IS Gold Money?

my grass roots research says inflation is alive and well. we'll see where we are in a couple months.

Idiots.

"Health Plan Cost for New Yorkers Set to Fall 50 Percent"
http://www.nytimes.com/2013/07/17/health/health-plan-cost-for-new-yorkers-set-to-fall-50.html?hp&_r=0

Jason the Retard forgot that this discussion was about gold, not healthcare.

Hunters berg the retard frequently forgets the topic of a thread, but he makes up for it by spamming the board with useless comments on ancient threads.

AR, you are forgetting that I am better educated than you. And I don't take money that should belong to others.
AR, you've taken substantially less vacation this year than years past - things ok in the family?

AR, tell us what the Ritholtz blog says or something equally useless.

Troll.

Thief

You being a thief is relevant? Well then congratulations AboutReady!

Troll.

Hi Aboutready. You seem more angry than usual. Everything ok at home?

Troll. Of the hb variety. Interesting.

That's what you find interesting? What happened to all of the bars and great restaurants, music venues, fitness facilities and playgrounds, and all those other wonderful venues and activities you have?

Troll.

Thief

If the Fed rules that banks cant be in physical markets, what does that do to metals? If it becomes more expensive to trade that would crush prices right ?

What was the price of gold today? Nobody's told SE for days and days, so how can we know what is going on? Jason, I'm really sorry for calling you a Retard, can you tell me the price of gold? Also, what happened to the dollar? Also, what is the weather in San Francisco?

does this mean you will stop calling him names?

Ok, I will no longer call Jason the Stuttering Retard any names. I will only call him Jason the Stuttering Retard which is just a factual description.

Maybe nobody in huntersburg green stein vons dale will talk to you. You seem to have found some friends on here, so what's the harm? You and the novice are made in heaven. Enjoy each other.

C0C0, you seem upset. What happened? Did a child smile at you? Did you walk through a flower garden?

upset?

of course not.

but....what is the situation in huntersburg green stein vons dale?

why will no one talk to you?

why?

You aren't a nobody C0C0, come on, look on the dark side.

what does the novice do to you?

I can't even describe it in written words

novice got your tongue?

"If the Fed rules that banks cant be in physical markets, what does that do to metals? If it becomes more expensive to trade that would crush prices right "

Banks do not DOMINATE the market now, they just participate in it. And all it would mean is that banks would have to separate parts of their commodities trading businesses, not all. Gold and oil ran way up in the 70s and early 80s before banks were allowed in. And pure investment banks, like pre-Crises Goldman Sachs (or today's Jefferies) or trading firms like Glencore would still be allowed.

This literally just applies to BANK-BANKS. So the answer is no.

And also the price in the long run is still supply demand.

> BANK-BANKS.

There's our stutterer!

I disagree... if it becomes more expensive to finance positions, I would think that would make non income producing assets that much more expensive and less attractive.

http://www.cnbc.com/id/100900759

given today's political environment towards wall street, I'd say banks will at the very least be exiting the commodity warehousing business.

what has resurrected this old post? the huge drop in Gold prices?

if it was ever money, now is about 35% less $ than back then when the blog was started, 2 years ago, around 2011/08. now it's "a little money".

the "poor's gold" silver, is even less $ than back then. the tiny retail investor got hit much harder than the gold bugs, losing about 55%.

wonder whether ultra-bug Paulson, who advised everybody and their dog to buy gold, has sold his chunk. it's funny that now he's advising joe-6-packs to buy a house. this guy without Paulo Pellegrini is NOTHING!

Marco, the news today suggests that commidities are MORE expensive because of what banks have done, not less.

http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-banks-pure-gold.html?hp&_r=0

But what is the price of gold? And what was the direction of the dollar? If no one posts it here, how will we know?

> Marco, the news today suggests that commidities are MORE expensive because of what banks have done, not less.
> http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-banks-pure-gold.html?hp&_r=0

RIDICULOUS article!!! Aluminum has been in a very well defined bear mkt. is anybody in the NY Times financially literate?

