Reading this opening line from a Seeking Alpha article "Ben Bernanke continues to be one of the only economic voices of reason in the United States" my first thought was the article was humorous. Not so, he is actually serious! It continues:
Gold is economically irrelevant for the following reasons:
1. The pricing mechanism of gold is too easily manipulated by extremists. Gold is the investment vehicle of fear.
2. Gold is no longer a currency. Gold has no fundamentals.
3. Gold prices are transitory. This is a fad.
4. Bond prices, gold stocks, and core inflation suggest there is no imminent threat to the economy.
This is the mainstream view, unfortunately. We are a long way off a bubble.
Gold is economically irrelevant for the following reasons:
1. The pricing mechanism of gold is too easily manipulated by extremists. Gold is the investment vehicle of fear.
2. Gold is no longer a currency. Gold has no fundamentals.
3. Gold prices are transitory. This is a fad.
4. Bond prices, gold stocks, and core inflation suggest there is no imminent threat to the economy.
This is the mainstream view, unfortunately. We are a long way off a bubble.
Bron, When you've got 8000 odd tonnes (maybe) and plan to re-value then you can make outrageous comments like this; "tongue in cheek".
ReplyDeleteWe'll all I can say is that many CB's don't think that way and are buying. China's PBoC is Hoovering up all it can get, ETF's, Pension Funds, etc. Let's see what the attitude is when China and others start to sell US Treasuries. CIC also are selling 200B worth. Who is going to buy their debt; Japan can't, nor can the EU,or UK. PIMCO sold all of it's, so good luck with no gold exposure.
They talk about extremists, well ... pot calling the kettle black, and who's manipulating what.
Hi Bron,
ReplyDeleteSo...where's the silver?
haha.. it's Silverado from Silverstackers asking the tough questions of the Mint :)
Are they selling blanks to the US Mint and bars to the Comex folk etc...haven't been back to check the answers on that yet.
Probably answering my own questions somewhat now, by trying to absorb Fekete's teachings on the gold and silver basis as signalling the shortage.
No naked shorts, no conspiracies, no manipulation...just the big boys trading the basis...very interesting indeed.
Emailed the Prof tonight asking if he would consider an update to his Silver basis primer...seeing as it's getting to the point where I can hear the canary.
I know he communicates with FOFOA and so I also ask him if he would commit to an examination of FOFOA latest post (awesomeness), since Fekete predicts Deflation as the likely outcome off a monetary collapse.
It is confusing though, because in his article 'It's Not A Dollar Crisis: It's A Gold Crisis' he states "Nevertheless, the threat of a short squeeze or, if the worse comes to the worst, that of a corner, is very real. Corner in precious metals also goes by the other name hyperinflation."
I have a lot of catching up to do with the Profs teachings and I'll make sure I pay you the respect, I can see you deserve the next time I interact with you on the stackers.
Funny thing is...I found this blog by the way of
Gold Standard University Live Session V: A Primer on the Gold and Silver Basis - 'Nathan Narusis Interviews Bron Suckecki'
Cheers,
Chris
As you can see from the GSUL "interview", I've been taking the heat for a few years now. With the Mint having its own blog, about time others had a taste of it.
ReplyDeleteRe COMEX, silver and bullion banks - we are net users silver to meet the demand of our customers, we aren't giving silver to bullion banks, we are taking delivery from them ex London.
It would be interesting to see the Professor's take on FOFOA.
I am not so sure about silver predicting the gold market (re basis and backwardation), there are some big differences in dynamics (and games) between those markets