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Gold & Silver Money Has Devolved Into Debt and Plastic

July 28, 2015

Central banks will disagree;

Keynesian economists probably disagree;

Too-Big-To-Fail banks don’t care;

But I think the following is generally accurate regarding the devolution of gold and silver money.

IN THE BEGINNING:  Gold and silver coins were used as real money for several thousand years.  Gold and silver were universally recognized as a store of value.

140 YEARS AGO:  The $20 Gold Double Eagle Coin was globally recognized as money.  It contained 0.9675 ounces of gold and its purchasing power was unquestioned.

V-1875 double eagle obv

137 YEARS AGO:  The $1 Morgan Silver Dollar was universally appreciated and valued.  The silver dollars contained 0.77 ounces of silver, were pretty, used in daily commerce, and minted by the millions in the U.S.

V-Morgan Dollar

AND THEN CAME PAPER MONEY:

The U.S. government issued Gold Certificates and Silver Certificates that were officially exchangeable for gold and silver.  These intrinsically worthless pieces of paper were valuable because they were considered “as good as gold” or silver.

 

V-gold-certificate-image

 

V-Silver Certificate $1-xx

Eventually the gold and silver certificates disappeared and Federal Reserve Notes replaced them.  The Federal Reserve Notes looked similar to gold and silver certificates, but sadly, they were nothing more than a piece of paper that represented a loan from (hence the word “note”) or obligation of the United States, issued by the Federal Reserve.

These Federal Reserve Notes passed as money because the government decreed they were legal tender, and they were backed by “the full faith and credit” (confidence) of the U.S. government.  Unfortunately the notes are not money, have no intrinsic value, and are not backed by assets.  They are loans to the U.S. government backed by the debts of the United States and the future taxing power of the government.

Even if they weren’t real money, the Federal Reserve Notes did the job – commerce and business thrived, but money was no longer a store of value.  The Federal Reserve and government deficit spending created inflation, and a five cent cup of coffee inflated into $2 coffee along with higher prices for almost everything.

DEBT AND CREDIT CARDS:  Use your credit card, the vendor pays a fee to the bank, and you pay interest on the debt.  We use Federal Reserve Notes (debts) to pay our credit card bills (debt).  We “invest” excess dollars (debts) in bank accounts (debts the bank owes you), bonds (debts) or something else.  Gold and silver were supposedly no longer needed in the financial system, and gold has become a “legacy” or “traditional” asset, taxed like an investment, and is no longer considered an alternate currency.  The Chinese, Russians, Arabs, and Indians disagreed, but gold and silver prices have been “managed” so westerners would not lose confidence in the paper and digital replacements for real money.

Other replacements for real money:  Prepaid Visa Cards, Debit Cards, Cell Phone Charges, Bitcoin, and more.

WHAT HAVE WE DONE TO OUR MONEY IN THE NAME OF CONVENIENCE AND BANKER PROFITS?

 

CONFIDENCE:  Our financial system works because we have confidence that we can spend debt based currencies, with no intrinsic value, and the next person will exchange goods for those currencies.  He will make the exchange because he is confident he also can exchange currencies for other goods he needs.

The financial system is based on confidence in the ability to exchange debts for goods – you accept my IOU and I will accept your IOU.

WHAT HAPPENS WHEN THE CHAIN OF CONFIDENCE IN THE “FULL FAITH AND CREDIT” BREAKS?

Clearly, the financial elite can’t allow confidence in the system to slip away… but confidence weakens when (for example):

  • Global debt of $200 Trillion is increasing far more rapidly than the underlying economies which must support that debt.
  • Cyprus banks “bail-in” (confiscate) depositor money to cover bad bank investments.
  • Greek banks are closed and ATMs distribute only 60 euros per day.
  • Chinese stocks crash
  • $100 Trillion in bonds are recognized as unpayable and worth far less than face value.
  • S. pension plans are underfunded by $Trillions and retirees are worried.
  • Inflation in Argentina/Ukraine/wherever heats up and the governments prepare to drop more zeros off the new currency.
  • Gold prices rise for whatever reason.

