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It's easier to click the link in my sig.

 

 

 

However, if you want to argue the case for a gold standard, register and post away. Should be a good scrap if some of the heavyweight here get involved.

Here's your chance, Bill has just logged in. Click my sig.

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Well seen as this is now the baby thread....

 

Had my 2nd (boy) yesterday.

 

Congrats on the new baby! :D

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I'll be saying those words in a different context in 2 weeks... first child due. Hoping it will be a double celebration :lol:

 

good luck DoctorSolar. :)

 

I have 2 (boy & a girl) & they are what life is all about. Girls are definetly more expensive to run though. :D

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Congrats on the new baby! :D

cheers!

Bought a britannia for the 1st one with her piggy bank collection whip round. The boy will be lucky to get 1/2 oz!

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Well seen as this is now the baby thread....

 

Had my 2nd (boy) yesterday.

 

I'll echo the comment above - with a partner and kids who depend on you it has made me think a lot more about financial decisions and wealth preservation. Got gold?

 

congratulations. :)

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Hey, that "good" money is worth more bad money than it was yesterday!

 

Bill don't like gold too much, find out why.

Bill posted the other day that he is not against gold as an investment.

 

However, considering the 19th century "cross of gold" experience, he is against the so-called "gold standard". It seems that the problem back then in the USA was that few people owned gold but many owned silver (coins and plenty of silver mines in the west to boost supply). So a gold standard basically put most of the money power in the hands of a small clique especially bankers who would use it to back fractional reserve banking.

 

This is why I dislike the phrase "gold standard" as on the face of it it implies 100% gold-backed money which was not the case.

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Well seen as this is now the baby thread....

 

Had my 2nd (boy) yesterday.

 

I'll echo the comment above - with a partner and kids who depend on you it has made me think a lot more about financial decisions and wealth preservation. Got gold?

 

Congrats m8!

 

Keep it real!

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Bill posted the other day that he is not against gold as an investment.

 

However, considering the 19th century "cross of gold" experience, he is against the so-called "gold standard". It seems that the problem back then in the USA was that few people owned gold but many owned silver (coins and plenty of silver mines in the west to boost supply). So a gold standard basically put most of the money power in the hands of a small clique especially bankers who would use it to back fractional reserve banking.

 

This is why I dislike the phrase "gold standard" as on the face of it it implies 100% gold-backed money which was not the case.

 

I think we need to follow the yellow brick road, wearing our silver shoes.

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COT are caught with their pants down on the wrong side of the market and if they do not manage to rein it back quick, they'll be forced to cover which will send it parabolic.

 

cg, I think you're right. If China wants to relocate gold from London to Hong Kong, there will be a little problem in London IMO. Or does anyone think the banksters really just stored that gold there? :lol: IMO, this gold has possibly been shorted, physically sold etc. I.e. someone will possibly have to buy shed loads in the over the counter market. That's going to be expensive.

 

+1

 

I was talking to someone at work today about the current rocket shot in the POG and exactly the same thought occurred to me. I told him at the time that my thinking was a bit tinfoil, but if it was the case that much of the the gold likely to be recalled to HK isn't held by the current "custodians", then there are going to be an awful lot of big buyers in the marketplace right now paying whatever it takes in a desperate attempt to avoid getting busted.

 

Edit @ bjm81. Congrats on your new arrival :)

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I'm glad your back. Have always enjoyed and respected your posts.

 

I thought you said "enjoyed and rejected" your posts :lol:

 

It's my birthday for 11 more hours. Already I've seen gold go up to $996 and the return of Pluto and Cgnao, could it get any better?

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Yes, go and get pissed. Happy birthday!

 

I thought you said "enjoyed and rejected" your posts :lol:

 

It's my birthday for 11 more hours. Already I've seen gold go up to $996 and the return of Pluto and Cgnao, could it get any better?

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There is nothing magic about the 1000 line. Gold could easily breeze through it and fall below it again. Good to see the fanciful figures of 10000... 50000 are being dropped and the more reasonable ones of 1400... 2000 being envisaged.

 

imo these prices will be reached within a couple of years as capital flows from weakened currencies into gold. The price will remain meaningful because the weakened currencies will remain valuable to newly impoverished consumers. This is the inexorable logic of deflation. :)

 

History suggests they are not fanciful. Just difficult to comprehend before they happen.

 

GoldAccounting090819.jpg

 

From:

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I thought you said "enjoyed and rejected" your posts :lol:

 

It's my birthday for 11 more hours. Already I've seen gold go up to $996 and the return of Pluto and Cgnao, could it get any better?

