No offense to Jakegint, but gold is for 2nd class morons. The type of people who buy gold call themselves “bugs” and stockpile food, waiting for the end of civilization. In their heads, they imagine a world, not too much different from the Lord of the Rings, where the Federal Reserve are evil monsters trying to feast on the flesh of the righteous humans. These miscreants make stupid videos and talk all day long about fiat currency and how China is going to stop buying our fucking bonds.
Well, I got news for the Peter Schiff crowd: that shit will NEVER happen, at least in your lifetime—unless of course the Chinese are into afflicting grave depression upon their populace, which in turn will lead to an armed revolution.
Ladies and idiots, America has the world by the short hairs. As a result, buy the dips, sell the rips.
The banking crisis has been put on hold, for at least another 3 years. So, you might as well get used to not running out of food or the dollar going “Zimbabwe.”
In short, gold has been going up due to asset allocation. Money managers and sovereign wealth funds have been buying the yellow metal, mainly because of the idea that it is an alternative to paper money. However, in reality, the only viable purpose a gold brick would serve during a financial collapse would be to bash in your neighbors skull for stealing your crops.
Some of you are short gold, via [[DZZ]] or [[DGZ]] . I can’t get into that sort of thing now. Stocks, bonds and commodities are irrational these days. In my opinion, it makes little sense to get in front of the “Gold Bug Express.” However, just know, it is filled with idiots.
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***** 5 Gold Pebbles
I am riding DZZ with tight stops. Gold will feel some short term pain.
These must be fictitious wins, then, filling my overflowing coffers?
Hold on, let me touch them….
Hmmm… seems real enough. Maybe I should convert them into teeny tiny cups of cawfee?
Some day, perhaps. Just not yet.
Vince Lombardi said it best: “Just win, baybee.”
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i once made a small fortune in athm. however, they evetually went bk.
Great call; but gold is gay.
Contrary to TA’s opinion (he was also wrong, btw), this doesn’t annoy me in the least. It fills me with confidence. After all, if the Fly is shitting on PM’s, then there’s still upside, no?
First, recall — I called the selloff to within a couple of days. I am today at 40% of my previous gargantuan win positions and the rest is hedged with sold calls (not to mention the TZA, DUG and 250 SPY 110 puts, all documented).
Second, be aware — When you & TA finally buy aforesaid “idiot metal” I sell.
How’s that for an arrangement?
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That will never happen. So go play with your fucking gold bricks.
You did a great job calling a top in Gold, the jury is out on your market call
BTW: You don’t sound annoyed at all – LOL
This is “New York” normal, fuckface. Get used to it.
And being up 24% in one day on my 250 SPY puts says — “you’re wrong, I’m right.”
Again.
That, you should be used to by now.
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You shuda sold Dec covered calls and bought Dec puts on your gold stocks when gold hit $1220. I did, and I am relishing the decline in gold.
No tree grows to the sky.
Duh.
Trouble reading for comprehension bottom picker?
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LOL……cmon Fly that was better than just a good call….
Al Davis said just Win Baby….Vince Lombardi said winning isn’t everything its the only thing.
Right, sorry. Mixing up my Tribesman and my goombahs, ovah heah.
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I applaud the change from ‘Yellow’ to ‘Idiot’ in the title
Beautifully put, I can’t really add more
Sure to annoy Jake of course
However, in reality, the only viable purpose a gold brick would serve during a financial collapse would be to bash in your neighbors skull for stealing your crops.
No history department at your college of choice?
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Yes, you can also shape them into bullets to fire at wild dogs. Or hide them from the government when they pull an “FDR”.
Recall what happened to the price when FDR pulled his illegal shennanigans?
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Sadly, I don’t. You know, I enjoy insulting gold, but I can’t run too far with it, since I’m sitting on physical silver back at my own place.
Silver is the better call, value wise, but its value hinges on POG, ironically. I have more silver than gold as well.
Gold went from about $20 and oz. to $35 an oz when FDR commandeered it.
History is an excellent lifelong study. One doesn’t want to get caught unawares.
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Listen to yourself Jake. FDR commandeered it. In other words he forced people to exchange it for $20.67 per troy ounce, and then through the Act the nominal price was changed to $35 per troy ounce meaning no individual holders realized any gains (with the exception of jewelers and sign makers).
