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Is The Gold Market A Bubble?

February 7, 2011 by  

Is The Gold Market A Bubble?

People who hate the discipline of gold are creative in their attacks to discredit honest money.

They say gold is in a bubble. But it is paper money that is in a bubble and the world is in the blow-off stage. In fact, every passing hour there is created tens of millions of dollars in phantom money. This requires more and more gold to rebalance the escalating deficit of substantive money.

Gold is not in a bubble. The world’s governments and people need more and more gold versus paper money.

Confidence in government “money” is collapsing. People all over the world are suddenly learning that governments steal from their citizens by inflating their currencies.

My advice to you is that if you wish to return to the good old days when you could buy a loaf of bread for a dime, then you must have some silver dimes. The baker will understand the value of a silver dime when the time comes.

Also, you should get money out of the United States into the Swiss franc and investigate Swiss annuities. There is a $50,000 minimum now. For information call toll-free 1-800-331-0996, leave your name, address, and phone number for information. Please speak clearly.

Another offshore wealth protection strategy is offshore life insurance. You can obtain our free research manual, The Offshore Life Insurance Advantage, written by top attorney J. Richard Duke, to learn more about them. I outlined some of the advantages of offshore insurance in my recent column, Consider Offshore Life Insurance For Asset Protection.

The greatest problem the American people have is currency depreciation by the government. The government produces nothing. Government can only depreciate the value of the currency to pretend to pay debts and stabilize the economy.

Once again, gold is not in a bubble. It’s paper money that is in a bubble. Gold has been rising in paper money terms for 10 years because wealth holders around the world are increasingly seeing it as a more stable currency than their local currencies.

Gold is a more stable currency than paper money because of its scarcity; annual demand for gold exceeds its production. Annual demand for paper money does not. The truly damning phrase should not be gold-bug, but paper-bug. Many investors and media commentators resolutely refuse to understand gold as real money.

No, it is not too late to buy gold and silver coins. In fact, the recent correction makes now the right time. You must keep them in your personal possession, not in a bank safe deposit box.

Gold and silver stocks have broken out to the upside again. They still have a lot to gain in my opinion. I use Charles Schwab for a discount broker.

The following are gold, silver and energy stocks that I own. I’ve made tremendous gains with them and they still have a long way to go: BHP Billiton (I recommend this stock to everyone), Royal Gold; Kinross; Iamgold; El Dorado; Agnico-Eagle; Silver Standard; Pan American; CONSOL Energy; ASA Limited; Marathon Oil; Talisman Energy; Endeavour Mining; Industrias Penoles; Couer d’Alene Mines; Compania De Minas Buenaventura SA; Baidu Inc. (this is the Chinese Google, a high flyer and has a long way to go, in my opinion).

We are not selling yet: Newfield Exploration.

Some good funds: India Fund; Morgan Stanley Indian Fund; Vanguard Energy Fund; Fidelity Select Gold Fund; GAMCO Gold Fund; Tocqueville Funds; US Global Investors Precious Minerals Fund; US Global Gold and Precious Minerals Fund.

Bob Livingston

is an ultra-conservative American who has been writing a newsletter since 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

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  • John T. Bonfardeci SR.

    Dear Bob and Staff,

    Thank you for your publications!
    The link below is of vital importance. References to events Financial, weather and etc. in the US for 2011. According to prophet of the Lord John Paul Jackson, the US Treasury Gold will be discovered to be not genuine Gold! Gold will increase to dramatically higher prices, according to what God has shown John Paul.

    http://www.sidroth.org/site/News2?abbr=tv_&page=NewsArticle&id=9665

    God Bless,

    John Bonfardeci

    • EddieW

      Gold is a great way to maintain the value of your currency…but…before gold, one should have a year’s supply of Freeze dried foods..IF…you have a cool place to store it, otherwise a 3 month supply!! If food is not available, a wheel borrow full of gold will not buy it, from those those smart enough to have stored some!!! If you can afford it, store extra for trading materials!!

    • Mike In MI

      Mr. Bonfardeci -
      It is difficult for me to believe that this John Paul Jackson is anything but a counterfeit prophet. So what – he gets light shows and “angelic” visitations and “feelings” and tactile sensations and he can quote a lot of scripture. Joseph Stalin could quote scripture all day. That didn’t make him a man of God – nor does it imply God has stamped His imprimatur upon or approved of Jackson.
      As to the matter of him getting or having knowledge of future events via visions, voices, automatic writing sessions or any other form of revelation is of no consequence. Unless the true God intervenes, the Devil pretty much makes what he wants to happen…happen…on his schedule.
      Jackson evidently doesn’t know how to (or that he should) “try” or test the spirits at work to demand that they declare their allegiance/subserviance to Christ Jesus by declared admission that he, Jesus, has come in the flesh. Jackson made no attempt to assure us that he had done so. Therefore his information is automatically suspect and to be avoided. The Word of God tells us to do this to any agent of teaching or foretelling. Without doing it examples of lying/deceiving spirits’ activities abound.
      The God Who is the Father of the Lord Jesus Christ seldom works by revealing future events or saying much if the info is already in His Word. The reason is simple. If you had confidence that God says what He means and fulfills His warrants how would one benefit by learning the future? The fruit of the spirit in Galatians 5:22-23 exist in a DISCIPLE’s life because of his certainty that God is his sufficiency in everthing, at all times, in all places because that man or woman consistently studies to learn what God will do and what is expected of him/her (slips at times but is consistent). They have tried doing life (a) apart from God’s help, and (b) with God’s help. They seldom have questions about what is their part and what is God’s part. (That doesn’t happen over night, in a cloistered lifestyle or under wrong doctrine.) The disciple knows what the future is – for him – as long as he keeps his hand in God’s hand, in the name of Jesus Christ.
      I have never seen any religion which makes such claims…and fulfills them. No short cuts. Jesus Christ couldn’t have cut corners to make it all possible.
      So, what makes your friend Jackson think giving out “keys to this-and-that” from certain points of scripture (without having to establish the basics first) or benefits from knowledge of future events has its basis in anything but evil? The Devil does it. But, his long term purpose is only “to steal, kill and destroy”.
      Please don’t say “god bless” to me if that’s your god – it won’t be a “blessing” I want to recieve.
      Praise the Lord…Christ Jesus!!! (Do it the way scripture recommends and you’ll receive and give God’s type blessing. If not, take potpourri.)

      • Bruce D.

        Do not give the devil so much power. Man can set goals and achieve them. The world does have have to succumb to liberal progressive destruction.

        • Mike In MI

          Bruce D. -
          Thanks for a very good response and for bringing that up.
          You are exactly, precisely on target and correct. People (men, women and children) can set goals and achieve the results of their goals. The only difference between “goal setting” and “believing” is a semantic one. The only nuance is the time required to accomplish the goal and the length of focussed mental attention-time required. “Goal setting and attainment of the accomplished reality” takes believing over an extended period of time. Successful businessmen do it all the time, whether they are saints or sinners. Anybody can operate this principle because it only takes “mental muscle” and a little resolve.

          Anyone can do it because one of the prerequsites to becoming a son of God is to “believe that God has raised him (Jesus Christ) from the dead”. The other part is to say you accept Jesus as your Boss (Lord). One minute a person is dead in tresspasses and separation from God. The next moment he believes and says the above and (POOF) God creates in the person something that wasn’t there before…God’s spirit. Now, the person has rights before God and access to the things Luke depicts in Acts and Paul’s letters speak about.
          You exhort me to not give the Devil so much power. That tells me you don’t know what power he has…or what power disciples have. I will give the devils and the Devil their due. They have the same power to believe anybody else has; he’s as free an individual as anybody else to believe any way he wants. The only difference between him and you is he knows what he’s got and what to do with it. He also knows what you have that you don’t know how to operate to overcome him.
          So, since he’s been able to spread false dogma and doctrines all over the place that cut people off from getting God’s best, he beats you at every turn. And, he’ll continue to do it unti you find someone to show you what you’ve got and how to use it against him to defeat him and help others.
          All it takes is believing and study and setting a few “Godly Goals”. If you want…

          • Bruce D.

            You sound like a good man Mike. I wish you the best in whatever struggle you may be confronted with.

          • Mike In MI

            Bruce D. -
            Thanks, I appreciate you, sir. May God shine warmly on you and yours, also.