 

Happy Birthday.

Switch to UK time at 12pm, and enjoy for a little longer :D

 

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Congratulations to all those who have had or are expecting new arrivals.

 

May I suggest one of these, I bought all my boys one in the respective year they were born as their birth day present.

 

They'll get it when thy're 21....... probably be millionaires. :P

post-1656-1252028793_thumb.jpg

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Great video Jesse!

 

So do you recommend MarketClub? Looks very impressive from the few minutes i have explored their website. Might try the 30 day free trial...

 

 

 

Hello FWIW

 

Adam Hewison (CEO ) is a former floor trader (Chicago mercantile exchange). Do you need more ?

I think that he does know what he is doing. MarketClub is the perfect place for education and research. (great price)

I like INO TV / http://tv.ino.com/premium/ There are a lot of information ...You can learn a lot from a INO TV.

 

here is for sample (workshop doc) showing Adam Hewison Trading ....

 

PDF File:

 

http://www.mediafire.com/?hhfntynngzz

 

Enjoy! :)

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AA Very Uncommon Forecast ...

by Larry Edelson

 

Dear Subscriber,

 

 

In my July 2008 Real Wealth Report, just 13 months ago, I warned my subscribers that the Dow Jones Industrials (DJI) — in real terms — had already lost 72 percent of its value when measured from its real, inflation-adjusted high of 14,198 in October 2007.

 

I also warned that ... "The U.S. dollar is on the edge of the abyss."

 

And that ...

 

"The only way to truly understand the U.S. economy — what's happening, why, and where it's headed — is to look at asset prices in terms of gold, the world's only real form of money."

 

It is absolutely CRITICAL that you understand that last point, because I believe that concept is the most crucial information you need to know to financially survive and prosper — now and in the years ahead.

 

It's also something maybe only 1 out of every 100 economists even considers.

 

 

As the U.S. dollar continues to crash and burn, the price of gold – the only true money – will increase in value.

But the simple fact of the matter is this: Ever since U.S. politicians severed the link between the dollar and gold, the only truly accurate way to analyze any asset price is to consider its historical cost in terms of gold.

 

That's because, before President Nixon dissolved the gold standard in 1971, anything and everything you did in your business, in investing, even in your personal finances — could be converted into or exchanged for physical gold by simply requesting the gold from your bank or the U.S. Treasury.

 

That's no longer the case. And that's also why since 1971, asset values have exhibited much more volatility and wild price swings than they did before the United States went completely off the gold standard.

 

Don't get me wrong. The gold standard had to go for a variety of reasons.

 

But understanding the impact that abandoning the gold standard has made on the world — ushering in an entirely new era of finance and economics — is so poorly understood, it simply amazes me.

 

Consider the following: The "real" value of the Dow Jones Industrials in terms of GOLD — TRUE MONEY, or what I like to call REAL WEALTH.

 

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You Could Be Missing Out!

 

If you're worried that our massive deficits, record-shattering Treasury auctions and off-the-charts money-printing are going to gut the dollar — and by extension, the value of every stock on Wall Street ... And if you still need to keep your money growing no matter what happens next in the U.S. ...

 

It's high time you took a good, long look overseas — at what's happening right now in China!

 

Click here harness the economic power of these new economic superstars!

 

 

 

Suppose you had $10,000 of paper dollars (or digital dollars in your brokerage account) to invest in the DJI at the beginning of 2001 ...

 

At the end of 2001, while your original $10,000 investment in the Dow was worth $10,021 — a gain of 0.21 percent — that paper money would have only bought you 38.5 ounces of gold.

 

At the end of 2002, your original $10k investment in the Dow would have been worth only $8,341.64 – a loss of $1,679.36, or 16.78 percent — and it would have only bought you 21.8 ounces of gold, 43.4 percent LESS gold.

 

Compared to 2002, in 2003 and 2004, the Dow actually slightly outperformed real money (gold), and would have bought you 25.9 and 24.9 ounces, respectively.

 

But then, look what happened to the real value of the Dow from 2004 on ...

 

At year-end 2005, you would have been able to buy only 19.5 ounces of gold with your money invested in the Dow ...

 

At year-end 2006, only 15.8 ounces ...

 

At the end of 2007, only 13 ounces of gold ...

 

At the end of 2008, only 10.4 ounces ...

 

At the March 2009 low of 6,440 in the Dow, your investment would buy you only 7.08 ounces of gold, an amazing loss of 81.61 percent of the Dow's purchasing power!

