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Greed is go(o)d, or will itDestroy America?

Posted by: thetraderPost date: 06/30/2011 - 04:15Greed is Go(o)d? It sure seems theincreasingly polarized AmericanSociety believes so. With the wealthgetting even more concentratedamong very few, this will causethe US big problems in future. TheElite is getting a rather skewedperception of what a CEO shouldbe paid, and what rights they have.They are no uberperson, they arejust human.

Bernanke’s Losing ControlAgain

Posted by: Phoenix CapitalResearchPost date: 06/29/2011 -20:12Bernake is slowly losingcontrol of the system. In2007, he was putting $30billion into the system hereand there. In 2008-2010, heupped the ante to $50 billionPER MONTH. QE 2 pushed theamount up to $100 Billion permonth. And here he is, hintingat giving ANOTHER $300BILLION when QE 2 ends!?!?

What will happen if US missesDebt payments?

Posted by: thetraderPost date: 06/29/2011 - 18:20With the Greek vote now done, theoil reserves opened up and theequities market going higherduring the last days, all is great.Let’s not forget about the US Debtproblems though. August 4thcoming up soon, and Obamaneeds to extend that parabolicchart…. From www.thetrader.se

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Guest Post: TheScreamingFundamentals ForOwning Gold AndSilver

Submitted by TylerDurden on06/29/2011 10:22 -

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Submitted by ChrisMartenson

The ScreamingFundamentals For OwningGold And Silver

This report lays out aninvestment thesis for goldand one for silver. Variousfactors lead me to concludethat gold is one investmentthat you can park for thenext ten or twenty years,confident that it willperform well. My timingand logic for both enteringand finally exiting gold(and silver) as investmentsare laid out in the full

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report.

The punchline is this: Goldand silver are not (yet) inbubble territory, and largegains remain, especially ifmonetary, fiscal, andfundamental supply-and-demand trends remain inplay.

Introduction

In 2001, as the painful endof the long stock bullmarket finally seeped intomy consciousness, I beganto grow quite concernedabout my traditional stockand bond holdings. Otherthan a house with 27 yearsleft on a 30 year mortgage,these holdings represented100% of my investingportfolio. So I dug into theeconomic data to see whatI could discover. What Ifound shocked me. It's allin the Crash Course inboth video and book form,so I won't go into that datahere.

By 2002, I had investigatedenough about ourmonetary, economic, andpolitical systems that Idecided that holding goldand silver would be a verygood idea, poured 50% ofmy liquid net worth intoprecious metals, and satback and watched.

Since then, my appreciationfor and understanding ofthe role of gold as amonetary asset and silveras an indispensibleindustrial metal havedeepened considerably.

Investing in gold and silveris still a good idea. Here'swhy.

Why own gold and silver?

The reasons to hold goldand silver, and I meanphysical gold and silver,are pretty straightforward.So let’s begin with theprimary reasons to owngold.

1. To protect againstmonetaryrecklessness

2. As insulation againstfiscal foolishness

3. As insurance againstthe possibility of amajor calamity in thebanking/financialsystem

4. For the embedded'option value' thatwill pay out if andwhen gold isremonetized

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By ‘monetaryrecklessness,’ I mean thecreation of money out ofthin air and the applicationof more liquidity than theproductive economyactually needs. The centralbanks of the world havebeen doing this fordecades, not just since theonset of the great financialcrisis. In gold terms, thesupply of above-groundgold is growing at roughly3% per year, while moneysupply has been growing atnearly three times thatyearly rate since 1980.

Now this is admittedly anunfair view, because theeconomy has beengrowing, too, but moneyand credit growth havehandily outpaced even theupwardly distorted GDPmeasurements by a widemargin. As the economystagnates under this too-large debt load while thecredit system continues tooperate as if perpetualexpansion were possible,look for all the resultingextra dollars to show up inprices of goods andservices.

Real interest rates aredeeply negative (meaningthat the rate of inflation ishigher than Treasury bondyields). This is a forced,manipulated outcomecourtesy of central banksthat are buying bonds withthin-air money.Historically, periods ofnegative real interest ratesare nearly alwaysassociated with outsizedreturns for commodities,especially precious metals.If and when real interestrates turn positive, I willreconsider my holdings ingold and silver, but notuntil then. That is as closeto an absolute requirement



as I have in this business.

Monetary policies acrossthe developed worldremain as accommodatingas they’ve ever been. EvenGreenspan's 1% blow-outspecial in 2003 was not assteeply negative in realterms as what Bernankehas recently engineered.But it is the highlyaggressive and ‘alternative’use of the Federal Reservebalance sheet to prop upinsolvent banks and to sopup extra Treasury debt thatreally has me worried.There seems to be no wayto end these ever-expanding programs, andthey seem to have becomea permanent feature of theeconomic and financiallandscape. In Europe, theequivalent would be thesovereign debt now foundon the European CentralBank (ECB) balance sheet.

Federal deficits areseemingly out of controland are now stuck in the -$1.5 trillion range. Massivedeficit spending has alwaysbeen inflationary, andinflation is usuallygold/silver friendly.Although not always, mindyou, as the correlation isnot strong, especiallyduring mild inflation (lessthan 5%). Note, forexample, that gold fellfrom its high in 1980 allthe way to its low in 1998,an 18 year period withplenty of mild inflationalong the way. Sooner orlater I expect extraordinarybudget deficits to translateinto extraordinary inflation.

Reason #3, insuranceagainst a major calamityin the banking system, isan important part of myrationale for holding gold.I’m not referring to “papergold” either, which includesthe various tradablevehicles (like the "GLD"ETF) that you can buy likestocks through yourbroker. I’m talking aboutphysical gold and silverbecause of their unusualability to sit outside of thebanking/monetary systemand act as monetary assets.

Literally everything elsefinancial, including yourpaper US money, issimultaneously somebodyelse’s liability, but gold andsilver are not. They aresimply, boringly, justassets. This is a highlydesirable characteristic thatis not easily replicated.



Should the banking systemsuffer a systemicbreakdown, to which Iascribe a reasonably highprobability of greater than1-in-4 over the next 5years, I expect banks toclose for some period oftime. Whether it's 2 weeksor 6 months isunimportant; no matter thelength of time, I'd prefer tobe holding gold than bankdeposits.

During a banking holiday,your money will be frozenand left just sitting there,even as everything pricedin money (especiallyimported items) rocket upin price. By the time yourmoney is again available toyou, you may find that alarge portion of it has beenlooted by the effects of acollapsing currency. Howdo you avoid this? Easy;keep some ‘money’ out ofthe system to spend duringan emergency. I alwaysadvocate three months ofliving expenses in cash,but you owe it to yourselfto have gold and silver inyour possession as well.

The final reason forholding gold, because itmay be remonetized, isactually a very big draw forme. While the probability ofthis coming to pass may below, the rewards would bevery high.

Here are some numbers: The total amount of'official gold,' or that heldby central banks aroundthe world, is 30,684tonnes, or 987 million troyounces (MOz). In 2008 thetotal amount of moneystock in the world wasroughly $60 trillion.

If the world wanted 100%gold backing of all existingmoney, then the impliedprice for an ounce of goldis ($60T/987MOz) =$60,790 per troy ounce.

Clearly that's a sillynumber (or is it?), but evena 10% partial backing ofmoney yields $6,000 perounce. The point here isnot to bandy aboutoutlandish numbers, butmerely to point out thatunless a great deal of theworld's money stock isdestroyed somehow, or alot more official gold isbought from the marketand placed into officialhands, backing even afraction of the world'smoney supply by gold willresult in a far higher



number than today's~$1,500/Oz.

The Difference Between Silverand Gold

Often people ask me if Ihold goldandsilver as if itwere one word. I do ownboth, but for almostentirely different reasons.Gold, to me, is a monetarysubstance. It has money-like qualities and it hasbeen used as money bydiverse cultures throughouthistory. I expect that tocontinue.

There is a chance, growingby the week, that gold willbe remonetized on theinternational stage due to afailure of the current all-fiat regime. If or when thefiat regime fails, there willhave to be some form ofreplacement, and the onlyone that we know worksfor sure is a gold standard.Therefore, a renewed goldstandard has the bestchance of being the ‘new’system selected during thenext bout of difficulties.

Silver is an industrial metalwith a host of enviable andirreplaceable attributes. Itis the most conductivemetal known, and thereforeit is widely used in theelectronics industry. It isused to plate criticalbearings in jet engines andas an antimicrobial additiveto everything from wallpaints to clothing fibers. Innearly all of these uses,plus a thousand others, itis used in such vanishinglysmall quantities that it ishardly worth recovering atthe end of the productlifecycle -- and often isn’t.

Because of this dispersioneffect, above-ground silveris actually at something ofa historical low point. Whensilver was used primarilyfor monetary andornamentation purposes,the amount of above-ground, refined silver grewwith every passing year.After industrial usescropped up, that trendreversed, and today thereare perhaps 1 billionounces above ground,when in 1980 there wereroughly 4 billion ounces.

Because of thisconsumption dynamic, it'sentirely possible that overthe next twenty years notone single net new ounceof above ground silver willbe added to inventories,while in contrast, a few



billion ounces of gold willbe added.

I hold gold as a monetarymetal. I own silver becauseof its residual monetaryqualities, but moreimportantly because Ibelieve it will continue tobe in demand for industrialuses for a very long time,and it will become a scarceand rare item.

Scarcity

If we cast our mindsforward ten years and thinkabout a world with oilcosting 2x to maybe 8xmore than today, we haveto ask how many of ourcurrently-operating goldand silver mines, or thebase metal mines fromwhich gold and silver areby-products, will still be inoperation, and how manywill close because theirenergy costs will haveexceeded their marginaleconomic benefits.

