EricH

Wellington West Studies Eight Gold Equities, Picks Two Favorites

At what price? I say at a super LOW PRICE. They'll probably declare confiscation when hyperinflation is eminent but not yet present. Therefore, I'd expect them to manipulate the paper gold price down between $480-$550 and then WHAMO... Call the confiscation, outlaw personal holdings, and pay off existing holders a meeger amount of nearly hyperinflated bank deposits (not even cash, just data entries in your bank). That's how sheeps.

Anyhow my meeger coins already got stolen by crooks, so I don't need to worry about this anymore. But you probably need to worry about it.


On Jan 16 10:49 AM Econ 101 wrote:

> At what price point does gold become so expensive the government
> confiscates it? $1000? $1500? $2000??? At some point the inflation
> (hyper-inflation??) caused by the immoral bank bailouts for the wall
> street thieves will happen (between Oct 09 and Mar 10??) and gold
> will explode. The government already has the power to steal gold
> from ETFs and your house and give paper money in exchange.
>
> The only question is when?

Bernanke and Obama's Advisors Are Wrong: Deflation Didn't Threaten the U.S. Economy

Agreed. Same concept as I'm thinking.


On Jan 19 04:56 PM Top Gun wrote:

> Let's just guarantee deposits to, say $500k for individual accounts
> and $5 million for business accounts, then let the chips fall where
> they may.
>
> Mr Obama has to take the advice of advisors, he can't know everything,
> especially on such intricate matters. So, we're screwed. Everyone
> thinks it's credit we need, but it's need we need. As in, I don't
> need another house, car, dog, so just let us pay off the debt we
> have.

How an Honest Money System Can Help America

To me what a "new" gold standard would look like:

1. Government excuse to immediately confiscate and outlaw all private holdings of gold (prior to revaluing it upwards)
2. They would claim our money is now backed by gold, but only redeamable in gold between governments, not citizens
3. At the end of the day the sheeple would still be on a fiat system, the claim of "backed by gold" would merely be a mirage for the masses.

Think about it.

Bottom line, if you appreciate the ability to buy/sell & hold gold then DON'T hope for a gold standard, it would be a wolf in sheeps clothing and only serve to finally get the gold out of private hands for once and for all. UNLESS, each dollar would become a "receipt for gold" and could be redeamable for gold at any bank... THAT WILL NEVER EVER HAPPEN, you and I know it.

If I had to guess what's going to happen next, the banksters will cal for some quasi-BS gold standard as I've outlined here and all the sheeples will no longer have anywhere to hide or store their wealth... It's a trick don't let it happen.

Leading Indicators: They're Usually Late

Here's some leading indicator for you:

1. TARP Bailouts as far as the eye can see
2. Economic stimulus plans & largest tax cuts ever
3. State bailouts, round 1 will be $1T
4. Millions of high class government "Shovel Ready" jobs just around the corner (hmmm, sounds like a great new career, I can't wait to shovel for the government: day shift digs holes, night shift fills em up)
5. Patriot Acts & dismantled US constitution
6. Military policing US citizens

I'll stop at six. Get the point?

'BIG PICTURE' Mr. Happy.

Step 1 - Acceptance, move beyond denial!

Leading Indicators: They're Usually Late

You say "job losses increased, but the *rate decreased"; you'z been fooled... The real job loss number for December was AT LEAST 750K and probably more. Over the past quarter they've been understating job loss numbers each month and the next month they go back and upward revise the prior 2-3 months numbers to wash down the current month's numbers. This month they revised up October and Nobember numbers to make December look like 524K, and next month when we're all focusing upon January's numbers they'll revise up December's numbers by 100-150K JUST WATCH!!!!

Gold Loses Its Shine

My opinion.

Fiat money systems eventually always crash (ours is on it's last leg). When this system finally collapses, it will also take down any paper promises along with it (counterparty failure and broken promises across the board). Therefore, if you want to preserve your 'earned value' through this tranformation period (greatest transfer of wealth ever known to mankind), then you need to store your earned value in some type of non-depreciating hard asset that doesn't have an expiration date. This includes:

1. PM's
2. Real Property
3. Oil, Base Metals, & other non-perishable commodities

In adition, of course, one should store as much food and other consumable items as necessary and feasible.

Out of items 1-3, PM's are the best suited to carry your wealth through the old Fiat system into the new one (For the most part they will be of little or no use during the transition period).

If you own real property you have carrying costs and TAXES (Believe me when the government is also in need of money, they will tax you out of your property if that's what it takes to keep them afloat). Other commodities either have a shelf live or are too bulky to serve the purpose.

That leaves PM's as the best option.

Gold Prices Could Double...or More than Double

In my opinion platinum is a terrific buy (if you can find any), the price is soo low but nobody seems to have any to sell, especially hard to get are the platinum eagles. Get your hands on some if the opportunity presents itself. Palladium is also good, but it seems to be more readily available at it's current spot price, get both, but definetly go for the platinum.


