Extreme Nervousness in Regards to Collapse-Gold Silver a Must-Rick Rule
By Greg Hunter’s USAWatchdog.com
Precious metal expert Rick Rule is not worried about the recent smack down in gold and silver prices. Rule is motivated by wealth protection. So, the price decline is a “nonevent.” Rule asks, “What are the alternatives? Perhaps you’d like to buy a 30-year U.S. Treasury, something Jim Grant famously described as a return-free risk.” Rule thinks the financial world is far from healthy and says, “I have extreme nervousness in regards to a collapse. . . . The only way we could avoid collapse is if we inflate away the net present value of our obligations. In both sets of circumstances, I am personally more comfortable owning precious metals than not.” Cyprus is a stunning example of why people should store some wealth in precious metals. Rule contends, “If you were a Cypriot citizen and you had stored your wealth in gold and silver as opposed to having your money on deposit in a Cypriot bank, the Cypriot banking crisis, for you, would be interesting but not relevant.” If there is war in Korea, Rule predicts, “If a nuke goes off on the Korean Peninsula, the first move in precious metals would be down. . . . The second move would be higher. I also believe precious metals would hold their value over time UNLIKE most other asset classes.” Join Greg Hunter as he goes One-on-One with Rick Rule, Chairman and founder of Sprott USA.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
😉 Buy Buy Buy!
Of course it is a buy
Guys, I think we are seing comex collapse now. This simply makes sense what is going on. This is the only way comex can colapse due to no physical gold. This is the process of detaching physical from virtual gold. This is it. Separation of physical market from fake comex market and we are saying run out of paper. This has nothing to do with physical and if bullion dealers realy sell their metals for that kind of price, their out of their mind. All bullion dealers should increase their prices big time.
I think this is what’s happening. Kyle Bass talking about comex
“price will solve anything” if more then 4% people ask for metal delivery. Virtual Gold : Physical Gold = 80 : 2.7.
Simly, no gold in comex rooms.
http://www.youtube.com/watch?v=lgNVNTvlpFY
Time to wake up! Gold is not a buy at this price. The market is looking for a floor because some of the keyfundamentals its price was based upon no longer apply. Its revaluing itself in this new environment. The market doesn’t lie. If you don’t know what’s changed then you are putting your money at risk if you buy now.
Greg,
GREAT INTERVIEW!
Really Really Good!
Mahalo!
Thank you Troy, John and Justin for the comments.
Excellent interview with Rick Rule, very Well done by both of you
Rule is a calm, pragmatic investor that dispenses grounded, ageless advice.
I have great respect for Mr Rule but I would disagree with one assumption and that is the Government will always be able to reflate.
I am just wondering if we are witnessing the first warning signs of a deflationary spiral that can not be stopped.
Robert, au contraire! Ever hear of pushing on a string. If there wasn’t a limit, all countries that tried it would have succeeded. The government is only one side of an equation. Sure, the gov could try, but it will be just as unsuccessful.
For deflation, your dollars would have to have increasing buying power. Maybe yours are, mine sure are noticed
Snap…hate this auto spell checker and correcter. …. my dollars are losing buying power which equals inflation as opposed to deflation which is an increase in buying power.
we are following in japan’s footsteps. they cant stop deflation. we cant either!
Greg: Your skill is unmatched. The amount of respect is clearly seen. There is only so much time in a interview , and you made the most of it.
As I hold my two gold coins in my garden stained hands. I can only hope Gold continues to decline so I can buy more. Facts= pm manipulation has been proven. fake Dollars have lost the credibility world wide. The debt is 16.8 trillion. Never to be paid back in my life time. Discarding the impossibilities, It is possible there is a conspiracy behind these things. Thanks for another thoughtful interview.
http://www.usdebtclock.org/#
Nothing has changed for the better. Gold is the oldest form of financial insurance. “Why sell your insurance when all the buildings around you are on fire”–Alf Fields.
Greg
Yes,yes, yes! However, I cringe when people call it insurance. It’s money, although many people are just becoming aware of it. Gold is stoic; it just sits there, unmoved. It is the fiat currencies that dance, up and down around the throne of gold. Central bankers certainly see gold as “king of the hill” even if the vehemently deny it.
