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Yes I'm surprised by how muted the reaction to this has been. I suspect it will be the same when the big UK banks are told to 'absorb' B+B next week.

They will get nationalized themselves sooner or later, or put on life support with 28-days permanent rollover loans to infinity. Zombies.

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I've just finished listening. Yes, excellent.

 

Here is his website: http://www.prudentbear.com/

 

 

 

http://www.prudentbear.com/index.php/dougnoland

 

Changed Financial Landscape

 

* by Doug Noland

* September 25, 2008

 

http://www.prudentbear.com/index.php/comme...in?art_id=10122

 

Scroll to near the end for the article.

 

Thanks Steve- I was right impressed with that interview and think he gives an excellent justification for our truly held belief that gold will do well.

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May I ask what 'fortress Kitco' is?

 

When I first read your post, I assumed you just meant Kitco (as in the Kitco website), and your gold would just be in the mail. But then it transpired that you actually had the gold.

 

Did you buy the gold over the counter, or did you just buy online a while ago and only post when you'd taken delivery?

 

I've never bought any actual in-my-hand gold (all mine is BullionVault stuff -- for good or ill), so I'm just curious about how you got yours.

 

I think if there was a bullion shop in my piddly little town (i.e. picking up physical PMs was trivially easy), I'd probably have acquired... well, probably some silver I would think, in case things really go down the tubes, so that I have some smallish denomination silver coins to use as money in a pinch.

 

As it stands, though, as I say, I don't have any actual physical hold-in-my-hand metal. Can't really decide whether this is such a big deal or not... :unsure:

 

The premium over spot has been rising lately for physical which tells you all you need to know about demand for physical gold.

Personally, I want mine in my posession and not in the form of some I.O.U.

 

You want an easy way to buy ?

 

here

 

special offer on krugs today if you're quick!

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special offer on krugs today if you're quick!

They're still more expensive than sovereigns if you're looking at the per-gram cost. The special offer on the 1/10th ounce maple looks good value if you want smaller denominations though.

 

krug-special

£506.97/31.1g

= £16.30/g

 

1/10 maple-special

£55.06/3.11g

= £17.70/g

 

half sov

£67.59/3.66g

= £18.47/g

 

sov (Elisabeth)

£119.14/7.32g

= £16.28/g

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I've just finished listening. Yes, excellent.

 

Here is his website: http://www.prudentbear.com/

 

 

 

http://www.prudentbear.com/index.php/dougnoland

 

Changed Financial Landscape

 

* by Doug Noland

* September 25, 2008

 

http://www.prudentbear.com/index.php/comme...in?art_id=10122

 

Scroll to near the end for the article.

 

The first audio by David Tice is a good listen also.

 

http://www.prudentbear.com/index.php/audiovideo

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Have you thought of Chinese Yuan? It could do very well with a sharp devaluation in the pound/dollar. Though I think Swiss Francs are good also.

 

Next time i am at the airport I am planning to buy a little of both.

 

As far as I'm aware you can only buy or sell Yuan in China. Would this be a problem? Even if it's not, check that you're allowed to import and export currency from China, because I'm pretty sure that you're not.

I think it might be better to find an investment which is well corrrelated with the Yuan, but bear in mind that the Yuan isn't a floated currency so it's exchange rate is set by the Chinese government and it is pegged to the dollar or dollar/euro basket and China keep an enormous amount of foreign reserves in the dollar too.

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Did anyone listen to JP on FSN Q-calls today?

 

Though I greatly respect JP, I think he might be a little confused about the velocity of money in the US today. Two callers asked why we we could not be experiencing what happened when the bubble deflated in Japan, which led to deflation and a hoarding of cash. His answer was although the CB pushed out enormous amounts of money, the velocity of money in Japan was extremely low with the implication that it is not in the US. But is not the velocity of money in the US extremely low now also... this is what we call the credit crisis... liquidity trap... frozen credit markets...when money is not moving! Notice also that investors are hoarding cash!

 

Also, he keeps referring to "disinflation" as if he is allergic to the word deflation. :blink:

 

Any opinions?

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Also, he keeps referring to "disinflation" as if he is allergic to the word deflation. :blink:

 

Any opinions?

 

Sorry to jump on your posts, it's not personal - I promise :)

I don't mean to be impolite, I'm just a fact whore!

 

Disinflation is a drop in the rate of inflation.

Deflation is a negative inflation rate.

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They're still more expensive than sovereigns if you're looking at the per-gram cost. The special offer on the 1/10th ounce maple looks good value if you want smaller denominations though.

....

They only allow you to buy 5 every 60 hours. FFS, is it worth it?!

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Sorry to jump on your posts, it's not personal - I promise :). I don't mean to be impolite, I'm just a fact whore!

 

Disinflation is a drop in the rate of inflation.

Deflation is a negative inflation rate.

 

Yeah, but the word deflation has a wider meaning than just lower prices or a decreased amount of dollars in circulation. It also has a macro-economic meaning. For example, a contraction of the credit markets is deflationary. I think this is the reason Jim is averse to using it.

 

The great interview he had in hour 2 was all about deflation. :)

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The cheapest 1oz silver coin on coininvestdirect is GBP 12.02, while the spot price is GBP 7.19. :o I guess my silver purchases remain confined to GoldMoney for now.

 

Aesthetic and/or paranoid concerns must be the only drivers for home delivered physical silver purchases at the current premiums.

