Skip to comments.Think Gold Price Is Not Manipulated? Think Again!
Posted on 08/12/2011 7:20:45 PM PDT by blam
Think Gold Price Is Not Manipulated? Think Again!
Commodities / Gold and Silver 2011
Aug 12, 2011 - 07:27 AM
By: George Maniere
On Wednesday August 17th the CME came out with an announcement that they would be raising margin rates on the purchase of future contracts on gold. They reported that this was an effort on their part to cool off the price of gold which has enjoyed a parabolic run since August 1st. They said that there would be more rate hikes to protect gold from becoming a bubble. When I read this I laughed at the arrogance of the CME. There is only one reason that that they want to stop gold's parabolic run. They simply do not have enough gold to fulfill the future contracts that they have already sold. Let's not forget that one future contract is sold in lots of 5,000 ounces.
That means if we use a proxy price if $2,000 an ounce, to make the math simple, we are talking about $10 million for one contract. Add to that, the CME gets a fee of $50.00 an ounce above the spot price, so for every contract sold they earn $250,000.00. Delivery and shipping are the buyers concern. This would lead me to conclude that the only possible reason to slow down gold's parabolic run would be that they simply do not have the gold to satisfy the contracts sold.
Let us also not forget that last April the CME raised the margin rate on silver not once but five times to get silver to finally capitulate. The fact is that the CME does not have the physical gold to satisfy the future contracts that have already been sold. Do you really think this will play out differently than it did with silver last April? Some may call it a bubble but I do not agree. Call it whatever you want. The fact remains that there is simply not enough gold to satisfy the thirst for the prospective buyers.
George Soros, the hedge fund investor who called gold the ultimate bubble, has divested his portfolio of nearly its entire investment in the gold, inciting many to fear that the price will very soon plummet, devaluing the specie-heavy portfolios of millions of investors.
Agree with him or not, like it or not, like him or not, attention must be paid to his movements. It can be very expensive to ignore the predictions of Soros. For example, on September 16, 1992 (a date subsequently known as "Black Wednesday"), one of the investment funds of Soros sold short more than $10 billion worth of pounds sterling, profiting from the British government's reluctance to adjust its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries. Defiantly, the UK withdrew from the European Exchange Rate Mechanism, triggering an unsettling devaluation of the pound. Not everyone was harmed by this plummet, however. George Soros earned over $1 billion in the ordeal. Consequently, he was described by the media as the man who broke the Bank of England. In 1997, the UK Treasury estimated the cost of Black Wednesday at 3.4 billion pounds. This latest move to take a position against gold may have similar repercussions around the globe.
Soros, the Hungarian-born financier made the move to cut his holdings of gold only in the first quarter of 2011. As with most things this King Midas touches, the price per ounce of gold had skyrocketed during the period of his investment in it. While at the beginning of last year gold was trading at $1,100 an ounce, the trading price in 2011 has risen to as much $1,800.
The exact date of the dramatic divestment by Soros is unknown. It is known that the majority of those holdings are managed through the Soros Fund Management Company. Filings to the Securities and Exchange Commission (SEC), the American regulator showed that he had sold 99% of his holding in the SPDR Gold Trust (GLD), an exchange-traded fund (ETF) backed by gold bullion, by the end of March. The New York-based fund sold its entire holding in GLD but Mr. Soros bought shares in two mining companies, Freeport-McMoRan Copper & Gold and Goldcorp.
Despite the potential for a devastating global impact of such a move by one so influential, there are those on Wall Street praising the insight of Soros. Historically, it is typical that as the precious metals rally ends, you will get transition toward related equities. Indeed, the gold mining stocks have lagged the underlying asset as people would rather hold gold and silver above the ground rather than these metals still in the ground.
As I write today it looks like Mr. Soros did not get this one right and there are those not entirely convinced of the wisdom of Mr. Soros.
Filings to the SEC showed that Paulson & Co, the US hedge fund run by John Paulson, left its holding in the SPDR Gold Trust (GLD) unchanged. It was reported in Bloomberg online that Hal Lehr, a commodity trader at Deutsche Bank, said he remains bullish on gold despite its current levels and believed it could reach $2,000 an ounce by year's end. The report went on to say that gold ETF holdings fell by 3.3 percent in the first quarter of 2011 and there are reliable indications that some of that investment was used to purchase physical gold bullion.