Summary:

 

Years ago gold and silver were money.  Physical coins were replaced with gold and silver certificates.  Those certificates were replaced with “Notes” or debt of the U.S. government issued by the central bank.  Those notes have largely been replaced by more ephemeral digital debts in the form of credit card debt, debit accounts, checking accounts, short term debts (T-bills), longer term debt (such as 10 year notes) and derivatives of those debts.  The intrinsic value of those notes and debt instruments is minimal – they are accepted because they are accepted, UNTIL THEY AREN’T.

When that day arrives, we will wish we still used gold and silver as money.

 

Gary Christenson

The Deviant Investor

Discussion
123 Comments
    Jul 28, 2015 28:10 AM

    …..THE 1875 DOUBLE EAGLE above was twenty dollars.
    THE value…..today…………………….WOULD BE……………..$95,000

      Jul 28, 2015 28:12 AM

      based on the picture of a Proof 63

        Jul 29, 2015 29:59 AM

        I wonder in which mint the 1878 Morgan dollar was made.

          Jul 29, 2015 29:01 AM

          Of course though a bog standard double eagle would be only about what, $1100? Not much over spot price. Still a good bit more than 20 bucks; 55 times more.

          Jul 29, 2015 29:40 AM

          SILVERBUG………….1878 MORGAN……..would be minted in three different locations.
          Philadelphia,(plan no marks), Carson City (CC marks) and San Francisco (S marks)
          I question if it is a PROOF…….

            Jul 29, 2015 29:42 AM

            Matt……..I think collects 78 tail feathers…..maybe he could guess………

      Jul 28, 2015 28:52 AM

      $95,000 isn’t a real measurement – a yardstick ain’t what it used to be.

      How many bushels of wheat – then and now?
      How many sacks of onions – then and now?
      How many bottles of beer – then and now?
      How many KJV bibles with red lettering – then and now?
      How many squirrel pelts – then and now?

      -know what I mean?

        Jul 28, 2015 28:56 AM

        IRWIN………..did not say it was a real measurement/ yardstick………but, the value is REAL to a coin collector……………………………………………..the CLAW

      Jul 28, 2015 28:00 PM

      The reason I bring up squirrel pelts is because once’t I was given the job to tally up the number of pelts bought during the winter.

      First tie them up in bundles of 20, then count the bundles.
      -final tally: 3,500 bundles = 70,000 squirrels @ ~$0.72 each
      -it took a dozen beer and two girl friends to get the job done.
      -next assignment was count the muskrat pelts
      -that was a stinky job!

        Jul 28, 2015 28:08 PM

        You were pelted with experience……………….

          Jul 28, 2015 28:09 PM

          Did you ever eat any of your game….squirrel meat that is….?

          Jul 28, 2015 28:16 PM

          Dogs and coyotes got to be fat and lazy.
          -and the ravens had a field day.

        Jul 28, 2015 28:02 PM

        Wow, 70,000 squirrels? I’m guessing that was during the fur boom of the late ’70s/early ’80s.

          Jul 28, 2015 28:02 PM

          Mid to late 60s is when I was being “pelted”.

            Jul 28, 2015 28:39 PM

            That makes the 72 cents each even more impressive considering that an ounce of silver was under $1.50 and gold was $35.

            Jul 29, 2015 29:29 AM

            Found this interesting – CAD/USD rates seemed to be quite stable.

            Highest and lowest CAD/USD rates during the period:
            1965-12-31 — 1969-12-31

            High 1967-10-13 $1 CAD = $0.9324 USD
            Low 1968-01-18 $1 CAD = $0.9174 USD

            Jul 29, 2015 29:34 PM

            I figured they would be fairly close since that was when both were still somewhat linked to gold and silver.

        Jul 29, 2015 29:09 AM

        “-it took a dozen beer and two girl friends to get the job done.”

        That sounds like quite a pelt party — 2 girlfriends, a dozen beers, and all that fur…..wow!

          Jul 29, 2015 29:18 AM

          And think,… he was just squirreling around………….

            Jul 29, 2015 29:39 PM

            fur real….

