Posted on 06/23/2013 1:05:52 PM PDT by blam
What Kind of Fools Are Buying Gold?
Commodities / Gold and Silver 2013
June 23, 2013 - 08:55 PM GMT
By: Jesse
On the whole, the world's central banks are now net buyers of gold, and have been for some time, after being net sellers for over twenty years.
Russia is one example.
Why do you think they are buying it? They don't understand money?
They don't know what they, and some of their associated central banks, are planning to do to recapitalize the deteriorating global financial system and dollar reserve trade regime?
Did they forget to watch CNBC to find out what they really ought to be doing?
I hear that J P Morgan has stealthily gone net long gold now after beating down the price. Would having the biggest banks go long gold and then letting it be revalued higher be one way to recapitalize them? It seems as though recapitalizing them through insider information is the mode du jour.
Silly idea huh? Well that is what the did in 1933. They took the gold out of official circulation, and out of the hands of the people, and then revalued it significantly higher, and used it to recapitalize the remaining banks after purging the insolvent banks during a bank holiday.
The only ones who seem to be saying that gold is not a good investment are the Anglo-American banking cartel and their enablers and supporters. They wish to maintain the confidence, and the buying of their paper which they are selling. But who knows what they are doing for themselves in private.
Such strange times. Such deception and disappointment. One can only wonder.
By Jesse
Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In providing information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.
What now?
Stubborn fools who throw good money after bad. Remaining buyers are a dwindling lot of “greater fools” essential to precious metal sellers.
Notice last week, everything sold off. Just like Oct 1987. Safe havens, beans & bullets.
Absolutely not.
Gold is none of those things.
Picky Picky Picky; but besides all that...
But besides all that, you can’t eat it, run your car on it, or use it to diaper your baby.
ALOT of people were buying at 300 bucks. No capital gain taxes, pure profit.
Gold, Silver, COMEX is a scam; if anyone thinks the USD is ok and bulling it’s way up and up, they are fools. Thomas Friedman’s rules of investment don’t apply here; they are fine and good when level playing field abounds, not during fascist times like now. Gold and Silver should be bought and held with excruciating due diligence; watch and see I’m right as it dips and the smart money will get back in on the cheap while others have lost their money. Hey, disagree with me, I won’t be offended.
Smart and good hold. They should be happy.
Even Allen Greenspan understood the dirty little secret...
http://www.321gold.com/fed/greenspan/1966.html
The kind of fools who understand what’s being done to our money.
It’s “au contraire” and Greenspan was not the sharpest knife in the drawer. All you have to do to realize that is find out who his wife is.
Gold is none of those things.
Gold is not fungible -- that part is true. Otherwise, your comment is wrong. Gold is ideal as money precisely because it's not fungible.
Why would you want to eat your money?
Can you move it anywhere you want with the click of a mouse button?
US oil production increased by 1 million barrels @ day in 2012. Oil production increases in similiar range are expected for the next 4-5 years. Leading to US energy independence.
These are the circumstances that increased US federal government revenues by 200 billion in last year. This reduced federal deficits to an expected 640 billion—with similiar decreases expected for the next several years.
As well rising US oil production decreases the US trade deficit which increases the value of the dollar—which will reduce the cost of oil.
Lower US borrowing and a rising dollar and lower oil costs ...all mean that for the next five years or so the price of gold will go down.
Fungible---being of such a nature that one part or quantity may be replaced by another equal part or quantity in the satisfaction of an obligation.
The low level of knowledge on this thread is stunning.
emoney is not money, it's a promissory note. If the backer defaults, it's worthless.
Goldbug ping.
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