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He thinks the goldbugs are being taken for a ride: http://market-ticker...e-Your-Ass.html
(You'll need to copy and paste the above url, rather than just click it)
Salient points:
i) Gold is not an effective inflation hedge, but is an effective geopolitical instability hedge
ii) It functions as credit, but not as money
iii) It offers less utility, and thus price stability, than silver
iv) The last time there was an inflation scare in the early '80's, gold holders were wiped out when the price crashed
v) The only free lunch is the sun
Obviously, I can't be arsed to debate the article, because I think goldbugs are loons who are not able to be debated with, but it's worth a read for its contrarian standpoint, if nothing else.
Denninger On Gold Not very complimentary
#1
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Posted 31 May 2010 - 11:27 AM
"Man is a machine." -- G.I. Gurdjieff
"Gurdjieff's starting point is the completely deluded state of man; man, he claims, is so completely embalmed and enmeshed in delusions that he cannot even be considered as a living being; he can only be regarded as a machine. He has, in other words, absolutely no free will." -- Colin Wilson
"What negative emotions are you likely to glorify? Some people are proud of their irritability or irritation. They like to be thought very hard. There is practically no negative emotion which you cannot enjoy, and that is the most difficult thing to realise. Really some people get all their pleasures from negative emotions." -- P.D. Ouspensky
"Gurdjieff's starting point is the completely deluded state of man; man, he claims, is so completely embalmed and enmeshed in delusions that he cannot even be considered as a living being; he can only be regarded as a machine. He has, in other words, absolutely no free will." -- Colin Wilson
"What negative emotions are you likely to glorify? Some people are proud of their irritability or irritation. They like to be thought very hard. There is practically no negative emotion which you cannot enjoy, and that is the most difficult thing to realise. Really some people get all their pleasures from negative emotions." -- P.D. Ouspensky
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#2
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Posted 31 May 2010 - 11:41 AM
CokeSnortingTory, on 31 May 2010 - 11:27 AM, said:
He thinks the goldbugs are being taken for a ride: http://market-ticker...e-Your-Ass.html
(You'll need to copy and paste the above url, rather than just click it)
Salient points:
i) Gold is not an effective inflation hedge, but is an effective geopolitical instability hedge
ii) It functions as credit, but not as money
iii) It offers less utility, and thus price stability, than silver
iv) The last time there was an inflation scare in the early '80's, gold holders were wiped out when the price crashed
v) The only free lunch is the sun
Obviously, I can't be arsed to debate the article, because I think goldbugs are loons who are not able to be debated with, but it's worth a read for its contrarian standpoint, if nothing else.
(You'll need to copy and paste the above url, rather than just click it)
Salient points:
i) Gold is not an effective inflation hedge, but is an effective geopolitical instability hedge
ii) It functions as credit, but not as money
iii) It offers less utility, and thus price stability, than silver
iv) The last time there was an inflation scare in the early '80's, gold holders were wiped out when the price crashed
v) The only free lunch is the sun
Obviously, I can't be arsed to debate the article, because I think goldbugs are loons who are not able to be debated with, but it's worth a read for its contrarian standpoint, if nothing else.
the thing that worries me about gold,is that a lot of those who reason you should buy it,remind me of the way joe public was sold housing over the past decade ie get your foot on the ladder,don't get left behind,gold/housing only goes up in the long term,gold/hosuing is an inflation hedge,gold/housing-they're not making any more of it,it's gone up 500% over ten years.............etc etc
behind every gold ETF,lies an investment bank.behind every bullion deal,lies a bank.if we get a gold standard,it'll be run by the banks and overseen by the govt.
Blaming greed for a banking crisis is like blaming gravity for an airplane crash. Injin 10/12/2009 (a rare moment of clarity)
Red Kharma, on 31 May 2010 - 11:51 AM, said:
Most gold buyers will get creamed, eventually and for the very reasons they think they won't.
