Gold $1600 an ounce!

[visajets]

http://www.msnbc.msn.com/id/43794348/ns/business-stocks_and_economy/t/gold-rallies-record-ounce/

Dig out those old Guido chains and bracelets or sell the ones your wearing, raid your wifes or moms jerwerly box.

[villain_the_foe]

http://www.msnbc.msn.com/id/43794348/ns/business-stocks_and_economy/t/gold-rallies-record-ounce/

Dig out those old Guido chains and bracelets or sell the ones your wearing, raid your wifes or moms jerwerly box.

Thats a good idea. I did that back in the day and purchased Silver with it. I got my mother started like that as well. She had a jewelry box full of stuff over the years, we sold all her unwanted jewelry and got her coins/bullion to hold.

Gold just a week ago was about $1,480. Last week after Ben "The Bernank" told Ron Paul that Gold isnt money and Central banks hold gold purely for "tradition" the price of Gold spiked. It seems like every time Bernanke opens his lying pie hole the price goes up.

I dont mind. Im just going to keep on buying. $1,600 is going to look cheap as hell in about 3 years. I wouldnt be surprised if its $8,000 an oz by 2015.

I wonder whats going to happen to the price of Gold after August 2nd. I have a feeling that this is going to be an EPIC fall/winter

[Maxman]

What is 8/2?

[faba]

What is 8/2?

Federal gov't debt deadline borrowing limit

[Larz]

the federal gov't will pass a deal, the hysteria will die down, and gold will flatten out

I've even seen speculation about a bubble

either way, I'd sell soon

[joebabyny]

the federal gov't will pass a deal, the hysteria will die down, and gold will flatten out

I've even seen speculation about a bubble

either way, I'd sell soon

Yeah, people are running up gold thinking the world economy is going to end. It can't go much higher. Honestly, if it goes much higher, it will eventually be useless as water and guns will be worth more than any gold or money could buy, lol.

[joebabyny]

Thats a good idea. I did that back in the day and purchased Silver with it. I got my mother started like that as well. She had a jewelry box full of stuff over the years, we sold all her unwanted jewelry and got her coins/bullion to hold.

Gold just a week ago was about $1,480. Last week after Ben "The Bernank" told Ron Paul that Gold isnt money and Central banks hold gold purely for "tradition" the price of Gold spiked. It seems like every time Bernanke opens his lying pie hole the price goes up.

I dont mind. Im just going to keep on buying. $1,600 is going to look cheap as hell in about 3 years. I wouldnt be surprised if its $8,000 an oz by 2015.

I wonder whats going to happen to the price of Gold after August 2nd. I have a feeling that this is going to be an EPIC fall/winter

$8,000?? Dude, gold is only enjoying such a surge due to recent economic problems in not only our country but the world. The type of calamity that would see gold climb to $8,000 an ounce means the end of the effing world, nobody will care about gold or diamonds or any currency.

[villain_the_foe]

$8,000?? Dude, gold is only enjoying such a surge due to recent economic problems in not only our country but the world. The type of calamity that would see gold climb to $8,000 an ounce means the end of the effing world, nobody will care about gold or diamonds or any currency.

You're right, this is a global phenomenon, so wouldnt Gold have to account for all of the paper currency globally? Gold/Silver is the ultimate money, however you do have a point. This is why I've also been buying storage food because I see clear as day whats coming. I already have Berkey water filters. You may not think people will care about gold or silver....but look back at every country that has collapsed economically and look at what they cared about. I guess gold's 6000 year run of never failing economically still hasnt convinced the populous.

If we used the "Consumer Price Index" of 1980 Gold right now should be around $7,400 and thats not accounting for all of the derivatives or the money printed from 2009 to today.Paul Volcker's CPI in 1980, gives a much clearer picture than the CPI used today, which is on reason why the Fed has discontinued issuing M3 since 2006 so the public cant see the total amount of money floating around.

The manipulation of the gold price is nothing more than an opportunity because the name of the game is ounces, not price. It sounds ridiculous now, but 11 years ago it was ridiculous to think that Gold at $275 would reach $1,600 or Silver at $4 in 99' would be $40 right now. We are a debter nation....and the shenanigans being pulled is simply an opportunity for you and I to get out of debt & paper assets before it crumbles, or atleast that's how im looking at it.

But who ever thinks that a 1.7 trillion dollar deficit, a 14 trillion debt (or 70 trillion if you count S.S., healthcare and others) and a 700 trillion dollar derivative bubble is nothing more than Gold simply having an "enjoyment surge"....More power to them. I'll buy whatever Gold they dont want and gladly give them the paper for it.

