GOLD

[Ret45]

I know this question was aimed at GOldfinger but I'd like to comment too. Like you, I have spent some time researching the situation in the late 1970s and do not believe that the current state of affairs is comparable.

 

You wrote: I am not sure that the numbers of people who make that leap of faith will ever grow beyond a small minority

 

I agree, and that is the pity of it. In the not too distant future, when the burden of debt creates currency crises, and savers see their hard-earned wealth evaporate, the bulk of the gold will be owned by the criminal banks that currently run the fractional reserve ponzi scheme. They are gradually buying gold from weak hands - who are happy to have made a paper profit.

 

Questions I ask myself include:

 

Who is accumulating gold now?

 

What kind of payment will be accepted world-wide for valuable energy, food and resources?

 

Why does Russia take gold in payment for minerals sent south to China?

 

Look around the world from China to India - from the middle East to America and you will see the global perspective. The average Joe does not know anything about what is occurring globally - and that is why he is happy to sell-off his gold jewelery for a pittance.

 

 

Good points. Is there any verifiable data on who is buying gold, and how much. Are the banks not buying to cover the crazy amounts of gold ETFs they are selling?

[Schaublin]

Good points. Is there any verifiable data on who is buying gold, and how much. Are the banks not buying to cover the crazy amounts of gold ETFs they are selling?

 

I do not know that there can be any really - so much obfuscation that I certainly would be skeptical of any published data. As for the other question, my belief is that central banks are buying gold because like you or me, they have an opportunity to swap paper for gold while there are still those willing to do so!

[Steve Netwriter]

Thanks GF. Are you at all concerned about the fact that the last time we were in this price territory (in the late 1970s) there followed a 20 year bear market for gold?

 

I have spent the last year or so researching gold and am happy to have bought some and watch in grow rapidly in value . I understand the fundamental reasons underpinning the rising price of gold. However, I still have a few nagging concerns, the main one being that at the end of the day gold is about faith. Because it has no real practicial value, you have to take that leap of faith that gold is money (I know its legal tender but in the real world people don't buy their bread with grams of AU). I am not sure that the numbers of people who make that leap of faith will ever grow beyond a small minority. We are a long time past the gold standard - wiill the average Joe still turn to gold in times of crisis?

 

I'd just like to say thanks to GF for all his posts. I don't say so for each, but they are appreciated, specially the log ones

 

Ret45,

I think I'm gaining another pet topic. Analysing the use of words, and paradigms re money/currency/gold etc.

 

"I have spent the last year or so researching gold and am happy to have bought some and watch in grow rapidly in value"

 

Interesting, "value" is a subjective term, the value people place on something. Like "I value your friendship". People value gold for its characteristics, especially in relation to fiat paper currencies.

 

"I understand the fundamental reasons underpinning the rising price of gold"

 

Ahh, now this gets interesting. This brings up the two paradigms re gold:

 

1. Gold is a commodity, and has a price measured in a fiat currency - the "new paradigm"

2. Gold is money, and so can't have a "price", because it can only be "priced" by itself. In fact it buys other things, it being money, including fiat currencies.

 

I know it's common these days to talk in terms of price, but that can lead to misleading ways of thinking. I prefer to TRY and avoid the new paradigm.

How about referring to the falling price of the fiat currencies?

 

"However, I still have a few nagging concerns, the main one being that at the end of the day gold is about faith"

 

Concerns are good

"Faith", hmm interesting word. Is there any monetary system that does not rely on sentiment? Gold has a 6000 year history of being chosen as money, the result of an evolutionary process, the more reliable options surviving most, the worst ideas failing fastest. Each involved "faith", and went in and out of fashion, but there must be something more than just faith affecting the 6000 year history of money.

 

What is it about gold and silver that gave them such a long track record of being involved as money? That question surely needs answering.

 

"Because it has no real practical value, you have to take that leap of faith that gold is money (I know its legal tender but in the real world people don't buy their bread with grams of AU)."

 

Hmm, it does appear to have a number of "real practical values":

1. It is used by industry, but is that actually an important aspect?

2. It is used as a store of value, and has been used as money historically for much of the time since its discovery.

 

I think the east/west paradigms come into play here. Indian farmers get currency for their harvest and then go and buy gold as a store of value.

Is there a fundamental reason why gold has to be money, why it must continue to be valued for its good monetary aspects? No. But for that to stop something better would have to replace it. What is there?

 

No, they may not buy bread with gold, but they do buy the local currency with it, and then go buy bread. You can't buy bread in NZ with UK Pounds either. But you can buy NZ$ with a gold coin.