          • Mike In MI

            Bruce D. -
            “Struggle…confronted with.”(???) Does it count, in respect of “struggle”, that I (we) live in Michigan?

      • James

        Mike, I agree. It has already been discovered that at least some of the gold in Fort Knox is fake. When some was shipped to China, to pay the interest on our debt to them, Chinese inspectors discovered that the gold bars were only gold plated by about one-eighth of an inch, the core metal was one of similar weight, but far more plentiful. This was why Rep. Ron Paul moved for an audit of Fort Knox, and probably where this ‘prophet’ supposedly divined it.

        • Mike In MI

          James -
          WOW. What a great bit of info to catch me up. Thank you, thank tou.
          So, see it’s hard to go wrong just depending on basic principles, guidelines and discernable trends in the accounts of the Word of God. There doesn’t have to be anything that requires “Twilight Zone” music with it. There’s nothing new under the sun because the True God’s ways are faithfulness, truth and integrity.
          Further, no matter how hard he tries, the Devil is never creative nor innovative. He just constantly uses the same old sows-ear for his bag of worn out tricks – and most people fall for his rickety, rag-tag stuff over and over with the same stupid, lousy consequences.
          Folks, it’s all laid out in The Book. Ignore it at your peril. We are swiftly descending into a bad cultural mess. Those who know they can rely on God and what He expects usually have the best chance of prevailing and making it through extremes of…whatever. They usually come out on top, too. It’s like anything else in life where skills are needed: the ore you know the more versatile and flexible you can be. The less you know: the more constrained, rigid and likely to make mistakes.

    • dr reality check

      (re; comment by Bonfardeci) This is not a Christian belief, but a cult with an economic motive. Using religious cults to promote panic-based investing may enrich the seller, but is the lowest ethical level a person can achieve. Readers are advised to not fall for it.

    • Dan az

      You may find this interesting on the one world currency.
      http://redalert.wnd.com/index.php?fa=PAGE.view&pageId=2731

  • bob wire

    very interesting! Much like the Super Bowl, I am void any perception and hold no bias, not really caring who wins, left to watch two Titian mix it up.

    But a bad referee call doesn’t go with out notice or disappointment.

    Paper needs to represent ~ something?

    • Mike In MI

      Bob Wire -
      It does “represent something”.
      It represents what is printed on it as the warrants of those who had it printed – to whatever extent you believe their warrants have any value. Actually, you may believe it. But, if they don’t want to, will not or can not make good on it – - – your belief is baseless, you lose.
      Just remember, they truly believe, “All men are liars.”, and they are most definitely certain of it in relation to themselves. That’s their rationalization for what they planned all along. Our government is one colossal con.

  • Howard Roark

    The buying power of gold actually remains pretty stable. a house that could be bought for x number of one ounce gold coins in 1950 can be bought for the same number of one ounce gold coins today. The example I like to use so people can easily see how the buying power of fiat paper money has deteriorated is this.

    When the first dollar of Social Security tax was stolen from me in 1959 candy bars were a nickel. I could have purchaSED 20 CANDY BARS WITH THAT DOLLAR. THAT DOLLAR WAS RECENTLY RETURNED TO ME BY sOCIAL sECURITY AND THEY CLAIMED THAT THEY HAVE PAID ME BACK 100 PERCENT. bUT THAT DOLLAR WILL NOW ONLY BUY ONE CANDY BAR WITH SOME CHANGE.

    • Denniso

      Gold is certainly near the top of a bubble,fueled by fearmongers w/ often a vested interest, and real uncertainty in the world and the recent huge economic crash. What most people don’t understand is that money is whatever it is that is agreed upon by societies and gov’ts.
      There’s nothing all that special about gold in the modern world where we can make metals that last forever and don’t rust,that’s what set gold apart and made it special to ‘cave men’ who had no clue about the world. We didn’t go off the gold standard under Nixon the Republican and liberal hater, in order to steal people’s money or bankrupt the country or establish a new world order or dictatorship under Obama. We went off it,as did most of the world,so our economy could grow and accomodate the job growth we need in a modern,industrial and technological world. It’s worked pretty well for the majority of Americans since then,and the big crash is the the blight on our economy now. Maybe the crash wouldn’t have been as big if we had been on the gold standard,but that’s because the entire economy would be much smaller if all money had to be backed by gold.

      • ValDM

        We went off the gold standard in 1913. We went off the silver standard in the mid-60′s. Our money now is little more than “scrip”; you know what scrip is: you go to a beer garden and buy these little tickets that when turned over to the server, will obtain you your libation. When you leave the beer garden, and still have the scrip in your posession, it’s worthless until you return to the beer garden. That’s what our money has become.

        • http://?? Joe H.

          ValDM
          What denniso fails to realize is that China has now allowed it citizens to own silver and gold legally now! Silver is used in manufacturing, medicine, electronics, all kinds of things and it is estimated to be over 87% mined out. The value will just grow. Gold is used in jewelry, medicine, electronics, and like silver it is used in the manufacture of coins. The difference is it ISN’T near mined out, but the supply can’t keep up with the demand! The value will also climb. I still believe that silver will outpace gold as far as increase in value.

          • Al Sieber

            JoeH, thats what I do for a living, I mine gold, silver, copper, etc. for the past month I’ve been putting together a bunch of equipment to run 4 yards a hour, 10 hours a day, at one quarter ounce per yard. I wouldn’t borrow $8000, plus put in $4000 of my own money if I thought there was a gold bubble. I’ve been doing this for 35 years for other companies, in the USA,Central America, Mexico. you are right on about supply and demand.

          • Denniso

            So my dates are wrong…the gold standard was ended in 1933,but gold was still pegged at $35/oz,until Nixon severed that connection in 1971…no major economies have used a gold standard since. Frankly, I’ll trust the worlds economists over the rabble here.

          • DaveH

            Denniso,
            Gold has been prized by mankind throughout written history. And still is. The fact is that there is no limit to the devaluation of the dollar. It will continue being devalued as long as they create more. Whereas the value of gold will most likely continue unabated. Sure the price of gold in dollars may be high right now, but that is because astute investors look several months or even years into the future to make their investment decisions. And there is no sign whatever that Government and the Federal Reserve are going to cease their profligate ways.
            While there are certainly short term fluctuations in the price of gold in American dollars, there is virtually no limit to how high the cost of Gold will go. Its price is entirely dependent on the amount of dollars in circulation, and as long as the quantity of dollars increases the price of Gold will increase.
            For those who would like to understand money better, read this:
            http://mises.org/books/Rothbard_What_Has_Government_Done.pdf

          • Denniso

            WOW!! Dave says there is virtually no limit to where the price of gold can go…I’d better buy some because it could virtually hit a million $ per ounce. Everybody better jump on board for the virtual sky’s the limit price of gold.

          • DaveH

            For anybody who wants to get a clue (I guess that leaves out Denniso):
            http://en.wikipedia.org/wiki/Hyperinflation

          • JC

            Actually Denniso…you may have had a light bulb go on.
            If the kenyan keeps printing money…it is conceivable that gold could hit those numbers.
            Not because gold got any more valuable, but because the “money” is that worthless.
            That’s what stimulus and bail outs do for us. Devalue the currency.

          • DaveH

            JC,
            Nobody could be that clueless. Obviously Denniso is feeding at the trough and just trying to mislead others so he doesn’t lose his position.

          • JC

            I know Dave, the LibComs refuse to acknowledge the obvious if it doesn’t suit their statist agenda. Logic, reality and sensibility don’t blend at all with touchy/feely/huggy emotional “yes we can” ideology.

          • Denniso

            ‘Feeding at the trough’…another of your mindless phrases DaveH. We’ve been through this before,but I guess your head is more like a rock than I thought. I have never been employed by or had any sort of gov’t contract. I’ve been self employed for 40 yrs and created my own work and jobs and career. There are,however, millions of hard working and often underpaid gov’t workers at all levels who keep the country going so people like you can get in your car and drive down the road to the store or work, and do it in relative peace and safety, and still bitch and whine about the ‘trough’…

        • James

          ValDM, We didn’t go off the gold standard until the 1930s, when President Franklin D. roosevelt outlawed possession of it. 1913 was the year the Federal Reserve Act was passed, which gradually led to that. It was also the year when the 16th Amendment was added, which allowed Congress to directly tax income without apportionment among the States. If we were to repeal the Federal Reserve Act usury system and the 16th Amendment, most of our financial problems would disappear.

