Forget Gold, It's Time to Think Platinum [View article]
greedalef, you could say I am a platinum bug. In fact, I recommended buying it back in July and about $500 an ounce cheaper. I still really like the white metal.
Gold: An Ugly Chart in Just About Any Currency [View article]
Why no mention of the looming sovereign debt downgrades with Portugal or Japan? Why not mention of the next round of the credit crisis with its catalyst in Austria? Both will have tremendous effect on the Yen and Euro. Just tea reading? We saw how well that worked for all the black boxes last time there was a credit crisis...
aussiereader4, what effect do you think legal tender laws and tax codes have on gold? Gold is a competing currency to the little colored coupons and those laws are regulatory barriers to entry that attempt to prevent its circulation in ordinary daily transactions by raising the cost. This decreased velocity leads to a decline in the value of the metal because of its decreased demand from resulting from less utility.
Then there are the mountains of evidence acquired by GATA that shows the central banks only have 1/3rd to 1/2th of the physical gold they claim: www.runtogold.com/2005.../
One only has to understand the world's liquidity pyramid to understand gold's role in the world economy. Because gold abuts the little colored coupons it will generally have an inverse correlated relationship when priced in the synthetic commodities but that does not mean it will decline in purchasing power.
What the iPad Could Mean for the News Business [View article]
Precisely Matt. The 20th century media that caters to the old economy is evaporating as the Internet causes a sea change in the environment allowing the long-tail tribes to form. As a result, those organizations that attempt to cater to the masses will, for the most part, continue to lose their influence.
For example, CNBC's Nielsen ratings were down 52% year over year and of those few people still watching 40% were using a laptop. Sure, someone may have the TV on but they are paying attention to the article on Seeking Alpha or their favorite blog with a reader that they *trust*.
Coupled with the increased economic efficiency that comes from open source software like Wordpress and lack of fixed costs the ancient news organizations have a formidable fight to even survive and, in my opinion, do not have much place in the new economy because they do not and will not be able to add enough value in comparison to their costs. What, bailouts for newspapers? All things like the tablet do is put more pressure on them!
greendalef, thank you for catching this area which, in my haste, I left a bit confusing.
Gold - $922 to $1,135 or 23.1% in little colored coupons Platinum - $1,118 to $1,618 or 44.7% in little colored coupons
Price of platinum in gold ounces - 1.213 to 1.426 or + .213 ounces of gold for a 17.5% return in gold. This is what I attempted to convey in the paragraph under the second chart. Like Zimbabweans I do not really care what my IRR or ROI is in little colored coupons. Any minimally skilled capital allocator should easily be turning out double-digit returns in this QE environment. But what I want to know is my IRR, ROI and net worth measured in gold ounces.
But just because I shine the light on Obama's policies for what they are please do not mistakenly or ignorantly call me a neocon. I cannot be associated with any of that immoral garbage like preemptive and aggressive war or sending 30,000 more troops to Afghanistan.
The truth of the matter is that Obama is just Bush on steroids; two wings on the same bird with the same destination. You are their livestock:
Tack, but that is the issue, the US system does not operate under capitalism and has not been for about 100 years. It is a centrally planned economy with an institution that sets the supply and cost of currency with the protection of legal tender laws in violation of the US Constitution. This unethical currency production which amounts to confiscation through inflation which is a form of taxation without representation is what provides the moral hazard for the number pushing capital destroyers to privatize the gains through Ponzi scheme gambling and socialize the losses through massive unconstitutional bailouts. When the productive members of society are punished while the unethical and wasteful are rewarded then the society is destined for decline.
Consequently, Paulson's gold trade is the bet on that because it is the antithesis of the FRN$ which represents the common stock of the US and is the largest bubble of them all. Of course, it will be interesting to see whether Paulson can stay solvent this time around because this bubble is going to take a lot longer to burst than any other and even if he is successful I doubt he will sleep very easy on his hoard.