[villain_the_foe]

the federal gov't will pass a deal, the hysteria will die down, and gold will flatten out

I've even seen speculation about a bubble

either way, I'd sell soon

A bubble in the gold market? Joebaby just made a good point about this being a global situation and from my sources about 2-3% of the global population even own physical gold/silver and its even less when it comes to the mining shares.

Im not sure how credible that speculation is when generally no one owns gold even at these prices. At the height of the 1980 gold run almost 30% of americans owned some form of investment grade gold. We're no where near that percentage domestically let alone globally.

Also, the Govt can certainly pass a deal to raise the debt ceiling....but you made that out to be a good thing. The hysteria "should" (but probably wont) go up because that means that we're simply going to borrow more money from places like China when we cant even afford to pay back the 14 trillion that we owe today let alone our social security/health care promises. That fact alone lets me know that Gold will continue to go higher. And QE3 wont help either.

[bitonti]

in the last month GOOG went from 485$ to over 600$

adjusted for inflation... gold isn't a great investment. It's a hedge of sorts. it's not a great source of alpha. we see these threads when gold reaches the milestones but in between it just kinda sits there.

[villain_the_foe]

in the last month GOOG went from 485$ to over 600$

adjusted for inflation... gold isn't a great investment. It's a hedge of sorts. it's not a great source of alpha. we see these threads when gold reaches the milestones but in between it just kinda sits there.

All companies fail, Gold never fails. Google is one of how many companies? Im not saying that Google isnt a good company, but I wouldnt compare it to real money nor would I invest in a company like google to hedge against inflation when Gold is sitting right there and no one wants it (yet....as of July 19th 2011 ).

There's a difference between investing in a company for profit and preserving wealth with Gold/Silver. You're looking at Gold as if its a company when its the total opposite. Gold isnt a great investment? It was THE investment this past decade, and Silver will be the investment of this decade (investment when thinking in dollars)....but the bottomline is that we'll just have to sit back and see who's right.

On this particular point you are right though, gold does "sit there" until there's a problem in the faulty paper monetary system and people reawaken to Gold and Silver and THATS when you'll see the movements. In otherwords, if you believe (like I) that there's a major problem with the monetary system and it has to be restructured then that means that you put all of your assets into what will protect it during that restructuring. Gold and Silver is that play.

[Larz]

A bubble in the gold market? Joebaby just made a good point about this being a global situation and from my sources about 2-3% of the global population even own physical gold/silver and its even less when it comes to the mining shares.

Im not sure how credible that speculation is when generally no one owns gold even at these prices. At the height of the 1980 gold run almost 30% of americans owned some form of investment grade gold. We're no where near that percentage domestically let alone globally.

Also, the Govt can certainly pass a deal to raise the debt ceiling....but you made that out to be a good thing. The hysteria "should" (but probably wont) go up because that means that we're simply going to borrow more money from places like China when we cant even afford to pay back the 14 trillion that we owe today let alone our social security/health care promises. That fact alone lets me know that Gold will continue to go higher. And QE3 wont help either.

the deal will certainly include spending cuts, and an end to the bush era tax cuts for the wealthy. I'm not expecting some big bounce back recovery, just an end to the survivalist talk about shopping for good water filters

I'm just saying that the talk about "buy buy buy, it's only going up and will go up forever !!!" is usually what you see before a bubble goes pop

the wild card of course is greece, italy, the whole global economy stabilizing which may take a year and keep gold high

I'd rather sell at 1,600 and miss out on 1,800 then be holding it at 1,000

[Plus One]

There are commercials on CNBC encouraging senior citizens to invest in gold.

Pretty sure that's a top.

[villain_the_foe]

the deal will certainly include spending cuts, and an end to the bush era tax cuts for the wealthy. I'm not expecting some big bounce back recovery, just an end to the survivalist talk about shopping for good water filters

I'm just saying that the talk about "buy buy buy, it's only going up and will go up forever !!!" is usually what you see before a bubble goes pop

the wild card of course is greece, italy, the whole global economy stabilizing which may take a year and keep gold high

I'd rather sell at 1,600 and miss out on 1,800 then be holding it at 1,000

I dont see any fundamentals that shows that Gold is in a bubble. Matter of fact, I see alot of naked shorts by HSBC and JP Morgan on the silver futures market. I dont know anyone outside of me and one other personal friend who even knows the prices of Gold/Silver let alone own some. Gold/Silver mining shares are being shorted by hedge funds and ETF's are absorbing the money that the miners would have gotten if not in existence (like the fictional GLD & SLV that are also naked shorting).

Im not sure bro. I see what you're saying, but I dont see any fundamentals that shows me that I should be holding on to benjamins and not G/S.

