US mint halts sales of gold coins.

[ZenOps]

http://www.huffingtonpost.com/2008/09/28/us-mint-suspends-sale-of_n_129960.html


Dun dun duhhh...

[ercchry]

"MARTIN CRUTSINGER | 09/26/08 02:57 PM "

wow, thanks for the news from 3 years ago :facepalm:

[ZenOps]

Whoops sorry.

http://www.cnbc.com/id/44087084

Run on gold. Hell, there might not even be enough US dollar paper out there if there is a run on paper.

If everyone sold their US dollar derivatives, there would only be enough cotton money to give to about $1 in every $60 (my rough estimate)

[TomK]

Originally posted by ZenOps
Whoops sorry.

http://www.cnbc.com/id/44087084

If everyone sold their US dollar derivatives, there would only be enough cotton money to give to about $1 in every $60 (my rough estimate)

Jim Rickards figures that inside the bullion banking system, there are about 20 claims on each ounce. So if a lot of people got nervous and tried to take possession, most of them would end up with a cheque rather than the gold.

Some people think there will be a run on the bullion banks which would be no different than a run on a regular bank except that there is no deposit insurance.

Rickards is a very interesting Gold Bug because he doesn't just share fantasies about how one ounce will make you richer than Bill Gates. He also draws on a large body of history to explain the many ways gold owners are likely to get bent over when central bankers lose control.

Listen, won't you?

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/8/6_Jim_Rickards.html

[BigMass]

Jim Rickards is legit. He gives presentations and works with top government officials in countries around the world analyzing economic trends and the effect of economics on national security. I'd encourage everyone to watch this multi part presentation he did recently

ckEoUxAjgls

as for gold, at the current price point there just isn't enough to go around. That's why a rush to gold will have far greater effects than a rush to currency that can just be printed up. Gold needs to be closer to a 5,000-10,000 range to satisfy the monetary supply. Some people are saying closer to 25,000 based on the levels of central bank printing around the world. At current price levels it's also smart to start looking at Platinum

[TomK]

Originally posted by BigMass
Jim Rickards is legit.

There are lots of gold bugs out there with lots of interesting things to say, but Rickards is unique in that his opinions are so informed by "The way things actually happen", rather than simple ranting about how the current system is a fraud and a ponzi, blah blah blah.

It *is* a fraud and a ponzi, but Rickards gives you information you can use and (I think) a more realistic picture of the relationships between citizens, governments and banks as we wind our way to wherever it is we are going next.

[TomK]

Originally posted by BigMass
Jim Rickards is legit.

Your Rickards link was even better than mine. So much goodness packed into an hour and a half.

Thanks.

[BigMass]

Originally posted by TomK


Your Rickards link was even better than mine. So much goodness packed into an hour and a half.

Thanks.

Rickards is a no-nonsense type of analyst that lays it out clear, concise and to the point. Wish they would have him on the cable networks more often to interject some actual intelligence into the current situation. One of the few people I find worthwhile to go through youtube and watch his prior appearances.

[TomK]

http://www.calgaryherald.com/business/Gold+rush+hits+Calgary+precious+metals+dealers/5237790/story.html

Herald published a hit piece on gold today.

Its really interesting because it starts with a short story about an innocent kid losing money buying Silver in 1980. From there it states without evaluation that it was an obvious bubble no different from Nortel stock.

From there it announces there are lineups at Albern Coin.

Its possible that this article is just very poorly written and in fact there *are* huge lineups of people panicking to buy gold.

But almost every example in the article (and every photo) is about people *selling* their gold to dealers. This is supposed to prove people are hysterical about gold.

Anyone have any evidence of their own on this? Anyone stood in line behind frantic buyers lately?

[broken_legs]

Originally posted by TomK
http://www.calgaryherald.com/business/Gold+rush+hits+Calgary+precious+metals+dealers/5237790/story.html

Herald published a hit piece on gold today.

Its really interesting because it starts with a short story about an innocent kid losing money buying Silver in 1980. From there it states without evaluation that it was an obvious bubble no different from Nortel stock.

From there it announces there are lineups at Albern Coin.

Its possible that this article is just very poorly written and in fact there *are* huge lineups of people panicking to buy gold.

But almost every example in the article (and every photo) is about people *selling* their gold to dealers. This is supposed to prove people are hysterical about gold.

Anyone have any evidence of their own on this? Anyone stood in line behind frantic buyers lately?

Sounds like a good opportunity to buy gold off people in line for spot or less.


Edit:

On reading the article it talks about lines inside the store. I was pictureing lines going down the street.

I have never been there once in the last 2 years and *not* had to wait in line.

Poor Article.



If fiat currency collapses as catastrophically as its detractors claim, they’d be better to invest in guns and tinned food than a sack under the bed filled with shiny metal, Williams says. Gold won’t do much good. You can’t eat gold.



