Skip to comments.Japanese Prepare For "Abenomics Failure", Scramble To Buy Physical Gold
Posted on 03/28/2014 8:46:41 AM PDT by blam
Japanese Prepare For "Abenomics Failure", Scramble To Buy Physical Gold
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 companys 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 Tanakas 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 ...
(Excerpt) Read more at zerohedge.com ...
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.
I seem to remember the authors name from somewhere. Fight Club?
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.
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?
Silver’s below $20. I’m thinking some tax return money’s going that direction.
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.
That was this morning. currently 1.3752, up on the day
My precious metal holdings are insurance only...not meant to be money-making investments.
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.
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.
Agree....I take 10,000 IU daily.
The Antibiotic Vitamin
(Posted here 8 years ago)
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.
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.
Ping for later.
Now that gold is tanking, we will be flooded with world is ending, GUY GOLD! articles.
The ads on TV will ramp up too.
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).
Is this a buying opportunity?
If you have nothing to eat, a can of beans can equal a gold bar in value.
No one with gold will starve, but it’s smart to stock up a bit first.
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.
It will on the way up to $5000.
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?
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.
In reality you will be trading a case of beans for a mercury dime.
Sell your house and stock up on gold! Do it quick before prices go up!
“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.
The only sensible position for anyone other than a hedge fund, prop traders at big banks or the Rothschilds.
Course some big shots in the WHO say that it is the only antibiotic effective against...this:
“China has been buying like crazy in the last year as their economy has been weakening. Not likely to sell gold. They dont 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.
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".
You realize they are being squeezed by a liquidity vice, right?
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.
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.
Because in Japan you can’t buy those neatly packaged precious metals Copper, Lead and Brass!
“Fortunately, Ill be nearby, happy to trade two spare cans of beans for your bar of gold. No one with gold will starve, but its 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.
Buy it as insurance. 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).