WHY THE BACKPEDALING Tommy-boy (roflmao !) ?
...I've never seen anyone go backwards so fast...
You are a walking, talking contradiction Tommy-boy.
t4texas caught on - re:
". i have seen lots of your postings, and you seem to have a lot of different types of gold holdings. i believe in free speech and especially yours, but if i thought gold were going to be a bad investment i would sell it. why do you still own the gold stuff you have, yet you say it is a bad investment. "
...bingo
Tomass; How could you be such a longtime Goldbug and have learned so damn little & have so much so wrong - as far as industry basics etc ?
...this is the fastest "backpedal" I'ver ever seen - now who said "chihuahua's couldn't run backwards with those little legs (VBG) ?
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Tomass says:
["I admit that I have just got worn out and worn down with the gold market. It's better to invest in things that people really use. But I have still got maybe $40,000 in gold bullion and stocks, plus PAAS, so I guess I must consider it prudent to hold on just in case the whole world suddenly wakes up to the fact that the dollar has been massively overproduced. I just don't buy the argument that a huge bull market in gold is a sure thing.
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...worn out & worn down ?
How about "dazed & confused, or dumb & dumber" ?!?!?!
Tomass; nothing personal, but for a self-professed Longtime Goldbug, who even more importantly has played Mr. Anti-Gold Critic here of late over our move to Gold... your recent posts and your 180 degree backpedal today; show that you are completely & utterly clueless... and your SOUR GRAPES are clearly seeping out of your every pore & orfice...
With this series of faux pas after faux pas & with today's backpedal - your threadster stock just got de-listed today Tommy-boy... the chihuahua-clown emporeror wannabe - has no clothes....whodathunkit ?
How can you post great articles like this one I'm highlighting below & "not" get the GOLD story & play right Tomass ?
How can you post & read this article & then say what you say !?!?
...actually I know "why" (VBG)...and so do a few others...
Concerning your earlier pronouncement of :
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To:fpembleton who wrote (93594)
From: Tommaso Sunday, Aug 12, 2001 9:22 PM
View Replies (4) | Respond to of 93653
I don't know, but if companies can produce gold for $180 an ounce and sell it for close to $300 an ounce, there's a pretty good incentive to go on producing it. And that is going to put a cap on the price.
Maybe you could spell out one more time where all this speculative demand for gold is located. I mean, who holds what kind of unhedged contracts against what. I keep hearing of these huge gold short positions but nothing ever happens. To me, it seems like it may just be another of the myths attached to gold. The reality is $180 an ounce.
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You failed to conceptualize the reality of what has REALLY happened to global Gold production - per this article posted by George Cole:
[Gold Decline in S. Africa to Accelerate Under New Contract
By Antony Sguazzin
Johannesburg, Aug. 12 (Bloomberg) -- Gold producers in South Africa, who mine one of every five
ounces worldwide, said a labor accord reached this month will accelerate a decline in output from the
current 47-year low. ]
..A 47 YEAR LOW IN GOLD OUTPUT ! - hello again Tommy-boy ?
Anyway; these highlights from your Phonecian Article by Adam Hamilton are MUST Re-READ concepts for this market - great article & thanks for posting it.
From Adam Hamilton:
[..."Some, including ourselves, believe that Rubin’s strong dollar policy went far beyond soundbites, fiery rhetoric, and occasional currency market interventions. A mountain of evidence is accumulating strongly suggesting that part of the US strong dollar policy in the mid- to late-1990s was a concerted US Treasury led effort to place a de facto cap on the price of gold. We have written many past essays and newsletters on the ever-growing and solidifying case pointing to official US government involvement in managing the gold price down, contrary to US law.
Gold is the ultimate currency. For six millennia it has been the king of commerce, the ultimate asset. This is because gold has internationally recognized intrinsic value in and of itself. Gold is valuable because it is gold. It does not represent someone else’s promise to pay like fiat currencies and its value depends on no government to maintain. Gold has been sought after aggressively by virtually every nation and empire in world history, including our seafaring friends the Phoenicians of Tyre.
