How is GOLD not the biggest Ponzi Scheme?

[lifewasgood]

Update August 18, 2011

Addendum 1

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Addendum 2

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Will delete if moon does not beat me to the punch

[Aman A.K.A. Ahamburger]

I read this article today, and thought, yep, gold is nothing but a huge ponzi scheme. CB are the ones keeping the price up. So I guess the Goldbugs best friends are the Central Bankers of the world.

Central Banks Increase Gold Lending
www.ft.com/intl/cms/s/0/c2b92910-40fe-11e1-b521-00144feab49a.html?ftcamp=rss

Central banks increased the amount of gold they lent for the first time in a decade in 2011, as they used their bullion reserves to help commercial banks raise US dollars.

[Aman A.K.A. Ahamburger]

I admit that there was a lot more profit to be made TRADING in this bubble than I had originally thought. However, it doesn't change the fact that this is happening..

Sprott takes a new path toward less volatility
www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/sprott-takes-a-new-path-toward-less-volatility/article2312027/

Hedge fund manager Eric Sprott made a name and a fortune for himself with a prescient bet on gold and silver. But Sprott Inc. (SII-T6.160.162.67%), the publicly traded asset manager he founded, is finding that creating a successful fund company requires more than a single big idea.

Investors want more than just the extremely volatile, precious-metals-focused funds that Mr. Sprott runs, and Sprott Inc. is missing out on the wave of cash flowing into balanced and income funds seeking steadier returns. So over the coming weeks, Sprott Inc. is set to roll out new mutual and hedge funds that invest in core Canadian stocks and in a balanced portfolio.

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[Aman A.K.A. Ahamburger]

Just want to make sure that everyone knows that Russia is officially looking at the AUS as their next diversification in currency. I had stated the CDN dollar on a different thread. However, the fact is still the same.

Russia to Keep Australian Dollar Reserves From February
en.ria.ru/business/20120126/170960429.html

[Aman A.K.A. Ahamburger]

This person has an interesting view on this so called, QE 2.5...(wasn't QE 2.5 last year with operation twist )

The Federal Reserve on gold and silver
www.marketwatch.com/story/the-federal-reserve-on-gold-and-silver-2012-01-26?link=MW_latest_news

Also, India is now charging people more to buy gold.

India’s gold-tariff hike may fail to boost rupee
www.marketwatch.com/story/indias-gold-tariff-hike-may-fail-to-boost-rupee-2012-01-26

[Aman A.K.A. Ahamburger]

IDK, does this guy know anything about investing??

Gold Is for Fools, Invest in Stocks - Buffett
www.streetinsider.com/Insiders+Blog/Gold+Is+for+Fools,+Invest+in+Stocks+-+Buffett/7153493.html

[rovo]

Gold has been acting strange of late. It had a nice run-up since the first of the year but suffered a big drop on 29 Feb.

The 50 Day SMA is beginning to pull away from the 200 Day SMA, so the expected "Death Cross" did NOT occur. The Death Cross is when the 50 SMA crosses blow the 200 SMA.

[Aman A.K.A. Ahamburger]

It seems to be moving back toward reacting to fear. If the USA keeps getting better, gold is going to lose its shine, JMO... U can't take 0% with no dividends for very long as an investor, I know that for sure.

[dothedd]

NOT TOTALLY A PONZI SCHEME to those of us that bought gold coins back in the mid-80's.

I bought low and sold high! Have not had the opportunity to do a spread sheet yet, but plan to do so.

Peace and adios, for now, to all ...

GOD BLESS AMERICA

[Aman A.K.A. Ahamburger]

I agree with buying bullion, when the price hasn't been inflated with a paper backed Ponzi like GLD and SLV.. I have bought some coins for my parents as gifts recently, only because when my kids get them they will be RARE..

[Aman A.K.A. Ahamburger]

IDK tough when you look at a 40 yr chart of gold, it's hard not to see a bubble there. There are no dividends on GLD so unless your buying physical your getting noting of real value. All GLD and SLV were was a "hedge" against panic and collapse. Now they trade with the market and the price of gold is reflected in that. At some point there is going to be a interest rate hike, it will be interesting to see what happens to gold at that point.