As if there is not enough uncertainty, a worldwide devaluation of gold could create a ripple of financial insecurity. There can be no doubt that gold is viewed by a majority of the world as a very safe and trustworthy investment, one that only increases in value. This sort of reasoned speculation has undoubtedly fueled the bullish ballooning of the price per ounce of the metal.
If the actions of Mr. Soros and other global power brokers have the effect of devaluing gold, then the legitimacy and appeal of the call of many to return to a gold standard for the value of paper currency or to abolish the Federal Reserve and other similar central banks around the world will be similarly devalued.
Once the worth of both gold and paper currency is wiped out by the conspiring plotting of financiers, globalists, multinational corporations, central bank boards, and other likeminded and equally influential monied interests, there will be nowhere to turn for an object of value. This complete obliteration of precious metals and paper currencies will leave those who create such catastrophes as the sole site of economic refuge for those cast headlong into the storm of boom and bust cycles and the devastation that comes in their wake.
One of the most toxic elements present in this pool of bitter water is a worthless money supply. The Federal Reserve creates this non-potable problem by engaging in a practice known euphemistically as quantitative easing. It is a policy that plain-speaking men would call printing worthless money.
There is no governor on the engine of the Federal Reserve's printing press and the speed with which it can crank out reams of worthless paper money is dizzying. However, unlike paper money, gold cannot be manufactured and it is of finite quantity. While this bodes well for the eventual rebound of the price of gold (assuming that it soon begins to descend), there can be little expectation that those who benefit most from a world marketplace dependent on dollars and pounds will allow gold to supplant these currencies as the coin of the realm. From their point of view, access to that resource must be restricted and dependence on printed money must be perpetuated.
The current debt crisis in Europe is an example of how the price of gold can benefit from currency's shortfall. The millions upon millions of dollars owed by Greece, Ireland, Portugal, and others in the eurozone devalues paper currency while artificially (perhaps) propelling the price of gold into the stratosphere.
That said, there is a good chance that any effort to sell off holdings in the precious metal by George Soros and others may convince others to dump their own investments in gold rather than run the risk of being found on the outside of the trade looking in.
In fact I'm sure this is exactly what that cagey cat George Soros is betting on.
I will remain long GLD, SGOL, PHYS, SLV, PSLV and AGQ.
By George Maniere
I remember about 15 years ago countries were very open about having to space the sale of their gold reserves over 10 years, to prevent the price from dropping through the floor. It was open manipulation, widely reported in the press at the time, and portrayed as a good thing (to spare the mining industry from the disaster that befell the US silver mining industry when that price collapsed in the 1970s - most of those mines are still closed). I think it had gotten as low as $335/oz.
Gold is not an investment. It never has been. It never will be.
That is just on futures, I am ok with this.
It’s insurance against inflation and chaos. As it so happens, we have plenty of both lately; hence, the general rise in gold prices. Incidentally, there is only going to be more inflation and chaos over the next 2-3 years and, probably, beyond. We’re all sailing in uncharted waters.
Much better for storing wealth than say the U.S. dollar ($35 - 1 oz in the 1930s vs $1,700 - 1 oz today)
Gold Vault - Fort Knox, Kentucky
Wrong. A gold contract is 100 oz, it's a silver contract that's 5000 oz.
Funny Munny not withstanding. When I buy a gold coin I pay cash. 100% of the purchase price in cash. The coin goes somewhere safe and the cash continues to drop in value. Margin? What margin. I pay 100% of the purchase price in CASH. Frankly, I don’t know or care why anyone would sell a gold coin these days for Federal Reserve notes. Seems like a bad trade to me...
I agree gold is not an investment, in the sense of something that increases in value. Instead, it is a store of value. That the price of gold in dollars is increasing is solely due to the fact that the value of the dollar is decreasing.
The value represented in a given amount of gold should be roughly constant, if not slightly decreasing over time since more gold is constantly mined, but very little is used for industrial purposes.
I “invested” in gold at $920 and just sold at $1730. I would consider that a nice investment.
Up to WW II any creditable currency was pegged to a gold/silver standard, which would have included the money of Washingtons time as President. During the Revolution the Continental Congress tried printing paper currency not backed by real assets to pay for the war, and hence the term not worth a Continental. Then during the Civil War, both the Union and Confederacy issued paper currency unsupported by real assets. Depending on Union fortunes, the paper traded as low as 40% in relation to gold coins. By 1864 Confederate currency had a gold value of five cents on the dollar. The U.S. didn’t try anything like that again until FDR confiscated gold coins during the Depression, but silver coins were still minted and still freely circulated.