          • http://?? Joe H.

            James,
            The gold coins confiscated during that time were destroyed. One of the gold liberty dollars, 1933 I believe, was given to a middle eastern ruler right before and when it sold here in the US, it sold for over 7 million dollars. I might add the federal government tried to confiscate that one after the sale as well. There is a lady that came into possesion of supposedly ten more of the same coin and sent them to, of all places, the mint to have them authenticated. the government seized them and the case is still ongoing!! Needless to say, I would love to have two or three of them!!

      • Hal Moore

        A Gold Standard buts brakes on the amount of paper money creation ie: inflation possible. There is no Gold bubble only a paper money bubble. All civilizations that inflate, Rome being our greatest example, collapse. Read “What Ever Happened to Penny Candy” or “Ancient Rome, How it Affects You Today” by Richard Maybury. He has written a series of books “Uncle Eric” books that cover Law, Economics, Politics and History which is outstanding written from the “Juris Naturalist” philosophy Jefferson and the Founding Fathers believed and used to prepare our Constitution and Bill of Rights. This knowledge isn’t found in our schools today because it conflicts with the Political Power we have been taught is our Heritage

      • Bruce D.

        Paper money does expand the economy but it also has corrections in the form of inflation which hurts those on fixed incomes the most. It also is a losing game for wage earners as it takes time for wages to catch up to inflation – a lot of time. It is short sighted for liberal progressives to push fiat money for social services. There is always a time of reckoning which destroys many peoples lives and savings. It is not a free lunch as most liberals think. Denniso is funny as gold has probably tripled sense he has come out against it. Goal will eventually hit a point where it is no longer sustainable as did housing prices. It is unlikely it will ever fall below $1000 dollars an ounce again. Food prices are going through the roof and the banks have yet to release money in the form of loans that will fuel the inflation. When George Soros sells his gold it might be a good indication to sell yours also-quickly. “Keep yours friends close and your enemies even closer.”

        • http://?? Joe H.

          Bruce D.
          Unless soreass is selling his to lower the price so he can buy more at a lower price! He is good at manipulating things!

          • Bruce D.

            Agreed.

      • Al Sieber

        Denniso, where do you get your information? out of a cracker jack box?

      • Mike In MI

        DennisO –
        Your thoughts are about as deep as the saucers used for panning gold…and about as swishy. Thing is, the best you produce is iron pyrite and mica. Maybe, you should call yourself “MicaO”. That way people might be forewarned about what’s to be forthcoming.
        If, as you say, people determine what they choose to use for money and set valuation (therefore gold has no real, special value) what would have kept people from resetting the value of the dollar, nickel, dime, and penny at a much greater worth and continued to expand the economy, business, innovation and jobs, etc.?
        Oh-h-h-h…, but if they had done that the One-worlders and progressives would have had no fear-mongered-panic-moment to break our bank and put us in hock to our enemies (their friends)…would they? Why would what I say not have happened if what you say in the first part of your rave is actual?

        • Denniso

          I try to ignore those who start up a conversation w/ insults…not very adult and I don’t have the time for child’s play. Currency markets and the overall market determine what money is worth…inflation,deflation,supply and demand.

          • DaveH

            That’s a joke, right Denniso? You may fool the newcomers for a while, but anybody who has followed your comments knows better.

          • Denniso

            And how do I fool the newcomers? By being civil most of the time and only attacking when I’m attacked or someone expresses bigotry,racism or sexism? Yep, I’m sure clever,and these poor newcomers just don’t realize how vile and mean I really am.

        • Bruce D.

          Why the insults Mike? From your earlier posts I did not expect that.

          • Mike In MI

            Bruce D. –
            Sorry to disappoint you, sir. I’ve read many of your posts since you’ve been coming here and I respect your opinions and knowledge…along with many, many other of the men and ladies who share their heads and hearts in Bob’s site.
            However, over about the last year and a half I’ve also read a lot of DennisO’s, too. It escapes me how omeone can spend as much time here as he does and not learn somehingSo many people have given DennisO hints as to where to go to get some facts, books, real world principles, reason and wisdom that, if he were open to learning, his original mind set should have been overwhelmed long ago.
            Instead, he blows it all off, goes to someone or some thing which digs around his sandy foundation a little, shores it up and sends him back here. When he arrives he dumps the honey wagon on this lawn.
            There have ben times when people who were very erudite in their fields have attempted patiently to help DennisO understand why his sails are luffing and the tack he’s made will never fill the sails.
            …To what avail???
            If your question was in regard to my manner in answer to you about the Lord versus my reply to DennisO…well, I guess I’d say go to the gospels. Read some of Jesus Christ’s responses to Pharisees, Sadducees, scribes and chief priests and others who were adamant against the scriptures, against God, against reason, against clear and undeniable facts/experiences of people with which they were confronted. He even called them names that indicated they were dirty and foul, like a grave, full of deadness and corruption inside.
            To some extent that’s DennisO. Of course, he can change anytime but it’s doubtful he will. When one stands so adamantly against time honored principles, facts and establishments…well? I guess if one is going to be iconoclastic he’d better have some strong evidence that supports the new god. He doesn’t. He only points in the ways of ideas and theories which have failed miserably wherever, whenever and by whomever they were utilized – causing tremendous loss and damage.
            But, maybe, since he has a right to his own opinion in this country (up to now, anyway), it’s best to just leave it alone. But…it’s hard to…Oh, all right.

          • Mike In MI

            To Whomever -
            I apologize in having referred to DennisO as “he”. I forgot; DennisO is a female.

          • Denniso

            I’ll have to guess what you mean w/ your, ‘time honored principles’, that I am alleged to ignore…

            1.The greed and selfishness of Ayn Rand’s ideology.
            2.The foul or ignorant mouths of 3.Limbaugh,Savage,Palin,Hannity,Fownews.
            4.The belief that gov’t can’t do anything right,but we magically have the best gov’t run military in the world.
            5.Business always knows best,and gov’t should get out of it’s way,especially when they want to pollute and poison.

            Am I close to your ‘time honored principles’? And notice,I didn’t have to call you a rightwing sheep in responding.

          • Denniso

            The number 3 was supposed to go w/ 2.

          • Mike In MI

            DennisO –
            I apologize for my earlier intemperate remarks.

            A person who takes positions in accord with eternal principles in the Word of God will be neither Left nor Right, but, different from both. The Principles of God are generally an abomination to someone who despises God and that as become clear to me. I’m not responsible for positions anybody else takes.
            The one thing I know is that anything which God does not support is going to rot and collapse from within. Most people on the “Left” don’t know it but their positions are spelled out and based on elements of the Humanist Manifesto. If you’re going to believe those things you might as well go all the way and proclaim allegiance to the whole Satanic Bible.But, that’s not very fashionable…yet.

          • Denniso

            I’ll accept the apology…it’s easy to get carried away w/ all the vitriol here and I’m not exactly on the popular side here usually.

            I think you are missing the point that there are millions of liberal Christians, and those who don’t believe in God don’t ‘despise’ him,they simply don’t think any sort of God who would be concerned about us exists at all. Maybe some unmovable force connectd to the creation of the universe,but not a God as painted by Christians or any other religion. To those who don’t believe,there can be no despising of something that doesn’t exist. They want a country run by elected humans,not turned over to someones idea of ‘God’.

            Another thing that conservative Christians miss is that almost all non believers have very stong ethical systems…they just differ on some fundamental issues w/ conservative Christians. They also care deeply for the country,which is why they are willing to fight on the issues.

      • James

        Denniso, Gold isn’t at a bubble, its’s price goes up and down like any other commodity. And when a particular currency is being inflated, like our dollar, the price of gold rises appropriately. Gold simply reflects the value of any paper currency in circulation. Back when our $20 gold coin (nearly an ounce of gold) was first minted, gold was right at $20/oz. On December 31st, gold hit $1420/oz. (an all-time high), it has since corrected to $1349/oz. (yesterday). With the world economy being flooded with dollars, we should see $2000/oz. gold sometime this year. We have all seen the TV ad offers to buy old gold coins and jewelry, now almost daily, they pay about 1/3 of what it’s worth, melt it down into ingots, and when gold hits $2000 they’ll sell it and make millions.

