Quiet holiday trade worth watching …

First off, happy holidays! I wish you the best for the coming year.

You’ll also want to view my video update for this week. Though it’s on light volume, holiday trading is dominating the action — there are always hidden messages to be found in market action. That’s why I continue to watch all the key markets very closely.

In this video update, you’ll find my recent comments on the action in the gold market, in silver, the dollar, and the Dow Industrials. Don’t miss it!

Best wishes for a happy, healthy and wealthy new year!

Larry

IFTHEN(FIELD9=1) {

P.S. One way to get off to a great start for 2012 is to do what members of my Resource Windfall Trader have been doing — raking in the profits! In the last 12 months, for instance, my track record shows 18 closed trades held for an average of 44 days, for an average gain of over 45%! That includes the inevitable losers that occur.

And it includes some big winners as well, such as 170% gains on the plunge in the euro … 233% in just over a month as gold slumped … and over 100% in just two months as the stock market slid, and more!

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P.P.S. We’re getting down to the last few days during which you can save a bundle on Weiss investment services in 2012 and beyond … and also reserve your place at our members-only investment briefing on New Year’s Day! However, membership rolls close THIS COMING SATURDAY, December 31. So if you have not yet joined, you must activate your membership SOON in order to gain access to our first investment briefing in 2012. Click here for more information.

Internal Sponsorship

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Our families: ENDANGERED.

Startling new video evidence that Washington is preparing to confiscate your wealth and abolish many of your most cherished personal liberties …

Click here to watch

}

IFTHEN(FIELD9=2) {

P.S. One way to get off to a great start for 2012 is to do what members of my Resource Windfall Trader have been doing — raking in the profits! In the last 12 months, for instance, my track record shows 18 closed trades held for an average of 44 days, for an average gain of over 45%! That includes the inevitable losers that occur.

And it includes some big winners as well, such as 170% gains on the plunge in the euro … 233% in just over a month as gold slumped … and over 100% in just two months as the stock market slid, and more!

BEST OF ALL, to start the new year off on the right foot, you can now join Resource Windfall Trader for a full 30% off the regular price. So go ahead — start off the new year with all the profit potential you can muster up by clicking here right now!

P.P.S. We’re getting down to the last few days during which you can save a bundle on Weiss investment newsletters in 2012 and beyond … and also reserve your place at our members-only investment briefing on New Year’s Day! However, membership rolls close THIS COMING SATURDAY, December 31. So if you have not yet joined, you must activate your membership SOON in order to gain access to our first investment briefing in 2012. Click here for more information.

Internal Sponsorship

An American Apocalypse in 2012?

Social Security: TERMINATED.

Medicare: CANCELLED.

Our cities: ABLAZE.

Our families: ENDANGERED.

Startling new video evidence that Washington is preparing to confiscate your wealth and abolish many of your most cherished personal liberties …

Click here to watch

}

IFTHEN(FIELD9=3) {

P.S. One way to get off to a great start for 2012 is to do what members of my Resource Windfall Trader have been doing — raking in the profits! In the last 12 months, for instance, my track record shows 18 closed trades held for an average of 44 days, for an average gain of over 45%! That includes the inevitable losers that occur.

And it includes some big winners as well, such as 170% gains on the plunge in the euro … 233% in just over a month as gold slumped … and over 100% in just two months as the stock market slid, and more!

BEST OF ALL, to start the new year off on the right foot, you can now join Resource Windfall Trader for a full 30% off the regular price. So go ahead — start off the new year with all the profit potential you can muster up by clicking here right now!

Internal Sponsorship

An American Apocalypse in 2012?

Social Security: TERMINATED.

Medicare: CANCELLED.

Our cities: ABLAZE.

Our families: ENDANGERED.

Startling new video evidence that Washington is preparing to confiscate your wealth and abolish many of your most cherished personal liberties …

Click here to watch

}

IFTHEN(AFF) {

P.S. One way to get off to a great start for 2012 is to do what members of my Resource Windfall Trader have been doing — raking in the profits! In the last 12 months, for instance, my track record shows 18 closed trades held for an average of 44 days, for an average gain of over 45%! That includes the inevitable losers that occur.

And it includes some big winners as well, such as 170% gains on the plunge in the euro … 233% in just over a month as gold slumped … and over 100% in just two months as the stock market slid, and more!

BEST OF ALL, to start the new year off on the right foot, you can now join Resource Windfall Trader for a full 30% off the regular price. So go ahead — start off the new year with all the profit potential you can muster up by clicking here right now!

}

IFTHEN(FIELD9=0) {

P.S. One way to get off to a great start for 2012 is to do what members of my Resource Windfall Trader have been doing — raking in the profits! In the last 12 months, for instance, my track record shows 18 closed trades held for an average of 44 days, for an average gain of over 45%! That includes the inevitable losers that occur.

And it includes some big winners as well, such as 170% gains on the plunge in the euro … 233% in just over a month as gold slumped … and over 100% in just two months as the stock market slid, and more!

BEST OF ALL, to start the new year off on the right foot, you can now join Resource Windfall Trader for a full 30% off the regular price. So go ahead — start off the new year with all the profit potential you can muster up by clicking here right now!

}

Video Transcript

Good morning, this is Larry Edelson for my Uncommon Wisdom market video update for Monday, December 26. First off, I hope you had a very Merry Christmas. And, of course, a very Happy New Year coming up. I wish you nothing but the best for your health and wealth for yourself, your family and friends for the coming New Year.

This is Monday the day after Christmas so the market action is very light of course, and additional pre-holiday, pre-New Year’s type of trading action, so I’m going to keep this video a bit brief because most of my in-depth analysis has been in my written comments in my column recently.

Having said that, please stay tuned to my columns. As light as the holiday trading may seem, it is important during this period to keep your eyes on the market. Sometimes when it appears as if nothing is happening, the underlying forces are actually gathering strength for the next big moves. Having said that, let’s go right to the charts.

I want to go to the gold chart first: Over the last couple of weeks, we’ve seen that big sharp decline that I was forecasting in gold. We’ve since seen a rather modest bounce back up above $1,600.

We did get the important sell signal by closing below $1,610 last week. I now fully expect gold to continue lower. We should have another leg lower very soon, probably even before New Year’s or immediately thereafter testing support down at the $1,500 level and down at the $1,480 level.

