Tuesday, February 24, 2015

Being Realistic When It Comes to Gold Ownership

At this point in the 2nd greatest bull market in the history of the United States, if you had no information other than the US stock market and it's ridiculous valuations, you'd think we were embarking on the greatest century of industrialization that the world has ever seen.

Of course this is not true. The devil they say, is always in the details.

If you are going to manipulate markets, then you are going to have to acquire the means to manipulate any or all markets when you need to. You can only do that when you own everything on the monopoly board including the money supply. The world's central banks, and their elite owners, currently own everything on your monopoly board. You are some game token, rolling dice, hoping to avoid these predators- but sooner or later they will get you. That's how the game of monopoly always ends. The people with all of the money figure out a way to take all of yours. It's the greatest poker game of all time.

The price of gold has tumbled from the 1900 dollar per ounce price level in 2011 all the way down to the current price of 1190.

You'd think in that type of environment- that demand for gold had dropped sharply or that there is an over supply of gold. Or both. Or maybe that the world's banks had quit counterfeiting their fiat currencies and were actually paying down the principal on all of the debt they had acquired. Well not only is all of that untrue, the reverse is true. Gold demand has never been greater, the supply of gold (a finite resource) is dwindling and industrialized countries are not paying down the principal on their debt burdens- they are actually adding more debt. For anyone with even a rudimentary idea of the economic laws of supply and demand- this is simply not possible. Yet, here we are.

There is no doubt that most- if not all- markets are under the direct ownership of the mega banks and the central banks.They don't even want depositors money. They don't need it- they have a rich supply of their own zero interest rate supplied money.

So I got tired of reading all of those gold blogs about a year ago. They regurgitate the same information over and over again. Every once in awhile some "expert" will call for 2100 dollar gold like Eric Sprott's Dec 2014 call. He's just selling you his book. So I scan headlines, look for some new angle, and I make my own "what is gold currently worth?" line.

What is gold currently worth absent all of the market manipulations and disguised data? My line is about 2300 bucks. If things continue in a status quo sort of way through the end of this year, then gold should be worth about 2500 bucks. Would I sell gold at that price?

Probably not. I didn't sell at 1900. That was the last time I think it may have been fairly priced- that was 2011. How will you know when it is fairly priced again?

Gold will become fairly priced at that precise moment when the buyers of gold wished they had bought more of it. Gold will be fairly priced when people who have none can't get their hands on any. Gold will be fairly priced when the suppliers quit selling.

When will that happen? Honestly, I hope it never happens. Because if gold ever gets fairly priced in a world awash in a sea of debt and worthless currency- a lot of things will have to change- and that won't mean things have gotten better.

I view gold as the ultimate insurance policy. I am not holding gold hoping to trade it for twice as much fiat ass wipe this year- double what banks were offering for it last year. I am holding it as protection against currency collapse. I am holding it because when they issue the next latest and greatest currency, I will have something to barter with. That's how you preserve wealth. You can't preserve wealth in any game that is created and run by bankers. They're going to find a way to beat you every time and we know one other thing. Bankers have destroyed every fiat currency ever created. The destruction of worldwide currencies is occurring right in front of your eyes. I don't need a navigation device to show me where this is headed.

Can government confiscate our gold? Well they can try. They can try to tax it out of existence. But I doubt they will get a lot of support from the people who own it. They'll be getting their support from the people trying to steal it from us.

You ever wonder why there is no "gold mine" on a monopoly board?

Gresham's law is accepted because people with two types of currency will always trade the weaker currency away- holding the more valued currency for themselves.


Gold is real money. It is wealth preservation. You know gold has great value when every banker in the world is trying to get their hands on it while telling everyone else it is worthless. Gawd what I wouldn't give to know how much gold Ben Bernanke owns.


Falcon said...

My German Mother (WWII) told me a story how they bought food on the black market using gold. They traded off their rings, watches, necklaces, anything that contained gold. Lesson learned about precious metals.

PeterE said...

I read them talking about how we are about to fall of the edge. "Buy gold and silver", "Stash food, water and guns." I agree. Or at least i used to. I think the problem is that they can keep winding this QE / 0 interest (or negative interest ) gig out for a fair bit longer. My friends don't agree. The bloggers don't agree. But all the doomsdayer's predictions have failed to come true. All those graphs that showed us where we fell off last time and show us that we are there again don't matter. We didn't collapse again. It seems that past performance is not indicative of future direction. If it was then we'd be in a huge global recession and there would be fighting in the streets. Ain't happening.

Then i came across this;


(Hope that i can link here! )

The above makes sense to me and is worrying. It basically says this QE thing can stretch out for several more years.

I once said to a friend - who was adamant that 2012 was the tipping point - that once the lines on the graph get close to the end of the scale, all that needs to be done is to get a bigger piece of paper and extend the x and y axis of the graph. Problem solved. Now those lines aren't about to max out any more.

I wonder how long they can keep extending the x and y axis?

Time will tell...

Brian said...


I read the link and the comment thread which I found to be quite humorous. Of course I agree with the guy now- mostly because the rise in gold came with the assumption of mass inflation brought about by QE and ZIRP. ZIRP as it turns out has been largely deflationary which none of us correctly figured out.

I think that is why we see the meteoric rise in gold thru 2011 until people realized the great hyper inflation just wasn't happening.

It's been basing ever since at levels around 1200 that seem to keep production on line without cutting new supply.

I think it can safely be bought here.

Thanks for swinging by Peter and leaving the linkage.


Compleat Patriot said...

I look at like two economies, they own the Monopoly Board and the citizens are pieces on the board or one large mass of resources, along with the rest of the resources on their board they control. The USG holds enough real resource assets vs its debt which it's subject citizen serfs are legally contracted for the debts repayment. We of course are negatively effected by their actions. I'm watching for them to be negatively effected by their own actions. I'm interest in who the Banking Cartel represents as they are only third in the power position playing this game of global Monopoly as the various Charters and Treaties connected to the various "governments" which are all privately owned corporations used for resources management verify..