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Japanese Prepare For "Abenomics Failure", Scramble To Buy Physical Gold
Zero Hedge ^ | 3-28-2014 | Tyler Durden

Posted on 03/28/2014 8:46:41 AM PDT by blam

Japanese Prepare For "Abenomics Failure", Scramble To Buy Physical Gold

Tyler Durden
03/28/2014 10:42 -0400

As we reported yesterday, the world's most clueless prime minister, Japan's Shinzo Abe, has suddenly found himself in a "no way out" situation, with inflation for most items suddenly soaring (courtesy of exported deflation slamming Europe), without a matched increase in wages as reflected in the "surprising" tumble in household spending, which dropped 2.5% on expectations of a 0.1% increase in the month ahead of Japan's infamous sales tax hike. How does one explain this unwillingness by the public to buy worthless trinkets and non-durable goods and services ahead of an imminent price surge? Simple - while the government may have no options now, the same can not be said of its citizens who have lived next to China long enough to know precisely what to do when faced with runaway inflation, and enjoying the added benefit of a collapsing curency courtesy of Kuroda's "wealth effect." That something is to buy gold, of course, lots of it.

According to the FT, "Tanaka Kikinzoku Jewelry, a precious metals specialist, reported that sales of gold ingots across seven of its shops are up more than 500% this month. At the company’s flagship store in Ginza on Thursday, people queued for up to three hours to buy 500g bars worth about Y2.3m ($22,500). March has been the busiest month in Tanaka’s 120-year history."

Of course, while the Japanese consumers know what is the best defense against runaway inflation and purchasing power destruction, the government also knows that just like in India, where massive gold imports to satisfy local demand so skewed the current account deficit that India spent most of 2013 imposing gold capital controls, it simply needs to make gold purchases impossible ...

(snip)

(Excerpt) Read more at zerohedge.com ...


TOPICS: News/Current Events
KEYWORDS: abenomics; gold; inflation; japan

1 posted on 03/28/2014 8:46:42 AM PDT by blam
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To: blam

It’s unlikely that 100 million people would each buy half a kilo because probably not that many have $20,000 to spare. But it’s also unlikely because doing so would be 50 million kilos, or 50 thousand tons, and there isn’t that much for sale. Ft. Knox is alleged to have only about 8 thousand tons, and there are significant doubts whether it even has that much. The US only managed to deliver 5 tons (not 5 thousand - just 5) to Germany in an entire year.


2 posted on 03/28/2014 8:51:40 AM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: blam

I seem to remember the authors name from somewhere. Fight Club?


3 posted on 03/28/2014 8:55:16 AM PDT by BipolarBob
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To: blam

Now that gold is tanking, we will be flooded with ‘world is ending, GUY GOLD!’ articles.

The ads on TV will ramp up too.

Those that control the gold market are in a panic to unload the crap.


4 posted on 03/28/2014 8:57:51 AM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: blam; All

I heard an ad yesterday (Of course I know the guy is trying to sell) that said gold will hit $2,000 and silver will hit $50 before the year is out. Do any of you agree? Is this a buying opportunity?


5 posted on 03/28/2014 8:59:03 AM PDT by VerySadAmerican (".....Barrack, and the horse Mohammed rode in on.")
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To: VerySadAmerican

Silver’s below $20. I’m thinking some tax return money’s going that direction.


6 posted on 03/28/2014 9:00:20 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: blam
Euro Tanks On Spanish Deflation
7 posted on 03/28/2014 9:01:38 AM PDT by blam
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To: blam

I hope they are storing food as food prices will go up with everything else. If you have nothing to eat, a can of beans can equal a gold bar in value.


8 posted on 03/28/2014 9:03:26 AM PDT by Marcella (Prepping can save your life today. Going Galt is freedom.)
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To: blam

That was this morning. currently 1.3752, up on the day


9 posted on 03/28/2014 9:03:51 AM PDT by spyone (ridiculum)
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To: VerySadAmerican
"Is this a buying opportunity?"

Maybe.

My precious metal holdings are insurance only...not meant to be money-making investments.

10 posted on 03/28/2014 9:04:08 AM PDT by blam
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To: blam

Vitamins D is important to your health. You should get some every day but you can’t make a meal of it and you certainly need other nutrients as well.

Likewise physical metals like gold and silver. Have some. Have enough so it’s a bit hard to move it around but no one needs to hear again about eggs in one basket.


11 posted on 03/28/2014 9:05:00 AM PDT by muir_redwoods (When I first read it, " Atlas Shrugged" was fiction)
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To: Marcella
"I hope they are storing food as food prices will go up with everything else. If you have nothing to eat, a can of beans can equal a gold bar in value."