As empires fall things can get real dicey real quick and the parasitic bankers often find themselves the subject of public furor with things like the French Revolution or Section 19 of the 1792 Coinage Act in America. For example, if Wall Street were being executed instead of receiving bailouts then the economy would be on its way towards recovery a lot sooner. Goldman Sachs recognizes the tea leaves and their employees are getting CCWs and have been told to gather in public in groups no larger than 12.
Tack wrote, "Without the guys moving the numbers (capital) around on the computers, there would be no supermarket in which the clerk might stock shelves. It's capital formation, movement and deployment that creates businesses, jobs and overall societal wealth. That's how capitalism works."
Unfortunately, I think many are missing the main point of this article which can be summed up in the paragraph:
"The results become even more stark when using gold as the numeraire, or presentation currency under International Accounting Standard 1. I shudder to think of the change in a Venezuelans financial statements in a single day from this devaluation if most of their wealth was located in Venezuela. But the income statement and balance sheet destruction is not limited to Venezuelans but taking place in all major currencies."
Seriously, has anyone attempted to use gold as their numeraire or is this up in the stratosphere? The title of this site is: ***SEEKING ALPHA***
jrainspe, not only do you misstate basic monetary theory but you provide no analysis and make material misstatements of Federal law.
For example, I am not sure you understand the legal nuances between legal tender, United States currency, United States money and lawful money. Your assertion that "Federal Reserve Notes, which are the only legal tender 'all debts, public and private'. By law, refusal of a payment offering legal tender is the same as an acceptance and the debt is cleared."
Under 31 USSC 5112 there are legal tender coins of gold, silver and other materials. Under 31 USSC 5118 a gold clause may be built into a contract requiring payment in gold.
Just because you do not avail yourself of gold clauses or use gold in ordinary transactions does not preclude the fact that others do. Some of us have these clauses built into contracts such as mortgages or leases and demand payment in gold.
Thus, as User 316986 has correctly asserted the consequence of these provisions, our contracts are protected under Federal law from the depreciation of the drooping FRN$ currency.
On Nov 25 08:04 AM jrainspe wrote:
> <<Gold is money>> > > Money is anything that is generally accepted as payment for goods > and services and repayment of debts. I don't believe that gold qualifies > in the US under that definition. > > In fact, I wish my mortagage holder would refuse to take my offer > of Federal Reserve Notes, which are the only legal tender "all debts, > public and private". By law, refusal of a payment offering in legal > tender is the same as an acceptance and the debt is cleared. > > Come on all you gold bugs, buy my mortgage and demand I pay it in > gold.....
kohalakid, please provide a credible and verifiable citation for your assertion that 'The GLD prospectus specifically says the fund does not lease gold and does not use futures or forward contracts. The only way to create GLD shares is to deliver physical gold to the trustee's custodian depository.'
I have thoroughly analyzed the GLD documents for the prospectusly impaired:
Additionally, in a report from Deloitte, a big four accounting firm who also performed the audit of GLD's 2008 10K, there is a statement in direct opposition to your assertion. On page 4 it states, "If the proposed ETF tracks a commodity, it buys ***or borrows*** certificates of ownership of that commodity." [emphasis added]
Consequently kohalakid your statement appears to be unsubstantiated, unverifiable and in opposition to recognized authoritative statements contained in the official documentation and in reports by recognized authorities.
Doc224899, the illusion of security and stability is there isn't it! You heard about the Royal Canadian Mint scandal right? Darn Canooks!
Gold Party Intermission Is Nearly Over [View article]
Looks like this article was syndicated through SA a little late as I published it Oct 28 on www.RunToGold.com. Gold has since risen from about $1,030 to $1,060 or about 3%. Sorry SA readers for missing the actionable trade. If you want to get free email updates when a new article is posted just head over to the blog and sign up.
I noticed a similar comment elsewhere on the Interwebs about being cutoff about the carry-trade issue.
In defense of BNN we were well beyond the time allocated for the interview and had strayed outside the points I had given them in the summary. The interview was live, impromptu and guided by notes I provided to them. I did not feel 'boxed in' nor did I feel treated like a hostile witness and I know how to cross examine hostile witnesses :) Takes one to know one! Overall and from my perspective I think they were very generous.
