Comments on: Gold Bugs Have Fed to Thank for Recent Rally

By: Charlotte Creamer

Charlotte Creamer — Sat, 14 Feb 2009 21:07:34 +0000

Who the heck actually HAS any gold, I mean PHYSICALLY? Most people just have pieces of paper stating they have gold held in trust somewhere, so “confiscating” it won’t be that problematic for whoever wants it (whether that be the government or some other entity). Not that I believe that even those pieces of paper are actually worth more than… well… the ink on them. Where are the credible PUBLICLY ACCESSIBLE audits on the gold inventories? People are being duped into buying blips on a screen again, thinking they’re buying a rock-solid investment.

Fool me once, shame on you; fool me twice, shame on me.

By: historybuff

historybuff — Sun, 04 Jan 2009 19:58:59 +0000

Regarding gold confiscation: Citizens did not have their gold confiscated. FDR called it in and citizens complied, likely a majority. Americans at the time believed the propaganda spun by Government webs that it was patriotic to return your gold, and if you didn’t give up your gold you could be prosecuted, blah blah blah.

Today? No one believes or trusts anyone in government, and I seriously doubt most citizens would comply with confiscation orders. It is easy to hide and smuggle, Homeland Security, the military, and border guards notwithstanding. They can’t stop insurgents from crossing borders with weapons on horseback, they can’t stop the illegal cigarette smuggling trade between Canada and the US, they can’t stop drugs from coming in, how the hell are they going to stop someone from smuggling anything else? It is the oldest most respectable tradition in history.

Following FDR’s decree, the gold smuggling trade was enormous, and gold could still be purchased by Americans outside the country, mainly Canada, and held in accounts there. I’ve heard many old timer anecdotes about this.

WW2 displaced Europeans who had converted their wealth into gold or diamonds arriving in the US smuggled it into the country. IRS? No problem there either, gold can be sold in small amounts or traded for food or goods and services. Always.

Of course the Fed will use propaganda and will make examples of people. Smart careful people can always outwit them. Keywords are smart and careful. Holding metals is the only way you can truly be protected.

By: Darrell Wyse

Darrell Wyse — Sun, 04 Jan 2009 17:41:08 +0000

You underestimate the deflationary forces that will keep inflation at bay for much longer than you are forcasting. Rising unemployment will continue to dampen credit demand and eligibilty. Forclosures, credit card and auto loan defaults continue to rise.

The banks cannot lend because the bailout money is really reimbursement for the losses on mortgages and the alphabet soup of derivitives. Debt is being tranferred from the institutions and individuals to the taxpayers. The funny money created by the Fed is just canceling some of the debits. However, the debits are larger than the bailouts and will continue to grow as the economy continues to tank.

The consumer is broke, so inflation cannot gain too much traction if people with no access to credit and no savings are forced to make do and do without anything but the basics.

Longterm, inflation is possible as the economy recovers-if it does recover. The government fixes are certainly going to delay the inevitible correction in the economy.

Regards,
Darrell Wyse

By: Jutia Group - Market Jitters & Political Critters

Jutia Group - Market Jitters & Political Critters — Fri, 02 Jan 2009 15:09:19 +0000

[...] Inflation is almost certain to return in 2009, because of all the fiscal and monetary stimulus. That has to be bullish for gold, other precious metals, and mining [...]

By: TONY HILL

TONY HILL — Fri, 02 Jan 2009 11:01:13 +0000

yep i am with you,the consumers are spent up, only the investors are on the side lines,but gold will only have a limited run as it is expensive to store and as soon as interest rates rise with inflation then gold will loose its appeal,well run profitable companies win either way,let us hope we return to the free market economy sooner rather then later as government medalling only delays the inevitable and obscures the reality. cheers

By: Gloomy Earnings Prospects Hold Key to Stock Buying

Gloomy Earnings Prospects Hold Key to Stock Buying — Fri, 02 Jan 2009 10:28:23 +0000

[...] Inflation is almost certain to return in 2009, because of all the fiscal and monetary stimulus. That has to be bullish for gold, other precious metals, and mining [...]

By: Silverbids.com » Blog Archive » Gold Bugs Have Fed to Thank for Recent Rally

Thu, 01 Jan 2009 07:01:49 +0000

[...] Gold Bugs Have Fed to Thank for Recent Rally [...]

By: ce hope

ce hope — Thu, 01 Jan 2009 00:06:53 +0000

One mitigating factor in the hesitancy of American citizens warming up to gold could be the memory of what happened
during the FDR administration New Deal. Gold bars and coins
held by US citizens were confiscated (to my knowledge jewelry was excepted) and reimbursed at the rate of $37.50
per ounce. I don’t know what the gold exchange rate was at that time, but I would be amazed if that number represented anything near the going rate…that’s not the way governments
operate. To be on the safe side, I’m sticking with inderect ownership through the miners.

By: James MacInnis

James MacInnis — Wed, 31 Dec 2008 17:55:39 +0000

When I studied economics 101, I was taught that Paper money and money represented as electronic digits have no intrinsic value.
Fiat money was a convenient medium of exchange and a store of value. In itself fiat money is essentially water marked paper, It cannot be used even for the most ignoble purpose that paper can be put to. It has efficacy only in as much as it is backed up by, the tillage and productivity of a nation.
The law of supply and demand cannot be conned and where subject to vigilance and strict rules of engagement Fiat money serves well as a medium of exchange but human nature being what it is, the tendency has always been toward duplicity.

The attempt to con the consumer into paying for the excesses and reckless spending of government, business and labor leads at length to inflation of the money supply where
productivity, the real wealth of the nation, is misrepresented by too many dollars chasing too few goods. History has proven time and time again, this has been the case and the propensity to avoid discipline and discomfort in the short run leads ultimately to painful recession and depression in the long run and capitalism is permitted to turn on itself with reckless abandonment.

The hesitancy exhibited and the reservations influencing the publics decision to shun the $U.S. in exchange for gold is a mystery that had me thinking because it up til now it has confounded even some of the most experinced Financial observers and seemed to challenge sound economics 101 precidents.

The anxiety of the ignorant masses is evident by their placing so much trust in their government, clinging to the dollar in the desparate hope that somehow the same government that ruined the money supply could somehow restore its vitality and true value.The last life boats are leaving and Gold is beginning its resurge. Elvis has left the building!