Gold is the timeless arch-nemesis of fiat currencies like the US dollar. Gold is the barometer by which all fiat currencies in world history have been measured. When a paper currency begins to lose value relative to gold, the gold price in terms of that fiat currency rises. If a government prints too much paper money, the value of each paper monetary unit in circulation begins to decline as relatively more money chases after relatively fewer goods, classical inflation. As this inflation from government printing of money becomes manifest, the gold price in terms of that fiat money begins to rise. Usually a short-time later if the government has attempted to peg its fiat currency to gold it has to abandon that policy, which is known as a “devaluation”, as it declares gold will now be worth more fiat currency units per ounce. In reality, however, the fiat currency is simply worth less as gold’s real value is remarkably constant through millennia of history.
Gold, throughout all financial history, has always been the ultimate judge, jury, and executioner of fiat currencies. If fiat currencies are expanded too aggressively, the gold price rises and ultimately vetoes that fiat currency built on nothing but confidence and promises.
Perhaps the Rubin strong dollar policy was partially or substantially built on the fraudulent premise that aggressive dollar money supply growth could be masked by capping gold. If gold did not rise, global investors would lose their traditional warning sign of impending fiat currency problems. If gold did not signal a weakening US dollar through inflation, perhaps foreign investors would keep buying dollars and keep plowing them back into the US markets, the best of all worlds for the Clinton Administration politically.
Thus, the “strong dollar” policy was born and nurtured. Through incessant political rhetoric, strategic currency interventions, and most probably official gold price suppression, the US dollar launched on a mega rally which has yet to be significantly broken, even with recent weakness in early August.
Unfortunately for the United States, US investors, foreign investors, and countries and companies that do business with the US, the dollar is enormously overvalued and will have to fall. A dollar bear market or possibly even a dollar crash is coming, there is no doubt about it....Some, including ourselves, believe that Rubin’s strong dollar policy went far beyond soundbites, fiery rhetoric, and occasional currency market interventions. A mountain of evidence is accumulating strongly suggesting that part of the US strong dollar policy in the mid- to late-1990s was a concerted US Treasury led effort to place a de facto cap on the price of gold. We have written many past essays and newsletters on the ever-growing and solidifying case pointing to official US government involvement in managing the gold price down, contrary to US law.
Gold is the ultimate currency. For six millennia it has been the king of commerce, the ultimate asset. This is because gold has internationally recognized intrinsic value in and of itself. Gold is valuable because it is gold. It does not represent someone else’s promise to pay like fiat currencies and its value depends on no government to maintain. Gold has been sought after aggressively by virtually every nation and empire in world history, including our seafaring friends the Phoenicians of Tyre.
Gold is the timeless arch-nemesis of fiat currencies like the US dollar. Gold is the barometer by which all fiat currencies in world history have been measured. When a paper currency begins to lose value relative to gold, the gold price in terms of that fiat currency rises. If a government prints too much paper money, the value of each paper monetary unit in circulation begins to decline as relatively more money chases after relatively fewer goods, classical inflation. As this inflation from government printing of money becomes manifest, the gold price in terms of that fiat money begins to rise. Usually a short-time later if the government has attempted to peg its fiat currency to gold it has to abandon that policy, which is known as a “devaluation”, as it declares gold will now be worth more fiat currency units per ounce. In reality, however, the fiat currency is simply worth less as gold’s real value is remarkably constant through millennia of history.
Gold, throughout all financial history, has always been the ultimate judge, jury, and executioner of fiat currencies. If fiat currencies are expanded too aggressively, the gold price rises and ultimately vetoes that fiat currency built on nothing but confidence and promises.
Perhaps the Rubin strong dollar policy was partially or substantially built on the fraudulent premise that aggressive dollar money supply growth could be masked by capping gold. If gold did not rise, global investors would lose their traditional warning sign of impending fiat currency problems. If gold did not signal a weakening US dollar through inflation, perhaps foreign investors would keep buying dollars and keep plowing them back into the US markets, the best of all worlds for the Clinton Administration politically.