 

And if you think that's bad, then consider this: At that March low, the Dow had lost a FULL 87 percent of its value since its all-time peak purchasing power of 54 ounces of gold.

 

You can check out the "real value" of the Dow in this bar chart that I have for you:

 

 

 

Pretty amazing, eh?

 

A few questions I'm already anticipating ...

 

Question #1: Where does the Dow stand in terms of gold today, Larry?

 

A. As this column goes to press, the Dow Industrials-to-gold ratio stands at just over 10, meaning the Dow right now would buy about 10 ounces of gold.

 

That's up from 7.08 ounces at the March low in the Dow, a gain of 41.24 percent, a pretty big gain.

 

Question #2: In your opinion then, has the Dow in terms of "real money" bottomed?

 

A. Before I answer that question, I want to digress a bit and take a look at the individual components: The Dow, in nominal values, has gained 48.7 percent since the March low, while gold has gained about 7 percent.

 

Why is this breakdown analysis important? Because it shows you that since March, the Dow has outperformed gold. Dramatically.

 

I expected that. Indeed, it's one of the many reasons I turned bullish on the Dow in the middle of March, nailing the Dow's bottom virtually to the tee.

 

My reasoning at the time: The median low point for the Dow/gold ratio since the world went off the gold standard in 1971 is a ratio of 5 to 1.

 

So I calculated that at 7 to 1, the Dow would have lost nearly 90 percent of its real value from its high on the ratio of 54 to 1, fulfilling the 1932 Depression style collapse, which was also a loss of 90 percent for the Dow.

 

The big difference between then and now: Back then, the world was on a gold standard. So the decline had to occur in nominal values which were the same as real values — since every dollar was fixed to a specific exchange rate with gold.

 

Today, we no longer have that fixed measuring stick. Today, we live in a world of oscillating values, floating exchange rates, and no fixed values for anything. We live in a world of relative values.

 

So any comparisons to the stock market of the 1930's Depression has to be made not in terms of nominal values but in terms of real values, and namely, in terms of gold — the one asset that has always held its purchasing power, throughout the ages.

 

In fact, my long-standing theory has always been — coming full circle — that unless you understand that the assets can no longer be measured accurately in terms of nominal values, and that in a world of floating exchange rates, gold is the only true way to value assets — you are virtually doomed to being on the wrong side of major trends, time and time again.

 

So has the Dow bottomed in terms of gold, in terms of real values?

 

My answer, and uncommon forecast: Yes, it has. We have likely already seen the major low in the Dow in terms of its purchasing power, it having lost almost 90 percent of its value back at the March lows.

 

Does that preclude any further moves down in stocks? No, it does not.

 

But from a long-term investor's point of view, I would no longer be shorting the Dow. Instead, I would be buying both select stocks — especially other tangible asset stocks like shares in natural resource companies — and gold, for the long term.

 

Best wishes,

 

Larry

 

P.S. Assessing real estate values in terms of gold is another very interesting analysis. At the peak of the housing market in March 2007, the median U.S. home price was $262,600, equivalent to 346.4 ounces of gold.

 

Today's median home price is $178,400, or 188.4 ounces of gold. So in terms of nominal values, the U.S. median home price has shed 32.0 percent. But in terms of real money, gold, it's lost a whopping 45.7 percent.

 

Even more interesting, since 1971, the average of the annual median home price in the U.S. is $73,333 (the annual median home price from 1971 to 2008, totaled, then averaged).

 

For the same period, the average annual price of gold is $349.

 

So for that entire period of 37 years (1971 to 2008) the average of the median home price compared to the average price of gold means that the median home price would have bought you 210.12 ounces of gold.

 

That ratio today is now 188.4, fully 10.3 percent below the average of the ratio for the last 37 years.

 

This is one of the reasons I forecasted a bottom in real estate prices in my June 29 column, a month ahead of just about everyone else

 

n interesting read...on gold and the dow, bottomed at 7.8oz? Dow lost 90%?

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I also warned that ... "The U.S. dollar is on the edge of the abyss."

 

And that ...

 

"The only way to truly understand the U.S. economy — what's happening, why, and where it's headed — is to look at asset prices in terms of gold, the world's only real form of money."

 

It is absolutely CRITICAL that you understand that last point, because I believe that concept is the most crucial information you need to know to financially survive and prosper — now and in the years ahead.

 

It's also something maybe only 1 out of every 100 economists even considers.

