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Nobody could have foreseen the "tradition" being a safe haven escape to all the other "traditional" fiat-based garbage available to investors. Nobody. Next stop: $1950.
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Actually it is global hyper bi-flation. Much more dangerous, than stagflation.
hyperglobalbistagflation, bitchez !
For 11 years it has'nt mattered what Washington or The Fed have said, Gold is screaming, "BULLSHIT!"
Tradition mandates that I point out, yet again, how woefully tragic the prognostications and forecasts of Ben S. Bernanke, alleged 'highly intelligent' person and stipulated highly educated individual, has been....well...about every single thing he's pretty much ever said (why is this individual in any position of influence, monetary policy power, etc?):
His whole basis is don't crash the stock market and all is well. But the market does not equal the economy nor main street.
His whole basis is bailing out his still-insolvent banker buddies, saying whatever he has to to cover that. Once you know that, it all makes plenty of sense, and you see how smart he is -- pulled the wool over most eyes entirely, including a lot here -- and pulled off the end of QE2 without any of the dire things happening most predicted here.
It sucks we've created a system in which guys like him have to tell lies to make things work out -- even when they are NOT doing something perfidious. But here we are with what we have.
Sure am glad for those large core holdings in PMs today. Not quite dancing in the street, but hey, this is nice!
I wonder if at some point the Fed, and their Congressional friends, become actually ashamed and embarrassed about what they are doing. When does greed and covering for criminals, which is quite apparent to anyone who takes 5 minutes to look, reach a point of revulsion for those involved? On the other hand, it can be argued that sociopaths don't have situations like that. Are there studies on collective sociopathy?
Is the collective noun for a group of congressmen a sociopathy?
It is now.
Hypernova inflationary collapse... that means buy gold because it will go to $9,000,000 an oz!!
right on sw a target assumes a constant dollar, ya rite
Nobody does it better than Totinos Bernanke!!!!!!!!
Edit: Hey, where's the strikethrough on Totinos?
...whose CB's turn is it to "take one for the team" and announce gold sales?
Hehe. good thing I jumped back into gold three weeks ago but forgot to mention it until now. Just kidding. Where is robotrader by the way?
Digging holes in the ground with mathman.
+1 speaking of methman where is he/she/it?
when does he return to aplogize to us about gold???
Same time that MasterBates comes back to apologize. Never.
The MathMan program went into an infinite loop and had to be terminated. Something about illogical program assumptions...
That would be either Italy or America. Germany isn't going to do it, and everyone else in Europe has already sold most of their gold. Asia is busy buying it.
Ireland still has 4 or 5 tons to give .......................
Safely stored at the BoE?
Dorks Brinks deposit box....................... I wish.
Damn, and I was waiting to buy at a dip this week!
The power to manipulate is fading, its like the more I drink the soberer I become.
wait until they seek physical!! doom!!
1637 is your dip, then.
Ah yes, another excellently timed dip buyer. Love these guys.
You missed it at $1,615.00
Silver is underperforming related to gold. Most likely after the CME manipulations.
I'd rather ride the silver train to new highs from here
Platinum particularly and sometimes silver can lag gold for a while.
I'll admit that I'm a dork and have been waiting for an attractive dip to double my holdings (still small).
I was hoping this debt ceiling charade would cause a brief sell-off before our inedible barabarous relic took off again to $1950+.
So I'll ask you guys who do this more often and smarter than I do: do you buy every week, month, or try to time things like me???
I keep just enough fiat cash to pay bills and buy food. Everything extra gets converted to bullion no matter the price.
I usually buy whenever I have cash to spare. Usually works out to about once a month.
@ Long John Silver & mickeyman -- Thanks for the advice. Dollar-cost averaging seems to be the way to go.
Knowing how rigged the system is with manipulation by CB's and JPMorgue et al, and with the absolute certainty that Benanke will pull the trigger on QE3 - QE10+ makes me nervous.