While WWII destroyed most economies of the world, the United States prospered. The only way to restart international economic activity was for the U.S. to take the lead, which it did with the Bretton Woods Agreement. Every currency had a fixed value in relation to the dollar, and the U.S. kept everything functioning by buying and selling gold at $35 an ounce. Therefore, once again there was a U.S. gold standard and the dollar became the worlds reserve currency. However, Americans could not take their Federal Reserve Notes to a Fed bank and trade them for gold.
The U.S. unilaterally abrogated the agreement in August 1971, allowed the dollar to float in relation to the trading whims involving all paper currencies. Until about 1968 people could still trade their Federal Reserve notes for Silver Certificates and trade those for packets of silver from a Federal Reserve Bank. When the government renounced that option, silver coins quickly disappeared from circulation. At this time the working careers of a single generation comprise the totality of comprehension for how the international community was to function economically without currencies emerging from things people can touch and see.
Unlike Gods spoken creation, money has no substance at any time. In spite of that people do exchange items of real value such as labor, cars, and food for words spoken over a phone by a twenty something Fed bond trader. This person calls a company such as Goldman Sachs that has an inventory of securities brokered for the Treasury Department, and pays lets say $1 billion for securities. Until the trader speaks $1billion, the money to pay for the notes or bonds does not exist. Anyone else purchasing the bonds does so with dollars already in circulation.
One analogy to explain the looming inflation might be to consider a flood control dam. The water that builds up behind it during the winter and spring could be considered QE1, QE2, QE3, etc. The face of the dam would be the current moribund economic activity indicating a very low velocity of money as exampled by such questions as Why do I want to borrow if no one wants to buy? or Why do I want to buy when I dont have a job? Now stagflation happens when the reservoir gets so full with QEs that some water just has to go over the top, even though economic activity remains anemic.
But when the economy picks up money begins to actively circulate. Now the increased velocity of money exponentially multiplies the QEs, and the increased pressure shatters the face of the dam. Just as a wall of water scours out the stream bed and washes all before it, inflation now rages through the economy and destroys peoples financial asset values and their purchasing power.
Now all this seems fairly insane, until you realize that every member of the G-20 behaves in much the same way, and do understand their precarious situation. The national debt now exceeds GDP joining that of Iceland and Ireland. By 2037 the CBO reports national debt will become 200% of GDP to reach that of Japan. Since all currencies have about this same connection to reality, finding one or several of sufficient magnitude and viability to replace the dollar as a worldwide medium of exchange and store of value becomes perplexing. An individual country might think they have a solution, but they know they must also survive during the resulting chaos as all countries seek similar solutions. They see the daunting specter of disaffected holders sending trillions of dollar denominated bonds to the marketplace when there are no buyers unless prices are severely discounted. They are also frightened by the image of a devastated U.S. economy, because feeding the insatiable desires of U.S. consumers has been a mainstay of their prosperity.
I imagine something like the final scene in The Good The Bad and The Ugly. The members of the G-20 are standing in a circle with open graves behind them. They are all contemplating how they are going to successfully outdraw the other nineteen members and survive the resulting mayhem, which Lee Van Cleefs character did not. I do not expect to survive the chaos undamaged, but I do intend mitigate the damage by eliminating debt and buying real assets as paper dollars become available to me.
Wow! You are one fast typer, dude!
Excellent analysis. You get A+++
Hmmmm. now you got me thinkin'... Ju Ju Bee backed currency. It would seem stronger than what we have right now!
Gold contracts come in 100 oz chunks. It is the silver contracts that are 5,000 oz based.
(I know you didn’t write the article, so just sayin...)
Which is why you can’t have a gold standard.
Can you explain that statement to me?
I have been told by some on Free Republic that everybody needs to have gold for when the economy collapses...that it is “insurance” and for “wealth protection”...but I am not seeing it. If the economy would collapse in the U.S. I would think we would drag down the rest of the world with us along with the value of gold. If that would happen, then how would gold be valued...I would not think it would be valued in U.S. dollars...current price $1800...future price ????...
If value is driven be supply and demand, then if demand dries up...do to economic collapse...and supply remains the same...how does gold retain its value?
