The Fiat-Conversion Price

And this matters how? And why, exactly, do you care? Seriously. You need to ask yourself those two questions.

Look, never forget that the point of of this entire endeavor is "preparation for the end of the Great Keynesian Experiment". Part of that preparation is the accumulation of physical precious metal. Gold to protect your worth and wealth. Silver to protect you ability to acquire everyday necessities.

Do you believe that the current global financial system is now so malignantly flawed that it will not survive? Do you believe that beacuase the U.S. government is so overwhelmed with debt, current and future, the U.S. dollar is doomed as a global reserve currency? Are you fearful that global governments, in their futile attempts to maintain power will stop at nothing, economically and militarily, to avoid collapse and that these efforts will ultimately lead to war, insurrection, massive price inflation and civil unrest? If you answered "YES" to any of these three questions (and I suppose you did), then you should continue to BUY precious metal. Selling metal and converting it back into fiat is simply out of the question. Most of all:

If you answered "YES" to any or all of the questions above, why in the world do you care right now if gold is $1610 and silver is $29.50?

I ask this with all sincerity. Again...why do you care? You should be rejoicing at the opportunity to add metal at these prices. Last spring, it took nearly $5000 to buy just 100 ounces of silver. Today, that same $5000 will buy you 170 ounces. Hooray! How fortunate are we?!? The absolute sham of the current Comex/LBMA system has allowed everyone this extra time to buy/add metal. Please don't waste this opportunity! Also, please take delivery and store your metal somewhere safe.

Please indulge me to state this as clearly and unequivocally as possible:

DO NOT CONVERT YOUR METAL BACK INTO FIAT CURRENCY. BY DOING SO, YOU WILL SACRIFICE THE ONLY FINANCIAL INSURANCE AND PROTECTION YOU HAVE AGAINST THE COMING COLLAPSE. CONTINUE TO USE THIS AND ALL FUTURE PERIODS OF PAPER PRICE WEAKNESS TO PURCHASE ADDITIONAL METAL AND TAKE DELIVERY.

I provide technical analysis of the gold and silver markets solely to draw attention and readers to this site so that I might warn as many as possible. I will continue to do so, regardless of the criticism of TA in general. Though the current precious metals markets seem to have been fundamentally changed by the MFGlobal disaster, underlying demand for physical metal will continue to make TA a useful tool. To that end, I present today these two charts only. In gold, the long-term trend is still intact and, as you know, I'm a big believer in the long-term trend. In silver, you can plainly see that the "right shoulder" is being carved in a pattern similar to the "left shoulder" last fall.

Now, before you leave my site today, I want you to read this extremely important piece of analysis and then come back:

http://www.alt-market.com/articles/765-economic-alert-if-youre-not-worried-yetyou-should-be

You should also read the latest from Jim Quinn:

http://www.theburningplatform.com/?p=33800

And this nugget from Mike Krieger:

http://libertyblitzkrieg.com/2012/05/07/watch-bill-gates-stutter-like-a-moron-on-gold/

I'm going to stop here. After being out all day yesterday, much stuff has piled up on my desk and demands my immediate attention. I'm sure I'll be adding thoughts to the comments all day so please be sure to check them from time to time. Hang in there. Keep the faith and go add to your stack. TF

167 Comments

Xty's picture

last

last but not on purpose!

Torpedo Fish's picture

CNBC

Cartel's encrypted message to all elite - BUY GOLD NOW, THIS IS THE BOTTOM.

We are unable to push gold's price much lower, so now is the time! 

Also try to convince goyim that gold is:

1) useless metal;
2) going to be worthless soon; 
3) currently in a bubble ready to burst;
4) very bad investment according to 'gurus' like Buffet etc.;
5) etc.

Tube's picture

last

I'm last again XTY.  He he he.  ;-)

DBean's picture

Girls and Guns

California Lawyer...I usually love your comments but as an "old lady" this one stung a little. You might start by calling her something a little nicer.  (I know you might have meant that as a joke..but, geez...)

Start with a beautiful shotgun. Bought my SXS 12-gauge about 8 years ago..it's beautiful and I love it. Just added a SXS 28 gauge...not quite as beautiful but a little less kick for an "old lady". MOST IMPORTANT..take her and the gun to an expert gunsmith and get it sized for HER. 

Almost as important...No lessons with know-it-all husbands and their know-it-all friends. Look for someone who is good working with women...there are some differences. I also bought some of Gil and Vicki Ash's books and videos. I like their method and I learned how to shoot okay for a girl after a couple lessons from a good instructor and the Ash's information.

Try sporting clays..it's a blast. It's like golf with guns. (After she gets comfortable at a trap..trap is easier).