At that point I do expect gold to break $1,480 and move even lower. I don’t want to get too far ahead of myself right now or ahead of the market so let’s leave it at that.

I want you to look lower in gold and continue to hedge up your positions as I’ve recommended and suggested in my Real Wealth Report and suggestions I’ve made in Uncommon Wisdom.

Let’s now go to silver: Silver is looking pathetic. It continues to put in another plunge down to just below $28. We rallied back up very modestly like I just showed you in gold. But you can see in this silver chart how there is very little in the way of support until we get down to $20. I do have some system support $27, $25, and $23. I expect $27 to give way.

At a minimum I expect $25 to be tested and very likely $23, possibly even a little bit lower. And that should come during the month of January. So please continue to refrain from purchasing any more silver until we get to these lower levels.

Now let’s go to the U.S. Dollar Index: The Dollar Index has pretty much been doing largely what I expected. We rallied up above the 81 level, we pulled back and tested support at the 80 level, and now it looks like we should move up to the next resistance level at around 83.

This is all a result of the continuing problems in Europe. Europe has done nothing to resolve its sovereign debt crisis and it continues to deepen. So that is sending money basically into the dollar, which is bolstering the dollar in the short term. Keep in mind, the dollar long term remains very, very bearish.

Now, the Dow Industrials: I find the Dow Industrials very, very interesting. Its action has been really fascinating to me. We came out of this low last month and rallied sharply up to the 12,252, 12,232 level … which I indentified for you in my Real Wealth Report and my Uncommon Wisdom as a very important year-end resistance level, with the Dow so far having been unable to penetrate it.

I am looking back down in the Dow to 11,000, then 10,300, and even 9,100 in the first quarter of 2012.

However, the attraction of the market to the 12,232 level is telling me something very interesting on a longer term basis. To me it’s confirming the longer term hidden strength in the Dow Industrials, which will eventually see it move to new record highs and inflate higher with gold and commodities when the sovereign debt crisis really hits the United States.

You saw the opening act of it in the summer with the budget crisis and the debt ceiling talks — that was just the opening act. We are now seeing the sovereign debt crisis fully infect Europe and soon it will fully infect the United States. And at that point, believe it or not, even if the economy continues to deteriorate we will see a move higher in the Dow Industrials to new record highs.

I repeat, between 1932 and 1937 as the U.S. economy continued to go downhill during the Great Depression, the U.S. stock market rallied almost 400% on the back of a sovereign debt crisis and defaults in Europe and a sovereign crisis in Washington. So you need to keep that in mind for the longer term. That’s a unique perspective that most analysts don’t talk about, but I do want you to keep it in mind, and I will be talking a lot about it during 2012.

This is Larry Edelson. Again, have a very happy, healthy and safe New Year.

Your thoughts on “Quiet holiday trade worth watching …”

    1. Thank you for the charts Darah…it seems that both of you are in the same point of view…but not so sure when the FED have promised the ECB UNLIMITED DOLLAR SWAPS at half the price, this certainly is asset inflationary but who knows..we’ll see I guess.

  1. THE SWEET DOLLAR SWAP DEAL

    The dollar swaps between the FED and Europe skyrocketed from $400 million to over $50 billion within days after the sweeter deal was offered recently, as reported by Bloomberg. Dollars are flowing like water to Europe.

    HOUSE OF MORGAN (the FED) TO THE RESCUE?

    With Europe’s back to the wall, with the American economy so closely tied to Europe and its banks, and considering that the bank cartel ownership of the FED (remember JP Morgan Chase is a primary owner, and the House of Morgan was originally from Europe), don’t be surprised if that dollar swap for Euros skyrockets to not $50 billion, but over a trillion.

    WHAT TIPPED THE U.S. INTO THE GREAT DEPRESSION?

    As reported by some authors writing on the Great Depression Era, it was the American bank cartel’s choice after WWI, to bailout England and preserve the lifestyle of the Brits at the expense of the American people, that tipped the U.S. into the Great Depression. That was after the Brits tricked the American people into supporting entry into WWI in 1917 with the sinking of the Lusitania in the Atlantic. Churchill called off the naval escort that was protecting the Lusitania. He left it vulnerable according to plan. The Germans ran full page ads in the NY newspapers warning Americans NOT to ride on the Lusitania as it was carrying military supplies not just tourists. Churchill set it up for sinking. Till then Americans did NOT want to enter the war. They considered it a European problem, not theirs.

    The cunning Churchill fixed that. There were Americans onboard, and when the ship was torpedoed by the Germans, the American people were angered and thus tricked into entering the war. Thus Germany was defeated. America had saved the as*es of the Brits. But it did not end there.

    THE BANKER CARTEL IS COMPOSED OF INTERNATIONALISTS

    The banking cartel is composed of billionaire internationalists whose primary concern is NOT the preservation of your lifestyle. Their allegiance to London supersedes that.

    LONDON HATES AND ENVIES GERMANY AND ALWAYS HAS

    Let’s see if there is a repeat of their past actions. Recently England refused to put its expected $30 billion into the IMF rescue fund for Europe. England NEVER acts to save Europe when things get dire. It ALWAYS acts in its own self interest. It chose not to join the Euro. Now it chose NOT to help rescue the Euro.

    London is the real thug behind the curtain. In 1910 they had undercover operatives working in Russia to try to incite Russia to attack Germany. By that time the Germans had surpassed the Brits in industrial output, scientific innovations, and standard of living. The Brits have always envied the Germans.

    THE SHAME OF I.B.E. (itty bitty england)

    The Brits “won” WWII, but again, look who far surpassed the Brits, even though it was crushed in the war and “defeated.” Very soon after WWII (with the help of the US bailout Marshall Plan), Germany quickly rose to prominence in Europe once again. Its people soon enjoyed a lifestyle superior to those in England. London is seething with jealously. They “won” the war, but are licking the boots of the Germans. Germans eat well, have gleaming cities, and enjoy a high lifestyle, while the Brits slog down grog and crumpets and pay obeisance to that homely queen and her arrogant son.

