IS Gold Money?

"Good question grasshopper now why don't you give us your thoughts on that one."

I just did, grasshopper: the Fed can influence interest rates, but except for the discount rate it does not set them. It engages in open market operations to affect short-term interest rates. Open market operations are most often repos, and are very short-term. You can read how it works here:

http://www.newyorkfed.org/aboutthefed/fedpoint/fed32.html

The Fed needs counterparties to execute these transactions. But the Fed is not those counterparties' only counterparty. They also trade with each other, and for many reasons. That is why QE may but may not affect interest rates.

Here. This is Federal Reserve for Simpletons:

https://www.khanacademy.org/science/core-finance/money-and-banking/federal-reserve/v/open-market-operations-and-quantitative-easing-overview

Another day of dollar up, gold down.

>Another day of dollar up, gold down.

Relative to?

"Another day of dollar up, gold down"

Jason, the value of gold and the dollar will change each and every day but you will remain a retard forever.

Steve you never answered the question all you did was give a tutorial on how the Fed buys bonds.

Renter, I'm starting to side with jason on this. How the Fed buys bonds IS the answer, because the price of bonds is what determines their effective interest rate (nominal yield +/- discount / premium).

So the price of bonds goes up, the interest rate goes down, and vice versa. The Fed does not control that. It can have an influence over it, but no control. Lots of people & institutions own bonds besides the Fed; what they do, along with what the Fed does, sets their interest rate.

The Fed controls only the discount rate. The Fed Funds rate it sets in a range because it doesn't control it directly, but manipulates it through Open Market Operations, sometimes involving outright purchases but usually involving repos and reverse-repos with primary dealers. The only thing that QE reliably does is increase banks' reserves, and how much banks can lend, and the money supply. The interest rate may or may not be affected.

In any event, EXACTLY AS ECONOMISTS (and lil ole me) predicted 5 years ago...when interest rates started to rise, gold would tumble. And lo and behold, each dollar buys more gold (and more of most other currencies.) So the opposite of what Joey and all the stupid gold bugs and Tea Party idiots have been saying. Sorry, Glenn Beck.

>In any event, EXACTLY AS ECONOMISTS (and lil ole me) predicted 5 years ago

Economists are known for the accuracy of their predictions.

Hmm. Gold down 3.46% today alone, to $1231.

http://www.marketwatch.com/investing/future/gold/charts

If it's money, why is it happening so fast? What happened to pips?

and the rupee is down 2% today and 7% in the last two weeks. do we want to go through other currencies too??? cmon, what is your point?

now are we going to get daily updates from you that mean nothing in the grand scheme of things? what is the current quote for worthless condos built on sandbars in the long island sound??

Rupee is not a hard currency.

Gold is not money.

is the rupee money?

"Gold Slips to 34-Month Low as Precious Metals Slide on Fed View
Gold plunged to a 34-month low, set for a record quarterly drop, as improving U.S. economic data strengthened the case for the Federal Reserve to reduce stimulus. Silver futures fell to the lowest since August 2010..."

http://www.bloomberg.com/news/2013-06-26/gold-heads-for-worst-quarter-since-at-least-1968-as-demand-ebbs.html

jason, jason, jason a "man" in search of a mind.......

"is the rupee money"

In India it is, but nowhere else. It is not highly liquid, so it will tend to bounce around a lot.

Gold, though liquid, is not money.

your starting to get it now but you probably don't even realize it.....

"your starting to get it now but you probably don't even realize it....."

There's nothing to get. I already discussed properly and improperly managed fiat currencies. If the rupee were backed by gold - which it's not - it would make no difference. What affects inflation in currencies like the rupee is completely different from what affects currencies like the dollar.

Commodities are priced in dollars. Indian debt is (probably) priced in dollars. Therefore changes in US interest rates can cause inflation or deflation in India because the prices of commodities change based on changes in the dollar. India (probably) has to pay its debts back in dollars; therefore, it needs to do things that we don't.

Being backed by gold would not change that and, in fact, if all currencies were backed by gold - and therefore pegged to each other - it would make the rupee's situation worse because it could not devalue its currency.

Don't confuse changes in foreign currency prices with changes in the purchasing power of a currency within that country. They are very different animals.

And gold does not change that.