Yes, so if their activity was removed then they would be cheaper. What Im mostly looking at is the banks ability to help finance positions for themselves and clients..if it becomes more costly to keep these positions, I would think a non income generating asset would become less attractive. but hey what do I know...august gold just punched through 1300

about three weeks ago

"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."--renterjoey

hahhhaaha...I was looking for that. probably hit 130 tomorrow...good for you..im gonna cover some of my short unless futures come back under 1300 in the am

>Great my buy order was filled at $115.80. for the ETF GLD.

Please compare to having purchased AAPL at that time.

> Yes, so if their activity was removed then they would be cheaper. What Im mostly looking at is the banks ability to help finance positions for themselves and clients..if it becomes more costly to keep these positions, I would think a non income generating asset would become less attractive. but hey what do I know...august gold just punched through 1300

of course, it's a consequence of ZIRP which was used to keep more Americans above water on their homes. it's fine with me to find alternatives to financial repression. the cost of the housing bubble should be paid by homeowners, not everybody else.

Marco, banks would still be allow to lend to commodity trading firms and the trading desks of end-users. Its the whole idea is should they be able to own the physical commodities, I believe.

Remember, all during the 70s and early 80s when commodity prices were exploding, bank-banks could NOT do what they do now.

Here is the real issue:

Bernanke: Nobody Really Understands Gold Prices

http://blogs.wsj.com/economics/2013/07/18/bernanke-nobody-really-understands-gold-prices/

Which is what I've been saying all along - there is no rhyme or reason as to why gold has the price it does. You can trade it, as long as you think you'll be able to sell to somebody willing to pay more for it than you did.

Why he would, though, remains a mystery.

Time to get back to the gold standard. Interesting that Nixon said we will be temporarily going off the gold standard. Meanwhile the money supply went into the stratosphere after the that.
I liked when Regan said if you had held a stack of 1000 bills in your hand and it was 4 inches high you would be a millionaire. On the other hand 1 trillion dollars would be a stack of 1000 bills 67 miles high.

so a stack $1000 bills (if we printed it) would be approximately 1200 miles high to equal our current debt.

How many ounces of gold equals our current debt?

Which gold standard would you like us to go back onto, renter? (Or whatever your real name is, given your cut and pastes from pro-gold blogs.)

Do enlighten us.

As President Richard Nixon stated we will be temporarily going off the Gold Standard. Now that's funny Stevejhx is a supporter of tricky dick's mandate for going off the gold standard.

Nixon supported lots of things many Americans now support. Hell, even the Nazis were the first country to correctly say smoking is bad for you (decades before the US I might add.) Just because a particular person or group did one or more things bad does not mean everything they did was bad.

What???

"even the Nazis were the first country"

Now that's something to ponder.

Actually, Abraham Lincoln took us off the gold standard, as did Woodrow Wilson and FDR.

Nixon didn't take us off the gold standard. Charles de Gaulle did.

I'm still waiting for you to tell us which version of the gold standard you support.

"Anti-tobacco movement in Nazi Germany"

http://en.wikipedia.org/wiki/Anti-tobacco_movement_in_Nazi_Germany

I think we know now it was Jason who created the offensive account maybe 6 months ago that SE was forced to delete.

"....Many conservatives, including the publisher Steve Forbes and Larry Kudlow of CNBC, always say that gold is the perfect forward indicator of inflationary expectations. I’ve often heard Mr. Forbes say that the price of gold is like a thermometer that continually gives us inflation’s temperature in real time.

Most economists think that’s ridiculous, but insofar as the gold price reflects inflationary expectations, its falling price is impossible to reconcile with Fed policy. The Fed has not decreased the money supply and continues its policy of “quantitative easing,” which [in fact] means further increases in the money supply..."

http://economix.blogs.nytimes.com/2013/07/23/inflationphobia-part-iii/

Japan blew the heck out of their currency and still had deflation so I don't believe the currency devaluation / money printing = inflation argument holds true in all cases.