On Oct 19 01:39 AM Slvrizgold wrote:
>Did > you notice how the BNN guy cut him off when he started talking about > how the US dollar is becoming the new carry currency? People always > make general broad brush arguments that "its not in anyone's interest > for the dollar to fall". BS!!! People with lots of capital will > make large bets and will benefit massively via the dollar carry trade.
Gold Rises, the Dollar Falls: Is This Really a Good Thing? [View article]
Trader Mark, You are right that this rise for the monetary metal is just getting started because of the unwinding of the gold carry trade and start of the dollar carry trade. Mr. Alan Greenspan testified twice before Congress saying 'Central banks stand ready to lease gold in increasing quantities should the price rise.' Central banks carry gold in the vault and gold out on loan as the same line item; in effect they report cash and accounts receivables as the same thing. As a result, central banks have only 1/2 to 1/3 of the physical gold as reported on their balance sheets.
This means they hold not 30,000 tons but more like 8-15,000 tons of physical metal. All of this has been thoroughly documented by publicly available documents. To add further pressure the dollar is now becoming the carry trade currency. The unwinding of that massive central bank position will be extremely bullish for the monetary metals priced in their fiat coupons. As the value of their fiat currency coupons are valued like the common stock of nations and because of gold's rise in all major currencies it does not bode well for governments worldwide.
Gold: You Can't Sell High If You Didn't Buy Low [View article]
Dudley, Even at $1200 the price of gold will be extremely low because of the unwinding of the gold carry trade. Mr. Alan Greenspan testified twice before Congress saying 'Central banks stand ready to lease gold in increasing quantities should the price rise.' Central banks carry gold in the vault and gold out on loan as the same line item; in effect they report cash and accounts receivables as the same thing. As a result, central banks have only 1/2 to 1/3 of the physical gold as reported on their balance sheets. This means they hold not 30,000 tons but more like 8-15,000 tons of physical metal. All of this has been thoroughly documented by publicly available documents. The unwinding of that massive central bank position will be extremely bullish for the monetary metals priced in their fiat coupons.
The Arithmetic of Gold: Why Its Price Has No Ceiling [View article]
JudeJin, perhaps accuracy should start with you. Alan Greenspan testified twice before Congress saying 'Central banks stand ready to lease gold in increasing quantities should the price rise.' Central banks carry gold in the vault and gold out on loan as the same line item; in effect they report cash and accounts receivables as the same thing. As a result, central banks have only 1/2 to 1/3 of the physical gold as reported on their balance sheets. This means they hold not 30,000 tons but more like 8-15,000 tons of physical metal. All of this has been thoroughly documented by publicly available documents.
> whoever comments on gold please get the facts straight. central banks > only have 30000 tons of gold. the fed has 8000 tons, china's central > bank has 1000 tons. at today's price, china's fx reserve can buy > around 60000 tons of gold, that's 30 years of world's production. > > > the world only has around 150000 tons of gold ever mined since the > big bang.
Forget Gold, It's Time to Think Platinum [View article]
July 2009 - SA called it Bitten By The Platinum Bug:
www.runtogold.com/2009.../
18 Jan 2010 - Is Platinum Overvalued:
www.runtogold.com/2010.../
Gold: An Ugly Chart in Just About Any Currency [View article]
aussiereader4, what effect do you think legal tender laws and tax codes have on gold? Gold is a competing currency to the little colored coupons and those laws are regulatory barriers to entry that attempt to prevent its circulation in ordinary daily transactions by raising the cost. This decreased velocity leads to a decline in the value of the metal because of its decreased demand from resulting from less utility.
Then there are the mountains of evidence acquired by GATA that shows the central banks only have 1/3rd to 1/2th of the physical gold they claim:
www.runtogold.com/2005.../
One only has to understand the world's liquidity pyramid to understand gold's role in the world economy. Because gold abuts the little colored coupons it will generally have an inverse correlated relationship when priced in the synthetic commodities but that does not mean it will decline in purchasing power.
www.creditcontraction....
