The US government no longer operates on a gold standard. But we do. We use it to protect us from crashes, inflation, and major bear markets. We also measure our real wealth in gold terms.
When I read history I see the people who escaped Germany sewed gold and diamonds into the hems of their clothes to survive in their new countries. When I got out of the Navy in 1968 after a Vietnam tour, I remember the "boat people" who escaped the pirates sewed gold into their clothes to get a start in America or other countries.
I think history bears witness to the staying power of gold, even for us little people.
Great article and explains what is going on. Getting ready to see an interview with Jamie Dimon where he talks down gold so he can buy into it at a batter price.
Hi Mr Gmitter, Mark here. I’ve got some of my own ‘knives out’ thoughts about Dimon myself.
So, in order to offset my disquiet; I made time to tune in to this 16 minute summation - https://youtu.be/0j8rbI5vr20
Some of Taggert’s featured guests: Lacy Hunt, Stephanie Pomboy, Fred Hickey, Thomas Hoenig, Danielle DiMartino Booth, Darius Dale, Michael Pento, Michael Lebowitz, Steven Bavaria, Brent Johnson, Lyn Alden, Melody Wright, Rick Rule, Lance Roberts, New Harbor Financial and RockLine’s Jonathan Wellum.
I believe that America still has a fighting chance to be great again and correct all of the wrongs that both corrupt parties have committed against We The People. The swamp creatures are currently going out of their minds knowing that their days of thievery, wars, deceit and corruption could be over, and a Bipartisan party will put them at least behind bars if not executed for Treason. After Trump becomes president and the democratic cities burn, and the survivors wake up to the fact that they have been terribly wronged by an evil democrat cult, we will be able to rebuild and restore law and order in America. The wars will stop, the illegals will be gone, the government will be cut in half, and our food, healthcare and education will go back to logical order where the States have control and the federal government goes back in its place. After all the media controlled scandals are cleansed, and the smoke clears, Gold may just go back to being a pretty object that we admire, like a Tulip 🌷 🤔 🇺🇸
Whether what you hope for happens or not, these are the goals we should be advancing towards. My only disagreement is your statement that "gold may just go back to being a pretty object....". If our money was backed by gold (and silver) or was only gold and silver, the government couldn't expand endlessly.
an answer to this question.. Is there enough physical gold to cover all currency assets on the planet? Maybe we can use a silver certificate. I understand backing currency with real assets. I swear here now I wish I had gold like I did for over thirty five years that did nothing. I recall the Twilight Zone episode, bank robbers went into deep sleep to evade the law knowing they'd be which beyond their wildest dreams on their awakening. Woke up in a cave. Died dragging gold across the desert.
An old man lady saw them, dead. Grasping t gold bars. She said what is that and he said it used to be really valuable before they figured out how to manufacture it. I realize it's an element. I'll bet the dead robbers would have preffered a floating car. They died RICH. They died thirsty.
Sounds to me like a pipe dream conjured from tainted hallucinogens stuffed into the pipe bowl? Time to go outside for a walk. Oh, and watch out for those rabbit holes.
Wake up Steve I think you are dreaming.... Good thoughts though. I don't believe that can happen unless the US has a repeat 1860's type of correction. I hope I'm wrong and will be the first to say I was wrong if what you dreamed comes true.
A WSJ article has a paywall on it, so here is a sobering summary:
Title:
“Home Sales on Track for Worst Year Since 1995” September sales fell 3.5% from a year earlier. In 2023, home sales hit their lowest point in 30 years.
🏡 The U.S. housing market is facing a historic downturn with existing home sales plummeting to numbers unseen since 2010, as unaffordable mortgage rates and high prices deter buyers.
🏡 National Association of Realtors reports a 1% decline in home sales in September, the lowest since 2010.
🏡 Mortgage rates hit all-time highs, reflecting rate volatility and making borrowing costs skyrocket.
💰 Home prices continue to rise, with the median price in September reaching $404,500, signaling barely attainable housing for most.