        • Denniso

          Gold is not just like any other commodity…most commodities go up in price when the economy is doing well. Gold goes up when the economy is in trouble and people buy it as a hedge against a struggling economy and stock market.

          • James

            Denniso, Commodities go up in price because of inflation. In our system, our rate of infaltion is about 2%/yr. It is higher than that now because of all the borrowed (unearned) stimulus money being passed out to pervent deflation. When the housing inflation bubble burst, house prices began to tumble, and the federal reserve immediately sprank into action to keep prices up. But houses don’t get more valuable as they age, the dollar just gets less valuable.

          • denniso

            Everthing goes up continually w/ inflation,and inflation is a fundamental part of capitalism. You are missing another fundamental aspect of capitalism,supply and demand. When Demand goes up for a product,price also rises,then supply tries to catch up and the price stabalizes. Any business that can raise prices on it’s product does so whenever it can…if demand is up then they can get away w/ increasing the price. When demand slows,like w/ the housing sector now,price falls.

  • http://charden@neo.rr.com Charles

    I believe gold and silver should be at least 20% of what you own. I try to follow what the Jewish people are doing. You go to any jewelery
    store, they are buying gold & silver as well as selling it. I have seen
    long lines of people in these stores selling and not buying. People,
    you better hang onto your gold& silver. Who ownes most of your jewelery stores? I would have to guess, they are owned by Jews,who
    are very smart when it comes to money and just about anything else.

  • JR

    On the other side, as prudent as it is to have gold and silver in an economic downturn, a temporary interruption or upheaval in this country, the down side is in a survival situation, a situation that is the result of a total destruction of society, i rather have paper money.
    Why: Because i have uses for it, I can use it to make fire, wipe my butt and a dozen of other things.
    Gold? well its useless to do this and once we are in a situation like that…and I firmly believe we are on our way to it…gold will be utterly useless.people will be hard pressed to survive and nobody will accept gold or silver for any food or other survival items.

    • Al Sieber

      JR, I’ll be glad to take all the useless gold off your hands.

      • DaveH

        Good response, Al, lol.

      • http://?? Joe H.

        J R,
        I’ll give you a brand new 20 dollar bill for you to wipe with for every 1/10 ounce “worthless” gold coin you give me!!!! Better yet, I’ll give you ten brand new ones, then you can wipe more than once!!!!

    • James

      JR, Well said, but after the dollar fails, gold can be traded for things that are needed. From now to then, gold will preserve your wealth, it will counteract the dollars loss of value. An ounce of gold will, essentially, buy the same amount of goods that it bought 100 years ago.

  • Al Sieber

    Good article Bob, I don’t believe gold is in a bubble, I do believe there’s a gold and silver shortage, and Goldman Sachs might be behind it. and if it’s true that for every 100 ounces they sell on paper they only have one ounce of physical gold to back it up they’re in trouble if the customers call in their physical gold. gold has been very volatile the past 6 months as they try to keep it down.

    • Dr. Mabuse

      This is why any type of “fractional reserve” financial transaction should be outlawed. I hope that everyone calls in their physical gold on the same day… the rats and roaches will be scrambling for cover.

      • Al Sieber

        I would like to see that too Dr., the sooner the better.

      • DaveH

        Dr. Mabuse,
        Fractional Reserves are a necessity if a bank wants to earn money (loans, etc.). The banks could do without them only by charging exhorbitant fees to their customers. Then of course people would demand Government protection from those.
        Imagine, for instance, the extreme that banks must have 100% of their depositors’ money available at all times (100% reserves). How would the banks survive? They would have to charge very high fees.
        On the other hand, if they were allowed to have 0% reserves, they would be extremely risky to be sure. Somewhere there is a middle ground. That middle ground would be best determined by Free Markets. With Free Markets people would start paying attention to the risk factor as opposed to the banking fees. Those people who preferred higher risk and lower fees could try the banks that offered such. Those people who preferred lower risk and higher fees could use the banks that offered that.
        Yes, there would be failed banks along the way and angry customers, but in the long run the money we saved on regulators’ salaries and the cost of regulatory compliance, would far surpass the losses of the failed banks. People would become more informed on money matters since they would not be suffering from the delusion that Government can protect them. And Bank Officers would become more informed knowing that the alternative is failure, humiliation, and monetary loss. It would be win-win for everybody but the regulators who would have to seek honest livings and become productive human beings.

        • Dr. Mabuse

          I see your point, the rapaciousness of the present system has got my dander up. Question: Does the FDIC fit into your equation in any way?

    • James

      Al S., That’s what FDR said when he took us off the gold standard. When he took office in March 1933, 25% of Americans were unemployed, and all federal banks were closed, people had demanded gold for their deposits, which the paper currency allowed, but there simply wasn’t enough to cover all the money in circulatiion. Pegging the dollar to gold handcuffed Congress to a balanced budget, FDR hated that.

  • Maranatha! Mark

    The price of gold has placed it out of the reach of the average, but Silver is still within reach of the average working man. And had you purchased silver a year ago, you could have bought it for $14 an ounce, which means if you had held on to it, you would have had over 100% profit, and gold can’t match that boost. Dollar for Dollar, silver offers the most feasible and profitable investment. I have seen some forecast of silver hitting $127+ per ounce in the next year or 2. The thing about silver is you can use it as a exchange for normal goods. It is hard to measure grains of gold for a loaf of bread, but you could measure out a tenth of an ounce of silver.

    Silver is the where the truly smart money is and the most potential for profit is, but if you tens of thousands of dollars to convert to metal, then gold or platinum is a viable option.

    • James

      Maranatha M., I agree, I believe gold possession will be outlawed, like FDR did. Gold and silver closed yesterday, respectively, at $1349/oz. and $29.32/oz. – a 46 to 1 ratio. A few months ago the ratio was 60 to 1, silver is catching up. Back in 1980, when gold hit $800/oz. and silver rose to $50.oz., the ratiio was 16 to 1. Let’s remember, back then we were told gold will never reach that height again.

  • http://PerrsonalLibertyDigest Fred

    Bob you indicated buying or at least you are holding gold and silver stocks. I am in favor of gold and silver that I can hold in my hands. If I pay $1400 for an ounce of gold today and then want to cash it in, say 1-2 years from now, I get back $1400+ but in dollars that may be worthless or at least worth less that today’s dollars. If I trade my dollars for Swiss franc and then paid back with the same, it might be a good idea to hold stock. But I don’t have the min. $50k to start with.

  • Maranatha! Mark

    Ooops! I apologize for the type-o’s in the last post… hard to talk on the phone and type comment as well… at least for me. Let me try to fix some of what I was trying to say so that it might make more sense:

    The price of gold has placed it out of the reach of the average man, but Silver is still within reach of the average working man. And had you purchased silver a year ago, you could have bought it for around $14 an ounce, which means if you had held on to it, you would have enjoyed over a 100% profit, and gold can’t match that boast. Dollar for dollar, silver offers the most feasible and profitable investment. I have seen some forecast that say silver could hit $127+ per ounce in the next year or 2. The thing about silver is you can use it as a exchange for normal goods. It is hard to measure grains of gold for a loaf of bread, but you could measure out a tenth of an ounce of silver. Silver coins, for the most part is about 70% pure silver, so beware when buying silver of what you are getting. Make sure you are buying .9999 pure sterling silver, and you can buy industrial silver in ‘shot’ form (shotgun ‘shot’ or very small round beads), which makes it easier to weigh out for fractions of an ounce. It is hard to take a 1 ounce coin and divide it into a fraction of an ounce.

    Silver is the where the truly smart money is and the most potential for profit is, but if you tens of thousands of dollars to convert to metal, then gold or platinum is a viable option.

    • Al Sieber

      Maranatha!Mark, coin silver is 90% silver and usually 10% copper for hardness. they use to cut coins in half and quarters, they called it 2-bits, and 4- bits. .999 is pure silver or gold. platinum is the Pt. group of metals, hard to sell unless you know the right people. it’s grey in color like lead. the main use is in catalytic converters,that’s why people steal them. they use to use copper. they use silver shot to lower the Karat in gold, or in a assay lab.

      • http://?? Joe H.

        Al Sieber,
        that is true for the coins meant for circulation, but the silver eagle is .999 pure silver and each at an ounce a piece! I have a total about 50 of them and they are the most beautiful coin ever made!!

