Seeking Alpha

Felix Salmon hopes gold "will continue to fall, that goldbugs will look increasingly silly, and...

Felix Salmon hopes gold "will continue to fall, that goldbugs will look increasingly silly, and that as a result Americans with savings will conclude that the best thing to do with those savings is to put them to work in a productive manner" - out of fear-based assets like gold, Treasurys and cash and into greed-based assets like stocks and bank loans so more money flows through the economy.
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Comments (35)
  • Bret Jensen
    , contributor
    Comments (11180) | Send Message
     
    There certainly are better inflation hedges than gold....http://seekingalpha.co...
    15 Apr 2013, 06:58 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Land amigo ! Better yet land with water as water is the real oil/gold star !
    15 Apr 2013, 07:05 PM Reply Like
  • ltsgt1
    , contributor
    Comments (1521) | Send Message
     
    Gold is not an inflation hedge. It's a hedge against currency collapse.

     

    http://bit.ly/128ibVE
    15 Apr 2013, 07:30 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    Gold is rock solid as a hedge against Ben Bernanke.

     

    Judging a 2,300 year old store of value against a two day chart is just plain stupid...Felix.
    16 Apr 2013, 04:01 AM Reply Like
  • moonwalker2
    , contributor
    Comment (1) | Send Message
     
    Real estate works. Rental property.
    Other than that I wouldn't consider equities or bonds. . . the market is totally manipulated and utterly broken.
    You are on your own. Gold will come in handy when mega-inflation begins, and the printing is world-wide so it's inevitable.
    16 Apr 2013, 06:00 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Yes, and then the BRICS an other will attack even more & viola..The Reserve will be dropped ! And,as Sec J Baker 111 did say ! We are Greece !

     

    Central Banksters ALL ( or all except the US & now Cyprus) wanted bullion as they see what is on the near horizon ! BRICS have there clearing bank and China prods along signing swap agreements ! And, the IMF is using more an more SDR 8s..

     

    Does Felix rub his Fed Ben doll and then write or does he sleep with a Krugman teddy ?
    15 Apr 2013, 07:00 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Lol...I'm sure you know, but for others: one can keep track of SDR daily valuation here: http://bit.ly/YqYHHi. Might be useful to track as currencies fluctuate. Yes, I've heard many rumors about loans being made in SDRs over other currencies, given the wars. The IMF isn't exactly trustworthy, as Hazlitt pointed out early on (undo the IMF, c.1963...yet he also wrote about an international standard).
    15 Apr 2013, 08:21 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Hi White, I am on their email list ! Yes,but, try finding the stats on SDR8s.. There very hush hush an used for M/E an BRICS an not published since DSK
    15 Apr 2013, 08:53 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Care to give us a tutorial on SDR8s? Perhaps it is a basket of 8 currencies, an SDR "demanded by BRICs?"

     

    (BTW, your posts look suspiciously like those of the old DaLatin...not related are you?)
    15 Apr 2013, 10:40 PM Reply Like
  • RS055
    , contributor
    Comments (3316) | Send Message
     
    Yes we should all invest based on Felix's sophomoric moral values. yes thats the ticket!
    15 Apr 2013, 07:00 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (3465) | Send Message
     
    Do you actually lose money if you don't sell? I had no clients selling today and neither did my clients. It was a record day in sales though. Wonder what the smart investor is doing?
    15 Apr 2013, 07:02 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (3465) | Send Message
     
    That was supposed to say "neither did my suppliers."
    17 Apr 2013, 05:14 AM Reply Like
  • WMARKW
    , contributor
    Comments (10700) | Send Message
     
    Re: Gold Demand:

     

    "Meanwhile, reports of strong demand for physical gold are coming in from across the region. Physical dealers have noted a shortage in gold bars because of the demand, pushing up premiums for gold bars in Singapore and Hong Kong, Reuters said today.

     

    Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal.

     

    In India, the world’s largest gold consumer, the plunge may make bullion more affordable, said Mehul Choksi, chief executive of Gitanjali Gems, the nation’s biggest retailer of jewellery and diamonds by sales.

     

    Sales from the Perth Mint may climb even as gold rebounds as some people wait for the price to advance before buying, Moffatt said. “We’ll see a fair bit of buying on renewed strength,” he said.