On Dec 31 11:12 AM gsteacher wrote:

> I have some gold, along with platinum and palladium. The gold is
> doing fine(far better than any other investment at this point), but
> what about the other 2? Is this a good time to get more platinum
> and palladium with the prices being so low. Could there be a big
> boost in these? Will these metals be more desparately needed with
> the development of new technologies that may require their use? Just
> wondering......any comments would be appreciated.

Returning to a Gold Standard Is a Bad Idea

Thought provoking article.

In theory I totally agree with a gold backed monetary system. However, in reality I agree it would be a disaster at this time in history and here's why:

Out of control corruption and power grab in the public sector; would you trust today's governing representatives and/or Fed Reserve to honor this system? with all the existing corruption, I believe a return to gold standard this would only truely serve as a front for gold confiscation from private citizens. After all the polititions fancy footwork I guarantee their "new gold standard" would NOT allow anyone to go into a bank and trade their gold certificates for real metal, no chance... We'd just have to have trust and faith that our notes are truely backed by gold (which we would never get to see or touch again, in fact it would be illegal for private citizens to own at this point).

I see a return to gold standard as a PERFECT ENDING CHARADE for the elite ruler dynasties as it would seemingly satisfy everyone: (1) the massess - because we'd finally get our so called "gold standard" back, (2) the central banks - because they'd finally get all the gold (no longer the need to manipulate it or fear it), (3) government elite rulers because they would get full control and power over the citizens as gold would no longer be legal for private citizens to possess (No longer act as a competitive threat against the goverenment currency). Best of all, this would certainly go down simiilar to how it did in the 1920's (i.e. confiscate from citizens first, then devalue the dollar on the order of 10-50x (only after they have all the gold)).

Also there would still be the fractional reserve issue as raised by the author (money would need to be broken into two or more classes, i.e. debt backed fractional reserve vs. gold backed). A nightmare, and an open window for more financial magic tricks and slick maneuvers.

So if you appreciate the fact that today YOU can own and hold gold. Then be extremely cautious about getting behind a new gold standard. it would be a wolf in sheeps clothing at this point in history.

Please do think about this.

Four Reasons for an Immediate Rise in Gold

Nice article.

The current fake and tyranical monetary and finacial system is breaking down. Eventually (at the very last possible second) the blind and noisy multitudes are going to see this, and when they do there will be the biggest PANIC and flight to precious metals than known in recorded history. At that point in time the all the visionary precious metal holders will be among the few (along with holders of real property) that actually possess earned and stored value representing real wealth.

However, I believe you should hang on to enough junk dollars to carry you through the short squeeze (interim deflationary period). In my estimation that transition will likely occure some time within the next 12-24 months.

Hang in there and make sure you can carry yourself through the squeeze period without needing to trade your PM's until you ready on your terms.

Enlightening the Gold Bugs

Addition to my post above addressed to Mr. Caffee.

I neglected to mention how gold ties in with the whole mess as I described above. So... Gold comes in at the point in time when the "reset" button is pushed, at that moment the holders of gold are immune to the "reset", as their earned value carries through to the next sham system that the banksters can dream up. But make no mistake gold holders will need to weather the storm like everyone else (gold won't likely help much during the "generated crisis" period)

The Fed Still Manipulates Gold and the Markets

If it happens like this, then Gold would have done it's job well, this would be a good scenario. What everyone should FEAR is a return to the gold standard because it would be nothing more than a wolf in sheeps clothing (i.e. an excuse to confiscate). Also, if they ever do try to reinstate a gold standard, I guarantee you or I couldn't walk down to your local bank and exchange your "gold certificate" for physical (i.e. we would never get to lay eyes or hands on gold again, there would be no transparency in the fictitious gold that's supposedly backing up everyones new dollar). And remember that's the whole point for a gold standard in the first place. If they merely "claim" a gold standard and take all the gold out of peoples hands, then "they got everyone by the balls" (as the late George Carlin used to say). SO FEAR A RETURN TO GOLD STANDARD... If they claim a return to gold standard, then they SHOULD NOT CONFISCATE OR IT's NOT A TRUE GOLD STANDARD, but they will.


On Dec 11 09:07 AM nononameo wrote:

> Gold is the competition for fiat currency. It anchors the fiat. Therefore,
> if the price of gold is allowed to rise it represents a defacto devaluation
> of fiat vis a vis real things.It is also a defacto indicator of confidence
> in the fiat, and conversely the most widely watched indicator of
> panic and a flight out of fiat for the safety of real intrinsic value.
>
>
> Therefore, the FED and central banks have simply opted to manage
> the price. That was possible until the math behind the fiat indicated
> an unpayable debt, as it does now.
>
> I don't think that anyone knows for sure when or how high gold will
> go, but in order for the US to have a payable debt, and since fiat
> money is debt, a currency revaluation on the order of 10:1 is in
> order for the debt to again become payable.
>
> Needless to say, for a 10:1 fiat revaluation in a vacuum, just add
> another zero to the current price of gold (as well as all other real
> assets).
>
> Of course, they will probably just try to issue a new currency, which
> values gold at the same price in "new dollars", however your old
> dollars exchange at 10:1 for new dollars which has the same net effect.