    • James

      Maranatha M. You can buy small silver bars (1 oz., 5 oz. and 10 oz.), I would recommend that instead of coins. Coins always have a premium added because of the expense in making them. All one needs is the metal, not pretty pictures.

      • http://?? Joe H.

        James,
        The exchange rate for silver CIRCULATED coins comes to about 17 to 19 times their face value! that’s what they are getting around here at least. I won’t let any of my silver or gold coins go! that means a 58 dime is worth 1.70 to 1.90 in silver value. As far as purity, the silver eagle is .999 pure! I can buy them right now for about 32 dollars in uncirculated condition. If you can find a 1995W silver eagle it would be worth about 4000 to 10,000 depending on it condition!

        • http://?? Joe H.

          This just in my paper this morning: Buying circulated silver coins for 20 times their value!!! That means a roll of 50 dimes ( pre 64) are worth $100.00!! no wonder they are hard to find, indeed!!!

        • James

          Jow H. I’m just saying when push comes to shove, old gold coins won’t be worth any more than their gold content. I’ve seen uncirculated St. Gaudens coins advertised for upwards of $3000/ea. That’s about twice what its gold content is worth.

          • http://?? Joe H.

            James,
            that’s why they call it speculating. you are, in effect betting the market will go up higher than what you pay for them. I collect them so I have two reasons to own them. I also have a bunch of coins that are silver that I got in my change. Face value. you aren’t gonna get bars that cheap!

  • Bitter Libertarian

    **SIDE NOTE**

    Washington sources tell us that a Patriot Act renewal bill is scheduled for a vote in the House TOMORROW, Tuesday February 8.

    They will attempt to pass the bill, H.R.514, under “suspension of the rules,” which requires a two-thirds vote.

    Defeating this will only require 1/3 of Congress. That will buy us time, and time is what we need to educate Congress that the Patriot Act is unnecessary and dangerous

    **THOUGHTS**

    Quote of the Day: “If Big Brother (of Orwell’s 1984) comes to America, he will not be a fearsome, foreboding figure with a heart-chilling, omnipresent glare as in 1984. He will come with a smile on his face, a quip on his lips, a wave to the crowd, and a press that (a) dutifully reports the suppressive measures he is taking to save the nation from internal chaos and foreign threat; and (b) gingerly questions whether he will be able to succeed.” — Michael Parenti, Source: “Inventing Reality” (1986)

    • Al Sieber

      Bitter Lib., that sounds like our current president.

    • DaveH

      Bitter,
      I contacted my representitives yesterday and told them that if they cast their vote in favor of the Patriot Act they would lose my vote.

    • James

      Bitter L. Congress must pass bills by a majority. If 435 Representatives are present, 218 (50.1%) could pass it. A simple majority would constitute a quorum, so with 218 present, only 110 yeas are required to pass a bill (that’s 50.4%) or 25.3% of the entire House. There is no constitutional requirement for all members of Congress to be present, only a majority.

  • Paul Roth

    I rememnber when the Hunt Brothers of Tesas OIL Fame took over the Silver market At this time It is the Chase that now owns more than 50 percent of the gold maket. That is why the silver price is up.
    The only owns who should be in the maket for bullion are produces and industial users, others should stick to comsumer made with silvergoods and coins. ditto for other commodities

    • DaveH

      Correction, the Hunt brothers “attempted” to corner the Silver market. And they lost their butts. There was a lot of teeth gnashing going on in the media over that event. But then, they must sensationalize events. That’s how they make their money.
      Markets can be cornered only with the assistance and force of Government.
      If you are worried about monopolies, then get Government out of the Marketplace. Their role should be to protect us from the force of others, but instead they have become the forcers.

      For Individual Liberty, Personal Responsibility, Free Markets, and Limited Government — Vote Libertarian:
      http://libertarianparty.org/platform

  • Paul Roth

    correction Chase Bank owns rhe Silver 50 % of the londaon market for silver

  • Howard R Gray

    Cold gold bare metal the only real money? For practical purposes that could soon be somewhat of a truth. Those who can afford it should invest in it or in silver. None of this is news, the currency money game is in played worldwide. You don’t need a Bilderberger or a world government freak to remind you that there are “plans” for all of us and crashing the currency seems to be one of them. Now is the time to advocate the repeal or suspension of the legal tender laws. Yes I know it will cause a run on the dollar if it is announced directly but if it is just done quietly it will take time to resonate through the system. The alternative is the legal tender laws will self suspend Weimar style.

    Suspending legal tender laws would force the government to consider backing the currency with some real value not just fiat. Such a policy coupled with a balanced budget would soon put the wrap on public burglary by way of excessive government expenditure. The government is insolvent not bankrupt that is the problem, making it bankrupt is impossible and the politicians know this and they exploit it to the tune or trillions and trillions. Something has to give!

    Meanwhile buy gold and silver that makes eminent sense, it is real money not mere currency. Currency may be legal but you many not be able to tender it because it is no longer money.

  • http://charden@neo.rr.com Charles

    There sure are a lot of good postings on this subject, gold & silver.
    I think, I agree with 99% of them. Maranathal Mark has a point, most of us can`t afford gold and should buy silver is 100% right. He is also right, that silver has out prformed gold percentage wise.

  • Vijay R Asrani

    I think a lot more ingenuity is needed, in conducting our lives, than just hedging by buying gold. In India, where Gold has touched Rs 20,000/- for about 10 grams, and where women traditionally were gold ornaments including the auspicious Mangal Sutra, we have seen a sudden spurt of robberies taking place in broad daylight, houses are broken into, women travelling daytime are assaulted for their ornaments, earrings gold bangles, even hands are chopped off for the bangles, by robbers on motor cycles. I think the time has come to practice old frugal lifestyles, no showmanship, live simple unassuming lives, live frugally, reduce wants, reduce waste, recycle, get the maximum marginal benefit from any resource, live within ones means and share our resources and help those who are below us in the station of life. We have to pray and pray for those of us who are distressed, disadvantaged, downtrodden,disabled, denied, distraught, disoriented oppressed and suffering. We have to also pray for those who are holding the entire Earth and all its resources in ransom under various systems of beliefs, for “they know not what they do” We have also to pray, and be thankful and show our gratitude, for a million small small things in our daily lives, which we have taken for granted, like having enjoyed a good nights sleep, for a normal healthy functioning body and mind, for a roof over our heads, for meeting our daily needs, for a day of Peace etc. Rather than worry intensely about the future, and inadvertently precipitate foreboding thoughts, into the reality of the Now, it would be better if we intensely focussed on the Now and connected with the reality of the Now. You can contact me on Facebook. Best regards, Vijay R Asrani

  • Bus

    The only way to keep the bubble going is to encourage more people to buy buy buy. The Dollar is still king, have any of you tried to pay your grocery bill with gold or silver? As the economy improves and regular investments improve as they have in the past year, gold & silver prices will “stabalize”. Meaning those who spent $1,000/oz. will be holding on to their treasure until the next economic scare when they can convince some other fool that the dollar is about to implode.

    • JC

      Do you mean those dollars that keep appearing out of thin air that devalue all the other dollars that appeared out of thin air?
      It’s going to collapse and that is inevitable…

    • Denniso

      You’re right…we see this every 10 or 15 yrs. Tough economic times and the gold pushers come out again to hype and scare people into believing the sky is falling,and that the only safety is to be found in gold. What they don’t mention is that if the sky really does fall,gold will have no more value than a paper currency. Food,wood,shelter,real work,water,all will be traded or stolen for their real value. Gold will be a joke.

      To Vijay above, thanks for your input from India. You’re right about all the fuss over the future and the shiny gold bangles being stolen from women and homes…it’s what happens when we lose our basic values
      of real work and basic integrity…lost in the rising price of gold and the soaring stock market,w/ all the people who are riding it for the sake of profit,rather than getting out and actuall doing work that helps one’s community and country…

      • Denniso

        Bus and Vijay are right,certainly not J C…

        • JC

          No! …JC is wrong that fiat currency is produced out of thin air…
          It isn`t a mere product of a printing press with no intrinsic value.