     

    Chow Sang Sang’s gold-jewellery sales increased 50 per cent last weekend from the weekend before after prices slumped on April 12, Hong Kong’s Ming Pao Daily reported today, citing Lau Hak-bun, the company’s sales director.

     

    The Perth Mint’s sales of gold coins climbed 49 per cent to 97,541 ounces in the three months ended March 31 from a year earlier, according to data from the facility in Western Australia that was founded in 1899."

     

    http://bit.ly/17HNf0N
    18 Apr 2013, 12:01 AM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (3465) | Send Message
     
    Thanks Wmark, I used to have the domain buygoldjapan.com and the .jp version of it. Perhaps I should have kept them!
    18 Apr 2013, 12:18 PM Reply Like
  • RS055
    , contributor
    Comments (3316) | Send Message
     
    Young Felix would gladly hand all his moola to the government so they can put it to "productive"(hehe) use. Such dewey eyed idealism - how old is he anyhoo?
    15 Apr 2013, 07:03 PM Reply Like
  • Lowell L Morse
    , contributor
    Comments (11) | Send Message
     
    Again I will use your own words....the best thing to do with those savings is to put them to work in a productive manner" -

     

    And where prey tell "monsour" would that be....
    15 Apr 2013, 07:07 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (350) | Send Message
     
    Is Felix Salmon the new Paul Krugman? Interesting reaction from the bugs. Anyhoo the GLD money flowed to ZB today. (tears) Felix is right. We want to live in a world where investors want to invest in things more productive than gold and 30-year bonds. Or sprinkling bombpacks along a Marathon route. Gold is fear. Treasuries are fear. And whoever killed those people in Boston was afraid as well.

     

    I'd like to say I'm not afraid of the future but I am short ZBs.
    15 Apr 2013, 07:16 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Who is Felix Salmon?

     

    When equity and other asset sectors become overbought (inflated), they are not good hedges - risk can outweigh reward going forward. I have not been bullish on gold/silver since Sept, and have traded the currency (long certain USD pairs and dixie) and Treasury markets since with gains. The latter have been hedges, but they are trades, not buy and hold. Productive investments are what I consider optimal. This is not the same as "push a buy key and wait" exchange traded markets.
    15 Apr 2013, 07:22 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Felix Salmon is farm raised Salmon.If he was a wild salmon he'd be more savvy !
    15 Apr 2013, 07:25 PM Reply Like
  • denkend
    , contributor
    Comments (79) | Send Message
     
    you know they said the same thing in 2006-2008 before the crash.That people should invest in the markets and look where it got them.They are broke even from then or almost up abit.Its called taking the lambs to slaughter.You let them come in to two to a mania stage without any reason.Then you crash it so their left holding the bag until it corrects to that level again.
    15 Apr 2013, 07:30 PM Reply Like
  • Anne Bonney
    , contributor
    Comments (105) | Send Message
     
    Sometimes wisdom is learned by hard lessons. Wish Salmon all the luck in the world.. Really.
    15 Apr 2013, 07:31 PM Reply Like
  • Joe2922
    , contributor
    Comments (442) | Send Message
     
    Bears LOVE to eat salmon alive as they swim upstream!
    Major top forming:
    http://bit.ly/WpVqYk

     

    Buy all the way down!
    15 Apr 2013, 07:56 PM Reply Like
  • casper1918
    , contributor
    Comments (29) | Send Message
     
    All the reason to buy gold are still in place. I trust no one at major brokerage houses or the government, including the FED. They can manipulate gold and stocks for just so long. Gold has always been a store of money. I keep a 100,000 Reichmark bill printed in 1922 to remind me that it once took a wheel barrow full of those to buy a loaf of bread. Paper when devalued by a bankrupt government isn't worth anything.
    15 Apr 2013, 08:46 PM Reply Like
  • whaddyamean?
    , contributor
    Comments (514) | Send Message
     
    And some of us hope that Felix Salmon "will continue to utter negative predictions, will look increasingly silly and that as a result Americans with savings will look elsewhere for investment advice".
    15 Apr 2013, 10:21 PM Reply Like
  • Lem1840
    , contributor
    Comments (3) | Send Message
     
    I wonder why this Felix Salmon cares so much?

