Gold price is a function of the amount of money in circulation. If we play Monopoly® with $10,000 in the pot, Boardwalk and Park Place are priced accordingly. If we now play the same game with $100,000, the same entities are priced accordingly. Because of all the paper we have printed, the price of Gold has to go up. Gold price becomes a barometer of the amount of money in circulation. The only exception would be a sudden deflation. Gold price would initially go down but then skyrocket higher. The only reason you see a dip now is that speculators have to cover their short positions or people need the money to cover other losses. But on every dip, the Chinese come in and dump their increasingly worthless dollars for the yellow metal. Is Gold going down significantly? If you understand Gold’s function, I just cannot envision a scenario where this would happen.

IF the facts are….Europe is in a
INFLATIONARY SPIRAL…..gold goes up….., then Ron’s number of $1495 is low….

If gold is manipulated…which is proven….the numbers are manipulated,
if the numbers are manipulated, the true value is false, and if false, then
the number of $1495 is false…..And not true value……
‘”as they say, you can fool some of the people some of the time, but, you can not
fool all the people , all the time…..” OOTB

James Turk goldmoney.com: An accurate accounting and reporting of central bank gold reserves would go a long way to reassuring Germans and Europeans generally about the future of the euro.

I find it interesting that to discuss this in terms of the US dollar is forbidden in our worthless media and by the brilliant financial pundits like Larry Kudlow and James Cramer.

Everything is theatre. Eric Sprott is 10000% correct. Politicians are liars and government is the source of so many of our problems and alienation.

Hi Big Al,
Sure gold can come down to $1495.00 and then some like Rick suggests. Not to worry because buyers will step up to purchase. My understanding is 40% of US households are living from paycheck to paycheck. So the Asian markets will be making large purchases with the central banks of the world. The rich get richer and the poor get poorer. Sad but true. Thanks for your show.

[…] Grandich Interview – highlight segment 7 […]

[…] Grandich Interview – highlight segment 7 […]

Al,
For lack of better terms… 😉 some thoughts below:

Surely at one time or another you’ve had a margined account. It doesn’t matter how strong gold’s fundamental prospects are in the long term; when big investors have to pay margin calls in a market panic, they will cash in their gold. All of them. Gold is their insurance! Because gold holds its value relatively well, it’s handy to cash it in such situations. It will take the price of gold in dollars down.

We went through this in spring 2008, autumn 2008, went through it in autumn 2011, and again this spring. It will likely happen again when the European crisis hits the fan yet one more time (yawn).

There are many long-term drivers of the price of gold & silver — at some point banks may want more government $ and the central bankers will not be able to oblige… at some point creditors may doubt the ability of the US and others to make good on debt… on and on.

KS and all,
Boy, KS, you nailed it.. These so-called experts are completely and absolutely underestimating or discounting the growing economic ‘steam engine’ of demand and as Dr. Berry says – a convergence of a great BILLIONS of people (BRICS) needs, wants and desires – gold and silver, is a HUGE part of THEIR PUZZLE. NOT ours (Americans, the west, mind you), but theirs! The WEST hasn’t figured that out – yet! Too bad for us…
Marc

Hi Al, I just want to say that I agree 110% with Peter G and Chris Temple, so what is next? The chief difficulty is to find a person or group of persons wise enough to know how to apply the levers of a government and who has the mandate to be allowed to keep their grip upon it until the american society is rooted once again in the true values of self reliance and moral and family values. People need this leadership at a national level even as it takes hold in a grass roots movement. Congressman Dr. Ron Paul, is the obvious and only choice for me.

Al and Guests: The following comment auditorium by Don Coxe is a must listen too. If anyone misses this comment, they are missing the best analysis of the Month.

http://www.bellwebcasting.ca/audience/index.asp?eventid=70081727&lang=english&rndkey=&bypass_lobby=0&PassThruReg=0&vcs_only=0

People who believe money in the bank is safe because of FDIC don’t understand what government are and can do. The worlds economic and political systems are dying from terminal Keynesian disease.

There are no Keynesian road maps or navigators to where these systems are going, the only true and useful guides are the old long term proven systems which the world is returning to. Ayn Rand was right.

Dr Burry has a great talk on our troubled times. It was delivered at UCLA. Perhaps Al can get him to come on.

http://www.youtube.com/watch?v=1CLhqjOzoyE

This country is really going right down the crapper.

The character of the American people has drastically declined.

Here’s just one example of what’s going on in this country every day.

Big Al and all of you, I want you to meet some upstanding AmeroCons. These are Colliefornian (as Ahnode Swarchenegger says) citizens.

http://www.liveleak.com/view?i=ee7_1340044359

Turns out the one who got the worst of it is no angel…

http://usnews.msnbc.msn.com/_news/2012/06/22/12358143-victim-in-videotaped-road-rage-beating-arrested-for-previous-road-rage-incident?lite/

This country is really going right down the crapper.

