The Golden Truth: While American Hoi Polloi Sneer At Gold, China Hoovers It Up...

Thursday, November 18, 2010

While American Hoi Polloi Sneer At Gold, China Hoovers It Up...

This comment was sent to me from a long-time colleague who is over in Beijing right now. He himself has been accumulating gold and silver for several years:

Went to a major dept store that sells gold. 100 oz bars selling for cash. 3 or 4 deep lines of people buying. No photo taking allowed unfortunately. Mob scenes. Food up sixty percent in two months. Talk about deflation and people laugh at you as an idiot. Prechter would be stoned to death here.

The media dismissed the threat of inflation in the U.S. by rationalizing that the U.S. is "exporting" inflation to China. There is just no basis in fact or truth to that nonsense. Inflation is starting here and will become unmanageable, especially for those on fixed incomes and social security. Good luck. Got gold? It's your only shot at protecting yourself and your family from our Government.

8 comments:

BillThursday, 18 November, 2010
That and Bullets Dave, many many Bullets. And no I am no right wing wacko, but I will say this Crime is ticking up everywhere...case and point

http://www.wral.com/news/local/story/8642374/

And we are still in the easy times. Just wait, remember desperate people do desperate things.
ReplyDelete
Replies
VigilantVirginianThursday, 18 November, 2010
Dave, that's a fantastic anecdote! Talk about real time on the ground observations! That's a gem...keep posting things like this.
ReplyDelete
Replies
AnonymousThursday, 18 November, 2010
Dave, any idea when SDRG will be on the TSX? I still have faith despite SDRG going down towards 19 cents when silver went up over a dollar
ReplyDelete
Replies
Dave in DenverThursday, 18 November, 2010
re: dragon. as far as i know they are working on it now. unfortunately i'm not an insider so i can't tell you a specific timeline. all i can do is repeat what they've released in the press and what Marc the CEO will tell you if you call him.
ReplyDelete
Replies
Dan in UtahThursday, 18 November, 2010
Can't afford the bread? Let them eat cake.

I wonder how long it will take for the same to happen in the US.
ReplyDelete
Replies
AnonymousFriday, 19 November, 2010
Dragon - Let's not take over the blog with questions on SDRG.
ReplyDelete
Replies
Dave in DenverFriday, 19 November, 2010
Agree on Dragon. Anyone can go to the website and call the CEO. He returns every call from every investor and he's very approachable.

Dan, it's happening here already. You just don't hear about it in the news.
ReplyDelete
Replies
JayhawkFriday, 19 November, 2010
I've brought up gold to various people in my circle (family, friends, random people, all ages and economic levels). Almost every single one has said "it's too expensive right now". There's no mania anywhere near in the US. Silver?? Fagetaboutit.
ReplyDelete
Replies

Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.