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Monday, June 26, 2017

In German: Gold And Silver Price Seasonality…June Worst Month?
06/04/2017 - 10:48
06/26/2017 - 10:48

My recent Gold Analysis was published in the most popular Gold Site in Germany (und auf Deutsch). Here is a link to German version at the famous GOLDSEITEN.DE site:

You might send it to your German speaking friends around the word.

The theft problem in the ponzi scheme >
06/03/2017 - 11:53
06/26/2017 - 11:53

> When a credit system is failing and requires ever more credit and debt just to stay afloat, possession and collateral become secondary for theft becomes rampant. What is the difference between having ghost physical assets or creating credit out of thin air, loaning it out and using the loan itself as collateral? The collateral is a complete phantom in both cases. What is there to stop anyone from selling 100 paper ounces of gold for each physical ounce of gold held in storage through rehypothecation the same ounce of gold over and over? Same applies to home mortgages or any other form of collateral. Why is the same collateral (rehypothecated) being used to secure loans from different lenders?

The financial crisis of 2008 was a bubble like all bubbles before it, caused by too much rehypothecated leverage. Loans were given to people or entities who had no real equity or collateral.

How do you cure a massive financial bubble?

You allow it to pop. You allow prices to sink to the correct level where prices are in line with demand. You allow a painful period of deflation to occur. If the Fed had not intervened during the financial crisis, prices would have fallen much further. In short, prices would have fallen to their natural level without the distortions imposed by the Federal Reserve. Bad financial behavior caused the financial crisis of 2008. Those guilty of bad financial behavior should have been jailed, not rescued by the Federal Reserve.

We live in an immoral and permissive age. Bad behavior is rewarded. No one is held accountable for irresponsible financial behavior. Instead of allowing the massive financial bubble to pop in 2008, the know it alls at the Fed decided to make the bubble bigger. Now we are in the mother of all stock market bubbles. Prices are so distorted, so disconnected from any meaningful form of reality, that it is as if we are in an alternative universe. Gold and self sufficiency will be the coming alternative universe. So will currencies like Bitcoin.

Why is the Fed raising interest on excess reserves (IOER) and not on the Fed funds rates? To me it looks like they know the shit will hit the fan, thus want to increase the reserves. What is so wrong with bailing out the people who get hurt instead of the crooks who make the money by shorting? Are bubbles created to be shorted on the way down?

To hike rates or not hike rates...THAT IS THE QUESTION
05/31/2017 - 14:57
06/26/2017 - 02:57

The Fed's Dilemma: “They’ve got a dilemma building with unemployment very low, unusually low, but at the same time core inflation is not showing signs of picking up,” said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto. “I expect there will be some divide, but my guess is the minutes will suggest a June rate hike is still a distinct possibility.”

That may prove true partly because some of the disappointing inflation data didn’t emerge until after the May 2-3 meeting. The gathering also occurred before a burst of political turmoil in Washington raised questions about the Trump administration’s ability to deliver on promised tax cuts and regulatory rollback.

“The markets may be disposed to say the minutes are old news,” said Michael Hanson, head of global macro strategy at TD Securities in New York.

The probability of a rate hike at the Fed’s June 13-14 meeting implied by prices for federal fund futures contracts were around 78 percent after peaking at 85 percent on May 9.

Nonetheless, I believe Fed Chair Yellen will cautiously hike interest rates in the mid-June FOMA on June 13-14.

Why is ever more debt recorded as earnings?
05/11/2017 - 09:57
06/26/2017 - 09:57

Our money system represents debt that has been monetized. The interest lug on this monetized debt is annihilating the middle class and delivering the USA into third world status. We are moving to the poor house next to the outhouse. It is the arrival of raw materials times price - man debited, nature credited that delivers earnings. But for that to happen, there has to be a sound money system that is backed by a commodity. The bottom line is that debt cannot be paid with debt and debt generates no aggregate income that is not offset by more debt. It takes production times price to generate aggregate income for an economy. And for that to happen there has to be honest money and we don't have that. In our system, all money is debt money. There is no other source of money except to borrow it into existence. How can debt be retired with debt dollars?

05/01/2017 - 22:18
06/26/2017 - 10:18

There used to be Glass-Steagall law that split banking into two categories: deposit-taking banks backed by taxpayers that primarily made loans to businesses and consumers, and investment banks and insurers that trade and underwrite securities and create complex (derivative) financial instruments to screw the people with. Severing those screw businesses from taxpayer support would prevent Americans’ nest eggs from flowing into the financial screw business. This collusion to rig the system with taxpayer backup needs to be changed. Once these changes do take place, gold will be the place to be. Stagflation is setting in, the banksters know it, and are doing everything possible to hide that fact. Eventually it will all fail.