      Jul 29, 2015 29:42 AM

      the MAIN POINTS I was going to make………was that if you had purchased this coin in 2001………………………………………..the price was……………….$25,000

    Jul 28, 2015 28:24 AM

    I can sell a gun faster than I can a diamond or a coin. Done all 3. Want to see an investment that has gone up 5 – 10% a year since 1987? Start buying machineguns. One of the best darn investments you can make. Beat out stones and coins every time. I also own physical stones and gold and silver coins.

      Jul 28, 2015 28:59 AM

      I agree with you on the guns……no problem selling and quick……..

        Jul 28, 2015 28:01 PM

        YOU are what OWL calls …………….Diversified…………..

      Jul 28, 2015 28:28 PM

      Dang Jason……(aka Machine Gun Kelly).

    Jul 28, 2015 28:58 AM

    You can sell beer even quicker…………………………

      Jul 28, 2015 28:28 PM

      I can drink beer faster than I can sell it.

    Jul 28, 2015 28:59 AM

    The king of gold will render Yellen an irrelevance.

    http://www.321gold.com/editorials/thomson_s/thomson_s_072815.html

    Jul 28, 2015 28:11 PM

    ANDY HOFFMAN………..good listen to at FSN……..financial survival network…..

      Jul 28, 2015 28:13 PM

      Andy says…………no way will the FED raise rates……….they are now on the long end, and the US treasury is on the short end. Raising rates, will dive the pretend economy.

      Jul 29, 2015 29:03 AM

      Hassle the Hoff. Or maybe Hassled Hoff at this moment.

    Jul 28, 2015 28:41 PM

    Everything is going to get a BIG hair cut and you will be working till you die…Thats how the problems will be solved not by gold or silver…..
    Its a demographic issue as well.
    I dumped my ZJG.TO gold trade as it looks to weak for me…SAFETY FIRST…

      Jul 28, 2015 28:46 PM

      Lot of guys with shaved heads in the usa…………seems to be in style. Goes along with riding down the street with their leased Benz.

    Jul 28, 2015 28:14 PM

    When your going bald that’s the way to go…I guess

    Jul 28, 2015 28:19 PM

    Look at Alberta broke as hell. After tax money..
    Was the biggest oil boom in history!! Gov PIGS don’t manage money PIGS PIGS PIGS
    Nothing put away for the hard times so they will come a SQUEEZE the Shit out of the working class. Gettin sick of this country….

      bb
      Jul 28, 2015 28:48 PM

      The voters loved it Bill.
      They love the idea of raising the minimum wage too.
      For some reason people now figure a minimum wage job should support a family.
      Well, at least velocity will increase.
      If fixed income people get in trouble, heck, just print and double the pension.
      Issue resolved, right?

      I wonder if that “shtick” would get a guy elected?

        Jul 28, 2015 28:58 PM

        The sheeple are clueless…Min wage maybe if you live under a bridge!!

        Jul 29, 2015 29:03 AM

        Some people still think that in 2015 people can live on $10 per hour.
        After taxes that is about $65 a day.
        After you rent a very small room and buy groceries and pay for your vehicle you have nothing left but that is a living wage going nowhere but spinning wheels.

          Jul 29, 2015 29:43 AM

          Way too many people do not understand economics and think that there should be a minimum wage.
          – 3.9% of U.S. workers earned the minimum wage in 2014.
          – 50.4% are between the ages of 16 and 24
          – 77% are white
          – More than half are male
          – 64% are part time

          If you want to eliminate jobs, force the job providers to pay employees more than they are worth.

            bb
            Jul 29, 2015 29:20 AM

            Not sure if “decent” workers get raised from minimum wage.
            Or if that’s what it takes to have a wage increased.
            I supervised a lot of “workers” for companies, the companies would resist any increase in pay they could whether the employee was “decent” or not.

            There is a good argument for socialism and lots of people like the idea.

            Personally, I see it as faulty, even tho it looks appealing to many people, but capitalism doesn’t work either, it kills the earth.

            I think we need a new system, no idea what that is tho, but the systems we have used since time began have not worked, unless its living in TPs and hunting buffalo.
            Maybe the Aztec, Myan or Inca had it figured out but their toast too.

            On the other hand, the lousy systems we have been using have taken us from discovering fire to space, so maybe they do work.