After just 100 years ofmodern, machine-poweredmining, nearly all of thegood ores are gone. By thetime you are readingstories like this next one,you should be thinking,'Why are they going to allthat trouble unless that'sthe best option left?'

South African Miners DigDeeper to Extend GoldVeins' Life Spans

Feb 17, 2011JOHANNESBURG—With few newgold strikesaround theworld that canbe turned intoprofitablemines, SouthAfrica's goldminers areplanning to digdeeper thanever before toget access torich veins.The plans raisequestionsabout how tosafely andprofitably mineseveral milesbelow thesurface.Success wouldmeanovercomingproblems suchas possiblerock falls,flooding andventilationchallenges and

http://online.wsj.com/article/SB10001424052748703584804576144062424424614.html?mod=WSJEurope_hpp_LEFTTopStories



The above article is just adifferent version of thestory that led to theDeepwater Horizonincident. By the timeexceptional engineeringchallenges are beingpondered to scrape a littledeeper, it tells the alertobserver everything theyneed to know about wherewe are in the depletioncycle. We are closer to theend than the beginning.

We are at the point inhistory where we can easilylook forward and make thecase for declining percapita production ofnumerous importantelements just on the basisof constantly falling orepurities and gold and silverfit into that category ratherhandily. Depletion ofreserves is a very realdynamic and it is not onethat future generations willhave to worry about; it isone with which people alivetoday will have to come toterms.

The issue of Peak Oil onlyexacerbates the reserve

designingtechnology toovercome thethreats.Mark Cutifani,chief executiveofficer ofAngloGoldAshanti Ltd.,has a picture inhis office ofhimself at oneof the deepestpoints inAfrica, roughly4,000 meters,or 13,200 feet,down in thecompany'sMponeng minesouth ofJohannesburg.Mr. Cutifanisees no reasonwhy Mponeng,already thedeepest miningcomplex in theworld,shouldn't intime operatean additional3,000-plusfeet deeper."The mostcriticalchallenges forall of us inSouth Africaare depths anddepletion ofreserves," Mr.Cutifani said inan interview.



depletion dynamic byadding steadily risingenergy input costs to mix.Should oil get to the pointof actual scarcity where wehave to ration bysomething other thanprice, then we must askwhere operating marginalmines fits into the prioritylist. Not very high would bemy guess.

Supply and Demand- Gold

Not surprisingly, the highprices for gold and silverhave stimulated quite a bitof exploration and newmine production. With overdecade of steadily risingprices, there has beenample time to bring on newproduction. Which leads toa real surprise: in the caseof gold, relatively littleincremental mineproduction has occurred.

The analytical firmStandard Chartered hascalculated a rathersubdued 3.6% goldproduction growth over thenext five years:

Of course none of this is

Most marketcommentaryon goldcentres on thedirection of USdollarmovements orinflation/deflationissues – we gobeyond this toexamine futuremine supply,which weregard as anequallyimportantdriver. In ourstudy of 375global goldmines andprojects, wenote that after10 years of abull market,the goldminingindustry hasdone little tobring on newsupply. Ourbase-casescenario putsgoldproductiongrowth at only3.6%CAGR over thenext five years.(Source -StandardChartered)

http://www.scribd.com/doc/57833659/In-Gold-We-Trust-061411



actually surprising toanyone who understandswhere we are in thedepletion cycle but it'sprobably quite a shock tomany an economist. Thequoted report goes on tocalculate that existingprojects just coming on-line need an average goldprice of $1,400 to justifythe capital costs whilegreenfield, or brand-new,projects require a goldprice of $2,000 an ounce.

This enormous increase inrequired gold prices tojustify the investment isprecisely the same dynamicthat we are seeing withevery other depletingresource: energy costs runsmack-dab into decliningore yields to produce anexponential increase inoperating costs. And it'snot as simple as the fuelthat goes into theCaterpillarD-9s; it's theembodied energy in thesteel and all the otherenergy-intensive miningcomponents all along theentire supply chain.

Just as is the case with oilshales that always seem toneed an oil price $10higher than whatever itcurrently is to break even,the law of recedinghorizons (where risinginput costs constantly placea resource just out ofeconomic reach) willprevent many aninteresting, but dilute, orebody from beingdeveloped. Given decliningnet energy, that's foreveras far as I am concerned.

The punchline of theStandard Chartered goldreport is that they think$5,000 gold is a realistictarget and go on to notethe most important shift ingold accumulation of thepast 30 years:

The limitednew supplycomes at atime whencentral bankshave turnedfrom being netsellers tosignificant netbuyers ofgold. Theresult, in ourview, will be agold market indeficit, evenassuming flatgrowth indemand.With the



The emergence of centralbanks being net acquirersof gold is actually a prettybig deal. Over the past fewdecades central banks havebeen actively reducing theirgold holdings preferringpaper assets over the'barbarous relic.' Famously,Canada and Switzerlandvastly reduced their officialgold holdings during thisperiod, a decision thatmany citizens of thosecountries have openly andactively questioned.

The World Gold Council outof the UK is the primaryfirm that aggregates andreports on gold supply anddemand statistics. Here'sthe most recent data onofficial (i.e. central bank)gold holdings:

(Source)

Note that the 2009 data islowered by slightly morethan 450 tonnes in thischart to remove the one-time announcement byChina that it had secretlyacquired 454 tonnes overthe prior six years, so thisdata may differ from otherrepresentations you mightsee. I thought it best toremove that blip from thedata. Also the data for2011 is for the first fourmonths only, so we mightexpect 2011 to be arecord-setter if the currentpace continues.

Overall, world supply and

supply-demandbalance so outof kilter, wesee the goldpricepotentiallygoing toUS$5,000/oz.(Source)

http://www.gold.org/government_affairs/gold_reserves/

http://www.scribd.com/doc/57833659/In-Gold-We-Trust-061411



demand are a bit out ofalignment right now withsupply increasing by 2%last year and non-officialdemand increasing by 10%:

The summary of thefundamental analysis isthat with mine productionseriously lagging the priceincreases for gold, coupledto increased central bankand investment demand,we have set the stage forsome hefty prices increasesirrespective of any fiscal ormonetary shenanigans.

However, once we putthose back into the mix, Iforecast a quite volatile butupwardly sloping price forgold over the comingyears. Possibly a very steepupward slope at points.

Supply and Demand- Silver

Silver demand is growingby double-digitpercentages, being ledprimarily by industrial usesand investment demand.The Silver Institute does afine job of tracking andreporting on these matters.

First demand:

Totalfabricationdemand grewby 12.8percent to a10-year highof 878.8 Mozin 2010; thissurge was ledby theindustrialdemand



Now Supply:

category. Lastyear, silver’suse inindustrialapplicationsgrew by 20.7percent to487.4 Moz,nearlyrecovering allthe recession-induced lossesin 2009, and isnow seeingpronouncedadvances in2011.Jewelry posteda gain of 5.1percent, thefirstsubstantial risesince 2003,primarily dueto strong GDPgains inemergingmarkets andtheindustrializedworld’simprovingeconomicpicture.Photographyfell by 6.6 Moz,realizing itssmallest loss innine years, asmedicalcentersdeferredconversion todigitalsystems.Silverwaredemand fell to50.3 Moz from58.2 Moz in2009,essentially dueto lowerdemand inIndia.(Source)

SilverProduction2010Silver mineproductionrose by 2.5percent to735.9 Moz in2010 aided bynew projects inMexico andArgentina.Gains camefrom primarysilver minesand as a by-product oflead/zincmining activity,whereas silvervolumes

http://www.silverinstitute.org/supply_demand.php



Again, we are comparingdouble digit demandincreses against low singledigit supply increases. After a decade of ratherdramatic price increasesfor silver, the alertobserver should be askingexactly why this is thecase.

In table form, we canclearly see that the silverbalance for the worldrequires both dishoardingfrom governmentstockpiles and from therecycling of scrap silver.That is, shortfalls frommining have to be made upfrom above ground stocks:

produced as aby-product ofgold fell 4percent lastyear.Mexicoeclipsed Peruas the world’slargest silverproducingcountry in2010, and Peruis followed byChina,Australia andChile. Globalprimary silversupplyrecorded a 5percentincrease toaccount for 30percent of totalmineproduction in2010.(Source)

http://www.silverinstitute.org/production.php



(Source)

There's only so long thatsuch an imbalance cancontinue before theshortfalls require muchhigher prices to cool offdemand.

One of the reasons that Ioriginally invested quiteheavily in silver is preciselybecause I came to theconclusion that the pricewas far too low, artificiallyso, and that it wouldtherefore be a greatinvestment. So far so good.

Given the abovefundamentals, I project thatprices for the preciousmetals will be manymultiples higher - intoday's dollar terms - bythe end of the decade.

Part II of this report: Howto Play The Greatest Gold &Silver Bull Market Of OurLifetime delves into thespecifics of how much ofyour net worth to investand in what forms, whatprice targets gold andsilver are likely to reach,and what indicators to lookfor that will indicate it'stime to sell out of yourprecious metalinvestments.

Click here to access Part II(free executive summary,enrollment required for fullaccess)

http://www.silverinstitute.org/supply_demand.php

http://www.chrismartenson.com/martensonreport/how-play-greatest-gold-silver-bull-market-our-lifetime?utm_source=zerohedge&utm_medium=syndication&utm_content=link1&utm_campaign=59850

http://www.chrismartenson.com/martensonreport/how-play-greatest-gold-silver-bull-market-our-lifetime?utm_source=zerohedge&utm_medium=syndication&utm_content=link2&utm_campaign=59850



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by Flore on Wed,06/29/2011 -

10:20#1411685Why should you own silverif you can own gold.. It's amystery to me why peoplewant to invest in thingspeople eat with...

