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Gold?

Discussion in 'Preparedness & Survival' started by Gunner3456, Nov 9, 2010.

  1. Gunner3456

    Gunner3456 Salem Well-Known Member

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    On Sunday, World Bank President Robert Zoellick wrote a remarkable article in the Financial Times of London. He called for a renegotiation of the global monetary order and - incredibly - the introduction of a new gold standard. In response, gold broke $1,400/oz on Monday.

    This is a tremendous breakthrough for gold investors. For the head of the World Bank to make such a statement is unheard of in modern times. Among top bureaucrats and their economist friends in academia, the gold standard has always been a taboo - mostly because it prevents governments from using the "inflation tax" to finance military expeditions and entitlement programs. So, for such a high-ranking official to publicly express support for gold-backed currency, the dollar system must be nearing its end.

    In fact, since the Fed's announcement last week of a new round of stimulus using $600 billion freshly printed dollars, world leaders from Brasilia to Tokyo have been protesting like never before.

    This may be remembered as the moment the world rose up and said, "enough!"


    While Zoellick danced around the edges of calling for a true gold standard, I believe that the transition is already taking place. Investors and foreign central banks are re-monetizing gold as they move their savings out of the dollar. In Zoellick's words: "Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today." That's why gold is breaking one record after another, and will continue to do so for the foreseeable future.

    If gold were officially remonetized, the price would have to be about 47 times higher to pair central bank holdings with the assets of the global banking system (according to 2008 estimates from the McKinsey Global Institute). To look at it another way, central banks would be in the market for about 42.6 million ounces of gold to back up all the fiat money in circulation. Martin Wolf, columnist for the FT, asserted that a new gold standard "would generate huge windfall gains to holders of gold."

    It has only been since 1971 that the world money system has functioned without a gold-backing. (Edit by Cliff - Nixon) I believe this experiment is rapidly coming to a close. Commentators are right when they say there is no currency ready to take the dollar's place as the global reserve - but there is a metal with a great track record that has been waiting patiently in the bullpen.

    It is hard say when the Fed's monetary Ponzi scheme will fall apart, but many of its biggest "investors" are wisening up.
    I strongly recommend preparing for a dollar collapse before it's too late. When the president of the Washington-based and Washington-funded World Bank speaks out against the dollar system, what more warning do you need?

    Cordially,

    Peter Schiff
     
  2. deadeye

    deadeye Albany,OR. Moderator Staff Member

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  3. Gunner3456

    Gunner3456 Salem Well-Known Member

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    Peter Schiff has only very recently formed a gold company - maybe even just this year. He did it because he believes in it.

    He's been preaching gold, silver, commodities and some foreign stocks for several years now. He was right about the housing bubble. He was right about the depth and length of this recession when others were in total disagreement - before there was a recession.

    What, in his paper above, is he wrong about? Will not the Fed's creating of $600 billion in dollars this month to keep us afloat devalue the dollar?

    If the leader of the World Bank is successful in returning to a gold standard for an international currency, won't the demand for gold to back those currencies drive the price of gold?

    Peter Schiff is the only guy I've listened to with all ears for at least five years now and he's done nothing but make me money and better yet, kept me from losing a bunch.

    I sold all of the real estate I own except my home before the bubble burst because he was positive it was going to burst.

    Cliff

    PS Do you know that the value of the dollar against other world currencies such as the Euro and the Pound has dropped 17% this year? If you are earning 1% or less in interest on T-Bills while their value drops 17%, where does that leave you? Is it any wonder that other countries such as China, Russia and Japan have stopped or greatly slowed the purchase of our debt denominated in Dollar valued Treasuries?
     
  4. Andy

    Andy Aurora, OR Active Member

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    I have to second that; Peter has been dead on for years.

    Check out this video: YouTube - Peter Schiff Was Right 2006 - 2007 (2nd Edition)

    They laughed and made fun of him over and over on TV, and he was the only one that was right all the way back in 2006. The video is 10 minutes long, but REALLY worth watching.

    Andy

    P.S. All of the people laughing at him in these videos should be made to watch it every day for the next ten years. And Ben Stein can go eat bubblegum.
     
  5. Gunner3456

    Gunner3456 Salem Well-Known Member

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    Yep, looking back, he made a fool out of all of those experts. Why was he the only one who saw all of this coming including the real estate crash, the rise in gold prices, the fall of the financial institutions...

    He had the nerve to predict that gold would go above $1k, LOL.

    And this was before we got into this mess. He called it right on the button, and he was the only one in those groups who did.

    I listened to him because he made sense, and he saved my fanny.
     
  6. trainsktg

    trainsktg Portland OR Well-Known Member

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    Um...he called it. There's no doubt about that.

    Keith
     
  7. Andy

    Andy Aurora, OR Active Member

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    Well, technically he's not the only one. But he is one of the few who made it to TV and had the nerve to stand up to j-off's like those seen in the video. He was correct because he looked at the facts and made the only correct conclusion. Everyone else assumes that because we are America, we can not fail; the market will dip but never fall, etc.

    Gerald Celente is another that had it right.
     
  8. Gunner3456

    Gunner3456 Salem Well-Known Member

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    John Browne and Michael Pento are two that Schiff often quotes and even posts their articles. They are spot-on too.

    With the Fed running the presses, there is no way we won't see inflation, which just means that the dollar is devalued.