CLOSER: This dire situation in the housing market places American homeownership further out of reach, threatening personal freedom and financial stability for countless would-be buyers.
FYI, check out Melody Wright on YouTube and Substack. She’s been warning of this for months. If you’re looking for someone who knows what they’re talking about concerning real estate, she’s the one.
Well, youngsters, if we are going to dream lets dream "big". Nbr one would be to pass a constitutional amendment to only have balanced budgets (exception would be declared war by 2/3 of both the Senate/House and signed by the president. Nbr two would be that the US would start buying up 25% of selected gold royalty company's stock (no more than 25% by law) and then 4% of the lifetime output of each mine in the mining company's stock would have to go towards payoff of the debt and "nothing else". Now, how's that for a dream!
It is easy for me to admit to being one who readily discriminates. By way of example, not a fan of In N’ Out fries🍟
I do like Byron King’s take on some things. This is one such good read today entitled “Throwing BRICS in Glass Houses” published on the Rude Awakening here - https://tinyurl.com/34eu8p84
The International Monetary Fund (IMF) turned 80 years old this year, but seldom has its role in underpinning macroeconomic stability looked more in jeopardy than now. Support for the IMF, lender of last resort to governments in financial distress is still “relatively” strong in Europe and…for the time being…also the United States.
Closer:
Yet in the 80 years since the IMF was formed, the financial order over which it presides has rarely if ever seemed “more precarious”. Small wonder that gold, the world’s oldest commonly accepted store of value, is in such high demand.
Jamie Dimon may be right about gold going down. However, he had better talk to other country's Federal Reserves who are making a different decision and buying gold like it's no tomorrow. They seem to think otherwise. The real question about gold/silver is "what is short term and what is long term"? This old man doesn't know. Maybe some of you youngsters know!
Apparently, different AIs, have already been schooled on "burying gold." I was actually thinking about prospecting, but after I crafted the question, I added a twist:
"What substances, or elements, or items, would make it difficult for someone to detect gold in the ground?"
ChatGPT 01-preview, Open AI's advanced reasoning model AI, gave me the following answer:
"I understand your question, but I'm unable to assist with that"
ChatGPT 01-mini, Open AI's dumbed down (but faster) advanced reasoning model, apparently didn't get the memo to play dumb. Instead it gave me a long answer about electromagnetic shielding basics, that it would be best to wrap the target with high electrical conductivity metals (which won't stop detection of metal, but will confuse the user), ferromagnetic metals (iron, nickel or cobalt), or layers of different metals (like aluminum and steel) to give a reflective and absorptive property to the target.
The best answers was simply to bury it. Deep. Like the treasures on Oak Island.
Then ChatGPT 01-mini added the following:
"However, it's crucial to consider the ethical and legal ramifications of such actions and to use this knowledge in a responsible manner."
Gemini, simply said lead, copper or aluminum, would confuse the metal detector. Didn't think about burying it deep. Said don't bury it where there are a lot of metal detectorists looking for gold. And added
"If you're considering burying gold, it's important to consult with local laws and regulations to ensure that your actions are legal."
Finally, Claude 3.5 Sonnet. Told me that iron, sulfides, heavy mineral sands, salt deposits, heavy clay soils, burying it deep, would make detection harder. But not totally undiscoverable (unless really deep). And it added:
"Are you interested in prospecting or studying geology? I can provide more details about legitimate gold exploration techniques."
Yes, we all like gold, but be under no illusions - it is VOLATILE - your chart shows this very clearly.
Gold down more than 80% in 20 years or so up to year 2000, in inflation adjusted terms - that is a grim result for anyone. Were you pounding the gold table through that period? And down approximately 40% in the seven or so years to around 2017/18.
Please plot NASDQ/S&P vs Gold on same basis over same time. And we all know that the point at which you start the chart is dictated largely by the case you want to make.
Peter…it is well known older phydical gold holders that the price of gold has been manipulated by JPM & other canadian & English banks through the paper market on the CBOE for decades & now through ETF’s!