          Denniso is starting Monday off the same way she finished last week…

        • JC

          “The chief duty of the National Government in connection with the currency of the country is to coin money and declare its value. Grave doubts have been entertained whether Congress is authorized by the Constitution to make any form of paper money legal tender. The present issue of United States notes has been sustained by the necessities of war; but such paper should depend for its value and currency upon its convenience in use and its prompt redemption in coin at the will of the holder, and not upon its compulsory circulation. These notes are not money, but promises to pay money. If the holders demand it, the promise should be kept.”
          – James A. Garfield
          (1831-1881) 20th President of the United States (1881)
          Source: Inaugural Address, March 14, 1881.

          • Al Sieber

            Right on JC, why don’t people do their research? good post.

        • Bruce D.

          Denniso are you saying flooding the market with paper money does not cause inflation? I think Obama feels the same way and that is why the Federal Debt Clock has Obama’s spending projected at 22 trillion in debt by 2015 unless someone takes away his credit card. There are many that do not stop spending until they are bankrupt. There is always something that is needed or desirable able to buy.

          • Denniso

            The great bulk of the debt is from the largest crash in our lifetimes,and tax revenues went down dramatically. Part,a trillion or so, is from the plan to stimulate the economy,and it’s working. Another part was the Bush tax cuts that also drained a couple of trillion or more from revenues. Another slice was Bush’s unfunded trillion $$ Medicare drug plan….and finally, the trillion spent on the wars started by Cheny and not finished and also not paid for. Obama’s piece is the trillion or so in the stimulus…not much compared to the rest.

          • Bruce D.

            Personally I think what you say about Bush is true. He set us up for the collapse and Obama is finishing us off.
            These are Dick Morris’s figures: Over the past two years, Social Security has risen by 12% and Medicare by 16%. By contrast, non defense discretionary spending has risen by 41% and welfare entitlements like Medicaid and food stamps are up by 54%.

            It is there that we should concentrate our cuts. To curb future deficits, you do need entitlement reform. But to bring down the deficit in the next few years, all you really need to do is roll back these insane spending increases with which Obama has saddled us.

          • Bruce D.

            I should have added that tax cuts have proven to stimulate the economy as productivity increases when people are allowed to keep more of what they earn. Business is more incline to expand also. The economy was in a free fall when Bush took office following Clinton. Obama’s main problem is creating an unsafe and unsure environment for investing with the expansion of government and regulations..

          • Denniso

            The economy was not in a freefall when Bush took office…there was a very mild recession,mostly just the typical biz cycle. Big biz is the most profitable ever for the last year,trillions in cash being held,yet they are not expanding or creating enough jobs. It’s true that if taxes are too high business and jobs can be stifled,but that was hardly the case in Clinton’s terms. We had the best job growth and expansion in decades…Bush cuts taxes below a reasonable level and we start to see the economy,other than housing,slow down. If business needed the tax cuts to start hiring,then why do they have trillions in cash and they’re not hiring? They didn’t need the cuts, and the deficit would look better w/o them.

            We have a large country…we have the largest military ever in the world’s history…we have been fighting 2 wars for a decade…we are the only superpower. We can’t run this sort of enterprise on some of the lowest taxes in the world…it’s not working.

          • Bruce D.

            Clinton’s recession from the failure and excessive debt of the dot com businesses would have been a lot worst if it was not for the Bush tax cuts. Bush gave business the confidence to invest. Businesses are not spending money and expanding now because of Obama’s war on business and stated intentions to redistribute. Obamacare and other uncertainties of over regulating cause businesses to become cautious until they understand the ramifications. More business may have to more out of the country to be profitable under Obama’s watch. He is doing nothing to reverse that trend. He is only making it worst.

          • Denniso

            Obama’s war on business? Really? So he has had former wall st bankers in his cabinet and now has another as chief of staff,and you call it a war on biz? What he did was castigate wall st and the entire financial sector for sending us into the great recession w/ their excesses and fraud. He,if you remember,lent billions to 2 auto companies and they are now back on their feet and paying the money back to us. War on biz? Maybe because he didn’t turn the entire gov’t over to big biz as Cheny/Shrub did?

          • JC

            The economic situation that Bush inherited was already bound for a fall and was the direct result of the Clinton administation with the participation of Barack Hussein Soetoro or kenyan or whatever he is…when the took all regulatory restrictions off of Freddie Mac and Fannie Mae in their liberal plan to allow everyone to own a home. How Liberal of them and how dysfunctional of them at the same time.
            Bush (No I didn’t like him either) was speaking out against this flawed liberal policy at the time.

            Get it straight Denniso…the economic collapse was engineered and it was engineered by “liberals”.

          • Denniso

            OH, the evil liberals!!! I guess you think that all the biggest heads of the largest banks and financial institutions are liberals? Or, would you say they are totally innocent in the great crash?

            J C(I assume that stands for Jesus Christ),you really need to be less blinded by your hatred of so called liberals. If you were you might find some truth somewhere and be able to think more clearly,something I wish for all people.

      • Al Sieber

        Denniso, in 2001 gold was $250 a oz.,right now it’s $1351, what’s the reason? the American people sure aren’t buying it, but foreign Govts., are, and foreigners are, why?

        • Denniso

          The American people aren’t buying gold? Really…I think that would be news to the gold pushers. India is also buying gold and they have a few hundred million people in the upper and middle class. Much of the gold bought there is for jewelry…the indians wear lots of gold.

          • Al Sieber

            Denniso, the American People are doing the opposite, they’re selling all their scrap gold to gold buyers who screw them.

          • Denniso

            Many people,many rich,are buying gold as a hedge against the stock market,where much of their money is. I know of several doing exactly that. It’s the poorer people who are trying to cash in by selling their scrap gold,because they need the money. If there was not a huge demand for gold then it would not be up at 1300$. The dollar is stable w/ the worlds major currencies,so the high gold price isn’t because the dollar has plummeted,as many are saying incorrectly…rather,demand is up here and globally.

          • DaveH

            For those who don’t know Denniso makes up facts on the fly, here is a website that tracks exchange rates for various currencies. The following page shows that in January 2009 the Australian dollar could be purchased for 67 cents USD. In December 2010 the Australian dollar cost 99 cents USD:
            http://www.x-rates.com/d/USD/AUD/hist2009.html

            You can change to Canadian Dollars and see a similar situation.

          • Denniso

            First, why did DaveH pick Aus and Canada? Because they didn’t suffer nearly as much as the rest of the world did in the great crash…because, Canada at least, has very tight gov’t controls over their banks so their economies have remained more stable. Even with the modest fluctuations,if you look at more than 1 year they are much less striking. Beyond that, I’m afraid that Canada and Australia don’t count as major currencies that mean much…about 60 million people combined,about what our two largest states have. look at the Euro and the pound, and we look perfectly fine. Australia and Canada aren’t going to take over the leadership of the global economies because their currencies are slightly stronger than ours for now.

            Now, DaveH,who loathes gov’t regulations, has unwittingly used Canada as an example…one of the most regulated when it comes to their banks,which is why they didn’t collapse the way we did. But no, we need even less regulation,right Dave?

      • DaveH

        Actually, Gold would have continued climbing far longer than it did in the 1970s, except that the man who Liberals love to hate (Reagan) got the money creation under control.
        Sure that same thing can happen now. The people can wise up, shrink Government, and demand that the Federal Reserve back up its paper money with hard assets. Then the price of Gold and other hard commodities probably would shrink back somewhat, because wise investors value their investments based on projections of what the future holds, and if that future changes they can lose money.
        But I see absolutely no reason to believe that people have wised up in sufficient numbers to reverse the current trends. I am hopeful though.

  • Paul THe Great

    GOLD WILL BE USED TO BUY HOMES AND BUSINESSES. THERE WILL ALSO BE A MRRKET FOR EXCHANGE TO SILVER WITH IT.

  • Carlucci

    I agree. Flaunting wealth with fancy expensive jewelry, cars, etc. will soon become a big mistake here in Amerika. When my husband and I lived overseas, we always dressed way “down” when traveling. We would leave the good stuff at home and only wear cheap plastic Casio watches, and carry our i.d. and money in small pouches that fit inside our shirt – no purses to carry or wallets in the back pocket. Friends of ours would foolishly do just the opposite when traveling and flaunt their Rolex watches, diamond rings, carry a designer handbag, etc. Needless to say, they got mugged and their pockets picked. If your passport is lost or stolen in a foreign country, it is a big hassle to replace it, plus it puts a crimp in your travel plans if you are moving from country to country.