There is no better time for the mines to hold gold.
(Brett Star)
05/01/2017 - 20:55
06/26/2017 - 08:55

The abrupt stop in the sales of gold would send the paper boys packing. Today's action spells collusion so thick it could spell the end of trading as we know it. A good thing if you ask me....courage needed.

In-debt the debt slaves more to keep the economic ship from sinking.
05/01/2017 - 17:27
06/26/2017 - 05:27

The federal government's spending and debt pile up is like cancer that is incapable of stopping its growth. Spending appetite is insatiable and out of control. The unsustainable debt will be an economic anchor to all Americans and most of the world.

Negotiators in the U.S. Congress reached a deal late on Sunday with $1 trillion in federal funding to avert a government shutdown until September. What this shows is that Congress can't pass an actual budget. Real budget priorities like health care, infrastructure, defense, the VA, and retirement are going to take revenue that simply does not exist. Thus another trillion dollars gets added to the national debt. Increasing the debt is not paying it down. There is no serving the public good. Everything is done to tighten the stranglehold on the slave class on behalf of the ruling class.

The debtor is slave to the creditor
(Au Gratin)
05/01/2017 - 01:16
06/26/2017 - 01:16

Maybe government regulating banks is backwards and that banks regulate the government?
Perhaps we could ask Goldman Sachs who the next treasury secretary will be. I am sure they already know.
He/ she will be one of their own.
Why do the big Wall Street banks always get what they want? Why are they never jailed for their crimes?
Why was the TARP bailout simply handed over on demand without a vote by the citizens? It was, after all, our money was it not? Instead of loaning it, they gave it to themselves as bonuses. Perhaps some things are too important to risk allowing "the people" to decide?
After the Trump election, Brexit, and perhaps a Frexit in the future, I have to wonder how much longer we will be allowed to vote at all. Not that voting makes a lot of difference now.
From where I sit, it would appear the big banks simply do whatever they want regardless of the law and with no fear of being prosecuted. Could it be these criminals always were "the government" and we are only now figuring it out?

$18T economy and only $5T is real
04/30/2017 - 11:38
06/26/2017 - 11:38

We haven't had real growth since the 2007-2009 crisis. We have a $18T economy of which $5T is real and the rest is just made up bullshit accounting. Take away the QE trillions the Fed has inserted into the economy to keep the economy going, there would be no economy. All we are doing is growing the debt in any way possible. To have stock buybacks on borrowed money causing stocks to be artificially priced is not the road to prosperity. We need that borrowed money to go into real productivity of real things instead of just increasing the debt. .

The first place investors turn to when government bonds are yielding next to nothing is corporate debt. That increased corporate debt demand drives down borrowing costs which incentivizes corporations to issue more debt. Most of the proceeds from that debt issuance are then used for stock buybacks or buying back unsold inventory to increase reported made up earnings. That buoys stock prices which is good for management's equity-linked compensation. The debt that funds these buybacks is being issued at artificially suppressed rates, thus the added debt gets used for financial engineering (debt leveraging). All this is doing is creating an ever bigger leveraged debt problem.

It is funny how Congress, the Media, and Pundits sit around year after year, endlessly debating whether or not honest accounting, fair taxes, good health care plan could work to improve the economy that is forced to operate on fraudulent money. In the meantime the economy will continue to stagnate. We've become a nation of bullshit debaters, do-nothings and slavery operators.

$ is no worse than gold >
04/23/2017 - 23:07
06/26/2017 - 11:07

> now, but will be soon.

We have a one world currency (gold). The banksters are doing everything possible to kill gold because they can't print it. Because gold can not be killed, the banksters leveraged (financialized) it. By that I mean, their gold used for credit creation is worth many times our gold not used for credit creation. So what is going to change the value of the US$?

Right now there are two $ currencies, domestic and foreign. What is going to kill the domestic US$ is the inability of ever more entities that make debt payments on debt by issuing more debt. The US domestic dollar has become a way to trade IOU's and the foreign $ has become a trade currency exporters use to buy needed supplies needed to manufacture the export.

Monday, June 26, 2017

The melting point of gold is 1337.33 K (1064.18 °C, 1947.52 °F).