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Many Reasons to Hold Gold
This post was edited by gork at 2013-6-19 15:03|
They doth protest too much. Nouriel Roubini, who is the fake "Doctor Doom" has written an article listing five reasons gold will fall "toward" $1000. Each argument is old and full of holes. Meanwhile, the Daily Telegraph sheepdog menaces the sheeple with an article suggesting the gold miners might "hedge" gold, something they did in the 1990s and which Antale Fekete has pointed out isn't a hedge at all; just selling forward at a massive loss. This would also be a violation of the comany directors' fiduciary duty to their shareholders.
But with all the "bail-ins" physical gold protects you from seizure:
Holders of GBP370 million of permanent interest bearing shares (PIBS) issued by the Co-op and Britannia Building Society before its takeover are expected to have their coupons cancelled, making them effectively worthless.
. . .
The realization that deposits (or their mutual equivalent) are nothing more than loans to highly levered institutions may begin to dawn on a European (or in fact global) depositor base.
- The European "Bail-Ins" Will Continue Until Morale Improves
The law was changed in Amerika in the 19th century making depositors creditors. In other words, you weren't depositing YOUR gold for safekeeping, you were lending it to the bank and if they lose your money, then you're to blame for trusting them. Other scams include the "with profits" promises on mutual funds which are offered and withdrawn at their discretion or the arbitrary penalties for withdrawing "your" cash from such funds.
Gold also protects you from the massive inflation:
"Let's be clear. We've intentionally blown the biggest government bond bubble in history," Haldane said.
- Bond bubble threatens financial system, Bank of England director warns
For those who know the price of everything and the value of nothing, if a Ferrari was priced at $1,000 and the price fell to $500, that just means it's even better value for money. As Paul Craig Roberts has pointed out, they want you out of gold because it will have to rocket higher.
The emperor is naked and standing right in front of you. There's massive buying of physical with India and China alone buying far more gold than is being produced. QE is hyperinflating the monetary base, debt levels are the worst in all of history and all other asset classes are in a bubble as PIMCO's Bill Gross has noted.
Shares are just another form of paper and they can short them indefinitely. Japan has just performed a pump and dump with the shares still up massively but now in a bear market!
Not only gold but the gold standard protects you from confiscation. Under a paper standard, you can't leave the casino because the paper can be devalued. Not only that, but without a fixed paper price for gold, they can illegally manipulate its price as they're doing now. It's like playing poker and having four aces, only to find the banksters have dealt themselves five aces. Under a gold standard, your purchasing power is fixed by both the fixed "price" of gold and the limitations on paper money printing affecting consumer prices. Most people don't have the time to become experts in all the laws and rules governing the banksters and their multitude of scams, so are easy prey.
But as Warren Buffett says, in the short run it's a voting booth. In the long run it's a weighing booth. For now they're keeping precious metals at a low level and a tight band. But that just means they're a bargain. Gold will have to rise and will probably be used in a new monetary standard which is why Germany is demanding her gold back.