Dr. Paul Craig Roberts - U.S. Gold is Gone

I won't quote Dr. Paul Craig Roberts (former Assistant Treasury Secretary for Economic Policy).  I think each of us should listen to his words as spoken by him.  That leaves no chance for a misquote, or the possibility of me taking his words out of context for the purpose of sensationalism.

As you listen, please take note of his thoughts on:

• Why can't Germany have it's gold back now?
• Who is selling massive quantities of gold during light trading hours--a practice guaranteed to maximize losses?
• What's happened to the gold of the West?
• How long until the dam bursts?

Tick, tock . . .

Gold: Sell, Hold, or Double Down?

I'll be brief.  Recent market moves, headlines, and commentary have been unsettling to (say the very least)

for investors in precious metals.  But if we can get beyond "What's happening?" and consider "Why is it happening?" the situation can be viewed much differently.  In a recent post, Gordon Gekko dissected the "Why" issue with incredible detail, and basically threw in the "Who" as a bonus.

Spoiler alert!  The title of his post is "Buy PHYSICAL Gold. NOW: The Discount of a Lifetime: Or Why You Must Abandon the Fake Paper Gold Market

"If someone is selling anything, the rational thing to do would be to get the best price possible, right? Would you get the best price if you sell your lot in one go flooding the market? Would you want to overwhelm all the bids and crush the price? Yes, but only if exactly that was your objective – to crush the price. Nobody sells 400 tons (!) of gold in one go if they are trying to get the best possible price. So this wasn’t a case of varied market participants selling their gold holdings having considered the fundamentals for Gold and arrived at the conclusion their long position didn’t make sense anymore. This was a case of concerted selling by one single entity whose sole intention was to drive down the price. Not only that, nobody sells $20 BILLION worth of Gold in ONE GO without some sort of state/CB backing."

So how is the situation different?  Gold is on sale!  Get some now, or right after you finish Gordon's post.

Gold: No New Reasons to Buy?

Here's some good advice from Bloomberg. In consideration of gold's current slump we are told at 20 seconds in that ". . . there are no new reasons to buy."



You could have fooled me.  I thought the Fed was providing 85 billion reasons a month, the Japanese were on the same track, and Europe was burning!

I have got to learn to look at the bright side of things.

Bill Fleckenstein on Gold and Gold Stocks

Bill Fleckenstein seems to have a lot of faith in central bankers--to do exactly the wrong thing,  So much, in fact, that when asked about gold and gold mining shares, he commented:

"I don't see any alternative." 

Hear the entire interview (about 12 minutes) courtesy of King World News.

Peter Schiff - Gold is still a great buy

Sure, in this video Schiff says gold is still a great buy.  The really entertaining part though, is right at the beginning when he directly contradicts the party line at the Fed.  If you've seen his old Youtube videos vs. Ben Stein, you may wonder, as I do, if he'll be vindicated 100% this time as well.

If nothing else, you have to love the guy because he's a politician willing to tell us what we don't want to hear.  So, that makes 2 with Ron Paul.  Now what do we do with the rest of them?

 

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National Inflation Association says Fed rate hike is meaningless

The Federal Reserve announced yesterday that it raised the "discount rate" by 25 basis points to 0.75%. This move was meaningless because very few institutions use the Fed's discount window, in comparison to more widely used overnight lending. The current balance of discount window borrowing is only $14 billion, compared to the $1.1 trillion in excess reserves currently being hoarded by banks.

By the Fed raising the discount rate but not the overnight federal funds rate, they are clearly trying to talk up the U.S. dollar and push down gold and silver prices, without reducing the supply of cheap credit. Considering that gold and silver prices rose slightly yesterday following the Fed's announcement and held strong today, it is our belief that the market is calling the Fed's bluff and beginning to realize that artificially low interest rates are here to stay.

Many people forget that gold's bull run from $35 to $850 per ounce during the 1970s came during a time of rising interest rates.

Sure, they're talking their book.  Who doesn't?  Before you discount what they say, though, you might want to read the full article here.  Then, before you dismiss them, try to find the flaw in their data or their reasoning.  If it's there I'd love to hear about it!

PS  Why not sign up for their newsletter why you're there?



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