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by TomJoad on Wed,06/29/2011 -

10:25#1411698To answer yourquestion:

http://www.youtube.com/watch?v=7ffj8SHrbk0

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by 66Sexyon Wed,

06/29/2011 -11:20#1411861Silver isconsolidatin'.. fixin'to spike.

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by

HungrySeagullon Wed,06/29/2011 -13:59#1412640

I canaccumulatesilver easierand fasterthan Gold atmy humbleincome whenthought of interms ofounces.

At some pointI am making abet that Goldis weighty andmassive. Thusharder to takeoff from 1500to 5K By then Ishould realizegains in Silverand use someof it to oneounce of goldevery 16 ofsilver.

We will worryabout 60Klater. Much

http://www.addtoany.com/share_save#url=http%3A%2F%2Fwww.zerohedge.com%2Farticle%2Fguest-post-screaming-fundamentals-owning-gold-and-silver&title=Guest%20Post%3A%20The%20Screaming%20Fundamentals%20For%20Owning%20Gold%20And%20Silver&description=

http://www.zerohedge.com/user/login?destination=node/418124%2523comment-form

http://www.zerohedge.com/user/register?destination=node/418124%2523comment-form

http://www.zerohedge.com/print/418124

http://www.zerohedge.com/printmail/418124

http://www.zerohedge.com/article/guest-post-screaming-fundamentals-owning-gold-and-silver#comment-1411685




http://www.youtube.com/watch?v=7ffj8SHrbk0









later.

Little by littlewins the race.No hurry onthe Gold justyet andaccumulatingsilver when wecan. It can alsobe used tomake bulletsin a very badpinch.

The Market isPeople whowant profitsTODAY! Evenin one hour orless. Nothingelse isacceptable.Why do youthink there issuch a warwith hardwareand fast fiberoptic toliterally suckthe decimalamounts sosmall right outof the markets.There was amovie aboutthat once....the one withthe big glassesworkermumbing...that is myStapler... Mystapler...someday Iburn thisplace....

While the Bossflits from oneflower to thenext quickly(Pun intended)the slow oneplans carefullyin span ofmonths toyears ahead.Even if he wasstuck in theSubbasementlevelsurrounded byStorage.

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by JW n FLon Wed,

06/29/2011 -11:22#1411868http://goo.gl/FnxBZ Treasury Direct$14 Trillion Debt

http://goo.gl/TMl74 $15 Trillion inLoans




http://goo.gl/FnxBZ

http://goo.gl/TMl74



http://goo.gl/EXzal ='s $29T

http://research.stlouisfed.org/fred2/series/BASE3 Years 300% MoreDollars Printed Outof Thin Air!

in 3 years.. NOT!including TARP /TALF / FED SWAPWindows.. and / orany other.. thanwhat is sourcedand sited above..

$18 Trillion in 3years! $18TRILLION! on topof the other $14Trillion up top!!

this is why youshould be intangilbles! likesilver & gold.


by JWn FL on

Wed,06/29/2011 -11:31#1411938

http://research.stlouisfed.org/fred2/series/BASE

and please letsNOT! forgetthat since Jan.1 of this year(a month agoso its is alarger numbernow) that theFED has addedanother 20% tothe MonetaryBase.

Plainly, sinceJanuary 1styour money isworth 20%Less!

that is just thisyear so far,this number isNOT! inclusiveof thenumbers since2007. At somepoint peoplewill demand"X" amount ofpaper for "X"amount ofgoods inrelation to thetrue value ofthe paperbeing offered.

Login orregister to

http://goo.gl/EXzal










post comments

by

SamuelMaverickon Wed,06/29/2011- 21:07#1414146

WhoeverjunkedJW's postis an idiot.

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by

XenoFrog on Wed,06/29/2011 -16:23#1413246

It'll be good tohave some realmoney aroundwhen theydecide toofficiallydevalue theFRN for theNEW FRN*

*PatentPending


by Troy Ounce on Wed,06/29/2011 -

10:32#1411710

Pffff:www.ediblegold.com


by Re-Discovery on Wed,

06/29/2011 - 10:36#1411721Gold Teeth? Everheard of Flavor Flav?


by CluelessEconomist on Wed,

06/29/2011 - 10:33#1411724I advise NOT owninggold and silver.

It makes much moreKeynesian sense toown fiat paper money.

As I lectured in myNobel Prize speach thefact that with theprinting pressingrunning full time, it willbe much more easy toaccumulate newlyprinted federal reservenotes.

Gold and silver arearchaic elements -avoid them at all cost.








http://www.ediblegold.com/










by Coneof

Uncertainty on Wed,06/29/2011 -10:54#1411760

Jesus christ youfucktards junkingthis most excellentpost are idiots.

CAN'T YOU SEETHIS IS SARCASIMYOU FUCKINGDUMB TWATS.

I hereby unjunkyou CluelessEconomist andbanish all fuckingdickbeaters to aweek long PaulKrugman economicseminar.


byPladizow on Wed,

06/29/2011 -10:58#1411773

To: CluelessEconomist(Krugman?)

Agreed - Icontinue to onlyaccumulateprocessed cottonpulp.

Why would anyonethink gold or silverwith a finite supplywould ever bemore valuable thengovernmentproduced linen orbinary code that isinfinite?

Silly gold bugs!


by

Confuchius on Wed,06/29/2011 -12:35#1412317

"Cluelesseconomist"

An oxymoron


by

mayhem_korneron Wed,06/29/2011- 14:26#1412797

I think youmeant"redundancy."


















by

mayhem_korneron Wed,06/29/2011- 14:32#1412803

dp


by Greenyon Wed,

06/29/2011 -10:58#1411785Grow andaccumulate weed!:)))


byMsCreant on Wed,

06/29/2011 -11:09#1411820

I want ugly,retarded,Keynesian babieswith you, and thenI want to go brokeand not be able tofeed them.

I want your ugly, Iwant your disease,

I want youreverything as longas it's free...

I want your horror,I want your design,

'Cause your acriminal as long asyour mine...

http://www.directlyrics.com/lady-gaga-bad-romance-lyrics.html


by

MsCreant on Wed,06/29/2011 -12:07#1412161

For the junkand run types,if you imagineLady Gaga in apointy brasinging thissong, "Badromance" tothis guy, itreally is quitefunny andfitting. I don'tthink he wouldget it, even asit washappening tohim. Do youget it, even asit is happeningto you?

Fiat is the badromance. Onceyou know that,you're a free








http://www.directlyrics.com/lady-gaga-bad-romance-lyrics.html






bitch baby.


by

nuinut on Wed,06/29/2011- 15:22#1413021

Silver'sultimateimpotencewilldisappointtoo. Mustbe thesteroids.


by

downrodeoon Wed,06/29/2011- 16:13#1413197

ROFLMAO!

I bustedoutlaughingwhen I sawthat. Welldone!


by Tenma13on Wed,06/29/2011

- 12:44#1412386lol good one :P


by Al

Gorerhythm on Wed,06/29/2011 -19:36#1413881

Can the silverinstitute pleaseadvise on how yearafter year,magically, silver isthe onlycommodity wheredemand equalssupply, right downto the very ounce.It's as if the minersand recyclers knowexactly how muchto drag out of theground or putthrough thefurnace, rightdown to the lastinvestor's demand.Freakishly wellmanaged. Putthese guys incharge of treasury.


















by SheepDog-Oneon Wed,06/29/2011 -

10:21#1411688What? Well this willcertainly be a shock tobigmouth PM mockers suchas 6 String, Robo, andGreeny.


by redpill on Wed,06/29/2011 -

11:00#1411790The problem is thatdespite the longer termfundamentals beingsolid for PMs, it's hardto get a lot of folks tolisten when there arehuge price swings,paper marketmanipulation, marginhikes, all of whichcause short termlosses (in terms of fiatUSD, albeit). It's arough rollercoasterride.


by

Temporalist on Wed,06/29/2011 -11:15#1411831

RP it's mainlybecause their"financial advisors"make no cheddaron advising PM asinsurance. Peopleare convinced thatany interest they"earn" on theirsavings is betterthan none even ifit's actuallynegative returrnsthat they don'trealize. Even withdividend payingstocks they'vebeen sold on thepremise thatgetting a fewpercentage pointsafter inflation isideal withoutconsidering thecounterparty riskand volatility that astock has and thatthe initialinvestment canplummet or evendisappear.

The financialmedia, Wall St. andcentral banks havehad decades topromote theirproducts andpropagandize; it'sgoing to be a long,tough march uphillto change popular










opinion.


by

redpill on Wed,06/29/2011 -11:19#1411870

I hear you, Ican't even getmy companyto offer amoney marketoption in our401k plan,much lessanything as"extreme" aspreciousmetalsexposure.

Our 401kadministratorinsists that"it's better tooffer feweroptions sopeople don'tbecomeoverwhelmed." And of coursethe choices area bunch ofcrappy mutualfunds. What abunch of self-servingbullshit.


by

HungrySeagullon Wed,06/29/2011- 13:58#1412672

Not tomentionthere isjust one401Kadministratormaking 54thousandper yearmanaginga fewthousandboring401kaccountsthat aregenerallyfed bycomputerdeductionsoff thewillingsheepbaa'ing asthey slaveaway inthe texilefactory.












byMsCreant on Wed,

06/29/2011 -11:15#1411847

Not so rough ifyou just buy andhold. I admit I gotnervous andstudied the 2007,8, and 9 chartscarefully this timeand asked "howlow can it go?"Knowing the dipalways happens atoptions expirationand summer keptme firmly on thebull.


by

redpill on Wed,06/29/2011 -11:42#1412041

Oh I did quitesome timeago, so I'm notworried. Itwasn't thatlong ago that Iwould havenever dreamedaboutcomplainingabout silver inthe $30s!


by

Ranger4564 on Wed,06/29/2011 -12:12#1412201

And when there isthe imminentthreat of thecollapse of all ofhuman civilizationon a global level. Iown G / ; almostmy entire portfoliois in G/ S but I toowonder what thehell is it good for,if the financiers aregoing to confiscateall real assets andenslave us infeudalism. I donot have the $1millminimum requiredto be considered ahuman being perthe Dodd Frank bill/ FXdeterminations. I'llbe a peasant,apparently. :)


by

LongBalls on Wed,Hang on to it.