"...Gold’s Plunge, in One Chart

Gold’s two-year tumble off record highs is ugly no matter how you slice it...."

http://blogs.wsj.com/moneybeat/2013/06/26/golds-plunge-in-one-chart/?mod=WSJ_Opinion_LatestHeadlines

there you go again, missing the forrest for the tree.

are krugerrrands money?

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1372290851364&chddm=47702&chls=IntervalBasedLine&cmpto=NASDAQ:AAPL&cmptdms=0&q=NYSEARCA:IAU&ntsp=0&ei=AX_LUYCFKKiw0AHxKA

http://www.youtube.com/watch?feature=player_embedded&v=8N0KuaWE0FQ

"missing the forrest for the tree"

No. Your argument is that gold is money. It's not. It's not accepted as money anywhere. You have some vague argument about the gold standard - it doesn't work, never has never will. You have an argument about third-world currencies that are not liquid - makes no difference in those countries themselves, and the gold standard there would make it worse, because, as Greece, Spain, Cyprus, and Italy have found out with the euro (effectively a pegged currency) and the UK did with George Soros and the European monetary system decades ago, and we found out when Charles DeGaulle asked for gold for his dollars, THE SYSTEM FALLS APART.

Your whole argument boils down to, "Gold used to be used for money!"

Whoopie? It doesn't mean it was or is a good idea, or that it worked.

"Are krugerrrands money."

Yes. So are gold coins from the US mint. Not because they're gold, though; because they're legal currency accepted by the government.

"Chinese Buyers Rush For Gold After Slump In Prices"

That was April, RS, and lots of good it did - gold down again today, $1229 as I'm typing.

If gold WAS money, we would have had hyper-inflation for the past year, based on the precipitous drop in gold prices. Ironic for the gold bugs.

gold buggery

the process of pain experienced by those who have long-term (often lifelong) obsession with gold as an investment vehicle--often featuring the frustration of whipsaw and shakeout during times of performance, and full participation in losses during the more typical, continual periods of negative return/carry.

i own a small amount of bitcoins--huge comic and entertainment value!

Gold is a commodity, not a currency. And no shock - its trading just like other commodities. Not at ALL like any major currency.

http://www.ft.com/intl/cms/s/0/d76d040a-de76-11e2-b990-00144feab7de.html#axzz2XPESNUe4

Oh No, Mr. Bill! Gold under $1200 an ounce.

At this point I'd rather have rupees.

Great my buy order was filled at $115.80. for the ETF GLD. All this headline news about how gold is crashing to zero made we want to buy. Let's see how this investment turns out a year from now.

I hope you don't need the money. This chart isn't pretty:

http://www.marketwatch.com/investing/fund/gld/charts

No one says gold is going to $0. But $500 is quite possible.

stevie, calling bs on all of the above. never argued for the gold standard, not once. never said that third world currencies should be on the gold standard either. one of my points (for the fifteenth time) is that your precious fiat currencies have generally been horribly managed over the ages with countless examples of them not retaining any worth beyond printed paper.

then, you changed your position to "properly managed fiat currencies" which you did once you knew that your logic was falling apart. so, your position was to then compare USD to GLD - not even remotely close to what we were originally debating which was the utility of gold as a currency throughout history and how it has retained value despite many fiat currencies turning to shit.

now, you are doing a happy dance because of a short term movement down in gold....so what??? does that really mean anything relative to what i posted.

jason going full retard is predictable, you following suit is just embarassing.

i also said a would rather be a holder of usd right now over gold and still maintain that view. gold short term view is DOWN - big deal........

Well ranger, thanks for qualifying what you think I have been arguing, but I never "changed" my position to "properly managed fiat currencies." Not ever, not once. I was explaining the difference between your "precious fiat currencies have generally been horribly managed over the ages" and real currencies.

Did I ever deny the Wiemar Republic, or Zimbabwe? I did not.

You make no sense: you say "I never said that third world currencies should be on the gold standard either" but you also say, "the utility of gold as a currency throughout history and how it has retained value despite many fiat currencies turning to shit"

Well if they're not on the gold standard and you're not arguing that they should be, then what ARE you arguing?

You seem to be arguing "the utility of gold as a currency throughout history" without showing a single example of what that "utility" has been, or how it has ever been more "useful" than "fiat currencies."

It's NONSENSE. The US had gold certificates, redeemable for gold, from 1882 to 1933, during which time we had the Panic of 1893, the Panic of 1901, the Panic of 1907, the Panic of 1910-1911, and the Wall Street Crash of 1929 and the Great Depression.