[villain_the_foe]

There are commercials on CNBC encouraging senior citizens to invest in gold.

Pretty sure that's a top.

CNBC has been encouraging people to invest in Gold via GLD which isnt investing in gold. Thats nothing more than price speculation, and it also allows iShares & JP Morgan (whos the custodian of the ETF) to access your money via "venture capital" which indicates "risk" like a stock....because its nothing more but a stock. Its not Gold.

You're right, there will soon be a top in GLD and SLV for that matter when people find out that their dollars are not backed by the actual asset.

[Plus One]

CNBC has been encouraging people to invest in Gold via GLD which isnt investing in gold. Thats nothing more than price speculation, and it also allows iShares & JP Morgan (whos the custodian of the ETF) to access your money via "venture capital" which indicates "risk" like a stock....because its nothing more but a stock. Its not Gold.

You're right, there will soon be a top in GLD and SLV for that matter when people find out that their dollars are not backed by the actual asset.

No, the commercials I'm referring to are not advocating buying gold ETFs or holders. They are encouraging senior citizens to invest in the actual commodity.

[villain_the_foe]

No, the commercials I'm referring to are not advocating buying gold ETFs or holders. They are encouraging senior citizens to invest in the actual commodity.

Oh, the commercials. Then thats a good look. I didnt know that. I ususally catch clips of CNBC's financial shows on youtube and I notice that everytime they refer the price of gold/silver they pull up the iShares charts instead of the actual spot price of the metal.

A deflationary event would probably come first, which would fool people into exiting the gold/silver market, but eventually this derivative situation must be dealt with...and when it is WATCH OUT!

[bitonti]

All companies fail, Gold never fails. Google is one of how many companies? Im not saying that Google isnt a good company, but I wouldnt compare it to real money

ron paul and bernanke had a classic discussion about this last week

gold is not "real money"

it's a precious metal asset.

and that's great but you can't take gold to the supermarket and buy bread. it's like art, gems, bonds or collectors etc. it's worth what the market will pay for it. in real money. the very fact that we price gold in dollars (1600 of these pieces of paper per oz)

ps apple also went bananas tonight. certain companies fail and other companies kick a$$ all day long. Gold will never out perform the market.

[war ensemble]

I'd kinda be digging some HTC stock right now, but gold is a nice option for security. It's a precious commodity that will always be treated as such. We price gold in dollars because dollars is the common currency--but the common currency is itself only valuable because we assign it a value. Money can get to a point where it won't buy you bread, its status in exchange/barter doesn't inherently increase its value. There's a reason money was originally backed by gold, and that's because gold is more permanent in its attractiveness.

Gold per pound may only be worth a cent tomorrow, but I would trust that not happening more than any currency suffering massive inflation. Everything's subjected to the same market--and there are a ton of people that have lost a lot on supposedly solid investments.

[villain_the_foe]

ron paul and bernanke had a classic discussion about this last week

gold is not "real money"

it's a precious metal asset.

and that's great but you can't take gold to the supermarket and buy bread. it's like art, gems, bonds or collectors etc. it's worth what the market will pay for it. in real money. the very fact that we price gold in dollars (1600 of these pieces of paper per oz)

ps apple also went bananas tonight. certain companies fail and other companies kick a$$ all day long. Gold will never out perform the market.

You're right. Ron and Ben did have a classic discussion and it made Ben look like the tool that he is. Yes, Ben did say that he thought that gold was only a precious metal "to him" and Ron checked him on it didnt he? I'm not at all surprised that you left that part out.

Ben also stated that Central banks held gold as "tradition", which to spend 10's of billions simply for "tradition" is a freaking laughable statement, you even hear Ron laugh at the response. For the real reason: they hold gold because when you destroy your currency, your debters dont want your monopoly paper, they want your GOLD. I doubt if banks looked at gold the way you do that they would have reserves of it. Let me post the actual conversation given that you completely twisted that conversation to suit your point of view. I also like how you concentrated on Ben stating that he "thought" that Gold wasnt money yet you didnt state how Ron explained to him that its been money for 6,000 years and who during that time span changed that economic law. Nice try Bit, but we're not talking "apples" here.

P.S. You can certainly buy items with gold/silver.

[villain_the_foe]

I'd kinda be digging some HTC stock right now, but gold is a nice option for security. It's a precious commodity that will always be treated as such. We price gold in dollars because dollars is the common currency--but the common currency is itself only valuable because we assign it a value. Money can get to a point where it won't buy you bread, its status in exchange/barter doesn't inherently increase its value. There's a reason money was originally backed by gold, and that's because gold is more permanent in its attractiveness.

