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THIS IS GOING TO BE A LONG DRAWN OUT AFFAIR…..
I agree with Marshall….gold is going higher….and a lot higher..
two…three years out….dow and gold…7000….just from inflation…
Gold in hyperinflation:
“The most famous case of hyperinflation is the one that occurred in Germany during the Weimar Republic, from January 1919 until November 1923. According to Investopedia, “the average price level increased by a factor of 20 billion, doubling every 28 hours.”
One would expect gold to fare well during such an extreme circumstance, and it did – in German marks, quite dramatically. In January 1919, one ounce of gold traded for 170 marks; by November 1923, that same ounce was worth 87 trillion marks.”
“Inflation was at first benign, then began to grow rapidly, and quickly became a monster. What’s important to us as investors is that the price of gold grew faster than the rate of monetary inflation. The data here reveal that over this five-year period, the gold price increased 1.8 times more than the inflation rate.
The implication of this is sobering: while hyperinflation wiped out most people’s savings, turning wealthy citizens into poor ones literally overnight, those who had assets denominated in gold experienced no loss in purchasing power. In fact, their ability to purchase goods and services grew beyond the runaway prices they saw all around them.
One can’t help but wonder how the people whose wealth evaporated in Germany during this time felt. In effect, they were robbed by the government – they were on the losing end of a massive transfer of wealth. Of course, there are two sides to the story, as those who held significant amounts of gold and silver were the recipients.”
There you have it…
I find it very interesting to discuss gold’s invaluable use a preserver of wealth and purchasing power. Your views on kitco seems to admonish large percentage holders of gold to a certain degree. I think your insurance policy of 5% or 10% is antiquated at best. I believe you don’t directly disparaged large percentage position holders like myself – but, let’s say you distinctly discourage us. If I continued to follow your theme’s as I BELIEVED them to be, I would be very upset right now. The problem with you is that you REFUSE to acknowledge that we are UNDOUBTEDLY in a secular SUPER bull market for PM’s. Although I find you writing intelligent, thoughtful and very well researched, I think your underlying premise of this gold “super cycle” is way off the mark. With all due respect, I am glad I discontinued following you years ago – when I started dollar-cost averaging into the physical market. I am very happy with my position for the UNCHARTERED WATERS we currently find ourselves in and have grown tremendously in knowledge and fortitude. And, BTW, your last paragraph above very well describes the very potent, historical example of why gold and silver should be held in large percentages. Good luck with your insurance premise as it WILL NOT be enough to offset the vast loss of PAPER wealth – unless you are in the major, mid-tier and some highly speculative junior explorers. But, if you are, then that goes against your insurance allocation premise – would it not.
Thank you and all the best,
By “large percentage holders” I mean as a percentage of the total investment portfolio NOT INCLUDING your home or other (investment) real estate, fine art, antiques or the like. I.e. 40% or more of somebody’s portfolio is in the metals – gold, silver.
My life is a lot more complicated than you might think. Sometimes I feel like I have several persons inside of me. One of them is Jon Nadler. Jon hates gold, but the other person inside me actually loves gold and I keep hearing its voice saying â€śmy precious, my precious.â€ť Iâ€™m always torn between love and hate for gold. This explains why I actually posted a gold-positive message, inadvertently channeling the other person inside me that loves gold.
Always great to have your comments on this site.
Ok, ok I will call you John.
I heard threw the “grapevine” that you had a pretty good sense of humor. Very good – because, before these tumultuous time are over, we are definitely going to need it……..my precious.. ha!.:).
oops…through..as opposed to “I threw up” when I heard you comments about gold…my precious….just joking.
Not really sure why anyone would disagree with you comments.
Mr. Nadler, I’m sorry life is complicated for you, but gold does love you… though, I sense a little tongue in cheek in your comment. I do enjoy listening to your comments and research, though do not always agree. To me, gold and silver help simplify my life with the plethora of things that sway our confidence in world leaders. Try fully embracing PM’s… it’s really quite therapeutic to the psyche… plus paper doesn’t glitter :-).
Marc, just my own opinion, but I think you’re right in saying 40% is a bare minimum at this juncture.
Thank you for your kind words. Sometimes I just don’t know what to believe anymore. I wish I could get rid of the voices in my head. Maybe I should start taking my meds again. That makes them go away, but it’s a lot less fun that way.
Peter is this from you?
Poor joke, my friend!
Please don’t do that. Agree or disagree it makes us all look bad.
Not cool. This blog is much higher brow than that. Spose we should have seen it coming.
Right Brad H,
It is very definitely not cool.
“Seen it coming”? I guess, but tell you what it will have to be really well hidden to keep me from spotting it from now on!
There are other ways to get your points across….putting Mr. Nadler out there on the sly is not one of them – you are too intelligent for that. C’mon man!
Admit it! You’ve been had…
As for Mr. JN, I don’t think he really cares too much what people think or even say about him, looking at the things he puts out. I suspect, though, that even he might get a smirk out of all of this.
When you are a public figure on the fine World Wide Web, you better be prepared for this kind of stuff. In any case, there was no malice on my part.
Of course not, I know that. I thought about it a little bit and if you look past all of it, yep, I swallowed it – HOOK, LINE and SINKER. :).
All the best,
Again, No worries…thanks
Okay guys, I second Marc’s comment.
I know that, Peter because there doesn’t seem to be any malice in anything that you write.
Of course itâ€™s Peter. My email address was always there, unchanged, to see. Didnâ€™t you know from day one? All this time I assumed you were playing along.
I gradually escalated the absurdity of the comments when I realized that maybe the joke wasnâ€™t as obvious as I thought it would be, in order to make it perfectly clear that the JN handle was phony. I didnâ€™t really want to come out and say, â€śhey guys, itâ€™s me, Peter.â€ť
So here goes my apology to anyone who thought JN was really posting here. Meant no harm. Really thought that most people would see through it. Thereâ€™s a lesson in there somewhere. The idea wasnâ€™t really to deceive. My very first post as JN was intended as parody, when Al had drawn attention to one of JNâ€™s bearish articles.
Anyhow, thatâ€™s my two bits on it. The JN handle is now retired. The next time you see it used you can be sure it will the real guy.
I guess I am slow. It did take me a while to pick up on it.
Actually, I have no problem other than I really do believe in listening to both sides.
Actually, yesterday’s post on gold’s performance during the Weimar inflation, was inadvertently posted under the phony JN handle. This happened because the name field had auto-entered it, I missed it and the post went out under the JN handle. I had trapped myself in my own web of deception.
Then, when Marc responded to the apparent discrepancy between the content of the post and what JN stands for, I couldn’t resist horsing around some more. Times are so dire, and after TR’s apocalyptic predictions, I needed a release.
I wonder if people would have believed it if I had posted as Ben Bernanke.
Good point Peter!
please don’t ever do that either, everyone knows I’m really busy and mostly just lurking.
The Real Bernank
Oh boy…what have I done…!
Many thanks for taking some time out of your very busy day to respond, Mr. The Real Bernank!
MAN YOU GUYS HAD ME GOING…..I was really impressed with Marc….really stood up…
You guys have taken mine and Irish’s place for humor…..make it more obvious next time
Where is Irish!!
A friend of mine drew my attention to the goings on here, so I came to check it out.
Peter is a pretty funny guy. But he should remember that what goes around comes around.
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