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Posted 31 May 2010 - 11:41 AM
As I always say it is just something of value, an asset that can be traded internationally, and benefits from a high value to weight ratio meaning it is transportable.
It is no better or wose than other things such as rare paintings or star wars figurines.....
It is no better or wose than other things such as rare paintings or star wars figurines.....
___________________________________________________________________________________________________The correct answer to every statement is "It's a little bit more complicated than that"
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Posted 31 May 2010 - 11:43 AM
I like Denninger,he says what he thinks and isn't afraid of being as contrarian as Prechter-who in Feb 2010,made a Gold $200 call.
Blaming greed for a banking crisis is like blaming gravity for an airplane crash. Injin 10/12/2009 (a rare moment of clarity)
Red Kharma, on 31 May 2010 - 11:51 AM, said:
Most gold buyers will get creamed, eventually and for the very reasons they think they won't.
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Posted 31 May 2010 - 11:44 AM
Timak, on 31 May 2010 - 11:41 AM, said:
As I always say it is just something of value, an asset that can be traded internationally, and benefits from a high value to weight ratio meaning it is transportable.
It is no better or wose than other things such as rare paintings or star wars figurines.....
It is no better or wose than other things such as rare paintings or star wars figurines.....
or 1970's Wonder Woman dolls.
Blaming greed for a banking crisis is like blaming gravity for an airplane crash. Injin 10/12/2009 (a rare moment of clarity)
Red Kharma, on 31 May 2010 - 11:51 AM, said:
Most gold buyers will get creamed, eventually and for the very reasons they think they won't.
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Posted 31 May 2010 - 11:46 AM
An alternative view ...
Mr. Denninger and Gold or Why the Dollar-Deflationists Are Wrong
http://www.zerohedge...nists-are-wrong
Gold is the currency beyond Governments. It is the most liquid form of money accepted throughout the world – the true reserve currency of the world - whereas Dollars, Yuans and Euros etc. are only guaranteed to be accepted within their own respective countries, and as long as their respective governments last. Why would you want to tie yourself down to the paper currency of a particular nation, especially in times of such turbulence? It points to a very limited sphere of thinking when you advocate that holding only dollars is the best strategy. It is a fallacy to believe that there is no refuge outside the system; that you have to be trading paper tickets all the time to “keep up” with the dilution of your purchasing power or just stand by idly holding dollars while the government rapes you. Gold is your refuge outside the system.
Got Gold, Mr. Denninger?
Keep the image below at the forefront of your mind:
Mr. Denninger and Gold or Why the Dollar-Deflationists Are Wrong
http://www.zerohedge...nists-are-wrong
Gold is the currency beyond Governments. It is the most liquid form of money accepted throughout the world – the true reserve currency of the world - whereas Dollars, Yuans and Euros etc. are only guaranteed to be accepted within their own respective countries, and as long as their respective governments last. Why would you want to tie yourself down to the paper currency of a particular nation, especially in times of such turbulence? It points to a very limited sphere of thinking when you advocate that holding only dollars is the best strategy. It is a fallacy to believe that there is no refuge outside the system; that you have to be trading paper tickets all the time to “keep up” with the dilution of your purchasing power or just stand by idly holding dollars while the government rapes you. Gold is your refuge outside the system.
Got Gold, Mr. Denninger?
Keep the image below at the forefront of your mind:
Want to get paid for polls? Try YouGov
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Posted 31 May 2010 - 11:50 AM
Errol, on 31 May 2010 - 11:46 AM, said:
An alternative view ...
Mr. Denninger and Gold or Why the Dollar-Deflationists Are Wrong
http://www.zerohedge...nists-are-wrong
Gold is the currency beyond Governments. It is the most liquid form of money accepted throughout the world – the true reserve currency of the world - whereas Dollars, Yuans and Euros etc. are only guaranteed to be accepted within their own respective countries, and as long as their respective governments last. Why would you want to tie yourself down to the paper currency of a particular nation, especially in times of such turbulence? It points to a very limited sphere of thinking when you advocate that holding only dollars is the best strategy. It is a fallacy to believe that there is no refuge outside the system; that you have to be trading paper tickets all the time to "keep up" with the dilution of your purchasing power or just stand by idly holding dollars while the government rapes you. Gold is your refuge outside the system.