^^ So the choices are, end of the world, or bubble.


I guess having a new monetary system where your gold has retained its value isn't an option?

First rate thinking there.

[jdmXSI]

So what's everyones thought on silver? Is it gonna play catch up with gold?

[ZenOps]

There are no lineups at shops in California. Nothing left to sell.

[BigMass]

Originally posted by TomK
http://www.calgaryherald.com/business/Gold+rush+hits+Calgary+precious+metals+dealers/5237790/story.html



That has to be one of the worst articles on gold I’ve ever read. Yeah Cash for Gold is a sure sign that there is a bubble…. For people wanting to SELL their gold. You know, usually a bubble involves people BUYING the product :rolleyes: Also, central banks are buying up gold buy the tons, some person at Albern buying an ounce of gold has little effect compared to the huge demand from sovereign nations. Also some people seem to forget the limited supply of Gold. Plus, Albern always has lines because it takes time to process some people’s sell orders. It’s been like this forever. Also their phones are always ringing off the hook because their website sucks and they don’t list prices so people have to call for inane questions like “how much?” Also, comparing Gold to Nortel stock? Jesus, what kind of moron writes this crap? Gold doesn’t go up in value as much as the dollars it’s priced in loses value. The reason Gold crashed in the 80s is because the US Fed jacked rates to %20 making owning gold completely pointless and causing a rush into dollars. Sure, if you think they’ll jack rates to %20 again by all means sell your gold. People should be fired for writing idiotic crap like this in what should be a serious newspaper :banghead:

[TomK]

Originally posted by BigMass


That has to be one of the worst articles on gold I’ve ever read.

Don't hold back. Tell us how you really feel :guns:

I too find it pretty tiring to read every stale argument and personal attack on gold buyers over and over. You'd think 11 years of destroying stock market performance would earn a little respect.

Anyway, the CME just raised margins on Gold so maybe a short term correction to validate the bubble fears is in the offing?

[BigMass]

http://www.calgaryherald.com/business/Gold+rush+hits+Calgary+precious+metals+dealers/5237790/story.html



But gold price skeptic Mark Williams, a master lecturer with Boston University’s department of finance and economics, calls this crowd of investors the “gold, guns and baked bean survivalists.”

Sure, there’s money to be made in a bubble, if you know when to buy and sell. But gold is not a currency.
Of course it isn't. It's MONEY which you use to BACK a currency. Thanks for coming out though


Rather, the price spike “is basically giving central banks an F report card on their ability to manage capital markets and keep risk under control.”
No, it gives an F report card based on currency default risk through non-payment from those without a printing press, and through monetization for those that do


The goldbug argument is irrational, he says. Gold and silver certainly have properties that make them desirable — they’re pretty, scarce, malleable and have a long history as a store of wealth. But the same collective delusion that governs the value of a paper bill also determines the worth of a seashell, a house, a hunk of copper or a bar of gold.
no, Gold has value based on the cost of mining. If the market price of gold is under the cost of production nobody will produce gold anymore therefore driving the price back up. The cost of producing a dollar is NOTHING because it’s a simple computer entry. It has nothing to do with delusion, it’s the devaluation of fiat currency.



In other words, whether an ounce of metal is worth $1 or $10,000 is solely determined by how much a buyer is willing to pay.
Amazing insight Poindexter



“It’s only liquid as long as you and I are willing to say it’s worth $1,700,” he says. “If everyone is selling or running to the door, gold is not going to have an orderly price reduction. It’s going to drop dramatically.”
Running to the door to do what? exchange the gold for Zimbabwe paper?


Investors do use precious metals as a hedge against inflation, or as a place to park cash in volatile times. However, the second the economy turns around, Munro says, gold and silver become less valuable.
The dollar has lost over %90 of it's value from inception through good times and in bad. It has nothing to do with how good the economy is.



Unlike stocks and bonds, gold pays neither interest nor dividends. It is costly to mine and expensive to store.

If fiat currency collapses as catastrophically as its detractors claim, they’d be better to invest in guns and tinned food than a sack under the bed filled with shiny metal, Williams says. Gold won’t do much good. You can’t eat gold.
An economics professor just used the “you can’t eat gold” argument and told people to stock up on guns and ammo because a fiat currency has never failed historically and will lead to Armageddon? WOW WOWOWOWO



This is a bubble, Williams says. And it’s close to popping.

“Here’s a commodity, gold, it costs about $500 per ounce to pull out of the ground and, in an instant, you can turn around and receive X times more than the cost of production. It sounds illogical
Same with Oil, Corn, Sugar, Coffee and any other commodity or product. If you can't sell it for more than what it costs to produce THEN WHY PRODUCE IT ?????





Mark Williams, a master lecturer with Boston University’s department of finance and economics
OH MY GOD HELP US if this idiot is in our education system