Update: $1,623 And Rising..... The "Traditional" "Barbaric Relic" Hits An All Time High Of Over $1615

Tyler Durden's picture

Here, let us explain to you how this works: you take some "tradition", you mix some central planning, you throw the imminent threat of default by the world's reserve currency and you end up with gold surging to $1615, well on its way to $10,000 and more. Any questions?

Update: $1,623

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Bard's picture

No! Please, i need to buy more.

10044's picture

you should've done so 800 bucks ago, in 2008

toady's picture

I got mine at 1000 even and was SO afraid I'd lose...

Now I'm thinking I need more!

knukles's picture

I'm as happy, indeed giddy as the next long in PM space, but beware...

This is an exact point in time, pure event horizon for Blythe & Co. to slam the absolute piss out of silver for JPM and somebody (HSBC/JPM, et al) to take the fucking hammer to gold for the Fed, Treasury, BoE, etc.
Just be-a-fucking-ware that specter remains lurking, looking for a kill, with vengance.

The prime motivator might just be the dollar itself on the crosses.  Whilst policy to want it lower of all currencies in this world wide clusterfuck beggar thy neighbor devaluation routine, just never ever want a dumb ass out of control collapse.  Looks bad.  Pople get fired, thrown out of the esteblishment inner circle for that kind of shit.  Unless, of course you're of a Larry Summers level. 

Don't be surprised if they come in and hammer it... or wait until the euphoria wears off...
PM's are gonna go up. 
But the road is gonna be major terrifying scary sometimes.

Pure Evil's picture

But, but, where's rat-raj gloating about all his gold shorts?

If this keeps up, he'll be talking about the gold bricks in his shorts.

redpill's picture

Thread needs more GOLD, BITCHEZ. 5000 years of human history are asserting themselves. Stand in the way if you dare, banksters.

Inibo E. Exibo's picture

The drivebys seem to have less effect and shorter duration each time.  They are going to need another earthquake or something.

Smiddywesson's picture

The drivebys seem to have less effect and shorter duration each time.

I'm definitely seeing the same.  The manipulators are seeing diminishing returns.

fonestar's picture

barbarous relics... good for bashing in kensyian skulls

Cheesy Bastard's picture

As opposed to Barbarella relics, who are not even fit to hawk books on QVC

Problem Is's picture

Barbarella (1968)...
Yeah but Barbarella had a hot bod(y) in her day...

Missiondweller's picture

After (if) we get a debt ceiling increase, gold & silver will come back down. Blythe may use that opportunity to use the downward move as momentum and hammer it down further.

GtownSLV's picture

Think you nailed it Knuckles. PMs have at least a couple more smack downs before the TPTB completely loose control and it stats jumping 2x, 3x, 4x... Looking for a pull back to the mid to low 1500's end of this week. Not a bad opportuity to turn a few hundred dollars in put contracts into a few ounces of real gold. 

ItsEvolutionBaby's picture

LOSE LOSE LOSE LOSE LOSE LOSE LOSE

Deacon Frost's picture

Just keep steadily accumulating along the way

chumbawamba's picture

Speaking of, I'm starting to get that 2008 feeling.

But if you missed 2008, don't worry.  It's still cheap.

New_Meat's picture

Chumba-now, with the new features, you can have your normal sign-off automatically!  How cool is that? - Ned

Popo's picture

I have a question. If gold is going to $10,000, where is gasoline going?

I'll be the first to say, gold is going much higher. But $10k? ...somewhere between now and 10k, gasoline is going to double, triple and quadruple, At which point, everything will and must implode.

At a certain point, I'll be swapping everything for food and ammo.

Just sayin...

Mr Lennon Hendrix's picture

Gold is a store of wealth.  Nothing else is.  If you produce oil, yes, you are going to be rich, but oil is not a store of wealth. 

That being said, if gold goes to $10k, the first question you should ask is, 'What happens to fiat currencie?'  Because that would render fiat worthless in real terms, would it not?  Still, people would want to pretend.

