CNBC: Gold Is No Longer a Safe Haven

In the face of escalating derivatives and sovereign debt crises, the cartel trots out hundreds of millions of ounces of PAPER gold and silver (as evidenced by Wednesday’s 500 million ounce paper silver dumping in 1 hour) and dumps them on the market en masse uncaring of the price of bids, to induce waterfall declines in the metals.

Que the MOPE machine, who then rides in and attempts to scare the public out of gold and silver by claiming things like ‘Gold is No Longer a Safe Haven‘.
Of course it must be a coincidence that the senior writer who published the BS for CNBC happens to be an ex-commodities trader both AIG and Drexel Burnham Lambert- the infamous silver shorts.
Spechler goes to great lengths to convince investors that gold is a commodity, and it is not gold that is the true safe haven, but the dollar.

This keeps the sheople from even considering converting face-palm shares into physical gold or silver- at one of the best  stacking opportunities since 2008.

Why Gold Is No Longer a Safe Haven for Investors
By: Lori Spechler
Senior Editor, CNBC

After falling five of the last six trading sessions, gold has given up all of its gains for 2012, settling at its lowest price of the year.
With financial turmoil in the euro zone and global growth slowing, market watchers are starting to ask, what is driving the price of gold lower?

Nouriel Roubini, cofounder of Roubini Economics raised the question on Twitter today:

“Gold down to $1562. Gold bugs hiding deep in their gold caves pondering why gold isn’t rallying in spite of sharp spike in risk-off sentiment.”
When financials systems are stressed, money tends to flow to “safe havens” which for some investors, includes gold [XAU= 1559.40 -1.68 (-0.11%) ]. The reality, however has been different—money has been moving into the “safe haven” of the U.S. dollar and away from commodities including, gold. (Sorry, nice try, but gold and silver are not mere commodities, as much as CNBC and The Bernank would love you to believe otherwise)
Read more from CNBS:

Comments

  1. Lori Spechler, spokesperson for the Ministry of Information, would also like to inform you that oxygen is no longer healthy for you to breath.  Please stop breathing now.

  2. All that jumps to mind is “SD Hall of Shame”.

  3. Eye opening thoughts from Richard Russell,
    especially remembering a lot of peeps predicting a 1:1 Gold/Dow
    ratio.
    “…This is one you can tell your kids about…. yes, this is a
    continuation of the bear market. But it’s starting out in a stranger way than
    any bear market I’ve ever seen……We are entering the second half of the bear
    market … After all these years following markets, sometimes I have the feeling
    that I’ve seen everything. But not this time…..”
    “….There are so many potentially bearish scenarios in the wind that my
    head is spinning. Last night, I noted that the Dow futures were down 55 points.
    I can’t remember ever seeing a series like this in my lifetime. As a loyal
    American, I’d feel better if people were scared out of their wits. What’s it
    going to take to scare people — the Dow going down to 4000?
    “…Frankly, there’s something eerie about what’s happening….To be
    honest, what’s happening is almost beyond analysis. I have nothing to compare it
    with.”
  4. I would tend to disagree. You can buy a car, groceries and pay bills with cash. Gold and Silver is insurance against hyperinflation. It is not money not matter how much you wish it to be until the majority of people prefer it to cash. Is that today’s reality? Of course not ergo until that day comes it is still a commodity. Don’t hold your breath or a currency backed by gold or silver. TPTB would never stand for it. Regardless, you won’t see Bernanke emptying out Fort Knox or the NY Fed vault. If they did dump all the gold the US owns the price would plummet IMHO.

  5. The reality, however has been different—money has been moving into the “safe haven” of the U.S. dollar.”

    The above statement may technically be true, except for one small detail.  What do they mean by ‘money’?

    They are not really talking about real money, but counterfeit money (ie, fiat currencies).  They are saying, ‘Fiat currencies have been moving into the ‘safe haven’ of fiat currencies, the U.S. dollar.’

    Seen in that context, it’s good to be part of the minority of people who entrust their wealth to stores of silver and gold instead.  After all, silver and gold continue in their time-honored roles as real money (stores of value) by definition.

  6. There was a very stark essay from Graham Summers, Gain Pain blog.  While he  also wants to sell his services, he provided the best analysis of what will happen in Europe and consequently in the US. 