Gold per pound may only be worth a cent tomorrow, but I would trust that not happening more than any currency suffering massive inflation. Everything's subjected to the same market--and there are a ton of people that have lost a lot on supposedly solid investments.

Good point. As for stocks, I've been really in to Pretium Resources as of late. They have one of the top Geologist imo in Robert Quartermain and one of the best management teams in North America. Not to mention the high grade mineralization at their brucejack project.

[villain_the_foe]

Anyone interested in learning about the fundamentals of Gold and Silver you can start here:

[bitonti]

You're right. Ron and Ben did have a classic discussion and it made Ben look like the tool that he is. I also like how you concentrated on Ben stating that he "thought" that Gold wasnt money yet you didnt state how Ron explained to him that its been money for 6,000 years and who during that time span changed that economic law. Nice try Bit, but we're not talking "apples" here.

you got that conversation all wrong. Bernanke was right. Gold isn't money. It's an asset. even your gas station sign was talking about classic coins aka numismatics not necessarily gold in bar or ignot form.

people like to play fast and loose with the dictionary but definitions for things like money and recession exist. we cant make these words mean whatever we want them to mean

bottom line Villian if we live in a world where gold is more useful than US Dollars then shotguns and canned beans are gonna be worth more than all that mess. Bottled water might be like diamonds. It's a mad-max outlook on life.

also should be noted there's nothing intrinsically valuable about gold. it's a decorative heavy metal. If you were buying titanium I'd say yes that's great you can build space ships out of that. Can't do nothing with gold but look at it or wear it as jewelry. even compared to other metals its overrated. Way back in the neanderthal times someone looked at this shiny metal and thought it was valuable and we've been living under that assumption ever since... but really what use is gold? can't do a whole lot with it of use.

[Plus One]

bottom line Villian if we live in a world where gold is more useful than US Dollars then shotguns and canned beans are gonna be worth more than all that mess. Bottled water might be like diamonds. It's a mad-max outlook on life.

^ This.

This is why "doomsday" investing has never worked.

In order to believe that we are in the early innings of a gold rally, and that the price of gold is going to $8,000 per ounce, you have to believe that the US dollar is going to be significantly devalued, to the extent that we'd be facing hyperinflation. Even if you're right, and this happens, it's not like you'll be able to take your sack of gold and go down to the grocery store and trade it for bread. You'd be eaten alive by mutant zombies on your way there.

[villain_the_foe]

^ This.

This is why "doomsday" investing has never worked.

In order to believe that we are in the early innings of a gold rally, and that the price of gold is going to $8,000 per ounce, you have to believe that the US dollar is going to be significantly devalued, to the extent that we'd be facing hyperinflation. Even if you're right, and this happens, it's not like you'll be able to take your sack of gold and go down to the grocery store and trade it for bread. You'd be eaten alive by mutant zombies on your way there.

the 1930's deflationary crash wasnt "doomsday" investing. It was smart investing.

The 1970's inflation wasnt a "doomsday" investing. It was smart investing.

This time is different because now we're just cranking out money to pay off debts by creating more debt. It doesnt have to be "doomsday" in order for it to be smart. Thats a poor response by you on a good decision. You simply have faith in your paper, which is cool....I dont.

Your opinion on gold doesnt change the fact that its money nor does it change the fact that every central bank on the planet are now net buyers of Gold, nor does it change the fact that China has been encouraging their citizens for 2 years to buy precious metals. As for your gold and bread comment, I've never seen anyone go hungry with an oz of gold in their pocket, I also wont be the one hungry because I know better to just have 6 days worth of food in my house. I have over a year. I wont be buying bread with my gold, I'd be buying peoples land who said that I couldnt buy bread with my gold....I can certainly buy land with it though....on the CHEAP

I guess its like a recession/depression. When you have a job then we're in a recession, but if you're one of those people who lost their job then its a depression. As for the dollar, the dollar has been devalued by almost 50% in three years, we're at a debt limit that we hit in may and we've been using funds that was supposed to be allocated to the pensions in the public sector simply the run the govt and that money runs out on August 2nd. Its not what I "believe", its whats happening. You think you can continue to debase the currency with QE and stimulus and it not impact the price of stuff?

Just go to your store and look at a twix, they're not the same size anymore. A personal carton of tropicana orange juice is no longer 16 oz but its now 14oz, a pint of ice cream used to be 2 dollars and now its about 5. Inflation is already here.

