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  • China Uses Gold To Pursue Global Power [View article]
    ". . . if China wants to get up to 70 percent, like other players, it would have to buy another 79,000 tons at a price of $1,200 per ounce . . ."

    Hmmm, so you're saying that for China's gold reserves to equal "the same percentage" of their foreign exchange reserves as other countries, they have to buy 10 TIMES the amount of gold [presumably] held by the United States . . .? That's a lot of gold!!!
    Apr 26, 2015. 06:08 PM | 1 Like Like |Link to Comment
  • Bottom In Gold Likely To Be Below $770 [View article]
    " I have said this on SA a thousand times but here goes again: the US has promised to pay all its debts with pieces of paper over which it has monopoly control and can create out of thin air. This would be no different than me promising to pay all my debts with my autograph. I just have to write more and I can pay every debt I ever made. The US will never default on a debt unless it chooses to do so."

    You are 100% correct. My big worry is that the U.S. Fed gets what it wishes for -- inflation -- but at a hyperinflationary rate it is powerless to control. If foreign holders of USD lose confidence in the dollar, and dollars come flooding back into the U.S., what will/can the Fed do . . . ?
    Jan 2, 2015. 05:21 PM | 1 Like Like |Link to Comment
  • Bottom In Gold Likely To Be Below $770 [View article]
    Hobart16 comments:

    "When the Fed raises interest rates in 2015 . . ."

    Does anybody out there really believe that's going to happen? Is there possibly a faster way to default (we're already insolvent) on our debt? Just keep an eye on Japan -- if interest rates rise by less than 2%, 100% of tax revenues will go to paying just the interest on their debt . . .
    Dec 29, 2014. 08:16 PM | 3 Likes Like |Link to Comment
  • Putting The Gold Selloff Into Perspective [View article]
    "How can an asset be "the ultimate store of value," in fact, how could it store any value whatsoever if the market price on that asset continues to drop as time progresses??" -- Blizz_The_Wiz

    The value that gold stores is . . . ENERGY! Extracting gold is very energy intensive -- from the energy used to manufacture the giant machinery that extracts and processes gold to the diesel fuel and electricity used to move the raw material from source to market. That cost continually goes up, especially as the remaining gold in the ground takes more and more energy to find and extract.

    Every gold ounce ever produced is priced at the current cost of extracting an ounce of gold, as that is today's value (ok, the paper market is obscenely distorting that actual value at present, but economic laws will prevail eventually, as they always have and always will).

    If you believe energy prices will decline over time, and gold deposits will become easier to find and extract, then maybe gold will not hold its value [relative to fiat currencies], but for 6,000 years it's proven its resiliency and reliability . . .
    Nov 1, 2014. 08:13 PM | 3 Likes Like |Link to Comment
  • Is It Time To Stock Up On GLD? [View article]
    Even if I somehow knew that tomorrow would be the bottom in gold, the last place I'd consider would be GLD. I don't want/need "substitute paper" gold as an investment -- I'd want the physical. GLD has worse odds of actually holding [a substantial amount of] gold than Fort Knox . . .
    Oct 8, 2014. 02:06 AM | 2 Likes Like |Link to Comment
  • Apple's iWatch Is About Data First, Fashion Second [View article]
    "Wearables are about putting everyday people in constant contact with data in easily digestible bits so they can ultimately free their minds from thousands of mundane details and live safer, more efficient lives."

    Oh, really? What planet do you live on?

    An iWatch is merely a wrist-portable smart phone, nothing more. OK, maybe its proximity to your skin will allow for health monitoring, but nothing else new. "Constant contact with data" isn't 'freeing' minds, but enslaving them.

    People "in contact with data" have become zombies in retail stores, blocking aisles, doorways, checkouts, elevators, etc. And don't get me started on drivers! I can spot a "person in contact with data" from two hundred yards, when overtaking them (which isn't hard, because they are driving 10-20 mph below the speed limit on freeways, or meandering in their lane).

    People "in contact with data", according to the California Highway Patrol, are FOUR TIMES more likely to have an accident than a DRUNK DRIVER! Rather than "safer, more efficient lives", they are putting us all at risk . . .
    Aug 26, 2014. 01:23 PM | 3 Likes Like |Link to Comment
  • Why I Upped My Gold Short: My Market Outlook [View article]
    I often think back to that greatest creator of wealth (for himself) of all time -- J.P. Morgan. He famously said "Gold is money, everything else is credit."

    Let's take that at face value. If that is true, then talking about the "price" of gold has no validity. All you're referring to is the value of that gold, at any given point in time, in a given fiat currency. Why does gold earn no interest? Because, if it is, in fact, the only "real" money on the entire planet, then it has no [counter party] "risk", so there is no need to pay interest as an incentive for people to hold it.

    Assume that anything else you hold -- equities, bonds, paper currency, etc. has counter party risk, so you need it to "earn" something to cover that risk. Mismatches in the current price [of any holding] relative to the real risk may create opportunities for investment gains, but they all revert to the mean eventually.

    "Converting" these [other] investments into gold, or buying gold with available discretionary income, merely stores that wealth -- albeit in a form with no risk (forget the wildly fluctuating "values" of gold measured in any of those paper fiat currencies). I like to think of gold as stored energy -- gold's "price" is the value of all the energy it took to find, extract, and refine it out of the ground. As it continuously takes more and more energy to obtain that next incremental ounce of gold, its price (in any fiat currency) will reflect that expenditure of energy -- at current energy prices (in said fiat currency).