Marco, you'd think 20 years of this in Japan and the Goldbugs would learn, but no.

How long have people been smoking since they were warned by your good friends?

Still waiting for Renter to tell us which version of the "gold standard" he'd have us adopt.

El silencio otorga.

And no, "printing money" does not always cause inflation.

The Carlos Danger name of Steve jhx is Felipe Gamble.
http://www.slate.com/articles/news_and_politics/low_concept/2013/07/carlos_danger_name_generator_use_our_widget_to_get_a_name_like_anthony_weiner.html
Hunters Burg translates to Raul Violence, and Jason10006 is Stuttering Retardo.

safe to say the higher rates = lower gold relationship is getting stronger

back below 1300

"Gold Posts Longest Losing Streak Since May as Dollar Advances

Gold futures fell for the fifth straight session, capping the longest slump since May, as a stronger dollar crimped demand for the precious metal as an alternative investment"

http://www.bloomberg.com/news/2013-08-05/gold-advances-for-second-day-on-outlook-for-stimulus-demand.html

Yes, for sure hyperinflation is JUST around the [YAWN!!!!} corner...

Goldfinger was the real hero and James Bond the real villian.

http://www.slate.com/blogs/moneybox/2013/08/09/economics_of_goldfinger_bond_bretton_woods_and_harold_wilson_s_austerity.html

But just after Jason said gold was down, gold went back up. Now what?

Looks like Clarence Beeks may of delivered phony documents to the gold bears. While Mortimer, Randolf Duke and the rest of the population have been shoring gold they are about to get squeezed .Now where is Clarence Beeks?

Hove you heard Japan is now over one Quadrillion in debt. http://money.cnn.com/2013/08/09/news/economy/japan-debt-quadrillion/

I wont be covering until sometime in the fall. oil is up and the Rupee is down so I dont see India being a buyer down the road. only time will tell.

"Rand Paul Is Dead Wrong About Milton Friedman’s Views On The Fed And Monetary Policy"

Read more: http://www.aei-ideas.org/2013/08/rand-paul-is-dead-wrong-milton-friedman-would-have-supported-the-feds-bond-buying/#ixzz2bmMJdm9r

"[Milton] Friedman’s 1998 comments on Austrian economics:

I think the Austrian business-cycle theory has done the world a great deal of harm. If you go back to the 1930s, which is a key point, here you had the Austrians sitting in London, Hayek and Lionel Robbins, and saying you just have to let the bottom drop out of the world. You’ve just got to let it cure itself. You can’t do anything about it. You will only make it worse."

http://krugman.blogs.nytimes.com/2013/08/12/synthesis-lost/

last week "back below 1300" macro

Yes time is the is the ultimate truth.

Golden apple....

"wont be covering until sometime in the fall. oil is up and the Rupee is down so I don't see India being a buyer down the road. only time will tell." macro

India will still be buying but China will be the biggest buyer of physical gold.

http://www.ibtimes.co.uk/articles/498516/20130812/gold-bullion-consumption-physical-buying-prices-imports.htm

China to Overtake India as Top Gold Consumer

Gold sales in China surged in the first six months of 2013 and the leading producer of the metal is likely to surpass India as the world's top consumer this year.

China consumed 706.36 tonnes of gold in the first half of 2013, up 54% from a year ago, the China Gold Association (CGA) said. The world's second largest economy consumed about 460 tonnes of gold in the first half of 2012; and 832.18 tonnes over the entire year.

Shoppers across China loosened their purse strings when the prices of gold fell. Gold prices have lost about a fifth of their value this year.

The CGA added that output in China touched 192.82 tonnes in the first six months, up 9% from a year ago.

Higher interest rates will hurt gold as well. we'll see what happens.