[Aman A.K.A. Ahamburger]

Some interesting reading and some very good points.

Gold market prospects not looking good
www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/don-vialoux/gold-market-prospects-not-looking-good/article2370641/

[Aman A.K.A. Ahamburger]

For anyone investing in Gold still. It really seams like the wind has been taken out of the sails of this run.. The producers say 900-1100.... I guess we will see.

Gold's Decade-Long Bull Run Is Dead, Gartman Says
www.forbes.com/sites/afontevecchia/2012/04/05/the-death-of-golds-10-year-bull-run/?feed=rss_europe

[rovo]

GLD did have the "Death Cross" on 17 April. Like all technical analysis, this does not guarantee further declines but means the probability of further declines is very high.

Gold doesn't act like stocks. Precious metals respond to different factors than the stock market responds to.

I see a reasonable, fair, value of gold being about $500 to $700 and anything above this value being speculation. The Kitco web site used to publish a number showing the speculation % of the current price but they have not updated the numbers in a year or so. I don't think they want to publish numbers which would hurt their business.

[bimetalaupt]

May 4, 2012 11:48:13 GMT -5 rovo said:

GLD did have the "Death Cross" on 17 April. Like all technical analysis, this does not guarantee further declines but means the probability of further declines is very high.

Gold doesn't act like stocks. Precious metals respond to different factors than the stock market responds to.

I see a reasonable, fair, value of gold being about $500 to $700 and anything above this value being speculation. The Kitco web site used to publish a number showing the speculation % of the current price but they have not updated the numbers in a year or so. I don't think they want to publish numbers which would hurt their business.

rovo,
Yes and no.. Look at the overpriced T-Bond and Bunds..1.88% interest with a 2.5% inflation.

Yes, bonds are a trading system !!! like a car vs Truck..Ponzi as your bonds are paid off with the selling of more bonds.

Just a thought,
BiMetalAuPt

[Aman A.K.A. Ahamburger]

May 4, 2012 11:48:13 GMT -5 rovo said:

GLD did have the "Death Cross" on 17 April. Like all technical analysis, this does not guarantee further declines but means the probability of further declines is very high.

Gold doesn't act like stocks. Precious metals respond to different factors than the stock market responds to.

I see a reasonable, fair, value of gold being about $500 to $700 and anything above this value being speculation. The Kitco web site used to publish a number showing the speculation % of the current price but they have not updated the numbers in a year or so. I don't think they want to publish numbers which would hurt their business.

LOL, No doubt Rovo, looking to Kitco and other gold sites for gold info at this point is not a good idea.

I also agree that GLD isn't like stocks Rovo. In fact, for the better part of the last decade it was all about the FEAR. Then for the last couple years the gold bugs have attached themselves to QE.. With no real QE in the pipeline, and a Eurobond most likely on the way the list of reasons for gold being more than $700 is getting very short.

[Aman A.K.A. Ahamburger]

I found this VERY interesting. Soros and others are buying "gold" to bet against Europe, but he's also buying some of Man U... Hmmm... The biggest PONZI right now is GLD.

Pimco joins Paulson and Soros in bet on gold
www.efinancialnews.com/story/2012-08-23/pimco-paulson-soros-double-down-on-gold?mod=sectionheadlines-TT-AM

Paulson & Co owned 21.8m shares of SPDR Gold Shares, an exchange-traded fund backed by bullion, at June 30, an increase of 4.5m shares from March 31, according to filings. The higher mining and ETF holdings reflect Paulson's bullish thesis on gold, one he has had since 2009, according to a person close to the fund.

Soros Fund Management more than doubled its stake in SPDR Gold Shares over the same period, leaving it with shares worth $137.3m as of June 30, according to a separate filing. The filings don't indicate how long the shares have been held or whether the stakes have changed since then. A spokesman declined to comment.