    ENGLAND IS GOING DOWN

    Now, we see a strong economy in Germany, a people rich and prosperous, while the Brits are in the midst of extreme austerity. It was only a few weeks ago that British commoners all over the country were looting, rioting, and burning everything in sight, protesting the austerity imposed upon them by London.

    Britain is still saddled with huge debt, an unhappy populace, and a seething hatred of Germans and their prosperity.
    London despises the rise of Brussels (capital of the European Union) as a rival to its dominance in world finance. This is the reason they refused to help save the Euro.

    WILL THE AMERICAN PEOPLE BE SACRIFICED FOR EUROPE OR THE BRITS?

    Will the FED come to the rescue? Will the massive $50 billion dollar swap for Euros turn into a TRILLION dollar swap? Will the ratlike banking cartel once again sacrifice the American people and their well-being by a massive transfer of money from here to Europe as they did after WWI, which tipped the US into the Great Depression?

    We don’t have long to find out.

  2. Thanks Larry! Keep up the good work and do let us know immediately when it is time to trade fiat for real money. Do keep in the back of your mind that we want to trade fiat for metal money before our fiat goes “POOF” in a global banking collapse.

    Merry Christmas!

  3. The dollar swaps to Europe swelled from $400 million to over $50 billion after the FED sweetened the deal recently, as reported by Bloomberg Press.

    There is reason to believe that amount could swell to a TRILLION if the FED decides to bail out Europe.

    Remember the FED is a consortium of mostly secret owners, but it is known that JP Morgan Chase is one of the major owners. Remember also that the House of Morgan was originally transplanted here from Europe.

    After WWI, the international bankers decided that the U.S. would transfer massive funds to rescue the Brits from a quickly accelerating impoverishment and diminishment in lifestyle. The war had dealt them a severe economic blow.

    Now the US central bank came to their aid, transferring massive funds to London. That act tipped the U.S. into the Great Depression (1929-1942), thus sacrificing the American people to save the British lifestyle.

    That may happen again soon if the FED lets the amount of dollar swaps (or uses other “back door” transfers of wealth) swell towards a TRILLION. It is no secret that major European banks, including those in England, are on the verge of collapse and hanging by a thread.

    In WWII the Marshall Plan was used to save Europe from economic collapse. The central bankers are willing to sacrifice the American lifestyle to save their “worldwide system” from collapse.

    Let’s see what will happen. It won’t be long before we find out.

  4. Two previous entries, meant to warn the readers of what is entirely possible concerning the USA-EU sovereign debt crisis have been deleted or censored. This is unfortunate.

  5. Please place my comments back on the blog. You can delete the portion about the homely queen and her arrogant son if that offends you.

  6. Silver is looking pathetic? Larry, with all do respect, a major rally in the dollar is necessary for silver and gold to drop as you forecast. The spot price has been exposed as a control mechanism, and losing credibility in the futures market. Traders know that delivery of physical is not guaranteed as clients of Corzine’s firm found out the hard way. Holders of bogus holdings in GLD and SLV will suffer a similar fate. The raid on Libyan and Greek gold to suppress spot prices through leasing is a desperate and short-lived attempt by Central Banks to prevent the inevitable. The ongoing Fed policy of a weak dollar and the widening spread between spot and physical valuation make your price predictions exercises in futility. I use to invest in silver and gold futures, but bailed out before the music stops.

    1. Silver is consumed by thousands of persons in the form of colloidal silver. This is microscopic particles of silver suspended in a fluid. It is a powerful natural antibiotic. In older cultures, the wealthy and powerful families in the Orient consumed gold in the form of ultra-thin wafers. It was believed to increase their longevity. So yes, you can actually eat gold and silver, and many persons have done so.

  7. I’m interested to find out how come you don’t talk about cycles anymore? Also, I can not find any info on how the Million Dollar portfolio has been doing. It would show me how honest this service is if it doesn’t just market something when you happen to get it right.

  8. LARRY HAS BEEN VINDICATED!
    The gold and silver gurus that blog on this site were salivating, ready to roast Larry alive on a bed of Thai spices and coconut leaves, watch his juices simmer nicely, then eat him alive if his prediction of a drop in the PMs did not come to pass.

    Well, as of today, it seems Larry is vindicated and the self-proclaimed gold and silver gurus are regurgitating their lunches.

    Yes, they are all squirming now, wondering what will happen next and if PMs will drop even further. Some are so frightened and nervous they are becoming incontinent, as they have nightmares of their gold and silver hoards (in worthless paper investments) fading away into oblivion.

    Will the gold/silver gurus have the courage to hold their positions and wait for the hoped for skyrocketing of the PMs they believe is coming later on? Can they bite their tongues and pretend the present is only a bad dream? Will they hold on the the very end, even as their positions shrink like a man’s male member when he swims in cold water? Do they have that much faith?

    My guess is that they believe this dip is only temporary. Their gold religion demands such a belief. They will shun any other possibility—-it is unthinkable! No, gold is king and cannot be defeated they shout in defiance! Larry be damned they rage!

    But now, quietly, in his bunker in Thailand, enjoying some Thai noodles and beer, Larry sits quietly, patiently, waiting to see what the gold gurus that berated him will blog now, if they have the courage to speak.

    For a review of how they all gloated go back a few months to September and see what they had to say, as they all chimed in, raking Larry over a bed of hot coals.

    Where are they now? The blog is silent! You can hear a pin drop.

    Find it here:

  9. This dip is temporary, and we have already seen as low as $26 in prior months. so this is nothing to tie your panties in a bow over.

    Anyone who follows martin armstrong has seen this coming, with a bit more spot on timing.

    Larry now agrees with Martin that the pull back in prices will hit bottom in Jan to early Feb.

    Farting Softly is also known as ABE from many months ago, the writing styles are identical.

    Happy New Year to you all, load up on physical while you still can.

    Not a damn thing has changed fundamentally, except players are exiting the comex for fear of being “MF’ed”. Also, with the FED trading dollars with Europe, there is a short term bonus for the dollar, that will be blown out this coming spring.

  10. Farting softly might be inhaling a little more than he should. The MF Global default on delivery of warehouse receipts for physical metal is unprecedented and just the beginning. As I have stated numerous times before, paper metal including GLD, SLV and my past money maker AGQ, should be avoided like the plague. The current thin-market draw down on paper metal is another example this. Meanwhile the spread between paper and physical keeps widening as they are now two different markets; one for the clueless and bloated Fart, the other for the smart money. Go on eBay and try to buy an ounce of gold, silver and platinum near spot……. get it!

