Post From Philosophy of Metrics
Reader Thoughts On “Precious Metals Panic Selling? Or Something Else?
Dane Perfect timing JC. I’ve been thinking about this US debt being banked at the IMF.
Since we aren’t in a gold standard anymore could this US debt be used as a sort of current day gold deposit? A sort of USD standard? The USD does have similar confidence behind it and this could serve as an anchor while at the same time curb sales of it.
Dane “The IMF’s legal framework for gold”
“Role of gold. The Second Amendment to the Articles of Agreement in April 1978 fundamentally changed the role of gold in the international monetary system by eliminating its use as the common denominator of the post-World War II exchange rate system and as the basis of the value of the Special Drawing Right (SDR).”
mario Andretti very compelling. I wonder if Jim Rickards is a subscriber to POM. He may have a New Case for the RMB.
Alan Perhaps Jim Rickards should consider a subscription, lol. I am being a little harsh, when we are only 2.5 years into his public prediction on gold:
Interview With James Rickards: Gold Set for Massive Rally
February 7, 2014
Fundamentally my target price for gold is in the range of $7,000 to $9,000 per ounce. That’s not something that will happen straight away, but it’s not a 10-year forecast either. It’s a three- to five-year forecast, for the price to rise by about five to six times.
But, it was only a year earlier he made the same call: Don’t Be a Casualty of War
Aug 10, 2013
Jim Rickards lit up the Agora Financial Investment Symposium in Vancouver telling the crowd the price of gold will soar north of $7,000 per ounce in an inevitable global currency reset, the fourth reset since the founding of the Federal Reserve.
Sorry mario, I’m being a little facetious . Over the many years of listening to this style of rhetoric I’ve become extremely wary of the Agora Network and anyone that associates with it – libertarians and gold bugs alike – it’s a very deep rabbit hole.
Kans It is one way or the other.
Current fiat ‘games’ are not sane and I would say will end ( and I don’t care what the name is, it is always more of the same but still without cloths)
But who knows where and when it will end?
In the end it is about trust or even down to how people act ( since most have no clue about how the system works we can’t speak of trust, it is more ‘continue doing what every body does’, even if it means going over the cliff).
And if the fiat ‘game’ can continue, and continue means it will have to grow, I would say it’s logic PM will ‘suffer’.
And than we have to think of what is happening that is not openly talked about. IF China’s goal is to accumilate as much as Au as possible we must assume they will not be open about it and we can’t know how much they have right now and how much they can pull out of the markets from here on (just to mention one aspect).
Another big animal in the room would be what Amerika actualy has.
I know the number that they suppose to have, but what if that is simply not there or being there but sold, multiple, times…
Since the Au market is not transparent at all, I suspect at least the same suprises as with all those respectfull banking institutions that in the end will simply come out and reveal what the realy are, a scam.
The banks/fiat will simply die, at great costs for the everage people. Gold can’t simply die.
I suspect or hope ( don’t know the exact order of these two) that PM will have to move in the opposite direction of the dying fiat, but for that to happen the fiat will have to be dying…
And that won’t be let to happen without a hell of a fight.
In fact I think we should be just as afraid of that ‘hell of a fight’ that will be put in place as the effects that the dying of fiat will have on the biggest part of humans.
Most don’t own a lot of PM or just some used for decoration (still better than none). Compared to China and even more India the other nations don’t own much (in private hands that is and not counting the 0.01% wealthy).
This last fact makes me wonder some thoughts I read.
Some think the fiat dying and PM revival will make some ‘PM bugs’ wealthy and bring back the power to the people etc.
But when we think of the current holding distribution of PM I strongly suspect the situation will turn out to be worse than we are at right now..
If my thoughts, that both scenarios will ocur at the same time or directly after each other, are correct it will make it even more dire.
One of the paths I see that could mean a change for the best would be people to start working together and kill the beasts, (fiat)banks ( based on making a profit) , big governments, multi nationals, sociopaths and psycopaths, etc..
The odds I give such a movement are slim at most…..Take care.
rudd Me and my regiment of talented can opener dudes are on stand-by.We can do this!
mr-synge “It’s all about return on investment. ” No, it’s all about confidence in the system.
JC Collins Yeah, confidence on returns.
nancy farrar then what is a saver to do??