            Jul 29, 2015 29:38 AM

            Capitalism does not destroy the earth. That bullshit propaganda. What people today call capitalism is really not capitalism at all. Socialism (collectivism) is the destroyer. Most people do not understand this because most people despise thinking or the work it takes to learn something.

            Jul 29, 2015 29:10 AM

            Btw, nothing is as destructive to the environment as the socialists’ debt-based ponzi scheme monetary system yet nearly all environmentalists would rather squawk about a million other infinitely less significant threats.

            Jul 29, 2015 29:10 AM

            Way too many people think that employers paying minimum wages to adults is fair or decent.My Mother was 70 years old and making $10 per hour -which is now minimum wage- running a small store. Meanwhile,her grandson of 16 years of age began working at $15 per hour. So,a lifetime of experience and wisdom gets slavery wages and a kid that has no mortgage or bills gets 50% more as a child. Some system you rich folks got going here.

            Jul 29, 2015 29:14 AM

            Interesting but businesses are business people and they will pay the minimum they can get away with . That is not necessarily what their employees are worth. If they could get away with paying people nothing, they would pay nothing. I have worked in the past for somebody like that.
            Then the presence of social security benefits complicates the issue a lot. It makes it not worth working. It’s called the poverty trap but is not necessarily a poverty trap but it is a trap preventing people from being productive, in fact punishing them for being productive.
            Means testing of benefits makes things even more complicated and introduces the moral hazard of making it a bad decision to save money. Once you stop saving money, you are at the mercy of the State. (Ha! Even if you do save money you are at their mercy via financial repression: low interest rates, etc.)
            You could be getting more money sitting at home watching the football game on TV than if you were at the food factory packing 10,000 sandwiches a day and having your soul ground down to dust 8 hours a day, 5 days a week. That’s not right.
            In a social security society, there has to be a minimum wage and social security should never pay anyone in total more than what the minimum wage would pay them. However the social security system pays a lot of people much more than the minimum wage.
            By the way it does not matter how hard you work if you are on the minimum wage. If there are no vacancies for promotion you are stuck there and you will probably come home at the end of the shift to tired to think. That does not make it easy to apply for better jobs. The lower the wage, the harder you have to work.

            bb
            Jul 29, 2015 29:01 AM

            Were the Whalers Capitilists? or the Cod fishers? was it socialism that made the island of plastic?
            Is it Socialists that buy congressmen or Capitilists? Was/is there profit to slavery?
            If you don’t see the destruction from a capitilist system your blind, sorry.

            You make my point when you state socialists destroy, we need a new system
            Both systems are destructive.

            Jul 29, 2015 29:28 AM

            That’s what makes a market. Everyone wants the best deal —laborers included, not just businessmen. Deals should be made without force.

            Matt, employers have to compete for workers, if they pay too little, they will have a hard time keeping them or attracting those with the skills they need. A worker’s value is set by economic reality, not the wishes of the worker or politicians —who, btw, make their living by pandering to ignorant voters (I know, that’s redundant).

            FYI, the system we’ve got is more socialist than it is capitalist, by far. Where slave wages exist, you can thank government meddling and their fiat money WMD.

            It’s unfortunate that this quote came from Winston Churchill but he absolutely nailed it:

            “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”

            Jul 29, 2015 29:53 AM

            BB, when businesses benefit from special relationships with government, you obviously have a form of socialism not capitalism.

            Your plastic island and slavery has nothing to do with capitalism. Slavery ended because it became uneconomic, not because people suddenly stood for anything. Therefore, capitalism likely hastened its end. You apparently don’t realize that the socialists have replaced it with an extremely profitable, insidious slavery.

          bb
          Jul 29, 2015 29:46 AM

          Minimum wage was never supposed to be a “living” wage.
          If a person wants to support a family they need get some kind of education.
          When minimum wage gets to supporting families we have moved pretty much to socialism.
          Mayb that’s ok, I don’t know, but eventually the system runs out of other peoples money. (a they say)

            Jul 29, 2015 29:02 AM

            Decent workers get raises and don’t stay at minimum wage for long even without an education.
            Socialism is criminal.

            Jul 29, 2015 29:13 AM

            Nice that you make that decree on society,BB.An adult supporting themselves on minimum wage is ridiculous. Helping a child,never mind a family out of poverty on a minimum wage is a delusion.