  11. It appears that the love affair between pat and ole Zachary is still steaming hot—-the PM love affair of course. I remember reading their blog entries months ago, always attesting to their deep devotion to and camaraderie with each other, and how lady pat always used her favorite word to describe ALL OTHER bloggers here: clueless

    Yes, she took a shot at each and every one, relegating them to the trash heap of imbecility, dismissing all comments but her own, establishing herself as the Supreme Guru of Gold, to be worshiped and obeyed or labeled: clueless

    When we study the annals of history we learn what eventually happens to those who believe themselves invincible.
    And, with ole Zach sniffing under her PM dress, it stands to reason he is definitely under her spell!

  12. Abe, the one who farts softly, your one of the silliest goofnuggets I have ever met. Time will tell ‘ol boy if we are in a temporary slump or a tiered fall. As you state, history will tell us, that it will. I know you’re invested as well so what say you to your investments as this point, hmmmm? Do you believe your own precious metal investments will crash like your Chinese stock ventures did, or will they rebound like a gladiator with a second wind and slay the deleveraging lion?

  13. Farting softy…. ( couldn’t think of a better name ? ) i think you should have your own website .

  14. Instead of even just an educated guess, we get a facebook ” I don’t like you! here’s why! even though I know nothing about you” diatribe. I have invested in PMs since 1997 and remember buying Krugerrands for $350 instead of Gasex for 2.50. If I met Farty on a blind date, one whiff and I’d be gone.

  15. Larry … this is for you … you wrote ” during the time from 1932 to 1937 the DOW gained almost 400 % ” … I googled it . but it shows up from 1933 ro 1936
    1933 66.7 % up
    1934 4.1 % up
    1935 38.5 % up
    1936 24.8 % up … total 134.1 % gain but not almost 400 %

    HOW DID YOU GET TO A ALMOST 400 % gain ?

  16. Has anyone ever wondered what really went on behind the closed doors of the Bretton Woods Conference in 1944? Think about this for a moment: The USA was engaged in a super-expensive Cold War with Communism for over 30 years. It cost the U.S. tens of thousands of lives of its young soldiers fighting in Korea, in Vietnam, etc. It caused guys like Zach to have to duck under his desk in grade school during nuclear attack drills. Billions went down the drain building nuclear stockpiles that were later scrapped or outdated. China and Russia were the demons in the minds of America and the anti-Communist propaganda was constant and ubiquitous.

    Then, suddenly, within a few short years, the U.S. is sending China (supposedly this evil Communist enemy nation bent on destroying our way of life) over $200,000,000,000.00 a year for inferior and often poisonous (lead,etc.) products in import business. All the while, the trade deficit grew larger and larger.

    The yuan was allowed to remain artificially low, as American goods became more expensive for overseas buyers. U.S. ports were absolutely flooded with Chinese goods, and thousands of 18-wheelers hauled the junk all over the nation 24 hours a day, 7 days a week, 365 days a year. Americans bought it up, only to find out soon enough that most of the products fell apart soon thereafter, malfunctioned, or had parts in self-assembly required kits that did not fit or were missing. Were they really saving money by buying such inferior goods? Meanwhile, the billions kept flowing to China, increasing year by year.

    Now do any of you find that odd? Why would Congress never question the logic of building up and enriching a supposed evil enemy bent on our eventual destruction? And why would Congress knowingly allow the American people to buy such products as poison toys, poison plastic goods, poison drywall that corrodes pipes and electrical wires, and pharmaceutical capsules filled with drywall and cement instead of medicinal drugs?

    Moreover, why would Congress do this, knowing it was steadily eroding the manufacturing base in the U.S., putting Americans out of work by the thousands as companies moved their plants to China for cheap labor, and giving China (an “evil” Communist country) billions of dollars more to build up its own nuclear arsenal and vast armies and weaponry?

    And, more importantly, why is Congress still letting this happen? Have you ever wondered about that? The true, hidden reason for this involves something most of you would find almost incredulous and shocking. And, it involves something near and dear to all your hearts. When you find out, it may radically change some of your long-cherished beliefs.

    But I’m not telling. At least not yet.

  17. The suspense is killing me! you ask a lot of questions leading up to the “not telling” conclusion. Kind of like the commercial where the guy gets the late memo. So much written; so little said. Thanks Nostradamusanus.

  18. I NEED AN ANSWER ……. WHY WAS IT SAID THAT THE DOW GAINED ALMOST 400 % WHEN IT REALLY WAS 134 % ???????????????????????????????????????????????????????????????????????????

  19. Heidi,

    Like awaiting a whiff of pleasant air from “farting softly”, no answer will come from Larry.

    He has constructed a great wall between he and his readers, and no longer responds openly to questions or criticism.

    You know what they say, 67.93585% of statistics is made up and lacks any empirical evidence. That too was a made up number, but you get the point.

  20. To all, I hope you have a safe, happy and prosperous New Year, enjoy your time with your family and friends, for with the love of them, are you truly wealthy. God bless.

  21. It amuses us when we see persons gloating about having bought gold in past years for $350 per ounce. Here is a review of how the prices of common items have risen through the years:

    HERE IS THE AVERAGE PRICE OF EACH ITEM LISTED IN THE YEAR 1960
    Loaf of bread —22 cents
    New home——–$12,700
    Average wage—$5,315
    New car———–$2,600
    Gallon of gas—-$0.25
    HERE IS THE AVERAGE PRICE OF EACH ITEM IN 1980
    Bread————–50 cents
    Home————–$68,700
    Wage————–$19,500
    New car———–$7,200
    Gallon of gas—-$1.19
    HERE IS THE AVERAGE PRICE IN 2008
    Bread————–$2.79
    Home————–$238,880
    Wage————–$40,523
    Car—————–$27,958
    Gallon of gas—-$2.051

    Now, we are about to enter 2012, and in my favorite stores here, bread averages over $3.50 a loaf. Gas here is $3.65 a gallon for the lowest grade. And on it goes.