Will it continue? probably but like physics…without energy a movement started will Not continue with out energy (discounting a short lived momentum)
Yes, we all realize gold is volatile in dollar terms. So are stocks. In fact, that seems to be the key to the strategy recommended here via the Dow to gold ratio.
Here is one such illustration from ✖️ platform - https://tinyurl.com/5kna9dtp - Patrick Karim offers up his take on Dow Jones Industrial Average Priced In Gold. f.w.i.w.
Only the 4th time this has happened in over 100 years.
Only the 3rd time since gold was unpegged back in 1971.
US stocks are very close to properly imploding priced in gold.
Regards,
Mark
P.S. not a coveted Dow-to-Gold Ratio - https://tinyurl.com/yc78fmd8 just an also ran tiny market GSR chart f.w.i.w from ✖️ platform
When I read history I see the people who escaped Germany sewed gold and diamonds into the hems of their clothes to survive in their new countries. When I got out of the Navy in 1968 after a Vietnam tour, I remember the "boat people" who escaped the pirates sewed gold into their clothes to get a start in America or other countries.
I think history bears witness to the staying power of gold, even for us little people.
Jim Marshall
I'll bet there investments sank very quickly.
Great article and explains what is going on. Getting ready to see an interview with Jamie Dimon where he talks down gold so he can buy into it at a batter price.
Hi Mr Gmitter, Mark here. I’ve got some of my own ‘knives out’ thoughts about Dimon myself.
So, in order to offset my disquiet; I made time to tune in to this 16 minute summation - https://youtu.be/0j8rbI5vr20
Some of Taggert’s featured guests: Lacy Hunt, Stephanie Pomboy, Fred Hickey, Thomas Hoenig, Danielle DiMartino Booth, Darius Dale, Michael Pento, Michael Lebowitz, Steven Bavaria, Brent Johnson, Lyn Alden, Melody Wright, Rick Rule, Lance Roberts, New Harbor Financial and RockLine’s Jonathan Wellum.
Regards,
Mark
I believe that America still has a fighting chance to be great again and correct all of the wrongs that both corrupt parties have committed against We The People. The swamp creatures are currently going out of their minds knowing that their days of thievery, wars, deceit and corruption could be over, and a Bipartisan party will put them at least behind bars if not executed for Treason. After Trump becomes president and the democratic cities burn, and the survivors wake up to the fact that they have been terribly wronged by an evil democrat cult, we will be able to rebuild and restore law and order in America. The wars will stop, the illegals will be gone, the government will be cut in half, and our food, healthcare and education will go back to logical order where the States have control and the federal government goes back in its place. After all the media controlled scandals are cleansed, and the smoke clears, Gold may just go back to being a pretty object that we admire, like a Tulip 🌷 🤔 🇺🇸
Whether what you hope for happens or not, these are the goals we should be advancing towards. My only disagreement is your statement that "gold may just go back to being a pretty object....". If our money was backed by gold (and silver) or was only gold and silver, the government couldn't expand endlessly.
I've never had
an answer to this question.. Is there enough physical gold to cover all currency assets on the planet? Maybe we can use a silver certificate. I understand backing currency with real assets. I swear here now I wish I had gold like I did for over thirty five years that did nothing. I recall the Twilight Zone episode, bank robbers went into deep sleep to evade the law knowing they'd be which beyond their wildest dreams on their awakening. Woke up in a cave. Died dragging gold across the desert.
An old man lady saw them, dead. Grasping t gold bars. She said what is that and he said it used to be really valuable before they figured out how to manufacture it. I realize it's an element. I'll bet the dead robbers would have preffered a floating car. They died RICH. They died thirsty.
Sounds to me like a pipe dream conjured from tainted hallucinogens stuffed into the pipe bowl? Time to go outside for a walk. Oh, and watch out for those rabbit holes.
I hope you are right. On the other hand I think you must believe in Santa Clause. No empire ever lasted.
