What in the world is George Soros up to now? At the 2010 World Economic Forum in Davos, Switzerland Soros recently made the following statement: "When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold." So is Soros trying to scare people away from gold? The truth is that the price of gold did rise about 40 percent last year. In the current economic environment, there has been a flight to safety as nervous investors have flocked to precious metals such as gold, silver and platinum. But are these bad investments that are overvalued right now? Not at all. The truth is that gold and silver are just about the only things that have held their value over the past 100 years. An ounce of gold could buy you a really nice suit 100 years ago and an ounce of gold can buy you a really nice suit today. But now that it is starting to come out that there could be massive reserves of gold and oil in Haiti, we should expect the ongoing manipulation of the precious metal markets only to intensify. The truth is that the big dogs like Soros want everyone else to get out of gold and silver so that they can swoop in and get more for themselves.
If you are looking for a bubble, you don't have to look any farther than the U.S. stock market. Remember all of that "bailout" money and "stimulus" money that the U.S. government injected into the economy? Well, it didn't help you much, did it? Nope. So where did it go? It went to pumping up Wall Street. In a recent article, Bob Chapman did a great job of explaining what is happening....
Liquidity is not flowing into the economy it is pouring into Wall Street to aid and abet more speculation, which has sent the Dow from 6600 to 10,700.
That is why some analysts are calling this a "jobless" recovery. They think that because the stock market has gone up we are having a recovery. But it is a lie. The reality is that the stock market is experiencing a "sucker's rally" and all the insiders are busy selling their holdings off into that rally as Chapman explains further down in his article....
It should be noted that insiders are selling into the never-ending rally, and mutual funds have very little money flow coming into the funds. That, of course, is our government at work manipulating the market. Just last week insiders bought $18 million worth of shares and sold $419 million.
But let's not just blame Wall Street.
They are not the only ones responsible for the mess that we are in.
The truth is that we have all made bad choices. We have all bought stuff made in China for years and years just because it was a few cents cheaper. We knew that it would put some of our neighbors out of work eventually but we didn't care as long as we could save a buck or two.
All we cared about was the lowest price. In fact, for decades the U.S. government made obscenely lopsided trade deals with foreign nations (that were very much not in our favor) just so that we could get cheaper goods for the American consumer. We were told that anything that was good for the "consumer" was good for the economy. "Free trade" (or in other words, other countries getting to send us all the cheap stuff they wanted to) was going to be the solution to all of our problems.
But it wasn't.
Instead, we found out that there was a very high cost to those low prices.
In his excellent article entitled "The Wal-Mart Model of Self-Destruction: Lowest Prices, Always", Charles Hugh Smith captured the high cost of our obsession with low prices beautifully....
The propaganda of marketing has so hollowed out American culture that most citizens cannot recall a time that "Consumerism" wasn't the unofficial religion of American society. And what is the First Commandment of "consumerist religion"? The lowest price is all that matters.
Quality doesn't matter; we're going to move/throw it away anyway.
Who made it doesn't matter. The idea that you might pay more to keep your neighbor employed is akin to worshipping the Devil: all that matters is the lowest price.
The sad thing is that many of you who are reading this article will keep running out to bloated globalist retailers like Wal-Mart just to save a few pennies. It doesn't matter that their stores are filled with cheap garbage made in virtual sweat shops all over the globe and that Wal-Mart has probably decimated a large percentage of the local businesses in your area since they moved in. But on the bright side, they do pay slightly over minimum wage and they do provide part-time employment for many of the people in your area. Perhaps you can get a job with them when your job gets shipped overseas too.
The truth is that we all need to quit being "consumers" and we all need to start participating in our communities once again. Instead of supporting a big global chain that takes all of the profits out of your local community, why don't you go visit the struggling small business down the street instead? Instead of pumping your cash into the giant shell game known as the stock market, why don't you help a family member start a business or put it into something real like gold and silver instead?
We are all supporting the current globalist system by putting money into their banks, by investing in their stocks and by endlessly shopping in their stores.
Imagine what would happen if we all suddenly decided to stop.
Your right Soros is a big dog , he wants everyones gold because he knows thats where the money is going to be made , world stockmarkets are entering the dark age, the days of making easy money are over for Soros and his little band of cronies.
The biggest expansion of credit is now over , gold and silver will be coming out to play……the real money!
Explain why gold is so valuable today as opposed to yesterday. You can’t. Gold has almost zero utility industrially. Really, the story of gold is that of the tulip bulb. Soros is exactly right. As he often is, btw.
Mika, there is a huge demand for industrial gold and silver today. There was a huge demand in the past because of the proven medicinal aspects of both, as well as the known ease to which they can be used and manipulated in jewlery and ornaments. There are other theories which I will not go into. Do yourself a favor and do some research.
As far as Soros is concerned, I would not trust him as far as I could throw him.He is part of the elite cabal who has sold out his soul for wealth and position. If he is saying something, rest assured it is for a reason, and that reason is not always good. Yea, I am aware of his run on the British Pound years back.
Kevin, the demand for gold and silver will crash along with all other commodities when this economy inevitably crashes. There is no safe heaven, don’t delude yourself. Real Estates crashed, oil crashed, stock market crashed, gold is next.
Kevin ,
Ive posted a link, to give you an idea what happens when an economy crashes and what people are prepared to do, just to eat.
If you believe gold will crash then people who believe in the U.S dollar are even more delusional.