     Much more concise than Jim Willie but on the same page, he synthesises the facts down to a simple set of statements.  Merkel has had a belly full of German impoverishment to save the PIIGS.  There will be no additional LTRO since the ECB is leveraged to near bankruptcy and Germany won’t kick in another pfennig to buy another one month of sure-to-fail bailouts.    Greece will exit with tragic consequences for the rest of Europe and leave the Greeks in terrible shape.  Spain will follow shortly but will  be 10 times the financial disaster.

     There will be  no  FED  printing to save the Euro or Europe. Ben Bernanke will not fire up the printing presses to do this nor will the IMF   The political sentiment is dead set against this action  We just wasted $600 billion and took back soon-to-be worthless collateral for another $1.3 trillion and bought 2 months.  Germany is tapped financially and on the hook for $1 trillion. The Euro bonds will be a non starter.  The German banks have $600 billion to stop gap the damage of the rolling defaults in the PIIGS. This will allow them to save their banks and exit the PIIG Eurozone, forming a northern tier Euro with Russia. 

      China is going into a recession with train traffic down, electrical growth rate at near zero and loans to ghost cities dropping like a rock. Their property and housing market is overbought and will crash.   China will not lend/send more money to Europe even though they share the largest trade balances.  China is not broke but they must run stimulus to keep their economy afloat. With  1.3 billion restive citizens with lots of unlying anger are getting the attention of the Chinese leaders and coups are not unknown, TPTB in China are not going to sign a suicide pact with the dying Europe (my emphasis).  There is not enough money is the whole world to save Europe.  Whatever deeply buried powers and precious metals wealth, Illuminati, FreeMasons, Bilderbergs etc will have some interesting opportunties when the systems go down.   Hyperinflation is a possibility but its overall global effect will be just as terrible as currency collapse.  They may be much the same

  7. LMAO No wonder CNBC’s Ratings are collapsing. Also the people that are putting their money into Dollars for a safe haven is surely not Americans but Europeans who don’t know any better. We stackers know where it’s going. O! bye the way JPM today just announced that they are trying to get into the Copper Derivatives Market here we go again. LMAO Keep Stacking Folks.

  8. Queenbee You’re right, it will take some time for people to realise that gold and silver is money. It is therefore wise to keep some cash at home. However, the fact that people don’t prefer it to cash yet, doesn’t take anything away from gold and silver’s intrinsic value and the fact that gold and silver is real money whether people want to accept it or not. In some States the use of gold and silver as money are already catching up nicely. In fact, as history as proven time and time again, when the fiat currencies collapse, people always in the final equation rush towards the safety net provided by gold , silver and tangible assets. Needless to say, the majority of people will join the gold and silver rush way too late, but they will only have themselves to blame.

    Needless to say, whatever the argument, it is stupid to claim that “Gold Is No Longer a Safe Haven”. Such claims are by large only designed to keep people away from honest money (gold and silver).

  9. Should be Lori Speechless, or Speakless

  10. If they can’t short it to death, they’ll talk it to death.

  11. Could this be the reason why silver prices held up so well today relative to gold’s price drop?:

    Marketwire 5/24/12:
    ‘China Gains Approval to Begin Trading Silver Futures’…

    …’Silver will look to rally in 2012 on the emergence of Chinese Silver futures and increased fabrication demand.  According to China Daily the Shanghai Futures Exchange recently gained
    approval to begin trading silver futures. “There has been an absence of a
    means of trading in silver in China,” Wang Ruilei, an analyst with
    precious metals trader CGS Co Ltd, said to China Daily. “The market will
    be bigger and more liquid with the advent of these futures contracts.”‘

  12. Consider this! The sheople need to awaken. We, here at silverdoctors and other sites, are breaking our humps to inform “John Q Public”. We get through to some but not all. If they choose to listen to the MSM, then so bit. Let them run to whatever fiat they believe in and suffer the consequences. Run from the bully. This is just a lot of talk as I will continue to try to inform. But, if the people don’t listen, the they will hang on the tree of woe when the deal goes down.

  13. Queenbee is, of course, confusing “money” with “currency”. The two are very different. Unfortunately, in today’s globally insane world where everything is forced to be exchanged for paper, most uninformed people such as “queenbee” can’t see the difference.