Financier George Soros buys minority stake in Man United
www.cbc.ca/sports/soccer/story/2012/08/21/sp-soccer-manchester-united-george-soros-soros-fund-management-malcolm-glazer.html

Second Quarter 2012 Gold Review: Short Term Profit Opportunity, Long Term Sell
seekingalpha.com/article/824261-second-quarter-2012-gold-review-short-term-profit-opportunity-long-term-sell

[Aman A.K.A. Ahamburger]

The start of many PONZIs from the latest bubble?

A Ponzi Schemer Parts With His Silver
www.forbes.com/sites/jordanmaglich/2012/09/17/a-ponzi-schemer-parts-with-his-silver/

It was 2009, and silver prices were booming. After dropping to a multi-year low, prices soon skyrocketed as investors sought safety in a tumultuous economy.

Yet most investors could only indirectly participate in the metal’s run, relegated to purchase securities of silver miners or exchange-traded funds (ETF’s) tracking the price of silver. Then, in what sounded too good to be true, a South Carolina company offered investors the opportunity to cash in on the boom by purchasing actual silver bars that would then be kept in storage at a Delaware Depository. The company, Atlantic Bullion and Coin, Inc.

(“AB&C”) and its owner, Ronnie Wilson (“Wilson”), proceeded to take in approximately $65 million during the three-year period from January 2009 to February 2012, including $33 million alone from January 2011 to February 2012. Based on prevailing silver prices, this should have translated into the purchase of thousands of 100-ounce and 1000-ounce silver bars held in storage for investors.

However, as authorities would discover in early 2012, the operation was nothing more than a giant Ponzi scheme, with Wilson purchasing “woefully insufficient” quantities of silver and using investor funds to make Ponzi-style payments to create the appearance that the scheme was wildly successful.

When Beattie Ashmore, the court-appointed receiver, took over operations in June 2012, he discovered that only eighty-five 1000-ounce silver bars had been purchased since 2009, and of that minimal quantity, only sixty-four bars remained.

Additionally, contrary to Wilson’s representations, there was no evidence that he or AB&C had taken possession of any significant quantity of silver bars or that the bars were held in storage for specific clients. Instead, tens of millions of dollars were used for Wilson’s and his family’s personal and/or business interests.

[Aman A.K.A. Ahamburger]

More cracks appearing in the gold story.

China’s falling gold imports hint at rally’s end
articles.marketwatch.com/2012-10-16/investing/34476349_1_gold-imports-gold-demand-investment-demand

[Aman A.K.A. Ahamburger]

So you use your paper, to buy paper, that people say is gold, and you get nothing but the promise that it will go higher because the paper is worthless that you use to buy the paper?....

Got it, sound play there, especially because the supporting characters are closet socialists that continue to push end of the world BS.

Maybe with the big end of the world 2012 BS out of the way things might be a bit different for this pozni that is the current gold "market'?

Today didn't look good. Way under that $1720 mark that is for sure..

Is gold's bull-run over after 12 years of gains?
in.reuters.com/article/2012/12/19/gold-outlook-idINDEE8BI0BT20121219?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FINbusinessNews+%28News+%2F+IN+%2F+Business+News%29

[bimetalaupt]

Dec 20, 2012 23:26:52 GMT -5 Aman A.K.A. Ahamburger said:

So you use your paper, to buy paper, that people say is gold, and you get nothing but the promise that it will go higher because the paper is worthless that you use to buy the paper?....

Got it, sound play there, especially because the supporting characters are closet socialists that continue to push end of the world BS.

Maybe with the big end of the world 2012 BS out of the way things might be a bit different for this pozni that is the current gold "market'?

Today didn't look good. Way under that $1720 mark that is for sure..

Is gold's bull-run over after 12 years of gains?
in.reuters.com/article/2012/12/19/gold-outlook-idINDEE8BI0BT20121219?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FINbusinessNews+%28News+%2F+IN+%2F+Business+News%29

A+++,
In 1491 Gold was worth on a parity basis $3,500.. in 2000 $'s
Just a thought,
BiMetalAuPt

[Aman A.K.A. Ahamburger]

BiMetal,

Just sad isn't it? Especially because 100 worthless paper dollars put into, even a low interest paying bank account in 1941, would be worth what again? Oh ya that's right, more than it was in 1941. Just think how badly inflation would have destroyed your money having it in Gold over the long term. Yikes!