Got Gold, Mr. Denninger?
Keep the image below at the forefront of your mind:
Mr. Denninger and Gold or Why the Dollar-Deflationists Are Wrong
http://www.zerohedge...nists-are-wrong
Gold is the currency beyond Governments. It is the most liquid form of money accepted throughout the world – the true reserve currency of the world - whereas Dollars, Yuans and Euros etc. are only guaranteed to be accepted within their own respective countries, and as long as their respective governments last. Why would you want to tie yourself down to the paper currency of a particular nation, especially in times of such turbulence? It points to a very limited sphere of thinking when you advocate that holding only dollars is the best strategy. It is a fallacy to believe that there is no refuge outside the system; that you have to be trading paper tickets all the time to "keep up" with the dilution of your purchasing power or just stand by idly holding dollars while the government rapes you. Gold is your refuge outside the system.
Got Gold, Mr. Denninger?
Keep the image below at the forefront of your mind:
change the word GOLD for HOUSE and I think we are there.
WARNING
Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it
Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it
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Posted 31 May 2010 - 11:50 AM
Errol, on 31 May 2010 - 11:46 AM, said:
An alternative view ...
Mr. Denninger and Gold or Why the Dollar-Deflationists Are Wrong
http://www.zerohedge...nists-are-wrong
Gold is the currency beyond Governments. It is the most liquid form of money accepted throughout the world – the true reserve currency of the world - whereas Dollars, Yuans and Euros etc. are only guaranteed to be accepted within their own respective countries, and as long as their respective governments last. Why would you want to tie yourself down to the paper currency of a particular nation, especially in times of such turbulence? It points to a very limited sphere of thinking when you advocate that holding only dollars is the best strategy. It is a fallacy to believe that there is no refuge outside the system; that you have to be trading paper tickets all the time to “keep up” with the dilution of your purchasing power or just stand by idly holding dollars while the government rapes you. Gold is your refuge outside the system.
Got Gold, Mr. Denninger?
Keep the image below at the forefront of your mind:
Mr. Denninger and Gold or Why the Dollar-Deflationists Are Wrong
http://www.zerohedge...nists-are-wrong
Gold is the currency beyond Governments. It is the most liquid form of money accepted throughout the world – the true reserve currency of the world - whereas Dollars, Yuans and Euros etc. are only guaranteed to be accepted within their own respective countries, and as long as their respective governments last. Why would you want to tie yourself down to the paper currency of a particular nation, especially in times of such turbulence? It points to a very limited sphere of thinking when you advocate that holding only dollars is the best strategy. It is a fallacy to believe that there is no refuge outside the system; that you have to be trading paper tickets all the time to “keep up” with the dilution of your purchasing power or just stand by idly holding dollars while the government rapes you. Gold is your refuge outside the system.
Got Gold, Mr. Denninger?
Keep the image below at the forefront of your mind:
tins of beans and gallon of fuel trump gold.that chart is wrong
Blaming greed for a banking crisis is like blaming gravity for an airplane crash. Injin 10/12/2009 (a rare moment of clarity)
Red Kharma, on 31 May 2010 - 11:51 AM, said:
Most gold buyers will get creamed, eventually and for the very reasons they think they won't.
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Posted 31 May 2010 - 11:51 AM
Pedro for the Fed, on 31 May 2010 - 11:43 AM, said:
I like Denninger,he says what he thinks and isn't afraid of being as contrarian as Prechter-who in Feb 2010,made a Gold $200 call.
True. He's also been wrong alot of the time. (Denninger and Prechter - His double shorts on the SPX got stopped out months ago - before the April correction). I don't know if he recommended new double shorts subsequently but I guess his followers would still be smarting from being wrong from last August.
