IS IT SAFE?
Posted on 04/15/2013 7:47:25 AM PDT by SeekAndFind
If they default, they will offer the insulting low ball paper gold spot price in fiat money, which they will then print out of thin air and thus decrease its value even further
Sorry 'bout that!
History has shown:
“Never put anything in your mouth that makes you more valuable dead than alive”
If you read the news, The New York Times thinks gold is going down. Why?
Here’s how they put it:
“Now... things are looking up for the economy and, as a result, down for gold. On top of that, concerns that the loose monetary policy at Federal Reserve might set off inflation — a prospect that drove investors to gold — have so far proved to be unfounded.”
So Wall Street is growing increasingly bearish on gold, an investment that banks and others had deftly marketed to the masses only a few years ago.
Ha-ha. Do you remember Wall Street deftly marketing gold to the masses a few years ago? Show us the ads! Give us the brokers’ phone logs! Prove it!
The fact is, the masses never got anywhere near gold. Not even close. Most people have never seen a gold coin. Most are even more reckless! They’ll wait for gold to hit $2,000... or $3,000 before they buy.
Which is why we’re nowhere close to the top. Wall Street never marketed gold deftly... or any other way. Not even in its usual greedy, heavy-handed fashion. And the masses never bought it.
Just the opposite. As the price of gold rose, we saw ads in the paper soliciting people to SELL gold. The masses held gold parties... in which they sold their golden heirlooms at preposterously low prices.
And those concerns that money printing by central banks would cause trouble that have “so far proved to be unfounded”? Well, stay tuned!
Here’as More good news from the NYT:
“On Wednesday, Goldman Sachs became the latest big bank to predict further declines, forecasting that the price of gold would sink to $1,390 within a year, down 11% from where it traded on Wednesday. Société Générale of France last week issued a report titled “The End of the Gold Era,” which said the price should fall to $1,375 by the end of the year and could keep falling for years.”
Why “good news”? Because the more bearish on gold Wall Street becomes, the more the rubes and pumpkins sell. The more they sell... the cheaper it is for the smart money to buy.
I’d personally like to see gold crash down around $1,300... or lower.
First, because this would mark a real correction in the bull market. It’s been going on for 12 years without a serious correction. Not a healthy situation. I’d like to get the correction out of the way... shaking out the Johnnies-come-lately and the two-bit speculators. Then, the final stage in the bull market could begin.
Second, because it gives me a chance to buy more. Because no matter what noise you hear in the press or in the street, central bankers are far more recklessness than ever.
The monetary authorities are convinced that they can revive sluggish economies by printing money... and they’ll continue printing until all hell breaks loose.
Then, when the dust settles... when pounds, pesos, yen, euros and dollars have all been beaten and bruised... there will be one currency still standing tall. That will be gold.
when they start to advertise gold on tv and radio, it is already too late.
Just remember, for 5000 years or so, there have been efforts to obtain gold. So you would figure that by now, some people would be very good at it. And they don’t want competition. By hook or crook.
That’s the thing about ruthless people. They’re ruthless.
I disagree because on a gold standard, the quantity of dollars in circulation would be constrained by the gold reserves. We wouldn't experience this volatility we've all become used to.
So during a gold run up like 2002 to 2011, businesses would rather just hold the dollar than invest. (Deflationary depression). And now with the speculative bubble in gold popping, you'd be seeing massive inflation. Also making things difficult for business.
Again, the purpose of a gold standard is to maintain discipline in the amount of fiat currency issued. When dollar-holders feel that the currency is losing value because of too much credit issuance, they will demand gold in exchange for them thus lowering the gold reserves and obliging the banks to reduce credit restoring balance.
The point is to eliminate the wild swings in the commodities markets [gold included] caused by excessive money-creation.
If our currency was linked to this stupid metal, savers would have lost 10% of their purchasing value in just 2 days.
Say what you want about the Federal Reserve, but we’ve never had currency swings like that since we delinked from gold.
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