Then you should ask, what will oil producers wnat as collateral for their oil?  Dollars?  Nope.  Gold.  So then gold would have to back the currencie.  Welcome to the New World Order.

Mr Lennon Hendrix's picture

Or what deflates?  Congress just gave the President a raise in the debt ceiling.  That means Treasurie can throw a few bucks at Public Pensions, SSTF, and go on issuing tens of billions of dollars per week, which means Bernanke has a free pass to monetize however much debt his ivy league assed brain thinks is necessary.  That all means the President's Working Group on Financial Markets, headed by the aforementioned Geithner and Bernanke, has liquidity to work with so to keep a floor under equities if they need to.  And besides, who wins from this debt ceiling, the Euro TARP, the US TARP, the STIMULUS, etc....the corporations.  This is a corporate takeover, and nothing less.

Vic Vinegar's picture

Correct again.  And I just want to chime in once again before I log off.

The corporate takeover has been long underway, started way before you or I came into this world.  To try and fight it now would be akin to you or I plugging our bodies into one of the Fuku reactors and expecting the rads to stop.

Corporations > US Constitution.  I'm not saying I like it but I am saying that is the world we are in.  

Learn to deal, bitchez.

Ponzi Unit's picture

Hard-eyed, but realistic. 

Stay low and keep moving...

Mr Lennon Hendrix's picture

We choose our destiny.  We buy ipads, we buy nikes, we pretend to elect our politicians, we do not march on Washington.  We will get what we want; and it appears humanity is in a masochistic state of mind and wants to rebuild itself from total complacency.  Why, I am still not sure.

Rynak's picture

Who is this "we"? Equaling it with "I" is just as dangerous, as acting as if it doesn't affect "I".

In other news: Current "democracies" rely on roughly 50% of the population voting for someone, who does not need to keep his word regarding the "policies" he supposedly represents, and is not a not affected by the consequences of his actions. Phrased another way: "They" vote for hope in someone, and nothing else.

Bottom line: You are not "they", and they do not "vote" democratically. The only democratic aspect absent of "you" as well of "them", is not simply killing the bastards. Everything else, is just an excercise in "suspension of disbelief" - and it's quite powerful - in fact, it is what keeps the system running... yet is rapidly losing the carpet on which it is standing.

Yet, what will YOU do, when the house of cards goes down? Will you support the opposite of what you see in "them", that is anarchy, and in the process provoke the same thing happening again? Will you support "the many" being finally supported over a few, and in the process of this "another absolutist"-ideology provoke the same thing happening again?

Will you be among those, still trapped in dualism, or will be one of those thinking in "difference", rather than "opposites"?

EDIT: This message brought to you, from someone who does not vote, is neither employed nor umemployed, owns a lowtech mobile phone, does not buy a new computer every 2 years, owns neither a car nor a TV, does not consume based on short-term considerations, but longterm efficiency, produces a low amount of waste, and consumes a low amount of energy... all while at the same time living a life, which most people would envy, because of efficiency.

Henry Hub's picture

How true! The United States is a country of the corporations, by the corporations, and for the corporations. Individual citizenship is worthless and meaningless.

New_Meat's picture

hank, I presume that you are from Chicago, NYC and/or DC, maybe SF.

otherwise, "or not"

- Ned

Popo's picture

Agreed completely that this is a corporate takeover. And agreed completely that our elected officials will only ever throw money/debt at our problems. But I think oil prices will ultimately function the way bondzilla hasn't.

I think we're going to see $8 gasoline far, far sooner than anyone expects.

And when we do, all bets are off. America grinds to a halt, and there won't be fuck all the Fed can do about it. Printing will only make things worse.

Rodent Freikorps's picture

Things might get so bad California will allow drilling off the coast.

 

Mr Lennon Hendrix's picture

Rising gas prices are the likely scenario considering dim witted Bernanke and his Ivy League text books do not understand what his 14k tonnes of gold are doing in vault.

"What gold?"