    NOW HERE IS THE PRICE OF GOLD FOR THOSE SAME YEARS:
    1960 —-$36.00 per ounce
    1975—–$151.00 per ounce
    1985—–$354.00 per ounce
    And, today, it was listed on MONEX at $1566 per ounce.

    Now, if you bought gold in 1985 when it was $354 an ounce do you have a right to boast, “I was so very smart. I was a real brain. I was more brilliant than Venus on a clear winter night! Man, was I a genius. I made such a killing!! No one is as smart and cunning as me!! I bought GOLD, and now I am way ahead of the pack.”

    Think again. In 1980 bread was 50 cents a loaf. Now I pay $3.50 a loaf. That is an increase of 700%. The average house then was $68,700 and now it is about 4 times that. Maybe the price of homes might be lower in Mississippi, but what counts is the prices WHERE YOU ARE. That is the inflation that counts for you. The average home where I live is now over $689,000—about a 1000% hike since 1980 prices.

    Now do some simple math folks: Gold today ($1566) divided by the price of gold in 1980 ($354) = 4.42
    That is not even 450% increase in value.

    Gold has not even increased 5 times over during the same time our other basic expenses increased by much more
    even as much as 900%. And I have a feeling if we looked at utilities and some other areas it might be over 1000% in that time period.

    THE PUBLIC HAS BEEN DECEIVED FOR A LONG LONG TIME. GOLD IS NOT SAVING YOU AS YOU BELIEVE. But mountains of propaganda from the “elite” who hold most of the gold, and make you believe it is much more valuable than it is, have caused you to believe the GREAT DECEPTION.

    If you bought gold in 1980 for $354 an ounce you aren’t ahead one bit—-IN FACT YOU LOST OUT!! But, a gold worshiper is too deceived to admit it. They are in denial. They will never admit the facts. It is too painful. Just like a person in a religious cult, they cannot see the reality. They have so immersed themselves in THE FAITH (the Gold god) that they will die before they will admit they were wrong.

    It is impossible for a deceived person to realize the truth from his own point of view, because his own point of view is based in a fantasy—–OR CALL IT A DECEPTION. She or he has believed for so long, lived the fantasy for so long, has so much invested in that fantasy, that to admit error would be utterly devastating to the ego and might cause an emotional breakdown.

    The SHEEP will continue to follow the pied piper. And the pied piped is the elite who hold the great secret hoards of gold—–FAR MORE THAN THE PUBLIC IS LED TO BELIEVE ACTUALLY EXISTS. They had to make the people believe gold was scarce to keep the prices higher and to back up their fiat paper money by the trillions.

    Gold is VERY common on planet Earth. It is NOT scarce. Go back and read my blog entries from Larry’s past reports. You will learn why.

    YOU FAITH IS BASED ON ILLUSION.

    1. Fartman, you are not paying attention. The current spot price you quote does not reflect REAL price realized for physical. Where do you buy your bread? Now, please argue my holding TGLDX for the last 10 years, and also SLW since early 2009 as I mentioned in past posts. Let me guess! You had and still have no clue; missed the up-to-date secular bull market in commodities have you? thought so. You need to get your feet wet a little……. you will feel better. Maybe I can send you a pic of me wearing my shinny 22K Christmas present!

  22. FS. Gold is a way to preserve wealth. For example, in 1925, gold traded at around $20/oz and a new car cost about $500 (25 oz of gold). Presently, gold trades at around $1500/oz and a new car cost about $30,000 (20 oz of gold). If you had put your $500 in a drawer in 1925 and took it out now to buy a new car, you would fall far short but if you took that 25 oz of gold out of the drawer you could still exchange for a new car. That’s how I look at it.

    1. Yes, but you forget that not so many years after that, the Federal Government demanded all the gold held in private stashes—-legal confiscation. To hold gold bullion at that time in America was illegal. It happened. It is a fact. And, you saw no more gold coins being produced by the Federal mints until more recent times.

      If the government, at any time in the future, comes to consider the holding of gold by private individuals to be against its own interests, it can, and will, confiscate it once again.

      Then you could not openly use it for anything without risking arrest, even if you did manage to hide some. There was a reason that gold was confiscated in the 1930’s. When you find out what that reason was, you will have a BIG PIECE of the puzzle.

      So to say that you bought gold in 1925 at the amount you stated, then bought a car with it today is a moot argument, as no American could have legally possessed gold bullion from 1925 until after the confiscation and up to the present day.

      One blogger mentioned that I chose only certain select dates to talk about inflation and prices. That too is irrelevant, as obviously between the years I did chose to illustrate price rises, the prices for most items kept rising in increments, so any years between 1960 and 2008 could have been chosen to illustrate the point equally well.

      And remember, the only relevant inflation, is the LOCAL inflation where you live. If my town has a 900% increase in electric costs between such and such years, your town might have a 1200% increase. So the inflation that is relevant is the one that affects YOU. If the cost of bananas goes up, and you do not eat bananas because they make your cheeks turn blue, then the inflation in the cost of bananas is irrelevant to you.

      Think before you write.

  23. Farty is a long winded idiot. Best to be ignored. I love how he always cherry picks the time periods, prices or stats that go against gold. So whats the answer know-it-all? Should I have invested in the stock market the last 10 years? That worked out real well. I bought physical gold years ago and have a 100% gain. Sold a little at $1820. I did it because I follow the Kondratieff Cycle. Just because I own it doesn’t mean I worship it. I’ll sell it all in a second when I feel the time is right. Are you a fiat worshiper? Gold isn’t scarce? Are you nuts? If there’s a rush to physical by even a low percent of the population we’ll see just how the supply holds up.

  24. The detractors only resort to defamation and personal insults because they cannot argue with the logic. Most of you were not even alive in 1925 to buy gold or anything else. To go back that far is irrelevant and baseless.

    You boast you can now exchange your one ounce gold coin that you bought in 1980 for $353 for $1566 today, but he $1566 today will buy you no more (probably much less) than the $353 you paid for it in 1980. You could have bought ANY HARD ASSET —fine art, precision instruments, china, fine furniture, etc.—-in 1980 for so much less and today it will be worth so very much more. In that aspect, gold is not unique.