The Fed Still Manipulates Gold and the Markets

I believe you, and you're correct. The price of gold is what "they" want it to be.

Furthermore, as that relates to this article, let's put some common sense around this. Does anyone really believe that the price of gold would go from $750 to $9,000/oz (as it's in the process of getting re-monetized), YOU (private joe citizen) will get to go along for the ride on the way up? I THINK NOT! and history tells us so.

We've seen this before. In the first great depression they outlawed gold punishable by 10 years in prison... they forced everyone to trade it for $20/oz, soon after they devalued the dollar by 50%, several years later they doubled the price of gold to $43/oz (a double whammy to the people)... Any law obiding citizen got double screwed, they didn't get to ride the upside... the only problem for the Fed back then was they had no way of knowing who "got da gold"... Guess what??? in 2004 the patriot act was signed by the grandson of Prescot Bush which tracks and traces gold exchanges... by chance do you think they might have an idea who's got da gold these days? Do you think they might outlaw it again before it gets re-monetized and price shoots up, or do you think they'll wait until it's $9,000/oz before making it illegal? If I wanted to extract as much value as I could before I confiscated your gold what would I do?? hmmm... Well I guess I'd drive the price down to $400/oz or lower before outlawing it (if I had the power... oh wait, they do. using the method described by "user 317170"). You know the answer. Get ready for gold to get hammered down to a low level beyond belief just before they re-enact the confiscation act and take YOUR gold before the value skyrockets. Don't try and hide it either, just give it up because Barrack will have his 10,000 man militia in place soon (otherwise known as secret police back in the heyday of Communist Russia). Chew on that, then get yourelf a tube of petrolium jelly


On Dec 10 09:20 PM User 317170 wrote:

> There's definitely reasonable points to gold getting to $2k, I don't
> think anyone disagrees there. The big problem I have is that all
> the gold bugs seems to forget the G7 controls about 90% of the world's
> gold. All any of them have to do is decide to sell a couple percent
> of their gold reserve and gold prices would plunge. Oh, and the international
> agreement that sets a limit how much each gold each country can put
> on the market in a given time period? Yeah, that expires in Sept
> 2009. Point being, the price of gold is whatever the US Congress
> and Fed wants it to be (IMF transactions have to be approved by congress).
>
>
> Don't take my word for it:
>
> en.wikipedia.org/wiki/...
>
> en.wikipedia.org/wiki/...
>

The Next Crisis Is on the Horizon

You nailed it.

PS. I tried to prepare for this scenario by holding hard goods, but some street crooks already stole my hard goods. Therefore, I don't have anything left for anyone to take. However, conceptually hard goods would be the correct move to protect earned wealth. Not greasy USD.

On Nov 03 03:59 PM Pent up demand wrote:

> Exactly right. The "leaders" of the banking industry have completely
> lost touch with the notion that wealth must be backed by actual economic
> activity. They have been shoveling abstractions for so long that
> they think they can stop this freight train with a pile of freshly
> printed money.
>
> The USA will declare bankruptcy (default on sovereign debt) before
> this is finished. This little panic has been the last nail in the
> coffin for the dollar. And those who have prepared correctly will
> be punished the same way as "hoarders" in all hyper-inflationary
> collapses. We will be forced by law to trade hard goods for the worthless
> scrip.

UBS Lowers Gold Expectations Again

Gold spot price is definetly manipulated (through paper gold). It's held down, and pounded down a little more all the time.

First disinflation (now), followed by inflation (later), last but not least hyperinflation.

If I had extra USD to invest, I'd trade it for physical gold at any price below $800 spot (I expect the spot price to drop below $500/oz for a short period, but I don't expect anyone will be able to be able to get their greedy hands on any physical metal at those fake low prices).

Therefore, I'd buy and hold the real deal while you can in preperation of the coming worldwide economics fireworks show of 2009. If you try and time the market you will get stuck with great priced paper promises for non-existent gold, meanwhile everyone is defaulting on all kinds of promises. Do you want to be that guy/girl?

All the while the media will be guiding the dumb masses into the USD; 98% of which will bite the hook. Not you.

This is just my vision of how things play themselves out... I hope I'm wrong.

First Fuel, Now Metals - Forecasts Lowered

Paultat... Good post, I have to admit you tore me up; I concede. I guess the media got into my head there... for a few minutes they actually had me believing the dollar was strong. I'm back on track now though; the dollar is garbage! But gold will still stay down. Why? because it's being held down, and they'll keep pounding it down.

If you decide to vote, vote for Chuck Baldwin... Look him up.