I'm tired of being the dumb money and bought physical gold 2 years ago. Looks like I'm going to buy 5 or more oz. this week.
I have some gold, but mostly buy silver because it's all I can afford right now. I buy $100 of silver once a month regardless of price. PMs are not an investment to me so I don't time the market. I just acquire to build an inheritance for my children. They are going to need all the help they can get in the future.
I'm planning on buying more silver too. Understand that's more speculative than gold, but if the historical ratio holds up silver is set for a massive ride upwards.
I also have a wife and children (six kids actually) and see this not as a way to become rich, but rather to preserve wealth & freedom for them someday. I figure worst case scenario is I give them these shrink-wrapped gold bars on Christmas 2016 as play money for their LEGO's or whatever and tell them how silly I was to buy all this gold (on the inconceivable chance that its no longer a reliable store of value). However, I don't think that will happen before gold hits $3,000+.
Buy physical and don't look back.
Silver is more VOLATILE than gold from a relative per centage perspective.
Nowadays, if your time horizon is more than a year or two, there isn't much speculation involved.
Consider the acceleration of dollar debasement and history.. it is all too obvious.
Yeah -- this is why you maintain a goodly core set of holdings that you don't trade. That dip might still happen, give it a little time. In the meanwhile, that last little dip was over 1% below where gold is now, and 2% less than silver now - not a bad trade, which I was in on.
Yeah, PM's to the moon! But their purchasing power remains the same in general - so don't get too excited if they are worth more bucks - you didn't win, you just didn't lose.
You don't need a dip to buy into a move like this. This isn't just a trade, it is a once in a lifetime event, the death of most, if not all fiat currencies in a global economy, and the destruction of the reserve currency, which was leveraged to stave off the collapse, thereby ensuring it will be all the more cataclysmic.
The run gold has had over the last ten years will be dwarfed by the run it has when the reality of the situation becomes clear to everyone. Don't buy on the dips, buy now. The difference of 0.00001% profit will be meaningless when it is time to sell.
Me too! I thought it would be a nice dip, coupled with the seasonal low.
Yeah, weren't we all in agreement that with the signing of the debt deal, gold was going to take a haircut? Heck, in 33 minutes the Senate will vote it in, and gold is NOT going down at all. I was secretly wondering "If we're announcing that we're borrowing (or printing) more dollars, that should weaken the dollar, right? "
Gold: The measuring stick for failed Keynesian economics.
Keynesianism didn't fail. It was dismantled and sabotaged.
More like it's on steroids.
Yes, central economic planning by a handful of elites is always best, except we keep on getting the wrong elites, every single time. Darn it! I wonder why that is? /s
Reminds me of the book "Wisdom of the Crowds." The basic premise is that a group of independently-thinking, informed people are better at arriving at the optimal answer than a small group of experts in the area.
Four elements required to form a wise crowd
Not all crowds (groups) are wise. Consider, for example, mobs or crazed investors in a stock market bubble. According to Surowiecki, these key criteria separate wise crowds from irrational ones: Criteria Description Diversity of opinion Each person should have private information even if it's just an eccentric interpretation of the known facts. Independence People's opinions aren't determined by the opinions of those around them. Decentralization People are able to specialize and draw on local knowledge. Aggregation Some mechanism exists for turning private judgments into a collective decision.
Based on Surowiecki’s book, Oinas-Kukkonen captures the wisdom of crowds approach with the following eight conjectures:
1. It is possible to describe how people in a group think as a whole. 2. In some cases, groups are remarkably intelligent and are often smarter than the smartest people in them. 3. The three conditions for a group to be intelligent are diversity, independence, and decentralization. 4. The best decisions are a product of disagreement and contest. 5. Too much communication can make the group as a whole less intelligent. 6. Information aggregation functionality is needed. 7. The right information needs to be delivered to the right people in the right place, at the right time, and in the right way. 8. There is no need to chase the expert.