If you're not buying gold at the bottom of the cycle, and if you're not trading it in times like this, it's hard to imagine a worst investment to make really.

A great thought B!

A+++

[Aman A.K.A. Ahamburger]

 Gold is shaping up to be one big Ponzi bust, without a doubt...

Gold stock ETFs biggest losers in 2012
www.theglobeandmail.com/globe-investor/investment-ideas/number-cruncher/gold-stock-etfs-biggest-losers-in-2012/article7263033/

Gold stock ETFs losing plenty of glitter once again.

The worst performers were the iShares S&P/TSX Global Gold ETF, down 18.5 per cent, and BMO Junior Gold ETF, off 16.8 per cent. These equity ETFs struggled as the spot price for gold rose nearly 6 per cent last year.

[decoy409]

Feb. 14,2013 - *RAID! 90 Million Ounces of Paper Silver Dumped to Smash Silver Towards $30

www.silverdoctors.com/raid-90-million-ounces-of-paper-silver-dumped-to-smash-silver-towards-30/#more-21484


We take it you are in the 'Who Cares' club.


Here is a idea! Clickity-click up some more credits,float the players in turn float the market,then go and squeal about how bad the BIG BANKS are.


TooT! TooT!


That's a great way to play the dbl. on a 50/50.  

[Aman A.K.A. Ahamburger]

Was there a question in there?  I'm sorry, it's been ages since I have read the "news" you put out there, my "deekanese" is a bit rusty.  From the article you posted there it would seem that you're supporting my theory that the only thing that is holding the price of gold and silver up is paper.

 I'm definitely not in some club called "who cares", in fact that is why I have started this thread; to outline that gold and silver aren't really investments and there is a good chance that if you're not careful you're going to get burnt in the metals "market".  There are all kinds of scams going on in the metals "market" right now, right down to people selling fear and saying to buy gold while selling it on ebay.

 I like the 50/50 play that BiMetal and I always talk about.  It's a nice way to plan for a retirement, using govt backed bonds and stocks that is.

[tyfighter3]

And don't forget Farmland.

[Aman A.K.A. Ahamburger]

We got plans for that as well don't we.

Still waiting for the pics of our money presses turned on.

[bimetalaupt]

iT IS THE RUSSIANS.. NOW THE WORLDS LARGEST BUYERS OF GOLD...RCB THAT IS ..
CHINA IS NEXT..GOLD IS MONEY...KASH IS KING

[Aman A.K.A. Ahamburger]

Feb 16, 2013 14:10:53 GMT -5 bimetalaupt said:

iT IS THE RUSSIANS.. NOW THE WORLDS LARGEST BUYERS OF GOLD...RCB THAT IS ..
CHINA IS NEXT..GOLD IS MONEY...KASH IS KING

Yes it is, and NA is by far the largest producer of GOLD, the real stuff. Good thing at 900-1100 an oz the prodcers make money and so do the jewelers. Maybe there is something to this currency thing after all, it's not like the FRB is the largest holder of gold on the planet or anything.

[bimetalaupt]

Feb 16, 2013 22:53:07 GMT -5 Aman A.K.A. Ahamburger said:

Feb 16, 2013 14:10:53 GMT -5 bimetalaupt said:

iT IS THE RUSSIANS.. NOW THE WORLDS LARGEST BUYERS OF GOLD...RCB THAT IS ..
CHINA IS NEXT..GOLD IS MONEY...KASH IS KING

Yes it is, and NA is by far the largest producer of GOLD, the real stuff. Good thing at 900-1100 an oz the prodcers make money and so do the jewelers. Maybe there is something to this currency thing after all, it's not like the FRB is the largest holder of gold on the planet or anything.

A++,
Yes it is all about real production of the metal... GG and GFI have done well in the past..ESP GFI with it huge holdings in Finland that could produce both gold and platinum.  Finland was once part of the same land mass as South Africa.  The economic power should improve the well being of millions in Africa if they stop the unrest and work together.. Some are..

Just a thought,
BimetalAuPt