The character of the American people has drastically declined.

Here’s just one example of what’s going on in this country every day.

Big Al and all of you, I want you to meet some upstanding AmeroCons. These are Colliefornian (as Ahnode Swarchenegger says) citizens.

http://www.liveleak.com/view?i=ee7_1340044359

Turns out the one who got the worst of it is no angel…

http://usnews.msnbc.msn.com/_news/2012/06/22/12358143-victim-in-videotaped-road-rage-beating-arrested-for-previous-road-rage-incident?lite/

And look what goes on in the gummit youth propaganda camps (aka public schools).

This kind of thing goes on every school day in this county.

Is it any surprise this country is going right down the crapper?

This should be a commercial for home schooling. The gummit schools are an absolute disgrace.

Just look at the video below. When this happens out in Colliefornia the public unions jump up and down and scream that the gummit schools don’t have enought money. The more they fail the money they demand and receive.

http://www.lewrockwell.com/blog/lewrw/archives/114037.html

And now if you will excuse me I am going to watch that Jamie Dimon love fest our Congress Critters conducted.

Dang it, I’m so angry I can’t even type…sorry for the typos.

I think most men never grow up or mature no matter how old they get, when I was younger I used to refer to them as dorks and I’m sure some on this sight understand what I’m getting at you can be 80 years old and still be a male dork. My point is this sometimes I find myself sliding into dorkdom when Father’s day rolls around I had to remind myself that the important part to remember is that the family is all together no matter what has happened. Hey guys I’m sorry to say but women have us beat at maturity no matter what age we are at.

I tell you boys, I just don’t understand what’s gotten into these people. Maybe it is the water. The behavior of these people just has me flummoxed.

So sorry for getting so flustered.

I try to remember the event I went to this year when Ron Paul came to a local college campus.

It was packed with young people and a person could have easily been concerned about potential rowdiness, trouble and general hooliganism when you have that many young people crammed into one location.

But I tell ya Big Al, it was the most well behaved group with no problems at all. It really gave me some hope and belief in these young people.

So hopefully there is a counter balance to all the insanity going on in this society.

Ellen Brown,
I think that Ms Brown is right on. Where do you put your money if thing go to H–l in a hand basket? The US Treas bonds could have worked 50 years ago even 20 years ago but if things collapse what than or if inflation takes off where does it leave us if we are in T-Bills?

You can violate the laws of economics for just so long than as Adam Smith would say the invisible hand of the market takes over. The chaos that could follow opens the way for tyranny. In the meantime resource securities look pretty good.

Thanks for having her do the interview.

I’m just listening to the show now, but Bob Merry sounds like a great guy to have a conversation with. Definitely will go have a look at his book. http://www.amazon.com/Where-They-Stand-Presidents-Historians/dp/1451625405/ref=sr_1_fkmr1_1?ie=UTF8&qid=1340491656&sr=8-1-fkmr1&keywords=Where+They+Stand+Bob+Merry That’s cheaper than doing the research myself.

Al, I appreciate Ellen Brown’s piece. She’s pretty sharp, and her views — which have seemingly differed from those on this board in the past — are interesting and quite well-informed. I actually don’t think she’s too different from anyone here.

I was thinking this week if maybe you can get Jon Nadler on the show (for real), and perhaps some more cool on gold. I noticed the reaction to Ellis Martin was a teeny hostile. Hearing from those with varying or opposite views of mine doesn’t bother me, and I think it’s helpful for us on the board to hear what others think — not just as a polite tit-for-tat, but to understand that a lot of influential people with differing opinions do have a basis for their beliefs (even if they are completely wrong!).

John,
I agree, It is very helpful to hear all sides of the story!!

The reason I like some different opinions is because it helps with interpretation of timing, both for fundamental and technical analysis. There’s no question in my mind either what the end game has to be, but there is a big question on the timing. By listening to others we don’t apparently agree with, you can gauge the degree of sentiment you’re fighting against (it’s hard to swim upstream). For example, none of us probably thought the USD index would by 82.50 in June 2012, or even that gold would still be around $1,540.

I like to hear Nadler’s take on his sources, some of which I’ve never heard of. Or, he might use a source like WGC numbers, but spin them differently. Not paying attention to these views is, at least in part, why some of us remain flustered at the prices of juniors or the price of gold themselves. They may be in the mainstream, but many of those people we don’t listen to haven’t been entirely wrong (again, short term). This is the approach of Mohammed El Erian of Pimco, and of course our wonderful host Al. Listening to everyone gives you the heartbeat of the market today, and some idea of where it might be tomorrow.