Gold is moving from “weak hands” to “strong hands”. Everyone is passionate in a rising market, but when it turns, as all markets do, those who are under educated and in it for the greed, the Newbies, succumb to their fears and sell at a loss after they bought at the top. As Dines says, “A gamblers secret desire to lose”. I would be surprised if George Soros sold physical rather than ETFs short.
I have always thought the that “when push came to shove” that 5% of the people would have to end up with 95% of the wealth (gold). I figured that there would be a smack-down to the point that most would sell, out of fear, and then the price would rise so fast that most would think it too expensive to buy back in and hope that the price would go back down so that they could get back in. But it doesn’t go back down. I think that there would be true permanent backwardation in gold, non selling at any price. I’m beginning to think that this is the big smack down.
Most everyone looks at prices with fiat currencies in mind, an elastic ruler. What if you were to buy a yard of cloth, but every 5 min. the yard stick would stretch or shrink. How would you judge value? That’s the situation you’re in today. Gold just sit there and doesn’t change.
The newbies and panic sellers are looking at it backwards, from the point of view of fiat currencies. They won’t get back in. Too, bad. Reality is a harsh teacher. They may have remembered the “80s” when gold price collapsed (what I call the “setup”) and wet their pants. Of course, later, they can brag about how they almost made a lot of money in PMs, while standing in the soup line.
Either you are governed by reason or you are governed by fear (emotions). If you are governed by fear you will be tossed willy nilly upon the sea of life. If you are governed by reason backed with knowledge as Rick Rule, most certainly, seems to be, you have a true compass with mindful bearings in which to navigate the tremulous sea of financial change. Reason + Knowledge will set you free! Experience is what you get after you need it. Knowledge tempers experience. Remember, Luck is knowledge + opportunity. The opportunity is at hand.
Last comment!!! Yea, everybody says. Most sellers of physicals are probably looking at things from within the existing paradigm. I think that Rick Rule is looking from outside of the existing paradigm. That is what visionaries do.
I don’t know what the future is going to be, but I know that it is going to be different from what it is today. I like commentators like Rick Rule and Greg Hunter. They help me peer a little further into the future than I could ordinarily see.
So, try and see outside of the existing paradigm. The “existing paradigm” is really your belief system. Yes, you do see the world through rose colored glasses or other colors. It really is a big universe out there.
If I could add one last comment
Data clearly shows that in past financial disasters that deflation set in several years after the initial downturn. For instance, deflation grabbed hold in Japan five years after its asset bubble burst in the early 1990s, and then it didn’t let go for decades.
Robert, Real name and resume please. You are giving trading advise and I want to know your expertise. No other comment will be posted with just “Robert.” I have been very lenient. Thank you.
Greg
Sorry will not do that again…it was just opinion and I will not post again
Robert,
Let me make this perfectly clear, you are welcome to comment, you just can’t do it anonymously any longer.
Greg
Okay and thank you!
Rick Rule is one of the best commodities gurus around. One should also pay attention to his analysis of the platinum and palladium markets.
http://www.theaureport.com/pub/na/15119
Excellent interview! I just bought a few oz’s of physical silver this morning. I agree this is a sale not a reason to start doing foolish things like lightening your hand. I’ll buy all the way to the bottom and part way back up!
Does anyone know if those of us in the USA can buy (or sell) gold at the world spot price on days when the world spot was lower than the spot in the USA? And how?
Also, does anyone know of a website that features world gold and silver spot prices along with the low and the high, as Kitco does, but only for New York?
BTFD = Buy The F*in’ Dip.
We all look for opportunities to buy. Well, here they are. I will buy as it goes down. When it (silver) rebounds, I will be done buying silver for good. This could be the last opportunity for depressed silver prices. Buy as your funds allow, don’t buy on a panick. People with paper silver will panick and sell, thus buy physical until it goes back up.
Greg: from where I sit, IMO that the PM smackdown may be the last desperate move by the criminals. Considering that most, if not all economic indicators are down, no amount of “spin” can bring back the hopium. Something wicked this way comes. I still stand by my call of a Friday night 30-50% devaluation of the USD at some point this year or early next. I imagine that the trigger will be some sort of COMEX default (i.e inability to deliver) given that shortages of PMs are now readily apparent.
