2009: BUY GOLD. NOW.

[wawaweewa]

Originally Posted by Dey Know Yayo

banks are liquified well past levels of current and future write downs. there is tons of EXCESS liquidity out there that serves no purpose staying hoarded.

it is the fed's policy to allow for wealth destruction and purging not through CAPITAL destruction, but PURCHASING POWER destruction.

How do you know that those levels exceed future write downs and devaluation of assets? Have you seen their balance sheets and holdings? For all weknow these banks are losing and standing to lose trillions worldwide. There holding are not only in the US. USD isbeing destroyed around the world through revaluation in foreign countries as well. The world was literally run on USD.
If anything the FED will export the inflation around the world.

Why would they allow purchasing power destruction and risk revolt and the revocation of the central bank charter when they can allow capital destruction and'blame it on the bad economy'?
Capital destruction is already occurring. How they hell is Bernanke preventing something that is already occurring?

You're not seeing the political side of this. Politics and money work hand in hand.

 

[dey know yayo]

Purchasing power destruction is a tax that the public doesn't realize. The Dow Jones is worth less in terms of gold now than it did in 1929. The publicobviously doesn't feel that. They feel when they have less money, not when their money is worth less than it used to be.

The Fed funnels inflation into different assets to prevent hyperinflation in consumer goods (which the public got pissed at in the 70s) and the next asset togo into is precious metals.

 

[dey know yayo]

American businesses is where foreign inflation will go into. Which is domestically inflationary. But even more than buying from American corporations, foreignnations will buy literally tons of GOLD for their exchange reserves with their huge USD reserves. And on a smaller scale, they'll buy more food fromAmerica.

 

[wawaweewa]

Originally Posted by Dey Know Yayo

Purchasing power destruction is a tax that the public doesn't realize. The Dow Jones is worth less in terms of gold now than it did in 1929. The public obviously doesn't feel that. They feel when they have less money, not when their money is worth less than it used to be.

The Fed funnels inflation into different assets to prevent hyperinflation in consumer goods (which the public got pissed at in the 70s) and the next asset to go into is precious metals.

Why won't they allow capital destruction that is inevitable? Deflation is already occurring and ongoing.

The Fed doesn't funnel anything. They make cheap credit available and the banks and wealthy choose where to funnel that money.

 

[wawaweewa]

Originally Posted by Dey Know Yayo

American businesses is where foreign inflation will go into. Which is domestically inflationary. But even more than buying from American corporations, foreign nations will buy literally tons of GOLD for their exchange reserves with their huge USD reserves. And on a smaller scale, they'll buy more food from America.

So you think the FED will %%%% over America sooner than it'll %%%% over China, Iran, Japan, UAE, Saudi's or any other foreign nations savefor Western Europe?
Why would they shoot themselves in the nuts when they can throw others off the cliff?

America built the world for the last 30 years. Just as fast as they built it they can destroy it.
You think they didn't see this coming? The mechanisms are in place to let this hurt others more than it hurts the US.

Gold has already appreciated substantially over the past 10 years. It has already taken into account the 'printing press' since early 200 when ratswere extremely low.
Now that wealth is being destroyed all the printing press is doing is trying to replace that lost wealth.

 

[dey know yayo]

You want to know how it destroys foreign nations? Pays them back in devalued dollars. Not only do creditor nations not have the INTEREST of buying more debtfrom America, they don't have the MEANS. Interest rates ARE AT 0 my friend.

Capital destruction would lead to a Great Depression Part 2.

 

[wawaweewa]

Originally Posted by Dey Know Yayo

You want to know how it destroys foreign nations? Pays them back in devalued dollars. Not only do creditor nations not have the INTEREST of buying more debt from America, they don't have the MEANS. Interest rates ARE AT 0 my friend.

Capital destruction would lead to a Great Depression Part 2.

Exactly. However, it can be drawn out and 'softened' a bit. That's what they are doing. Instead of an quick crash they'll drag itout sector by sector.

The Fed funds rate was near 1% in 02-04. Gold price has already accounted for that.
However, at that time banks were lending. capital was appreciating.
Now, they're not lending and capital is depreciating.

The world is not decoupled from the US economy. That type of decoupling takes decades. Until they're decoupled they'll play the US's game.

If China doesn't buy US treasuries, you know what happens?
We tighten outsourcing laws and tech transfer laws. What then? China can't build a %%%%$! thing on its own.