My original discussion on FR about gold happened when gold was trading around $1300 and I had the option to buy an ounce or a bred cow for the same price. I bought the cow and others could not understand why I would...since then gold has gone up to $1800 while my cow gave birth and raised her calf...she gave us so much milk that I decided to buy a bull calf (to drink some of that milk) to raise for meat (cost $10). So for my $1310 “investment” (plus feed around $500) I have now sold the cows calf, have a steer that will provide around 600 pounds of beef for the freezer, and fresh milk every day. If I go with conservative numbers that would mean for a cost of $1810 I have a return of...calf sold for $700 plus, 600 pounds of beef at around $3.00 per pound equals $1800, and around 250 gallons of milk at $2.50 a gallon (currently around $3.50 here) equals $625 for a total of...$3125. And I still have the original cow to start over with...or I could have an ounce of gold.
If the economy would collapse I can still feed my family with the things that the cow can provide...and barter with some of the things as well. Gold would only provide me with substance if I sold it...if I could find a buyer...and then it is gone.
Am I missing something about gold being “insurance”?
“I do not expect to survive the chaos undamaged, but I do intend mitigate the damage by eliminating debt and buying real assets as paper dollars become available to me.”
What you have written makes sense to me. Can I ask what do you classify as “real assets”?
It’s more banal than that. It deals with growth and if you outpace growth trouble begins.
Governments get into trouble because of debt. Either they spend to much or going to war requires funding or investors are not happy with a 1% to 5% growth rate so money/credit is created to satisfy the greedy and/or the directive (like a war or pie in the sky programs).
And the US prints bonds and no so much money. The only real
‘new money’ is the interest paid to bond holders because even Red China is not dumb enough to dump US Treasury paper or the US dollar would crash becoming worthless so they sell the long paper and immediately buy short term paper and slowly invest/convert US holdings to tangibles like rare earths and grains, mainly because they have to, to keep their economy moving forwarded but do this very slowly as not to drive their own dollar holdings down by injecting to many dollars into the financial world at one time.
If you can sell the debt to others like when Nixon sold China our debt or if you can’t sell the debt then you devalue the currency by gathering up the gold then set a new price or print more paper money or create a war to hide your short comings in the economy...the Ponzi scheme in debt seems endless but it is not, always ends with a reset after much pain and suffering borne by citizens that finally revolt in some fashion that forces the issue of resolving debt.
Then human nature kicks in and the cycle repeats, throughout history it repeats...You just happen to be living at a time when financial systems are about to reset.
Gold is an indicator of confidence in governments and their fiats. As long as money is changing hands (inflows and outflows) dependent on any one thing, it can be played as an investment... or loss.
I agree that the basket scenario is the most likely, but it won’t happen anytime soon. And certainly not before a cataclysm. The near future holds more money printing as a short term fix.
Yep, land, equipment, maintenance, vet supplies, labor, taxes and risk on your calculations of return.
That said, I agree 100% that a person should acquire necessities first. Are you going to buy another bred cow once you have an extra $1,700? What about if you had a couple hundred thousand dollars to invest???
That sounds more reasonable.
Thank you. This whole subject of debt and inflation has been one I have been paying attention to for a couple months. The post is how the product of that ongoing study and not fast typing. Not too hard, because I worked in accounting, finance and investments until I retired. Monetary policy first captured my interest in graduate school in graduate school.
“Yep, land, equipment, maintenance, vet supplies, labor, taxes and risk on your calculations of return”
And gold ownership doesn’t come with extras as well? Where is the gold stored...safe deposit box, a safe, under the mattress? All have either expense or risk tied to them. If the value of the cow goes down I can still eat it and get the full value I paid for it out of the meat in the animal...if the value of gold goes down you lose money. That is the reason I still do not see the “insurance” side of owning gold...I understand the risks of a cow, but I also understand the risk of owning gold...
“Are you going to buy another bred cow once you have an extra $1,700? What about if you had a couple hundred thousand dollars to invest???”
At this point I would not need to...the cow will be bred again shortly...but I could buy another one now if I wanted to since I do not need to buy milk or meat for the family, there is extra money available. If I did have a couple hundred thousand dollars to invest I would buy more land to increase the size of the hobby farm...I can provide for my family currently on this farm but the family is growing so eventually we will probably need more land...and then I could probably raise my own hay for winter feeding reducing my costs even more...that is our long range plan.