06/29/2011 -13:49#1412622

Hang on to it.When we go tothe cashlesssociety PM'swill be theblack-marketcurrency. Lookat Gaddhafi. Ifit were not forhis goldreserves hewould alreadybe dead.


by Greeny on Wed,06/29/2011 -

11:06#1411809Silver trades with theMarket and Economy.So, if you want 60$/ozsilver you better cheerwhatRobo has to say. DOW15000 = Silver $65/ozand gold$1700 or so. I know,"Physical" blahh-blahh,but it'sstill priced in $USD,that's how we know,how muchis actually worth.


by

iLoveMisesToPieceson Wed,06/29/2011 -12:30#1412291

That is until soundmoney makes itsreturn (and it will). All it takes is onecurrency to be fullybacked by goldand Gresham's lawwill take over. Theprice will explodeon supply anddemand issues. Right now, goldand perservingpurchasing poweras fiat currenicesdepreciate.


by RobotTrader on Wed,06/29/2011 -

10:28#1411694Actually, with deep cyclicalstocks like AKS and Xexploding higher today,gold has an excellentchance of reaching $1,650if the stock marketcontinues to advance andstart pricing in a globaleconomic boom starting in2012.
















by SheepDog-One on Wed,

06/29/2011 - 10:28#1411705Go swim in yourworthless paperMomofader, we allknow you dont actuallyown a bit of it anyway.


by oddjob on Wed,06/29/2011 -

10:29#1411708Did Gold ever gobankrupt like X?


by

SheepDog-One on Wed,06/29/2011 -10:41#1411738

Robo now lovesKKD at $10, ofcourse he neverhad anything to dowith it at its $70peak though. Justanother example ofRobos cherrypicking to pimp hispathetic ride.


by 6 String on Wed,06/29/2011 -

10:40#1411735LOL, Robo. You'reright. Gold might havean awesome 10% +move. Chris annoys mewith eentire statementsthat are hypocritical:

Various factors lead meto conclude that goldis one investment thatyou can park for thenext ten or twentyyears, confident that itwill perform well. Mytiming and logic forboth entering andfinally exiting gold(and silver) asinvestments are laidout in the full report.The punchline is this:Gold and silver are not(yet) in bubbleterritory, and largegains remain,especially if monetary,fiscal, and fundamentalsupply-and-demandtrends remain in play.

Anyone rememberwhen Fuk happenedand he sent out hisALERT THIS IS ITmessage? ROFLMAO.BTW, TWJCTR on Goldand Silver when theydo specular, which they













will. WHich is whyowning the R2K is theONLY way to go for thenext 20 years. BTW, Ilove 10-20 year calls.How can one go wrongwith analysis like thisis a nation withattention deficitsyndrome?


by

SheepDog-One on Wed,06/29/2011 -10:46#1411741

Who the hell is'Chris'? Doesntmatter what kindof a 'move' PM'smake. Idiotsthinking PM's arefordaytrading....whatwhat a bunch oftotal morons.

6 String nowpimping 20 yearcalls? WTF OMFGAHHH HA HAHAAAAA HA HAHAAAAAA!!!!


by

TheDriver on Wed,06/29/2011 -11:16#1411834

I beleive he'sreferring toChrisMartenson, theauthor of thisarticle, and his"alert" here:

http://www.chrismartenson.com/blog/alert-nuclear-economic-meltdown-in-pr...


byr101958 on Wed,

06/29/2011 -11:07#1411802

I don't recall himever saying 'this isit'. He said it isbest to prepareand if you haven'tstarted to preparethen now is thetime to start (i.e.food storage,water, etc). In myopinion, the CrashCourse is the best,most accuratepresentation outthere thataddresses our







http://www.chrismartenson.com/blog/alert-nuclear-economic-meltdown-in-progress






current situation.


byRaymondReason

on Wed,06/29/2011 -11:51#1412074

"Anyone rememberwhen Fukhappened and hesent out his ALERTTHIS IS ITmessage?ROFLMAO. "

@ six string: Idon't think theJapanese arerolling on the floorlaughing today. Probably notmuch roflmao inany of the PacificAsian countries.


by akak on Wed,

06/29/2011 -18:00#1413543Why is it that whenI even try to accessthe profile of thisposter "6 String", Ireceive themessage "AccessDenied"? I'venever seen thishappen beforewhile trying tolook at anyposter's profilehere.

Needless to say,though, I strongsuspect that "6String" has been amember for awhole 6 or 8 days,and is merely thelatest incarnationof Methman,Dangertroll, orWilliamTheBastard/RedNeckRepugnicant/TexasGunslingeret al.


byVladTepid

on Wed,06/29/2011 -20:27#1414047

Could be a'Tyler'proxy/devil'sadvocate andthey justforgot to flipthe accessallowedswitch...


by Crack-up














Boom on Wed,

06/29/2011 - 11:25#1411882There'll be a "boom" in2012, but I doubt it'llbe economic.


by

lieutenantjohnchard on Wed, 06/29/2011- 11:25#1411914

whereas yesterday youmocked jim sinclairand his $1650 target.

robottrader: theultimate dumb moneyindicator.


by Escapeclawson Wed,06/29/2011 -

12:01#1412132Is AKS the companythat makes Depends? Xmakes analsuppositories?


by Mercury on Wed,06/29/2011 -

10:25#1411696Now I don't know but Ibeen told it's hard to run with theweight of goldOther hand I heard it saidit's just as hard with theweight of lead


by Bay of Pigs on Wed,06/29/2011 -

10:28#1411709"Fundamentals forsilver are very weak. Weexpect silver to continue itsdownward move".

Suki Cooper, BarclaysCapital, 6/29/11

She just this on BNN. I shityou not....

BTW, nice post byMartenson. Factual and tothe point.


by oddjob on Wed,06/29/2011 -

10:32#1411719The amount of bankerpeter Suki Cooper hassucked can bemeasured in miles. Sheis a morally brokenhuman being.

Login or register to





















post comments


06/29/2011 - 10:33#1411728Suki suki banksta longtime...


by tmosley on Wed,06/29/2011 -

11:03#1411786It's true, actually. Thefundamentals for thepaper silver market areso abysmally bad thatit is quite likely theywill hit zero in theshort to medium term. Literally endlesssupply, and not a lot ofdemand.

Physical silver, ofcourse, is a differentstory. This is likely tobecome quite clearover the comingmonth.


by PaperBear on Wed,06/29/2011 -

10:33#1411725"The final reason forholding gold, because itmay be remonetized." ?

Screw having governmentsremonetize anything,governments should allowthe free market to havecompeting currencies. Thengood money wins over badmoney - Gresham’s Law.



06/29/2011 - 10:39#1411732Yes but too bad theyvetotaly taken control toa few central planners.All your lives arebelong to us.


by baby_BLYTHE on Wed,06/29/2011 -

10:37#1411739Has anyone on ZH actuallysold out of their physicalPMs (no ETFs)?


by Deovindice on Wed,

06/29/2011 - 10:38


















06/29/2011 - 10:38#1411742Would they admit it ifthey did?


by JW n FLon Wed,

06/29/2011 -12:00#1412147there a few people(smart people)here that have soldout of some or "X"amount of theirholdings and as faras I know havebeen buying backin or have boughtback in already.

But understand..some people herehave theirholdings, a certainamount that theyare comfortablewith that nevermoves (EVER! forany reason) and acertain amountthat they trade /sell to grow theirstash.. for lack of abetter word.

Lots! of peoplehere trade in andout to grow theirpile of treasure!

I just buy.. but Ihave income thatmust be protectedfor the long haul..think goingforwardgenerations.. somoving in and outon 10% - 20%swings doesntmake me want topay for the backoffice plus manageit all and thenlisten to peoplebitch about betteruses of our timeand energy.. blabla bla! FamilyOffices dont worklike normal offices.

So! YES!! Sell somewhen its high andbuy some morewhen its low! ifthat works for youpersonally!

Please Profit andhave more andmore and more! itsgood for you!







as for the permabull salesmenhere.. ignore themand make you pilegrow any way youcan!

But! BUT!! makesure you alwayshave a stash thatyou never touch..that way no matterwhat happens! youwill always havethat stash.. youwould not want tobe caught all theway out! thatwould suck! havinga fist full of paperdollars instead of apile of gold whenthe price decides itwould like to be inline with themassive amount ofprinting that hasgone on?! Pleaseuse good commonsense!

Trading pile togrow your stashand the DO NOTTOUCH! pile forthe safety of youand your lovedones!


by slewiethe pi-rat on Wed,

06/29/2011 -12:07#1412178

that one guy,dangertroll orsomebody, postedthat he was off tothe coin dealer'sand the porschedealer's and cameback w/ no silverand still drivingthe '68 VW.



06/29/2011 - 10:40#1411746Fuck no Ive onlybought more!


by

DoChenRollingBearingon Wed,06/29/2011 -11:30#1411952

Same. I will neversell. I will give itaway at the righttime though.

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to post comments

by MomauguinJoe on Wed,

06/29/2011 - 10:46#1411750Not selling.


by

fredquimby on Wed,06/29/2011 -10:47#1411756

It's a "VeblenGood" dontchaknow....


by wombats on Wed,06/29/2011 -

10:53#1411758I haven't sold any PMs,but I did give someaway...