Holders of physical PMs definitely should not sell and should be buying with both hands. Both the current gold and silver prices are now below the true mining costs for each, when factoring in any reasonable allowance for Return on Capital Invested.
Goldman Sachs made the call and the entire market sells off. Please tell me it’s not manipulated. The PPT manipulates the stock and bond market to go the other way in general. I agree with you Andy B!!
Price in paper means little to me,this drop gives me more time to change paper into metal.
The change in value will give stackers even some more peace of mind in a near future.
Greg: I just got off of craigslist looking at gold, and silver. The prices have not dropped in the market. Also there are 5 times the buyers then sellers.
I have to disagree that this is a nonevent. Yes, for people smart enough to be holding gold and silver in their hand this is a nonevent, however they are openly taking it down and not trying to hide it anymore and nothing happens like this unless it is planned. this is a red flag that something is coming soon in the economy that they cant hide for much longer and they want to pull price down to get and to help control it when it does happen. Yes, another great time to buy, silver premiums keep rising so the price doesnt really change for the physical.
Greg:
Check the latest from Dr. Paul Craig Roberts. His gold forecast is right on. The big crash is near!!!!!! Betts
Here’s the link to the PCR Assault on gold –update http://www.paulcraigroberts.org/
Greg: Thank you so much for helping me get prepared. Everyone should read P.C.R. link you have provided.
Greg,
You get the best people to interview. This guest was very direct, and I enjoyed hearing his point of view.
Hey Greg,
MARVELOUS interview – bar none. Such organized thinking and precise expression – is like a Master’s art: I recognize the genius; but have to admit it is beyond my power at the same time. Someone who ‘does NOT search for reinforcements to his own paradigm’??? What a clear and refreshing view of the events of our day. Precious metals are for security; are for the long term. (I can see why this guy is Chairman.) His contribution brings your work up a notch. Kudos to you both!
Thank you Charles H.
Greg
Greg, wonderful catch ! His analysis to your pressing questions was awesome. Eliminating the emotional aspect of the circumstances allows this guy to position perfectly. I doubt that he plans on leaving the US of A any time soon. Thank you for giving us Mr. Rule !
Thank you Doug.
Greg
Greg
We have been waiting for this moment,when Goldman Sachs,JP Morgan and the banking cartel(fed) manipulate paper metals so they can scoop up any physical inventory they can find before the economy crashes. This has been going on for years but is coming to a conclusion soon. Guess who are the big buyers of Gold and Silver now, the banksters! If the precious metals market is crashing then WHY are they currently buying?
I went into my local Richmond, VA coin shop Saturday and I was NOT surprised to see the display cases mostly empty, and was told Physical metal is very hard to find now. No silver/gold eagles, very little 90% junk silver.
If you talk to any tax attorneys or other so called ‘tax professionals’ they will tell you that the 16th Amendment allowed the income tax to be collected as a direct tax without apportionment among the 50 states. This is totally false, and this is the major problem with today’s tax collection efforts. The IRS believes that the income tax can now be collected as a direct tax without apportionment, and collects it in that fashion. It is totally unconstitutional to collect a direct tax, in the 50 states, without apportionment, we are the victims of mass brainwashing by the government.
Many of our Founding Fathers warned us about paper money not backed by anything and the consequences that result.
Henry Cabot Lodge when asked if he could vote for the FED monetary system in 1913 stated that “It was highly inflationary and detrimental to the american people, and I cannot vote for this bill”.
In 1913 the USA was the largest Creditor nation in the world and since the 1913 Fed implementation we are now the Largest debtor nation in world and bankrupt. It only took 100 years to ruin us. Was it worth it?
I don’t think my grand-children will think so……
Got any Physical Silver or Gold, better get some if you can find it.
Greg, Thanks for your work!
Ken
Ken,
Thank you for the comment and analysis.
Hello Greg:
You and your guests Such as Paul Craig Roberts have proven they really have a handle on what is being done in the market and how it is being manipulated particularly with the price of Gold. Remember all great Empires collapse from the inside first. Is there any doubt that corruption on every level will bring this house of cards down?
