i also assume that the two handbags and the three pairs of shoes Mrs Naam bought yesterday were not paid for in gold.

No but perhaps the recent profits she has in gold holdings helped her decide to treat herself

Kidding aside FOFOA has a good column this week along the same lines...

Many have asked about an eventual exit from gold after the Freegold (physical gold market) one-time revaluation is complete. Aside from the obvious answer of using your wealth in ways that will rebuild a broken economy, this is a complicated question about value storage to which I will now give a grossly simple answer, only because it pertains to the subject of this post. And it's probably not what you'd expect.

It is an extremely small group of people that followed ANOTHER's advice 13 years ago and sunk their retirement nest egg entirely into physical gold. And the following is my personal opinion only as it pertains to this extremely small group.

The whole point of an over-sized position in physical gold now, like Aristotle described above, and as explained by ANOTHER, is to let your wealth ride out this inevitable earthquake in the one asset that will benefit the most. Once the earthquake has passed, such a large position will not be as necessary.

Giants don't go "all in" to gold. And they won't exit their positions for reasons I have explained in other posts. CB's are different, they don't collect non-monetary assets. They also won't exit their gold positions. And most average gold investors will be lucky to retain their present purchasing power. They won't exit their gold positions until they need the money for expenses.

So the "exit" of this extremely small group I am talking about will be inconsequential to the Freegold price of gold. In fact, there will still be a rush INTO physical gold while ANOTHER's followers quietly exit a portion of their over-sized position in favor of other wealth assets that can be a little more enjoyable in everyday life than gold hidden away in a vault.

During normal times there are many valuable, non-essential, non-industrial, non-economic physical assets other than gold that protect your purchasing power just as well as gold. And they can also be enjoyed more openly in your home and your life. These are what Richard Maybury calls "endurables". They include: Real estate, fine art, antique furniture, rare collectibles, ancient artifacts, fine gemstones, fine jewelry and rare classic cars. None of these items will do well in the brief gold revaluation as ANOTHER explained. But other than that one, historic, brief burst in time, they do quite well.

Just had to chuckle at this Youtube video. It was on Kitco, so many of you may have seen it already.

I couldn't get the image of Naam and Mrs. Naam out of my head as I was watching it. (I know...not really analagous at all, and Naam is much more intelligent and articulate than this guy, but it is still funny.)

Naam, on 2010-12-02 19:45, said:

i also assume that the two handbags and the three pairs of shoes Mrs Naam bought yesterday were not paid for in gold.

No but perhaps the recent profits she has in gold holdings helped her decide to treat herself

come on Flying! you are a married man and should know that wives are genetically engineered and compelled to buy shoes and handbags regardless of profits or losses and irrespective how many shoes and handbags they already own.

Just had to chuckle at this Youtube video. It was on Kitco, so many of you may have seen it already.

I couldn't get the image of Naam and Mrs. Naam out of my head as I was watching it. (I know...not really analagous at all, and Naam is much more intelligent and articulate than this guy, but it is still funny.)

to set the record straight. i am very fortunate having a rather intelligent wife who is well aware that all her gold profits are only recent and that since 21 years retirement our rather comfortable lifestyle is financed exclusively by income generated by other investments. it should also be mentioned that our "competition gold vs. alternatives" is a very friendly one and that most of the time we laugh heartily when we compare our results sipping a glass of wine.

:jap:

Just had to chuckle at this Youtube video. It was on Kitco, so many of you may have seen it already.

I couldn't get the image of Naam and Mrs. Naam out of my head as I was watching it. (I know...not really analagous at all, and Naam is much more intelligent and articulate than this guy, but it is still funny.)

to set the record straight. i am very fortunate having a rather intelligent wife who is well aware that all her gold profits are only recent and that since 21 years retirement our rather comfortable lifestyle is financed exclusively by income generated by other investments. it should also be mentioned that our "competition gold vs. alternatives" is a very friendly one and that most of the time we laugh heartily when we compare our results sipping a glass of wine.

:jap:

Mrs Naam must have an extra big smile - if the USD goes up so does her gold but if USD goes down her Gold goes up even more !

How do you explain that ?

Bernanke Doesn't Rule Out QE Exceeding $600 Billion

http://www.bloomberg.com/news/2010-12-03/bernanke-won-t-rule-out-further-asset-purchases-cbs-s-60-minutes-says.html

Mrs Naam must have an extra big smile - if the USD goes up so does her gold but if USD goes down her Gold goes up even more !

How do you explain that ?

in this respect Mrs Naam's views are different as her yardstick is not the USD but a mixture of EUR and SGD.

