Thank you to all the closet Paper Money lovers who have linked to my site over the past couple of weeks, I hope you have enjoyed reading the truth about the precious metals cartel and the hypocrisy they dish up to the unsuspecting public on a daily basis.
In a previous post I wrote about the bear market in the USD. The purchasing power of the US Dollar has fallen dramatically over the past 100 years, but this bear market will end. It is only a matter of time. When the Dollar starts rising strongly this will likely trigger the end of the precious metals bubble as gold's purchasing power starts to decline.
Many of the precious metals cartel claim that gold is not in a bubble, but we only have to look at an inflation adjusted chart to workout that it is.
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| Inflation adjusted gold price shows bubble in metal as extreme as 1980 peak |
The next time you see a claim from the precious metals cartel that gold is not in a bubble, ask them one simple question...
"Was gold in a bubble at the peak in 1980?"
Once they answer in the affirmative you can show them the above chart to prove that gold is in fact, once again, in a bubble when you've adjusted the 1980 peak for inflation.
They will probably try and find a way to discredit the above chart, claiming that the inflation figures are wrong or coming up with wild claims that differing factors driving the gold market today means that it will go higher. Others still will try and claim that gold will be remonetised, but this is nothing more than speculation and it's unlikely central banks will once again relinquish control of the money supply to a useless barbarous relic.
One must concede to the facts. Gold is as overvalued today as it was at the 1980 peak. From these high levels we are likely to see gold fall to 1/3 of it's current price, maybe even less. The cost to mine the metal is probably a good place to start, which is currently around $700-800 as per the chart in this previous post, but it could fall much further.
Some Australian iron ore miners recently found out the hard way that commodities can fall further than any imagined "price floor" and with 170,000 tonnes of gold mined to date and above ground as ready supply their is no guarantee the cost to mine will provide a price floor. Indeed such an abundant supply of gold is likely to lead to people to cart wheelbarrows of gold to their local dealers in order to exchange it for Paper Money.
Accept no substitutes to real, Government backed, publicly trusted, Paper Money... avoid the gold bubble and backup your truck to load up on crisp, freshly printed notes.
- Paper Money Shield
P.S. If you didn't already notice I put up a page last week displaying some pictures of various paper notes which may interest you...
Damn you really are clueless, aren't you? Glad I'm not your offspring.
ReplyDeleteKind sir, would you mind answering the question? Was gold in a bubble at the peak in 1980? If so why is it not so now?
DeleteYou sir have the Stockholm Syndrome. You're getting raped by your government but you love it.
ReplyDeleteNo need for such insults.
DeleteThe government supplies me with many services I require in return for my hard earned paper money. I enjoy being rewarded with the fruits of my tax dollars.
None are so clueless as those who gratuitously call others clueless.
ReplyDeleteLove the blog. But is there any chance you can include a date and not just a time on the blog posts and comments?
Thank you for the suggestion DH, the posts on this blog will likely be infrequent hence ensuring there is no date will leave them as timeless pieces which can be as relevant today as they are tomorrow and 3 months from now.
DeleteBy the way I note your link back to FOFOA... I have my own thoughts on a freepaper system where the shackles are released from paper allowing it to trade freely and without disruption from the precious metals cartel who seek to maintain control of paper currencies. I must write it up one day!
good grief, amazed that you have a single comment on this ridiculous bilge. The fact that Bron Suchecki of the Perth Mint and goldbug-bashing fame likes this site says it all!!! hahahaha and if you find this insulting then stop 'insulting' people who are trying to halt the kakistocracy by revealing their games. Anyone who think/calls Bill Murphy a fraduster no doubt also think Andrew Maguire is a walter-mitty character....snore snore snore grow up. And no Gold was NOT in a bubble in 1980 fwiw, it was signalling the need for a rapid rise in interest rates which is what followed. if you think that will happen this time I suggest a backstreet lobotomy.
ReplyDeleteThank you anonymous for stopping by. I am not easily insulted, so no need to hold back.
DeleteDo you deny the fact that Murphy was charged with market manipulation? Do you not find it the least bit ironic & hypocritical that he now howls of the same in the precious metals market?
Andrew Maguire is a nobody. Details of his background are thin on the ground.
So the drop from $850 to $250 in Gold was not a popping bubble?
Oh you do make me laugh anonymous.
This site gave me a good hearted laugh. I was trying to determine if it was a website with comedic intentions.
ReplyDeleteBut then I realised you were trying to be serious..
Only gold and silver are money.
Massive money printing by central banks will spark inflation... And then hyperinflation
Protect your wealth through metals.
The difference between 1980 and 2013?
ReplyDeleteThe US GOV is indebted by over 16 TRILLION Dollars!
The US GOV has unfunded obligations of over 80 TRILLION!
The US actually produced things back in the 1980's.
In the 1980's the FED (headed by Paul Volcker) raised prime interest rates to 21.5% which effectively killed the last Gold Bull. Cash was made king under this economic environment.
Today; 2% rise in interest rates will render the US GOV debt mathematically impossible to ever repay the interest, let alone principle. Default, in every sense of the word. Where will they find 80 Trillion to fund obligations if they cannot even repay the interest on their accrued debts of 16 Trillion at virtually negative interest?
How in the world could they repay interest of 10% of 16 Trillion? I would love to hear some mathematically sound theories as to how this could be accomplished!
Do you believe in magic, sir?
ZIRP/NIRP Forever!
First, There Will Be Deflation.
The public MUST beg the bankers to "save us". Then, the banksters will print like hell!
Deflation (and a dollar rally) must occur first.
Anyone who wants to see how this will all pan out need only look east. Specifically to Japan. This whole charade can go on for at least another 20 years.
Gold is holding up quite well in JPY, by the way. Still well and truly in a bull market. Wanna bet that Japan is leading the way? Has been for 25 years. Has anything changed?
Riddle me this. If there is so much gold kicking around (170,000 metric tonnes as stated), why is Germany holding a Federal Reserve IOU delivery of a few hundred paltry tonnes until 2020?
Thanks for your thoughts anonymous. The US has control of their own money supply. If they need more they can simply print whatever is required to fund it. A dollar will always be a dollar, so whether they need an extra $100, $1 million or $80 trillion then they can just print what's required.
DeleteRe the Gold. The Germans set that speed of delivery, not the Fed. Look back to October 2012 when they wanted to bring 50 tonnes back a year for testing... just usual Gold bug conspiracies that the Gold is not there.
Finally... someone that gets it. Great work Paper Money Shield!
ReplyDelete