Don
I don’t buy this. Rick Rule believes there is no manipulation. He’s wrong–again. This sell off is all paper gold. The central banks are buying physical hand over fist ahead of a system crash. We know from Andrew Maquire that this drop was done with the express intent of shaking weak holders and causing a selling panic as the comex was dry of any gold. I heard they were down to bins of scrap trying to fill orders. Don’t let this scare you, otherwise you are just getting robbed of TRUE wealth and “they” want to steal it at lower prices. Back up the truck and load up—-unless you believe paper has more value. A fool is an easy mark—-
Al–“This sell off is all paper gold. The central banks are buying physical hand over fist…”
Which is it? If the sell off is all paper gold and the banks are buying physical, some one must be selling physical.
I think that Rick Rule, a rational reasoner, can’t say for certain that the market is manipulated, GATA, not with standing. He may have a good hunch that is what is happening, but, intellectually, suspends judgement until he positively knows. There is a difference between knowing and believing.
A fool is just someone that see things differently and later comes to regret it.
Rick Rule is the consumate professional. He may be the best in this business from a longer term perspective.
Nice interview Greg. Something is afoot in the markets and it is also now impacting stocks. Look at things like WLT, FCX, etc. I believe they are foreshadowing something.
And some people might say it was China’s #’s overnight but the decline in the above mentioned stocks started a while back. People just weren’t paying attention because the market kept rising.
Internally, things were breaking down…..
I have always enjoyed Rick’s insights. Great interview Greg!
How can you not ” believe” that there are entities out there that would want to supress the bullion prices? This is no correction. I agree with Greg. Someone dropped a shit load of paper gold on the market, to drop the price. I read it was 500 tons, and there are only a handful of banks with the clout to pull off that kind of short, the fed, jp, or goldman. Maybe the fed is dropping the price so they can buy physical on the cheap to satisfy Germany, since they most likely have Germany’s gold anymore. Either way there is still a big price difference between buying paper and physical, the premiums on physical is something like 8-10%. Buy it if u can.
Greg:
This is a drop of historical magnitude and is going to leave substantial damage in its wake. First, the mining companies are getting clobbered. Since they will now get less money for their product, their bottom line will likely be in the red. This will affect their ability to get loans to continue their operations. It will also affect the banks that have made loans to them. The outcome may even be less metal being mined. The stock market is also reacting negatively to this development and who knows where that will end up.
There definitely ought to be an investigation to see who sold all this make-believe gold, and who bought it and whether the transactions were at arm’s length.
Stan Hart: Great point. I have not considered the mining companies. Hopefully they will get a bail out like the fake banks did. My gold is not for sale even if the price were 5,000 an oz. Fake money can not control my real money.
it would impact miners if they SOLD at this price. I am willing to bet they don’t give
Ya! Let’s investigate. Wait let’s get the CFTC (Commodity Futures Trading Commission) to do it. That worked out really well for silver.
Buy Low, Buy High,…………don’t sell.
Time for a quote from “Gold Wars: The Battle of Sound Money”, by Ferdinand Lips published 2001. Page 142: What Are Central Bankers Really Up To?
“No normal businessperson would purposefully act in such a way as to depress the price of his most valuable asset. Hence, central bankers ought to know better. And they probably do know better. They also know perfectly well that their display of fighting inflation is for the benefit of a gullible public. What central bankers are really interested in is the continuing efficacy of their respective banking systems. These arrangements allow banks to garner enormous revenues, . . . provided the fiat funny money systems are sustained. To continue this unearned and underserved bonanza, gold money, which would be the people’s choice in a free market, must be disparaged, destroyed and eliminated.”
There’s nothing new under the sun. It is indeed another “Gold War.”
With more of the BRICS, Austarlia and now France moving to direct currency swaps , bypassing the
USD as reserve currency of global finance ,the Fed is printing more and demand is quickly eroding.
Fear in the USD going south soon is a viable result.
http://www.reuters.com/article/2013/04/13/us-china-france-currency-idUSBRE93C01S20130413
Evan, You nailed it. Reserve currency status is at risk.
Great interview Greg! Rick Rules… (-;
Mr.Rule said gold might drop first if a nuke want off. Maybe with the drop in PMs and the market the insiders saw the explosion. We the little people, have to wait for the shock wave.
I think everyone focusing on the gold sell off, is really taking their eye off the ball here.
It’s more likely a great warning sign for those smart enough to heed it. The same thing, and even worse, can happen with the stock market and bond markets. Gold went down hard the last time this market tanked, and it was before the market tanked.