    You could have bought a house with that $353 back in 1925–the year Mr. Berg sites above—-and today that house would be worth 1000 times more than it was then. I am probably the only person on this blog old enough to remember those days. We paid 10 cents to see a movie. Today, in my neighborhood cineplex, movies are $10.50 a pop. That is an increase of over 100 times! Gold did not even begin to keep up with that.

    You brag about the $1566 coin in your pocket, but each year you held it since 1985 it could buy you less and less and less, and in NO WAY did it keep up with inflation. And if you just hold it and don’t spent it THERE IS ALWAYS THE CHANCE IT WILL DROP DRAMATICALLY IN VALUE—-on the whim of the markets, public opinion, world events, etc. It would be like money actually disappearing from your hands in an instant. A dollar bill, on the other hand, might collapse too. But if it did, what would you exchange your shiny metal for? If you needed a bushel of potatoes to eat would you take a chisel and chip a tiny sliver off your $1566 coin to pay for it? No one has ever answered that one to satisfaction.

    Now if the $1566 ounce of shiny that you all love so much actually does drop considerably—let’s just say for example to $950—-then you REALLY lose. But if that $1566 is in dollar bills, at least, for now, you still have $1566 dollars, albeit shrinking slowly in purchasing power. But not nearly as fast as a bust from $1566 to $950 would be.

    In other words, your shiny metal is based on more faith than the fiat paper you all hate so much. If the markets get spooked and gold plummets to $950 will you still brag that you were so brilliant and made such a wise investment. George Soros dumped billions in gold recently. I wonder why?

    What if it dropped to $750 per ounce? Would you commit suicide? You people just do not—-because of years of brainwashing by gold dealers—-understand that the “value” of your precious PM is based on FAITH alone. There is no actual intrinsic value of $1566. It is a figure based on public fancy, whim, propaganda, deception. It can change at any time. Sure, it could change to $5000, but it could also change to $750. That’s the chance you take.

    Once you find out the truth about the amount of gold actually held in secret storehouses of the “elite” that have manipulated the value of gold for centuries, you will NOT be happy. They had to make the sheeple believe that gold was scarce and oh so valuable. GOLD IS NOT SCARCE ON PLANET EARTH. Go back to Larry’s previous blogs and find out why—-I outline it for you there. Just don’t commit suicide when you finally wake up to the truth.

  25. Someone once wrote: If the gold dealers are so VERY sure that gold will skyrocket to over $5000 per ounce, then why are they all so VERY anxious to sell ALL the gold they have to you right now for so much less? I always wondered that myself.

    If they truly believed it would be worth $5000 per ounce in 2013 then they could just hold it all themselves and become instant billionaires in a year or two. Yet, they want your fiat paper instead. Isn’t that strange? They want to sell every last ounce they have to YOU!

    They would never deny your fiat paper in exchange for the gold they sell, NO not for a minute! Yet the propaganda they put out tells you that fiat is worthless and based solely on illusion. But so is the value of gold based on illusion.

    GOLD IS NOT SCARCE ON PLANET EARTH. When you finally realize just how very much there is, you will feel like a deceived child. Go here to find out:
    http://www.uncommonwisdomdaily.com/euro-solution-will-fail-13386?FIELD9=2

  26. Is it the fluoride in the water or all the chem trails? They say the schools have “dumbed down” the textbooks. The average attention span is shrinking dramatically they say.

    Maybe all that is true because I notice the average blogger cannot read and digest more than a few lines. A more complete blog entry stuns them completely, and they turn away—–unwilling or unable to hold their concentration in one place for more than a few minutes.

    If they took the time to read more explicit entries they might actually learn something, instead of just spouting what they’ve heard for years due to brainwashing.

    Sad.

  27. Imagine this scenario—-just pretend for a moment:
    —————————————————————————————–
    It is 7am on Monday morning in April 2012. You get out of bed, take a shower, have breakfast, then turn on the radio. You shudder at what you hear. Your blood runs gold. The newscaster is raving excitedly that Greece has defaulted and left the Euro and that there is a run on big banks in Italy and France, and the military has been called out.

    He raves on that the five major banks in the U.S. have issued temporary lock downs on withdrawals with the backing of the Federal government. He says people are running to gold dealers in droves and the price of gold is shooting up by the minute.

    By noon gold is going for $3500 an ounce on MONEX. People are frantic in Europe, pushing and shoving each other at the entrance of gold dealer shops. The police say things are getting out of hand. By 5pm in Europe gold has reached $6000 per ounce.

    The gold dealers cry, “We only have a limited supply. It is supply and demand after all, so the price will continue shooting up!” By 8pm that same evening gold is going for $12,500 per ounce. People are giving their life savings to buy gold. Some are hocking belongings in pawn shops for a pittance, to get paper money to buy gold.

    The gold bug bloggers on Larry’s blog are in ecstasy. Some are wetting themselves. Others are pouring expensive champagne over their heads in glee. Yes, they all KNEW it would happen sooner or later. Their belief would be vindicated. Their FAITH would prove valid. Emotional orgasms abound.

    The gold dealers are raking it in. Hand over fist their reps are grabbing millions in paper dollars, selling what gold they have for $12,500 an ounce and rising by the minute. A few days later, when the banks reopen and withdrawals are allowed, the people rush in, taking everything out to go buy more gold. “The supply is very limited, we’re almost sold out!!” cry the gold dealers, yet they keep selling, now at $15,000 per ounce.

    There is a frenzy in the land—gold fever!! Get it while you still can. Everyone is into it by now. No one wants to be left out. Even poor folks with only a few dollars are banding together to buy one gold coin and own it jointly, hoping to sell it the next day for even more—-MUCH MORE!!!

    Three days have gone by. The EURO has collapsed. Europe is in turmoil. Police and military are everywhere. In the US multitudes have sold or traded all they had for any gold they could get their hands on.

    It is now one week later—7 am on a Monday. You get out of bed, wash up, have some breakfast and turn on your radio. The announce excitedly shouts, “Breaking news! This just in! Bloomberg news has just announced the discovery of massive secret and heretofore unknown gold hoards being held by certain governments and families. The supply of gold is 1 million times more than anyone in the public had previously believed! ” he shouts. “Bloomberg has uncovered a massive conspiracy to artificially manipulate the price of gold by making the public believe it was scarce on Earth, and the deception has gone on for a very long time!” he raves.