I agree with all the points in the OP link though. Most gold buyers will get creamed, eventually and for the very reasons they think they won't.
Quote
tins of beans and gallon of fuel trump gold.that chart is wrong
Nukes trump beans and fuel.
This post has been edited by Red Kharma: 31 May 2010 - 11:55 AM
"The problem with capitalism is that eventually you end up with everyone else's money" - RK
"We have now entered The Great Rebalancing 2007-20xx" - RK
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Posted 31 May 2010 - 11:55 AM
Red Kharma, on 31 May 2010 - 11:51 AM, said:
True. He's also been wrong alot of the time. (Denninger and Prechter - His double shorts on the SPX got stopped out months ago - before the April correction). I don't know if he recommended new double shorts subsequently but I guess his followers would still be smarting from being wrong from last August.
I always think it is a good idea to mentally picture market commentators wearing John McCririck-style deer-stalker hats.
"Man is a machine." -- G.I. Gurdjieff
"Gurdjieff's starting point is the completely deluded state of man; man, he claims, is so completely embalmed and enmeshed in delusions that he cannot even be considered as a living being; he can only be regarded as a machine. He has, in other words, absolutely no free will." -- Colin Wilson
"What negative emotions are you likely to glorify? Some people are proud of their irritability or irritation. They like to be thought very hard. There is practically no negative emotion which you cannot enjoy, and that is the most difficult thing to realise. Really some people get all their pleasures from negative emotions." -- P.D. Ouspensky
"Gurdjieff's starting point is the completely deluded state of man; man, he claims, is so completely embalmed and enmeshed in delusions that he cannot even be considered as a living being; he can only be regarded as a machine. He has, in other words, absolutely no free will." -- Colin Wilson
"What negative emotions are you likely to glorify? Some people are proud of their irritability or irritation. They like to be thought very hard. There is practically no negative emotion which you cannot enjoy, and that is the most difficult thing to realise. Really some people get all their pleasures from negative emotions." -- P.D. Ouspensky
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Posted 31 May 2010 - 12:04 PM
Might want to bear this in mind ...
pie chart below, which depicts the fate of 786 paper currencies that have been issued in the course of history (excluding Chinese paper currencies prior to 1935):
pie chart below, which depicts the fate of 786 paper currencies that have been issued in the course of history (excluding Chinese paper currencies prior to 1935):
This post has been edited by Errol: 31 May 2010 - 12:05 PM
Want to get paid for polls? Try YouGov
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Posted 31 May 2010 - 12:08 PM
Errol, on 31 May 2010 - 12:04 PM, said:
Might want to bear this in mind ...
pie chart below, which depicts the fate of 786 paper currencies that have been issued in the course of history (excluding Chinese paper currencies prior to 1935):
pie chart below, which depicts the fate of 786 paper currencies that have been issued in the course of history (excluding Chinese paper currencies prior to 1935):
What conclusion do you think that implies?
Meet The Spy http://www.youtube.com/watch?v=nnuYi-nzE90
"I don't think we will see house price falls. I just see no reason for it".Andrew Weir, Foxtons, 19th of January 2008
"I don't think we will see house price falls. I just see no reason for it".Andrew Weir, Foxtons, 19th of January 2008
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Posted 31 May 2010 - 12:12 PM
Red Kharma, on 31 May 2010 - 11:51 AM, said:
Most gold buyers will get creamed, eventually and for the very reasons they think they won't.
RK gotta sneak that for my sig.you're a poet.
Blaming greed for a banking crisis is like blaming gravity for an airplane crash. Injin 10/12/2009 (a rare moment of clarity)
Red Kharma, on 31 May 2010 - 11:51 AM, said:
Most gold buyers will get creamed, eventually and for the very reasons they think they won't.
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Posted 31 May 2010 - 12:17 PM
Pedro for the Fed, on 31 May 2010 - 11:44 AM, said:
or 1970's Wonder Woman dolls.
Oh aye?