While a lot of if’s, and whyfores are being bandied about, the true situation is that nobody (except for maybe the sellers) know exactly why the gold paper market was sold off. Also what is not known, is what was the triggering event behind the scenes. Its not whats obvious to all as to the cause. Its something some key people dont want anyone to know.
If some derivatives have imploded, (just as an example), no amount of gold selling, and profiting, is going to be enough to help anyone. Gold paper happens to be extremely liquid, and especially easy to sell. If this has something to do with derivatives, then much much larger money is going to unload stock shares, and then bonds. No market comes out of this unscathed.
In fact, gold and silver will likely be the least of the “damaged goods”, and recover far faster, and go far higher in the shortest amount of time, once the dust settles.
The demand for physical is going to be sky-rocketing amongst the usual acquirers. They’ll get however and from where ever they can.
This isn’t a ‘catch’ the falling knife environment at all. The gold physical market is just too damn small, versus any other sector, and whatever is sold off (paperwise) will be easily absorbed by others.
When the flood of money comes rushing back in, the pm sector will be a rocket launch higher. We’ll see $1000 up moves in a day, $100 to $200 upmoves in an hour. Gold’s rarely respected any technicals, so dont pay any attention to those.
And if this isn’t a warning to get your dollars out of banks, 401k’s, stocks, bonds, I don’t know what is. ITS LIKE SCREAMING AT YOU, if you know what you are looking at and listening for.
Mike in Chicago.
I really like this guy. I am just a layman, but when I heard the gold/silver news today I immediately thought of it as a great buying opportunity for the silver reserve I just recently started. I understand if other precious metal investors were upset by it, but I hope it holds still for a little bit so I can make some new purchases.
Mr. Rule was an excellent interview.
I would enjoy hearing more from him in the future.
Thank you Farley.
Greg,
http://www.cnbc.com/id/100644707
Excerpt from above link
“As most of Europe falls prey to economic decline and austerity measures, Norway’s booming economy is expected to grow a healthy 2.8 percent in 2013. But there could be trouble ahead, Erna Solberg, leader of the Conservative Party of Norway, told CNBC”
If inflation is about 2%, how is 2.8% growth health? Do the math…that ends up being 0.8% growth. Seems weak, even anemic to me
at the current price of 1383, 500 metric tonnes of gold = U$D22,231,725,000. 2011 total estimated gold production is about 2,700 metric tonnes. The 500 metric tonnes dump is over 18% of the yearly total production. Easy to see how that could depress the price quickly. My question to Greg is what happens if even a small amount of people buying contracts demand delivery? A large % of the Comex stock was recovered by the owners. It sounds like the owners know something we don’t and these owners are not selling.
Greg, YOU ARE perpetually cheerful 😉 …you just don’t have your head in the sand! I agree with Rick that a calamity like a resumption of the Korean War will correct out the leverage in the market. The DOW declined 260 points yesterday due to a small terror attack. Only through the grace of God were the people of Boston spared 2 bombs going off.
except from ZeroHedge “Comex gold bullion inventories have slumped 17% already in 2013, falling to just 286.6 metric tons of actual metal on April 11, the lowest since September 2009”
Too put this in perspective, Traders sold 140% of the Comex Gold. Others, PCR, put sales at 500 tonnes or about 175% of Comex available stock. How could this go wrong?
http://silverdoctors.com/10-of-us-annual-silver-supply-just-vaporized/
*UPDATED
5 million ounces of annual silver supply and 500,000 ounces of annual gold supply have just been buried due to a landslide.
Rio Tinto’s Kennecott mine in Utah- the US’ 2nd largest silver mine and world’s largest copper mine has just suffered a massive landslide which will likely shut down production at the mine for years as upwards of 1 billion tons of dirt and ore have collapsed into the basin.
16% of US annual silver production just vanished. Good thing there aren’t any physical supply issues in silver currently or anything…
Kennecott Utah Copper’s Bingham Canyon Mine pit wall slide
At 9.30 pm local time on 10 April 2013, Kennecott Utah Copper’s Bingham Canyon Mine experienced a slide along a geotechnical fault line of its north eastern wall. Movement on the north eastern wall had accelerated in recent weeks and pre-emptive measures were taken to relocate facilities and roads prior to the slide. All employees are safe and accounted for.