Amazing. I point out that Keynesianism was perverted and undermined and that's why it "failed," and folks here line up to downvote it.
I get it now. The denominational doctrine here (and a lot of high places) is that Keynesian economics failed, period, and we're tossing it overboard, and don't anyone dare challenge the orthodoxy or the wisdom of the elite mob.
Nice lockstepping bunch you've attracted here, Tyler.
I know where all this is headed. It's gonna get real ugly. God help us all.
Keynes, like Marx, has been a favorite straw-man for years, someone that everyone loves to kick, but one that few have read or really understand. They only know what Bill O'Reilly and Glenn Beck claim they said.
One of Keynes' ideas was to work on local infrastructure to increase employment and borrow to pay for it. That might not be a bad use of resources now. Is it not better to use the unemployed to patch the potholes instead of commandeer the remote from the couch? The government must borrow either way, i.e. to pay unemployment benefits or to pay to patch potholes.
This shouldn't be construed that I believe either Keynes or Marx walked on water without getting their feet wet.
Wrap a slice of lemon around a large gold brick and smash some brainz out!
Not related but, is there some reason why ZH would be blocked on Shaw in canada. No problem with Telus.
Try the direct IP. Maybe it's a glitch with their nameservers.
Use telus, ping www.zerohedge.com to get the IP. Then try it on Shaw using the IP address instead of the name. That will tell you whether it's really being blocked or not.
LOL! You see some of the strangest and funniest things on this site! (Yuck, you have dogbreath!)
I'm on Shaw in Canada, no issues here, eh.
You haven't been targeted as a subversive......yet. Keep coming to Zero Hedge and watch what happens. Big brother is watching and they are not as incompetent as we wish to believe.
Or it could all just be an ISP blip. That's part of the game, plausible deniability. :)
If you are deemed paranoid, you will be placed under observation.
damn you Gold eaters!!
Gold.....it's whats for breakfest.
thanks. I was wondering what to have for breakfast.
all I got was truffels and caviar...
Breakfast of Champions?
Buuurrrpp! Mmm, tasty!
Where's Momo, parking General Jim's Ferrari?
hehe, that was the firsts thing I thought of when I saw the article title..... A quick google brings back the memories!
That sucks. I was going to buy today on the dip.
Gold and silver have totally decoupled for a week from the "risk on/risk off" trade and are now behaving like real safe havens, not just inflation hedges. Which is a good sign.
According to Marc Faber there should be a dip soon in front of us. IMO it could be a 20% (I'm hoping).
This while he confesses he is astonished about how shallow the dips were, so far...
"I love Chinese, I love Chinese... they... love gold" (you know the Monty Phyton song, do you?)
i like their tiny little trees. lol.
The world today seems absolutely crackers With nuclear bombs to blow us all sky high There's fools and idiots sittin' on the trigger It's depressing and it's senseless, and that's why I like Chinese, I like Chinese They only come up to your knees Yet they're always friendly, and they're ready to please I like Chinese, I like Chinese There's nine hundred million of them in the world today You'd better learn to like them, that's what I say I like Chinese, I like Chinese They come from a long way overseas But they're cute and they're cuddly, and they're ready to please I like Chinese food, the waiters never are rude Think of the many things they've done to impress There's Maoism, Taoism, I Ching, and chess So I like Chinese, I like Chinese I like their tiny little trees Their Zen, their ping-pong, their yin and yang-ese I like Chinese thought, the wisdom that Confucius taught If Darwin is anything to shout about The Chinese will survive us all without any doubt So, I like Chinese, I like Chinese They only come up to your knees Yet they're wise and they're witty and they're ready to please All together Wo ai zhongguo ren, wo ai zhongguo ren Wo ai zhongguo ren Ni hao ma; ni hao ma; ni hao ma; zaijien I like Chinese, I like Chinese Their food is guaranteed to please A fourteen, a seven, a nine and lychees I like Chinese, I like Chinese I like their tiny little trees Their Zen, their ping-pong, their yin and yang-ese I like Chinese, I like Chinese They only come up to your knees
everybody spouts this "20% correction" shit. They were saying it about the SP for 2 years. Gold corrected down to 1490 from nearly 1600 not more than a few weeks ago.