The Chinese gov't is already scared of social unrest coming from many rural areas.

Just because Bernanke thinks/thought he can fight deflation with printing money doesn't mean that's a fact. In fact he's wrong.
Deflation is a mindset of fear and mistrust.

 

[dey know yayo]

The social unrest is going to come in the form of a demand for the Yuan to be allowed to appreciate.

China CANNOT buy treasuries. Look at the yields. It would be losing wealth.

The Fed manufactured this and the way they're going to let it unfold is by inflating our way out of it and hyperinflating gold. Hyperinflation occurs whentoo many INCREASING currency units chase too few DECREASING assets. Gold is a contango market, so its supply diminishes as people buy up gold. It cannot be"produced" it has to be mined. Letting gold prices rise solves everything and lets the wealth transfer from the taxpayers to the banks occur withoutcivil unrest.

Ultimately, we have to wait and see what happens. wawaweewa's deflationist argument is the only one that makes any sense, because he takes into account thefed's manipulations and behind-the-scenes actions. regardless, like you said, even in deflation, gold should rise strongly in nominal terms, which would beall the more impressive in real terms as the USD gains strength. gold WILL appreciate better than the USD in both deflation and inflation. i am a staunchproponent of inflation, but assume i'm wrong. my suggestions still hold water. right now i'm bearish on commercial real estate/REITs, retailers, banks,and insurers and bullish on gold. if the sequestered money stays sequestered, i will buy bigger positions in my bearish positions against CRE and retailers andsoften my gold positions. in an inflationary environment, i'd do the opposite. either way, gold will appreciate better than the USD and my recommendationshold water.

that being said, i would be so surprised the unseqeuestered money isn't let out into circulatoin that I'm willing to bet ben baller $50,000 that itwill be.

 

[wawaweewa]

Originally Posted by Dey Know Yayo

The social unrest is going to come in the form of a demand for the Yuan to be allowed to appreciate.

China CANNOT buy treasuries. Look at the yields. It would be losing wealth.

The Fed manufactured this and the way they're going to let it unfold is by inflating our way out of it and hyperinflating gold. Hyperinflation occurs when too many INCREASING currency units chase too few DECREASING assets. Gold is a contango market, so its supply diminishes as people buy up gold. It cannot be "produced" it has to be mined. Letting gold prices rise solves everything and lets the wealth transfer from the taxpayers to the banks occur without civil unrest.

Ultimately, we have to wait and see what happens. wawaweewa's deflationist argument is the only one that makes any sense, because he takes into account the fed's manipulations and behind-the-scenes actions. regardless, like you said, even in deflation, gold should rise strongly in nominal terms, which would be all the more impressive in real terms as the USD gains strength. gold WILL appreciate better than the USD in both deflation and inflation. i am a staunch proponent of inflation, but assume i'm wrong. my suggestions still hold water. right now i'm bearish on commercial real estate/REITs, retailers, banks, and insurers and bullish on gold. if the sequestered money stays sequestered, i will buy bigger positions in my bearish positions against CRE and retailers and soften my gold positions. in an inflationary environment, i'd do the opposite. either way, gold will appreciate better than the USD and my recommendations hold water.

that being said, i would be so surprised the unseqeuestered money isn't let out into circulatoin that I'm willing to bet ben baller $50,000 that it will be.

Just wanted to add. Even through all this back on forth i def. see your side of the argument.
The Fed/Treasury/ USG moves in the intermediate future will dictate where we are headed.

If there are clear signs that the presses are exceeding, at an increasing rate, over wealth destruction than I'll be over at your side quicker than thedrop in Obama's rating.
When we hit bottom and there is no more wealth to be destroyed and the Feds are still running the presses than high inflation will be in order.

Gold isn't a bad play by any means. The only sector where I'm long across the board.
There's virtually no risk for holding bullion and giving gold stocks play.

 

[patmc13]

Originally Posted by finnns2003

Originally Posted by TW3EK

broke $+* *^ in this post..yall dont wanna see my stacks..

good addition to this discussion.

wow...

 

[ghettoeinstein]

yall need to pm

 

[patmc13]

Originally Posted by Dey Know Yayo

you're right, we'll see. gold prices should start surging spectacularly in late jan/early feb.

I would love to see this...