Worth a look
http://www.guardian.co.uk/world/video/2009/feb/11/zimbabwe-gold-panning-starvation-food
Peter,Phil,
Agree with your positions except the premise that gold will crash. Barring unforseen food disasters, there will always be those with wealth that would prefer gold/silver than fiat money-even governments. Which in my opinion could result in another 1930′s style US confiscation of all gold payable in fiat currency at a rediculously low benchmark set by the thieves that run your friendly government.
Got Rope?
In the Bible it said, A piece of bread would buy a bag of gold. It left me scratching my head, but I think it was what I was thinking.
If you go to prison for a very long time, or they hang you for treason for dealing in Gold,
Maybe then, “A piece of bread would buy a bag of gold”
Hope I’m wrong
RR
You have definitely choosen the wrong headline dude … for an otherwise excellent article.
When Gold is Money- The Complete Set of Arguments for a Gold Standard
The only system compatible with the fullest preservation of the rights of property. It is the only system that assures the end of inflation and, with it, of the business cycle- a 100% gold standard.
2. Money, moreover, is the economic area most encrusted and entangled with centuries of government meddling. Many economists usually devoted to the free market stop short at money. Money, they insist, is different; it must be supplied by government and regulated by government.
3. They never think of state control of money as interference in the free market; a free market in money is unthinkable to them. Governments must mint coins, issue paper, define “legal tender,” create central banks, pump money in and out, “stabilize the price level,” etc.
4. Historically, money was one of the first things controlled by government, and the free market “revolution” of the eighteenth and nineteenth centuries made very little dent in the monetary sphere.
5. Just as in nature there is a great variety of skills and resources, so there is a variety in the marketability of goods. Some goods are more widely demanded than others, some are more divisible into smaller units without loss of value, some more durable over long periods of time, some more transportable over large distances. All of these advantages make for greater marketability. It is clear that in every society, the most marketable goods will be gradually selected as the media for exchange. As they are more and more selected as media, the demand for them increases because of this use, and so they become even more marketable. The result is a reinforcing spiral: more marketability causes wider use as a medium which causes more marketability, etc. Eventually, one or two commodities are used as general media—in almost all exchanges—and these are called money.
6. Historically, many different goods have been used as media: tobacco in colonial Virginia, sugar in the West Indies, salt in Abyssinia, cattle in ancient Greece, nails in Scotland, copper in ancient Egypt, and grain, beads, tea and fishhooks. Through the centuries, two commodities, gold and silver, have emerged as money in the free competition of the market, and have displaced the other commodities. Both are uniquely marketable, are in great demand as ornaments, and excel in the other necessary qualities.
7. The process of cumulative development of a medium of exchange on the free market is the only way money can become established. Money cannot originate in any other way, neither by everyone suddenly deciding to create money out of useless material, nor by government calling bits of paper “money.”
8. Money is a commodity. Money is not an abstract unit of account, divorceable from a concrete good; it is not a useless token only good for exchanging; it is not a “claim on society”; it is not a guarantee of a fixed price level. It is simply a commodity. It differs from other commodities in being demanded mainly as a medium of exchange. But aside from this, it is a commodity—and, like all commodities, it has an existing stock, it faces demands by people to buy and hold it, etc. Like all commodities, its “price”—in terms of other goods—is determined by the interaction of its total supply, or stock, and the total demand by people to buy and hold it. People “buy” money by selling their goods and services for it, just as they “sell” money when they buy goods and services.
Source: Gold is Money
I would NOT invest in GOLD!
Here’s Why…
Because FDR raided safety deposit boxes and took away everyone’s gold in 1933, and Obama will do the very same thing.
After all, Obama has quoted many times about how much respect he has for Roosevelt!
Sure as the sun shall rise (until prophecy is fulfilled on that) Obama WILL take people’s GOLD!
He will also raid jewelry and other items in those bank vaults!
Take a look at what happened in Iceland:
http://europeanpermanentportfolio.blogspot.com/2009/08/permanent-portfolio-in-iceland.html
In Argentina, people could sell gold to get hold of euros after their currency became worthless.
There is a place for gold in your investment portfolio. Keep some in your ppossession and some offshore. For example, The Perth Mint..and even the gold in GLD is stored in England.
Soros is right , and he is not even mentioning all the hundreds of tons of tungsten gold plated big bank marked bars out there that will plunge the reability of gold in the mud in nanoseconds .
Do your homework and wake up for the skeptics
Gold is just a stopgap anyway. If there is complete worldwide collapse, water will become perhaps infinitely more valuable than gold.
Find a water source.
You folks that actually believe gold is going to crash have no idea what real money is, and yet we wonder why we’re in this financial mess. Idiots!
Gold is “money” only when there is uncontrolled inflation, that is why the FED is always vigilant when it comes to inflation. The FED is evil, personal income tax is evil and both will be 100 years old very soon. The FED will squeeze the life out of inflation and the life out of gold. They don’t want the junk; it is only an element like rust. The working class will be starved fist before the FED will lose one fiat cent. You better have enough gold to last you if you don’t have a job for there will be no other alternative.
How long are you going to moderate the truth?
Please be aware that,while Soros was slamming gold as a bubble, he was buying $750 Million work of gold for his personal account.
Gold and silver are REAL money, not the paper dollar. The dollar used to represent an amount of real gold in a reserve. Since we left the gold standard, the dollar only represents trust in the U.S. government, and that trust is waning quickly.
Someday soon, very soon I fear, the trust in the dollar will collapse to virtually zero, but gold and silver will always have a place in the economy.