Thus, the “strong dollar” policy was born and nurtured. Through incessant political rhetoric, strategic currency interventions, and most probably official gold price suppression, the US dollar launched on a mega rally which has yet to be significantly broken, even with recent weakness in early August.
Unfortunately for the United States, US investors, foreign investors, and countries and companies that do business with the US, the dollar is enormously overvalued and will have to fall. A dollar bear market or possibly even a dollar crash is coming, there is no doubt about it...
...In economic theory, when a country faces economic problems as great as the United States and official interest rates are slashed, a currency should be sold off...
*** [everything anyone needs to know about what is coming in the near future for the markets is in this paragraph below & it shouldn't take a Nostradomous-esque call to anticipate it coming...THIS reality of when, not if... concerning a dramatic US dollar correction, underpins the primary reason for accumulating the gold stocks imo. ]***
...When the dollar finally faces fundamental reality, it will be sold off. The critical foreign capital that has bolstered the US dollar by flowing into the dollar and US markets will reverse at some point. Foreign investors, slowly at first and then with increasing speed, will recognize the incredible systemic post-bubble stresses still inherent in the US economy, the terrible US slowdown which will most likely soon be a full-blown recession, and the imploding US equity prices. When these foreign capital inflows, which were approaching record levels early this year, reverse, foreigners will first sell US stocks and bonds, putting heavy downward pressure on Wall Street. Then the dollars earned from selling foreign-held US investments will be sold for the home currency of each foreign investor, driving down the price of the dollar.
*** [ another important concept here - that the market is "betting" that the rate cut's will work...and missing the point that bubbles don't bottom a valuation multiples still 50% above where Greenspan first uttered - "irrational exhuberance"....ie: "It's STILL the VALUATIONS - stupid"] ***
...we made the heretical assertion that rate cuts do not matter in a post-bubble environment. Until the speculative excesses of the previous bubble are painfully worked off, we said, rate cuts would probably prove futile. With equity valuations remaining at nosebleed heights, in early January we predicted the markets would sink lower, even with the popular investor fervor over the new Fed rate-cutting regime. We backed up with graphs and further analysis our brazen assertion that rate cuts are meaningless in post-bubble environments in our “Bubbling Interest Rates” essay published the week before the second Fed rate cut of 2001 in late January. "]
...this article really encompasses evertything that we've been talking about for months here on this thread... simply an excellent article !
Here's a final point they made that is also something we've talked about here :
["Another reason we believe the dollar pivot point and turn south is rapidly approaching is the growing chords of discontent echoing among the power elite in the United States."]
...BINGO !
We've just had America's CEO's say the US Dollar is 20-30% over-valued ...GM's CEO just last week addressed the severity of the situation...it's happening... the US can not ever "verbalize" a weaker US Dollar policy & they won't; but bet your ass - they're orchestrating a gradual, controlled descent as we speak....guarandamnteed ~ and GOLD wins in that scenario.
...and here's another final comment from Halmilton's article:
["there is not a single important fundamental perspective that does not show the US dollar woefully overvalued by virtually all historical standards. In any market, any country, any era, anywhere, investments that become fundamentally overvalued to extremes ultimately regress to their mean valuations, which are much lower. There has never been an asset or investment in history that has remained overvalued indefinitely. Neither will the dollar. Rock-solid fundamental financial truths time tested in the fire crucible of history will not be shattered by a magical dollar."]
..."not a single important fundamental perspective that does not show the US dollar woefully overvalued by virtually all historical standards"
- DOES ANYTHING ELSE NEED BE SAID ABOUT - WHY GOLD & WHY NOW ?
...this is a historic convergence of secular & cyclical opportunity - HISTORIC...as this level of short/derivative positions has never existed & if Greenspan loses control of the ball for even one possession here - GOLD could go ballisitic ~ , but we won't need "ballisitic" to make "Big & Easy Money" again... as $350 gold & XAU 125-150 have been the upcycle norm, occuring 5,6 times alone in the last 15 years.
I don't know about the rest of you; but I'd settle for XAU 125-150 & $350 gold (VBG)
.... but, ohhh the dreams of $800-$1000+ GOLD in a derivative meltdown ~ |