What the iPad Could Mean for the News Business [View article]
For example, CNBC's Nielsen ratings were down 52% year over year and of those few people still watching 40% were using a laptop. Sure, someone may have the TV on but they are paying attention to the article on Seeking Alpha or their favorite blog with a reader that they *trust*.
Coupled with the increased economic efficiency that comes from open source software like Wordpress and lack of fixed costs the ancient news organizations have a formidable fight to even survive and, in my opinion, do not have much place in the new economy because they do not and will not be able to add enough value in comparison to their costs. What, bailouts for newspapers? All things like the tablet do is put more pressure on them!
Is Platinum Overvalued? [View article]
Gold - $922 to $1,135 or 23.1% in little colored coupons
Platinum - $1,118 to $1,618 or 44.7% in little colored coupons
Price of platinum in gold ounces - 1.213 to 1.426 or + .213 ounces of gold for a 17.5% return in gold. This is what I attempted to convey in the paragraph under the second chart. Like Zimbabweans I do not really care what my IRR or ROI is in little colored coupons. Any minimally skilled capital allocator should easily be turning out double-digit returns in this QE environment. But what I want to know is my IRR, ROI and net worth measured in gold ounces.
Is Platinum Overvalued? [View article]
www.runtogold.com/2009.../
But just because I shine the light on Obama's policies for what they are please do not mistakenly or ignorantly call me a neocon. I cannot be associated with any of that immoral garbage like preemptive and aggressive war or sending 30,000 more troops to Afghanistan.
The truth of the matter is that Obama is just Bush on steroids; two wings on the same bird with the same destination. You are their livestock:
www.youtube.com/watch?...
John Paulson's High Risk Hubris [View article]
Consequently, Paulson's gold trade is the bet on that because it is the antithesis of the FRN$ which represents the common stock of the US and is the largest bubble of them all. Of course, it will be interesting to see whether Paulson can stay solvent this time around because this bubble is going to take a lot longer to burst than any other and even if he is successful I doubt he will sleep very easy on his hoard.
As empires fall things can get real dicey real quick and the parasitic bankers often find themselves the subject of public furor with things like the French Revolution or Section 19 of the 1792 Coinage Act in America. For example, if Wall Street were being executed instead of receiving bailouts then the economy would be on its way towards recovery a lot sooner. Goldman Sachs recognizes the tea leaves and their employees are getting CCWs and have been told to gather in public in groups no larger than 12.
Tack wrote, "Without the guys moving the numbers (capital) around on the computers, there would be no supermarket in which the clerk might stock shelves. It's capital formation, movement and deployment that creates businesses, jobs and overall societal wealth. That's how capitalism works."
Currencies Can Evaporate, But Not Silver or Gold [View article]
www.runtogold.com/2009.../
Unfortunately, I think many are missing the main point of this article which can be summed up in the paragraph:
"The results become even more stark when using gold as the numeraire, or presentation currency under International Accounting Standard 1. I shudder to think of the change in a Venezuelans financial statements in a single day from this devaluation if most of their wealth was located in Venezuela. But the income statement and balance sheet destruction is not limited to Venezuelans but taking place in all major currencies."
Seriously, has anyone attempted to use gold as their numeraire or is this up in the stratosphere? The title of this site is: ***SEEKING ALPHA***
www.runtogold.com/nume...
Drooping Vietnam Dong Devalued [View article]
For example, I am not sure you understand the legal nuances between legal tender, United States currency, United States money and lawful money. Your assertion that "Federal Reserve Notes, which are the only legal tender 'all debts, public and private'. By law, refusal of a payment offering legal tender is the same as an acceptance and the debt is cleared."
Under 31 USSC 5112 there are legal tender coins of gold, silver and other materials. Under 31 USSC 5118 a gold clause may be built into a contract requiring payment in gold.
Just because you do not avail yourself of gold clauses or use gold in ordinary transactions does not preclude the fact that others do. Some of us have these clauses built into contracts such as mortgages or leases and demand payment in gold.