 

"I am not sure that the numbers of people who make that leap of faith will ever grow beyond a small minority"

 

It may not be a matter of a "leap of faith". It may be forced upon them. Consider the situation where you see your wealth in your local fiat currency declining rapidly. The purchasing power going down as prices rise. You look around for rescue, for a solution. You see the exchange rate between gold and your currency rising, year after year, you fear a dramatic currency devaluation, or collapse.

But this is on the Human level. One of the best quotes I've read is:

 

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

 

This is not just about individuals. This is also about countries. What are the central banks doing, selling or buying gold? And who are the big buyers.

 

"We are a long time past the gold standard"

 

Hmm, I guess that depends upon your timescale. Long if your view is limited to 100 years. Very very short if viewed over 6,000 years.

The gold standard was itself just a short-term system. Before that was...gold and silver coins!

 

I think the "new paradigm" has coloured all our thinking. It's difficult to break free and view things as someone from 200 years ago would.

 

I like the writings of FOFOA, who follows on the FOA and Another, and Aristotle. All famous names to those interested in this subject.

I had a very interesting discussion with FOFOA recently. I think it offers an insight into a different way of thinking about this.

 

http://neuralnetwriter.cylo42.com/node/2921

[romans holiday]

Link to last month's thread: http://www.greenenergyinvestors.com/index....st&p=169907

 

I read somewhere the great Ghengis Khan hoarded all the precious gold in the kingdom in his own palace. Script was issued to the population for money which Marco polo observed worked remarkably well. Today we have had China hoarding dollars and issuing script to its citizens against it. How long before they start treating gold the way they have been treating dollars? Perhaps it will be a process, already underway, rather than a sudden tipping point.

[romans holiday]

Thanks GF. Are you at all concerned about the fact that the last time we were in this price territory (in the late 1970s) there followed a 20 year bear market for gold?

 

I have spent the last year or so researching gold and am happy to have bought some and watch in grow rapidly in value . I understand the fundamental reasons underpinning the rising price of gold. However, I still have a few nagging concerns, the main one being that at the end of the day gold is about faith. Because it has no real practicial value, you have to take that leap of faith that gold is money (I know its legal tender but in the real world people don't buy their bread with grams of AU). I am not sure that the numbers of people who make that leap of faith will ever grow beyond a small minority. We are a long time past the gold standard - wiill the average Joe still turn to gold in times of crisis?

 

 

I'd just like to say thanks to GF for all his posts. I don't say so for each, but they are appreciated, specially the log ones

 

Ret45,

I think I'm gaining another pet topic. Analysing the use of words, and paradigms re money/currency/gold etc.

 

"I have spent the last year or so researching gold and am happy to have bought some and watch in grow rapidly in value"

 

Interesting, "value" is a subjective term, the value people place on something. Like "I value your friendship". People value gold for its characteristics, especially in relation to fiat paper currencies.

 

"I understand the fundamental reasons underpinning the rising price of gold"

 

Ahh, now this gets interesting. This brings up the two paradigms re gold:

 

1. Gold is a commodity, and has a price measured in a fiat currency - the "new paradigm"

2. Gold is money, and so can't have a "price", because it can only be "priced" by itself. In fact it buys other things, it being money, including fiat currencies.

 

I know it's common these days to talk in terms of price, but that can lead to misleading ways of thinking. I prefer to TRY and avoid the new paradigm.

How about referring to the falling price of the fiat currencies?

 

"However, I still have a few nagging concerns, the main one being that at the end of the day gold is about faith"

 

Concerns are good

"Faith", hmm interesting word. Is there any monetary system that does not rely on sentiment? Gold has a 6000 year history of being chosen as money, the result of an evolutionary process, the more reliable options surviving most, the worst ideas failing fastest. Each involved "faith", and went in and out of fashion, but there must be something more than just faith affecting the 6000 year history of money.

 

What is it about gold and silver that gave them such a long track record of being involved as money? That question surely needs answering.

 

"Because it has no real practical value, you have to take that leap of faith that gold is money (I know its legal tender but in the real world people don't buy their bread with grams of AU)."

 

Hmm, it does appear to have a number of "real practical values":

1. It is used by industry, but is that actually an important aspect?

2. It is used as a store of value, and has been used as money historically for much of the time since its discovery.

 

I think the east/west paradigms come into play here. Indian farmers get currency for their harvest and then go and buy gold as a store of value.