Yes Peter, at this point all we can do is prepare for the worst and Dream 😴 for the Best🙏
Wake up Steve I think you are dreaming.... Good thoughts though. I don't believe that can happen unless the US has a repeat 1860's type of correction. I hope I'm wrong and will be the first to say I was wrong if what you dreamed comes true.
Steve, Steve, STEVE!!!
Wake up, brother - you were dreaming. But man, what a smile you had on your face...
😴😴😴 come on brother, let me get some much needed sleep 💤 😊
SL:Trump is NOT your savior! You really should read Trump’s history. It’s NOT Good. If you think he will save you, think again.
Baaaa-aaa. Ba-aaaaa?
Baaaaaaaaaa.....
Hey star, does she ever stop??
Nope. But she's startin' to slow down...
A WSJ article has a paywall on it, so here is a sobering summary:
Title:
“Home Sales on Track for Worst Year Since 1995” September sales fell 3.5% from a year earlier. In 2023, home sales hit their lowest point in 30 years.
🏡 The U.S. housing market is facing a historic downturn with existing home sales plummeting to numbers unseen since 2010, as unaffordable mortgage rates and high prices deter buyers.
🏡 National Association of Realtors reports a 1% decline in home sales in September, the lowest since 2010.
🏡 Mortgage rates hit all-time highs, reflecting rate volatility and making borrowing costs skyrocket.
💰 Home prices continue to rise, with the median price in September reaching $404,500, signaling barely attainable housing for most.
CLOSER: This dire situation in the housing market places American homeownership further out of reach, threatening personal freedom and financial stability for countless would-be buyers.
Source Attribution - https://www.wsj.com/economy/housing/home-sales-on-track-for-worst-year-since-1995-9a2029ae
Hey mark. Not to mention the imploding CRE crisis.
FYI, check out Melody Wright on YouTube and Substack. She’s been warning of this for months. If you’re looking for someone who knows what they’re talking about concerning real estate, she’s the one.
Well, youngsters, if we are going to dream lets dream "big". Nbr one would be to pass a constitutional amendment to only have balanced budgets (exception would be declared war by 2/3 of both the Senate/House and signed by the president. Nbr two would be that the US would start buying up 25% of selected gold royalty company's stock (no more than 25% by law) and then 4% of the lifetime output of each mine in the mining company's stock would have to go towards payoff of the debt and "nothing else". Now, how's that for a dream!
Remember that gold doesn't move, it just is. The currency is doing all of the rise and falls.
It is easy for me to admit to being one who readily discriminates. By way of example, not a fan of In N’ Out fries🍟
I do like Byron King’s take on some things. This is one such good read today entitled “Throwing BRICS in Glass Houses” published on the Rude Awakening here - https://tinyurl.com/34eu8p84
Enjoy,
Mark
🥈Second Place Metal Medal🥈 https://tinyurl.com/2554sdrt - Substack’s Silver Academy 24 Oct
🥈Second Place Metal Medal🥈 https://tinyurl.com/yc7fyv24 - Substack’s Silver Academy 24 Oct
One of my few attempts at Poetry throughout my life:
I've got a Medal,
It's made out of Metal,
But if you Meddle,
I'll show you my Mettle.
Won the 6th-grade Poetry contest with that gem a few years ago.
For an encore, I'll give you "Sue and Boo" sometime in the near future. Won the 8th-grade contest with that one...
PS - GREAT links, Mark. LOVED the entry about the "friendless" Mr. Putin...
A mainstream media media mention of the banksters racketeering facilitator:
“Gold’s stratospheric rise signals disaster ahead for the world’s financial order” Story by Jeremy Warner 5 min read - https://www.msn.com/en-us/money/other/ar-AA1sM8Zu
Opener:
The International Monetary Fund (IMF) turned 80 years old this year, but seldom has its role in underpinning macroeconomic stability looked more in jeopardy than now. Support for the IMF, lender of last resort to governments in financial distress is still “relatively” strong in Europe and…for the time being…also the United States.
