Doc’s view of Gold and the conventional markets
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Marc, the one question that has been bothering me lately is if the government will let us sell/ use our gold and silver in order to protect ourselves. What is stopping the President from issuing an Executive Order stating that citizens have no right to hold any precious metals; or, another theory, you will be only allowed to sell your precious metals only to the government. For example, let’s say post-collapse gold is worth $7500 but the government will only give you $700 for it- firm offer, take it or leave it.
Actually, I think the new routine will just be to tax the hell out of your gains. Like a windfall tax or something along those lines.
Chris,
Absolutely….very valid concerns. The governments doesnt want to chase down thousands citizens hoarding of one ounce to hundreds ounces of gold. Additionally, It is easier for the government to pay you off at the “market’ price with their printing press. Because that currency is now being backstopped by the gold they receive in return..adding to their gold reserves and thus resetting their role in the new monetary paradigm. Furthermore, the government realizes (OR DO THEY???) that any confiscation would lead to a black market of selling gold through subversive channels to get properly perceived currency payments in return……a whole NEW CAN OF WORMS HAS REARED ITS UGLY HEAD. The government doesnt like NO CONTROL mechanisms. More than likely gold and silver that are held by the fortunate few Americans who understand the reality of the situation – will more than likely be better off in terms of future “purchasing power” and wealth transfer shifts. Having a finite precious metal resource gives you POSSIBLY an opportunity to survive; however it doesnt guarantee us anything – that is life…..I will say this – finally – I would rather have it than not – during these times of MASSIVE GLOBAL…that is GLOBAL money printing……on an unprecedented scale and thus we are sailing in UNCHARTED WATERS…..
It’s better to have it than not. But who knows what these crooks will try to do post-collapse. But I am fairly certain they can easily track down those who have paid for their precious metals with credit cards. Cash money is always best when you buy your gold and/or silver. Anyhow, it’s something that has been bothering me lately, and was wondering what other people thought about it.
Birdman makes a great point up above…….very valid too…but, the comment still stands…I will keep my insurance and take my chances……..if a windfall profit tax is imposed….use ur imagination…..what Americans would do…I will just leave it at that….:))
By its very definition, “post-collapse” means there will be very little left resembling any sort of cohesive, coherent, functioning government, probably at any but the most local level. So, just who’s going to be “track[ing] down” whom? And for what reason, for that matter?
Nice cup n handle on silver with a descending wedge nearing completion on the handle.
I am betting on a move up with a bottom on Tuesday,myself
we should rally in PM,s now….watch russia
Buy physical precious metal forget about anything that is speculative, nobody has a clue anymore.
DT,
You pretty much GOT THAT RIGHT!!!
Buying physical three years ago was fairly speculative.
Buying here at $20 silver is less speculative.
There is supposed to be one more down but the question is do we go up substantially from now into mid-September?
In late October I will buy some more physical.
Under Obama The US has added 7 trillion $ to their national debt in 5 1/2 years. It’s everyone for himself it’s just that bad!
The middle class jobs aren’t coming back, high tech is replacing people in the work force and if you think it hasn’t just wait till your job is gone. Who would have thought ten years ago that aircraft would be pilotless or cars driverless.
Don’t forget the foreign workers who will gladly do your job for less. I personally know a person who worked in the oil sands and was replaced by a Filipino.
And who would have thought that Africa would become the factory for China! While doubts continue to persist that Africa has real potential I can tell you all from first hand experience that the biggest boom in manufacturing capacity growth is now taking place here. Industrial parks are opening on a regular basis. Billions upon billions of dollars are flowing in from all quarters and employment prospects for locals are surging even as the West is trapped in near zero growth conditions. The massive labor shortages in China are the fuel behind this trend and it is expected to keep growing. And incidentally, the destination for much of this production is not even Western markets which are slowing but is in fact right back to China which is slowly becoming a consumption economy. So there is stability in this evolution. But don’t come here to get a factory job. Wages are as low as 30 dollars per month for unskilled workers. Chinese factory workers have themselves been priced out of the market due to wage demands and their union movement barely got lift off before the factories started closing up and shifting to the dark continent. The build out over here is relentless now. It is powered by Asian money for the most part and Africa is destined to be the worlds engine of production in the future. So yeah…it is probably one of the best destinations for capital that still remains at a time when everything everywhere has gone bubbly and is priced for a decline. I will just say this. When the old adage of buy at the bottom and sell at the top is being ruminated upon there could not be a better real world example of this when comparing Africa economies with the West.
