DiverCity

Faber: Gold a Better Buy than at $300/oz.

You are utterly disingenuous! You have ALWAYS been anti-gold. Why do you intimate otherwise on here?


On Nov 20 12:57 PM CLH wrote:

> Watch the dollar. It seems to be bottoming. Im happy to be out of
> gold now as the bubble grows.

The Recurring Gold 'Bubble'

You are utterly disingenuous!


On Dec 03 11:05 AM CLH wrote:

> There is only one good way to know if its time to buy or sell gold.
> If all govts. are selling buy with both hands (year 2000). When govts.
> buy, its time to sell. (2009).

An Unbelievable Investment Opportunity in Gold

I've been seeing your gold poor-mouthing for around two years now, CLH. I'm sure you're eventually going to be right....


On Dec 16 08:33 AM CLH wrote:

> More garbage from the gold bugs.

An Unbelievable Investment Opportunity in Gold

Thou doth protest too much. Methinks it is you who have an agenda. It's downright hard to sell something when you're advocating holding physical gold, as I see the pro-gold folks on here doing.

But more to the point, I'm not a gold bug. I own some, but not a lot relative to my other investments. Surely gold has a legitimate place in one's diversified portfolio, which you seem not to acknowledge. Indeed, you appear to be a paper bug. In fact, I hereby declare that you are a paper bug, and therefore you are. (Do you see how hysterical ramblings are a little weird? Such as you accusing me of claiming that "we are on the economic abyss and production and all economic activity will fall into a giant hole...." Pray tell where I made this claim?)

You failed miserably to address my points, which concentrated primarily on the possibility that the much heralded economic recovery could be a chimera. I don't categorically state that it is, however, because I don't know. That's why I like to hedge.

And respecting the abyss, there are various kinds, no? Such as a hyperinflationary abyss, a deflationary abyss (the only kind you seem to allow for), and a stagflationary abyss much like the US experienced in the 70's. Yet, maybe; just maybe, you know it all and we should all become your acolytes and buy whatever it is you've got to sell. Reckon?


On Dec 15 07:46 PM Brian McMorris wrote:

> Sorry....again, you goldbug folks need to check the historic record.
> If, as you say, we are on the economic abyss and production and all
> economic activity will fall into a giant hole, then gold is the LAST
> place you want to be. Gold performs horribly during a deflationary
> depression, as long as it is floating, as it is now. Didn't we just
> see that in the mild deflation in 2008? Did gold prices shoot up?
> No, they fell 30% like all commodities did.
>
> If you think that is a one-off, and you have some intellectual integrity,
> go to the Kitco.com website and check the history of gold prices
> back over 200 years, and then compare them to the business cycle
> back to 1800. Every time there was a deflation, gold stayed constant
> (because gold was the currency of the time). But because there was
> a deflation, the gold standard made matters worse. There was no ability
> to "loosen" gold and holding gold discouraged consumption, just as
> the dollar was in Oct 2008. But the dollar can be "loosened" by
> increasing supply (printing in the outdated term, since it is all
> electronic transactions today). The currency makes no difference.
> It is consumer psychology that matters and the idea that one can
> always buy something (in gold or paper) cheaper tomorrow than today
> that causes the downward spiral of a depression. That is the nature
> of deflationary depression. It has nothing to do with the base of
> the currency.
>
> Gold is a decent hedge against inflation, but so are lots of equities
> and commodities. Gold did NOT outperform non-financial equities in
> the 1970s. They kept pace with each other (oil went from $3.39 a
> barrel in 1970 to $37.42 in 1980, much better than the move in gold
> from $35 to $612, but with gold playing catch up from 1933 the first
> four years of that decade, the move was really more like $100 to
> $612; then gold and oil both dropped when Volcker tightened money
> supply). And that makes logical sense as the dollar is only (and
> will only ever be) a RELATIVE measure of value.
>
> Goldbugs better wake up and start to understand what they are dealing
> with. A lot of people will be hurt by the bursting of a gold bubble
> blown up by the speculation that I see here.

An Unbelievable Investment Opportunity in Gold

"All" the major economic indicators now show many consecutive months of improvement, you claim? I grant you that certain economic measures have improved -- an important one being GDP. However, even reasonable bullish analysts will concede that the improvement there is dependent wholly on government stimulus. No one can correctly claim that GDP growth has resulted from private economic activity. Moreover, most "economic indicators" have not improved. Rather, their rate of decline has simply decelerated. This does not mean things are better -- just that they aren't getting bad as quickly. (Why can't most people see this?)

It is my opinion that the improvement in certain markets (for example, equities) is what you are really looking at and you have extrapolated from there. This is what the government and Wall Street want you to do in the (vain?) hope that animal spirits will be rekindled and, as a result, real, positive private economic activity will take over. Perhaps that will happen. I don't know. I think it could go either way but we're still on the precipice and if you'd simply turn around you too could see the abyss. However, it appears that you're in denial. And the conclusions that you have already drawn are, at this point, unsupported in the main.

Others acknowledge that there's an abyss and that is why gold will IMO continue to go up when priced in dollars.

On Dec 15 09:53 AM Angel Martin wrote:

> The value of gold rises when there is fear of economic and financial
> collapse. When normal economic conditions are restored, the value
> of gold plunges.
>
> The doom and gloomers and goldbugs believe depression is just around
> the corner, even though all the major economic indicators (gdp, retail,
> industrial production, imports, employment) now show many consecutive
> months of improvement.
>
> The doom and gloomers have become increasingly disconnected from
> reality and are resorting to conspiracy theories to explain away
> favourable economic data.
>
> I guess a preference for conspiracy theories by doomers should not
> be a surprise, as goldbugs have claimed for years that their favourite
> investment is being manipulated and the price supressed.
>
> Gold must be the only "investment" where many of the bulls believe
> that the market is rigged against them, yet they continue to buy!
>
>
> I agree with the author that gold presents an unbelieveable investment
> opportunity - short.

An Unbelievable Investment Opportunity in Gold

Your articles are always informative, Mr. Kim. None of us knows what the future portends. We can only gather information from a variety of sources and attempt to extrapolate and make a good guess. I would bet that Mr. Paulson sweated a few bullets when he made his big bets, even though he knew that his logic was sound. It's a difficult row to hoe for us little people. Please keep your analyses coming.

12 Reasons to Short Gold

Louis is sticking his head in the sand. And I'm not a goldbug. In fact, I just sold all the "gold" (GLD) I had this week. The President and the Fed are knowingly lying to you, Louis. The Baltic Dry Index had to shoot up the very little bit it did as shipping had come to nil. And saying that the percentage rise we've just seen is a meaningful indicator ignores that shipping is still down to depressionary levels by any sane measure.

Louis may also be a manipulator. It would appear that he frequently hypes for the Oxford Club, whose most recent series of claims about "gas rebates" turn out to be mere Canadian oil and gas trusts. Canadian law has changed, so their longevity and profitability beyond 2011 is highly doubtful. And they're unquestionably not rebates. My elderly father was very nearly hooked with these manipulative claims.

An Open Letter to the Plunge Protection Team

What you apparently forget or simply don't understand, hc, is that gold is money. Hence, I'm not so concerned about what someone will pay in some fiat currency for my gold in the dystopian future you posit. Rather, the reason to own gold is to be able to survive using gold to pay for necessities. Jeesh!