WTF good did having gold as a currency do?

Nothing.

Do not accuse Steve of being a Zimbabwe denier.

Im sure glad its not my money...people cant sell enough of it

all this negativity on gold now that it's down. Same people were negative on gold when it went up each year for the past 12 years. Yes the past twelve years gold went from in the 200's to all the way up to the 1900's. They were all negative When it doubled, then triples then quadrupled in price. Now that it's in it 13th year and down they are all coming out of the woodwork. How convenient.
When it goes up to 3000 they will still be negative but when it comes back down to 2000 that's when they will come out of the woodwork again.

a) Gold is not behaving like a currency, because it's not. It's a commodity.

b) Tulips are commodities. They have never recovered.

Same people were negative on gold when it went up each year for the past 12 years

Agreed. I heard the same comments when gold was @ $350

Tulips = Gold?

Yup, RS - and that's what people were saying about the dot.com bubble, that burst miserably.

And remember that HGTV show, "My House is Worth What?"

And, yes, tulips.

So it seems a Fed Governor mentioned "September" today as the start of bond tapering, gold instlntly fell $20 (1.62%) to $1193, and stock futures went from positive to negative. Interest rates soared again.

Which means every time they mention "tapering," the market sees deflation, though for some strange reason the Fed sees inflation. Real interest rates are higher now than they have been for many years, which will grind the economy to a halt.

Don't expect to see gold go up in deflation.

Which means every time they mention "tapering," the market sees deflation, though for some strange reason the Fed sees inflation. Real interest rates are higher now than they have been for many years, which will grind the economy to a halt.

They can mention tapering each and everyday but tapering won't happen nor will QE end. It's just talk. I think you know that.
There is no exit strategy for QE3 in fact I wouldn't be surprised if QE 4 is announced in the not so distant future.

"Don't expect to see gold go up in deflation."

Now that's strange why should we have deflation after all everyone knows our economy is in full recovery mode. However if we do have deflation expect the QE in turbo charge mode.

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1372449600000&chddm=49266&chls=IntervalBasedLine&cmpto=NASDAQ:AAPL&cmptdms=0&q=NYSEARCA:IAU&ntsp=0&ei=pZrNUcDSI6Kj0AHV9gE

Buy gold? Buy aapl? Short both?

Riversider - I suggested that you buy BAC and sell GLD about a year and a half ago. Would you have been smart to take my advice?

http://www.google.com/finance?q=bac&ei=_6TNUfDIIbK80AGaaA

QED.

Our conversation 17 months ago:

BSexposer
about 17 months ago
Posts: 1001
Member since: Oct 2008
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Riversider - I bet BAC outperforms gold by a massive margin over the next 10 years from present levels. All of the bad news about BAC is factored in, all of the good news for gold is as well. choose wisely sir.

Riversider
about 17 months ago
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Member since: Apr 2009
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To put the conversation in context consider
BAC is little more than one hundred years old
Looking at bank pay-out it's clear one is better off working for a bank than owning shares in one

Considering the short(roughly 100 years) history of BAC and the long history(thousands and thounsands of years) of Gold,
the mere discussion of a bet regarding BAC outperforming, having more longevity makes no-sense. Additionally the lack of shortage of dis-believers means that all the good news is not factored in for Gold. It's also the case that people will pay a few dollars for stocks that they know holds no value, consider G.M. after it declared bankruptcy, Kodak, Pan Am, even MF Global trades for a few pennies(no chance in hell common stock holders get anything).

Since our convo, GLD is down over 30%, BAC is up 77%.

Lesson? Buffett is proven right yet again (he bought BAC preferred stock / warrants and said gold was over-hyped)

Warren Buffett Says He’s Not a Buyer of Gold After Price Slump
By Margaret Collins - May 5, 2013 4:00 PM ET

Billionaire investor Warren Buffett, the chairman and chief executive officer of Berkshire Hathaway Inc., comments on the investment appeal of gold. He spoke to reporters in Omaha, Nebraska, on May 2.
Gold rallied 4.9 percent in the past two weeks after entering a bear market April 12. Futures in New York are still down 13 percent this year to $1,464.20 an ounce.

Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., listens while speaking to members of the media outside the Bridge Center in Omaha, Nebraska on May 2, 2013.