            Jul 29, 2015 29:19 AM

            “Decent workers get raises.”
            No they don’t Often they get screwed blind by their employer. You are making assumptions of employers’ morality that are false.
            It’s going to be interesting in the UK because the minimum wage is now going to be called a National Living Wage and is going to be bumped up by the supposedly (but not really) ‘free market’ Conservative government. Even so the min wage is already more in the UK than in the US and since it was introduced unemployment has generally fallen.
            In my view if an employer cannot pay a worked enough to live on , they should not be in business, period.

      Jul 28, 2015 28:42 PM

      Hate NDP but nothing I can do, I only have one vote.

        bb
        Jul 29, 2015 29:52 AM

        Lawrence, Harper wants bill c51, he implemented page 13/14 economic action plan
        (banks own your money) and the Beyond Boarder action plan, kinda implementing the ndaa in Canada.
        In other words, a police state.
        The liberals support that.

        The only option to a police state is ndp.
        And yes, they have economic faults imo

          Jul 29, 2015 29:24 AM

          No NDP, period. I hate socialism since I tasted it for more than 20 years. Voters can always talk to their MP when they feel strongly about something.

            Jul 29, 2015 29:15 AM

            Yes,and you get a Harper when a country stops thinking or caring for one another.

    CFS
    Jul 28, 2015 28:27 PM

    Off Topic;

    I wonder if China is preparing to take Taiwan?

    http://www.popsci.com/china-practices-pacific-d-days-tanks-and-hovercraft

    What would Obama do? Nothing!

      Jul 28, 2015 28:59 PM

      Yup Ive got a hate on for China. Their taking some of the Philippines too..US Navy isnt big enough…

        Jul 29, 2015 29:16 AM

        America is the shining example for the world.

      Jul 28, 2015 28:46 PM

      Chinese don’t like government until there is sovereignty issue. If US intervene people will unite around government. Taiwan has been one province in China. Both PRC and ROC constitution recognize it. I hope US does not mess with it otherwise The defeat for US is assured.

        Jul 28, 2015 28:20 PM

        I don’t care for the US when their covertly invading country’s. Everybody should adhere to the word of LAW…The world would be a decent place..
        Cheers

          Jul 29, 2015 29:17 AM

          100 years late,but a thought for the ages.

            Jul 29, 2015 29:06 PM

            good one Matt…………..I agree……..Bill Holter put out a good article this week covering the same issue.

      Jul 28, 2015 28:19 PM

      CFS, Taiwan is and was Chinese territory, ( The Island of Formosa). I wish America would stop interfering in other countries territory.

        Jul 29, 2015 29:29 AM

        Taiwan is not Chinese territory any more than Alaska is Russian or the commonwealth nations are English possessions. Man, when do we move on and let the past just die? If a territory cedes and elects its own government we can assume it also has its own destiny. Should North and South Sudan be recombined? Maybe Turkey can also reclaim Spain, Iraq and North Africa.

        Please DT….Taiwan is an independent nation under the law.

          Jul 29, 2015 29:31 AM

          Can you check constitution of republic of China (taiwan)? Republic of China is the former government who were defeated and fled to Taiwan. It possesses taiwan province and part of fujian province. It always claims it owns whole China plus Mongolia republic. It has been recognized as one countries by two governments as always, each claim they own the whole country. There is the joint announcement in 1992 by two governments as one country two understandings. Even UN has to expel ROC to admit PRC.

          Jul 29, 2015 29:17 AM

          Hope this argument does not show up anymore. US cannot act against the constitution of both sides. If they do, it is illegal under international law. Off course US does not care, what it cares is not to get defeated, which is it always been.

            Jul 29, 2015 29:41 AM

            Countries are divided all the time, Lawrence. There have been hundreds of incidents in the past century going back to 1900, So it matters not what is written before if there are separate governments and people support the separation of their respective territories and nations.

            Look at how borders changed within Europe during the wars there as an example. Look at the Middle East, Israel, Palestine, Iraq, etc. How about the way Russia dissolved into a multitude of nations or how African maps and regions were redrawn.