Mine operations are currently suspended while experts assess the extent of the slide and impact on operations.
Greetings Greg and fellow Watchdogs.
I have a real problem with anyone who looks at our Cypriot brothers and Sisters who were robbed as debtor’s who blah blah blah. I have to believe the vast majority of these people are hard working good people who were robbed by people whose brains work much like this guy’s. Regarding gold which I do hold some of, the real question is not what we are all asking but what do the powerful want. Do they want six big banks in America? How many unions do they want? How many currencies? Believe it or not folks, while we were all at work trying to stay in the game many rules in the game have changed. Personally, I think they prefer digits on a chip or implanted in us to gold and I think the future will prove this. It does not matter what we think the rules are. Occupy was the best thing to happen in a long time because the one thing they hate is a leaderless demand-less big group of people pointing at them and saying we know. Let’s do that again.
Jim wrote, “Personally, I think they prefer digits on a chip or implanted in us to gold and I think the future will prove this.”
I agree that the powers in the USA would love an electronic currencies. If you are not a good party member, your money just disappears
A King’s money is GOLD!
A Merchant’s money is SILVER!
A Slave’s money is CREDIT! (Ever hear of the Company Store)?
A digital money just cuts the overhead (more profit, less employees, less jobs, more machines to do your work).
Digital money is credit in the extreme. Slaves aren’t shackled and chained any more, that’s old hat, besides it was too costly to guard a slave against escape. Today, the slaves, mistakenly, think of themselves as free, they guard themselves. Your chains are economic, invisible, but, to the most discerning, but it is just as binding(think debt, mortgage, endless taxes, etc. You can’t save because the government inflation tax robs you of your saved wealth (you can never pay off the company store). Of course, there’s outright currency destruction, too.
Digital money would set civilization back 600 years. The basis of civilization is trade, free trade. Civilizations are born out of trade. It is their sole reasons for being. Digital money is not free trade it is coerced trade, using a coerced medium of exchanged. It is like trading with America, the world just seem to get the “short end of the stick”. Think “Tally Stick”. Free trade is mutually beneficial to both parties. Coerced trade is not. One party benefits at the expense of the other. Eventually this is found out and trade stops and collapse occurs.
When the collapse occurs are you a King, a Merchant, or a Slave?
Ok. I finally found some time to watch the interview. Mr. Rule seems like quite the reasonable guy. A refreshing change from many of the “sky-is-falling” types out there in the PM space.
But once again, consider this: the man is selling his book. People generally search out what it is they want to hear. The people who want to be bullish stocks, will go to CNBC, or whereever it is that will feed them what they want to hear.
Even Rick says that everyone has confirmation bias. Or at least he alluded to it at one point.
People hang with who they wish to hang with, which is generally someone who has a common parallel interest.
So what ? Why do I say the above ? Isn’t it just stating the obvious ?
Well the reason I say the above, is truly, everyone needs to take a step back, and ask themselves: what would happen if any of our worst fears are realized ??? Nuclear incidents. Terrorist attacks like in Boston. Earthquakes. Financial ‘meltdown’ (whatever that means, and I have no idea frankly). Armageddon.
And then after they ask those types of questions, what really would owning gold or silver or some other asset provide them, and for how long ? And as far as purchasing power over time, from after the crash of gold in the 80’s up through 1999, holding gold did not preserve purchasing power, and in fact owning stocks far and away exceeded any gold ownership. Silver the same thing.
For a lot of people, nearly 20 years is a ‘generation’, meaning depending upon their age, it may not have been a worthwhile endeavor to put any money in gold in the 80’s or 90’s.
Gold might be a good choice for another 7 years, now that its had a nice little 13 year run. For a portion of someone’s holdings that is.
But I would bet money, that a lot of Sprott’s clients, are not folks who have a net worth of less than $1 million, and their gold is their ‘life savings.’ For all of these events, that are supposedly screaming at all of us, there are literally millions if not billions of little positive events, occurring every day, if not every hour,that if we could somehow add up, and capture a collective picture of it, it would far outweigh potential ‘black swans’, financial ‘meltdowns’, flash crashes, or bank runs.