...new necklace to mywife. :)


by BeamMe UpScotty

on Wed,06/29/2011 -13:04#1412450

You wastedperfectly good PM'son a necklace? You shoulda justgave her a pearlnecklace!!


byMrBinkeyWhaton Wed,

06/29/2011 - 10:54#1411761NO WAY. DUH...I wantmore.


by Clay Hill on Wed,06/29/2011 -

10:55#1411769Still buying everypayday B_B.

Shut off the cable,renogotiated insuranceand telephone serviceto free up a little morecash.

Just waiting for G/S of20-1 to switch half togold.


by achmachat on Wed,06/29/2011 -





















10:55#1411777I never bought gold,except for the twoounces that I had frombefore...

But I kept buying silverfrom the beginning ofMarch this year, whenit was around 34 USDper troy ounce.

The stash has grown toaround 2500 troyounces now, and yes, itcost me more in Fiatcurrency than whatspot is at the moment,but it's stashed away,and I don't need it tobe "liquid" at themoment. So there'syour answer: there isno way I'd sell the"precious", mainlybecause it wasn'tsupposed to stayliquid.


by Pladizow on Wed,06/29/2011 -

11:01#1411794To: baby-BLYTHE

Your almost there -Buyers of physical willnot SELL their gold, butthey may TRADE it forsomething - a subtledifference.

You dont buy gold tomake money, you buygold because you havemoney!


by Deo vindice on Wed,06/29/2011 -

10:37#1411740The fundamentals have(always) been there. They're just morepronounced now thanbefore. And silver willundoubtedly outperformgold. I expect the ratio toget to the 20-to-1 mark.


by ebworthen on Wed,06/29/2011 -

10:40#1411745

Endless stream ofpropagandistic bullshitspewing from talking suitson CNBC = bullish for Goldand Silver.
















by r101958 on Wed,06/29/2011 -

11:22#1411886They have a firm graspof theobvious......sometimes.


by JW n FLon Wed,

06/29/2011 -12:01#1412152I am right all of thetime..... most ofthe time!


by

RockyRacoon on Wed,06/29/2011 -13:14#1412493

I thought I waswrong once. But it turnedout to beright. So, doesthat mean Iwas wrong inthinking I waswrong? Thatmeans I waswrong once,right?


by

akak on Wed,06/29/2011- 18:06#1413561

... error,error .....Normanpleasecoordinate......


byebworthenonWed,06/29/2011-20:54#1414115

"What'sthefrequencyKenneth!?!?"

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by monopoly on Wed,06/29/2011 -

10:45#1411749All aboard. This train willsoon be leaving the station.I have a long term ticket.






















by monopoly on Wed,06/29/2011 -

10:44#1411752Sold physical. I think not. Ibuy on every dip. Lately thedips have been few and farbetween. I mean gold is 3%off of its all time high. Sellphysical. That is funny.



06/29/2011 - 10:51#1411765Gold 3% off its all timehigh, yet the mockeryof golds 'patheticperformance' is also atan all time high. Justan insane world.


by Bay ofPigs on Wed,

06/29/2011 -11:29#1411920

Yes Dog,

Just like the silverbears(douchebags) whoscream "it's off30%!".

No, it's up 86%yoy....and in a 10year Bull Marketthatstarted before theIraq andAfghanistan Wars,a Housing Bubble,the GreatRecession, TARP,TBTF, QE, QEII, etc....

But I digress...


by


^--- Allcorrectobservationson thissubthread.

NONE of ourfinancialproblems havebeen solved.

NO ONE ofsignificancehas gone tojail.

OK, silver hasalways been arocky ride,more volatilethan gold.













But, in theend, it's goingto all be aboutthe ounces,held rightthere by eachof us.


by

JW n FL on Wed,06/29/2011- 12:07#1412181

UnlessGreecestopsthem(bankers)then weare notgoing tosee andend.. justmoreextending..

The Irishare alltalk.

TheSpanishdidNOTHING!afterweeks ofsit ins andholdinghands andnon-violentlyasking theBankers tostoprapingthem.. themore theSpanishcried themore theBankersseemed toenjoyrapingthem.

so! unlessGreecesteps upand makessome headway..America!the homeof the lazyandignorant..(anddivided..where wasthe middleincomepeoplewhen thepoor






wherebeingraped? nowhere andthe poorrememberthat shit.)will end updoingNOTHINGas well!

and evenif! Greecesteps up..Americahas beensuccessfullyfragmentedso I doubtthat theKochBrothersTea Partyis going tohelpAmericaright itselfor makethe top 1%payanythinglet alone afair shareor whatyou and Ipay.


by DaveyJones on Wed,06/29/2011 -

10:49#1411754these days, seems like allthe fundamentals arescreaming


by MrBinkeyWhat on Wed,06/29/2011 -

10:47#1411757Beans, Bullets, and Bullion.In that order.


byMrBinkeyWhaton Wed,

06/29/2011 - 10:56#1411768Hey junkster...I'll seeyou on the other side.I'll be well armed.


byXenoFrog on Wed,

06/29/2011 -11:23#1411869

You're more likelyto shoot yourself















#1411869than anyone tryingto steal yourbeans. :)


by

Crack-upBoom on Wed,06/29/2011 -11:26#1411927

Not true if youknow how toshoot.


byUrban

Redneck on Wed,06/29/2011 -11:41#1412012

It issignificantly morelikely that theaverage gunowning naturalperson will dieat some pointin their lifethan that theywillaccidentallyshootthemselves.


by

XenoFrog on Wed,06/29/2011- 11:44#1412056

Yes, it isvery likelythat wewill all dieat somepoint inour lives.:)


by JWn FL onWed,06/29/2011-12:14#1412194

Iwouldhaveyoucagedandbroughtforthtoentertainmewhile Iate..when Iwas inthemoodforyour
















mouth.

youbetterhopethelightsstayon..equalrightswill beone ofthefirstthingsthrownoutthefuckingwindow..orshouldI saythatequalrightswill beembraced..talklike amanandgettreatedlike aman..bendoverandbareit!

themoralis,Deathis arelease..notpunishment.

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byXenoFrogonWed,06/29/2011-16:18#1413202

You'dprobablygetkickedoutoftheIdahocompoundbyyourneo-nazifriendsiftheyfound






outyouwerekeepinganIsraeliJewessaround.

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bymalekonWed,06/29/2011-18:20#1413614

Don'tworryFrog,we'llshootthatbastardifhetriesto.

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by JW n FL on Wed, 06/29/2011 - 23:05#1414405

shoot me with what? your red ryder? or do you wanna shoot me with that lil thing your wife settled for?

i only ask becuase you come across as like you have a lil sugar in your tank.. nothing wrong with that.. but thats not how I get down.

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06/29/2011 - 10:57#1411770Damn right. Im glad tosee a few Zerohedgetypes around whohavent gone with theNecromongers for theirtransformation and reeducation to chantabout the 'R2K' all daylong.


by Sunshinen Lollipops on Wed,

06/29/2011 -12:01#1412151

Sigh . . . . anotheracronym todecipher. I googledR2K and turnedthis up:

R2K(ForeSkin















I'm speechless.


by

StychoKiller on Wed,06/29/2011 -22:11#1414313

R2K ==Russell 2000index.

LOL!


by

DoChenRollingBearingon Wed, 06/29/2011- 11:36#1411997

+, + and +

I did it in reverseorder, and have notfinished with thebeans.

But, I am working on it.


by DoctorGold on Wed,06/29/2011 -

10:51#1411766Buy as much as you can atthese prices, especiallysilver.


by Monedas on Wed,06/29/2011 -

10:53#1411772Yesterday was travel day ! Irenewed my three monthfree subscription to Siriusfor a whole year when theydropped the price to $6per month ! I listened toCNBC for over half anhour......never heard a wordabout PMs except for asponsor's commercial ?Monedas 2011 Cruisin' inmy black Kia Soul ! It lookslike a hearse for babys andfeti ?


NaturalRestorer2000)is themostuniqueandeffectiveforeskinrestorationproductavailableon themarkettoday.

















by AldoHux_IV on Wed,06/29/2011 -

10:59#1411776Owning physical is the onlyreal investment-- whenCrimex can manipulate thefutures market then youknow paper ain't worth adamn-- just need to getmy paper accounts up inorder to make the realinvestment.


by SheepDog-Oneon Wed,06/29/2011 -

11:00#1411781Meanwhile Frankenmarketsstumble alongdirectionless....DrFrankenben better hit himup with another sedagive orhe might plunge down thehill and mangle the village!


by Sean7k on Wed,06/29/2011 -

11:04#1411788The banksters can't makethe money they needwithout volatility. Themarket is being inundatedwith news from both sidesto create fear andapprehension. The constantchasing of potential returnsand profits by allparticipants could beuseful, if they weren't beingfrontrun.

Thus, you freely give yourwealth to the banksters inreturn for the chance tostep up and spin theroulette wheel.

Caught up in the games ofwall street, people fail tosee the ramifications ofpolicy and law beingcreated around them. Theyworry about income, butfail to protect their liberty.What value is there in$5,000 an ounce gold, ifyour are taxed on the profitor limited in your ability toexchange it?

Everything Chris says istrue and useful forplanning, but what good isit if you must then live ingreater and greatertyranny? I for one, wouldlove to see people putliberty first. Don'tmisunderstand me, theholding of gold and silverare a necessity, but so isthe ability to live free andunshackled by themachinations of the Elites.