    He continues, “It is now known that trillions of dollars have flowed into the hands of the elite insiders during just the past week, as millions pushed and shoved in a mad dash to buy any gold they could get their hands on.”

    You sink down into your chair, your spoon drops from your hand, and you heave a big sigh. “Damn gold,” you whimper.
    —————————————————————————————–

    Remember, we’re just pretending, right?

  28. The ending of that little make-believe story was that when the true supply became known, the value immediately plummeted, wiping out everyone who’d sold all they had to own it.

    Moral of the story:

    Don’t get too possessive, greedy, or cock-sure about anything—-and NEVER base your actions on emotion alone.
    Currently the stock markets and the gold markets are based on emotions and illusions—–watch out!

  29. Keep it up Sir FartsAlot and they’ll toss your ranting butt in a Fema Detention Camp! That National Defense Authorization Act is not gonna put up with the likes of your honesty. Didn’t you see what they did to that poor feller Mel Gibson in Conspiracey Theory…. don’t get too close to the truth or they’ll be a comin for you bucko.

  30. Here’s a question for you:

    Say gold jumps to $2300 tomorrow and somehow you knew it would drop below $950 shortly thereafter and stay low for another year or more.

    Would you cash in and take profits? Your profits would be paid in fiat paper dollars or a paper check. Don’t most of you believe fiat is worthless? Don’t you believe it might totally collapse?

    If so, how could you feel safe cashing your metal (which you believe is so valuable) in for paper?

    If you took profits it would BELIE everything you claim you believe in, because then you would be holding the very paper fiat you so religiously believe is virtually or totally worthless and none of the metal you so religiously believe is your only hope of salvation from economic ruin.

    On Dec. 30, John (see above) said “I’d sell it all in a second when I feel the time is right.” Hmmmmmm…….
    Sell it for what John—-paper fiat????? But, I thought you gold bugs believed fiat was worthless. If so, then why would you be so anxious to get you little hands on it so fast?

    If John was then left holding large amounts of fiat which he received for his gold, then how is he protected against inflation (protection which he believed the gold provided to him)? If he believes fiat is just toilet paper, then how can he feel good holding so much of it. Doesn’t he believe with Bernanke cranking the presses that all his fiat is worth little more than the rolls of toilet paper pat and Zach needed when they saw gold hit $2300?

    If so, then why did he cash in? Will he use his fiat to buy hard assets like houses and fine art? If so, why didn’t he do that with his fiat years ago when it was worth much more, instead of buying shiny metal that you cannot wear, sit on, live in, or drive with?

    His fiat that he cashed in for gold is losing value by the day, isn’t it? Then why would he hold it? Maybe he should use it to buy more gold the next day for $3300?

    Do you all see who absurd this gold thing really is?

    1. Farty, My my the assumtions you make. It sounds like according to you anyone that holds gold is clearly a lunatic goldbug. Couldn’t be that they are holding it through this cycle because it’s the best investment to be in. You are actually looking like a lunatic posting here at a feverish pace. I stated gold is not my religion but is what I think will perform best. I follow the Kondratieff Cycle and gold performs best in the winter phase which hasn’t ended yet. I also don’t believe that fiat is worthless and is “going to zero”. For example I cashed in a small portion of my gold over the summer and bought an antique car at a distressed price. I had over 100% gains at the time. If I held fiat it would have been dead money. Stock market same thing. When stocks get cheap again I’ll buy back in going into the next cycle. I don’t have all the answers and neither do you. I won’t answer for anyone else but I don’t worship at a golden alter. Surely you can see the massive debt our government is in. Don’t you believe there needs to be some restraint? Doesn’t it bother you? Do you believe adding trillions in debt is sustainable? Are ponzi schemes sustainable? I’m not seeing austerity from the gov. so the story continues.

  31. @John
    We fully agree with you about gov. debt. The world financial system is based on a giant ponzi scheme. The $60-$100 trillion in the hidden derivatives market is at the base of it. Nefarious insiders have created money out of thin air and false debt. It is crushing the lives of the American people and driving millions into poverty.

    We do not believe in debt at all, at least on the higher levels. Governments should hold surpluses, not debt. The Federal Reserve and the Euro, as they are now organized, are both based on false concepts and are destined to fail.

    It is not the mere printing of fiat that will affect the price of gold. Everyone seems to believe that. The 2 are decoupled as we see it. Everyone seems to believe crises make gold prices rise. Well, Europe is in a huge crisis now and gold prices have dipped. So that theory is not valid.

    Various “cycles,” charts, traditions, and habitual occurrences that once held true and are expected by most persons to continue being valid, are currently breaking down—-this is a new world we are in. The old rules no longer apply. The institutions we thought were permanent will be breaking down.

    For example, 99.999% of everyone on Earth actually believes gold is scarce due to the propaganda they have been fed by the elite who sought to manipulate the price and print untold quantities of fiat money for their own purposes. The fact, which common sense research easily illustrates, is that gold is quite common on this planet and not scarce at all. Once that fact becomes known by the general public, one would assume it will affect prices.

    All the analysts (including here on Weiss) hyped gold and silver miners last year to no end. They were SURE the mining stocks would skyrocket because of all the indicators—–instead THEY TANKED, big time. Suddenly the analysts were silent and you heard nothing about mining stocks for a good while.

    John, we bear no ill will against you or anyone here blogging. In fact, we try purposely to add humor, to break the tension of living in such a financially insane world and lighten the seriousness that can take hold.

    We see no harm in holding gold or silver as long as you realize that the value of both has been and IS being manipulated by the insiders, and that, at the drop of a pin, they can cause the values to drop precipitously–thereby causing many to rush in and buy—let it rise nicely, to make you think you are gaining easy money (while they collect all the cash from fake ETFs that claim to hold physical gold but actually have no where near what they claim)–then let the bottom fall out to wipe you out, as they run away with the loot laughing.

    In this world, few things are as they seem. Gold and silver markets and the stock markets are currently totally manipulated to milk the small investor and take his money. There was a reason why the US gov. confiscated the gold held by Americans in the 1930’s—-that reason will be divulged later when the time is right. When you find out you will likely consider it incredulous. At the very least, you will be shocked.

  32. Hey farty,
    What in tarnation are you smokin’ buddy boy? Bubba thinks you done bumped ya head. Seems like your losing your dagnab marbles! Lay off the shine dillweed.