    The best way to illustrate this without giving standard definitions from some entry in the Webster Dictionary, is to perform the “savings” test on each.

    If you save currency, for a few years, you will most likely, (maybe 85% of the time), notice that your currency will no longer pay for that same can of beans, gallon of gasoline, or that electric bill.

    Thus, something happens to currency. Things become more valuable, because the cost of labor to produce them rises, but that currency just sits there, frozen in time, possessing a “declared value” determined by the present cost of labor it took to create it–as long as the faith in the authority that declared it to have value, (by FIAT), remains in tact. I say this from the point of view of a regular citizen vs. a bankster, who can create it out of thin air, by I digress.

    If you save gold, (or silver), you will most likely, (maybe 85% of the time), notice that your precious metal not only pays for that same can of beans, gallon of gasoline, or
    that electric bill, but it “more than pays for it”.

    Thus, something happens to precious metals. Things become
    more valuable, but so does that gold or silver in your hand. Yes, it just sits there, frozen in time,
    but it possesses a “value” determined by the future labor it’ll take to create it. I say
    this from the point of view of a regular citizen vs. a bankster, who
    can’t create it out of thin air, by I digress again!

    RE-READ—The Above Paragraphs for further clarity on the subject. Yes–I wrote that. I didn’t find it in some archive of what some past president said.

    So–What’s the conclusion here?—Well, if you save gold or silver, (money), it keeps up with the future cost of the labor required to produce the goods and services you want. If you save currency, (paper bankster notes), you freeze it’s purchasing power at the moment you acquired it.

    Thus, Precious metals are money, paper bankster notes are currency. And yes, you save gold and silver–you spend currency.

    You also touched on another subject where you were additionally dead wrong. You said people can’t spend their gold to buy groceries. You are technically right, but you’re still dead wrong. The only reason why you can not literally go into every grocery story to spend your gold or silver in a direct exchange is that the banksters have placed rules against it–declaring, by fiat, that only paper bankster notes are exchangeable for goods and services.

    They go one step further by saying, paper banster notes are “money”–and people like queenbee believe it. That’s call “INFORMATION FOR PUBLIC CONSUMPTION”. Don’t concern yourself with this BS–it’s bad for your health.

    This does not mean you can’t trade your gold or silver for “things”. It can be done easily with good results. There are places called coin shops or even banks such as those in Canada, that allow people to exchange their gold and silver for currency.

    If you were holding that gold for a few years, you’ll actually get more currency now than you spent on it in the first place. You then take this currency to the grocery store to buy cans of beans. This is why paper bankster notes are called “currency”. They CURRENTLY buy goods and services. They will not pay for FUTURE goods and services. Got it?—good…I’m glad to be of help to you Queenbee.

     
      

  14. Queen Bee has an insightful thought. However, I have to agree with Jake. Currency vs. money. “There will be no FED to save the Euro per AGXIIK”. ACCURATE AND TRUE”. PRESERVATION FOLKS. PM’S DOWN BUT SO IS GASOLINE. YOU CAN STILL EXCHANE AND BUY THE SAME AMOUNT OF GAS WITH 1 oz. SHTF and you will increase your purchasing power. Period>

  15. 2 OZ. Exactly, we are not selfish about it, we’re trying to inform people, but the majority choose to ignore us. Needless to say, I expect that it will be the majority that will vote for the reinstatement of fiat money when the current fiat currencies utterly and/or completely collapse, especially when they have no physical gold and/or silver to fall back on. I however also believe that those of us who do have honest money to fall back on in the final equation, are not going to take any BS. I for one will not part with my honest money just because of a popular vote in a so called democracy made up of a bunch of fools. The very same fools who will help the banksters to enslave us if we allow it.

  16. Is This Queenbee?

    Or Maybe She Now Works For?

  17. You’re right Jake, there is a difference between money and currency.

    “They CURRENTLY buy goods and services. They will not pay for FUTURE goods and services” – I love this part. lol

  18. Right on SB. There will come a time when you need to sell some, not all, of your PM’s or trade for land or something else of value. Don’t miss the opportunity. For the most part, taking my silver would be an act of war and treason. Honest money, honest people and I really wish some of you like minded people lived close. Chicken is smoking and I’ve got to get to the grille. Be back soon.