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comments


06/29/2011 - 11:05#1411796Not me, thesedegenerate gamblerscan talk up theirworthless paper stocksand phony markets allthey like while Icontinue to stack goldand silver....they haventgone down for me atall, still weigh 1 ozeach.


byTemporalist on Wed,

06/29/2011 - 11:27#1411900Here is an article abouta law to remove thetax on PMs in the U.S.:

Lee: Gold, silvershould be treated likecurrency

"Utah Sen. Mike Leejoined with fellowRepublicans onTuesday to introducelegislation that wouldjettison federal capitalgains taxes for gold orsilver coins."

http://www.sltrib.com/sltrib/politics/52092675-90/lee-gold-silver-coins....

And

A First Step To SoundMoney

http://www.nysun.com/editorials/a-first-step-to-sound-money/87411/

Thanks to GATAwww.gata.org forsharing these links.


by slewiethe pi-rat on Wed,

06/29/2011 -11:39#1412020

thie is great! justlike in the USConstitution(assuming this isfor US coins)!!!

i wonder if thedems will object tothis sanity: Difi! Babs! this isgood! go w/ Mikeon this, ok? thesecoins are m-o-n-e-y, by l-a-w. there. maybe theywill understand. cali is a toughplace to roll,





http://www.sltrib.com/sltrib/politics/52092675-90/lee-gold-silver-coins.html.csp

http://www.nysun.com/editorials/a-first-step-to-sound-money/87411/

http://www.gata.org/






sometimez...


by


Ridding PMs offthe capital gainstax is clearly agreat goal. Hardto see it happeningvery soon though.

It likely WOULDhappen if the Rstake take the WhiteHouse and Senatenext year. That isactually the 12cents worth ofdifference betweenthe Rs and Ds Ihave mentionedbefore.

ThanksTemporalist (andGATA) for thenews!


by JJSF on Wed,06/29/2011 -

11:06#1411799Been adding $200k permonth to my stash since06.


by Vlad Tepidon Wed,06/29/2011 -

20:30#1414061So what do anonymousposters like you whohave $12 mil to dropon PMs do for a living? I'll either call BS orsuggest you take yourfinger off the '0'button...


by XenoFrog on Wed,06/29/2011 -

11:07#1411801Your authority is notrecognized while i'm in myfort consisting of silverbars.


by JJSF on Wed,06/29/2011 -

11:09#1411804double post





















by cpnscarlet on Wed,06/29/2011 -

11:04#1411805This is all well and good(been there, done that,have the green box), but Iwish Santa Jim wouldexplain why his 1650 Aupredictions - first for Jan11 and then for Jun 11 -have not come to pass.


by Sean7k on Wed,06/29/2011 -

11:11#1411824Because he was wrong.Why would anyonebase their investmentstrategy on themusings of another?People need to learnmonetary theory. Fromthere, it gets very easy.


by


Predicting thefuture is hard.

For me, predictingthe SHORT TERMfuture is very hard. I am usuallywrong. When I buygold, it is usually aBTFS(pike)!

I get the longerterm trends better.


bycpnscarleton Wed,

06/29/2011 -16:55#1413344

Becuase peopleclaim to be"experts" in certainareas. And have"seen it before".That's how most ofus marketourselves in anybusiness. So whenyou are deadwrong aboutsomething, agentleman tries toclearly explainwhat he did wrong.He does not ignoreit or talk around it.As aresearch/aerospace engineer,you have to makesure you canstomach humblepie once in awhile.
















by Janice on Wed,06/29/2011 -

11:17#1411811And, the number onereason for holdinggold.....drum roll please!!!!

The government cannoteasily control your goldenassets. For example, if youpiss off an IRS agent, theycan garnish your wages,place a lien on your house ,seize your bank accountand other financial,tangible and intangibleassets. And all from thecomfort and security oftheir high-rise offices. Ifyou don't pay your propertytaxes state income tax ornumerous state &local taxes, same thing. However, if you own a goldcoin or several coins, thethe IRS has to send in theSWAT team to beat downyour door and get yourassets. This becomes a PRnightmare and very costprohibitive to beat downthe doors of all thecitizens. With gold, if youhave an IRS problem, youtake a gold coin to thenearest coin dealer, tradefor cash and feed yourfamily. The government nolonger has the ability to"starve" you out.

And that, my dear friends,is priceless.


by r101958 on Wed,06/29/2011 -

11:24#1411903+1000



06/29/2011 - 11:29#1411919Yea just ask the ex-leaders on the MiddleEast what it's like to bechased down by thebanksters and learnfrom what theydid...carry your goldwith you.


by

DoChenRollingBearingon Wed, 06/29/2011- 11:51#1412067

+ $1500 today

+ $50,000 by 2013?













If they ever try aconfiscation where theyget to the point ofraiding people'shomes, that wouldSTOP after about 20 -50 cops / IRS thugswere shot dead.

EXCELLENT pointabout them not beingable to starve you out.


by JW n FLon Wed,

06/29/2011 -12:19#1412215I wonder ifsomeone too thetime to puttogether a chart..with the slowerrate of increase(the first 5 years ofgold moving) andtrend that lineforward.. what itwould be in 1, 3& 5.. and thenagain 5, 10 & 15..and then again 10,20 & 30..

then maybe thelast 5 years ofincrease velocity..for the same and amean of the two.. Iwonder what theactual speed is oftake off?

I know that nowmatter what theFED prints that ithas no effect onprices.. monetarybase is noteffecting the price,YET!.


by RaymondReason on Wed,

06/29/2011 - 12:08#1412166The IRS is presently ona witch-hunt. Andyou're a witch unlessyou can proveotherwise. My CPAsays he's never seenthem this aggressive,or this unorganized.They know their levers(liens and siezures),and pretty much startthe threats with thefirst letter.

The old strategy of"just pay them whatthey want, and makethem go away" isn'tworking anymore.









Because then you areput on the "patsy" list.

PM's are the onlydefense.


by

everycentometal on Wed,06/29/2011 -14:16#1412761

Tyranny alwaysuses the words'protection' and'security' to cometo and amalgamatepower. Ever heardof the Departmentof Homeland ....Security? There is astrategem behindthe stories youhear thathumiliatesAmericans whoabide by the lawand searches andseizes thingswithout warrant orcause. What is thatstratagem? Toevicerate yourrights... all of themin favor ofgovernment'security'. What isthe enemy of thisnew definition of'Governmentsecurity'? The USConstitution andthe Bill of Rights.That is what theyare going after.Little by little, bitby bit.(markwatson.com).

you have to domore than sitinside your goldand silver towers.become active inyour community,try to make adifference. unlessyou are a part ofthe inside they willcome for what youhave in ways thatyou cannotimagine.


byVladTepid

on Wed,06/29/2011 -20:39#1414073

This is how Iview'becomingactive in mycommunity:'

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

I'll bet every




http://www.freedomsphoenix.com/Article/060023-2009-10-19-4409-dhs-buying-diapers-is-suspicious-activity.htm

http://www.dailymail.co.uk/news/article-1040812/Airport-threat-laptop-U-S-gets-power-seize-iPods-mobiles-new-anti-terror-measure.html




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



vote countstoo, huh? Nothanks. I'lltake my towerand let themtry andimagine waysto take it whilekeeping a stepahead.


by

everycentometal on Wed, 06/29/2011- 14:02#1412671

are you kidding? thepolice are doingexactly that right now.people are dying everyday from the jackboots busting downthe wrong door. onestate had theirsupreme court declarethat people could notforcibly resist unlawfulintrusion by the swatmilitia. oh, I know yourgonna let 'em have itwith your big arsenal.last guy that did thatwas a just returnedhome iraq veteran, theyshot 72 times and hithim 65. they used aswat team to go aftersomeone who did afraudulent student loanand you dont thinkthat the IRS or anyother government bodywont do the samething to take yourphysical assets whenthe time comes?

macho replys may nowensue..........


by Janice on Wed,

06/29/2011 -16:47#1413335Well, since youasked. How didFDR confiscate thegold in 1933? They didn't beatdown doors. Thegovernment passeda law and peopleeither willingly soldtheir gold OR theywere escorted byan agent of thegovernment totheir bank safetydeposit box. There was a datewhen thegovernment agentwould bepositioned at your









bank and youcould either willingopen your box inhis presence or thebox would beopened in yourabsence and allgold converted togreenbacks. Peoplewere allowed tokeep five goldcoins or coins thatwere "collectible". It is not feasiblefor the feds to kickin every door. They didn't do itduring prohibitiondid they? There'san old joke....Mywife said that shewas going to cutme off. I told herthat she couldn't,she didn't knowwhere I was gettingit from. Samething, the fedsdon't know whereit's hidden,especially whenyou have multiplehomes. Dude,there was anundergroundrailroad forslaves.....gold willsurvive.


by gwar5 on Wed,06/29/2011 -

11:07#1411812Chris.... preaching to thechoir again here, but wedon't mind.

The mother of all bubblesare still the fiat andsovereign bubbles. There isnothing securing either.

China and the centralbanks are clinging to goldagain and that tells youwhat real money is.

Physical gold is real money.Better Getcha some.


by swissinv on Wed,06/29/2011 -

11:22#1411864Silver is on the best way tobe remonetized in Mexicoand this may comebefore people evenstart talking about a goldstandard.


by shortuscynicus on Wed,











06/29/2011 - 11:20#1411872There is ONE MOSTIMPORTANT ARGUMENTMORE: PM prices arestrongly manipulated down,but this manipulation isconstrained by physicalmarket. So any significant,real, long term move downis impossible.

So if you can't loose, youmust win !!!