Yes, but I’ve heard very few people actually turned their gold in to the government.
It doesn’t matter even if they didn’t because the Federal Reserve does not control monetary policy via gold reserves now. It’s most recently become a commodity of diversification for sovereign wealth funds. I’m not saying his gold trade was bad, I just think that FDR thesis is bad.
Don’t you get it? It didn’t matter what FDR said the POG was, it was going up because he was diluting the currency by spending like a drunken –if polio stricken – sailor.
Which happens to be what’s happening now. How many times must I repeat m’self?
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Yes I understand what you’re saying, but the currency was directly tied to gold and the USD was not fiat. Now (2009) gold is increasing because of the commodity-inflation effect perceived by traders and asset managers, along with the divestment of assets of sovereign funds into gold and the public’s obsession with MC Hammer’s Cash4Gold.
Here’s the historic inflation adjusted price of gold from 1344:
http://www.sharelynx.com/chartsfixed/600yeargold.gif
If your argument was true then the public would have bid up all commodities in the interest of protecting assets against inflation. Here’s the chart for oil 1869-2009:
http://www.wtrg.com/oil_graphs/oilprice1869.gif
I still maintain that the volatility of the price increase of gold, specifically, for your FDR gold thesis is confined to that particular time period.
What percentage of your wealth do you have stashed away in physical gold?
Physical gold 0%.
I’m putting all my money in that stupid mountain growers fucking coffee. Try drinking a cup of gold mutherfuckers. We’ll see who is laughing when the shit flys off.
I might not be able to drink gold, but I could use it to buy your family for indentured servitude.
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Better to be rich and gay and having the egregious privilege of shitting while sitting on a gold-plated commode, than poor and pathetic and living in a paper mashay[sic] box made with monopoly money.
I’d rather be poor and have my butt-hymen intact than rich and all tore up back there. What good is having a gold toilet if you have to sit on a doughnut cushion to use it?
I’m going to use my bricks to smash the fed’s printing press…GO JAKE GINT!!
LOL. I think Captain Queeg is attempting to instigate a mutiny, ovah heah.
I’ll have his strawberries, I will.
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gold is for 2nd class morons
So, your point is that there is a guaranteed and growing market for gold?
You should check out the V.King Blog for those and other exciting answers….
rofl. Good point. Right now, however, there are more idiots out than in. (which is a good thing).
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Ott’s out of jail! Just kidding. Good to hear from you.
No offense to Senor, (Master of the short-term), but
that shit will NEVER happen,
at least in your lifetime
What does this chart tell us about the long-term (from 3 months to “in your lifetime/NEVER)?
http://ibankcoin.com/flyblog/files/2009/12/interesting1.png
Absolutely Nothing
http://ibankcoin.com/flyblog/category/predictions-for-2009/
FD: I know things that do me absolutely no good & I have the triple digit bank account to prove it.
Fly, is SD (Sandridge) cheap here or should we wait for oil to decline further? Are you buying SD here?
Love SD
In October and November, the government spent $292 billion more than it took in, the nonpartisan Congressional Budget Office said.
That was even worse than the same period last year, when the government was on its way to posting a record $1.4 trillion deficit for the fiscal year that ended Sept. 30.
Jake is stroking out. Mission accomplished.
You know that I have four little brothers, yes?
Ask them what they got when they nettled me. (At least two of them are around here, somewhere…)
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“but that’s just what Jake is” No offense Jake, you can’t help it you’re a moron.
Fly, should I sell STV. It’s not looking too strong here.
I will smash your face with my ashtray
Don’t waste the anger, V. King. “Potemkin Village Idiot” is well named, and scorched in the naming.
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I haven’t ever seen Jake ask Fly if he should sell a stock.
I hope Schiff spanks Dodd’s punk ass in 2010, goldbug or not.
Treu.
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Hey Fly,
Are you saying that we will be in a bull market for 3 years or so?
Thanks
GDX short is treating me very nicely these days. I will cover all my short GDX and go heavy long at $43.
Gold bugs might be gay idiots but gold will go higher after this blip is over or untill the fear of fiat currency goes away. Could be years!
Sorry Jake, I meant “floating,” not fiat. I guess we hit the max number of replies.