Is there a fundamental reason why gold has to be money, why it must continue to be valued for its good monetary aspects? No. But for that to stop something better would have to replace it. What is there?

 

No, they may not buy bread with gold, but they do buy the local currency with it, and then go buy bread. You can't buy bread in NZ with UK Pounds either. But you can buy NZ$ with a gold coin.

 

"I am not sure that the numbers of people who make that leap of faith will ever grow beyond a small minority"

 

It may not be a matter of a "leap of faith". It may be forced upon them. Consider the situation where you see your wealth in your local fiat currency declining rapidly. The purchasing power going down as prices rise. You look around for rescue, for a solution. You see the exchange rate between gold and your currency rising, year after year, you fear a dramatic currency devaluation, or collapse.

But this is on the Human level. One of the best quotes I've read is:

 

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

 

This is not just about individuals. This is also about countries. What are the central banks doing, selling or buying gold? And who are the big buyers.

 

"We are a long time past the gold standard"

 

Hmm, I guess that depends upon your timescale. Long if your view is limited to 100 years. Very very short if viewed over 6,000 years.

The gold standard was itself just a short-term system. Before that was...gold and silver coins!

 

I think the "new paradigm" has coloured all our thinking. It's difficult to break free and view things as someone from 200 years ago would.

 

I like the writings of FOFOA, who follows on the FOA and Another, and Aristotle. All famous names to those interested in this subject.

I had a very interesting discussion with FOFOA recently. I think it offers an insight into a different way of thinking about this.

 

http://neuralnetwriter.cylo42.com/node/2921

 

[romans holiday]

Latest fosicking results (don't laugh! - I worked bl**dy hard for this! )

Post of the month. AAA+ for effort.

 

What's your mode of attack? Panning, sluicing, dredging, crushing, snorkeling, detecting or crevicing?

[ologhai]

I think I'm gaining another pet topic. Analysing the use of words, and paradigms re money/currency/gold etc.

 

[...]

 

2. Gold is money, and so can't have a "price", because it can only be "priced" by itself. In fact it buys other things, it being money, including fiat currencies.

 

Or, just for the fun of the analysis:

 

2. Gold is money, so it can only be 'priced' in terms of everything else?

 

Maybe.

[ologhai]

I think I'm gaining another pet topic. Analysing the use of words, and paradigms re money/currency/gold etc.

 

[...]

 

2. Gold is money, and so can't have a "price", because it can only be "priced" by itself. In fact it buys other things, it being money, including fiat currencies.

 

Or, just for the fun of the analysis:

 

2. Gold is money, so it can only be 'priced' in terms of everything else?

 

Maybe.

[Jake]

Hey Steve! I am struggling to understand/follow your threads with Captain and fofoa on your forum. Suffice it to be said with the prospects of houses being anything between 1 and 5 oz's, then I should just keep buying while I can for the bargain 'prices' currently/while available?

 

It's all a bit of a mind bender. I just need telling to continue or not to continue. I think I know the answer but am unable to get on top of the reasons, kids screaming etc...

 

Gold for Dummies would be a great addition to the Aristotle/FOFOA stuff.

 

Best, Jake.

 

PS When is the liklihood of houses being 1-5oz's? Just hoping my parents are still alive...

[romans holiday]

Or, just for the fun of the analysis:

 

2. Gold is money, so it can only be 'priced' in terms of everything else?

 

Maybe.

Or gold is priceless.

 

Seriously, if stuff is valued/ priced in terms of gold... then gold is not itself priced, or is priceless.

 

Habituated to modern currency, a Copernican revolution in thought is required.

 

The most priceless thing is our leisure.... it's criminal how debt has made everyone so productive!

[G0ldfinger]

Hey Steve! I am struggling to understand/follow your threads with Captain and fofoa on your forum.

I also had problems since there was no link. It seems to be a blogger who made a very interesting post recently, that also debunks the whole 'taxation will create enough demand for [inser any fiat currency here]' that seems to be having more lives than a cat.

[G0ldfinger]

Thanks GF. Are you at all concerned about the fact that the last time we were in this price territory (in the late 1970s) there followed a 20 year bear market for gold?