On whether he would buy gold after recent declines:

“No. Gold’s not reproduced or anything since I wrote about it a year or two ago. It just sits there, and you hope somebody pays you more for it.

‘‘If gold went to $1,000 I wouldn’t be a buyer. If it went to $800, I wouldn’t be a buyer. It’s never interested me. If you go back to 1965, Berkshire was at $15 and gold was at $35, so you could’ve bought two shares of Berkshire for an ounce of gold, a little more than two shares. And so far, two shares of Berkshire’s been better.”

I know there's deflation & you know there's deflation, but the Fed doesn't seem to be seeing it.

But with real interest rates now at multi-year highs, they will certainly be causing it if it doesn't already exist.

Gold's floor is probably about $800, the production cost. I don't catch falling knives, though.

Steve you seem more into fire breathing.

stevie, stick to your "properly managed fiat currency" position. at least it has some merit. its probably best for your credibility not to morph into full retard mode a la jason when you start comparing gold to crickets and tulips. but you probably cant help yourself.

"Real interest rates are higher now than they have been for many years, which will grind the economy to a halt."

You are insane. They near the LOWEST they have ever been. With long term rates at 2.49%, and CPI at 1.7%, that is a backward-looking "real" rate 0f 0.8%. The forward looking TIPS breakeven rate is 1.97%. That is LOW by historical standards, not high.

The Fed's own 5-year breakeven rate is 2.4% - DOWN from 2.6%-2.9% for most of the past year. And it was often above 3% and as high as 3.6% over the past 14 years.

...and the 10 year forward break even rate had been above 2 and as high as 2.8 for most of the past 14 years.

And also insane: Your assertion that Brazil is rioting over runaway inflation. Wrong.

http://www.nytimes.com/2013/06/28/world/americas/public-rage-catching-up-with-brazils-congress.html?hp&_r=0

http://edition.cnn.com/2013/06/28/world/americas/brazil-protests-favelas/?hpt=wo_c2

bsex, i think warren buffet is probably the most brilliant investor in modern times but he also originally thought derivatives were toxic (which is a whole other thread) but then bought businesses whose balance sheets were completely built around these transactions....

"You are insane."

No. The central bank doesn't look at the CPI; it looks at the personal expenditure cpi. Real interest rates have been negative since about 2008 as shown by TIPS. Only now, after a 1% increase in the last week, are they running positive.

Ranger - you obviously don't know what the tulip reference is about. I'm still waiting for your evidence that gold is somehow better than "fiat currencies."

It's not.

"No. The central bank doesn't look at the CPI; it looks at the personal expenditure cpi"

Which is why I included the FED'S breakeven rate above, in addition to the 10-year TIP rate. I am quite adept at looking up interest rates, I do it for a living.

I'm glad you do it for a living - sounds like a boring living for anybody but a bond trader.

Nonetheless, except for a few spikes real interest rates now are the highest they've been for years because inflation is lower and falling, and interest rates are high and rising.

And yes, with a 1% spike in mortgage rates in a week, and a 2% spike in 2 months, it is going to put the brakes on economic growth really, really fast.

Though I do think the reaction is overdone & rates will fall again, though more clarity from the Fed is needed on when they're going to increase the Fed Funds rate.

>I'm glad you do it for a living - sounds like a boring living for anybody but a bond trader.

Sounds like code for Jason, you are a retard.

"...Erickson's rant is literally the definition of derp. He has a strong prior inclination to believe that inflation is high. As such, his view is not responsive to strong evidence to the contrary, such as BLS data showing very low inflation both overall and in the specific products that Erickson is whining about...."

Read more: http://www.businessinsider.com/erick-erickson-sees-inflation-but-the-only-thing-thats-inflated-is-his-derp-2013-6#ixzz2XXZNHeuu

Yesterday "Great my buy order was filled at $115.80. for the ETF GLD. All this headline news about how gold is crashing to zero made we want to buy. Let's see how this investment turns out a year from now."--Rneterjoey

"I hope you don't need the money. This chart isn't pretty"

Fortunately I don't and we'll see how this trade turns out over the next year or so.

So it seems a Fed Governor mentioned "September" today as the start of bond tapering, gold instantly fell $20 (1.62%) to $1193, and stock futures went from positive to negative. Interest rates soared again.

Which means every time they mention "tapering," the market sees deflation, though for some strange reason the Fed sees inflation. Real interest rates are higher now than they have been for many years, which will grind the economy to a halt.