I’m just saying, the vast majority of the world’s population do not have any access to media like we have here in the US. They go about their days, and make positive things happen. That is a human, simply being. Or doing. These people are not blind, or naive. They focus on what they can control. Which generally is their own little piece of the world, that represents their day. Do they prep ? Do they have assets ? do they have material wealth ? maybe.maybe.maybe.
So please everyone. Take each of these videos, or interviews, not just from Greg’s website here, which again does a good job, but for all of your sources, with a grain of salt as they say. Keep your perspective and your wits about you.
Generally speaking, and this is from someone who is over 50, had his fair share of incidents, that some would consider extremely stressful, or traumatic, that which we fear rarely comes to pass. Or if you fear it, and it does come to pass, you generally get through it. So go ahead. Own a little gold. Own whatever amount makes you feel comfortable. Silver, or any sort of preps, or weapons, or security measures or what have you. But keep this in mind. make sure you spend 95% of your day, focusing on the present, your loved ones, your work, your passion, because no amount of prepping can guarantee that tomorrow will be another day for you. Its cliche, but what all these events tell me, is that the most important thing is to live each day, as if its your last. What would you be doing, and were you doing what you loved, and were you loving what you do, and loving your loved ones, and allowing them access to love you too ?
Personally, I think that is the best we can each do.
May God Bless all who come here to Greg’s site, and even those who don’t and maybe perhaps should.
Mike in Chicago.
Mike,
The stock market has been a terrible place to put your money since 2000. The dollar is down about 30%, most pay a 1% a year commission. The S&P is back to just a little higher than it was in 2000. It got smacked down again in 2008. The NASDQ is still off around 40% and this is with massive amounts of QE 1,2,Twist and “open-ended.” How is a buy and hold investor making money in inflation adjusted terms. They are not and it will not be any better for them when the Fed stops printing $85 billion a month to suppress interest rates top prop up the stock market, the housing market and the bond market. I am not giving you a hard time I am just adding my perspective. I appreciate your support and your perspective.
Greg
http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx
Mike wrote, ” it may not have been a worthwhile endeavor to put any money in gold in the 80′s or 90′s.” This is not supported by fact. Gold is owned to preserve wealth and buying power. Inflation is offset by deflation in a natural economic cycle. In the managed economies of today, governments inflate fiat currency to steal the wealth of the common people.
I agree that you should not be consumed by what is coming but you should be prepared. And you should live and enjoy life.
You also point out that the vast majority of the world living in poverty gets by. True but it is a hard life with a much shorter life span than we enjoy. The third world life style is coming here.
http://www.economicnoise.com/2013/04/17/whats-behind-the-plunge-in-gold/
excerpt from above link, “I have puzzled as to why gold was taken down at this time. That last statement implies two things:
1.the likelihood of manipulation.
2.that gold as a safe-haven vehicle is not over.
The manipulation possibilities arise as a result of the suddenness of the price adjustments, as well as some suspicious trading (see the video below for one of these discussed by Chris Martenson).
There are a number of candidates who would benefit from manipulation. Here are three:
•Governments who are debauching their currencies. Gold is an obstacle to what they are doing. The rising price of gold is nothing more than the dropping value of fiat currency.
•Banks who have borrowed and then re-lent gold. At some point this gold needs to be returned. Martenson discusses this problem in the video.
•The world financial system. The faux pas that was Cyprus threatened the solvency of banks. This stupid act signaled to the world that money in bank accounts is not safe. A flight to gold (or some other safe store of wealth) could start a world-wide bank run. Clobbering the value of precious metals makes that less likely to be an alternative.
All three considerations potentially motivate an attack on gold by governments/banks. Economies and financial systems of the world are on the brink of destruction, despite what government and media propaganda tell you. Manipulation, legal or otherwise, has been and will continue to be used to attempt to prop up the failing world order. The incentives for such actions are easier to describe than is the presentation of hard evidence.
Chris Martenson, who I consider one of the better analysts of the world’s economic and financial problems, believes that central banks have leased out their gold and are unable to meet demands from countries like Germany for its return. He discusses this issue in the following video:”
The “non-event” of the downturn is at least noteworthy if one buys at the wrong time. The bugs refuse to acknowledge the fact that it is possible to buy gold at the wrong time, unless one holds to infinity.