No, I am not. Keep in mind that this is a EUR-gold chart that is based on GERMAN data before 1999. However, the EUR is not a German currency, even if some fools out there still believe so. That same chart in Drachma or Lira would look very different. Also, the USD still matters more than the EUR. If I really want to know how expensive gold is given the financial state the world is in, I rather look at charts like these her:

 

http://gold.approximity.com/since1970/Gold...rium_Price.html

Find an explanation of this here: http://gold.approximity.com/gold_price_models_sinclair.html

 

http://gold.approximity.com/since1959/Gold...rium_Price.html

Find an explanation of this here: http://gold.approximity.com/gold_price_model.html

 

Or, one of my favourites (self-explaining?):

http://gold.approximity.com/gold-silver_watch.html

The chart below (click charts to enlarge) shows one of the potentially most important cycles in macroeconomics. It plots the Blue Chips of the U.S. industry (the Dow Jones Industrial Average, "Dow Jones index") priced in ounces of gold. The chart shows that when one real asset (industry) is priced in another real asset (gold), one does not get ever increasing prices, but instead major price CYCLES. The chart implies that the amplitude of these DJIA:gold cycles (possibly due to the increasing degree of leverage in the system) has ever grown since December 23, 1913, when the Federal Reserve Act (read more) established the second U.S. central bank, the "Federal Reserve" as we know it today. A target of the DJIA:gold ratio below 1:1 seems possible.

 

However, I still have a few nagging concerns, the main one being that at the end of the day gold is about faith. Because it has no real practicial value, you have to take that leap of faith that gold is money (I know its legal tender but in the real world people don't buy their bread with grams of AU).

 

http://www.dailyfinance.com/story/investin...-ever/19499007/

"What makes gold different is that, unlike paper money backed by the good word of the government, it has withstood the test of time for thousands of years," Rosenberg writes. "It is not the liability of any government. It has an inelastic supply curve. How many times is gold mentioned in the Old Testament? Try 391 times. How many times is paper currency mentioned from Noah, to Abraham, to Moses? None. Nada. Efes. Gornisht. Nihil. Rien. Nichts. Niente."

You have to understand that it is alll about the physical properties of gold:

 

WHAT MOST PEOPLE DON'T KNOW ABOUT GOLD by Doug Casey

http://www.financialsense.com/editorials/c.../2005/1123.html

 

EDIT: Disclaimer: I possibly wouldn't by gold with Euros right now. It looks a little topy to me too.

[G0ldfinger]

Thanks GF. Are you at all concerned about the fact that the last time we were in this price territory (in the late 1970s) there followed a 20 year bear market for gold?

No, I am not. Keep in mind that this is a EUR-gold chart that is based on GERMAN data before 1999. However, the EUR is not a German currency, even if some fools out there still believe so. That same chart in Drachma or Lira would look very different. Also, the USD still matters more than the EUR. If I really want to know how expensive gold is given the financial state the world is in, I rather look at charts like these her:

 

http://gold.approximity.com/since1970/Gold...rium_Price.html

Find an explanation of this here: http://gold.approximity.com/gold_price_models_sinclair.html

 

http://gold.approximity.com/since1959/Gold...rium_Price.html

Find an explanation of this here: http://gold.approximity.com/gold_price_model.html

 

Or, one of my favourites (self-explaining?):

http://gold.approximity.com/gold-silver_watch.html

The chart below (click charts to enlarge) shows one of the potentially most important cycles in macroeconomics. It plots the Blue Chips of the U.S. industry (the Dow Jones Industrial Average, "Dow Jones index") priced in ounces of gold. The chart shows that when one real asset (industry) is priced in another real asset (gold), one does not get ever increasing prices, but instead major price CYCLES. The chart implies that the amplitude of these DJIA:gold cycles (possibly due to the increasing degree of leverage in the system) has ever grown since December 23, 1913, when the Federal Reserve Act (read more) established the second U.S. central bank, the "Federal Reserve" as we know it today. A target of the DJIA:gold ratio below 1:1 seems possible.

 

However, I still have a few nagging concerns, the main one being that at the end of the day gold is about faith. Because it has no real practicial value, you have to take that leap of faith that gold is money (I know its legal tender but in the real world people don't buy their bread with grams of AU).

 

http://www.dailyfinance.com/story/investin...-ever/19499007/

"What makes gold different is that, unlike paper money backed by the good word of the government, it has withstood the test of time for thousands of years," Rosenberg writes. "It is not the liability of any government. It has an inelastic supply curve. How many times is gold mentioned in the Old Testament? Try 391 times. How many times is paper currency mentioned from Noah, to Abraham, to Moses? None. Nada. Efes. Gornisht. Nihil. Rien. Nichts. Niente."