[villain_the_foe]

you got that conversation all wrong. Bernanke was right. Gold isn't money. It's an asset. even your gas station sign was talking about classic coins aka numismatics not necessarily gold in bar or ignot form.

people like to play fast and loose with the dictionary but definitions for things like money and recession exist. we cant make these words mean whatever we want them to mean

bottom line Villian if we live in a world where gold is more useful than US Dollars then shotguns and canned beans are gonna be worth more than all that mess. Bottled water might be like diamonds. It's a mad-max outlook on life.

also should be noted there's nothing intrinsically valuable about gold. it's a decorative heavy metal. If you were buying titanium I'd say yes that's great you can build space ships out of that. Can't do nothing with gold but look at it or wear it as jewelry. even compared to other metals its overrated. Way back in the neanderthal times someone looked at this shiny metal and thought it was valuable and we've been living under that assumption ever since... but really what use is gold? can't do a whole lot with it of use.

Look, you're entitled to your opinion most definitely, however, there's a criteria for what makes something "money" and "currency" doesnt fit the bill. Gold and Silver are money because of its attributes. We use currency simply because the people in control of the currency can create it.

We've been taught that Gold/Silver is nothing more but a barbaric metal used for Jewelry, however, if that was the case then I dont see the reason why it needs to be manipulated so heavily...until you realize that the higher the intrinsic price goes the worse it makes the currency look.

Currency doesnt hold value over long periods of time. Gold and silver has done so for thousands of years....its the ONLY thing that has that track record. Name me 1 currency that has lasted over 100 years and I'll admit that im wrong.

Lastly, I have a question and a statement. Do you "really" believe that central banks hold gold for "tradition" ? Also, the reason why gold and silver are going up is because its a global phenomenon, not just domestic.That fact alone lets me know that Gold and Silver has to go alot higher.

[Plus One]

the 1930's deflationary crash wasnt "doomsday" investing. It was smart investing.

The 1970's inflation wasnt a "doomsday" investing. It was smart investing.

This time is different because now we're just cranking out money to pay off debts by creating more debt. It doesnt have to be "doomsday" in order for it to be smart. Thats a poor response by you on a good decision. You simply have faith in your paper, which is cool....I dont.

Your opinion on gold doesnt change the fact that its money nor does it change the fact that every central bank on the planet are not net buyers of Gold, nor does it change the fact that China has been encouraging their citizens for 2 years to buy precious metals. As for your gold and bread comment, I've never seen anyone go hungry with an oz of gold in their pocket, I also wont be the one hungry because I know better to just have 6 days worth of food in my house. I have over a year. I wont be buying bread with my gold, I'd be buying peoples land who said that I couldnt buy bread with my gold....I can certainly buy land with it though....on the CHEAP

I guess its like a recession/depression. When you have a job then we're in a recession, but if you're one of those people who lost their job then its a depression. As for the dollar, the dollar has been devalued by almost 50% in three years, we're at a debt limit that we hit in may and we've been using funds that was supposed to be allocated to the pensions in the public sector simply the run the govt and that money runs out on August 2nd. Its not what I "believe", its whats happening. You think you can continue to debase the currency with QE and stimulus and it not impact the price of stuff?

Just go to your store and look at a twix, they're not the same size anymore. A personal carton of tropicana orange juice is no longer 16 oz but its now 14oz, a pint of ice cream used to be 2 dollars and now its about 5. Inflation is already here.

I understand the argument for investing in precious metals.

Trust me, I've already forgotten more about investing than you'll ever know. PM me if you want to know my background.

In this instance, I just think you're jumping into gold in the late innings.

But, heck, I've been wrong before. Probably be wrong again...if I live long enough.

[villain_the_foe]

I understand the argument for investing in precious metals.

Trust me, I've already forgotten more about investing than you'll ever know. PM me if you want to know my background.

In this instance, I just think you're jumping into gold in the late innings.

But, heck, I've been wrong before. Probably be wrong again...if I live long enough.

Jumping into gold in the late innings? The University of Texas just purchased 1 billion dollars in physical Gold bullion a couple months ago.You think they'd do that if this was the "late" innings?

http://www.businessweek.com/news/2011-04-16/texas-university-endowment-storing-about-1-billion-in-gold-bars.html

This is probably the top of the 3rd and I'll prove that with a couple questions. Has our economic house been fixed? Have we satisfied the debts that we owe...better yet, CAN we satisfy the debts that we owe? Are we still printing money (creating more debt) because of these two situations?

Exactly.

As an old time investor you know yourself that Gold eventually accounts for all of the money/debt in circulation, especially when converting back to a "gold backed" system as we obviously will be doing. If that wasnt the case every central bank on this planet wouldnt be buying gold and silver for reserves as they been doing for the past few years.

