The Golden Truth: The Pictures Tell The Story

Thursday, March 24, 2011

The Pictures Tell The Story

My friend and colleague "Jesse" posted this commentary on his site yesterday. I wanted to link for the benefit of anyone who has not yet seen it. This pictorial explains why you need to move as much as you can into gold and silver. Here's the LINK I would also suggest reading his "Money Supply: A Primer" link as well.

6 comments:

JoshThursday, 24 March, 2011
Did you manage to high-five the Dark Riders when they came through today? Miners took the brunt of it. I was hoping for a little more of an opening in silver. But I'll take what I can get. They might take another run at it tomorrow or Monday, but I'm not gonna bet my position on it.
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MammothThursday, 24 March, 2011
Thank you for the link. The spike up on the top chart follows Silver's spike (since august).

For those who keep saying, "the price of Silver can not continue to climb the way it has recently been doing," I will show them Jesse's chart.
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And while we are on the subject of PM's, take a look at the price of Gold today. Once it crossed above $1,449 - WHACK!

Algorithms in action, I assume.
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Dave in DenverThursday, 24 March, 2011
We raised a lot of cash in the fund first thing this morning by selling mining stock positions. Left our juniors in place, though.

We may get a vicious attack here in order for JPM to further loosen up the April silver long positon.

The fact that JPM was surrepetitiously approved to be a vault for the Comex tells you they still have tricks to use to avoid default. MOre on that tomorrow if I have time
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JoshThursday, 24 March, 2011
This afternoon doesn't qualify as a vicious attack in your frame of reference? Looked pretty vicious to me. Are you thinking they could take out the Japan lows from last week? Seems unlikely unless the spx cracks hard.
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mabmanThursday, 24 March, 2011
Margin for Futures will rise slightly.

"Margins for silver futures will rise at the close of business Friday, CME Group said Thursday.

CME Group also said it will change margins for a number of other commodities, including cheese, cattle, cocoa, coffee, uranium, propane and gasoline. The stated purpose of the margin changes is to “ensure adequate collateral coverage,” said CME Group, which operates the Comex division of the New York Mercantile Exchange, where silver trades.

The “initial” margin for speculators in the 5,000-ounce silver contract will rise to $11,745 from $11,138. The margin for hedge/members and “maintenance” of speculative positions will rise to $8,700 from $8,250.
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Dave in DenverThursday, 24 March, 2011
Josh, today's move in silver was predictable and not really vicious. The move we had a couple weeks ago or last week that hit silver for nearly $2 and started after the NYSE closed was vicious.
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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.