You have to understand that it is alll about the physical properties of gold:

 

WHAT MOST PEOPLE DON'T KNOW ABOUT GOLD by Doug Casey

http://www.financialsense.com/editorials/c.../2005/1123.html

 

EDIT: Disclaimer: I possibly wouldn't by gold with Euros right now. It looks a little topy to me too.

[G0ldfinger]

Remember the short-of-gold crooks that told us some time ago that the Indians would stop buying gold.

 

http://www.bloomberg.com/apps/news?pid=206...id=aPvNzoHocLDw

Gold in India Reaches Record on Currency, World Price (Update1)

...

June 2 (Bloomberg) -- Gold futures in India, the largest consumer of the precious metal, advanced for a second day to a record, spurred by a weaker domestic currency and gains in global prices of bullion.

 

August-delivery futures rose as much as 0.7 percent to an all-time high of 18,850 rupees ($400) per 10 grams on the Multi Commodity Exchange of India Ltd. The contract traded at 18,808 rupees at 12:02 p.m. in Mumbai.

...

“Surprisingly, even at these record prices we are not seeing too much of a destruction in jewelry demand,” Rajesh Mehta, chairman of Rajesh Exports, said in a phone interview. Consumers “are getting used to the record high prices, and maybe they are expecting prices to go still higher,” he said.

[electroweak]

Post of the month. AAA+ for effort.

 

What's your mode of attack? Panning, sluicing, dredging, crushing, snorkeling, detecting or crevicing?

Twas done by panning. I have definitely refined my technique now, but still lifting half a ton of stream bed is the hard, hard work; the panning itself is child's play! Sitting in the sun (or rain!) by a nice babbling brook and the dog, lovely!

 

EDIT: post of the month? - steady on, it's only the 3rd!

[romans holiday]

Twas done by panning. I have definitely refined my technique now, but still lifting half a ton of stream bed is the hard, hard work; the panning itself is child's play! Sitting in the sun (or rain!) by a nice babbling brook and the dog, lovely!

i agree, good honest labour, enjoying the fruits of nature. Have you considered getting a small sluice box... you can run a lot more material through it.... and then pan off the "concentrate" at your leisure. There is also an instrument called the "blue bowl" which can do this for you. My plan is to sluice, and maybe do some dredging. All just a hobby of course.

 

Roll on six months!

[Steve Netwriter]

I also had problems since there was no link. It seems to be a blogger who made a very interesting post recently, that also debunks the whole 'taxation will create enough demand for [inser any fiat currency here]' that seems to be having more lives than a cat.

 

Hi GF,

That HUGE blue REFLECTION at the top is the link. That's Capt Goodvibes' style of posting.

I've added a link at the bottom of his post for those who missed the top one.

 

FOFOAs article is here:

http://fofoa.blogspot.com/2010/05/reflection.html

[G0ldfinger]

Hi GF,...

Cheers!

[Steve Netwriter]

Hey Steve! I am struggling to understand/follow your threads with Captain and fofoa on your forum. Suffice it to be said with the prospects of houses being anything between 1 and 5 oz's, then I should just keep buying while I can for the bargain 'prices' currently/while available?

 

It's all a bit of a mind bender. I just need telling to continue or not to continue. I think I know the answer but am unable to get on top of the reasons, kids screaming etc...

 

Gold for Dummies would be a great addition to the Aristotle/FOFOA stuff.

 

Best, Jake.

 

PS When is the liklihood of houses being 1-5oz's? Just hoping my parents are still alive...

 

Hi Jake,

I'm rushing to write this, dinner is calling

 

1st read FOFOA's article: http://fofoa.blogspot.com/2010/05/reflection.html

 

The problem is, unless you've read a fair few of his articles you may find it hard to fully grasp.

I have and I'm still trying to fully understand it.

 

I think there is this subtle snap that occurs when you realise what he's talking about.

Let's see if I can explain in a sentence!

Paradigm one, gold is a commodity, so as money it's worth what the commodity is worth, look at supply and demand, extraction costs etc and calculate.

That's not it!

Imagine gold has no use AT ALL. But it is rare, and indestructible.

Imagine it makes a really good money. It can't be "printed". It's got a long track record.

Now it has value because it's got a job to do, and because people need/want it, because it is money.

 

I think what FOFOA is saying is this. The currencies will collapse. It's the debt that is the issue, not the money supply.

The debt has to be partly repaid, reduced to a reasonable level.

What will happen when the currencies collapse?

There will be a flight to gold, as always. The market, will act, and gold will gain purchasing power until half the US gold reserves will pay off the debt (or somewhere around that sort of idea).