Rapid growth will often result in significant change to the local environment.
How are your areas going in regards to rubbish disposal Bird ?
Is it being treated at least half responsibly ?….or is stuff being dumped just anywhere currently convenient ?
Sadly infrastructure in these growth areas often lacks the production promises of corporations involved.
Hope you guy’s there don’t suffer long-term.
Cheers.
And yet in 2009 silver was 15-$20.
Five years later and Comex has silver priced at $20.
I would like to see gold make a quick trip to $1268 and reverse sharply. At the same time, I would like to see the HUI at 225 —hopefully tomorrow!
http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&yr=1&mn=3&dy=0&id=p33399707640&a=361926967
Matthew, I’m watching silver particularly and we’re only about $.20 away from the $19.90 figure—–probably good place to purchase stocks. We should get a short term bounce anytime then.
The miners need to cooperate and drop a bit, too. Whether they do or not, I think the sector is in for more than a bounce.
Doc,
For some reason Im not convinced yet we are moving higher so fast. One indicator or chart I like watching is gold/silver ratio. I believe we need to see the 80s before we getting rocking. A final spike but where that puts gold and where that leaves silver is a good question?
I agree.
I’d like to see the Coors Light Twins in my Jacuzzi. ( and in even less than their usual attire, of course )
And?
Matthew! I don’t think any further specificity would be appropriate.
Not even the price of tea in China?
They just had a question on jeopardy who is this person and they showed the man’s face and two of the contestant’s were US teachers but nobody knew the answer, guess who? It was The Canadian Prime Minister, Steven Harper.
Steven who?
The typical “U.S. teacher” couldn’t tell you who’s buried in Grant’s Tomb.
If you aren’t worried about artificial intelligence taking over, you better be very careful of your own judgement.
DOC ! BY STRONG !!!!!!!!!!!!! https://www.youtube.com/watch?v=sebOCnhmlJU
I’m agnostic on the issue of a secular bear or secular bull market in the broader stock market but you have a clear choice here– either buy the S&P at near all time highs or buy things like silver and mining stocks that have been taken to the wood shed over the past three years. The divergence between the precious metals sector and the conventional market has rarely been so great.
Dr. Jordan…GREAT, GREAT point!!
Doc Postma,
I agree with your analysis, 100%. If I was a betting man, I think there is going to be a last gasp in the conventional market, say Dow 17500, then look out below. PM stocks and the metals will go down with it for a bit, but will recover quickly and reach new highs just like in the run-up starting 2008/9 after the deep, but short, fall then. But then, I’m not a betting man, and am keeping my powder dry.
For government to do anything in respect to gold and silver is do deny their own assertion that the metals are only rock and worth nothing and that banks and governments may have gold because it is a tradition. They would have to do an about face on their position that bank notes and bit of data in a computer is money and gold and silver is not. Does the banks and governments really want to lose face and adopt our point of view? Doubtful I think. So a few people out of millions make some fiat out of the price going up , big deal! It is probably good for the economy. Why should banks and government care one way or another? It isn’t as if any official currencies are really linked to the metals in any way.
From Daily Reckoning…
http://dailyreckoning.com/the-real-reason-the-stock-markets-dropping-and-how-to-play-it/
He says: “Stocks can’t go up forever. And right now, it’s clear that they need a break. It’s that simple.”
Geez, I coulda wrote that, heh
Anyway there’s a trading channel clearly in place until of course, it’s no longer clearly in place…
http://dailyreckoning.com/dr-content/uploads/2014/08/RUD_Pulling_080414.png
Do ya like this channel, Doc?
Hey all:
“The table has been set”; “It is baked in the cake”; “The barn door has been shut’;”What is done…is done”;”We are past the point of no return”;Whatever you want to say – gold and silver will make there way back to the forefront of the monetary-economic center of the universe – it is only a matter of time – and that time WILL ONLY be determine by how long politicians can deny and defy reality. Anyway you look at it – you better have insurance – because there is ABSOLUTELY NO DOUBT you will need it. The ONLY question remains is this: Will the GOVERNMENT let us use it for its intended purpose. I dont have a answer for that – and I cant control that. I can only control what I can control.