    Ya babbling like a lunatic under a full moon dressed in your birthday suit. I betcha you got a hay fever or something the way you getcha self twisted up backwards ass silly. Take ya meds and straighten out like a rattler under the Arizona sun!

  33. Farty is just cranky because he has no solutions other than to mock everyone else who is making money in bullion markets. That, and he loves conspiracy babble that I’d guess is common knowledge around here.

    He uses bread as if it were a commodity. I’m pretty sure bread would have gone moldy by now had we all stored that 20 years ago. Like you mentioned, fine art or other possessions would work for storing wealth too but you are completely wrong about the amount of physical gold mined on Earth. If you were right, the age of the internet would have exposed it by now. The fact is, even 5500 years ago Egyptians used gold and silver as money, just like Rome, just like Greece, and just as America did 110 years ago BECAUSE it was rare. If it wasn’t scarce, then every form of gold money going back thousands of years is a lie. Case in point, the US Mint had to stop production of Eagles in 2010 and 2011 due to lack of supply. We all know the IMF and central banks are hording gold so that’s nothing new. It hedges their investments against the monetizing debt diseases of each sovereign currency. But at the end of the day, those of us holding bullion for the “what if” will still do better than those holding greenbacks. Do you honestly think Americans will turn in their gold to a government that 90% of us distrust? Your “logical” arguments are completely based on opinions where you’ve provided no scientific data to validate your points. Personally, I could care less because I will have gotten out of precious metals before the future bubble pops and I’ll be cashing it in for land.

  34. At least you’ll all have the things I’ve related to you in the back of your minds when the changes begin and the info breaks. That’s good.

    If you folks think I am a conspiracy theorist (i.e. doc above) then I suggest you read the excellent article posted here by Dr. Weiss, in which his late father relates his personal experiences before, during, and after the Great Depression. If I had been telling you those things BEFORE they all transpired, you would surely have labeled me an alarmist or a conspiracy theorist for sure! Read it and learn a few things.

  35. Stay tuned for:

    1. The real reason the Gov confiscated the gold in the 1930’s

    2. The real reason that big banks closed (with people’s money still in them) and NEVER reopened in the ’30s

    3. The real reason why the U.S. Gov allowed China (a supposed deadly enemy of the US) to have $200 Billion
    a year in trade, allowing it to build up its military and nuclear stocks and enrich its infrastructure—the exact
    opposite of what you would expect to do to an “enemy,” while the American people received poisonous toys,
    products full of lead, deadly plastic, drywall that corrodes wiring and pipes, and pills full of cement.

    4. The true story of where all the big gold stocks from throughout history really went, and how the news will
    shock the markets when it is divulged—-and the value of the gold in your pants.

    Stay tuned on Larry’s blog here, as the shocking answers will be divulged by yours truly before May 1, 2012.

  36. Doc shows total trust in the Gov in his comment above, when he wrote:

    “Case in point, the US Mint had to stop production of Eagles in 2010 and 2011 due to lack of supply.”

    He actually believes the Gov when it says it ran out of gold to stamp more coins.

    Yet, he derides me in that same blog comment saying:

    ” Do you honestly think Americans will turn in their gold to a government that 90% of us distrust? Your “logical” arguments are completely based on opinions where you’ve provided no scientific data to validate your points.”

    Now I’d call that inconsistency. My arguments are based on FACTS:
    1. The Gov did indeed confiscate gold in the 1930’s
    2. Thereafter no one (till more recently) could use it to legally trade, buy, or sell–it would have been a criminal act
    3. The “rules” of the game did break down during the Great Depression as I remember it (and confirmed by Dr. Weiss’s late father in his excellent article posted 2 days ago on the Weiss website).
    4. None of you know the reason why the US Gov let $200B flow to China per year (a Communist enemy supposedly bent on our destruction) which allowed it to build a greater nuclear arsenal, army, and now navy to challenge us in the South China Sea!
    5. It is a FACT that inflation has proceeded since 1960 to a point where prices have risen far more than gold value (and if you go back to 1920 or 1930 the difference is even more stark).
    6. It is a FACT that many big banks closed, had peoples’ money in them, and never reopened. Where did the money go? A friend of mine’s late husband had $10,000 in the bank in 1928 from money he earned making fine furniture. That was big money in those days. She related to me that, “The Gov closed the bank. When it reopened we were told we had no money in it!” They got wiped out and had to start over. Think it can’t happen again? You better think twice.
    7. FACT—gold could plunge precipitously at any time. I am not hoping that it does, but I am honest enough to admit that it can.
    8. The Gov has been proven to have lied time and again and many people used to believe the lies

    So, Doc, chill out, have a Thai beer with Larry and ——
    YOU HAVE ABSOLUTELY NO PROOF THAT GOLD IS SCARCE. It’s just what you’ve been told and led to believe, and so you believe it and parrot it back. If you believe gold is scarce you must never have visited any of the hundreds of palaces and cathedrals of Europe, sat at the tables of the wealthy (the spoons and forks are gold and the dishes are gold trimmed), or peeked inside Fort Knox when Americans were still allowed to do so.

    GOLD IS NOT SCARCE AT ALL ON PLANET EARTH. THAT IS A HUGE LIE. If you believe that then you would believe BP Oil cares more for our health and the environment than for money.

  37. Miss Pat above derides me for using the spot price instead of the “going rate” paid for physical in my inflation percentage comparisons given above. Her physical price depends upon the area, the city, the dealer, Ebay, and a thousand other variables. The spot price is at least something you can get a handle on.

    Two persons walk into a gold dealer shop with a gold chain—one in San Francisco, the other in Montpelier. Do you actually think both will get the same amount for their identical gold chains? You can’t use those prices for comparisons because you can’t get a handle on them. We do KNOW average prices for commodities across the years because stats were kept. And, we know the spot price at any given time, as records are absolute. That’s how you make comparisons. Nothing is exact, but it’s a fairly good gauge of inflation spirals compared to gold.

    And, Pat, that is “shiny”, not “shinny.” Oh, or was that a slip of the tongue? Anyway, you needn’t brag to everyone that you bought a new gold ring for your Prince Albert. Oh, I forgot, you are a lady.

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