A 20% drop is not going to happen at this point. This isn't one shadowy person manipulating the markets, it is a conspiracy. The co-conspirators (central banks) are a gang of thieves and back stabbers. Do you imagine they will let gold drop by $320 and not jump in and buy like crazy? It will never happen.
Psst...Faber, the manipulation of gold and silver is yielding diminishing returns. Anyone who thought about it would have predicted it and would not be astonished like Faber.
Big UPS to Jim Sinclair...you're the man,Jim..king of the bitchezz
Once we clear Sinclairs $1650 I'll be flaming the shit out of some of these mindless goldtards if they have the balls to show up around here.
I thought I´d share this here: I am in a Chinese mountain town right at the North Korean border at the moment... visiting family.
The interesting thing: there´s at least 4 or 5 fancy high class "gold shops" here, always filled with people buying 24K stuff at the day-price per gram.
The Chinese know that the shiny stuff is where they want to put their RMBs into.
Meanwhile, our streets are filled with "loot4gold" shops and fancy-looking stores exclaiming over how much money you can make by hosting a gold party.
Should I incorporate Mandarin or Cantonese into our homeschool language curriculum?
I think it´s also a cultural thing. People in China grow up hearing in each of their traditional stories that gold is real money.
For every Chinese holiday, you see pictures, drawings and "replicas" of gold everywhere. You don´t need to teach the Chinese that gold is the real thing.
I'm from western Europe, and I am the only one in my circle of friends who owns PMs. I've explained to them why it can't be a bad thing to hold PM's, no matter what happens, even if the economy doesn't go down the drain... but they still think I'm kind of "weird".
Another thing: I grew up thinking that silver was a "real" precious metal, like gold, but "a bit" cheaper... i had NO idea that the "price" had been this much accessible all these years. I only found out when it got to 30 USD per ounce. So late, but still early enough.
The culture and Tradition of Gold is the key. Eastern forefathers were much wiser than Western and made a set of rituals and traditions centered around sprituality
with Gold used in all rituals, Indian culture is the master of such application of Wisdom - right from the time a child is born, Gold is given as gift for each stage and
religion did not matter here.
A neighbor of mine just invited me and my wife to a gold buying party and this is after me squaking about buying gold and silver for the past three years. I looked at her rate sheet and did the math to show her that she was hosting a party where the "buyer" was only giving people about 50% of spot for their gold. Still, she was so proud that she was able to bring in family and friends to this party and was equally excited about the thousand dollars she made.
Blind ignorance in the face of audible truths. Tits a shame, but let them roast in their own ignorance.
Such parties are just sheep shearing events, the host shears friends and families (oh, won't that make for wonderful coffee table talk in a few years!) and in turn, gets sheared by the company that "sponsors" the party!
For my family, I've been giving silver rounds every Christmas so that when things really go, they have something to at least allow for survival. They may not realize the value of the gift, but they will.
Our responsibility is to family (blood or no), they may have skill sets we need for any reset and I only give to the ones I like.
Yeah, Got Physical
Years ago a high school buddy worked at selling jewelery for several years. Learned a fair bit about precious stones and maybe not so much about gold. He said, that the alloy's 22k 18k etc were more expensive than 24k because of alloying costs. So at 50% of spot the ripoff is even steeper on the alloys.
About the same time there were similar "gold/jewelery buyer/seller at the hotel". Met one of these sellers and said a lady came in and wanted to trade her dead mothers wedding ring. The dude said he gave he a trade in on a stone thet was worth more than the one she picked. suckers!
eh...the friends and family were probably tickled that they "got so much" for all that worthless jewelry they had. That enabled them to take that trip to vegas and gamble with the money. Or get that 3D flat screen.
people fall for this shit??? I mean they think WOW I am getting actual cash for this crap I don't wear? Are they THAT stupid?