Who will win next week's race lower the Euro or $, heads or tails / Perhaps the Euro - with Air Traffic problems in Spain and continued differences on policy between Merkel , Trichet & co - but with Potential extra QE2 /3 ? from Bernanke perhaps the $ -

What about Bonds ?

http://www.financial...is-the-question

'I am pleased that the market has made the connection that more QE and more stimulus is bad for bonds. The market is the only discipline left that may slow the insanity creeping over D.C. When market forces turn on the “New Monetarism” and shut the door on the insanity, the policies will change. Until they get hit hard over the head the Fed will continue to print'

-----------------------------------

Those in the East know where to invest in these times and now it is slowly dawning on those in the West /

India 2010 Gold Imports Likely Up 46% on Rural Demand

http://online.wsj.com/article/SB10001424052748703989004575652373890307644.html?mod=googlenews_wsj

A Crackdown On Chinese Real Estate Will Push All That Liquidity Into Gold

Read more: http://www.businessinsider.com/a-crackdown-on-chinese-real-estate-will-push-all-that-liquidity-into-gold-2010-12#ixzz17E03GJhM

Edited December 5, 201015 yr by churchill

The scramble for physical metal intensifies

--------------------------------------------------------------------------------

December 4, 2010 – The scramble for physical gold and silver is intensifying. People increasingly want to own the real thing, and not some paper substitute, all of which come with counterparty risk. This conclusion is apparent from the following two charts of gold and silver forwards, which are based on data made available by the London Bullion Market Association through November 24th (the most recent data available).

http://www.fgmr.com/scramble-for-physical-metal-intensifies.html

The scramble for physical metal intensifies

IMO we ain't seen nothing yet

But its warming up

47.5 gold/silver ratio has been met

Local price has hit 20,000 baht/baht.

SP500 deflated by gold

The US stock market as deflated by gold has never really recovered from the financial crisis. This is a better reflection of the real economy in which unemployment and underemployment is running at the 17+% level.

The only progress we have seen in stocks is due to the monetary expansion of the Federal Reserve balance sheet. And most of that expansion has been channeled to the financial sector where it is being consumed by bad debts, enormous personal bonuses, and speculation.

pretty funny: All tax cuts get extended AND the Democrats get to extend unemployment benefits.

no worry, the real taxation will come through a depreciated us dollar.

J.P. Morgan Getting Squeezed In Silver Market

http://www.benzinga.com/trading-ideas/long-ideas/10/12/668905/j-p-morgan-getting-squeezed-in-silver-market-slv-jpm

Well I'm no Goldbug but I would point out that since the publishing of the book you show, the $USD and the $SPX are about flat and Gold is up over 200%. Just saying.

Silver saw 30 highs today (USD)

Edited December 6, 201015 yr by flying

Something to consider......

For those who bought Silver at over 77/1

Today they can swap some of it into gold at 47.3/1

That is like buying gold for roughly $522 per ounce ( their original cost of the silver ) Which lowers their adjusted cost of the rest of their gold holdings.

Or another way of looking at it....straight up trade & getting 30oz of silver bump ( value $900 USD at today's prices...actually more with premiums ) for each ounce of gold swapped into. Compared to the original 77/1

Either way....Not a bad deal

Note I said *some of it* as it would be crazy IMHO to completely exit the silver train

Edited December 6, 201015 yr by flying

Don't trust your bank !

In an exclusive King World News interview, Jim Rickards told KWN that he was informed that a client of a major Swiss bank requested to take his one ton of physical gold that he owned outright out of the bank, and the bank would not give him his gold. The client had to use his lawyers and threaten to go public in order to eventually get his gold

more ..

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/7_Jim_Rickards_-_Swiss_Bank_Client_Denied_His_%2440_Million_in_Gold.html

Edited December 7, 201015 yr by churchill

Now it is Heads or Tails or Gold

'“With all the concern going on about the U.S., and all the debt issues in Europe, there’s no currency that anybody really wants to hold,” said Connor Noonan, an analyst at Castlestone Management Ltd. in London. “What we used to see in this kind of situation was safe-haven buying in dollars and now that’s turning into safe-haven buying of gold.”'

http://www.bloomberg.com/news/2010-12-07/gold-falls-as-gain-to-record-prompts-sales-silver-drops-from-30-year-high.html

cycle types calling another turn date on Dec 9th

As always,,,,,Will be interesting to watch

Well I'm no Goldbug but I would point out that since the publishing of

the book you show, the $USD and the $SPX are about flat and Gold is up

over 200%. Just saying.

I wouldn't consider 200% as to 'make a fortune' ...

From Charlie Rose

All about gold with John Hathaway, Peter Munk, & James Grant

http://www.charlierose.com/view/interview/11330

Keep an eye on China and Gold /

How To Play Growing Chinese Gold Demand

http://www.hardassetsinvestor.com/features-and-interviews/1/2453-how-to-play-growing-chinese-gold-demand.html

If only 10 percent was real what the goldlovers dream post and cite in this fred we would see

a gold price of 20,000 Dollars per ounce----- today. Sweet dreams !

Our Friend Gambles on CNBC

http://www.cnbc.com/id/15840232?video=1688284576&play=1

Gold will go up in this market environment and probably plummet when the world becomes more optimistic. It's Vegas "baby" and I'm just watching the players and not partaking. For you fortune tellers on TV, the best of luck.

From Charlie Rose

All about gold with John Hathaway, Peter Munk, & James Grant

http://www.charlierose.com/view/interview/11330

Thanks churchill that was a very good article.

Nice that the transcript was available to read.

J.P. Morgan and the Great Silver Caper

http://dailyreckoning.com/j-p-morgan-and-the-great-silver-caper/