I can put my gold coins in my pocket and fly to a foreign country with them and then exchange them for the currency of that country. Can you really do that with your cow? I have a barn and could put a couple of cows in it but I’m a very busy man, I don’t have time to play farmer. Now then, If you took the cash profit from your cows and bought gold with that, your profits would be protected against the eroding nature of fiat currency. Or, you could stick it in the bank and watch it become worth less and less. Or you could buy more cows. that too comes with its own set of risks of course. Gold doesn’t get sick and die for example. Having said all of that, if I had more time, I would own a couple of cows and a coop full of chickens and a pen full of rabbits. As it is, however, I have a degree in nursing and that is my biggest asset right now.
just make an ounce of gold worth $25,000 instead of $1750 and it works. or 50,000 dollars. you get the idea.
It's much easier to hide a gold coin than a COW! lol
Agriculture sounds like a great plan. Best to have a little gold and silver also. It's portable, easily hidden and much more liquid than most other types of property.
if the value of gold goes down you lose money.
Have you ever heard the comparison of what gold will buy and how it hasn't changed through the years. It's the value of the dollar that's dropping. Certainly there is variation but some gold/silver is indeed good insurance. Maybe a few thousand dollars of 90% silver would be the better plan.
If you get a chance, read what happened at farms during the Wiemar republic.
That 200 trillion, is that counting all the crap and toxic waste thats been spewed out as “investments”?
No it doesn’t. The increase in the money supply would be dependent on how much gold you are producing. The existing stock is how much you already possess. So countries with no gold have no money? The US is in the top five producers, but only produces a fraction relative to the GDP. China is the biggest producer, but has a small stock of gold. Canada is a big producer, but owns no gold. Invade Canada to increase your money supply. Also, at the numbers you quote, between your house and the nearest Starbucks, there would be 3 dirt hills as people dig for the metal.
Maybe I need to ask the question a different way...If I would buy gold with my profits at $1800 and then the price of gold goes to $1200 then how is that “protected against the eroding nature of fiat currency” any better then any other investment in real assets?
For the record...I have the cow, a small flock of sheep (yes we spin our own wool), a coop full of chickens, and a pond full of ducks...we got rid of the rabbits (the children didn't like the taste of the meat).
“I have a degree in nursing and that is my biggest asset right now.”
I some what agree with you...our biggest assets aren't what we own (be it gold or cow) but our knowledge and I would add our relationships with others. With having the farm my children have been able to learn skills that have led to them landing jobs in this poor economy...and those jobs have led to an increase in other skills...
I’m pretty sure the chart includes toxic assets. The chart was put together in 2010. I think it’s much larger than 200T now.
This just brings us back to my original question...please explain the “insurance” side of owning gold. In buying home owners insurance you are insuring against loss...how does owning gold insure you against loss? If gold is something that is bought and sold then does it not stand to reason that it also moves up and down in price based upon supply and demand...it was just a few years ago that the ads on TV were mostly about sending your gold in the mail to get extra cash (gold prices were cheaper and people were selling) and now the ads are trying to get you to buy (and prices have gone up)...if gold is such a great insurance then why are the ones that now own the gold willing to part with it?
“If you get a chance, read what happened at farms during the Wiemar republic”
I have read some but should probably read some more about it...but I have also read about the history of gold ownership in this country and that does not make me any more comfortable.
“It's much easier to hide a gold coin than a COW! lol”
Thanks for this line...it made me laugh...no cow under my mattress.
That has nothing to do with whether or not you can have a gold standard
No, you had to settle for 90% silver, at least until 1964.
This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury or any Federal Reserve Bank",
was later shortened to:
"This note is legal tender for all debts, public and private."
there is risk associated with anything and everything. Dairy farmers were pouring their milk down the drain during the depression because deflation had driven the price of a gallon of milk down so low that they couldn't make money selling it. That's why we have taxpayer funded Agricultural subsidies today. So what happens if don't have the money to pay those subsidies anymore?
I have had plenty of people tell me that buying gold was a bad idea. Back at $950/ounce, they were all wrong and I was all right. What am I saying? I'm saying that I will take my own advice and you can do whatever suits you. If that means becoming a farmer, then go for it. Like I said, i don't have time for that.
Incidentally, my grandmother was raised during the great depression. She came from a large family in Indiana. They were farmers and they were dirt poor. I mean they were REALLY POOR. Farming didn't pay the bills during the depression. She ultimately got a job at a bluejeans factory and saved up to obtain a college degree in nursing after which she went on to be an officer in the US Army Nurse Corps. She was at Pearl Harbor. She helped save the lives of soldiers injured at Okinawa, Guadalcanal, Iwo Jima, etc. She was, ultimately, the most successful member of her family. She was extremely smart and she managed to become successful during the great depression. She started out as a poor Indiana farm girl. (she was also a hard core conservative Republican). My point is there. You may need to look for it.