    I agree with Mr. Asrani. Be frugal and careful, and be thankful for the blessings you do have – health, family, friends, good neighbors, a roof over your head, food, etc. You can’t put a price on any of that.

    • Bruce D.

      You are very smart Carlucci. You are only asking for trouble when you take expensive jewerly with you when traveling. “Out of sight, out of mind.”

    • DaveH

      Wouldn’t it be better though, Carlucci, if we could take the necessary steps to restoring morality in this country, so that people could enjoy their hard-earned rewards without coming under the greedy gaze of those who would take those rewards?

    • http://?? Joe H.

      Carlucci,
      while I agree with all you say, could you do me a favor nad not put the k in America?? Bugs the hell out of me!!

  • JJ

    Denniso you haven’t been right about anything that you have said. You sound as if you have been educated in our liberal American college system. Which by the way is 100% worthless when it comes to a free market system.
    Your wrong about the reason we went off the gold standard, your not even in the ball park. You don’t know squat about the real propose of gold and silver, and no its not so that you can wear it. You actually want to bring cave men into this debate.

    “What most people don’t understand is that money is whatever it is that is agreed upon by societies and gov’ts.”
    You don’t have the basic concepts of any thing in this article, but you feel like you can see where most people wrong and you are ready to teach. I have never seen a society print money, it is always the gov’ts that spend more than they have.

    • Denniso

      I don’t recognize your name,but why don’t you tell us why we went off the gold standard?

      My guesses for what you will say;

      1.To establish a one world gov’t
      2.To rob everyone of their gold
      3.To let foreign gov’ts control us
      4.To let the UN take over the country

      • Al Sieber

        Denniso, we went off the gold standard so we can print up as much Fed. Notes as we needed, read the coinage act of 1792. we can thank Nixon for that.

      • DaveH

        We can’t possibly educate you, Denniso, with our short “sound bites”. If you are really interested in learning rather than arguing, please try Mises.org, or Cato.org, or Reason.org to learn more about economic realities.

        • Denniso

          Sure, all good rightwing anti gov’t groups…no thanks.

          • DaveH

            Denniso,
            If you want purposely to remain ignorant, fine. But why do you get on this board trying to convince others to be ignorant? Misery loves company?

          • Denniso

            You pick rightwing groups and sites to read and follow,and you think
            you’re learning? You can’t imagine they may have just a bit of bias and mixed in w/ vested interests? Like the gold pushers all over rightwing ‘news’ and talk radio?

          • DaveH

            See, right there you are showing your ignorance. Those aren’t Right-Wing websites.

          • http://?? Joe H.

            DaveH,
            How dare you suggest a site other than Puff n Toke????

          • Denniso

            Sure, the Cato institute is right down the middle, no bias at all…

  • ONTIME

    During the first Iraq conflict under Bush one, prior to the conflict it was easy to tell that we were going to step in and put a stick in Saddams bycycle spokes, gold was in the high $200 range, so for the first time in my life I took the risk and invested around $25K of our hard earned money and my wife trusted me. The selling point for me was almost $400 and it became the risk worth taking,it was the basis for further more founded risk and the building of a solid portfolio. Since then I have not made that risk again but have exploited it in other ways that are just as profitable. Fear plays a great part of market force and one’s gains are anothers loss and you can be on the losing end as well. If you have the money to risk think hard about how you want to invest and use time as your rule to start and stop, just like a sucessful gambler there is a time to end and another place to start, don’t let greed do you under.

    • Bruce D.

      Unfortunately for you $400 an ounce for gold was the buying point for many others. Many portfiolios were destroyed in the stock market in 2008 and trillions of dollars lost. If yours was not you got lucky. The market at best is an educated guess and 85%, if not more, over a given period of time guess wrong.

  • JC

    Some commentary from a friend:

    Paper tender is a form of contract. Contracts are only as good as the word of those making the promises to honor the contract. When all parties voluntarily agree to and fulfil the terms of the agreement, business and trade benefit. Paper currency can be an integral part of a strategy to trade on one’s own terms, and its use has been proven beneficial to the early colonists who endeavored to trade honestly among themselves for their mutual benefit. However, the debasement of currency whether hard or soft is a heinous crime as it robs from all the holders of the currency. Strict rules for its issuance are required — there can be no power to simply print up more money without some form of backing. Non-perishable commodities like precious metals, water, and labor are all sufficient backing for currency — consumables are not. But when fiat currency (IOUs) cannot be refused in lieu of cash (real money) then we are being forced into a contract involuntarily with no recourse or redress for mismanagement of the currency. Gold and silver were to prevent such theft. However, if the government were to issue its own notes, like they do treasury bonds, for its own use, and issue those notes interest-free, AND uphold the right of the people to use gold and silver for trade and to have a choice to accept the paper currency or not, then we would have a fairer playing field in which inflationary credit and stable cash can both be used in the marketplace. No income taxes would be required, as the government could print up its own money to pay for public services and the currency’s value would float freely against gold and silver dollars (or a currency backed by a breadbasket of non-perishable commodities). The government would have to manage their credit more efficiently to make sure its value stays strong. By making gold and silver illegal for trade (which is essentially the case today) and forcing us all to accept fiat currency backed by interest-bearing treasury bonds (IOUs), the fate of the economy lies with a few men who become masters of all those to whom the rest of us are indebted without choice, without recourse, without any power to demand the promises be kept. This is servitude, and through this process, the labors of the people are stolen to pay an unpayable debt to the very guys that issue money, creating it out of nothing, to lend to us at interest — and since all money is created this way, there is never enough to cover the interest as well as the principle, so we must borrow more. Banks confiscate the property of those that cannot pay, and the banks acquire massive wealth through a trick as they have not risked anything but merely wrote out a check for money that did not exist until the check was written. — E Archer, NYC

  • dr reality check

    While Switzerland is a much wealthier country, investing in a country other than the United States is betting against yourself. Our country may have self destructive policies, but some people (Like Ron Paul)were elected who intend to fight this, and in 2012 they’ll control both houses of Congress (the White House is iffy; the Republicans don’t have a viable candidate at this time). Don’t give up on your country; we’ve survived far, far worse many times and come out ahead since 1776. Keeping to the original vision of Washington would be a good start.

    • dr reality check

      Hey, Dr. Reality Check, I know you’re having fun, but are you aware that you’re talking to yourself?

    • Bruce D.

      Most have heard the saying -”Don’t put all your eggs in one basket”. It is true for eggs and it is true for money. Do not confuse Patriotism with bad poor money management.

  • http://charden@neo.rr.com Charles

    Not to change the subject the LEFT wing intrnet Huffington Post are selling out to AOL.The editor of the news will still be Arianna
    Huffington the cofounder of the Huffington Post. THis will give her a larger range to spill out her lies. Her Co. was in trouble last
    year after loosing 26% of its revenue and with less people signing
    up to read their garbage. Shame on AOL,which must be another Left- Wing org. I just wonder if our boy, George Soros, had any thing to do with it. He does back many other left- wing media groups.He just gave one millon dollars to the Org.that fired Juan Williams, who also was a Fox news contributor.People are starting to find out more of these left -wing media org aren`t telling the truth.They spill lie after lie
    to get their agenda out. I for one, will be boycoting AOL.

    • Richard

      I was shocked to receive a couple of emails from the White House in early 2009 as I had never written them until I discoved that the White House had gotten my address from AOL. Then it all made sense.

    • DaveH

      AOL has been Liberally bent since their inception, Charles.

      • JC

        Which entirely explains their recent purchase of the Huffington Post.

  • Paul Hickman

    I don’t trust any politician in DC before the last election, how would I know if there is any gold left in our coffers?

    • Al Sieber

      Paul, I heard some rumors about a year ago that the gold in our coffers was gold plated tungsten, tungsten has the same density as gold. so, why won’t congress let us audit the gold in Ft. Knox?

      • Denniso

        Just a bit curious, how do tungsten and gold have the same density if they are different elements?

        • DaveH
        • DaveH

          Tungsten’s density at room temperature is 19.25 grams per cubic centimeter.
          Gold’s density at room temperature is 19.30 grams per cubic centimeter.
          A standard size gold bar is 7″ long by 3″ wide by .625″ thick and weighs 27.5 pounds.
          A bar the same weight made of tungsten would be 7″ long by 3″ wide by .627″ thick. Barely discernible.

          • Denniso

            So people can create fake gold and scam others…maybe gold then isn’t so trustworthy after all as an investment.