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Yeah, but the word deflation has a wider meaning than just lower prices or a decreased amount of dollars in circulation. It also has a macro-economic meaning. For example, a contraction of the credit markets is deflationary. I think this is the reason Jim is averse to using it.

 

The great interview he had in hour 2 was all about deflation. :)

 

I think that definition of deflation is used only by the Austrian school and refers to a contraction in money supply.

Thanks for the original post, I'm listening to the full three hours now, if this is the correct link.

http://www.financialsense.com/fsn/main.html

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Did anyone listen to JP on FSN Q-calls today?

 

Though I greatly respect JP, I think he might be a little confused about the velocity of money in the US today. Two callers asked why we we could not be experiencing what happened when the bubble deflated in Japan, which led to deflation and a hoarding of cash. His answer was although the CB pushed out enormous amounts of money, the velocity of money in Japan was extremely low with the implication that it is not in the US. But is not the velocity of money in the US extremely low now also... this is what we call the credit crisis... liquidity trap... frozen credit markets...when money is not moving! Notice also that investors are hoarding cash!

 

Also, he keeps referring to "disinflation" as if he is allergic to the word deflation. :blink:

 

Any opinions?

He's into the hyper inflationary depression thing. This would mean treasury yields soaring as the debt is dumped. One thing that's still being bought are treasuries - safety play. At some point there will be a very large sell off and subsequent tsunami of dollars that will hit everything tangible - there's the velocity right there.

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May I ask what 'fortress Kitco' is?

 

When I first read your post, I assumed you just meant Kitco (as in the Kitco website), and your gold would just be in the mail. But then it transpired that you actually had the gold.

 

Did you buy the gold over the counter, or did you just buy online a while ago and only post when you'd taken delivery?

 

I've never bought any actual in-my-hand gold (all mine is BullionVault stuff -- for good or ill), so I'm just curious about how you got yours.

 

I think if there was a bullion shop in my piddly little town (i.e. picking up physical PMs was trivially easy), I'd probably have acquired... well, probably some silver I would think, in case things really go down the tubes, so that I have some smallish denomination silver coins to use as money in a pinch.

 

As it stands, though, as I say, I don't have any actual physical hold-in-my-hand metal. Can't really decide whether this is such a big deal or not... :unsure:

 

Kitco have "shops" too. Well secured shops (hence "fortress".) You go in, press a button to "Buy" or "Sell", a number is dispensed. When your number comes up, you go to one of several small private rooms and buy your gold. They had Maples, Krugs, Eagles and the baby bars that I bought. I bought a bar at CAD 932 rather than a maple at 965. You can spend up to 10,000 dollars in cash, or 1000 on debit card. Anything bigger needs a bank draft. If you spend over 10k, they take a lot of details from you. Anything less, they don't even ask your name.

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The cheapest 1oz silver coin on coininvestdirect is GBP 12.02, while the spot price is GBP 7.19. :o I guess my silver purchases remain confined to GoldMoney for now.

What are your views on lesser known or commemorative coins and what's the maximum markup you'd pay for a coin? I got a proof Fijian $10 commemorative silver coin on ebay, with delivery, for the equivalent of £9/oz when goldmoney was charging about £6.20 plus their markup. Even if I overpaid, it's still nice to look at ;-) I keep getting outbid on the Britannias over there.

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Kitco have "shops" too. Well secured shops (hence "fortress".) You go in, press a button to "Buy" or "Sell", a number is dispensed. When your number comes up, you go to one of several small private rooms and buy your gold.

That sounds a lot like my local dispensing chemist :blink:

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What are your views on lesser known or commemorative coins and what's the maximum markup you'd pay for a coin? I got a proof Fijian $10 commemorative silver coin on ebay, with delivery, for the equivalent of £9/oz when goldmoney was charging about £6.20 plus their markup. Even if I overpaid, it's still nice to look at ;-) I keep getting outbid on the Britannias over there.

I hold coins for sentimental reasons, but it's only a small quantity. They're still bullion, but usually more expensive than more common coins. I see no reason not to do it as long as it is on a small scale. But otherwise, it's just bullion coins for me.

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I think that definition of deflation is used only by the Austrian school and refers to a contraction in money supply.

Thanks for the original post, I'm listening to the full three hours now, if this is the correct link.

http://www.financialsense.com/fsn/main.html

 

That's the one. Refers to the contraction of both the supply of money and credit. I must be an Austrian. :)

 

The 2nd hour explains the big picture extremely well IMO.

 

 

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I hold coins for sentimental reasons, but it's only a small quantity. They're still bullion, but usually more expensive than more common coins. I see no reason not to do it as long as it is on a small scale. But otherwise, it's just bullion coins for me.

Same for me. Sometimes the commemorative coins go for less of a premuim and whilst I consider only the bullion value I might be lucky enough to find someone who will buy the numismatic value when I come to sell. The fact that the premium is lower for some of these coins suggests their numismatic value is currently negative. It's a market I don't properly understand, I'm hoping the lower premium is simply because everyone tends towards Maples, Eagles etc (whilst they're still available ;)) but I'm not risking much capital in it.

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That's the one. Refers to the contraction of both the supply of money and credit. I must be an Austrian. :)

 

The 2nd hour explains the big picture extremely well IMO.

 

Yup, it's a good overview of the problems facing the global economy, though the trend seems to be to pin the enitre problem on Paulson and to take a defeatist attitude to solutions.

 

It seems a lot of commentators believe the best solution, is to let the economy fail, start the same system again without the excess money supply and have faith that this would allocate products and services efficiently, next time.

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