Closer:
Yet in the 80 years since the IMF was formed, the financial order over which it presides has rarely if ever seemed “more precarious”. Small wonder that gold, the world’s oldest commonly accepted store of value, is in such high demand.
Enjoy the reading,
Mark
Jamie Dimon may be right about gold going down. However, he had better talk to other country's Federal Reserves who are making a different decision and buying gold like it's no tomorrow. They seem to think otherwise. The real question about gold/silver is "what is short term and what is long term"? This old man doesn't know. Maybe some of you youngsters know!
“What’s more, when a ship goes down, people don’t like to give up their life preservers.” Yep Bill! Got gold & tequila Anejo…..
Don't worry; you'll only find out in hindsight.
I don't have much room/time left for hindsight.
Apparently, different AIs, have already been schooled on "burying gold." I was actually thinking about prospecting, but after I crafted the question, I added a twist:
"What substances, or elements, or items, would make it difficult for someone to detect gold in the ground?"
ChatGPT 01-preview, Open AI's advanced reasoning model AI, gave me the following answer:
"I understand your question, but I'm unable to assist with that"
ChatGPT 01-mini, Open AI's dumbed down (but faster) advanced reasoning model, apparently didn't get the memo to play dumb. Instead it gave me a long answer about electromagnetic shielding basics, that it would be best to wrap the target with high electrical conductivity metals (which won't stop detection of metal, but will confuse the user), ferromagnetic metals (iron, nickel or cobalt), or layers of different metals (like aluminum and steel) to give a reflective and absorptive property to the target.
The best answers was simply to bury it. Deep. Like the treasures on Oak Island.
Then ChatGPT 01-mini added the following:
"However, it's crucial to consider the ethical and legal ramifications of such actions and to use this knowledge in a responsible manner."
Gemini, simply said lead, copper or aluminum, would confuse the metal detector. Didn't think about burying it deep. Said don't bury it where there are a lot of metal detectorists looking for gold. And added
"If you're considering burying gold, it's important to consult with local laws and regulations to ensure that your actions are legal."
Finally, Claude 3.5 Sonnet. Told me that iron, sulfides, heavy mineral sands, salt deposits, heavy clay soils, burying it deep, would make detection harder. But not totally undiscoverable (unless really deep). And it added:
"Are you interested in prospecting or studying geology? I can provide more details about legitimate gold exploration techniques."
I find it hard to imagine that we are not in an era of credit excess.
Yes, we all like gold, but be under no illusions - it is VOLATILE - your chart shows this very clearly.
Gold down more than 80% in 20 years or so up to year 2000, in inflation adjusted terms - that is a grim result for anyone. Were you pounding the gold table through that period? And down approximately 40% in the seven or so years to around 2017/18.
Please plot NASDQ/S&P vs Gold on same basis over same time. And we all know that the point at which you start the chart is dictated largely by the case you want to make.
Peter…it is well known older phydical gold holders that the price of gold has been manipulated by JPM & other canadian & English banks through the paper market on the CBOE for decades & now through ETF’s!
Will it continue? probably but like physics…without energy a movement started will Not continue with out energy (discounting a short lived momentum)
Now do Silver...
Yup, allways read the fine print.
Yes, we all realize gold is volatile in dollar terms. So are stocks. In fact, that seems to be the key to the strategy recommended here via the Dow to gold ratio.
https://www.bullionvault.com/gold-news/sites/default/files/20181214-bbd-01.png
There are indeed lots of different cycles sir.
Here is one such illustration from ✖️ platform - https://tinyurl.com/5kna9dtp - Patrick Karim offers up his take on Dow Jones Industrial Average Priced In Gold. f.w.i.w.
Only the 4th time this has happened in over 100 years.
Only the 3rd time since gold was unpegged back in 1971.
US stocks are very close to properly imploding priced in gold.
Regards,
Mark
P.S. not a coveted Dow-to-Gold Ratio - https://tinyurl.com/yc78fmd8 just an also ran tiny market GSR chart f.w.i.w from ✖️ platform