            Rhodesia comes to mind. Don’t you think all those countries had constitutions, maps, claims, borders and the belief in their inalienable right to govern? So why are they broken up now? Like the Balkans or hey….how about the Roman Empire….

            Maybe Italy should assert its rights to England again. Your argument does not make sense because the paper the old constitutions are written on have been superseded by historical events themselves.

            That is what redrew the borders. You cannot go back and change it all afterwards as if in hindsight it makes it all OK. Especially when the state and its people object to being occupied or brought under the control of another country.

            Jul 29, 2015 29:55 AM

            Sure border changes all the time. Everyone knows. But if US comes in and force its own will on other countries, it is no difference than Great Britain has done to South and West Asia which is considered imperial and hated by most people, which is also what US is doing now in middle east and hated by most countries in the world. For US to get some legitimacy, at least one side of two Chinese governments has to abandonee its claim. Since we are talking about morality here, the argument is whether it is lawful. When it comes down to reality, US simply does not have the power to do it. US never cares about international law anyway. However, it has been defeated twice miserably in Far East. Both times China sent troops into the war. I don’t think it can take the third defeat.

            Jul 29, 2015 29:04 PM

            You are barking up the wrong tree. I am not talking about war here. This is about an exercise in common sense not about your national pride and belligerence. BOTH parties will have to agree to keep the peace. It is in everyone’s best interest.

            Peace is good for business Lawrence. You ought to study up on that a little.

    CFS
    Jul 28, 2015 28:55 PM

    interesting Kinder-Morgan pipeline reversal:

    http://www.howestreet.com/audio/Schaefer_Keith_2015_07_28.mp3

    Bad news for Canadian gas.

      Jul 28, 2015 28:03 PM

      Thanks for the link! Yes market prices go down big time but not for the consumer…SCREWED as per usual.
      Just like my Air Canada idiot company. 1 leg 1hr my fight was $200 + $110 change fee + $25 1 bag…now $335 for and hr flight Jet fuel has dropped more then 50%. No F%$$%$ break from those assh##@

    Jul 28, 2015 28:30 PM

    Gold is money just ask Schiff…Your money lost 38% incl fees. Farly hot off the press…
    http://www.avaresearch.com/articles/1778/Peter-Schiff-Has-A-Terrible-Track-Record-But-Gets-Daily-Air-Time-From-The-Media.html

      Jul 29, 2015 29:04 PM

      Bill, if you have time ……..go over to usawatchdog and listen to Craig Paul Roberts and give us some feed back as to what you think………would appreciate, and there are no ticks involved……………………thanks again…………best……………….ffmccf

    CFS
    Jul 28, 2015 28:51 PM

    expiry today on COMEX, but LBMA expiration is this Friday.

    Jul 28, 2015 28:09 PM

    When my children were in their early teens and we went out shopping I would always show them my credit and say’ I think I’ll use this for the purchase because it isn’t real money only plastic, the inference is you don’t have to pay it back. That’s how they fool the sheeple !

    CFS
    Jul 28, 2015 28:28 PM

    i do not understand the Greek government. They need to print drachma NOW.

    http://www.zerohedge.com/news/2015-07-28/greek-economy-faces-total-collapse-doctors-flee-retail-sales-plunge-70

    the country will takes years to recover if they wait for the EU to make a decision. MMy guess is that the EU will not throw more good money after bad.

    Jul 28, 2015 28:29 PM

    DT it’s a median and when you use it most don’t realize how much they spent. When it comes to interest man some are dumb as hell!
    Not unlike the mutual fund scam industry.
    $10k at 10% in 30 hrs is about $175k. At 2.5% fee you have bout $84k minus taxes.
    Dude yer screwed lol.

    Jul 28, 2015 28:24 PM

    Speaking of debt….I have been telling Lawrence that China is in trouble and will fall hard.
    I just ran across this piece..Govs are all the same.
    http://moneytalks.net/article-and-commentary/todays-best-money-making-ideas/currency/15571-china-major-devaluation-coming.html

      Jul 28, 2015 28:50 PM

      Any idea who lend to them, Nobody has that kind of money.

