Rick Santelli: Paper Gold…Game, Set, Match!

paper goldRick Santelli today gave an EPIC RANT on the difference between physical gold and paper liabilities commonly traded on commodities exchanges.

I don’t even look at gold as gold anymore since they securitized it. If things went badly in the world that I used to observe as a gold bug; the gold would end up in the hands of the gold bugs. If things go badly now, they’re going to end up with checks from ETFs!
Sorry, it’s not the same! The reign of paper gold as the Ayn Rand endgame, to me, that’s over. Game, Set, Match!

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  1. Those folks in Amsterdam found that the gold they thought they had wasn’t. Phyzz and nothing else.

  2. I have paper gold for sale at 50% off the spot price as long as you never take delivery or ask to see it.  Purchase comes with a very nice certificate suitable for framing. Quantities are unlimited.

  3. @UglyDog: That sounds more like some kind of bizarre financial fly paper. LOL

  4. Pity Santelli did not state that there was still safety in physical gold – to the uninformed it sounded like he was writing gold off altogether.
    The comment that people were buying art to protect against inflation was interesting. I think its quite a problem to store the art, make sure it is not stolen, find a buyer when in a hurry, and transport it to another country. Its ownership is also relatively easy to follow, so the taxman can come to the seller for the capital gain, whereas PM sales can be very much under the radar. If I own a $100 000 artwork, and need $1 600 I have to sell the whole thing, whereas i could sell one gold coin or 55 silver ones out of my $100 000 PM stash. And what about fake artworks – much easier to test my PMs fro purity? And the size of the art market is tiny compared to the participants in the PM market – thus excellent liquidity for price discovery/quick sale? No thanks!!

    • “Its ownership is also relatively easy to follow, so the taxman can come to the seller for the capital gain, whereas PM sales can be very much under the radar.”
      Worse than that, Andy.  Art work qualifies as a “collectible” and is taxed at 28%, not the 15% cap gains rate.

  5. From the US Mint web site:
    1 oz Gold Eagle Sales:
    2006          7,000
    2007          4,700
    2008         20,800
    2009     1,325,500
    2010     1,143,000
    2011        910,000
    2012        667,000
    Sales so far reported for
    2013         246,5000

  6. Nice and very informative video Duck! You better believe there are shockwaves going on behind closed doors with these corrupt bankers. They will not mess with China and Russia..They play for keeps and you better believe if Russia did not get their funds out of the Cyprus Banks heads are going to roll. Literally roll..

  7. It does not matter if the BRICS start a new bank.  It does not matter if the Western world starts new banks on the bones and wastage of the old banks, there are several fundamental problems
    1.  These institutions are still banks. Banks are legally permitted to consider your money as theirs as soon as the deposit is made
    1A   They can limit your access for any reason or no reason, making it possible you will never see your money again.

    2.  Banks are run by bankers.  It  is a given that immediately upon being hired or soon thereafter, every bank becomes insane.  Close proximity to other people’s money makes that person crazy.  We live in a world of FIAT.  Rubbing up against FAIT creates a communicable disease called ‘bankerosis’  Theft of your FIAT becomes inevitable. It’s much like working for a casino. That creates a form of insanity called Casinosis. Hence the reason for so many cameras.

    3.  FDIC insurance or its variants were created when this disease was diagnosed decades ago.  FDIC is worth DICK but does delude the masses that the government is looking out for them. FDIC is nothing more that a protection against banker insanity much like condoms protect from AIDS and sexually transmitted diseases or a washing one’s hands provides some protection against colds and flu.  FDIC is a medioce protection against banker insanity and the stupid actions they take with what was formerly your money.
    But be warned.  There is no vaccine against bankerosis. Once you get it you are infected for life. 
    As a former banker I admit I’m a carrier but in remission.   While it is not easily communicable, much like leprosy,  but it can be passed on from one generation to another.

    Which leads me to conclude that no matter what promises come from bankers and government, banks no longer offer a safe haven for your hard earned funds.
    Maybe some day this disease will fade as we evolve to a higher form of life, but I am not hopeful so long as we continue with the grand FIAT experiment

  8. BRICS 20 + countries and The Shangahi trading corprtation between China ,Russia and Asia all Want World Peace and to Feed the poor not KILL them…big difference

  9. PS  my dad used to asked me which eye of the one eyed banker showed compassion.
    It’s the glass one.  He was not a banker

    • Lol, Ag.  Was your father of the opinion that it was, “better to have a daughter in a whorehouse than a son running a bank”?  ;-)
      Glad to hear that you are in remission and recovering from your previous mental condition.

  10. the luciferian cartels ,know not good but evil ! if they can’t kill it ,steal it, or destroy it there is no movitvation..

  11. It’s great to have competition but the problem is; Their all Banksters and they have one thing in common. CONTROL and GREED.

    • If we actually had a free market, the strong would consume the weak.  While this is not so good for the weak, it is great for the species.  This is Darwinian theories applied to the marketplace… or capitalism, something that many of us older folks still remember and miss terribly.

  12. Funny you should mention my 3 sisters in Canada. I always wondered about their professions.
    One was a cork soaker
    one was a sock tucker 
    one was a coal sacker.
      Does that make sense? 
    He was very proud of them.

  13. The main difference between paper gold and physical gold is that you can build electrical wires with the physical ones and with the paper ones, you can whip your butt with them or burn them to heat yourself up.

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