Hi Al, great show as always, I just love bad news just the miner in me I guess. If the price of gold/silver goes down so will the number of those resource miners disappear, since you guys have said that the average amt. of cost of per oz. yield is $750-$950 for operatating capital is required for a profit of any given mine to run in this day and age. After looking at how low their average yield per oz., per ton is for a given mine I think its probably much higher than that. Now this is for most mines in the junior resource sector in my opinion. I think the average geologist is a con man looking for suckers to buy his/or her stock knowning full well of not delivering hardly ever to see a profit on his end. The death valley scotty crowd are with us forever. I really like Trader Rog, he sounds so good, he`s truly your greatest guest to speak, his monday trends was a classic. Ellen Brown speaks volumes of deep thought for long thought on our long on-going nightmare called America. Obama truly sees himself as another Castro wanting to transform America into another failed power like the old soviet union. Obama must have really bought the farm with the black muslim movement of the sixties…..

What is going to happen?

We know that the economy of the US is about to drop over a physical cliff. Tax rates, fees, regulations and draconian measures are being implemented by Washington politicians in “Whatever” reasons they have. Reasons neither they nor anyone else can understand. But the fact is the physical cliff is dead ahead only months away. Treasury Bonds are at record low rates, negative in most cases and prices at record highs while the largest purchases are supported by Fed monetization.

In order to answer the above question “What is going to happen?”, we turn to history just like a technician turns to charts. One of the best books on this subject is “This Time Is Different: Eight Centuries of Financial Folly” by Carmen M. Reinhart & Kenneth S. Rogoff. In 800 years of world history the authors show that when a nation is in similar situation as the US is now, they turn to printing in order to pay off the debt. Only one case among hundreds did a nation choose austerity which was Great Britain.

The title of this book, “This time is Different”, explains the reasoning why the leaders of a nation at the physical cliff decide to print, because like Zero Hedge reports the leaders are addicted to hopium and delusional. Does anyone in our government appear to operate on hope, change and delusion? From my perspective nearly all the politicians government are hopelessly addicted to hopium and delusional with less than a handful who are not.

There is a greater than 99% probability the US government will follow the historical examples of money printing to pay off its debt. The only question left is which of the 99% examples outlined in the book “This time is Different” will the US follow?

Gold, Silver, Oil and any asset not backed by hopium and delusional are the safest and smartest assets to own. Treasury bonds are the dumbest. As the cliff approaches staying in cash becomes riskier because being able time the market and switch to something safe before the fall requires greater control and knowledge.

Great interview, for lack of better terms.

The cliche kicked can has been declared roadkill.
http://images.search.yahoo.com/images/view;_ylt=A0PDoYDFzudPNhQAdaiJzbkF;_ylu=X3oDMTBlMTQ4cGxyBHNlYwNzcgRzbGsDaW1n?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dflatened%2Bcan%2Broadkill%26n%3D30%26ei%3Dutf-8%26y%3DSearch%26fr%3Dw3i%26tab%3Dorganic%26ri%3D2&w=640&h=625&imgurl=farm3.staticflickr.com%2F2331%2F2216610838_a87c98a405_z.jpg%3Fzz%3D1&rurl=http%3A%2F%2Fwww.flickr.com%2Fphotos%2Fpaulmdt%2F2216610838%2F&size=337.4+KB&name=%5Bfilm2007-30-38%5D+Fetcham%2C+Tuesday+1st+January+2008+%2810%3A47%29%2C+Pentax-A+28mm+lens%2C+Fuji+Pro+800z+film%2C+1%2F125%2C&p=flatened+can+roadkill&oid=b5358526a1099108fa9b30217af77ef3&fr2=&fr=w3i&rw=flattened+can+roadkill&tt=%255Bfilm2007-30-38%255D%2BFetcham%252C%2BTuesday%2B1st%2BJanuary%2B2008%2B%252810%253A47%2529%252C%2BPentax-A%2B28mm%2Blens%252C%2BFuji%2BPro%2B800z%2Bfilm%252C%2B1%252F125%252C&b=0&ni=140&no=2&ts=&tab=organic&sigr=11gac552f&sigb=13j7k4s5j&sigi=11s3m7ovv&.crumb=8PMmjTyfIkN

[…] was the gold market and where it’s headed. The transcript of the interview is shown below. The audio may be heard here. (Rick is interviewed in segment […]

Dennis,
Geeeeeeez, NO KIDDING! Funny and gross at the same time.

Finished listening to the whole weekend show today. Great stuff! Hope people are opening their minds. You certainly found people that can and will think outside the box.

That local currency? I’d like to hear more. Can you get the county or a city manager on?

“The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators was probably the prime cause of the revolution.” Benjamin Franklin, Founding Father.

We were in The Temple Bar Sunday and saw Dave Browne together with Sharon O’Brien, Clare Peelo and Jenny Duffy pliyang. It was marveless.Back in the Netherlands I followed Dave on my laptop.Congratulations with this record of gitar play. We enjoyed it very much to be in the Temple Bar with all the music, the gitar play and especially the record by Dave.Love from Hans & Antoinette.