Posted on 02/01/2013 12:27:32 PM PST by blam
Huge Credit Suisse Report Declares: THE GOLD ERA IS COMING TO AN END
Joe Weisenthal
February 1, 2013, 10:44 AM
The anti-gold bandwagon is getting more and more crowded.
Analysts Tom Kendall and Ric Deverell of Credit Suisse is out with a bombshell report this morning titled: Gold: The Beginning Of The End Of An Era.
The article argues that the 2011 peak of $1921 was the top, and that now the run of the cult metal is coming to an end.
The argument essentially boils down to two arguments, which are related.
The first is that we're seeing rate normalization. When real interest rates are ultra-low, gold does well historically.
The second is that the era of crisis is over, and so the impulse to hedge against collapse (or massive volatility) is diminishing.
Kendall and Deverell establish the argument over a series of charts.
Big thanks to Credit Suisse for their permission to feature several charts from the report.
To see the charts, click here.
(Excerpt) Read more at businessinsider.com ...
Do you have a link to the stock trading story?
“Good news. Gold prices are coming down and I can buy even more of it.
Thanks!”
Here’s hoping. I’m light on gold, heavy on silver at the moment.
“Schmoke und a pancake? Pipe und a crepe? Bong und a blintz?
Cigar und a vaffle? No? Then there isch no pleazink you!”
Interesting post; thread. Thanks.
I think you've nailed it. Naked short selling isn't only limited to stocks. I have a feeling that a bunch of the big boys have been indulging in it for a long time, and they (and the rest of the financial world) are coming to the realization that they do not have the gold to cover themselves, nor the funds to buy it at current prices.
Goldbug ping.
“The message is clear: storing some gold outside your country of residence is critical at this point, and the window of time for doing so is getting smaller”
There are some practical pitfalls. Sure, you can still transfer funds to another country, Canada for example, and then buy gold in Canada and store it in a non bank depository. Of course, there is still a paper trail for US gold grabbers.
Secondly, many of us have the real stuff in the US, but transporting it out of the US would require declaration to the authoritarians at the border. I suppose you could make multiple trips across the border with less than 10k, but that activity would probably arouse suspicion.
Then, unless you’re planning on living in Canada, it’s probably going to be a struggle getting your stash to your condo in Panama or Ecuador.
“The hint that all this is about to take place would be when politicians publicly declare they would do no such a thing.”
We are getting hints like this all the time now. Second amendment and nationalization/ confiscation of pensions are just two prominent examples.
I believe the best investment right now is in certain gold and silver miners with significant new mines/plants coming on line. There is a huuuge lag between when the price of the precious metals increases significantly, and when the relevant miners can add to the supply. During that time they have to drill for a long time to find the gold and silver, spend millions to discover it, spend a whole bunch more to have the discovery independently confirmed through a 43-101 independent report, spend money on a feasibility study, spend a sometimes years working on, and waiting for all the relevant permits, then take the feasibility study and look for financing, dilute the heck of the current share price further by raising the money, then construct the plant, build the mine, order the equipment, hire and train the workers. Because of all this, the miners have gotten clobbered in the stock market while the price of gold and silver has soared. The market is currently discounting everything about the miners, including huge increases in their resources. This means that the best bet right now are certain small miners with new mines about to be put in production. Some of these miners are selling for 2 or 3 times next year’s cash flow, and when the new mines are put in production, they will almost literally be printing money. The beauty is that you don’t need gold and silver to go up to make huge gains. All you need is for the prices not to come down! Happy investing everybody!
I believe the best investment right now is in certain gold and silver miners with significant new mines/plants coming on line. There is a huuuge lag between when the price of the precious metals increases significantly, and when the relevant miners can add to the supply. During that time they have to drill for a long time to find the gold and silver, spend millions to discover it, spend a whole bunch more to have the discovery independently confirmed through a 43-101 independent report, spend money on a feasibility study, spend a sometimes years working on, and waiting for all the relevant permits, then take the feasibility study and look for financing, dilute the heck of the current share price further by raising the money, then construct the plant, build the mine, order the equipment, hire and train the workers. Because of all this, the miners have gotten clobbered in the stock market while the price of gold and silver has soared. The market is currently discounting everything about the miners, including huge increases in their resources. This means that the best bet right now are certain small miners with new mines about to be put in production. Some of these miners are selling for 2 or 3 times next year’s cash flow, and when the new mines are put in production, they will almost literally be printing money. The beauty is that you don’t need gold and silver to go up to make huge gains. All you need is for the prices not to come down! Happy investing everybody!
Good stuff!
I always enjoy reading what Business Insider (the Democrat propaganda version of Forbes, WSJ, and IBD) has to say so I know which way to invest, ie., the opposite of what they say. I will definitely be looking to pick up some more gold as the price (hopefully) gets artificially depressed for a little while.
LMBO!!!
I guess France is so far away that Germany needed to get ALL of its gold out of that place.
"D'oh!"
I fail to see why storing gold in a foreign country is smarter than storing it in a big, hidden, buried safe on your own premises - - a safe which, in the event the stench of rummaging government brownshirts fills the air, could also be booby-trapped.
The implication of that statement is that the Federal Reserve Bank of New York co mingled the German gold with that of others and it is gone and needs to be replaced. I seriously doubt it.
The gold in New York is stored in designated vault spaces within the main vault. It is stored but if there is a necessity to settle accounts, the gold is physically moved from the mini vault of one nation to the mini vault of the other nation and appropriate entries are made in the Fed’s ledgers.
The price of gold in US$ has no effect on the transaction beyond the transaction and settlement date.
it was put out a couple months ago by Karl Deninger at market-ticker.org, the forum is tickerforum.org, but it is widely known and has been reported by numerous financial sites including the Wall Street journal and Forbes. and yes it is TRUE.
Thanks.
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