the closest thing to a perfect pricing mechanism we've got, as the paper price is indicitive of nothing (just ask Celente).
8.9% is way too much isn't it? I just picked up an oz. today at $31 over spot ($1/gm)
I love all the gold haters, thats whats necessary for higher prices. Yes, a liquidity event like 2008 sends everything down but the response to it will send them absolutely parabolic so BTFD.
On another note, for those of you who invest in an IRA or for long term goals, theres a better approach than buy,hold,hope. Stocks follow the economy so analyzing the economy, specifically the factors that are "leading indicators" and having exposure to equities only when the economy is headed in the right direction and avoiding equities in favor of safe haven baskets is a much more logical approach. And missing the major drawdowns is the only way to help ensure meeting your goals. If you are interested in investing in a portfolio that tactically invests in equity and safe haven baskets via ETF's automatically, please email me at:
eclark@breakaway-partners.com
and I'll add you to the weekly market commentary & portfolio update distribution list. Its free to add you and you can follow along our model and our views. We have been RISK-OFF since 6/30 so have missed all this wicked volatility. Currently invested in short duration treasury baskets as flight to safety drives interest in our debt.
Gold and Silver are poison to central bank paper money. The entire global banking system is run on funny money. All they can do is manage perception and hope that people are as stupid as they think. If even 10% of the people withdraw their cash (if they can get it) from their banks and invest in physical Gold and Silver the game is up. Precious metals are a double edged sword.
James Turk: Gold 8000, Hyperinflation sure, Prohibition possible
Gold is in a 2nd stage of a bull market. We will see a more rapid price appreciation than in the past years. Price target untill 2015: 8000 Dollar. Price manipulation has come to an end. Gold as natural alternative to currencies. Chances of hyperinflation 100%. Gold prohibition possible.
http://www.mmnews.de/index.php/english-news/6779-james-turk-gold-8000-hyperinflation-sure-prohibition-possible
"Price manipulation has come to an end."
lolololololololololololol
I think discussing the metals values seems to rise to a fever pitch after they bash it down. This is analogous to holding a beauty contest after setting the prettiest girl's hair on fire and pushing her face into a meat grinder.
I'm not terribly worried about this raid, the silver and gold phyzz is now in the iron grip of maniacs like me. Let them rage and moan, I'm holding until the end.
Im sorry if a 15% yoy gain (not yet mind you) does not turn me on.
Awww, does da big guy want more money for nothin'? Guess you should have invested in stocks, commodities, the dollar, the euro, the yen, greek debt, or "something". Maybe you could pull a Momo, and cherry pick a few "winners" from a heap of losers, and claim that you owned them all along?
Edit: Why isn't the strikethroough working? All those other things that he could have invested in have underperformed compared to gold, and should have strikes through them because of it.
Remind me again, how much interest are one year US Treasuries currently earning?
(And even that pathetic percentage is overlooking the very real risk in holding a portion of the unsustainable and fundamentally unpayable federal government's debt.)
You can´t eat e-minis nor BITCHEZ! Wait, yes you can...or was it bitches you could eat? In Korea they do, me thinks....
The one thing lacking, as it had been prior to the run-up during the summer, is occasional bouts of negative nominal interest rates on the three-month treasury bill, which ensured that gold rose as volatility rose.
Operation Twist is ensuring that longer term bonds are being bid up, rather than short term money. So why are longer term bonds being bid up when there is so much supposed sovereign and credit risk?
23% YTD my ass... Gold isn't backed by anything! Everybody knows that.
http://www.commodityzen.com/2011/09/gold/gold-isnt-backed-by-anything/
/sarc off
Stop! That hurst my stomach from laughing every time I think of it! STOP!!!
So shift, then. Love those manual shifters.
The $ is a joke....a bad one.
I don't care if gold and silver are bubbles. I'd rather lose money and own coins than lose purchasing power to inflation and be left holding paper. At least this is on my own terms. Plus, I view the real value of gold around 3500oz, so now matter how far it goes down I feel okay that one day it will be priced properly. This "correction" seems normal. Options, hedge fund liquidation, and margin calls = lower gold. It'll skyrocket in a week or two. If it doesn't, who cares? I didn't buy for a return.
The argument that you "can't eat gold" is retardation. You can't eat paper, either. Unless you want hamburgers as currency give it a rest. The argument that "sits there and does nothing" is equally retarded. As if your Benjamins are doing strip teases for you on a nightly basis...
Just don't buy it so we can buy more at lower prices.
-The end.
"I view the real value of gold around 3500oz, so now matter how far it goes down I feel okay that one day it will be priced properly. This "correction" seems normal. Options, hedge fund liquidation, and margin calls = lower gold. It'll skyrocket in a week or two. If it doesn't, who cares? I didn't buy for a return"
Wow. Just....... wow.