-BS " Tradition" Bernanke

msamour's picture

I was thinking the exact same thing. The billion pound pachyderm in the room is the price of energy. I can barely afford to drive to work now, and if the price of gasoline goes up another 20 cents per liter (up in Canada) I will have to park my car because it is no longer affordable for me to get to work. Multiply this by thousands of people like myself that are in the same situation, and suddenly it becomes clear that the end game is complete break down of consumerism because there is no more discretionary spending to be had.

Rynak's picture

The bottleneck is:

- how to "earn" your living (as always)
- Your expected lifestandard. Or more precisely: Your expected efficiency.

If you manage to earn a living, that is just sufficient for what you ACTUALLY need, you may find yourself living a life, which most others envy (and for this reason, hate you for).

Fact: The system as well as most others, expect you to work on inhuman and inefficient conditions, to sustain a highly inefficient lifestyle with little gain compared to the benefits.

Doing it different is hard - especially setting it up, and the social/moral backlash - but once you manage to go over the threshold, you never ever want to go back, to the insanity that is current western lifestyle.

Don't wait for the system to adapt your way. Extend it yourself to the extend you need.

Rynak's picture

Just noticed, that apparently thanks to the new "upgrade", i cannot edit my posts about 30 mins after i made them, even if NO ONE replied.... so, here goes my "edit", bypassing shitty 'pro/regress" in the form of "newer is worse" aka "updating is downgrading":

EDIT thanks to "downgrading" follows:

This message brought to you, from someone who does not vote, is neither employed nor umemployed (yet earns a living without tax-sponsering), owns a lowtech mobile phone (yet can call other people more efficiently than others), does not buy a new computer every 2 years, owns neither a car nor a TV (yet understands current events better than others), does not consume based on short-term considerations, but longterm efficiency (yet because of this enjoys a higher lifestandard), produces a low amount of waste, and consumes a low amount of energy (yet because of this can afford a national fight every month)... all while at the same time living a life, which most people would envy (GUESS WHY!), because of efficiency.

Rynak's picture

Just noticed that i apparently posted this "reply-edit" to the wrong reply of me (or it was just webapps being incapable of dealing with tabs - who knows in fucked up times of web 2.0?).

(it was instead refering to the previous post of me, one up).

At this point, i could blaim me for posting an "DOWN-grade"-induced" reply of me, to the wrong post - or i could just say "FUCK IT. You 'update" something, you ensure that it IS actually an upgrade, or take the blame".

Yep, that's a flame towards sacriledge (and if the suppliers of your 'upgrade' share the blame, you're welcome to forward my flame - yet, you are complicit in distributing what we in german call 'improveworsening'). Phrased another way: If public Zh-posters become beta-testers of supposedly release software, then either your supplier of "upgrades" does a shitty job, or you, or both (most probably the later).

(P.S.: if at this point you think "in web 1.1 everything was better", you share my sentiment and symphaty. Stop working for ineffiecient, complicated jobs, and restrict your work to practically efficient and useful work... 0 jobs offers left? Oh dear, welcome to my world, where civilization is insane, while i am sane in the lunatic asylum, that is called 'civilization'."

Nozza's picture

not that I want to do it with your post, but how does one go about junking a post now? Where's the New Wonder Interface User Manual?

 

Noz (the confused)

jekyll island's picture

What deflates?  The $600 trillion in derivatives, CDS, etc that are all linked.  Talk about taking all the oxygen out of the room.  If all the CDS default, the deflation could pull gold below $500/oz.  Because of deflation, that same gold could buy 10 times more than it currently does.  There is a real risk for deflation if the derivatives market blows up, gold would still be the answer but the paradigm would shift.  

Mr Lennon Hendrix's picture

If the banks need the derivatives, they will call them, and same goes for the CDS.  That is not deflationary, it is the opposite, as it will increase the money supply by cashing out insurance claims, but will also buy equities with inversely leveraged positions.  And where you are getting $500 from I have no idea.

