Although gold bullion is both a commodity and currency, it has lately become the world’s currency of choice, i.e. a vote of no confidence in fiat paper. This is evident in the fact that the gold price has not only just made an all-time high in U.S. dollar terms ($1,249 on Friday), but also in just about every other currency one cares to mention. I illustrated this in a post a few days ago, entitled “Meet the world’s new currency of choice”.
David Rosenberg, chief economist and strategist of Gluskin Sheff & Associates, shares my enthusiasm for the “barbarous relic”, as it was once described.
He said:
While I am concerned near-term that gold is overbought and could be ripe for a setback; however, unlike the equity market, bullion is in a secular bull market, which means dips, when they occur, are to be bought. Gold can trade down to $1,130 an ounce and none of the trendlines would be broken.
Here is the real interesting part of his analysis:
More to the point, secular bull markets usually end in parabolic blow-offs and we are nowhere near that point – see the chart below for what long-term trough/peak moves across different asset classes looked like in the past and tell us that gold is now in a bubble. Not a chance. And, as we have said in the past, if central banks were ever to be compelled to hold the same share of gold in reserves to back up their respective monetary aggregates, the gold price would rise to $3,000 an ounce.
Click to enlarge:
If anyone has any more rotten "comments" directed to me (for whatever bizarre reason), please email it..right hand side for email>> THANKS!
ReplyDeleteThe truth messenger is always hated by the sheep.
ReplyDeleteGold is just a commodity. I'm tired of hearing this buy gold bull shit every time I turn around. Gold buyers think they are so smart.
ReplyDeleteI'm stocking up on toilet paper. Six months after TSHTF the barter system will be in full swing. My TP will be traded for one bar of gold. That's right! One roll for one bar. So go buy up the gold SUCKERS!!!
217 Idiot, Gold has been real money for 5000 years, the us dollar for about 200, you go and trust that toilet paper, the smart like gold, the stupid like fiat currencies that always fail. Ea does Bizarre mean anything you disagree with or that makes you look bad?
ReplyDelete2:17 TSHTF many times in 2000 yrs..
ReplyDeleteGold has been the currency of choice, nothing has changed..Gold will trade for your house with its entire contents in it..learn about economics for christs sakes..
2:24 what makes me look bad? An article? or a tirade of constant foul words? If you have a comment directed to me use my email>>>>
ReplyDelete2:17 might actually have a point. I'm not saying he is right for sure, but he may be plausible.
ReplyDeleteWho would want gold if there is there is no way of giving it value? WHEN the dollar crashes how will anyone know what gold will be worth? If it will be worth anything, for example one little spec being worth trillions of dollars, wouldn't those people be scared to show that to anyone? Would you not get shot in the back of the head or attacked by a group of people who have nothing to lose?
Gold and precious metals will be worth nothing during the early period when everyone is killing for food and safety. I would much rather have something to offer a group of people; young and fit - you can work labor for your share of food, being very intelligent you can help teach the children possibly, if you're good with a gun, very strong or stout, or even ex-military you can be a guard for your share, if you are mechanically inclined you can help build things or instruct those doing the building, if you are a good cook that is always helpful. I would say that a young, pretty girl in her late teens or 20s would be able to offer sex but then again that could cause problems (leaching onto one guy might make other guys jealous and angry). Which brings up another point - you may wish to have a good social and ethical attitude; level headed, fair, polite, diplomatic, reserved but open, team oriented, and of course - not cocky, annoying, or hostile. I'm sure anyone waving around gold and trying to make a mockery out of people who are scared, outraged, and desparate will do just fine...
I can't imagine why anyone would want to walk around people with gold... that will come way later when the new currency (if there will be one) is being set in place. Economies have crashed amany times in history but not on a global scale and that means there will be no evaluating the worth of precious metals.
510 tell all of this to argentinians and zimbabweins and see what they tell you, they pan for gold daily just to eat. The ones there with precious metals live like kings. Don't believe me look it up and see if I'm lying.
ReplyDelete5:10, tell that to the CHINESE, RUSSIA, INDIA and the rest of the countries that traded FIAT currency for GOLD,..that their GOLD is worthless. I DON'T THINK SO! You are misinformed..GREATLY
ReplyDeleteGordon Liddy says buy gold! LOL
ReplyDeleteYou shit heads keep talking about the track record of gold. We are heading into un-chartered water. 2:17 is brilliant!
Up up and away in my wonderful ballon.We can fly yes we can fly above the skies in my wonderful{Gold and Silver}ballon.
ReplyDeleteRock on shiny stuff!!! Just luv that shit.
5.10.Im just curious are you the product of genetic inbreeding.Just curious...
ReplyDelete5.10 I detect some Inbreeding somewhere in your genetic makeup
ReplyDeleteSpeculative fantasies on PM Hoarders in a possible near future:
ReplyDeleteThe New World Order Elite class will need internal “enemy” diversions to preserve their control After the ‘Great Inflation “,when the value of the dollar is inflated away .And this
is inevitable, as the printing machines are working overtime.
