Jim Rickards - Investors Fleeing GLD into Physical Gold

[Large Sarge]

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/2_Jim_Rickards_-_Investors_Fleeing_GLD_into_Physical_Gold.html

[Serpo]

But what about GLDs video of all the gold in that vault that they said was theirs apart from that one bar with the funny serial number.

[StreetsOfGold]

That's why they had the video to try and ward off the exit. It's not working

[beefsteak]

Streets,

Good point. That's my read on it as well.


Large Sarge,

Enjoyed Rickard's points especially about one of the options open to the FR. That being, to deliberately peg the POG say at $5,000 in an open market operation. Then, from that point forward the Fed will always be the bidder at $4,995 and seller at [edited] $5,050 t/o. Something about deliberate hyperinflating by such a move, clearing out the indebtedness of our GDP woes and finishing the tanking of the USD, as well. That was a good listen, and thanks for the Link! Sinclair says whatever the Fed does with the revised Gold Certificate Ratio, will be fait accompli by 2016.

Arrrrrrgh...4+ years of this death by a thousand political cuts.


beefsteak

[Large Sarge]

Streets,

Good point. That's my read on it as well.


Large Sarge,

Enjoyed Rickard's points especially about one of the options open to the FR. That being, to deliberately peg the POG say at $5,000 in an open market operation. Then, from that point forward the Fed will always be the bidder at $4,995 and seller at $5,000 pto. Something about deliberate hyperinflating by such a move, clearing out the indebtedness of our GDP woes and finishing the tanking of the USD, as well. That was a good listen, and thanks for the Link! Sinclair says whatever the Fed does with the revised Gold Certificate Ratio, will be fait accompli by 2016.

Arrrrrrgh...4+ years of this death by a thousand political cuts.


beefsteak

I think his timeline is off a little, 2016 seems pretty far off...

sinclair and turk both say 2014 or so

but yes they could do a quick devaluation, Richard Maybury said he thought that's what they would do, its the only way to make it work

if you do a bunch of smaller devaluations, you invite capital flight....investors get spooked...

[beefsteak]

Sarge,

Your points are well taken. However, it's not "investors who will be spooked" and fly with their capital, imo. It's the TRADERS who will be spooked. And the HFT trader's need to be spooked and then get skewered and rotiss'd! The investors are an entire class of brainwashed "gotta to be in it to win it" mentality, who, when even wrong in the market, will then shift to dollar cost averaging. The toughest thing in the world, next to putting a square peg into a round hole, is SELLING when an investment goes against you, and cutting your losses, yes?

PS...I made a typo which I've gone back and corrected. Rickards said the open market ops after deliberating pegging gold in his example to $5K is FR buy at $4995, and sell at $5050. I left out the second "5" originally...sorry.

beefsteak

[Uncle Salty]

Streets,

Good point. That's my read on it as well.


Large Sarge,

Enjoyed Rickard's points especially about one of the options open to the FR. That being, to deliberately peg the POG say at $5,000 in an open market operation. Then, from that point forward the Fed will always be the bidder at $4,995 and seller at [edited] $5,050 t/o. Something about deliberate hyperinflating by such a move, clearing out the indebtedness of our GDP woes and finishing the tanking of the USD, as well. That was a good listen, and thanks for the Link! Sinclair says whatever the Fed does with the revised Gold Certificate Ratio, will be fait accompli by 2016.

Arrrrrrgh...4+ years of this death by a thousand political cuts.


beefsteak

No way can they defend the price of Gold at $5,000. Trying to fix a price for gold never works. That is the beauty of Freegold...no fixed price...so who cares how much they print.