Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Gold is universally priced in USD. Consider that we'll have 10% currency debasement each year for at least the next 5 years as budget deficits will be roughly 10% of outstanding US Treasury debt. That's why, IMHO, gold will continue to rise vs. the USD.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
I'd be willing to bet that less than 1/2 of 1% hold any "meaningful" position in gold - say greater than $100,000 worth (including paper and physical gold) and not including as an owner of a fund who just happens to periodically have a position in GLD for example.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Riptide....you are correct. Gold holdings are at record levels, because all the gold ever produced is still available and in existence, save a few uses which are demi-destructive. So, we can all get used to the fact that the above ground amount of gold will continue to increase.
Now...how widely held do you think that physical gold is amoung investors? And how widely held do you think that "paper" gold is as an asset class. Considering the fact that 60% of the 10,000 people retiring every day have less than $50,000 saved and 82% of the people retiring have less than $250,000 saved (both measures excluding their primary residence) I suspect it's not very widely held - perhaps by 10% of the people who are considered the 1 percenters.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
erikmartin.....I find it interesting that all 7 of your comments have been posted in opposition to gold. And you comment above holds no factual justification for your position. So....it's kind of hilarious. Why are you here?
PostScience....yours is an interesting comment. My question is this. We have been selling Treasury debt for at least 70 - 80 years. There has never been an experience that I am aware of where a holder was stiffed. Therefore, what is there to suggest that holders may not be repaid?
I have purchased Treasuries in the past using Treasury Direct. I took a check to the FRB locally and they deposited Treasuries in my account. When I liquidated, they put the money back in my account. The fact of the matter is that it's a simple accounting entry. They do not have to sell additional Treasuries to repay current holders. They just have to deposit a corresponding balance in the holder's account.
The Treasury (with the Fed) could print $2+ Trillion and redeem all treasuries held by the Chinese, at which point the US debt would be $2 Trillion less. We can debate what happens afterward, but don't forget inflation only occurs when "money" chases limited goods.
I Don't Expect QE3, But I Expect LTRO3 Soon [View article]
That's my concern. Nothing is being done for Main Street. It's as if they are saying, "Until the public balance sheets are remediated, there is no use.". But that's not true. There is plenty that can be done for job creation, some of which may require stimulus, some of which is simply get out of the way.
We have a huge opportunity to lower energy costs in the US. At the same time we have the ability to push the Middle East into a position of being less influential. Imagine the difference $300 or $400 billion a year being spent in the US for energy vs. the Middle East for energy. It could be even more.
But there appears to be zero creativity, zero leadership, zero innovation in "Government" thinking about the who issue of economic growth. So - we'll wait much longer and be exposed much longer than we need to.
I Don't Expect QE3, But I Expect LTRO3 Soon [View article]
I don't expect positive economic progress in the US. I do expect fall out from Europe affecting the US. I do expect QE3. I just don't know when. The reason is that the path we are on is not evidencing progress to any large degree and there are too many potential negatives that the probability of a trigger event has to be at least 70 - 80%.
The SEC and Finra look set to launch separate investigations of the Facebook IPO. Finra Chief Rick Ketchum calls allegations analysts for the lead underwriters leaked negative views about FB to select clients ahead of the IPO, "a matter of regulatory concern." [View news story]
Gee, they can sure spring to action when they want. Why doesn't the SEC and FINRA jump into the MF Global issue and determine the realities surrounding J. Corzine.
JasonC - "Also, legal tender status has precious little to do with any of it. Money is whatever market participants actually use as money, not what any state says is money."
If that's the case then the government should have no problem repealing the legal tender laws and letting the good citizens of the USA determine what form of money they want to hold and use in transactions. And moreover, will remove penalties from, and restrictions on what form of payment can be used in contracts, etc.
Analysts at Facebook's (FB) lead underwriters cut their revenue estimates ahead of the IPO, reports Reuters, passing the information on to a few of their key clients. "My biggest hedge fund client told me they lowered their numbers right around mid-roadshow," says an IPO researcher. He still bought the issue, he says, but flipped it immediately and went short. Shares -3.8% premarket. [View news story]
Why I Am Short Gold: 5 Reasons [View article]
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Now...how widely held do you think that physical gold is amoung investors? And how widely held do you think that "paper" gold is as an asset class. Considering the fact that 60% of the 10,000 people retiring every day have less than $50,000 saved and 82% of the people retiring have less than $250,000 saved (both measures excluding their primary residence) I suspect it's not very widely held - perhaps by 10% of the people who are considered the 1 percenters.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Treasury ETF Rally Threatens Stocks [View article]
I have purchased Treasuries in the past using Treasury Direct. I took a check to the FRB locally and they deposited Treasuries in my account. When I liquidated, they put the money back in my account. The fact of the matter is that it's a simple accounting entry. They do not have to sell additional Treasuries to repay current holders. They just have to deposit a corresponding balance in the holder's account.
The Treasury (with the Fed) could print $2+ Trillion and redeem all treasuries held by the Chinese, at which point the US debt would be $2 Trillion less. We can debate what happens afterward, but don't forget inflation only occurs when "money" chases limited goods.
I Don't Expect QE3, But I Expect LTRO3 Soon [View article]
We have a huge opportunity to lower energy costs in the US. At the same time we have the ability to push the Middle East into a position of being less influential. Imagine the difference $300 or $400 billion a year being spent in the US for energy vs. the Middle East for energy. It could be even more.
But there appears to be zero creativity, zero leadership, zero innovation in "Government" thinking about the who issue of economic growth. So - we'll wait much longer and be exposed much longer than we need to.
Why I Am Short Gold: 5 Reasons [View article]
http://www.columbia.edu~ram15/grash.html
Wall Street Breakfast: Must-Know News [View article]
I Don't Expect QE3, But I Expect LTRO3 Soon [View article]
The SEC and Finra look set to launch separate investigations of the Facebook IPO. Finra Chief Rick Ketchum calls allegations analysts for the lead underwriters leaked negative views about FB to select clients ahead of the IPO, "a matter of regulatory concern." [View news story]
Where is the elusive, in cognito Jon Corzine?
Why I Am Short Gold: 5 Reasons [View article]
If that's the case then the government should have no problem repealing the legal tender laws and letting the good citizens of the USA determine what form of money they want to hold and use in transactions. And moreover, will remove penalties from, and restrictions on what form of payment can be used in contracts, etc.
Analysts at Facebook's (FB) lead underwriters cut their revenue estimates ahead of the IPO, reports Reuters, passing the information on to a few of their key clients. "My biggest hedge fund client told me they lowered their numbers right around mid-roadshow," says an IPO researcher. He still bought the issue, he says, but flipped it immediately and went short. Shares -3.8% premarket. [View news story]
Wall Street Breakfast: Must-Know News [View article]