Easier to be right in hindsight. Having said that, the ONLY entity warning against a gold crash in timely fashion, well enough in advance to actually position a portfolio, was Elliott Wave International. Is a silver equity cheap at 50% of what it was trading for before? Trick question.
Charles,
This is not a site that recommends “trades.” I am not sure you will have to hold to “infinity.” Speaking of “holding” the stock market has been a horrible place for the buy and hold investor. Mind you, this is with relaxation of bank equity rules, accounting rules (FASB 2009), QE 1,2,Twist, EU dollar swaps, and currently, “open-ended” QE. The S&P is back where it was in 2007 and about the same as it was in 2000. Add in the weaker dollar, true inflation and management fees of around 1% a year and how is the buy and hold investor making money in the stock market since 2000? If you want to track gold and silver let’s take a look at it in a longer perspective, say since the year 2000. If you do that, then the buy and hold investor is protecting his wealth. You may be very good at trading, but that is not the same thing as wealth protection and investing. Thank you for your comment.
Greg
Fair enough, but if we go back to 1980, and look at a gold purchase at that time, it took until 2006 to break even. Twenty six years of faith based investing to protect one’s wealth, and then finally see a positive return. Those numbers can be plugged into this site, and it is a useful historical research tool. See: http://www.measuringworth.com/gold/
I wonder if wealth protection in the future will mean that we will all have to become traders.
Charles Longfellow,
You don’t think the price has been manipulated like LIBOR, mortgage-backed securities, stock market and bond market by the President’s Working Group on Financial Markets? (AKA the Plunge Protection Team.) When the manipulation stops, (and it will) I want what they have been suppressing not propping up. You should too.
Greg
We agree on that. What the individual must decide, is if that manipulation inspires a faith based approach to investing, based upon fundamentals that must eventually be proven right, or… perhaps for the less patient, if a technical approach and actually trading, which simply means getting out of the way in a downturn as defined by the charts, is the better way to protect and increase wealth. Of course if we define wealth as metals and not dollars, then there is no argument, and the bugs are right. Buy yesterday, today and tomorrow and never mind the entry price.
Of course you can buy at the wrong time. That’s true of all markets. You could have bought the dow in late 2007 or housing in late 2005. You could have bought gold in the mid-80’s. Today is not then, the mid-80’s. Today the Fed and government don’t have the same latitude as then. They are constrained by the choices that were made in last 20 yrs. Which choice will be “the nail in the coffin”, I don’t know. Maybe it is Cyprus, maybe not. “Complexity Theory” formerly known as the “Chaos Theory” say that it is unpredictable. One thing for sure, that a mountain of bad choices becomes less stable with each passing bad choice, then the avalanche. There is always choice tho, hope for rational choice. Psychopaths (Sociopaths) could always opt for nuclear war. That certainly fits the paradigm of the American Empire.
Charles–At the beginning of the year I read a missive by Clive Maund, I believe, that said that the Fed and the government would take down the commodity market, then take down the stock market to force money into the bond market, the “big Kahuna”. The life blood of the American Empire. The commodity market was sacked, is the stock market next? We shall see. John Williams of Shadowstats.com has said in one of this interviews that May 2013 will be the big comeuppance for America. Many gave warning.
“Is a silver equity cheap at 50% of what it was trading for before? Trick question.”
Is it cheap? It depends on what you value. 310 million Americans, 310 measures of value. “A horse, a horse, my kingdom for a horse!”,Richard III.
I don’t find a 40-70% decline in PM assets in the last 6 months a non-event. Mr. Rule is a well-known commodity distressed asset (aka vulture) investor. He makes his money waiting till companies are trading at a few times cash or $10 / P&P oz. We’d all be better off scraping together 250k and sending it to him and getting warrants and shares when they’re down 95% with warrants instead of taking this abuse in a rigged market.
How can anyone as intelligent&savvy as Rick Rule not see the obvious manipulation of PM market !
The Fed dumped 500 tons of “paper gold” as a part of naked short selling intended at suppressing the price. This was an act of desperation to protect the loss of confidence in the dollar.
If a fraction of this percentage drop happened in stock market. Trading would have been halted and the financial media would be on the networks calming the public.
Could it be any more obvious that this was an attack on PM?
Actually when someone doesn’t be aware of after that its up to other viewers that they will assist, so here it occurs.