Alex Stanczyk

The Gold to Oil Ratio Does Matter

Mike: Very good points, especially the part about the arabs selling half their oil for paper.

The Fear Bubble: Treasuries and Gold

I laughed.

ScotiaMocatta: Gold Trends to Snowball

Now up to a staggering 43.2% ( charts: www.rapidtrends.com/bl.../ )

I have followed precious metals for a long time...and this is definitely interesting.

With Tbills going negative yield the only logical next step to park capital will be gold. If that happens on the scale that capital flowed into Tbills...all I can say is wow.

Dow Will Equal Gold in 2009

Bold prediction.

History shows these runs take longer than a year, but we are in a unique time for sure.

Also...too much exuberance for a rally? Isnt that when rallies occur?

Lastly...the dollar as a safe haven? I literally laughed when I read that.

I have an idea. Anyone who wants to bet me the dollar is a safe haven:

1. Email me so we can exchange info, and the amount you wish to bet (you can get my email from my blog)

2....put your money in dollars...I will put mine in gold and silver.

3. Lets compare notes in three years.

Gold Price and the Money Supply

One way to value gold is not based on its increase, but rather its lack of decrease.

Gold is simply a way to store wealth that isnt diminishing in buying power over time.

Compare it to dollars, that are inflating at a rate of almost 18% a year, thus losing value at a rate of 18% a year.

Gold isnt being inflated.

2000 years ago an ounce of gold would fully clothe a man in the finest robe, sandals, hand crafted belt etc.

Today that same ounce of gold will clothe a man in similarly fine attire.

It holds buying power (and no I am not talking about shot 20 year cycles...thats what people focus on because in an inflationary economy ROI sucks up all of the common mans attention).

Thats its value.

The End of the Gold Carry Trade

"The whole reason why there is a credit crisis in the first place is because nobody trusts any institution that isn’t owned, backed, or financed by government debt. So where does that leave the investors?"

Great point. In reality any government is truly just a representation of the citizens of that country's wealth and ability to pay taxes. That is, after all, where a governments money comes from.

So really, people are buying US Citizens credibility to pay. Only problem there is US Citizens for the most part are in debt to the hilt, losing their jobs, and some are more concerned about putting the food on the table than buying Christmas gifts.

Gold on the other hand, requires no government to back up its value. It has had value for over 5000 years of human history. Not going to change tomorrow.

www.rapidtrends.com/bl.../

Is the Price of Gold Being Supressed?

Time for disciplined money.

Economic engineering once again to be proven smoke and mirrors.

Cant print your way to wealth:
www.rapidtrends.com/bl.../

$3.5B Saudi Gold Deal Is Huge Compared with $6.5B Consumer Record

Actually...rumors...al... not news..are still valuable..if you recognize them for what they are.

Read between the lines. News..and rumors alike...are often started with motives.

Cui Bono.

Gold Market Confusion: Record Physical Demand Collides with Paper Destruction

24hr Gold just put up a pretty cool system that tracks what gold is selling for on ebay. Real time markets that arent manipulated. Very cool.

www.rapidtrends.com/bl.../

Surprising Call for Return to the Gold Standard

A topic that apparently brings the venom out of the woodworks.

Den of vipers, anyone?

“If the American people ever allow private banks to control issue of their currency, first by inflation, then by deflation, the banks and the corporations that will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

—Thomas Jefferson

Gold: Not Just for Gold Bugs Anymore

If a person bothers to study history it will become clear this isnt some new idea.

Currency systems have gone from disciplined money (aka fixed to gold or silver in some way) to undisciplined (ie print as much as you like) for thousands of years.

It is no more cataclysmic to go from pure paper to gold backed as it is to go from gold backed to pure paper.

How many people even noticed we went from gold backed to pure paper in 1971?

The average person has no clue it even occurred.

What Does the Recent Saudi Gold Rush Mean?

I dont think it takes a conspiracy theorist to consider that the Arabs are thinking about a gold back currency.

Thats actually kind of old news.

If I was the Arabs, and saw a potential for a USD devaluation, which doesnt take a conspiracy theorist to realize is possible right now...my next thought would be to how I could protect myself from such an event.

A gold backed regional Arab currency would fit the bill quite well.

Make the world pay for oil in Dinars (gold backed) would effectively make the world pay for oil in gold.

Now that would be smart business, imo.

Why Isn't Jason Zweig Bashing Gold?

Cracks me up. Gold goes up when stocks and dollar goes down, and when economy is dim.

So in other words, supply and demand having nothing to do with it, the only thing that affects the gold price is its correlation to something else, which has only behaved this erratically a few times in the last 150 years.

Ahh the comedy.

Ten Reasons Why Gold Isn't Above $1,000

Gold is actually holdings its ground in this selloff quite well.

Chart: www.rapidtrends.com/bl.../

U.S. Economy on the Brink; Metals, Solid Currencies Are Best Option

Wow, great article.

"Since we’ve left the gold standard, the U.S. dollar has depreciated by 45 times, or 97.78%, in relation to gold. "

www.rapidtrends.com/bl.../