I could add that I started with the hunting puppy...everything else followed. Bird hunting is what I decided to take up when the kids left, the foofoo dog died and my husband and I were left staring at each other.  We've had some great fun and good trips out west for an old lady (and old man, HA)..but, I had to work my way through some of the above mistakes. I'm not so keen on the other guns but do love my shotguns.

TechTrade's picture

Plenty of Gains

If you're playing the short sides.  But the best entries do come overnight, getting short at 2-3 AM and covering between 8:30 - 10 AM.

TechTrade's picture

A Better Place for your money

A better place to put your money? 

Well, stock market for one.  While gold has dropped from 1900 to 1600 since September, the ES has risen from 1100 area to 1400 (now 1350).  How about beans, from 1130-1185 in October - December to 1500 last week.  

How about short natural gas?  From 4.4 last September down to 2.  

How about short silver from Turd's famous $44 by Labor Day prediction?  In 1 month it dropped from 44 to 26.  

Lots of opportunities for your money, if you're not locked into drinking the BTFD gold / silver kool-aid mantra.   

Weekly chart points to gold having the possibility of dropping to 1525 to 1465, and silver to 27.4 to 25.4.  It ain't pretty.

But, it is reality.

John Galt's picture

@SE - I Have an Idea - I Wonder...

With all due respect, SE, give your head a shake.

For starters you treat all Native Americans as one homogenous group, as if they're all going to think and act the same. Just like any other group they are made up of individuals, and not all deserve to be treated with the levels of suspicion you raise.

On that note in a SHTF scenario it's nearsighted to think that all Natives are going to seize on the opportunity to go after your stuff, such as land. It is this kind of narrow minded thinking which has driven our glorious economic system to where it is today, now running full throttle to the edge of the precipice.

As for the Natives themselves I should point out that there are many elders from older tribes such as the Hopi who have been warning us for years of the dire consequences of continuing our destructive ways as a civilization. Most of these warnings have fallen on deaf ears, and it has been said that we will all soon learn that we cannot eat money.

In the 1990s one of these elders foretold of planes flying into buildings, as a consequence of continuing on the path we were on. But, then, I would doubt that there would have been many people taking that "crazy old Indian" seriously by actually listening.

Some years ago some elders from that same Hopi tribe in northern Arizona gave the following message to ALL members of Mankind. They are convinced a tipping point has been reached, and a great shift of change will soon be upon us.

I am re-posting it below for the benefit of anyone who wishes to hear it:

You have been telling the people that this is the Eleventh Hour.
Now you must go back and tell the people that this is The Hour.

        Here are the things that must be considered:

                Where are you living?
                What are you doing?
                What are your relationships?
                Are you in right relation?
                Where is your water?
                Know our garden.
                It is time to speak your Truth.
                Create your community.
                Be good to each other.
                And do not look outside yourself for the leader.

This could be a good time!

There is a river flowing now very fast.
It is so great and swift that there are those who will be afraid.
They will try to hold on to the shore.
They will feel like they are being torn apart, and they will suffer greatly.

Know the river has its destination.
The elders say we must let go of the shore, push off toward the middle of
the river,
keep our eyes open, and our heads above the water.

See who is there with you and celebrate.

At this time in history, we are to take nothing personally,   least of all
ourselves!
For the moment we do, our spiritual growth and journey comes to a halt.

The time of the lonely wolf is over.
Gather yourselves!

Banish the word struggle from your attitude and vocabulary.

All that we do now must be done in a sacred manner and in celebration.

We are the ones we have been waiting for.

Blessings and best wishes to all of you.

Bobbejaan's picture

I SING = Then I saw her Face-Value ... Now I'm a Believer

Quote:
Be Prepared said :-

It will take great fortitude to hold fast to a belief that few support or understand, but it doesn't alter it's validity and makes it all the more harder to endure. 

&

Many of us are looking for comfort that each step of the way will be clear as to what will be achieved at the end. That just isn't going to happen. You will be whipsawed in an ever increasing economic storm and the violent moves up, down and sideways will try to break you and throw you from your place..... This is by design, my friends. They will try to convince you are walking off a cliff with your beliefs because they want you to really walk off the cliff with the rest of our fellow citizens. This road absolutely sucks because it is wet and full of rocks..... our feet are wet.... and our clothes are thin, but we can survive and, more importantly, thrive by clinking tightly to the light of clarity.

There are no promises of becoming rich or having a great windfall, but a higher degree of freedom and an ability to start with more than most is blessing for all those that walked through the storm and came out the other side. Know what you know... and breathe it as the air you take within you now... you are here to prepare for an end of an Economic Cycle and to move through its havoc to its successor.

WISE words ... and GREAT advice for those who are feeling terrorised by the Vampire Scumbags.