Well that's a stunning analysis.
Oh, and a stronger dollar.
By the way, great analysis...I'm sure you convinced everyone to sell their gold.
Devo: The argument that you "can't eat gold" is retardation. You can't eat paper, either. Unless you want hamburgers as currency give it a rest.
Bravo. I think that the main reason that gold is the ultimate measure/store of value is that it has no other function than store of value. there is no market for it (save jewelry, which is fungible for its currency value by wieght.)
I think gold has value because (a) it is rare and (b) it has a historical relationship both as money and against paper money. As the latter loses value and respect, gold reacquires it's "king's money" status for all the reasons fiat falls out of favor.
Last week GATA’s Adrian Douglas correctly predicted that The Gold Cartel would bomb gold and silver going into tomorrow’s Comex option expiry. The bums have done it yet again … and, usual, The CFTC remains silent.
www.lemetropolecafe.com
Gensler is too busy shining Corzine's shoes to notice.
He wouldn't stoop so low. He wipes his ass instead.
The Ice is finally broken!
Last Friday The Guardian, UK ran an opinion piece titled "Could gold-backed bonds be the answer to the eurozone crisis?"
Well, well, well, imagine that! The ice is finally broken and someone floats a trial balloon in a mainstream media outlet. Gold, finally is spoken of as "the asset of last resort". Can you imagine if it were actually spoken of as real money? THIS is exactly where The Greatest Depression is headed but one minor detail needs to be addressed first.
Of course the minor detail is the argument that "there is just not enough Gold to support the system" which is entirely and completely true...at current prices!
The paper system has blown up to such enormous amounts everywhere. Personal, corporate and in recent years sovereign debt markets have seen a deluge of issuance...borrowings... and derivatives of all sorts have reached...
$1 Quadrillion ... no matter what official spin says.
Central bank Gold holdings may amount to $2-3 Trillion give or take a few paltry $100 Billions or so, clearly not enough to support a system of paper as large as the one we are living in. Instant creation of more tonnage is not an option even if all of the global unemployed were enlisted to start digging immediately. No, the ONLY answer is to revalue, ie add "zeroes" denominated in all currencies, Dollars, Euros, Pounds Yen etc..
Trying to "put a paper price" on Gold's ultimate peak ...market clearing price... is impossible to do today because there are too many variables in motion.
The two biggest being that we don't really know how much Gold is vaulted and controlled by Central banks and we also do not REALLY know how much "paper" is out there nor how much "is coming".
The really pie in the sky numbers at this point are ...are you ready for this?
$10,000 Gold!
Can you imagine that?!!
But wait, $10,000 is barely more than "adding" half of 1 "zero"! Let's put this joke in perspective, there are reports which that the "paper Gold market" is fractionally reserved 100-1 meaning that there is only 1 real ounce for every 100 that are ""spoken for".
On THIS basis alone, you need TWO extra zeroes. Then of course one must wonder how much Gold the central banks REALLY have. Have they "leaked out" a little bit here and there to put some pressure on the market price? Paper good, equals Gold bad? Add another zero? 3, 4, 5 more for this little "accounting error"?
Now, let's go back to the article. The first time that a "non lunatic" media organization has allowed such blasphemy to be spoken.
Ben Bernanke testified under oath that Gold is not money ... for which this alone amongst many other offenses he should serve jail time in my opinion.
GOLD is now being discussed because nothing else has "worked". Nothing else that has already been tried CAN work because the problem IS the money, it is "bad".
If "the money" is bad then no one can REALLY value anything in the economy nor financial markets properly...period.
The fact that this "trial ballon" has been floated is very telling.
Behind the scenes there is now outright panic so "let's sell the family jewels" is being discussed.
Well, not really "sell" because they are only talking about using Gold as collateral but it is only a matter of time until the light bulbs start going on when they figure out that the entire Gold capitalization at these prices doesn't even amount to a pea shooter without a pea compared to the paper bubble that they have created.
No, THEY need a bazooka which can only be fabricated by ADDING ZEROES to price of their last and only reserves, GOLD!
Think about it, add 3 zeroes and mark Gold to $1.7 Million per ounce and the public debt goes away.
The smoking black holes in the banking system miraculously go away. Yes, assets held in paper accounts get 'inflated away" to nothing but who cares?
This is where we are headed, THIS is the answer.
THIS has been the answer all along and to every failed fiat experiment. It is now only a matter of time before they play "the Gold card".
Make sure that you have a secure place on their coattails!
www.lemetropolecafe.com
Interesting! back of my envelope: US M1 / US Gold Reserve = $8,008/oz
What about oil and soybeans, and al-queda health insurance?