Milton Friedman in 1999:

"I think the Austrian business-cycle theory has done the world a great deal of harm. If you go back to the 1930s, which is a key point, here you had the Austrians sitting in London, Hayek and Lionel Robbins, and saying you just have to let the bottom drop out of the world. You’ve just got to let it cure itself. You can’t do anything about it. You will only make it worse. You have Rothbard saying it was a great mistake not to let the whole banking system collapse. I think by encouraging that kind of do-nothing policy both in Britain and in the United States, they did harm."

http://www.hoover.org/publications/hoover-digest/article/6459

Meanwhile, Friedman is dead and we still have gold.

"Losing Faith in Gold From Ghana to Vancouver Proves Rout [has already happened]

http://www.bloomberg.com/news/2013-08-13/losing-faith-in-gold-from-ghana-to-vancouver-proves-rout.html

All these negative emails about gold have me depressed. I bet gold is doing poorly, so sad.

http://gothamist.com/2013/08/16/video_hilarious_hypocrite_only_want.php

Gold is Money, Get Over it
http://pragcap.com/gold-is-money-get-over-it

Since I can no longer reliably rely on Jason to give the price of gold on this thread, I learned how to look it up myself. Nearly $1400.

Gold not doing well, neither is Apple. Hmm

question is, does it hold 1300 ?

"Gold is Money, Get Over it"

Alas, it's not, by the very definition given in the piece: "anything that is accepted as a means of final payment can serve as a form of money"

Gold is NOT "accepted as a means of final payment can serve as a form of money" anywhere on the face of the earth. Now, an individual might want to accept gold in payment of some obligation, but that does not make it "money"; it makes it

"consideration noun a payment or reward. > Law anything given or promised by one party in exchange for the promise or undertaking of another."

whereas

"money noun a medium of exchange in the form of coins and banknotes."

At present, gold does not fit that definition. It is not a medium of exchange, because to be such it would have to be universally accepted, which it's not. Coins can be made of gold but it's not the gold that makes them valuable; they may be worth more or less than their weight of gold in money terms. What makes coins valuable is that they are a means of exchange.

Money is nothing but a pricing mechanism. That is why it does not need to be backed by any "thing."

Unless you're in an 18th century mercantilist mindset.

So when the real currency collapses, and you manage to get hold of your physical gold, what do you do then? Does everybody walk around with snippers and scales? Would people come up with pennies or shells or some other less-valuable thing to trade with?

John Oliver: wheelbarrow full of krugerrands.

Steve, what brings you back to NYC this time of year to talk about gold and money?

That article is dumb. Few people need forex on a routine basis, and even if you do it can be done quite easily at Chase.

fieldchester, why are you bringing back greenberg?

Hi aboutready, are you getting ready for the upcoming vacation?

is that why you change identities so often?

I've been told by that renowned travel expert, truth, that nobody cares about my vacations, although she regales us frequently with hers. truth has no concept of irony.

I'm always looking forward to the next vacation. Hopefully next year my husband won't be going to trial in the fall.

Oh, and fuck off.

Wishing your husband good luck, lord knows your family eats based on lawsuits. But the Fall trial, what about your upcoming vacations this year, not the one all the way next year?

Reuters: Why Conservatives Spin Fairytales About The Gold Standard

Read more: http://www.businessinsider.com/why-conservatives-spin-fairytales-about-the-gold-standard-2013-9#ixzz2fByFfVxP

ouch!

http://www.usatoday.com/story/money/business/2013/09/22/new-100-dollar-bills/2849643/

pow!

Well gold is money to me. Bought a major north American gold mine outfit back in June and up 25%.

that is truly pathetic.

stick to cream cheese.

C0C0, jealous of Riversider? 25% return in 4 months is pathetic? How much did you make listening to w67 by buying Apple or Sprint?

jealous?

riversider is an idiot.

hey, i just made 25% on cream cheese futures.