Friday, July 22, 2011

The Truth About Gold Is Seeping Into The Mainstream Media

and soon it will start seeping into the mainstream conscious and then we'll start to see the real gold rush unfold.  I think everyone knows who Rick Santelli is:
“Ron Paul last week asked Chairman Bernanke during the Humphrey Hawkins type hearings if he thought gold was money and he (Bernanke) said, ‘no.’ My answer would have been, it’s better than money."
Here's the link to the short interview from King World News:  LINK

I was chatting last night with a financial advisor from a large financial services company who said he had been watching gold but was afraid that he has missed the opportunity.  What's amusing about this is that I've had this same conversation with financial industry "pros" since gold went over $500.  As long as the mainstream hoi polloi and their rocket scientist financial advisers feel this way about gold, the bull market in precious metals and mining stocks will be easy money for those of us who get it.

When I started doing this sector back in 2001, I thought $5,000 would be a lay-up and that it might take 5-7 years to get there.  I had no idea that the skepticism and lack of understanding of this market that was so pervasive back then would still be nearly as pervasive now.  In fact, back then, no one even knew what gold was other than maybe Keynes' "barbarous relic."  Now, skepticism is nearly as pervasive and, in fact, the negativity toward the sector, per the constant "bubble" references in the mainstream media and from the big Wall Street advisers, has proliferated.  This dynamic serves to further strengthen the argument for the gold bull. 

Because of this, I now confident that $10,000 gold is a lay-up, although I have stopped putting a time-frame on my views because the markets are so incredibly manipulated and I believe that the financial and political oligarchs (i.e. the people who control Obama and Congress) still have room to prolong the day of reckoning for our system.

In the meantime, here's one of my favorite pics from the Amalfi Coast - this is on the beach in Positano:


  1. Whie you're at kwn read...

    Pierre Lassonde - Coming Mania in Gold Will Dwarf that of ‘70s

    When asked if he felt mining shares were way undervalued Lassonde
    said, “It is (gold shares) way undervalued and this is one of the most
    interesting facets of the current market as far as I’m concerned. The
    portfolio managers for whatever reason seem to have stuck their
    wallets up their rear ends and sat on their hands for the past three
    or four months.

    When you look at the average valuation of gold stocks over the last
    ten, twenty years and where they are today, they are like one standard
    to two standard deviations below what they normally trade for. Let
    alone in the current market they should be trading for, which is one
    standard deviation above the norm if not more....

  2. I'm thinking the mainstream advisors still don't get it because they are brainwashed by the Wall St. propaganda. When it comes down to it, financial advisors are basically salespeople, not experts on sound money.

  3. (Dave)

    Most of them are used car salesmen at that.

    I read Lassonde's comments. He's rare among mining company CEOs, especially big company CEO's Most of them just want to get the gold out of the ground and out the door because they don't think these prices will last. They are mining engineers, not people who think about markets and financial/geopolitical dynamics.

  4. Havea great weekend Dave, great picture too!

  5. Stunning photo. You are very lucky to have visited that lovely place!

  6. Sorry Dave the photo sucks. Amalfi is spectacular but all i see are the crummy houses. I have however used one of your other photos as a desktop! keep em coming nice distraction.

  7. Friday, June 18, 2010 - Gold Begins Historic March To $2000

    Major fortunes are about to be made and lost. As Gold gapped through the $1,250 level this morning, the final hurdle to the imminent hyper-bolic growth phase was crossed.

    Many investors find it psychologically intimidating to purchase an asset making all-time highs, but history is full of examples of huge wealth creation from doing exactly that. When the Dow Jones Industrial Average (Dow) crossed the seemingly insurmountable 1,000 barrier in 1982, it was met with widespread disbelief. Yet, that proved to be one of the greatest buying opportunities ever for stocks. Oops!

    The primary reason for this stumbling block is that investors are told to "buy low" and "sell high". Kinda hard to do when an asset has never been higher. Of course, following that logic, one would have missed every single bull market in history. Oops !

  8. Financial Advisors hate gold for one reason, they can't make a commission on it. Where would they be if they put their clients into gold. Dave Ramsey and his financial adviser say its a poor investment because they make money on the mutual fund and a big fat ZERO on Physical Gold. Its going to be funny when this comes back to bite them in the ass

  9. (Dave)

    re Amalfi photo: LOL. Ya those buildings are really old. I like the photo because it shows how the apartments and hotels are built up into the hill on top of each other. I couldn't live like that but it's a cool place to visit!


    The Fed Audit

    July 21, 2011

    The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression at page 256 Mr Scott Alvarez, yes Mr Scott the one you can find here:

    16 Trillion secret loans: we are all doomed.

    Il Folletto

  11. P.A.

    Il Folletto