That's like saying winter is colder than summer. No duh. They do that every month. That is why I make my monthly buy on the last day of OpEx, unless I get stupid and try to time it by paying attention to the news cycle and fundamentals (both of which are worthless in this market).
Crap, Nothing But Crap.....name says it all.
Everything is Uncertain right now..EVERYTHING. In the future Gold should be far less uncertain than anything else. But since when does common sense win theses days?
With a world wide financial re-set or change in a reserve currency, gold will be re-valued. I think the key is held in the Euro failure and the US exposure to the bonds and CDS with the Euro failure. That will tell us the velocity to expect. The more ability and time for those to go to the dollar PM's will fall. If the crisis hits the US fast then Pm's will rocket. If Ben and the ECB and IMF kick the can some more then expect more of the same sideways shit. Cash and PM buys in moderation is the only safe play.
It is easy for people to say let the failures happen but I have a new term: TBTSO - that is... when does the system get so fucked up that things are Too Big to Start Over? Where does the start up liquidity come from? No one is going to pay their shit, not us, no one.
There can never be such a thing as TBTSO. They're called the Dark Ages for a reason.
or dinosaurs...
Too Big To Shit On?
"When logic and proportion have fallen sloppy dead..."
Grace Slick and Jefferson Airplane: http://www.youtube.com/watch?v=WANNqr-vcx0
I keep loading up my boat, now I need bigger oars.
Don't forget to sink it.
Tough choice here. FASB mark to fantasy saturated debt based fiat currencies drowning in their own puke or ounces of real money I can hold in my hand. This lamb will not be silenced!
Bottom line: buying power of physical dollars getting crushed.
Buying power of physical gold rising.
And the process of dollar devaluation is accelerating under the radar in a stealthy way, known to the cool kids as "Biflation".
Let's look at the action today: Big picture, stocks red for the year, CPI 3.5% annualized, crude up for the year and gasoline setting records for the month of October in many states.
Detailed picture: those $1.2 Trillion in .gov spending cuts will eat into your healthcare and retirement funds that will have to come out of your pocket. And the cuts are deflationary to the economy. The coming Eurozone meltdown will be deflationary. But the cost structure of living or doing business will stay robust: energy, food, raw materials, taxes, bank and transactions fees, legal fees, insurance, healthcare, education, transportation, cost of homeownership. Even Starbucks announced it will raise its drinks
Many here view gold as an opportunity to increase their wealth. While possible this is not likely in a world where an 80% or greater haircut in all assets is required to restore balance between income and debt. Gold will lose less than everything else for many reasons that most of you understand. But don't expect gold to make you rich. Just trust that it will preserve more wealth than anything else you can choose to own, provided that the government or someone else does not take it from you.
"Rich" is a relative definition. When surrounded by millions with nothing, anyone with preserved wealth remaining will be rich.
Yeah. What NA said.
You have to figure that all that paper money has to go somewhere. Wealth is never destroyed it is merely transferred from one form to another.
The next big shift is going to be from paper money to real money. It's global this time. All that paper money has to find wealth/value somewhere and it's not going to be in more paper.
Make sure you're on the right side of the tracks when the mass shift occurs. When every piece of paper money becomes worthless, how much is an ounce of gold really worth?
Think about it.
Owning USD is an investment too. You'd have to a least have a small hedge against that wouldn't you?
I'm thinking about shorting Silver. Considering my track record, that means a bottom is close.
I bought when it hit 58:1 with gold. It's at 53:1 right now.
Regardless of the $ price, the ratio is what you need to look at for top/bottom.
$2 in silver for every $1 of gold, bitchez.
We have a winner. The ratio is going higher before it goes much lower though. When it gets into the 60s I'll think about flipping.
Hey, me too. I traded what few gold shirt buttons I had for Ag at 58:1. Now I'm a silver loon. Gold is small, those little coins kept falling into the shag rug, freaking me out. It's harder to lose a cartwheel that way. The ratio is much more important than the fiat price.
Regards!
Shorting paper silver is a good move, as the markets will likely be collapsing soon. Just hope you trust your broker not to steal all your money.
Better to just buy physical and let this house of cards burn on its own.
Incoming Trav attack in 5, 4, 3, 2, 1 ....
(Expect to read the words "pumpmonkeys" and "bagholders" as part of it. It's utterly regular and predictable --- just like my bowel movements. About as disgusting, too.)
Too busy masturbating to his smug sense of superiority, I guess. That's when he's not ruminating on the thought of his ex wife fucking her jewish divorce lawyer, and her daughters and gay son fucking black men just to piss him off.