 

 

As the U.S. dollar continues to crash and burn, the price of gold – the only true money – will increase in value.

There is a very real danger in this kind of thinking. It shares a similarity to Puru Saxena's call to buy gold if it continues in a bull market, but to sell it for all you are worth if the dollar rallies and gold goes below 920.

 

They both buy into a simple binary logic that the dollar must crash and burn for gold to perform. Investors following these luminaries will panic out of gold if they see gold decline and the dollar spike up. imo this would be a spectacularly wrong move as a newly strengthened dollar will most likely weaken again at some point [though not crash and burn] while gold goes on to reach new highs.

 

Not 1 in a 100 pundits are calling for both gold and the dollar to strengthen. imo the market is in the "twilight zone" at the moment where all rational analysis will most probably be confounded. The dollar is quite likely to strengthen at some point soon due to deflationary dynamics and not fundamentals. Gold could weaken, but in the longer term gold will become the prime currency where the dollar and Sterling will become secondary currencies as the fundamentals finally catch up with them. Though weakened, the dollar will remain valuable because we are moving into an era of money scarcity. Currencies will be valued by the general population but eventually weakened by investors on the fx market as capital, that most nebulous property, moves increasingly violently in search of a safer haven.

 

In this scenario, assets will continue to decline in both nominal prices and real value; they will decline against the dollar, but then doubly so against gold.

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Where did you find that vid, FWIW? More where that came from? Can't seem to find it on the Graceland site.

 

I got that in an email update - you need to signup for daily free alerts.

 

Probably a bit naughty of me to put the direct link here though; but hopefully you guys will signup?

 

I'm looking forward to part 4 where the "pyramid" basics should be explained. I think this strategy is very good for trading electronic gold/silver; however it is no substitute for the real deal.

 

 

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I got that in an email update - you need to signup for daily free alerts.

 

Probably a bit naughty of me to put the direct link here though; but hopefully you guys will signup?

 

I'm looking forward to part 4 where the "pyramid" basics should be explained. I think this strategy is very good for trading electronic gold/silver; however it is no substitute for the real deal.

 

I did, a while back, but only got a few reports - he must just give a free taster of just a few... Find it very hard to pay attention to his usual vids - but may sign up for his 6 month sub to give it a go as he does seem to talk sense re. stock trading.

 

EDIT: Check the links at the bottom of his articles if you do want to ask for some free reports: http://www.321gold.com/archives/archives_authors.php

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nice video here:

 

http://www.gracelandupdates.com/video/ucrisis3/ucrisis3.html

 

INO energy ball also mentioned Jesse!

 

We all live in interesting times! Got gold?

 

Fascinating video. Entertaining as well. "Knock knock" :D

 

A few points from me:

 

1. He lost me past the "buy gold". What's this "selling gold" idea? I don't get that :lol:

 

2. More seriously, just imagine what would happen if all gold traders followed his advice to sell on rises and buy on falls :lol:

 

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http://www.marketwatch.com/story/hong-kong...ndon-2009-09-03

Marketing efforts will be launched to convince Asian central banks to transfer their gold reserves to the Hong Kong facility, according to reports citing Raymond Lai, finance director with the Hong Kong Airport Authority.

This will only mean one thing: the grip of the Anglo-Saxon Empire on the world's gold reserves will weaken. One way out would be outright default on some of the gold obligations towards Asia. The US has shown how it works in 1971. Just feed them paper. :)

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Agreed, I couldn't trade this with any confidence. Triangle breakouts can do a 'pump and dump' false upmove before plunging. I believe this very thing happened to gold last Aug/Sep.

A 'be careful' to the traders here (glad I'm not one of them).

 

I couldn't agree more - I really do think this is a 'fake' to the upside!

 

Just as you reach back to throw a ball forward, the market could be reaching up 50 USD (now complete) to throw the golden ball down hard.

 

I've made a nice quick 5% on my purchase of 2 weeks ago, and whilst I never generally 'trade' the gold market, I am thinking of selling hereabouts. It all depends on how the next few trading days pan out.

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I couldn't agree more - I really do think this is a 'fake' to the upside!

 

Just as you reach back to throw a ball forward, the market could be reaching up 50 USD (now complete) to throw the golden ball down hard.

 

I've made a nice quick 5% on my purchase of 2 weeks ago, and whilst I never generally 'trade' the gold market, I am thinking of selling hereabouts. It all depends on how the next few trading days pan out.

Don't tell me you are thinking of selling for pounds. :rolleyes:

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