     

    Let's wait and see what gold does as credit expansion through bank lending, which is accelerating, effectuates an increase in money velocity.
    15 Apr 2013, 10:44 PM Reply Like
  • cts037
    , contributor
    Comments (9) | Send Message
     
    I don't know or care if and when gold bugs will look silly (they actually will not), but felix Salmon whoever he is looks silly already.
    16 Apr 2013, 02:30 AM Reply Like
  • BJLMD
    , contributor
    Comments (72) | Send Message
     
    Confusing that equities and gold both go down together, maybe for different reasons. I don't trust anyone anymore. Im sure the good old folks at Go-dman will accumulate it slowly as they scared everyone out of their hard earned positions with their recommendation to short gold last week. I know that we have a new economic order and that the old ideas that gold is money and a store of value doesn't help those at the top of the pyramid, but I disagree and am staying in my gold and silver positions. I will probably add more at these levels and will not look for quick gains but do expect that it will be worth significantly more when I want to retire in 15 years. I figure they can fool some of the people for some of the time but you can't fool everyone forever.
    16 Apr 2013, 02:34 AM Reply Like
  • tomchiodo
    , contributor
    Comments (2) | Send Message
     
    And then as soon as "more money flows through the economy", that will cause Velocity to surge and create massive inflation, which returns capital back into Gold/Silver. Its a trap. Might as well stay the course and wait for stop loss sellers to exit, Short-sellers to cover, and bargain buyers to step in. This is truly ridiculous. And what would be even MORE ridiculous would be to panic sell into this mess.
    16 Apr 2013, 02:51 AM Reply Like
  • uncensored patriot
    , contributor
    Comments (61) | Send Message
     
    Like he and the rest of Wall Street are concerned about the economy other than their own personal finances??? Sounds too self-serving and self-righteous for me.
    16 Apr 2013, 02:55 AM Reply Like
  • merena
    , contributor
    Comments (4) | Send Message
     
    Gold has for thousands of years been revered as a metal of value as a money and for industrial use as well as the most precious metal for jewelry not to mention an inflation hedge and a safety net when a currency fails. All of a sudden the Americans especially those on Wall Street decide it has little value. We are an arrogant people.
    16 Apr 2013, 06:22 AM Reply Like
  • ddearborn
    , contributor
    Comments (135) | Send Message
     
    Hmmm

     

    Wow the FED needs a thousand tons of gold that they don't have and presto gold drops 30%. And bye the way take a good long look at exactly who it is that is holding the majority of the short positions in gold and silver before the metals got crushed. You will find that the same banking, wall street and FED interests that have the means, motive and opportunity to crash metals to be holding those positions. Talk about a coincidence!
    16 Apr 2013, 07:14 AM Reply Like
  • bnkd
    , contributor
    Comments (49) | Send Message
     
    Wall street firms recommending to sell and shorting gold and silver and start buying as individual investors are selling in panic at depressed prices would amount to market manipulation. No questions from SEC ?
    16 Apr 2013, 07:52 AM Reply Like
  • Jhalgren
    , contributor
    Comments (134) | Send Message
     
    SEC is a quasi-regulatory body that can be bought by the 0.05% on the cheap! As a journalistic advocate, note how they failed with Madoff and the banksters! Their laughable except for the tears shed by the average guy on the street who's just figuring out where to safely park their money with some sort of expected safe-haven or premium when possible.
    16 Apr 2013, 11:13 AM Reply Like
  • khowcroft
    , contributor
    Comment (1) | Send Message
     
    Financial opportunities are like lily pads to a frog. Take the one that you expect will float the best at the moment, but be ready to jump. Gold looks good right now!
    16 Apr 2013, 09:21 AM Reply Like
  • WMARKW
    , contributor
    Comments (10700) | Send Message
     
    Felix.....when all the "silly" gold bugs sell their gold to invest the proceeds in something "productive", where do you think the people who buy their gold will get the money to buy it? Will they have to take it out of a "productive" investment to purchase a "silly" investment? How do these guys come up with this stuff?
    16 Apr 2013, 06:21 PM Reply Like
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