Jake

Pre -frenzy feeling in (parts of) the UK right now.

Well, despite being made to sound a fool-especially in a time where house prices are rising and gold has been falling-I'll have a crack at the definition of 'there' for GF according to his Gold to UK house prices chart. He is rather good at charts. So... he sees on the charts a number between 55 and 80 ounces of gold will buy you the average UK house. The average UK house is now 163k. Let's say 165k. 165k divided by 85 is 1,941. And 165 divided by 55 is 3000. So 'there' could be anywhere between GBP1900 and GBP3000/oz = USD2,971and USD4,692. Gold at present is GBP 875/oz or USD1,360. Seems crazy unless you remember Gold started at USD252/oz or GBP157 about 13 years ago..(around 1.60 to GBP)...thus Multiple of 5.5. Gold only needs to double here to make GF's chart start to look realisticaly mouthwatering. eg gold at GBP1750x80 ounces=140,000. With all the damage and debt, printing and trouble we are seeing-yet papering over-it is not beyond the realm of reason to imagine that gold will go far higher than these numbers. And/Or it may not. House prices and stocks may well simply fall-although you'd be seen a fool to suggest so right now...all the more reason to think it, IMHO.

Did it start yet?

You forget the Heatwave and the elusive World Cup to add to that list and then the good (bad) times roll?? Any more good news for the UK to wallow in? A fracking oil boom perhaps? Oil in the Malvinas? More rich EU immigrants? Passing of Prince Philip? The Queen as the longest reigning Monarch celebrations? Another kiddie for the Royal couple? Disintegration of the EU? Re-election of Cameron as PM? Or Boris?! Maybe Britain is special. Maybe not. btw When does 'this economic cycle' end?

Great read with my morning coffee! Thanks for posting.

Van, History as 'chump'... ''By the final quarter of 1979, silver prices had risen to levels between $15.00 and $25.00 per ounce. At these levels several physical market forces combined to act against higher prices. Additionally, the two major U.S. futures exchanges that traded silver at the time took steps to force those with margined long positions to liquidate their positions. During the Hunt brothers’ accumulation of the silver, prices of silver bullion rose from $11 an ounce in September 1979 to $49.45 an ounce in January 1980 based on London PM Fix. Silver prices ultimately fell to below $11 an ounce two months later.'' The question is, Are you prepared if it happens again? What conditions, if any, could send silver on a spike like that again?

So that would be 19oz for an av UK home (assuming nominal prices stay same) and a GS ratio of 16:1. Are you ?

I make it around 190 oz. I think it got to 147 oz at one point.

He paid USD 802 per coin for 54 coins!!. Currently USD 667 per coin! Better to average in, surely??

Very funny, especially the reference to Gartman and Nadler...

Is it time to bring Robert Prechter back on to update is 2010 interview? (Nick laird must be on sabbatical...)

"the history of Japan since 1989 has been that they avoid real reform, preferring the easier option of more government spending."- Maudlin Surely it's the same for the other Western governments, too (since Lehman).

Thank for posting!

If it is a question of "them" "whacking" gold, then how far can gold be whacked? I notice Prechter's recent gloating about his recent charts, without telling about his failures since 2001. Are we going to see his 200 call?? And silver in single digits any time soon??

Perhaps noone wants to invest in an "artificial" bull market-or sees the risk as too large for an illiquid asset whose props could easily fall away? I see rising house prices as a desperate system failure, not success.

Not looking for 'benefits' are you Dr Bubb? What's in a name? that which we call a rose By any other name would smell as sweet...

Still Deflation for the Japanese. (for now) http://www.japantime...w/#.UXvhGMrk3is Consumer prices fell 0.5 percent in March compared with the previous year, logging five consecutive months of decline and underscoring deflation’s persistent grip, the internal affairs ministry said Friday.

Hilarious! It's interesting to see Jeremy Paxman unusually as clueless as your averge Tom, Dick or Harry on what gold is. He and his team obviously haven't done any research about gold whatsoever. Max Keiser tries to do a good job but his approach is not a good advert for the uneducated. As for that other public school prat, he probably has a nice big London mortgage and is going to go down with it when it goes. Still I bet Daddy has a few bricks stuffed away in Geneva..lol. Thanks for posting.

So present policies may well mean house prices go up. Governments offering sub prime government backed guarantees to implode on the watch of the next government may seem like a good idea or an act of folly. Ditto freshly printed reams of QE to boost the stock market and pull everyone into the quagmire, might seem like a genius ruse. For now. Those who have 'put thousands of posts on the internet about how prices were going to collapse' may well yet be proved right. Jut not immediately. That is no fault of their own analysis. Rather on account of those desperate to not let it happen and save the bad news for something far worse later. John Rubino, ''...we should now be deep in a 1930’s style, capital “D” depression... That we're not in a depression today is due to the fact that the world’s governments are, for the first time in history, armed with unlimited fiat currency printing presses and are using them to dump huge amounts of liquidity into the banking system. This is buying time, at the cost of ever-increasing debt.''

Shopping basket time?

So now the battle for inflation begins in earnest. Whither Japan? Gold up 201 yen/ gram.

Also includes silver, platinum and palladium. At least those clients don't have to worry about confiscation anymore! If they kept their cash in the bank they could have a haircut though. Mmmm "Cash for Gold". I see the bank is offering the "current market rate"... and this is the biggest bank in the Ned.

BTW did you see this about HK? http://www.financialsense.com/contributors/puru-saxena/china-hong-kong-real-estate-bubble-end-badly

Support the house prices AT ALL COSTS. When it goes down the whole UK edifice will implode.

Support the house prices AT ALL COSTS. When it goes down the whole UK edifice will implode.