        Jul 28, 2015 28:25 PM

        No but multiple country’s can issue bonds..?.
        IMF?? don’t know their abilities…..
        Scary thing going on in this world….That is for sure.
        Careful!
        Best

      CFS
      Jul 28, 2015 28:47 PM

      Bill,
      Your Cite included “today’s best money making ideas”, but included not a one!
      not even a mention of YANG

        Jul 29, 2015 29:06 AM

        I’m talking big picture stuff. DOW Dollar Gold and the stocks.
        I don’t do stock by stock. I said get the hell away from gold and the junior index lost 50%
        I say I’m shorting oil 3 months ago and even to bird HOD.to.
        Bob Moriarty said dollar is going to crash. After a CORRECTION I bought 6 figures in the dollar a dumped some loonies. 10% loss shortly after.
        What happened to Birdman anyhow?

          Jul 29, 2015 29:10 AM

          I’ll say it again…gold to likely see mid hundreds in the years to come.
          But not without its rally’s.
          I hate when 321gold as 95% is hog wash but Puru Saxena has some brains. Read it I totally agree

            Jul 29, 2015 29:33 AM

            You really think so? The all in cost is $1335 recently and even the sustainment cost is >$1100. Do you think people will produce at a loss of 700 per ounce? It is brutal. Where the money comes from? All physical is bought by India and China even not including other countries.

            Jul 29, 2015 29:37 AM

            A lot of producers are under water now. Many companies are living on borrowwed time. Yes they will shutter the mines as they were prior 2000. I think we are in a deflationary environment and it will continue. We haven’t even seen the trickle down yet. A lot of people around th world in bad economy’s will be buy less gold. It’s tough times. Russia and China central central bank will sell of some gold when no one is looking.

          Jul 29, 2015 29:31 AM

          BILL…………BIRD’s new moniker is “A Listener”

            Jul 29, 2015 29:52 AM

            Are you sure? Listener does not own a turtle. I think you are making that up.

            Jul 29, 2015 29:08 AM

            I can not help it, that listener likes turtle soup…………..

    Jul 28, 2015 28:26 PM

    Completely OT but extremely humbling. I have no idea who wrote this masterpiece, but I thought it would be worth a few seconds of your day to read something that all of us need to resonate with more on a daily basis. The beauty, meaning and simplicity of life itself.

    ~ A Prize Possession…

    One day a very wealthy father took his son on a trip to the country for the sole purpose of showing his son how it was to be poor. They spent a few days and nights on the farm of what would be considered a very poor family.

    After their return from the trip, the father asked his son how he liked the trip. “It was great, Dad,” the son replied. “Did you see how poor people can be?” the father asked. “Oh Yeah,” said the son.

    “So what did you learn from the trip?” asked the father. The son answered, “I saw that we have one dog and they had four. We have a pool that reaches to the middle of our garden and they have a creek that has no end. We have imported lanterns in our garden and they have the stars at night. Our patio reaches to the front yard and they have the whole horizon.

    We have a small piece of land to live on and they have fields that go beyond our sight. We have servants who serve us, but they serve others.

    We buy our food, but they grow theirs. We have walls around our property to protect us, they have friends to protect them.”

    The boy’s father was speechless. Then his son added, “It showed me how poor we are.

    Jul 28, 2015 28:29 PM

    This sites commentary is just ridiculous…I suspect they want it to be.

      Jul 28, 2015 28:34 PM

      Sorry about that Mrs Gisty! In the future I’ll be sure to keep my OT posts to a minimum, just for you.

      Jul 28, 2015 28:43 PM

      Why are you here then?
      I post some seriously accurate info to waken the sleepy eye sheeple.

        bb
        Jul 28, 2015 28:28 PM

        Bill, sleepy eyed sheeple don’t generally stop at this site.
        I just kinda doubt this is the site to “wake people up”.

        You will probably find that when you do find a site you could inform people, they wont care.

          Jul 28, 2015 28:32 PM

          Ya its a waist of time most likely… Cheers

          Jul 29, 2015 29:27 AM

          I guess we need the FREEDOM OF SPEECH COUNCIL to meet, and vote on what we should post………..I guess some people do not have a scroll button on their hand helds…….
          Special note. Since the last few years has been hell for most of the gold bug, I do not see why there should not be a little humor in this blog. TAKE a look at any news paper in the country, and they use to have FUNNY COMICs…………………JMHO

    CFS
    Jul 28, 2015 28:17 PM

    Ratio of COMEX contracts to physical gold hits record high……less than 1% physical available, without seeking emergency new material, which has happened before.