 

[trasoul82]

[h2]Citigroup just announced GOLD at$2000.00 per ounce soon.[/h2]

"Citigroup says gold could rise above $2,000 next year as world unravels. Gold is poised for a dramatic surge and could blast through $2,000 an ounce by the end of next year as central banks flood the world's monetary system with liquidity, according to an internal client note from the US bank Citigroup." "Citigroup said the blast-off was likely to occur within two years, and possibly as soon as 2009." "Gold has tripled in value over the last seven years, vastly outperforming Wall Street…"



Full article:

http://goldissuperior.com...at-200000-per-ounce-soon/





I'm going to be buying gold and silver within the next week or so. I'll probably be going the securities route as opposed to futures. If there is areason I should try both approaches, feel free to make the case. I really don't have much to add. I just thought I would stoke up what has to be one of themore intellectual and significant discussions on NT in recent memory.

 

[dey know yayo]

There will be another article up on Seeking Alpha soon, I will post it when it is accepted for publication. It spells out my entire argument in detail.

 

[bboi4lif3]

Originally Posted by Patmc13

Originally Posted by finnns2003

Originally Posted by TW3EK

broke $+* *^ in this post..yall dont wanna see my stacks..

good addition to this discussion.

 

[snaggykicks]

Originally Posted by bboi4lif3

Originally Posted by Patmc13

Originally Posted by finnns2003

Originally Posted by TW3EK

broke $+* *^ in this post..yall dont wanna see my stacks..

good addition to this discussion.

 

[trasoul82]

Originally Posted by Dey Know Yayo

There will be another article up on Seeking Alpha soon, I will post it when it is accepted for publication. It spells out my entire argument in detail.

I'll be checking for it. Do you have any specific place(s) that you recommend buying gold from? I'm about to consult with a Monex reptomorrow. Are they a pretty safe bet? One of my coworkers referred me, but he also said he lost a bunch on futures earlier this year with them. I understandthat everything is pretty much high risk if you are looking for a short term turnaround.

 

[dey know yayo]

I think the market is about to turn down again, starting tomorrow. Let the next wave of selling and deleveraging occur and then you can buy gold at adiscounted price to now as it pulls back slightly.

 

[dunkman23]

is there anywhere else i can purchase gold? Onlygold requires a 10 ounch minimum purchase. thats close to $9gs.

 

[dey know yayo]

http://goldissuperior.com/2008/12/10/citigroup-just-announced-gold-at-200000-per-ounce-soon/http://goldissuperior.com...at-200000-per-ounce-soon/

 

[uncleo28]

Alot of those sites like Monex have a hella high commission fee. I bought and sold some silver bullions and gold with a local jeweller around, but most timeshe did sell it with crazy prems. like 45-50 above face. I can see that for some coins like the American Buffalo or Eagle but not for bullion. Not doubt over along period of time Gold is going to go up with inflation, but its not going to happen over night, thats a pipe dream. If Gold drops back down to the low700s-600s per oz than Im going to pick some up

Also platinum is a really good bet if you can get your hands on some, its around 900 a oz, and around 6 months ago was 2k an oz. Before Gold I would pick upPlatinum if you can locate it without crazy premiums.

 

[nicefro]

Market's open bump.

 

[430AM]

Do I get the same bang for my buck if I cop that turkish gold bullion on ebay???
They have all types of gold bars on there... One gram bars go for like $35 a pop.

 

[wawaweewa]

Originally Posted by 430AM

Do I get the same bang for my buck if I cop that turkish gold bullion on ebay???
They have all types of gold bars on there... One gram bars go for like $35 a pop.

[h2]1 ounce = 28.3495231 grams[/h2][h2]28*35= 980/oz[/h2]Very high premium over spot.

 

[430AM]

Originally Posted by wawaweewa

Originally Posted by 430AM

Do I get the same bang for my buck if I cop that turkish gold bullion on ebay???
They have all types of gold bars on there... One gram bars go for like $35 a pop.

[h2]1 ounce = 28.3495231 grams[/h2] [h2]28*35= 980/oz[/h2]Very high premium over spot.

I know the premium is high...
Basically what I'm getting at is... Where could I sell the gold bars later on down the line? Are those gold bars on ebay even legit?
I'm not trying to buy that stuff on ebay and then turn around and sell it on ebay later. If I'm gonna try and push this stuff I need to make sure thereare buyers... Really tho, Could I just go up in a jewelry spot at the mall and sell gold?

I'm only asking because I live in a small town in Cali and there's no place to buy or sell gold here... Suburban life in the boonies is stressful man.

Thanks for the response though... Please forgive my ignorance too, this is all new to me.