Good point every time the Fed mentions tapering markets plunge. That means stock prices and other assets such as housing are artificially being held up by QE3 and just the mention of tapering off is as well received by wall street as the Hindenburg was.

There will be no tapering off and no easing of QE as the recovery slows and as Steve believes that in the near future we may even slip into the unthinkable called deflation, If that happens QE4 will arrive. There will be even more money printing until it just doesn't work anymore and than what?

"That means stock prices and other assets such as housing are artificially being held up by QE3"

Not necessarily.

Is money money?

http://www.nytimes.com/2013/07/01/business/as-pay-cards-replace-paychecks-bank-fees-hurt-workers.html?pagewanted=all&_r=0

What is "is"?

"That means stock prices and other assets such as housing are artificially being held up by QE3"

Gold and Silver plummeted by the most.

...While the dollar rose.

ah, ask bill clinton...

and btw, when am i getting that sidecar invite, its a very enticing time of year....

I'd certainly have invited you already, rangersfan, but for all this rain, which is forecast to continue for all eternity, and threatens to dilute the sidecars. That's called bad.

Did you know that Armand Hammer's great grandson Armie Hammer is playing your namesake, the Lone Ranger, in an upcoming feature picture? Yes, Soviet-loving bazillionaire capitalist oil baron Armand Hammer, the son (or grandson?) of the founder of the American Communist Party in New York. Not as fun as a cocktail party, I'm sure, but a party's a party.

Is petroleum money? Black gold. Russian tea.

its all relative, alan.

as for armie, he would have to be the grandson. sort of ironic that grandpa czar seemed to be a communist sympathizer yet he amassed his vast wealth in this bastion of capitalism. the Cossacks would have skinned him alone and they he wouldn't have fared any better with their namesakes.

I always thought your sidecars were destined for a table of one.....

*skinned him alive

Gold was up today. So was Apple.
Apple = Gold? http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1372732875655&chddm=49266&chls=IntervalBasedLine&cmpto=NASDAQ:AAPL;INDEXDJX:.DJI&cmptdms=0;0&q=NYSEARCA:GLD&ntsp=0&ei=rj3SUaiYOeq00QGBwwE

"...U.S. 10- to 30-Year Yield Gap Shrinks as Inflation Seen in Check...

...The difference between yields on 10-year notes and same-maturity TIPS, a gauge of trader expectations for consumer prices over the life of the debt, was 2.04 percentage points. The average over the past decade is 2.22 percentage points...."

http://www.bloomberg.com/news/2013-07-02/u-s-10-to-30-year-yield-gap-shrinks-as-inflation-seen-in-check.html

Still no inflation, or any expectation of it anytime soon.

"warren buffet is probably the most brilliant investor in modern times but"

Whenever anyone says this, I know they don't know Buffett. It's the "but" that gives them away. QED.

BSex, why do you like but so much?

I will take the bait, hb. bsex, nice try but you must do much better than that. buffet shuns gold and probably every other raw commodity because it obviously falls out of his investment universe. he has mastered the art of the valuation of business enterprises and has shown an unparalleled ability to invest in companies based upon his ability to break down those valuations in terms that all others are unable to grasp.

gold, and other hard commodities are just not in his sweet spot but doesn't diminish their value and proven attractiveness through every type of business cycle throughout history.

"Gold Falls as Dollar Jumps Most in Eight Months on Jobs...

Gold futures fell to a one-week low as the dollar headed for the biggest gain in almost eight months after U.S. payrolls rose more than forecast in June, fueling speculation that the Federal Reserve will scale back stimulus"

http://www.bloomberg.com/news/2013-07-05/gold-drops-to-trim-first-weekly-gain-in-three-before-u-s-data.html

Gold down, dollar up, again.

Dollar up relative to ...

Gold had a 20 year bear market from 1983 to 2003. It could happen again. I'll buy in 2031 at $600/ounce.

Bonds had a 30 year run. What's your plan there?

Bsexposur: Like.

Looks like Jason wants a little BSex.

are you tingling?

ewww, I don't want to think about C0C0 and tingling. Ewwww

eww, just eww, yuck, C0C0 tingling, yuck yuck yuck

enjoy your apple sauce.

yuck yuck yuck, C0lumbia C0unty, yuck yuck, and the weird apple sauce thing, yuck, just plain yuck

oh poor greenbergstein.

yuck

First Jason likes BSex, then C0lumbia C0unty is tingling with his apple sauce. Yuck

"Bonds had a 30 year run. What's your plan there?"