    Jul 28, 2015 28:10 PM

    More Evidence of Interim Lows in the Making
    Gold and silver are generating weekly TD Sequential 9-13-9 signals. These have taken since last September to develop and occur once prices:
     Have nine consecutive weeks of closes below four bars earlier (called a Setup).
     Are followed by a countdown of thirteen bars closing below or equal to the low of two bars
    earlier.
     Generate another nine-bar Setup.
    There are only six such weekly 9-13-9 patterns in gold since 1970. Each rallied to the 50-week exponential moving average within sixteen weeks (currently $1205 and declining at $4.50 per week). Three went on to rally above the 50-wk ema did by an amount that equaled the amount they had been below the average at the bottom. Only one example was offside for more than one week.

      Jul 29, 2015 29:57 AM

      My wife just walked in, handed me a smootie, saw I was looking at this chart…..HER remark was..”that does not look good”. I chuckled , and said You’re right.(never argue with a women) But, a quick observation would say differently. GREAT CHART………..thanks for the info.

        Jul 29, 2015 29:04 PM

        funny scenario.

    Jul 29, 2015 29:44 AM

    GDXJ is down but GDXJ call premiums are up today. A low is very close…

    Jul 29, 2015 29:27 AM

    Vortex yr remark was A ok…

    Jul 29, 2015 29:30 AM

    Thank you Matthew… very relevant.

    Jul 29, 2015 29:11 AM

    Silver upward pressure is obvious. Anytime silver tries to break out, gold gets smashed. This is what John Embry described as using gold to suppress silver. They don’t have much silver left.

      Jul 29, 2015 29:16 AM

      Good point Lawrence. SLV up and gold down …

      Jul 29, 2015 29:57 AM

      I use to love John Embry ran the best gold fund at RBC. Then he met Eric dunt dunt dunt daaaaaa. Very poor at predicting moves for years more like analyzing from hope.

        Jul 29, 2015 29:21 AM

        He was the first major money manager analyzing gold manipulation and fired by RBC. His prediction for long term is not matched by anyone. I remember he was predicting $1000 gold before year 2000! He also predict silver’s huge rise and predicted how government will suppress gold and what their policies will eventually cause disasters. It is all working out as he predicted. I don’t think he makes short term forecasts. He is not technical person. He is pure fundamentalist. With fundamentals you can only look long term.

          Jul 29, 2015 29:44 AM

          I’m not a believer in manipulation. I use to do a little research for Sprott. I had better insights ( qoute from James Fox head of sales)
          From above 4 u.
          A lot of producers are under water now. Many companies are living on borrowwed time. Yes they will shutter the mines as they were prior 2000. I think we are in a deflationary environment and it will continue. We haven’t even seen the trickle down yet. A lot of people around th world in bad economy’s will be buy less gold. It’s tough times. Russia and China central central bank will sell of some gold when no one is looking.

            Jul 29, 2015 29:16 AM

            Not sure about Russia. China has a lot of other asset to sell. Treasury comes to mind. China need the gold to add credibility to the currency.

            Jul 29, 2015 29:23 AM

            When our research is wrong I’ll be very surprised. When the poop meets the Fan China will sell some.

            Jul 29, 2015 29:32 AM

            Nice to have a research. China seems never follow Western command. So far even the most well know people have been wrong about China for many many years. Hope you are right so I finally have money to buy property in China. Wait and see.

      Jul 30, 2015 30:17 AM

      There is no shortage of silver, Lawrence.

    Jul 29, 2015 29:44 PM

    With my loan from the bank (margin), I get by the bank owing me debt (bank account), I can invest in a Triple leveraged US 25+ YR Debt ETN (a debt to me that mimicks with leverage the debt of a future debt). I’m not sure if this is laughable and upsetting how much it’s all a house of cards.

    Even with selling most of my physical recently, I still hold on to at least two Gold Maple Leafs.