And from the looks of it, Mexico may be the country to start it off. Their Govt, central bank and the people want a silver backed currency, in which they already have their Silver Libertad's in circulation there. What do you think that will do to the price of Silver? This is just the start, I may not have as much experience as you do....but im not blind brother.

And just to clairfy, I dont think we're looking at an economic collapse though I may have said that before, to be more specific, I think we're witnessing an economic re-engineering, and with that there are going to be some very tough times ahead and I'd be a fool not to prepare myself for whats staring me right in the face. Im not rich so I have to prepare in ways that can do me justice....and im looking to make a profit off of this re-engineering of the economy.

[bitonti]

Lastly, I have a question and a statement. Do you "really" believe that central banks hold gold for "tradition" ?

I will answer this question if you answer one of mine.

my answer: Tradition is part of it, they also hold Bonds, T-Bills and other things, more commonly than gold. They own the building as real estate. Banks are not huge gold repositories, they hold all sorts of assets. Real Gold might be 3-4% of a bank's assets (in a very generous and gold heavy scenario) but it's not what banks invest in, primarily.

I do think gold's usefulness as a soft medal you can make into coins (or bite into halves, quarters or eighths) is what made is useful in times before paper currency. that usefulness is still valid in extreme circumstances but things would have to be very bad indeed for humans to go back to biting gold into chunks to pay for things.

my question and please think about it before answering:

Why do you have a meter in your signature updating the price of gold in dollars? If gold is so great and dollars are worthless pieces of paper why is it necessary to constantly update the value of one with the value of the other?

[villain_the_foe]

I will answer this question if you answer one of mine.

my answer: Tradition is part of it, they also hold Bonds, T-Bills and other things, more commonly than gold. They own the building as real estate. Banks are not huge gold repositories, they hold all sorts of assets. Real Gold might be 3-4% of a bank's assets (in a very generous and gold heavy scenario) but it's not what banks invest in, primarily.

I do think gold's usefulness as a soft medal you can make into coins (or bite into halves, quarters or eighths) is what made is useful in times before paper currency. that usefulness is still valid in extreme circumstances but things would have to be very bad indeed for humans to go back to biting gold into chunks to pay for things.

my question and please think about it before answering:

Why do you have a meter in your signature updating the price of gold in dollars? If gold is so great and dollars are worthless pieces of paper why is it necessary to constantly update the value of one with the value of the other?

Im a quick thinker, Its because I want people on Jetnation to see via "Gold and Silver" how their currency is rapidly being debased. No matter how often I argue with you guys I honestly believe that we have a major f'ing problem here and this is a indirect way of sharing info with you guys. Gold/Silver is like the thermometer for the currency, the "canary in the coal mine" if you will. In order for them to understand that they need to see a hard finite asset compared to it. What would be more relevant to compare fiat to than with "money"? I know damn well that Gold and Silver isnt worth the dollar price tag, but unfortunately people dont think in ounces, they think in dollars or Euros...so I compare it to the very thing that they can comprehend. Why do you think im holding on to it? And I will continue to hold on to it until the rest of the world wakes up to the fact that the fiat paper money ponzi scheme is over and we need "at minimum" a currency with a physical Gold Silver backing yet again so we dont have central banks printing the sh*t out of the currency again so they can bail out "too big to fails". I know we disagree with the Gold and Silver but I can assume that we both agree that the bailouts were f'ing retarded. The bottomline is that we're in the middle of a massive wealth transfer and there will be a huge liquidation (check out the housing market) and Im just putting myself in position to profit. Im not socialist, I pro-capitalism believe me. And this situation, though a travesty is a HUGE opportunity if you're in the right asset class and you're willing to stay on through the up's and downs.

Truth be told, im totally expecting a temporary deflationary event given this debt celing situation. They have to cut something...thats the bottomline because there's no money. If silver dropped to $20 and Gold to $800 you'd think I'd be pissed? I'd be right there to take advantage of the sale because im thinking long term. The real problems havent been touched yet. What happens when we cant "QE" anymore? I just want to be on the right side of the fence....and my signature is my way of just throwing it out there for the people who see it so they can ponder and investigate for themselves. Thats all.