I will give them 60% of spot, sheeit. And I will give the turncoat $1200
Thank you for the report.
If I might ask, how is the supply at that place?
.. and what is the form factor of the smallest pieces?
Just weak Spec shorts covering... Will be taken down later in the day...
Crap, I better hurry out and change that stack of billz into silver coins pronto.
Heck, TaxSlave. Turn those billz into something: silver, food, building materials, land, anything tangible.
I'm doing my bit to help the consumer economy. I'm turning every FRN I can get my hands on into physical assests, as fast as I can. Silver coins are part of our regular budget. In fact, I get nervous if the savings account gets too big. Don't want dollars; turn them into something with value, asap...
Same here. Maybe I can find a sale on .308's. Lead is a little less volatile right now, but still too expensive.
Anything but leaving it in the bank.
I've found some good buys at www.ammoman.com
Ammoman has a bad reputation in the gun community but my experience is different. I have bought from him before the 2008 price explosion. He shipped me the wrong stuff once but luckily I could use it so he gave me a discounted price on the wrong shipment (rather than returning it), then sent me what I really ordered.
Last year: $42 for 308 in 20rnd box Fed Gold MMatch hpbt 168g.
Today: $22 same ammo.
12 month futues on same ammo: $84?
16 month futures on same ammo: $840?
24 month futures on same ammo: Unavailable?
Got a friend who likes to say ammo is the poor man's gold.
Buck-a-pop is still pricey, but a relative bargain compared to lots of other stuff.
Especially if it extends your life for a few minutes longer some day.
Senator: Mr. Chairman, is ammo money?
Chairman: Errr, aaahh...well, no.
Senator: If that is so, why sir, do patriots of this nation continue to accumulate ammo in the face of today's unlimited, ever-authoritarian, Constitution-nullifying government?
Chairman: It's tradition.
Let us know how that .308 on sale works for ya!.All this too expensive,is going to look real cheap at double and triple where it is now.
In thirty years of analyzing gold shares versus gold bullion, I have NEVER seen the shares cheaper on a price-book, price-earnings or market cap per ounce basis. It appears as though "paper" is now being shunned for the physical as a portfolio management "strategy". However, the magic date (historically) for the seasonal rally in the shares will be on or about August 15th so gentlemen "Start Your Engines."
Agreed. Recent signs of life in the juniors have me believing their day is finally here. GDXJ bitchez.
It's easier to suppress the price of the miners with naked shorts than it is to suppress the spot price of PMs. I wouldn't put too much faith in any seasonality anymore, that's like saying a hurricane is not a hurricane because it's not "hurrican season." The miners are a good long term investment, but when they pay off depends upon when the Fed hits the "uncle" point. That ain't a gonna be on Aug. 15th lad.
wake me up when it's $6,401...
The canary in the goldmine, as used to say Greenspan.
Tyler, how can you have such a sharp sense of humor so early in the morning. Oh,I forgot, you are on the East Coast, almost lunch there. lololol
Hit men dispatched to where gold and silver live. ETA?
They prefer to be referred to as "Zips".
It's a Family Tradition, Hank with Kid Rock
Thanks for the link. I think they should play that song everytime The Bernank enters a room.
Wish a buck was still silver...
Bonds also rallying again. 10-year was below 2.7 at one point this morning.
When all the experts and forecasts agree, something else will happen -- Bob Farrell
Hmmm... Bonds and Gold rallying as "safe havens". Eventually, one of them will prove to be a very unsafe haven. Which one might that be?
I'm a believer in the PMs and own them, but the big brokerage firms are far more bullish on PMs than bonds. They hate bonds and I always do the opposite when there's uniform opinion among the scumbag Wall St firms.