The only threat to PM/fiatratio could be severedeflation, but it'simpossible because itwould shout down allwestern governments andbanks around the world.


by RaymondReason on Wed,

06/29/2011 - 13:20#1412517You're right! They haveto maintain somesense of credibilitybecause their system isheld up by faith. Ifthey manipulate theprice too low, they notonly risk shortages,but risk the mass herdlosing faith in "their"price discoverysystem.


by slewie the pi-rat on Wed,

06/29/2011 - 11:24#1411907the "depletion cycle" alsoworks for sheep, where it iscalled the QE fleece cycle: wash. rinse. repeat X 1.5tril = fiat value depletion.


by YesMaybe on Wed,06/29/2011 -

11:28#1411909I have a serious question. Iknow almost everyone herethinks the fed will inflatethe dollar away intooblivion. I'm not looking toconvince anyone otherwise,I really don't know all thatmuch about it myself. Myquestion concerns thedeflationist viewsadvocated at TheAutomatic Earth, andwhether you can link toserious arguments againsttheirs. I don't mean stufflike "the fed will print a tonof money." This is a pointthat has already beenmade and which theyaddress, so even if youthink it's true and they're













wrong it's not addinganything to the discussion. What I'm looking for is arebuttal explaining wherethey go wrong.

Thanks!


by Crack-upBoom on Wed,

06/29/2011 - 11:32#1411975fofoa.blogspot.com "Deflation orHyerpinflation" postedin April of 2011.


byYesMaybeon Wed,

06/29/2011 -12:01#1412133

Thanks, that doesserve well to clarifywhat the two sidesdiffer on.


byjimmyjames on Wed,

06/29/2011 - 13:45#1412567What I'm looking for isa rebuttal explainingwhere they go wrong.

****************

They are wrongbecause they do notunderstand that Goldis a currency ie:money-

Money is king indeflation-

The AE is a group thinksite and when you tryto rebutt theirarguments-you getdeleted-

I agree with much ofwhat Ilargi says aboutdeflation-but they aredead wrong about goldand so is Prechtor andso are the hyper-inflationists-

http://4.bp.blogspot.com/_nSTO-vZpSgc/RbZwf5lgCXI/AAAAAAAAAN0/WJYO6dh-og...

http://bit.ly/dJaHAY

last link is a PDF--itexplains goldsbehaviour during a"global" deflation andgold when only one ora few countries were indeflation (Japan)

http://bit.ly/2uP3yv










http://4.bp.blogspot.com/_nSTO-vZpSgc/RbZwf5lgCXI/AAAAAAAAAN0/WJYO6dh-ogg/s1600-h/Gold-CPI-FF-Rate.png

http://bit.ly/dJaHAY

http://bit.ly/2uP3yv




byAugustus on Wed,

06/29/2011 -15:31#1413046

The HomestakeMining chart couldbe quitemisleading. Recallthat the price ofgold was fixed at asteady price by theUS Govt. With allmining costsdecreasing, profitswould have beenvery good. Silverminers were in adifferent situationas silver prices fell,in line with othercommodities.


by

jimmyjames on Wed,06/29/2011 -16:05#1413168

TheHomestakeMining chartcould be quitemisleading. Recall that theprice of goldwas fixed at asteady price bythe US Govt.

************

There wereother miningcompaniesthat did wellduring thatperiod-PlacerDome wasanother one-

There wereonly about ahalf dozenmajors backthen-

Unfortunatlythere is nodownloadabecharts--

What's mostimportantabout theHomestakechart is the"year" that itwentparobolic-there wassomethingmuch moreimportant thathappened--

Roseveltconfiscated/madegold illegal to









hold and thendoubled theprice-that waswhat goosedgold minersbalancesheets--

So what didpeople dowhen theyneeded tohedge for risk?

They did whatthey alwaysdo-they ran togold throughthe onlyavenue leftopen--

Silver did notdo wellbecause therewas no dangerof a currencycrises and theworld was indeflation so itfell withcommodities-

Today isdifferent inthat sense-Ibelieve we areheading for acurrency crisesand it does notmatter whichmajor currencystarts tocollapse first-when/if ithappen-theonly choiceleft to save itis-to weight itto gold and assoon as ithappens-traders willdump all othercurrency andhead for thegold backedcurrency and itwill be that-which willforce all ofthem to weightwith gold andit will forcecentral banksandgovernmentsinto the openmarket-bidding theprice of goldup in order tobuild reservesand it mightall happen in apanic-

I think we seedeflation and acurrencycrises/highgold pricesahead-add on



a currencyupheavel andsilver will jointhe party-imo--


by Augustus on Wed,06/29/2011 -

15:10#1412984It is not a questionwith a perfect answer. If you read theseemingly logicalhyperinflationliterature, it seemseasy. Then there is acontrasting set of fairlylogical arguments forthe collapse in currencyand banks to lead tomassive deflation. Consider, ifpotatoes are inshortageand unavailable, sothat a grand piano willonly get you a threemonth supply in barter,was there inflation ordeflation?

In both cases, currencyhas little value. Peoplesimply will not acceptit for the goods. However, I expect thatthe normal case ofproductive assetsholding value willprevail. It is aconsideration ofRelative Value.

I really recommendthat you get the book"When Money Dies" byAdam Fergusson. Itdescribes the situationof Germany in the early1920's. When readingit, consider that adollar crash will bequite a bit different. Itwill be accompanied byEuro crash andeconomic freeze up. Inthe German situation,and the recentArgentina meltdown,there were stillremaining somewhatstable money systemsin other countries withmostly unaffectedfunctioning economies.


by earnulf on Wed,06/29/2011 -

11:25#1411913Silver and Gold for the longhaul, Lead for the security,Leather belt for the ridecoming up.










by Juice Box on Wed,06/29/2011 - 11:44

#1412053Two words - PeakResource.

Too many peopledemanding resources andat the same time mostresources are at max ordeclining production.



06/29/2011 - 12:00#1412127From Paul B. Farrell

Population bomb: 9billion march to WWIII

"First World citizens“consume 32 timesmore resources suchas fossil fuels, and putout 32 times morewaste, than do theinhabitants of the ThirdWorld.”

So the race to 2050rages on: “Low impactpeople are becominghigh-impact people”demanding “First Worldliving standards.” Butunfortunately, if allnations in the worldconsumed resources atthe same rate asAmericans, we’d needsix Earths just tosurvive. Today."

"Pentagon warns of‘desperate all-out warsfor food, water,energy’"

http://www.marketwatch.com/story/population-bomb-9-billion-march-to-wwii...


by Max UK on Wed,06/29/2011 -

11:56#1412105If I am not mistaken,FOFOA believes that thegold price always spikes upbriefly at Quarter end,something to do withEuropean Central Bankscontriving to get the goldcomponent of theirreserves valued higher, atthe point in time when itcounts.

I am watching this time tosee if this is indeed atrend.








http://www.marketwatch.com/story/population-bomb-9-billion-march-to-wwiii-2011-06-28?pagenumber=2








by economast on Wed,06/29/2011 -

11:58#1412135Does it concern anyonethat gold is as popular asearch term as "CharlieSheen" and "Toy Story 4"? I'm going to startresearching rare earths.

TRENDING NOW

1. Megan Fox2. Raven-Symone3. Airline baby ban4. Christine Lagarde5. Anna Chapman

1. Charlie Sheen2. Toy Story 43. Gold4. Credit cards5. Intercontinental…


by

I_ate_the_crow on Wed, 06/29/2011- 12:45#1412356

Airline baby ban? I canonly imagine what kindof stellar bullshit thatinvolves.

Re gold: maybe somehousewives aresearching for "goldcredit cards"



16:20#1413215Keep in mind thosetrending lists are aboutas scientific as puttinga wet finger up in theair to study the wind.


by firefighter302 on Wed,06/29/2011 -

12:20#1412227The same insane policiesthat produced a 10 yearbull market in PM's are stillin place.


by apberusdisvet on Wed,06/29/2011 -

12:24#1412251The key fact that Chrisexposes re silver is scarcity;it may disappear from theplanet within 20 years. What do you think the pricewill be in year 10? Year