          • JC

            That being said, many people can copy or counterfeit paper scrip…maybe that’s not such a good material for cash?

          • Denniso

            Most people don’t get stuck w/ a major investment in counterfeit money.

          • JC

            The entire country has been stuck with an investment in counterfeit money for a long time now.

  • Al Sieber

    Bob Livingston, the first 3 or 4 paragraphs in this article says it all, after reading a few negative posts.

  • American Patriot

    A vote on the “PATRIOT ACT’ is tomorrow. This is a big attack. “BIG ATTACK” on American’s Liberty’s and Rights. Please call your local Representative and demand that they stop this attack on the American people. This is a blatant attack on gun owners and their rights as well. We all need to let them know they will “NOT” get away with this. Or, any other piece of legislation that strips the rights and liberty’s away from the people. “Washington D.C.” “We The People” are watching you. People! it appears that the GOP is all for this bill to be passed. GET THE WORD OUT!!!

  • http://charden@neo.rr.com Charles

    Hey Denniso,
    I`m glad you jumped over to this blog. I kind of missed you. Your the only one I know more stupid than me. Ever where you go you kind of get beat on. I get a good laugh out of you, so please stick around.

    • Denniso

      I don’t get beat up on…that’s like saying if your arguing w/ a pack of street kids and they yell and bitch and call names, that your getting beat up by them. No, the rightwing wackos here can’t stand to think for themselves,because they’ve spent their lives following moron
      demagogues like Limbaugh, and they become incensed when I and a few others point out their hypocrisy and sometimes stupidity. Most just hurl insults and namecalling and don’t bother w/ anything constructive, rather like you.

      • DaveH

        The problem is, Denniso, that you aren’t intelligent enough to know when you’ve lost the debate.

        • http://?? Joe H.

          DaveH,
          I read your post and I couldn’t help getting a vision of denniso with an arrow through his leg and saying ” I don’t know why but my leg hurts!!!”

        • Denniso

          DaveH…I don’t usually lose debates to simpletons and undereducated spewers of hot air, which is true for most on this site…there are a few exceptions. At times you can be seemingly intelligent, and then you break down into cliches and simple fixes,and often all insult and smear.

          Almost every rightwing person I’ve ever debated over 45 yrs throws out simplistic arguments and terms/phrases, and when that doesn’t win their point,as it almost never can,they fall back on personal attack and anger/threats. When a person like that attacks me or uses bigotry or hatred, I will return the attack. Many liberals won’t because they see it as pointless and a waste to argue w/ people like that. I’m not your typical liberal.

          It’s also very typical for rightwing blowhards to have no education in the area they are so absolute about…certainty,absolutes,black/white,good/bad,simplistic, are all hallmarks of most of the hardcore rightwing.

  • Richard Pawley

    I was surprised to get a couple of emails from the White House in early 2009 until I discovered that they had gotten my email address from AOL. These days it’s hard to know where government ends and business begins. Bob is correct in that gold is not in a bubble, less than 2% of the citizens of the US have ever even held a gold coin in their hands. I suspect that some of the 70,000 MILLION DOLLARS a month the Treasury is creating out of thin air is being used to drive gold down and the stock market up. The owners of the FED have software which can be used to drive the markets (they have admitted it but said they would never use it) and one of my sources says that for every CEO buying stocks 1600 ARE SELLING! Another source says that he went to various places that were buying gold on the west coast and those buying were mostly oriental and those selling were all Caucasian. Will gold go up a three or four hundred dollars more? Undoubtedly? Will it double or triple before it’s outlawed? I do not know. But I do know that food and everything else (maybe not houses) are going to more than triple. Maybe not this year. Some say by 2012. I don’t know when this will happen but it seems inevitable. Better to be years to early than one week to late. The sub-title of my last book (THE LAST DAYS OF THE LATE GREAT UNITED STATES was the “and the Great Famine that Followed”). Again I can’t say the month and the year this will happen but freeze dried food will last for decades so if one has a place to store it so how can you lose? Do we still own any of the gold in Fort Knox? I do not know. I have heard for years the answer is “No”, but just two weeks ago I heard this from someone I consider a most reliable source. I’ve listened to what Dr. Willie has to say for years. You might find what he has to say fascinating too. Just go here: http://www.kitco.com/ind/willie/jan262011.html
    One further thing. Switching some of your excess funds to foreign currencies might be wise if you know when to get out and put your money into something real, but as I pointed out in my book, what is coming will affect every currency on earth, and no one will be exempt. Many thousands are preparing and everyone can do something. Remember it is a major mistake to do nothing because you cannot do a lot. Dum spiro spero!

    • James

      Richard, It’s government deficit spending that drives the price of gold up.

      • DaveH

        That by itself wouldn’t increase the supply of money, James. It is only when the Federal Reserve monetizes the debt that the supply of money is increased.

        • Denniso

          Ever since the great depression and the largest economic boom ever after WW 2, the Fed has used the money supply as an economic tool to deal w/ the ecnomy…sometimes expanding it and sometimes shrinking it. It’s not a boogeyman…

        • James

          DaveH, Deficit spending IS monetizing the federal debt.

  • Al Sieber

    Good article Richard, thanks for the link.

  • http://charden@neo.rr.com Charles

    Thanks Denniso,
    I just try to take up for you.You know the way you think, you don`t
    stand a chance.You need to do some homework and find out what is really true and what isn`t. You might find yourself thinking more
    like the majority on this site if you found the truth. The TRUTH will set you FREE. Denniso, your a good sport. We all love you even if you are goffed up.

    • Denniso

      It’s the way it goes,isn’t it?I think I have way more truth than most on here do. And I’ll have to disagree on the ‘love’ part,most here express nothing close to love for me.

      • http://?? Joe H.

        denniso,
        Or is this eyes? I don’t think anyone here actually hates you, more like feeling astute pity for you, nothing less!

        • Denniso

          Save your pity for yourself and your buddies,the ones who need help thinking. I get my reward in challenging some of the dumbest comments
          I’ve ever encountered in one place, and trying to get some of you to actually think rather than just spew nonsense and lies that you all pick up from your rightwing leaders…it’s all so predictable and similar,all I have to do is listen to your buddy Limbaugh for 10 mins ea morning to see what the 30 million of you will ape later in the day. All repeating the same old tired cliches and mantras in unison. That’s what’s sad,that most of you ‘think’ exactly the same way…so little creative or independent thinking.

          • BobbyB

            Pretty amazing isn’t it? So many people repeat the OPINIONS, repeat OPINIONS of a hand full of people with absolutely NO qualifications for anything.

          • Denniso

            You’re right. It’s the clear danger of the so called new era of democratic information…cable channels,internet sites of all sorts,some good and some ridiculously bad. Hot air spilling daily from no nothing’s like Limbugh w/ essentially no education. And he doesn’t just express his lofty opinion,he outright lies. He’s very good at it,at least to the majority dolts who love him like a cult leader. Michael Savage is also more than just civil opinion. He’s actually sick and feeds the sick feelings and hatred of his followers.

            No wonder we have such division in the country…those people and many more are stoking it for pure profit and power.

          • http://?? Joe H.

            Denniso,
            Well, that shows how much you know!!! I haven’t listened to Limbaugh for at least a month or longer!!! I form my opines on what I read from articles, listening to the news, books, even what I see written here! Of course, I fact checkwhat I question!!!

          • Denniso

            Boy,I’m impressed,you haven’t listened to big mouth Limbaugh for a month! I would guess you couldn’t say the same for Beck,Hannity,
            Savage,O’Reilly…

          • http://?? Joe H.

            Denniso,
            Wrong again!!! I’m too busy lately to listen to any of them!! I post here for a few hrs each day and that is about it! I listen to the BBC and a couple of other news channels while on here!!! I can honestly say I owe nobody anything, My bills are paid, and I’m quite comfortable! I must be doing something right!!!

  • http://charden@neo.rr.com Charles

    Denniso,
    I don`t know what the Hell we would do with out you. You can
    post more words and not say a darn thing. Your either stupid or just plain daumb,or both. I hope you stay on here for ever, because it
    shows just how you left-wing Loons think. NOTHING!!! NOTHING!!!

    • Denniso

      Correct me if I’m wrong,but I haven’t seen you say anything of substance yet…and actually it’s the rightwingers who are the ‘loons’.

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