 

I may have got some things wrong, so for what FOFOA thinks, please read what he says.

 

"I just need telling to continue or not to continue" - sorry, only you can do that.

 

"Gold for Dummies would be a great addition to the Aristotle/FOFOA stuff." - Hmm, I was toying with trying to pull it all together. FOFOA does an amazing job, but his posts are quite long. I might get the courage to attempt it...not sure.

 

"When is the liklihood of houses being 1-5oz's?" - my guess, not reliable, is less than 10 years.

 

I'd really like to hear what GF thinks of the FOFOA article

 

 

[aliveandkicking]

Imagine gold has no use AT ALL. But it is rare, and indestructible.

Imagine it makes a really good money.

 

It would be easier to imagine if gold had a bar code on the side and some kind of authenticity certificate that could be read by one of those note counting machines. I suppose if you stuck the gold inside the certficate somehow it could be more imaginable.

 

[alexreeve]

It seems Gold has re-established its inverse correlation with USDX. Has the Euro terror subsided with the unfunded bailout?

[G0ldfinger]

I'd really like to hear what GF thinks of the FOFOA article

Essentially, I agree with it. And here a couple of related charts:

 

http://gold.approximity.com/since1970/Exte...Gold_Price.html

 

http://gold.approximity.com/since1970/MZM_...Gold_Price.html

[njpurser]

Essentially, I agree with it. And here a couple of related charts:

 

http://gold.approximity.com/since1970/Exte...Gold_Price.html

 

http://gold.approximity.com/since1970/MZM_...Gold_Price.html

I did say in a one liner on HPC "The only way to sort out this financial crisis is to revalue gold, then settle all outstanding debts in gold".

No-one replied, presumably because I sounded crazy.

 

 

It still seems the only solution .

 

This crisis of excessive fiat debt can neither be solved by more fiat or more debt by definition.

 

Purchasing power has to be transferred from soveriegn debtors to creditors;this can only be done by appropriately valued gold.

 

 

Nick

[Jake]

I think what FOFOA is saying is this. The currencies will collapse. It's the debt that is the issue, not the money supply.

The debt has to be partly repaid, reduced to a reasonable level.

What will happen when the currencies collapse?

There will be a flight to gold, as always. The market, will act, and gold will gain purchasing power until half the US gold reserves will pay off the debt (or somewhere around that sort of idea).

 

 

 

"When is the liklihood of houses being 1-5oz's?" - my guess, not reliable, is less than 10 years.

 

I'd really like to hear what GF thinks of the FOFOA article

 

Thanks a lot, Steve. I am trying to get to the crux of the FOFOA articles. Lots of reading. It is like going down a well and learning to see in the dark. I am enjoying it all but wish he would just spit it out in a quickie cgnao style summary.

 

Is there a great deal of difference between what he is saying and GF's, James Sinclair's MZM debt equivalent theory? I maybe wrong in thinking but JS is going on the amount of gold he estimates the US has in Fort Knox and FOFOA is going on there maybe being only half of that expected amount...or less.

 

He mentiones confiscation somewhere and nationalisation of all gold mines. I can certainly see the latter, 'in the interest of national security' etc... What would happen to shareholders then I have no idea. Forced sellers before a re-set?? I'd like to see that be suggested and see what the shareholders/companies say/do!! Has that ever happened before? Is it possible in a democracy?

 

 

 

"When is the liklihood of houses being 1-5oz's?" - my guess, not reliable, is less than 10 years.'' Well that answers my question of whether to continue or not...even in the face of gold fallling/manipulated/sold off in another round of deleveraging, temporarily-it would seem stupid not to continue buying whenever possible.

 

If gold will have SUCH a huge role to play then I can only see silver doing very nicely, thank you very much, especially considering the peak silver arguments.

If gold is still 'cheap' here then silver is also a real steal.

 

Gold, silver, cash. Ho hum. More reading.

 

''Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants and debt is the money of slaves''-I too like the appeal of that quote very much. Who coined that phrase?

[Jake]

Essentially, I agree with it. And here a couple of related charts:

 

http://gold.approximity.com/since1970/Exte...Gold_Price.html

 

http://gold.approximity.com/since1970/MZM_...Gold_Price.html

GF why is that 2nd chart now heading down? Taking a breather? Or...

 

Also can you post the link to JS explanation or was it yours or Dominic's explanation of the theory. I'd like to run it with FOFOA's theory. Was JS going on known gold reserves in the US or estimated reserves? Will anyone be able to audit the gold in the US? If so, who?