I agree.

The Real Inflation Fear - US Food Prices Are Up 19% In 2014

12 posted on 03/28/2014 9:06:42 AM PDT by blam
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To: BipolarBob

All of the story posters in ZH are Tyler Durden.

Its kind of “their thing.” The story is not WRITTEN by Durden, just posted by them.


13 posted on 03/28/2014 9:10:18 AM PDT by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: muir_redwoods
"Vitamins D is important to your health."

Agree....I take 10,000 IU daily.

The Antibiotic Vitamin
(Posted here 8 years ago)

14 posted on 03/28/2014 9:10:22 AM PDT by blam
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To: VerySadAmerican

Gold will never hit $2000.

China is crashing. They need liquidity and they will sell gold to get it.

The US is in a bubble. Gold will be sold to get liquidity.

Think about it. If Gold was going to boom, do you think they would be shilling it all of the time? Or would those Gold companies hold onto their gold and sell it later?

Gold will pop up again, and my bet is that it hits $700 before it hits $2,000. We are about to enter a deflationary period, not hyperinflationary.

And before you tell me about the Fed Printing, answer me why the Bank of Japan printed for the past twenty years before we see ANY inflation.


15 posted on 03/28/2014 9:13:21 AM PDT by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: Vermont Lt

China has been buying like crazy in the last year as their economy has been weakening. Not likely to sell gold. They don’t need it for liquidity. Their central bank creates money like ever other one.


16 posted on 03/28/2014 9:20:54 AM PDT by spyone (ridiculum)
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To: blam

Ping for later.


17 posted on 03/28/2014 9:29:38 AM PDT by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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To: Beagle8U

Now that gold is tanking, we will be flooded with ‘world is ending, GUY GOLD!’ articles.

The ads on TV will ramp up too.


Actually, rising prices usually stimulate demand, and advertising by smart retailers.


18 posted on 03/28/2014 9:30:55 AM PDT by Atlas Sneezed ("Income Inequality?" Let's start with Washington DC vs. the rest of the nation!)
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To: Vermont Lt

Some of the are written by (a) Tyler. The ones that aren’t have an attribution at the top. Since this one doesn’t, it is one of the ones written by (one of the) Tyler(s).


19 posted on 03/28/2014 9:32:15 AM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: VerySadAmerican

Is this a buying opportunity?


If you’re looking to accumulate some precious metals, don’t do it all at one time and try to time the market. Buy some every month. Now is an excellent time to start, even if it continues down before rising again.


20 posted on 03/28/2014 9:32:15 AM PDT by Atlas Sneezed ("Income Inequality?" Let's start with Washington DC vs. the rest of the nation!)
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To: Marcella

If you have nothing to eat, a can of beans can equal a gold bar in value.


Fortunately, I’ll be nearby, happy to trade two spare cans of beans for your bar of gold.

No one with gold will starve, but it’s smart to stock up a bit first.


21 posted on 03/28/2014 9:33:22 AM PDT by Atlas Sneezed ("Income Inequality?" Let's start with Washington DC vs. the rest of the nation!)
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To: Beagle8U

Those that control the gold market are buying up all they can at fire sale prices because they know that their game is almost up.


22 posted on 03/28/2014 9:33:43 AM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Vermont Lt
Gold will never hit $2000.

It will on the way up to $5000.

23 posted on 03/28/2014 9:36:00 AM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Vermont Lt

If Gold was going to boom, do you think they would be shilling it all of the time? Or would those Gold companies hold onto their gold and sell it later?


Those who are selling essentially don’t own any gold, any more than minimal inventory. They’re RETAILERS who profit from the transaction.

Or do you think that realtors are hypocrites for trying to sell houses when they should be holding on to them?

I’m amazed that intelligent Freepers come up with this argument so often.


24 posted on 03/28/2014 9:36:01 AM PDT by Atlas Sneezed ("Income Inequality?" Let's start with Washington DC vs. the rest of the nation!)
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To: Atlas Sneezed

In reality you will be trading a case of beans for a mercury dime.


25 posted on 03/28/2014 9:37:29 AM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: SVTCobra03

Sell your house and stock up on gold! Do it quick before prices go up!


26 posted on 03/28/2014 9:37:56 AM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: Marcella

“If you have nothing to eat, a can of beans can equal a gold bar in value.”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

If I only had one can of beans and there was no other food anywhere I wouldn’t trade that can of beans for all the gold on Earth. The beans would fill your belly for a little while, the gold would do nothing for you.


27 posted on 03/28/2014 9:39:01 AM PDT by RipSawyer
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To: blam
My precious metal holdings are insurance only...not meant to be money-making investments.