SWRichmond's picture

Gold performs beautifully in a deflation.  Your question "What Deflates" is probably one of the most important.  And the answer depends on your perspective: deflates w.r.t. what?  The buying power of money increases in a deflation.  But what's "money"?  Well, the thing which is experiencing a buying power increase w.r.t. everything else, is gold.  Gold's buying power is increasing w.r.t. (most) commodities, and w.r.t. all "currencies."  The buying power of "currencies" is rising w.r.t. some things and falling w.r.t. others. "Currency" is not money, gold is.  Currency is not even another comodity, as it is not "real" and would have no purpose or value absent legal tender laws.  It is currency that is the artificial construct, and it is one that is being rejected. 

These rejections happen periodically in history.  It's just human nature for an issuer of "currency" to abuse the privilege.  Greed.  It's not more complicated than that.

 

Nate H's picture

debt ceiling raise would be 1 trillion?  fed balance sheet grows another 1-2 trillion? that pales in comparison to the total of money-as-debt our society has in digital claims of 60+trillion - ergo we WILL have mild inflation followed by severe deflation followed by ultimately hyperinflation - but the big meat in the middle will be deflation as the interest and eventually the claims themselves can't be paid.  The question is does the whole cycle (from mild inflation, to deflation, to hyperinflation) take 6 months or 6 years.. (I'd guess somewhere in middle)

Mr Lennon Hendrix's picture

THAT ALREADY HAPPENED.  Circa Summer 2005-Spring 2009. 

6 months to six years...great timeline.  Thanks for the intel.

Nate H's picture

we have neither had deflation or hyperinflation of any magnitude yet - not by a long shot. the deflation we had in 2007-2009 was immediately offset by central bank taking over role of commercial banks. everything has been managed pretty well so far (at risk of much steeper future decline).  Gold and silver are not my focus though I think they go higher over time - but wherever they stop on this run - be it $1,800, $2,000 or $3,000 - there is a high likelihood of 50% drop after that (and then of course another large rally). I don't know how many of those cycles there are left before outright nationalization or currency dislocation - I would guess one.

Mr Lennon Hendrix's picture

You think gold is a cyclical trade, but monie lasts forever.

contagiousNY's picture

the govmint exists to fuel its own system. the corps exist to further themslves. then theres the American people, a separate but not equal system. why arent we equal? we dont band together to confront it. Once that happens, nothing will stop us.

Zero Govt's picture

you want to stop the twin cancers of corporate and political elites (The Parasite Club) eating America alive? You only need to make one quick, easy, effective policy decision:

Stop Paying Tax 

...the end-game will be fast, alot of fun to watch and you've nothing to lose but everything to gain (makes a change from being shafted all your working life by these obnoxious arrogant cunts)

AldousHuxley's picture

During 2007, Iran asked its petroleum customers to pay in non US dollar currencies. By December 8, 2007, Iran reported to have converted all of its oil export payments to non-dollar currencies.[8] The Kish Bourse was officially opened in a videoconference ceremony on February 17, 2008, despite last minute disruptions to the internet services to the Persian Gulf regions. Currently the Kish Bourse is only trading in oil-derived products, generally those used as feedstock for the plastics and pharmaceutical industries. However, officially published statements by Iranian oil minister Gholamhossein Nozari indicate that the second phase, to establish trading in crude oil directly, which has been suggested might one day perhaps create a "Caspian Crude" benchmark price

Vic Vinegar's picture

Welcome to the New World Order.

Thanks for the Evite, Lennon.  Everything you said is true.

Hacked Economy's picture

Agreed.  Gold is the measure/store of financial wealth.  But remember that silver is advisable as well.  If (when?) the fiat experiment goes splat on its face at some point, and we return to a form of gold-backed currency, who's to say the gubernmint won't confiscate private gold again to replenish the bullion we hope/speculate is at Fort Knox?  I advise both gold AND silver in responsible proportions, each for their own reasons in your portfolio.

I'm not too sure about this new comment forum format...it's going to take some getting used to.

At least there isn't a 'junk' button next to each commenter's name for the convenience of teenagers to junk-bounce all over the place.