As for your answer, you are very much correct on that...however, T bills and T bonds are not sound financial assets given that they can be created out of thin air (our monetary system is fiat based. I ask you again, when has it ever worked?). The real reason why they hold Gold is because when the currency goes to sh*t, so does the T bonds and T Bills. If that isnt so then why is the FED playing the role of "buyers of last resort" with our treasuries? No one wants toxic assets, but the FED needs to buy them up to keep the game going for as long as possible. And if that means debasing the currency, then that means that I need to get into hard money to protect myself from the stupidity. The story plays out the same way historically. Fiat currencies have a life cycle of about 40 years. Funny, we've been off Brenton woods for 40 years, and why's that? Its because we didnt have enough money to finance the Vietnam war and the gold that was being redeemed internationally by dollar holders was depleting the reserves. Nixon took us off the Gold standard in order to give the banks the flexibility to spend more money then they actually could afford when on the Gold Standard. As a side note, I said this before and I'll say it again. I dont think that there's Gold in Fort Knox...or atleast what is supposed to be there. Think about it, we're a debter nation....what position are we in to demand an audit? You dont demand ANYTHING from the creditor when you're the debter.

40 years later look at our problem. Gold is money but more importantly it controls greed because these f'ing bankers cant debase it. Now you know why Bernanke doesnt like Gold lol.

P.S. You said that banks holding gold for tradition was "part" of the reason. Whats the other part? You didnt elaborate on that part.

[bitonti]

people dont think in ounces, they think in dollars or Euros.

and that's the difference between an asset and money. my house might be worth alot to me, but i cant trade it for stuff.

(our monetary system is fiat based. I ask you again, when has it ever worked?).

it's working now. Can you go to the store and buy bread? Well then the economy hasn't failed. I don't like it when people say the unemployment rate is blah it used to be blah minus one therefore the economy has failed. that's bullcrap. when the economy fails you'll know it by the zombies beating in your door. or the alien spaceships.

P.S. You said that banks holding gold for tradition was "part" of the reason. Whats the other part? You didnt elaborate on that part.

I did say it's a worst case hedge. I agree with that. But if we get to the point where the worst case is happening, forget the gold, get the guns. banks are not holding enough gold to cover their whole nut if the monetary system fails. It's a small conservative part of an overall investment strategy, that is probably based strongly on equity assets (stocks)

[Plus One]

Jumping into gold in the late innings? The University of Texas just purchased 1 billion dollars in physical Gold bullion a couple months ago.You think they'd do that if this was the "late" innings?

http://www.businessweek.com/news/2011-04-16/texas-university-endowment-storing-about-1-billion-in-gold-bars.html

This is probably the top of the 3rd and I'll prove that with a couple questions. Has our economic house been fixed? Have we satisfied the debts that we owe...better yet, CAN we satisfy the debts that we owe? Are we still printing money (creating more debt) because of these two situations?

Exactly.

As an old time investor you know yourself that Gold eventually accounts for all of the money/debt in circulation, especially when converting back to a "gold backed" system as we obviously will be doing. If that wasnt the case every central bank on this planet wouldnt be buying gold and silver for reserves as they been doing for the past few years.

And from the looks of it, Mexico may be the country to start it off. Their Govt, central bank and the people want a silver backed currency, in which they already have their Silver Libertad's in circulation there. What do you think that will do to the price of Silver? This is just the start, I may not have as much experience as you do....but im not blind brother.

And just to clairfy, I dont think we're looking at an economic collapse though I may have said that before, to be more specific, I think we're witnessing an economic re-engineering, and with that there are going to be some very tough times ahead and I'd be a fool not to prepare myself for whats staring me right in the face. Im not rich so I have to prepare in ways that can do me justice....and im looking to make a profit off of this re-engineering of the economy.

[villain_the_foe]

and that's the difference between an asset and money. my house might be worth alot to me, but i cant trade it for stuff.

You dont know the difference between currency and money. Maybe I should make a video of me taking a silver eagle to the store and purchasing some food for you to get the point that you can certainly do so....the difference is, I have and you havent. I will admit though that most people dont understand the significants of gold and silver, because they think of it the same way you do so of course paper notes are more accepted surely in the public sector. But there are many private businesses that understand the difference. You cant count that out.

And for the record, because you can purchase goods with paper doesnt make it money, it does however makes it a medium of exchange, which is also an attribute that money has. Because you can buy something with your dollars doesnt change the fact that its simply a currency. Also, businesses whether public or private have a "choice" in what the accept as exchange for products. You're making it seem like no one takes gold or silver by law or something. The legal system only deals in "legal tender" in the court of law....it even refers to that on your currency promissory note. The bankers made you believe that currency is money, its not, and buying bread doesnt change that fact, and you'll find out as soon as people begin to reject those dollars like the way China is rejecting those T bonds that you spoke of.

it's working now. Can you go to the store and buy bread? Well then the economy hasn't failed. I don't like it when people say the unemployment rate is blah it used to be blah minus one therefore the economy has failed. that's bullcrap. when the economy fails you'll know it by the zombies beating in your door. or the alien spaceships.