  19. “Honest money, honest people and I really wish some of you like minded people lived close” – You’re spot on 2 OZ. This is my sincerest wish as well.

    lol I feel completely isolated where I live in terms of not having like-minded people to share some of the stuff. lol If I could get an ounce of silver for every time I pondered how I am going to get to like-minded people when they switch off the internet (or some other shit happens), then I would have been the wealthest person in the world by now. In fact, the thought of having our own ”Silver Republic” has come to mind earlier today, a republic where we treasure honest money, honest people and all that is good. lol Call me crazy, but that is my heart’s deepest desire. Maybe we should all team up, buy our own island and start our own republic.

  20. I have more Silver in my stash than Money and it’s worth more than when I bought it. Does this mean I’m pennyless? LMAO

  21. Medical statement just came through for the little one’s trip to the hospital, ICU and what have you… so far our medical scheme has paid all the cost… it works out to over 200 ounces of silver. I am so glad we upgraded our medical plan earlier this year.

  22. By the way 2 OZ., enjoy the chicken! I am off to bed now. It is 01:30 in the morning here and I am on “pajama drill” and/or duty.

  23. Chicken has been flipped. I think most of us here are in the same boat Marchas45. All in and more PM’s than cash. I could be wrong, and I was once, but I’m not taking any chances. Silver it is. SB has a great idea. A whole island of like minded people. The Peoples Republic of Silver. LOL>

  24. Sleep tight SB. Dry rub for the chicken. Chili powder, garlic, crushed red pepper, Lemon Pepper, Parsley, sear for 1 minute on each side and slow cook of 20 minutes on each side (Thighs. 20 minutes each side, for breasts, 10-15 minutes each side). Veggies – Squash, mushrooms, bell pepper, onion topped with a slight bit of garlic and black pepper in a tin. Add butter (one stick) and not margerine. Cook aslong side chicken and enjoy with a cold beer.

  25. Just a few points hear.

    Anybody thats is that dumb to take investment advice from NBC let alone watch the station in the first place need not stack!
    Anybody who can not see with there own two eyes what is going on, need not stack.
    Anybody to lazy to learn, to teach them self history and the fundamentals of PMs vs Fiat, need not stack.
    You & I have our heads out of the sand. We look around and see what is going on. We know how to decipher information as being true or not. We put time and energy to teach, to lissen, to look into history and curent affairs.
    Im sure most of if not all of us would rather spend fiat on fun things and toys. To go about our life worry free knowing our government will protect us from harm.
    But we can’t! I for one haven’t drank any Kool-aid since I was 15 years old. 
  26. Some day,  at a time in the future when we can remove the cloaks of anonymity, we silver seekers could all raft up and share our ideas face to face.  Simon Black, The Sovereign Man,  had a post today where he told a story about finding a 1996 US Silver dollar on a trail near Emerald Bay, Lake Tahoe.  He asked several people, including a few casino dealers, how much they thought it was worth. . All stated $1.  I sent Simon an email thanking him for finding my dollar   I’m sure it’s the one I lost a couple of weeks ago while hiking beside the lake.  lol.

    So with silver dollars falling out of people’s pocket near my neck of the woods,  my suggestion is that this area is pretty nice, near the Comstock Lode  and a fine place to get together.  There are many great  places to meet in  Nevada, the Silver State.   Just thinkin’    Besides which, the casino dealers are pretty slow so you could pretty nicely at the tables.

  27. AGXIIK, that was a great summary of events that will happen but timing is the hard part.  With all the elections around the world this year, it’s very hard to predict the timing of the biggest global meltdown on this planet.  The Fed has bailed out Europe during this whole mess.  There was a 16 trillion dollar discount window the the Fed gave to the European banks last year.  The Fed has been doing a stealth mission of bailouts like swaps.  I don’t believe the central banks of the world will just sit back and let the world die with deflation.  They are not done raiding our pensions, 401k’s, savings, and other assets.  They will keep this train wreck going for a little while longer.  Eventually, this mess is going to end in war.  Revolutions, civil wars, maybe a full on world war.  The world is in a sad state.  Trying to convince others of these events is like talking to a wall.  People just don’t want to hear it.  I have given up talking to people about this topic.  I get so frustrated and angry.  Thank god for forums and websites like this.  This is the only thing keeping me away from the nut house and a straight jacket.  I still have faith in some people.  It’s going to be a bumping ass ride in the next few years.  The reality is that not all of us will make it through this disaster.  You can only prepare your mind, body, and soul for the future.  The hard part is waiting around and seeing the global nightmare coming closer everyday.  I make sure I appreciate the little things in life.  I make sure I spend time with my family and friends. 