    So, I hold gold, as a store of my wealth, but not to speculate with, or even as an "investment". I just prefer it to the Monopoly money in my wallet. . .
    Aug 1, 2014. 04:52 PM | 2 Likes Like |Link to Comment
  • Why I Upped My Gold Short: My Market Outlook [View article]
    ". . . if your friend Rip Van Winkle fell asleep in 2004 and woke up today, and you said, "Rip, it's 2014 now, let's go shopping," Rip would look at current prices and not think inflation over the last decade had been anything out of the ordinary. Rip would see no evidence in average consumer prices of the massive QE . . ."

    Oh, really? Let's take two items that your friendly government economists cannot manipulate with substitution, hedonics, or outright lying:

    WTI (that's crude oil) -- $40.78 in Jul 04 and $100.97 today. That's a 147% rise in ten years.

    Hamburger -- $2.10 in Jul 04 and $3.88 today. That's an 85% rise in ten years.

    Now answer me this -- has your net paycheck gone up 147% in the past decade? Has it gone up 85%?
    Jul 30, 2014. 02:39 PM | 5 Likes Like |Link to Comment
  • Maximize Your Gold Exposure: Buy Junior Miners That Trade Like Mispriced Call Options [View article]
    If "buying junior miners that trade like mispriced call options" is a leverage play on the price of gold, why not really crank up the leverage and buy LEAPs on ANV? Yes, I realize this introduces a time risk into the equation, as you now are betting on gold rising within the period of the LEAP, but for the price of ANV (today) I can buy $4 calls for $0.75 and if they expire worthless in Jan 2016, I can do it all over again for less than the price of buying the stock outright . . .
    Jul 30, 2014. 01:52 PM | Likes Like |Link to Comment
  • Gold, Silver And The Mining Sector: Prepare For A Severe Fall [View article]

    I'm not talking about gold or silver STOCKS. I'm only referring to the physical metals . . .
    Apr 19, 2014. 02:53 PM | Likes Like |Link to Comment
  • Gold, Silver And The Mining Sector: Prepare For A Severe Fall [View article]
    Think for a moment . . .

    Gold is at $1,300 and the S&P is at 1,865. Even if gold drops to $1,000/oz., that's only about a 25% drop from today's price. What are the odds of the S&P dropping [from today's number] by 25%? I would argue it's appreciably higher than gold's potential plunge. I expect the S&P to drop by 50% before 2020 -- even if that never happens, I do expect gold to protect my wealth from the ravages of inflation . . .
    Apr 18, 2014. 08:48 PM | 3 Likes Like |Link to Comment
  • Bottom In Gold Likely To Be Below $770 [View article]
    So, your "thesis" is that only MEN can understand (and invest in) gold? That "their wives" are in Bernanke's camp, in that they just "don't understand gold" . . .

    They are more interested in what? Shopping and raising the kids? Attending PTA meetings? Having their nails done? Are you a mysogynist, or do you just have a low opinion of women's investment savvy?

    MY wife, is totally in agreement with protecting our assets through a partial investment in gold, and every time the price gets beaten down, she makes sure we buy more. If gold does hit your $770 estimate, she'll be backing up a rental truck to our local bullion dealer, and filling it up . . .

    ps -- I do a lot of the grocery shopping, and I see price inflation every day:

    In 1 year: Trader Joe's mayonnaise > $2.59 > $2.99 > $3.29
    Feb 24, 2014. 12:03 AM | 5 Likes Like |Link to Comment
  • The Fed Will Remain Gold's Strongest Supporter For Years [View article]
    Eagle, the one fly-in-the-ointment with your theory is that with India hindered from buying gold, they turned to silver -- to the tune of 25% of the world's annual supply (according to Eric Sprott). If, as he implies, India formerly bought about 10% of annual supply, how is it possible for a buyer to grab an additional 15% of annual supply, and prices did not go up? If we had seen gold fall, and silver rise, I'd buy into your argument. With both of them falling, price manipulation is the only logical explanation . . .
    Jan 3, 2014. 01:27 AM | 1 Like Like |Link to Comment
  • Chicken Little Inflationists [View article]
    "The major flaw in their arguments, of course, is that it never happened. It never even came remotely close to happening. What exactly is the definition of hyperinflation varies; many peg it at the inflation rate reaching 50% in a month."

    You remind me of a hypothetical passenger on the Titanic, mentioning that nothing bad had happened, since there was no sign of trouble [an hour after the collision]. Just because something is not immediately apparent doesn't mean it didn't occur.

    Inflation was exported, so people abroad (especially in emerging markets) are feeling the first effects. That is REALLY bad news for us, because once all those dollars start flowing back to the U.S. (because the rest of the world doesn't want them), there will be no way the Fed or government can mitigate the effect. It will be the financial equivalent of watching the tsunami that hit Japan, sweeping everything before it, with terrifying and relentless force.
    Dec 26, 2013. 03:57 AM | 2 Likes Like |Link to Comment
  • 6 Lessons I Learned In 2013 [View article]
    There is little question that gold and silver have been manipulated throughout 2013. Nobody dumps $millions at 2:15am, regularly, in a thinly traded market, with the anticipation of getting a "good" price on the sale. Even hedge funds are smarter than that!

    Throughout 2013, as stock prices rose, with every drop in the PMs I sold off more equities and bought physical gold or silver. With each successive drop [in PMs], I converted more equities to PMs.

    Did I have gains in 2013, based on my strategy? Nope. Do I sleep like a baby at night? Yup. The stock market is in a bubble, and PMs and their associated stocks are down the crapper. Yes, the market could go much higher (than it is today), but which do you think holds more promise for gains in 2014? I'm positioned exactly where I want to be . . .
    Dec 26, 2013. 03:43 AM | Likes Like |Link to Comment