It could soon become ‘common knowledge” that a
perfectly good system and the dollar “really’ lost its value and the economic crisis occurred mainly because of a conspiracy between Muslims and other terrorists ,not to mention “communist” Chinese capitalists and their dupes the silver and “gold bugs” all working in a conspiracy to destroy confidence in the dollar .Everybody knows That paper Money needs the confidence of the public.
It will be made clear to all ,after the fact and when the Elites MSN re-educate the people, that The Muslim Koran with its support for gold and silver currencies was the economic bible of the anti- American subversive anti paper dollar “gold bug” P.M. dupes .
After all didn’t the Muslim Saddam refuse to sell oil in dollars. “Causing” the last Iraq War in order to preserve the Dollar Hegemony and cheap oil ? And now the present “war mongering” Muslim President of Iran is playing the same game undermining the Dollar monopoly price in oil! Hasn’t the dead Osama himself ranted and raved against the Dollar usury Of Great Satan on the tapes the CIA conveniently “Finds” on the internet . Are not the Chinese ‘communists” buying up gold now too?
The gold bugs and silver seller dupes of the terrorists are all daily undermining the confidence in the mighty printed dollar too ! Political ,patriotic, MSN,wisdom may be soon become , that the Gold bugs and silver hoarders were dupes of the anti -American Muslims that bought own America.
The evidence is in plain sight. That both external and domestic terrorist enemies bought down the Dollar , Because of their “hatred for American freedoms” and because they are jealous of the American consumers lifestyle on credit.
Clearly,we may be told ,this subversive minority should not be allowed to profit from their past subversive anti -American activities . Or allowed to be silver pedlars in the future undermining confidence in any new American dollar too, by trying to establish a primitive barter system.
But, Little “Stasis” and flag waving Boy Scout patriots for saving America , can be organised to help the American government to ensure that children turn in their own parents, if they are observed by them , to be subversive silver pedlars.
Armed profiteers, that have deliberately hoarded PM , deliberately planning to profit in the future from Americas Misery!
Criminal Enemies of the people and the Elite for sure!
There will be many disinformation campaigns afoot to try to get people not to store up water, food, ammo; or put savings into Gold and Silver.
ReplyDeleteThe 2% that keep a substantial part of their savings are not as gullible as the sheeple who glue themselves to American Idol and Letterman.
They won't be swayed, don't waste your time. Government flag-wavers and corporate shills please keep your money in a bank.
Common sense is that you get your water, food, guns/ammo and other supplies then get some gold and silver. So it is not an either - or but rather do both. Sure gold and silver might not be tradeable in the worst case scenario. But when fiat money goes close or to ZERO value then the gold and silver will be worth something. As indicated by 5:15 and 5:17.
ReplyDeleteBut if someone else including the government wants your food, water, gold, silver how are you going to keep it?
4:05- I hope I'm wearing one of my nice silk shirts that day, your hand will slide up your back. Then you will need one of mt soap bars. One soap bar for two bars of your gold.
ReplyDelete812 preppers have many soap bars, preppers wont need anything, once things die down, pm holders will be doing well, you with your soap, not so much.
ReplyDeleteHAHA, today makes all pm holders BAGHOLDERS, once again.
ReplyDeletePM's are useless, they will manipulate them to ZERO
It is true and history shows ,when viewed in the long term, that precious metals have a labour created value and a practical use value in industry and can circulate in an economy as a storable easily exchanged more or less “permanent” “concrete” socially recognised form of abstract labour value ,
ReplyDeletecollected concentrated dead past labour created value in a compact form ,exchangeable because of their intrinsic material values.
This long term historical view creates a certain fetish among some on the permanent material nature of value and wealth in precious metals and their possible uses for usury.
But there is short term and long term use value and exchange value.
Whether PM remain or are permitted to remain an EASILY EXCHANGABLE form of wealth for small people in an economy and society controlled by a dictatorial elite manipulating public opinion in an economic crisis in the SHORT TERM as currency ,is a short term political question .
Either the elite class will decide or the people in struggle. Ppaper or metal for example
Thus while retaining their “ permanent” concrete
material ,natural , properties as storable form of value long term ,they may lose their exchange value in the short term in some politically manipulated situations.
Those relying on silver and gold and without faith in the people to decide these questions
may indeed become “bag holders” of politicaly un-exchangeable permanent value waiting for history to again socially recognise and restore its permanent value .
In the short term -and that may be a hungry wait -as politics and classes struggle and fight over the distribution of wealth and forms of socially recognised and imposed value forms in the society .
all commodities, including gold and silver will find a value post shtf. Real market conditions will come into play, and people will find the real value of something pretty quick. Precious metals will hold high value, but a nice 4-pack of tp will get you far in a post shtf world. I also suspect that many females who would never trade their favors for necessities in normal times, will find their favors hold high value in stressfull times. No surprise there. It will be amazing at what people will place in high regard when the right conditions exist. I have a feeling we'll get the chance to find out real soon.
ReplyDelete