Don't buy bonds - or sell the ones you have. That one is easy.

BTW, my handle was meant to refer to the fact that I expose "BS" in my posts. I should have inserted a hyphen between the "BS" and the "exposer" parts. Oh well.

...and congrats on GLD having an up day finally. First one all year?

Of course, you are the victim.

there's a real tug of war going on in this market right now.....gold is gonna make a break one way or the other and i'm betting its lower...I don't think India is gonna be a buyer this fall.

"there's a real tug of war going on in this market right now.....gold is gonna make a break one way or the other and i'm betting its lower...I don't think India is gonna be a buyer this fall"

1) No, there is a third option - it treads water for years and loses value in "real" terms because of inflation.

2) The Indian Rupee keeps hitting all-time lows versus the US dollar for the past 2 years or so - reaching fresh lows very recently. Gold is priced in dollars.

And gold has been falling in dollar terms faster than the Rupee. Hence, Indians would have been MUCH better off buying USTs or other safe dollar assets than they were buying gold, and they have been really, really burned to the extent that they thought gold was a safe haven as opposed to the dollar. Although yes I know jewelry is a big driver there.

>2) The Indian Rupee keeps hitting all-time lows versus the US dollar for the past 2 years or so - reaching fresh lows very recently. Gold is priced in dollars.

>And gold has been falling in dollar terms faster than the Rupee. Hence, Indians would have been MUCH better off buying USTs or other safe dollar assets than they were buying gold, and they have been really, really burned to the extent that they thought gold was a safe haven as opposed to the dollar. Although yes I know jewelry is a big driver there.

racist.

Could someone please post today's gold direction, as well as the direction of the U.S. Dollar? I don't know where else it is besides this thread.

well for today the break was higher thanks to uncle ben. If oil keeps climbing into the fall India will not be buying lots of gold. they import 80% of their oil.

its more than a bit ironic and frankly quite amusing, that since jason the retard starting posting on gold's one day drops (which is meaningless in the bigger picture) and stevie jumping on that bandwagon, that gold has had a pretty significant rally right after those postings. then they suddenly stopped. as i said, meaningless in the bigger picture but when fools rush in.....

And the 10-year has started some movement as well. But the real one that makes me wonder is the WTI number. Why? I know many answers to my own question, and not many of them make me particularly optimistic.

What would make you optimistic?

Also, since you are not a lawyer, why would you have to formulate questions if you know the answer?

Shit christ almighty...WRONG.

"CPI for all items rises 0.1% in May; shelter rises, gasoline flat, food declines"

http://www.bls.gov/news.release/cpi.nr0.htm

"Medical Costs Register First Decline Since 1970s"

http://blogs.wsj.com/economics/2013/06/18/medical-costs-register-first-decline-since-1970s/?mod=WSJ_hps_MIDDLENexttoWhatsNewsThird

I take offense to that!! This year is the first year in 15+ of working that I ever got a letter saying that my health insurance premiums were going up 15% because of state/federal guidelines blah blah blah..everything I buy at the grocery store with the exception of soda costs more as well too. I stick to the basics and I say inflation is alive and well...PPI numbers today say that too.

Marco, please, unless someone posts on this thread what happened to the price of gold and the direction of the dollar, I'm completely in the dark. Jason hit his head again too hard this morning, so could you please do me and the rest of SE the favor? Thank you so much.

"Gold’s slide into a bear market pushed prices into the longest run below their 200-day moving average
since the 12-year bull market began in 2001. Bullion has settled below the 200-day measure for five
months since Feb. 11, the most since the eight months to March 2001, the year gold began the longest
run of gains in at least nine decades. Gold is now heading for the first annual drop in 13 years."

— Nicholas Larkin & Niraj Shah

_______________________________________

Over the past 12 months, the CPI has risen 1.8 percent and the "core" CPI has risen by just 1.6 percent. Food groceries are up 0.9% YOY. Less than 1%. Medical services up 2.8%, medical supplies (equipment, drugs, etc) up 0.1%. You are just plan wrong.

http://www.bls.gov/news.release/cpi.nr0.htm

Oh, and PPI does not factor in the 60% of the economy that is services, nor the (low) wages producers pay to get from from wholesale to retail.