  28. LMAO AGXIIK. Great idea. Listen up DOC. When things finally settle down, an SD reunion is in order. Bring your musical instruments. Music by the fire, a pig roasting all day long, silver stories from yonder, games, dancing and a whole lot more. I’m ready.

  29. Hope your Wee One is OK! SilverBullion. I know the Wee One was in good hands. LMAO

     

  30. Are ya listening Da Yooper and Crazy Canuk. I have a feeling a campout in Nevada would be right on time for ya’ll as I know it is for me.

  31. SB, I hope all is well with the little one. Thoughts and prayers are bountiful from me and others on this site.

  32. AG, It’s not far for me since Im in California.

    Jake, Exilent post anybody with there ears & eyes open can get it. But the vid she never said what gold was backed by? Do you know.. ha ha ha She need not stack since our government dose not back gold. Ha ha ha I still can’ believe she said that on air.
    2oz your making me hungry 
  33. Done for today guys/gals. Have a good good evening and good night.

  34. Then why does our goverment have all that supposed gold in Fort Knox ? (No Value) Wait just a minute I got it! It’s for future space travel as gold is the best metal for space travel, yea that’s it. God I’m Smart. LMAO

  35. Thank goodness we all have sites like this to vent, opine and express our opinions.  Otherwise, my wife would probably beat around the head and shoulders with a stick.   The idea of getting together might be a worth thought for next year.  Many things will happen and the timing is nearly impossible as Jake and Plebian so astutely noted.  Like someone said, 85% of the time it’s noted that 94% of statistics are just guesses. 

    It would be fun to met like minded people after the elections and world events seek their own levels.  If there are enough people interested then it might not be too difficult to talk to the manager of the local Hyatt in Incline Village.  He’s in my Rotary Club.  Maybe some of the heavy weight silver speakers would like to attend if the price is right   A few silver rounds rolled their way.  Eric Sprott might like to vist some of the local silver mines. Who knows.  More later on all that.

  36. I did win a lot of money at Harrah’s one week and the New Sage Brush Ranch in Carson City was rather exciting if you know what I mean. I’m in!

  37. Ah! No Hyatt for me AGXIIK. A little spot of dirt, a good tent or a blanket roll (depending on the weather) will be great. However, if the weather is nasty, my wife will insist on the Hyatt. LOL.

     

    Seriously, be careful guys, time is short. I’m sure some or all of us will have a great gathering someday.

  38. I’m as typical looking at what was said by these MSM lackeys from a some what different angle… Last year when gold was near and at its record highs MSM was saying how much of a safe haven gold was… Once gold rose over $1700 and kept climbing that is all they were spouting off at the mouth about… All they could say is buy buy buy… For giggles I kept track of what they were saying… The HIGHER gold climbed the MORE they said you must buy as much as you can… Everyday I heard this I was scratching my head thinking why would they tell you to buy anything after it had gone up hundreds of dollars over the old record high? Everyday it climbed they pushed the issue harder… Then I took notice that the majority of the MSM do the same thing with stocks or anything else… They play after the fact genius… Cause the very same day the metals started to fall instead of saying it’s a buying opportunity they focused on and SCREAMED GET OUT… They have been saying since the price fall it’s not a safe haven… Since the price fall all they can say is metals aren’t worth buying, holding, or looking at… All they can focus on is how much people have lost since end of last year and how the price can’t and won’t recover…

    The way I learned is if you have something that you believe is fundamentally strong and you see a bright and necessary future, as in the gold and silver market, you buy on dips… You don’t scream get out at the bottom like MSM has… If you must sell you try to catch a peak to sell… Why would you tell someone to buy at or near the top and sell near bottom? Why anyone with half a working brain would take that advice no matter who it’s from is beyond me… They deserve to loose there shirts then….