The only sensible position for anyone other than a hedge fund, prop traders at big banks or the Rothschilds.

28 posted on 03/28/2014 9:44:26 AM PDT by Stentor (Maybe the Goldman Sachs thing is just a coincidence. /S)
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To: RipSawyer

http://www.the-scientist.com/?articles.view/articleNo/36102/title/Silver-Boosts-Antibiotic-Efficacy/

Course some big shots in the WHO say that it is the only antibiotic effective against...this:

http://www.medicinenet.com/mrsa_infection/article.htm

oh well


29 posted on 03/28/2014 9:49:29 AM PDT by Therapsid
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To: spyone

“China has been buying like crazy in the last year as their economy has been weakening. Not likely to sell gold. They don’t need it for liquidity. Their central bank creates money like ever other one.”

The Chinese have been curbing their holdings in US Treasurys. They’ve got over a trillion dollars of them. I’d think they’d dump those before gold. In fact, selling them to buy gold might be a good idea to them.


30 posted on 03/28/2014 9:53:38 AM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: Atlas Sneezed
I’m amazed that intelligent Freepers come up with this argument so often.

I see a false assumption on your part.

My favorite "intelligent" argument is the one that sees no possible variation in collapse scenarios. It's either status quo or The Road: The "you can't eat gold argument".

31 posted on 03/28/2014 9:57:47 AM PDT by Stentor (Maybe the Goldman Sachs thing is just a coincidence. /S)
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To: spyone

You realize they are being squeezed by a liquidity vice, right?


32 posted on 03/28/2014 10:55:47 AM PDT by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: Vermont Lt

Liquidity vice? no. Solvency vice? yes. They are reducing their Treasuries, increasing their gold holdings, and easing their currency value. This has been happening for a year, prior to their Lehmann moment, which is upon us shortly.


33 posted on 03/28/2014 11:05:39 AM PDT by spyone (ridiculum)
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To: VerySadAmerican
I heard an ad yesterday (Of course I know the guy is trying to sell) that said gold will hit $2,000 and silver will hit $50 before the year is out. Do any of you agree? Is this a buying opportunity?

And I read an article from an "expert" that says gold and silver will tumble in 2014, with gold going down to the $300s level. Predictions are all over the map; you're better off going to a fortune teller (get it, "fortune" teller ha-ha). The expert I am speaking of predicts massive deflation in our economy because public debt far exceeds our government debt. Everyone is looking at what the government owes, but they are ignoring the fact that people (the public) have massively created artificial money by borrowing against credit cards and the like and it will collapse causing deflation. A reset of the economy, so to speak. Those who have no debt will prosper and survive. Those who sink money in metals, property and stocks will lose fortunes.

I don't know who to believe. If you have extra money, then put some in metals. But I wouldn't put all my eggs in one basket. Scary times.

34 posted on 03/28/2014 11:15:47 AM PDT by roadcat
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To: blam

Because in Japan you can’t buy those neatly packaged precious metals Copper, Lead and Brass!


35 posted on 03/28/2014 12:30:13 PM PDT by DTogo (High time to bring back The Sons of Liberty !!)
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To: Atlas Sneezed

“Fortunately, I’ll be nearby, happy to trade two spare cans of beans for your bar of gold. No one with gold will starve, but it’s smart to stock up a bit first.”

The article didn’t mention the Japanese are storing food, so I wondered if they were only buying gold and that’s it.
It’s not an either, or, situation. Have both but have food first.


36 posted on 03/28/2014 12:48:24 PM PDT by Marcella (Prepping can save your life today. Going Galt is freedom.)
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To: VerySadAmerican; blam
Silver is below $20 / oz which is below production cost so I doubt if it will naturally go much lower so now is the time to buy.

Buy it as insurance. Pre 65 US silver coins will be a known quantity if the dollar collapses or in case of hyperinflation.

37 posted on 03/28/2014 12:48:35 PM PDT by Eagles6 (Valley Forge Redux)
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To: Eagles6
Pre 65 US silver coins will be a known quantity if the dollar collapses or in case of hyperinflation.

In the case of hyperinflation, paper money will likely be devalued, with a turn-in of old $10 becoming a new $1. However, most times this has been done, only paper money is affected and coinage is ignored. Which means that your old 50 cent piece will instantly become worth $5. Government figures most people only have a little coinage on hand. They don't know my wife, with many thousands of pennies, nickels and dimes. I have a lot of nickels; going through them I've found silver war nickels (they're still in circulation).

38 posted on 03/28/2014 5:17:22 PM PDT by roadcat
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