In this excellent interview with the Sound Money Campaign, gold & silver mining analyst Jay Taylor states that The REAL Prices in the Monetary Metals Will Rise Again, Despite Gold’s “Death Cross” and Bankster Manipulation, and that pricing Gold in Dollars is a Fraudulent Measure The FED Needs You to Believe.
Taylor’s full interview is below:
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@Doc Heads Up Doc link not working.
http://www.youtube.com/watch?feature=player_embedded&v=9l7DH07lGik
thanks Marchas45 , should be working now.
-Doc
Hell I believe in the Dollar, I BELIEVE it’s Paper, Losing Value. Burns Easy, Easy To Print, It’s Counterfeit Money and it’s the Feds Fiat.
O! Did I mention, Easy To Wipe Your Ass With. Lol
Makes lousy toilet paper, no absorption…
HA! Like you guys would know! Ever try it? Unless it is one of those old fuzzy bills, it looks as if it would be scratchy as hell. No direct experience here and not claiming any. ;-)
Already over 3 million oz of ASE’s sold in February!
And about 30% of last year’s total sales in way under two months!
And just a little more investment demand was all we needed..
Price gold against a basket of commodities? Can do better than that son, all you got to do is look at the official Inflation ratings for your local currency and discount your currency by that amount, then check to see what the price of gold or silver is in this new re-priced Fiat with inflation against your precious.
For example, in the UK the official RPI (Retail Price Index) which apparently reflects the costs of a basket of goods including housing and mortgage costs is running at 3.3% (I know its really much higher than this, but I will use the officials), now because inflation only affects currency and Fiat especially in this instance, it does not affect the real price of Gold, therefore I would put a 3.3% increase on today’s Spot Price, £1050 then becomes £1084. I feel this reflects the true purchasing price of gold. Not done any serious analysis on this yet, but I am sure the model could be adjusted to do exactly what Jay Taylor is talking about much more effectively as it prices in household goods and not just the raw ingredients. This would mean that manufactured products would be considered in the pricing.
Anyone got a better model than this would love to hear it. But I feel that the Spot price is just too raw to reflect the true purchasing power of precious metals.
It seems that gold’s price can be affected by the drop in the value of the dollar, inflation, the cost of gold production and its relative scarcity in light of its desireability as an storehouse of value. Combining these 4 factors should help stabilize and boost the value of gold.
The dollar does not represent the value of anything IMO except that which someone agrees to, sometimes under duress.
“The dollar does not represent the value of anything IMO except that which someone agrees to, sometimes under duress.”
Correctimundo, AG. People need to be aware that when one has a fiat currency, the Fed / Gov are in charge of telling us that it has value, that it is real, and that it is good as settlement for all debts public and private. Of course, these same people can just as easily tell us that today it has LESS VALUE than it had yesterday. Currency devaluation against some other standard is common in the world and the US dollar is not immune to it. Roosevelt called in the gold and once that was accomplished devalued the dollar via hiking the official price of gold from $20.67 per oz. to $35 per oz. Now, THAT was a devaluation and a genuine haircut for anyone foolish enough to swap their gold coins for paper money.
Dollar value is set against other fiat currencies so it is a useless measure really. When good start to be valued in gold again we will have dumped the fiat experiment into history.
BTW the other useless measures of value are the DOW, Nasdaq and S&P. In a essay on Lombari Reports, one writer noted that the large leading firms of these indices are buying back stock, about $250 billion to date. They see the the ironies of ZIRP and are able to juice their earning by removing their stock from the market through stock buy backs. Instead of distributing dividends to present shareholders, as would be the case of a decent company, but a syndrome now also driven by ZIRP and tax laws, they buy back stock with dollars of income.
This simultaneously deludes the buying public into thinking the owners and major shareholders recognize that this is a great stock. This is a classic pump and dump scheme for many firms about to fall on hard times.
This lowers the number of shares, deluding the financially uninformed of an improved price earnings ratio and income per share. This gives the stock the appearance of better earnings. That is a false positive to the PE ratio and leads to inflated equity values. In reality this is not sustainable unless the CEO and board continue to buy back stock to infinity or close to that level. They benefit while the investors are due for a price shock as this scheme unravels. We’ll see how this works out during the coming year. Invest at your own risk.
Investors ALWAYS invest at our own risk. I don’t have the data handy but believe that there is substantial evidence that reducing the number of outstanding shares is one of the better ways of enhancing shareholder value. This is particularly true of those who buy the stocks of good companies and then hold them for long periods of time. Unlike the payment of a dividend, enhanced share value via ”reducing the float” is not a taxable event. Note that companies were doing this quite actively in 2010-11 but started backing away from it in 2012. Note also that many company top insiders are not buying company shares but are instead selling them. These are astute people and if they are selling company shares rather than buying them, there IS a reason for that behavior. The most likely one, of course, is that they seen an economic slump ahead, just as many of us here do.
One of the Google boys just sold around $3 billion of his Google holdings for ‘personal reasons’ and repositioning his portfolio. At hearly 800 a share it seems a little pricy.
Einhorn, the hedge fund manager is challenging the cash holdings of Braehorn, the Apple cash stash hedge fund. He wants Apple to cough up some of those massive earnings to the shareholders, now that Apple is down 38% from its high. These major tussles may not affect stackers much but it does demonstrate the demands of the larger shareholders.