http://www.yahoo.com/_ylt=AknF_fau5JvK_66ABu7umkKbvZx4;_ylu=X3oDMTJwOGYwNDVwBGNwb3MDMQRnA2lkLTE1OTE0MARpbnRsA3VzBGx0eHQDTWVnYW4gRm94BHBvcwMxBHNlYwN0Yy10cwRzbGsDdGl0bGUEdGVzdAM3MDEEd29lAzEyNzkxMzYx/SIG=133470bgj/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Megan%2BFox%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AhM5ow5EpaSlDsGO2salcfqbvZx4;_ylu=X3oDMTJzN3JzMmY5BGNwb3MDMQRnA2lkLTE2MDE4OQRpbnRsA3VzBGx0eHQDUmF2ZW4tU3ltb25lBHBvcwMyBHNlYwN0Yy10cwRzbGsDdGl0bGUEdGVzdAM3MDEEd29lAzEyNzkxMzYx/SIG=134bjqtmu/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Raven-Symone%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AlcNZisIZVvtJbOd7YLiwsqbvZx4;_ylu=X3oDMTMwYjFrZjk0BGNwb3MDMQRnA2lkLTE2MDIzNARpbnRsA3VzBGx0eHQDQWlybGluZSBiYWJ5IGJhbgRwb3MDMwRzZWMDdGMtdHMEc2xrA3RpdGxlBHRlc3QDNzAxBHdvZQMxMjc5MTM2MQ--/SIG=13ct8v6v5/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Airline%2Bbaby%2Bban%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AvqcGcjZND7gP9F7Mmel.0qbvZx4;_ylu=X3oDMTMxcWZkZm9mBGNwb3MDMQRnA2lkLTE1OTk2OARpbnRsA3VzBGx0eHQDQ2hyaXN0aW5lIExhZ2FyZGUEcG9zAzQEc2VjA3RjLXRzBHNsawN0aXRsZQR0ZXN0AzcwMQR3b2UDMTI3OTEzNjE-/SIG=13bfoirpn/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Christine%2BLagarde%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=Aj.U9u8UcPd6lBZDOEvXHtebvZx4;_ylu=X3oDMTJzMGFraGZoBGNwb3MDMQRnA2lkLTE1NjI0NgRpbnRsA3VzBGx0eHQDQW5uYSBDaGFwbWFuBHBvcwM1BHNlYwN0Yy10cwRzbGsDdGl0bGUEdGVzdAM3MDEEd29lAzEyNzkxMzYx/SIG=136vclavn/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Anna%2BChapman%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AtRrAPAXjx7xdEtHe9njqsubvZx4;_ylu=X3oDMTJ0cjhmMzYyBGNwb3MDMQRnA2lkLTE1NjIyNQRpbnRsA3VzBGx0eHQDQ2hhcmxpZSBTaGVlbgRwb3MDNgRzZWMDdGMtdHMEc2xrA3RpdGxlBHRlc3QDNzAxBHdvZQMxMjc5MTM2MQ--/SIG=137oa7fu4/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Charlie%2BSheen%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AoJ_tr0dQG.YfbW0NK8y2mqbvZx4;_ylu=X3oDMTJyYjFocXQ1BGNwb3MDMQRnA2lkLTE1NjI1NgRpbnRsA3VzBGx0eHQDVG95IFN0b3J5IDQEcG9zAzcEc2VjA3RjLXRzBHNsawN0aXRsZQR0ZXN0AzcwMQR3b2UDMTI3OTEzNjE-/SIG=13cgo7u11/EXP=1309449439/**http%3A//news.search.yahoo.com/search%3Fcs=bz%26p=Toy%2BStory%2B4%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AoAYAFlVaFpmNFzWxYbkJxabvZx4;_ylu=X3oDMTJrM25qOXNjBGNwb3MDMQRnA2lkLTE1ODQ1NQRpbnRsA3VzBGx0eHQDR29sZARwb3MDOARzZWMDdGMtdHMEc2xrA3RpdGxlBHRlc3QDNzAxBHdvZQMxMjc5MTM2MQ--/SIG=12s9ecpkj/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Gold%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AjFSc0swVRDaZuZ9CAmV0dabvZx4;_ylu=X3oDMTJzZjFrdXVlBGNwb3MDMQRnA2lkLTE1ODQ4OQRpbnRsA3VzBGx0eHQDQ3JlZGl0IGNhcmRzBHBvcwM5BHNlYwN0Yy10cwRzbGsDdGl0bGUEdGVzdAM3MDEEd29lAzEyNzkxMzYx/SIG=136s6tq86/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fcs=bz%26p=Credit%2Bcards%26fr=fp-tts-701%26fr2=ps

http://www.yahoo.com/_ylt=AibsYGD7.HI0GSNqvnWodLabvZx4;_ylu=X3oDMTM3b2RtbHM2BGNwb3MDMQRnA2lkLTE2MDE1MARpbnRsA3VzBGx0eHQDSW50ZXJjb250aW5lbnRhbCBLYWJ1bARwb3MDMTAEc2VjA3RjLXRzBHNsawN0aXRsZQR0ZXN0AzcwMQR3b2UDMTI3OTEzNjE-/SIG=13892s7ch/EXP=1309449439/**http%3A//search.yahoo.com/search%3Fp=Intercontinental%2BKabul%26fr=fp-tts-701%26fr2=ps















15? Year 20?


by b-rad-is-rad on Wed,06/29/2011 -

12:25#1412282Anyone have any insight towhy silver skyrocketedtoday? I get the long termtrend is probably up.

But why the spike thismorning? Thanks inadvance.



20:39#1414088Maybe everyone readthis article...


by camoes on Wed,06/29/2011 -

12:31#1412312What happens if the USdefaults...gold and silverwill skyrocket and ZHreaders will be zillionaires!


by zorba THEGREEK on Wed,

06/29/2011 - 13:07#1412467 Discussing PMs with ZHreaders is

like discussingoverdeveloped high

school nymphos withCharlie Sheen.


by

iLoveMisesToPieces on Wed, 06/29/2011- 17:35#1413482

This is just the realitythey've engineered forus. It's insane to thinkI'm taking 100% of mysavings and puttinginto a shiny metal likegold that has verylimited uses. In ahealthy capitial market,i'd be chasingcompanies, productsand ideas that do realthings and createactual economicgrowth. What is left tochase now? Pandora? Groupon? T-bills? Does it even matterwhen you're gettingpaid back in dollars?



















by Smiddywesson on Wed,06/29/2011 -

13:24#1412551Excellent analysis.

I loved the work regarding$60k gold needed to back$60 trillion in paper. Notenough analysts point outthat the gold has to be ofsufficient value to counterall the debt, elsewisethere's no point in movingto another system.

Silver: No doubt your silverwill appreciate. My onlyproblem with the silvertheory is central banksdon't seem concerned withacquiring it, and only theyknow exactly what the nextsceme will be. Anotherconcern is that silver is sonecessary for industry theycan't let it appreciate toomuch, whereas gold isalmost irrelevant toindustry.

The only thing I can't fullyagree with is that thecollapse of the globaleconomy won't utterlycrash the demand forsilver,thereby compromising yourprice theory regarding thesupply. I say that partiallytongue in cheek, becausewe all know in a world ofworthless paper, silver willretain its worth and havemonetary value.

All in all, you made myfollow list. Thanks


by lawrence1 on Wed,06/29/2011 -

13:40#1412613Dorthy Parker once quippedsomething like this,

"If all the girls from Vassarwere laid end to end¨...

and they probably were.¨


by Augustus on Wed,06/29/2011 -

14:45#1412840Silver price has collapsedabout 30% from the recentpeak. It generates no cashincome and has no longterm financing. Everyone issalivating to get somemore as "everyone knows"that the dip is onlytemporary in a manipulatedmarket.












Housing prices collapsedabout 30% from the recentpeak and no one wants ahouse, even when they arefinanciable at 4.5% or sofixed for 30 years.

If all of the inflation doescome to pass, does anyonereally believe that peoplewill not be paying more forhousing? For prices ofeither metals or housing toincrease, it requiresBUYERS. The problem withboth metals and housing isthat in the event of the bigworld economic collapse,everything will be cheaper.



16:38#1413299When people can onlybuy gold or silver bytaking out a 30 yearloan, you might have apoint.


by


That's not necessarilytrue. Houses aren't aform of currency. There is a hugeincentive for the fiatpimps to keepalternative currenciesout of the mix whichmeans suppressingtheir value using thevery fiat they pimp. Not to mention the factstrong money isinevitable and that willinstantly increase thedemand for PMs.


byAugustus on Wed,

06/29/2011 -22:52#1414375

Houses can also bea store of value. The largerinvestors in silverand gold are notintending to usethe metal ascurrency, toexchange it at thegrocery store.

The real point isthat a similardecline in silverprice is considereda buyingopportunity. It can












be financed andleveraged as far asany home loan canbe. Not a regularpractice as thosebuyers expect theprice to fluctuateand leveragemakes thedownturns morepainful.

Strong money iscertainly notinevitable. Therewas no "strongmoney" in the USuntil the FederalReserve wascreated to controlbanks.


byAugustus on Wed,

06/29/2011 -22:56#1414379

Houses can also bea store of value. The largerinvestors in silverand gold are notintending to usethe metal ascurrency, toexchange it at thegrocery store.

The real point isthat a similardecline in silverprice is considereda buyingopportunity. It canbe financed andleveraged as far asany home loan canbe. Not a regularpractice as thosebuyers expect theprice to fluctuateand leveragemakes thedownturns morepainful.

Strong money iscertainly notinevitable. Therewas no "strongmoney" in the USuntil the FederalReserve wascreated to controlbanks.



20:44#1414101It's called an 'asset.' Itrepresents a store ofvalue. If you want areturn on it, just loan itout. I'll be the first toborrow. Then we'llplay hide-and-seek.










by XitSam on Wed,06/29/2011 -

14:47#1412877

Neither you nor I will haveany say in the replacement,I fully expect that it will beanother fiat scheme. Agold standard does notgive TPTB enoughopportunity for corruption.


by

Smiddywesson on Wed, 06/29/2011- 15:37#1413061

My thoughts exactly,but one point broughtup was this:

"Clearly that's a sillynumber (or is it?), buteven a 10% partialbacking of moneyyields $6,000 perounce. "

There will be a goldstandard, we don'tknow how much thepartial backing will be,but we can restassured that thebanksters will slowlyundermine thatbacking over time. That still leaves gold asa great investment.


by


Maybe we want have asay, but there is ahuge, huge, hugeimbalance in themonetary system thatis fiat currency. Eventually, those thathold real assets and/orreal economicproductive capacity aregoing to say, we aren'ttrading real stuff foryour fiat currency. Sound money isinevitable.

Login or register to

If or when thefiat regimefails, there willhave to besome form ofreplacement,and the onlyone that weknow works forsure is a goldstandard.














post comments

by Island_Dweller on Wed,06/29/2011 -

15:58#1413138Could someone (the more,the better), recommend abullion dealer inEurope/France? My father-in-law is in France (he'sAustralian and doesn'tspeak French) and is readyto get into PMs.

Thanks!


by achmachat on Wed,06/29/2011 -

17:12#1413420I'm between Germanyand France, and get mybullion from Germany.they ship with UPS toall over Europe.

www.geiger-edelmetalle.de

their website alsocomes in English ;-)


by Kokulakai on Wed,06/29/2011 -

16:21#141323861 moz of 2010 supplywas producer hedging.

Got silver?


by mikmid on Wed,06/29/2011 -

19:29#1413861Chris, great job as usualand I agree with yourconclusion.


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