Thats not a serious statement, which is why its hard to hold such a conversation.

I did say it's a worst case hedge. I agree with that. But if we get to the point where the worst case is happening, forget the gold, get the guns. banks are not holding enough gold to cover their whole nut if the monetary system fails. It's a small conservative part of an overall investment strategy, that is probably based strongly on equity assets (stocks)

If we get to the worse part? You're waiting to "get there" first instead of preparing beforehand? I have a question, do you see the economy turning around, and if so please explain. As for guns, you need something to protect for the guns to be relevant. Having a week worth of groceries and no gold and silver puts you in a position to where your guns will be irrelevant because you'll be hungry and broke and 2 months of a bad situation like that could cost you your life, though you had a gun in your side pocket.

I started preparing 3 years ago, and I do agree that guns are necessary....but im more concerned about hunting than self defense...though I do understand totally that a situation like that may be the case, especially from the people looking for food, gold and silver because they didnt prepare beforehand.

And speaking of hunting, me and the wife are going to tennessee for a training for things relevant to hunting and self preservation. I'd rather have the skills because at best, I can eat my food investment, and for Gold/Silver i'd still maintain my wealth no matter the situation...thats what money does. HOwever, if the aliens/zombies come then I know that we'll have a possible famine scenario and me learning how to grow food will put me in the drivers seat to not only feed myself but to "once again" make profit...and for the record, im only taking gold and silver

[Plus One]

Jumping into gold in the late innings? The University of Texas just purchased 1 billion dollars in physical Gold bullion a couple months ago.You think they'd do that if this was the "late" innings?

http://www.businessweek.com/news/2011-04-16/texas-university-endowment-storing-about-1-billion-in-gold-bars.html

This is probably the top of the 3rd and I'll prove that with a couple questions. Has our economic house been fixed? Have we satisfied the debts that we owe...better yet, CAN we satisfy the debts that we owe? Are we still printing money (creating more debt) because of these two situations?

Exactly.

As an old time investor you know yourself that Gold eventually accounts for all of the money/debt in circulation, especially when converting back to a "gold backed" system as we obviously will be doing. If that wasnt the case every central bank on this planet wouldnt be buying gold and silver for reserves as they been doing for the past few years.

And from the looks of it, Mexico may be the country to start it off. Their Govt, central bank and the people want a silver backed currency, in which they already have their Silver Libertad's in circulation there. What do you think that will do to the price of Silver? This is just the start, I may not have as much experience as you do....but im not blind brother.

And just to clairfy, I dont think we're looking at an economic collapse though I may have said that before, to be more specific, I think we're witnessing an economic re-engineering, and with that there are going to be some very tough times ahead and I'd be a fool not to prepare myself for whats staring me right in the face. Im not rich so I have to prepare in ways that can do me justice....and im looking to make a profit off of this re-engineering of the economy.

LOL

You think the University of Texas trust fund never makes mistakes?

They make plenty. They used to be a client of mine. I probably advised them on a couple of those mistakes.

Still, they were always one of my favorite clients to go visit. Especially in like late-March, early April. I'd leave this desolate NY landscape with bundled-up, dark-haired, overweight Jewish women - and I'd land in Austin, with a bunch of hot, blonde, courteous Texas coeds who know how to dress and how to treat a man. God, I miss those days.

Look, I hope you make a ton of money in gold. I never begrudge another investor making money.

I'd be careful though. It's seems like you've dug yourself in pretty hard on this position. Don't get married to any position. Better to be rich than right.

[villain_the_foe]

LOL

You think the University of Texas trust fund never makes mistakes?

They make plenty. They used to be a client of mine. I probably advised them on a couple of those mistakes.

Still, they were always one of my favorite clients to go visit. Especially in like late-March, early April. I'd leave this desolate NY landscape with bundled-up, dark-haired, overweight Jewish women - and I'd land in Austin, with a bunch of hot, blonde, courteous Texas coeds who know how to dress and how to treat a man. God, I miss those days.

Look, I hope you make a ton of money in gold. I never begrudge another investor making money.

I'd be careful though. It's seems like you've dug yourself in pretty hard on this position. Don't get married to any position. Better to berich than right.

Everyone makes mistakes, however, you havent shown supporting facts how we're in the late innings, but I can show how UT is buying, China's buying, India's buying, Mexico's buying, and Germany's tight because their gold was sold into the market in NY etc., and this is happening TODAY. On top of that I can show you how we're still borrowing, we're still printing and the markets are still being manipulated. In otherwords, the fundamentals imo on why Gold and silver are going through the roof are still in play. Am I wrong?

You have investment experience....im willing to listen to your point.