Monday, August 22, 2011

Forum 1900









For Aaron:

29 comments:

David said...

$1900!

Aaron said...

Aww, c'mon FOFOA. You gotta include Kaile

Aaron said...

Wrong one.

Right one!

32layers said...

So, I have an idea of what to watch as a sure indicator of the imminent waterfall...

When Goldline isn't advertising every 15 minutes on talk radio, it's time.

78Rubies said...

Run, Forrest, run! ;)

Midnight Gardener said...

It is the quickening I tell ya...sure wish I could roll the clock back to complaining about buying for 400+ when the spot was 380. I expect to someday rue the day when I only had to pay 2055 for an oz.

Nick said...

Where's Tyrone???

MH said...

It's going to be fun when you can no longer do forum's for every $100. With the current rate of acceleration we should be at 2000 by late Wednesday early Thursday. Things are going to get very interesting towards the end of the week.

32layers said...

Nicholas Larkin at Bloomberg says gold's a bubble that's gonna pop...


http://www.businessweek.com/news/2011-08-22/gold-goes-off-charts-as-gartman-sees-parabolic-prices.html

Indenture said...

All US Mint Numismatic Gold Coins Suspended

Redhill said...

Thanks FOFOA & Aaron...

For introducing Kaile Goh! What powerful vocals at sweet 15!

Her surname looked familiar, checked and yup... she hails from my small island country:

"Born in Singapore, Kaile spent her first five years there before moving to Los Angeles." -- www.kailegoh.com

Like the acoustic version here:

http://youtu.be/uLp2min2-UQ?hd=1

Wish her all the best and let's go 2,000 and beyond...!

Cheers!

Michael said...

Rickards says Euro will survive:
http://www.youtube.com/watch?v=LvEBSjPjbd0&feature=related

Unknown said...

Relatively new reader, first time commenter. I have what I feel is a simple question but can't find an answer for it.

So the dollar continues to slide, people run to gold in greater numbers, driving up the price. Paper gold eventually collapses once big buyers realize it's bankrupt, driving the price of physical gold down. At this point, why is it so inevitable that the world will revalue physical gold as a monetary store of value? Why wouldn't people just run to the next best fiat currency because that is what they are accustomed to? Surely they will be told that things were working just fine and would have stayed that way if the US government hadn't screwed it up. Saving in Euros would seem reasonable compared to apparently volatile gold.

Apologies if this is a bad place to ask a newbie question - please refer me to an appropriate forum if so.

Robert LeRoy Parker said...

From Jim Willie:

The very popular German tabloid Bild Zeitung is actively urging German people to invest in gold, as the global debt crisis continues to deteriorate and cause turmoil in global markets. The publication is Germany’s #1 selling newspaper, and the best-selling newspaper outside Japan. It has the sixth largest circulation worldwide. Bild wrote, “While the companies listed on stock exchanges have lost about $8 trillion dollars in value over the past 14 days, the price of gold climbed to a record high. While money can be printed, gold reserves are limited. To date some 150,000 tonnes of gold have been mined. Gold is better than cash. While any amount of money can be printed, Gold is limited, [thus making it] one of the safest investments in crisis times.” The mainstream European press does not usually mention gold, but the deepening crisis has prompted the coverage. The nation is acutely aware of hyper-inflation risks, unlike the United States.

And SGS inflation adjusted gold.

Wendy said...

Unknown, you're a quick study.... when/if the price of gold collapses, it will be because the understanding that the number of gold certificates issued is way way way more than the actual gold metal available.

Real gold metal will not be offered for sale at that time, and there will be some "time" before the markets figure out what the price of the real metal is worth.

Why won't investors turn to another paper currency? Because if/when the time comes that the paper gold market collapses it will come because all paper currancies will be shunned.

Wendy said...

Mortymer, inspite of my best efforts, I cannot post to your blog. I even made a wordpress account, but your blog responds "you do not own this identity"

FUCKING computers ;)

anyways I have to agree with consensus that age, and I might add, country of origin eliminates you top candidate.

Casper said...

@ Unknown,


since you're a new reader I think you'll have to spend some considerable amount of time catching up on things and reading previous post by FOFOA.

If you do that, you'll find out that physical gold is already valued at much higher nominal prices within the net of global central banks and what we see on Comex is just a reference price having little to do with physical gold and much more with paper gold.

So, the thing that is going to collapse is the price of paper gold, while the true value of physical only will come in proper light.

It is the "Giants" of this world that have chosen gold as a store of value, we're mere observers witnessing the battle between them.

Do the reading if you have time, you won't regret it.

Casper

Robert said...

Question: Paper gold eventually collapses once big buyers realize it's bankrupt, driving the price of physical gold down.

Comment: I do not see how the collapse of the paper gold market would cause the price of the physical gold market to decline. Why do you think this would happen? More likely, physical gold would stop trading altogether. The paper markets might have a spot price, but no gold would actually be trading hands at this price.

Question: Why wouldn't people just run to the next best fiat currency because that is what they are accustomed to?

Comment: For commerce that is likely what will happen, at least that is what I understand FOFOA to be saying. Fiat currencies will not disappear, but they will have a more limited role. In terms of running to the next best fiat currency for savings, stop for a moment and think what it will mean when the current reserve currency ceases to be a reserve currency and all the petrodollars find a way home. That will be an avalanche that will totally disrupt all other fiat currencies -- on a global scale that the world has never seen before. After that happens, do you think the Giants will rush to put all of their savings into another debt-backed fiat currency?

Wendy said...

Oh, and I forgot to mention unknown "why not the Euro"? because it's viewed as the piggest pig in the sty at the moment. It'll crash with the rest, and then likely rise up from the ashes of burnt paper .... in my not so learned opinion.

Keep reading and asking....

Aaron said...

Hello Unknown-

From my comment in FOFOA's post, "Does Fiat Produce an Endless Sea of Wars?"

Mish, you are missing something really important.

You say, 'However, by now it should be clear to everyone that the current fiat system is good only for bankers, brokers, politicians, war mongers, and the already wealthy.'

Fiat is good for anyone that has bills to pay. The truth is, fiat is not good for preserving wealth across the time continuum. It's that simple. Seriously. It really is that simple."

Will people run to the Euro? Yes.

Will people run to the Yuan? Yes.

Will people run to the Yen? Yes.

Will any of these paper currencies preserve wealth across the time continuum for future generations?

No.

--Aaron

Motley Fool said...

comments..

Flore said...

it's much clearer to people when you say CONTRACT gold instead of paper gold...

mortymer said...

I am just wandering, is this some music cheerleader´s blog?

OK, it feels certainly good to be first running from the bear chasing you but is that the reason why to be so over-optimistic? You twist your ankle and that´s it for you.

If you have not gone through any monetary/economic transition in your life yet you have no idea what it even remotely will resemble.

Btw: @wendy, 1/ Changed settings, so you can try, you should have my email so we can figure out the best parameters. 2/Thought hit on TPS seem not to be a bull-eye, it was very close as it seems. :o) ...and gives very good results.

mortymer said...

@Wendy:
One for you: http://anotherfreegoldblog.blogspot.com/2011/08/american-federal-reserve-system.html

DP said...

!

mortymer said...

Simply:

http://anotherfreegoldblog.blogspot.com/2011/08/introducing-think-tanks-3-ceps.html

Enjoy!

d2thdr said...

I wonder what the Knights of the USA Gold Round table must be thinking now?

DP said...

Premature, sure - but no mistake. :)

DP said...

http://www.youtube.com/watch?v=UJOjTNuuEVw

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