    Except for other nations like Russia, China and Japan, the Euro and the Pound fighting hard to keep their currency values low, we would already find the cost of imports skyrocketing as it took more dollars to buy something.

    Because we are the world's largest consumer and importer, those countries are terrified that we won't be able to afford their exports due to a low dollar value.

    The dollar has lost 17% of its value this year (against other currencies) even with other countries struggling to keep their currency values down.

    The Fed is putting us in a position where soon other countries can't do that any longer and then we're screwed.
     
  9. Just Jim

    Just Jim Well-Known Member

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    What goes up can come down. Until you sell it you have made nothing just like stock. Add to that gold is being tracked by the government by 10-99 forms if you sell it for more than $600 so they can tax your profits. Just opinion of course

    jj
     
  10. Gunner3456

    Gunner3456 Salem Well-Known Member

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    I believe the amount is $10k. The bank also has to report deposits or withdrawals of cash in amounts of $10k or more.

    Maybe you're thinking of the amount at which you have to do a 1099 for a part time worker.

    I can go to the bank and withdraw $9,900 in cash with nothing reported - no form to fill out. I can then walk down the street to a gold broker and buy that much in gold with no paperwork. Of course you are supposed to report gains (on something you don't own, LOL) </sarcasm.>

    You also have the option of trading with private individuals.

    Never forget. It was illegal for individuals to own investment gold (excluding nominal jewelry) from about 1933 until 1974. Never say it couldn't happen again, so keep your purchases private.

    Cliff
     
  11. Just Jim

    Just Jim Well-Known Member

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    "New 1099 Reporting
    Word is out about the 1099 reporting requirements that were buried in Obama&#8217;s health care legislation. If they go into effect, starting in 2012 precious metals dealers will have to report to the IRS on 1099s all purchases of $600 or more from clients in a single year.

    These regulations will create a paperwork nightmare for precious metals dealers, greatly increasing our costs of doing business. As is the case in all businesses, higher costs are ultimately reflected in the prices of the products that businesses sell.

    But more ominous than higher prices, sellers will have to provide identification to dealers, such as driver&#8217;s licenses and social security numbers. If that information is not adequately secured by the purchasing dealers, sellers could become victims of identity theft, which is a major crime today.

    Further, the new 1099 reporting could endanger the personal safety of precious metals investors. Again, if the records are not properly secured and fall into the wrong hands, that information could cause criminals to conclude that the sellers have other precious metals in their homes.

    Clearly, these regulations were not well thought out, and already there are bills in the House and the Senate to repeal these onerous and invasive regulations. To stop these regulations from going into effect, there will have to be a huge outcry &#8211; not just from precious metals dealers but from all business owners who will have to comply.

    Already, trade and business associations are objecting and calling for support of the repeal bills. However, precious metals investors should not hope that someone else gets the regulations repealed. If the regulations go into effect, precious metals investors will be impacted much more than average Americans will be impacted."
     
  12. Just Jim

    Just Jim Well-Known Member

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    I am wondering if they will go after people for tax evasion for selling gold without 10-99
     
  13. Gunner3456

    Gunner3456 Salem Well-Known Member

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    If that is true, it will just create an underground market in gold. Today we do that with guns - buy from a private party if you think the gun is in a class which might be outlawed, and always have some guns which are in no one's records.

    Personally I'm not buying any more gold because I have the desired percentage of my portfolio in gold already.

    If they really do this $600 thing, I'll go private party if I do buy or sell.

    Cliff
     
  14. johnboy

    johnboy Hillsboro Member

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    I believe Howard Ruff predicted the 1000$ Gold also. Among other things. If current trends continue unchecked we will be in for some interesting times.....
     
  15. Sasquatchvnv

    Sasquatchvnv Port Orchard Active Member

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    Gunner, I think I usually agree with most of your opinions. I'm pretty sure things are a little worse than you realize regarding the economic situation in progress. There is a reason they don't teach real economics in any of our educational institutions anymore. It makes it easier for the hucksters to steal everything. The only balance I want in my "portfolio" is things I can hold in my hand. All the stocks, bonds, retirement funds and other paper crap are belong to Barack H. Obama. Just ask him. It won't be long until everything you can't defend up close and personal will be stolen from you. Like most of you, I also place lead and brass high on the list of precious metals.
     
  16. Gunner3456

    Gunner3456 Salem Well-Known Member

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    Couldn't agree more. Some time ago I began to realize that if things got real bad, .22lr ammo and a basic rifle or pistol to shoot them in could become gold.

    You can buy a plenty good new .22 rifle and a thousand rounds for $150 on sale, or ten of those packages for the price of an ounce of gold. Which will be worth more if the SHTF?

    I like diversity, LOL.
     
  17. Sasquatchvnv

    Sasquatchvnv Port Orchard Active Member

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    You had me worried there for a minute when you mentioned a portfolio. I guess you could call a well stocked gun locker a balanced portfolio.
     
  18. saxon

    saxon springfield Active Member

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  19. Gunner3456

    Gunner3456 Salem Well-Known Member

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    Nope. I pay my taxes. We pay more in Fed and State taxes every year than the average household income. I don't want to go to jail, thank you.
     
  20. Sasquatchvnv

    Sasquatchvnv Port Orchard Active Member

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