Bonds are OK as long as you can trust the counterparty. Those days are long gone. Even central banks are buying gold again...
"...but the big brokerage firms are far more bullish on PMs than bonds."
Uh, when did that happen?
Voldemort as Paul Van EEden
Been that way for the past 6 months, at least. Look at the polls. Read the research reports. It's not even close. There is overwhelming bearishness on bonds.
My understanding is all Govts except US and UK want a new wealth reserve to settle trade debts and move away from US treasury bonds.
They support a high price for Gold. US treasury and Dollar seigniorage being replaced by Gold. all this started in 2000 just as ANOTHER foretold.
Korea bought Gold last month at around $1550/oz. I believe that is a
new base just like $1050/oz was a new base when India bought in 2009.
It's amusing that BoK finally bought gold. They've been talking trash about gold for years now. Now they've finally started jumping into gold after the price rises another 100%. Don't look at these guys for market timing.
This week might even be more exciting than last week...so much for that huge long term drop after the debt deal was done. I was hoping so I could buy more...but such is life.
The criminals will do a drive-by this morning and again around 1:30; but the trend will take gold to $1750 by Labor Day.
We are in the 3rd inning of the PM 'Good Old days'
Gold - 5000
Silver - 150
looking forward to the 7th inning stretch and then hopefully some extra innings.
Glad I covered my tail (risk)
Three Sigma Or Bust!
Anybody seeing a pullback in gold/silver? Since they just past the debt ceiling, soon to be final, they want to make this look like they did the right thing. Just speculating, asking for thoughts?
Maybe Bernanke won't notice?
duplicate - deleted
Who can afford to buy this at such prices?
Well If I have printing press in my basement, I'd buy..
Bought back at $700 and even that was too much..
GOv's are printing and buying GOLD, I don't see anyone
actually hard working 2 weeks for 1oz of crap metal..
What are the hours?
You would, and people do... if you though that when you came to sell it would be the equivalent of 5 weeks work !
The alternative is keep your 2 weeks earnings in Cash - which is losing value all the time.
That would be Ridiculous
Well, me, for one. I have been accumulating for years - never look at price - tried waiting for dips, but during the last year or so, they've been hard to come by.
You may want to buy in grams .vs. ounces. GoldMoney gives you that option - and you can slowly accumulate towards an ounce and then take delivery...It is once again becoming the money of kings - and will be priced accordingly
Yeah, who needs an ounce of crap metal when you can get THOUSANDS of dollars!
Your avatar contradicts your comments!
people much richer than you can afford it.
Paging Bob Prechter, paging Bob Prechter - diaper change in room 3...
I stand in the presence of greatness.
Big boys clean up their own messes.
Robot Trader: Sell gold, Buy momo Nasdaq stocks! Nice call!
While Robotrader and Gartman were selling gold, the smart money was doing the opposite. The 2 were seen sharing a hot dog at the IBD all-star game.
its a Depression stupid,
sold out all metals,
Cash, is king wait it out.
US is Greece
Yes - risk of deflation/depression.
However, the principal drivers of gold price - Central Banks who are buying, are not short of cash at all.
So why would the gold price fall - the worse things get, the more attractive gold looks.
Granted, silver may take a dive - since its not driven by central bank buying - but these bank want gold, and have the means to pay for it - irrespectiove of any deflation/depression.
Weimar Germany was a depression too, stupid.
Cash will not be the store of value Atlantis. Keep reading...
Debasement can outrun deflation any day, and the people who decide whether we will debase, are going to keep printing like crazy.
WTF do you think is gonna happen to the drachma, idiot? People already prefer Euros printed by non-PIIGS
cannot think of a better time in the past 30 years to have a little fun and advance the thinking capacity of an economics professor's mind to flush this keynes economic hangover down the freaking crapper.
Bought back into Gold and Silver on Friday last week. The next several months should be very nice!
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