Smart Cow! Not many know that deer season hasn’t started yet!! ;)
It's like any other insurance, you hope what you have it for never happens (e.g. collapse of the dollar).
A great thing about it though is that the coverage never expires and its value vs. the dollar most likely increases. And you can leave it to your chillins.
if gold is such a great insurance then why are the ones that now own the gold willing to part with it?
I think you may be confusing investing/trading with insurance. Traders sell their gold when they've reached a target price. They'll even go short until the price falls to a point where they'll go long again. Gold dealers on the other hand make most of their money as middlemen charging a premium over spot prices (Gold Eagles prices now are almost $100 per ounce over spot).
Gold Eagles also come in 1/10 ounce sizes and again, 90% Silver is an option.
My silver assets have quadrupled in value and the gold has doubled in less than three years. I still have some cash on hand - starting to worry about it loosing considerable purchasing power though.
If you figure your labor, small time farming doesn't pay. If you figure the value of living a good life, farming is a gold mine...
Thank you...this I already know...and is why I do not understand the idea of gold being “insurance”. I understand gold as an investment...and I never said that I do not have some of it. Gold can be a good investment if it was bought at $950 and sold at $1800 but would be a bad investment if bought at $1800 but sold at $950. My issue is that gold is now being sold as insurance...as “the only safe place to put your money”...if it is the only safe place then why are the people with the gold so interested in getting rid of it...selling it to others. The real answer is because they know that gold is going up because demand is going up...if nobody wanted gold then the price would drop. This is why I do not look at gold as insurance.
Yes, farmers were pouring “milk down the drain” and they have since then as well...reduce the supply or increase demand and the price will go up in a true market place. The problem with the farm market today is the stupid subsidies...I was actually offered one so that I would mow my pasture instead of graze on it...I don't accept subsidies.
Thank you for the story about the family back ground. I too have relatives that made it through the great depression. Several of them made it through by raising some animals for food (and they all lived in big cities) and my in-laws made it by planting a field with beans that they hand picked so they could barter with others...the community was able to feed itself. The thing that I have noticed with all of these stories...including yours...is that all of them made it through the depression by working, learning and some form of community but none of them had the “insurance” of owning gold. So if we look at the history of the “average” person...gold is not the “insurance” that it is being sold as. If we go into another depression gold will not be the thing that sees you through it...God, family and work will be much higher on the list.
“It's like any other insurance, you hope what you have it for never happens (e.g. collapse of the dollar).”
Okay...and if the dollar collapses how is gold then valued? Would it not be valued based upon what it could buy? With that in mind, if the average person is just trying to put food on the table after a collapse would there really be much demand for gold? I would think that based upon supply and demand the “value” would drop...but who knows.
“And you can leave it to your chillins.”
I actually know a farmer that started with one cow and has lived his enter life off of the calves from the first cow. He now has a herd of around 50 cows and set up a couple of his children with the start of a herd for themselves. So I guess you can leave it to your “chillins” either way :)
“I think you may be confusing investing/trading with insurance”
Actually I understand the idea of gold as an investment and agree that at times it makes sense to invest in it. My issue from the very beginning is the idea of gold being “insurance”. The ads on TV are pushing this idea big time. But if we get to a point of collapse I do not see it as insurance for most people...it will become a false sense of security for most. If we get to collapse then all of us will have to work harder then we now are to take care of our families...even if we own gold.
“My silver assets have quadrupled in value and the gold has doubled in less than three years.”
Congratulations...you made some good investments, but at today's prices do you see it as a good time to get into the market? Do you see gold doubling again in three years?
“If you figure your labor, small time farming doesn't pay.”
Everybody has to spend the same amount of time each day doing something (we all start with 24 hours)...I spend some of that time farming and get a return from it...maybe not much but it is still something. Others spend that time watching TV, golfing, gaming, etc. and that is there choice...but we don't normally think of that as “labor” so we don't count it against our daily time.
“If you figure the value of living a good life, farming is a gold mine...”
I completely agree :)
You just compared gold to a business. You are in the cow/calf/milk business. Why not compare gold to the coffee shop business or the chicken raising business?
Gold is money.
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