  39. As for a safe haven… I would love to ask these reporters while on TV what is a true safe haven? Why would they dare say the dollar or bonds or anything other than PM’s could be a safe haven… I’d love to hear there answer when asked if  you held everything in the dollar and woke up tomorrow to find out Obama owitz did another “secret” signing of a bill over night that cut the dollar value in half or something along those lines… Or if the dollar totally collapsed… I bet the metals we hold would all of the sudden look incredibly good… I bet they would be crying the blues due to the fact they woke up to find out they had lost there shirts and couldn’t afford to go buy a new one…
    To say Gold isn’t a safe haven is to show ones true stupidity… I’m jus sayin…..
    Convert what you can and add to the stack… Cause no matter what the dollar is worth or what currency is in play you still have the same number of oz’s you did until you add or subtract them….

  40. Thank you for all the messages  of support. Much appreciated. The little one is doing much better. :-)

  41. 2 OZ. “Dry rub for the chicken. Chili powder, garlic, crushed red pepper, Lemon Pepper, Parsley, sear for 1 minute on each side and slow cook of 20 minutes on each side (Thighs. 20 minutes each side, for breasts, 10-15 minutes each side). Veggies – Squash, mushrooms, bell pepper, onion topped with a slight bit of garlic and black pepper in a tin. Add butter (one stick) and not margerine. Cook aslong side chicken and enjoy with a cold beer” – Hell, now you have my mouth watering. lol

  42. Wow, ok so gold is not a safe haven asset. Who knows–maybe three years from now we’ll see our nation reaching in to history’s playbook on solutions to this financial problem:

    1.> create a new currency

    2.> set up a national moral value system and prosecute the offenders

    3.> Shutdown the stock exchange

    4.> Create national solidarity to unify all that has been broken

    And with great irony I submit this quote:

    Internationalization today means only Judaization. We in Germany have come to
    this: that a sixty-million people sees its destiny to lie at the will of a few
    dozen Jewish bankers. This was possible only because our civilization had first
    been Judaized. The undermining of the German conception of personality by
    catchwords had begun long before. Ideas such as ‘Democracy,’ ‘Majority,’
    ‘Conscience of the World,’ ‘World Solidarity,’ ‘World Peace,’ ‘Internationality
    (sic) of Art,’ etc., disintegrate our race-consciousness, breed cowardice, and
    so today we are bound to say that the simple Turk is more man than we are.

    No salvation is possible until the bearer of disunion, the Jew, has been
    rendered powerless to harm. “

    7. AS FOUNDATION FOR A NEW CURRENCY THE PROPERTY OF THOSE WHO ARE NOT OF OUR
    BLOOD MUST DO SERVICE. If families who have lived in Germany for a thousand
    years are now expropriated, we must do the same to the Jewish usurers.

    8. WE DEMAND IMMEDIATE EXPULSION OF ALL JEWS WHO HAVE ENTERED GERMANY
    SINCE 1914, and of all those, too, who through trickery on the Stock Exchange or
    through other shady transactions have gained their wealth.

    Extremes must be fought by extremes. Against the infection of
    materialism, against the Jewish pestilence we must hold aloft a flaming ideal.
    And if others speak of the World and Humanity we say the Fatherland – and only
    the Fatherland!”

    –Adolf Hitler”

    Sounds insane doesn’t it? But saying gold isn’t a safe haven asset is just as insane in my book.

    I wonder if all the stackers will be the “Jews” who will be despised because of their wealth when the greatest transfer of wealth occurs from fiat to PMs. I know all this sounds a little off topic but seriously, I quote again–the “Jew” could be you. Despised by all for your wealth.

    “The Jew has not grown poorer: he gradually gets bloated, and, if you don’t
    believe me, I would ask you to go to one of our health-resorts; there you will
    find two sorts of visitors: the German who goes there, perhaps for the first
    time for a long while, to breathe a little fresh air and to recover his health,
    and the Jew who goes there to lose his fat. And if you go out to our mountains,
    whom do you find there in fine brand-new yellow boots with splendid rucksacks in
    which there is generally nothing that would really be of any use? And why are
    they there? They go up to the hotel, usually no further than the train can take
    them: where the train stops, they stop too. And then they sit about somewhere
    within a mile from the hotel, like blow-flies round a corpse.

    –Adolf Hitler”

    http://propagander2.tripod.com/index-12.html

     

  43. It’s a good recipe SB. The only catch is you must have real silverware to eat it with. LOL.

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