Thus, as User 316986 has correctly asserted the consequence of these provisions, our contracts are protected under Federal law from the depreciation of the drooping FRN$ currency.
On Nov 25 08:04 AM jrainspe wrote:
> <<Gold is money>>
>
> Money is anything that is generally accepted as payment for goods
> and services and repayment of debts. I don't believe that gold qualifies
> in the US under that definition.
>
> In fact, I wish my mortagage holder would refuse to take my offer
> of Federal Reserve Notes, which are the only legal tender "all debts,
> public and private". By law, refusal of a payment offering in legal
> tender is the same as an acceptance and the debt is cleared.
>
> Come on all you gold bugs, buy my mortgage and demand I pay it in
> gold.....
Vietnam: Gold Already Trading at $1,300 Per Ounce [View article]
Would sure be nice if we could likewise resolve the issue: What is a dollar?
www.runtogold.com/2009.../
What in the world are we talking about Berkshire in this thread for?
On Nov 13 08:56 AM Roger Knights wrote:
> PS: What I mean is this: were ordinary ounces used in the conversion
> from taels?
Gold Bug Feeding Frenzy [View article]
I have thoroughly analyzed the GLD documents for the prospectusly impaired:
www.runtogold.com/2008.../
www.runtogold.com/2009.../
Additionally, in a report from Deloitte, a big four accounting firm who also performed the audit of GLD's 2008 10K, there is a statement in direct opposition to your assertion. On page 4 it states, "If the proposed ETF tracks a commodity, it buys ***or borrows*** certificates of ownership of that commodity." [emphasis added]
(page 4) runtogold.com/images/D...
(audit statement on page 70-71) www.spdrgoldshares.com...
Consequently kohalakid your statement appears to be unsubstantiated, unverifiable and in opposition to recognized authoritative statements contained in the official documentation and in reports by recognized authorities.
Doc224899, the illusion of security and stability is there isn't it! You heard about the Royal Canadian Mint scandal right? Darn Canooks!
www.runtogold.com/2009.../
Gold Party Intermission Is Nearly Over [View article]
On the Rise of Gold [View article]
Thanks.
I noticed a similar comment elsewhere on the Interwebs about being cutoff about the carry-trade issue.
In defense of BNN we were well beyond the time allocated for the interview and had strayed outside the points I had given them in the summary. The interview was live, impromptu and guided by notes I provided to them. I did not feel 'boxed in' nor did I feel treated like a hostile witness and I know how to cross examine hostile witnesses :) Takes one to know one! Overall and from my perspective I think they were very generous.
On Oct 19 01:39 AM Slvrizgold wrote:
>Did
> you notice how the BNN guy cut him off when he started talking about
> how the US dollar is becoming the new carry currency? People always
> make general broad brush arguments that "its not in anyone's interest
> for the dollar to fall". BS!!! People with lots of capital will
> make large bets and will benefit massively via the dollar carry trade.
Gold Rises, the Dollar Falls: Is This Really a Good Thing? [View article]
This means they hold not 30,000 tons but more like 8-15,000 tons of physical metal. All of this has been thoroughly documented by publicly available documents. To add further pressure the dollar is now becoming the carry trade currency. The unwinding of that massive central bank position will be extremely bullish for the monetary metals priced in their fiat coupons. As the value of their fiat currency coupons are valued like the common stock of nations and because of gold's rise in all major currencies it does not bode well for governments worldwide.
www.runtogold.com/2005.../
Gold: You Can't Sell High If You Didn't Buy Low [View article]
www.runtogold.com/2005.../
The Arithmetic of Gold: Why Its Price Has No Ceiling [View article]
www.runtogold.com/2005.../
On Oct 07 09:21 AM JudeJin wrote:
> whoever comments on gold please get the facts straight. central banks
> only have 30000 tons of gold. the fed has 8000 tons, china's central
> bank has 1000 tons. at today's price, china's fx reserve can buy
> around 60000 tons of gold, that's 30 years of world's production.
>
>
> the world only has around 150000 tons of gold ever mined since the
> big bang.