.

As (hopefully) further comfort to those who doubt the path many here have chosen, I offer this small example from my own personal stacking/pension-investment past ...

In the late 1980s, as part of my RSA "chicken run preparations", I purchased a fair few of these Troyans as a bulk purchase :-

They cost me (EACH) just under the equivalent of this (= about £1.90 per Troy Ounce) :- 

 +++ 

I have only ever seen one of these Troyans for sale since .... which was last year (July 2011), and the guy sold it for this (£720)

 +  

 + 

 + 

.

In terms of "Physical Metal", Silver & Gold buyers & holders are EXTREMELY UNLIKELY to be "millionaires by this time next year, Rodney" as holding the metals is NOT a short-term "get rich quick" type of investment  ... but rather a Long-Term "safety thing" which would HOPEFULLY / PROBABLY return a SAFE "investment return" (or at the very least --> maintain the "value" of your wealth).

I KNOW which "House" I prefer to trust .... and it's NOT this one :-

.

As for the present "smackdown" situation for PM's (& oil) ... I view it as a short-term "Prelude to the Tsunami" due to the recent & ongoing Political Earthquakes

..... We are currently watching the metal-tide retreat out to the deep Political seas, where it is likely to build up into an almost irresistible Tidal Wave of Financial Destruction WHEN it eventually returns to the Financial Mainland with a vengeance.

.

Finally, I leave terrorised-victims & doubters with Two Important Points to consider & ponder :-

1) ... The Ark was built by amateurs (like us) ..... whereas the Titanic was designed & built by professional experts.

.

2) ... The Titanic was widely touted by all the "Professional Experts" as the safest & most unsinkable ship in the world ..... right up until JUST A FEW HOURS before it sank like a rock.

Hrunner's picture

David Rosenberg on Gold at 65th CFA in Chicago

65th Annual CFA Conference, Monday morning, May 7th

http://cfapodcast.smartpros.com/web/live_events/Annual/Panel/index.html

John Mauldin, Moderator,

David Rosenberg (chief economist and strategist at Gluskin Sheff + Associates Inc)

(54:24 into the panel discussion)

John Mauldin: "Rosie, question for you. Your singular expertise and god-like wisdom, tell us what your outlook on gold is (beside the fact that it's yellow)?"

David Rosenberg: "Well, okay, the most important determinant, or one of the most important determinants of the gold price are real short term interest rates. And so long as they stay negative, in most parts of the world, the secular bull market is going to remain intact. Its not going to be a straight line, we're going to go through multiple periods where it corrects, and it pauses. Those will actually be great periods to accumulate.

You have to normalize gold by something, right, I mean if you look at the stock market, so 'price-to-book', 'price-to-earnings', 'cash flow yields', you look at the bond market, you look at say real interest rates or the yield curve, we could debate that, but you have to normalize gold by something. And gold's complexion has changed over time, trading less as a commodity and more and more like a currency. But a currency of course that's no government's liability.

So you take a look at the total value of gold and you normalize by say global monetary base, or currency in circulation and then you invoke Bob Ferrell's rule number one, which is that ratios are inherently mean-reverting, I think that gold will ultimately go to, and I won't give a date, but I think the peak in gold will be $3,000 per oz before the cycle is over, either that or up until such time as I change my name from Rosenberg to Goldberg, then the story will be over"

Peace and stay frosty,

Hrunner

printmemoney's picture

@techtrade

rather than giving a history of where your money is put best to use....why not advise today

It's easy to point out these hindsight predictions that you are not on record for.  

Question:  What is today's best investment?

Bobbejaan's picture

The SHFE .... AKA The "Shit Hits Fan Exchange"

Quote:
Tailwind said :-

I am a relative newbie to all this, but I could not help but note the timing of this smash down in relation to two things: 1) the opening of the Shanghai facility for PM's and 2) the massive maneuvering of paper contracts on the Crimex in the weeks prior to this event. This is pure speculation on my part, but it seems to me that this move is part & parcel of an attempt to provide one last massive shake of the tree ('one last hurrah' if you will) prior to the end the Evil Empire's domination of the PM markets. Or am I just dreaming?

If you are dreaming ... You're NOT the only one wink

.

I have wondered the same myself many times over recent months.... perhaps it's a sign that the SHFE also coincidentally translates in my warped mind into the "Shit Hits Fan Exchange" devil

.

PS & BTW ... Welcome to the site ... Kindly try to avoid tripping over lemmings when walking near the cliff edge. wink

Bobbejaan's picture

You go, girl !!!

Quote:
Xty said :-

I am not a blood-thirsty person, despite my quick tongue - but one begins to understand why the peasants have been so revolting in the past, if you get my drift.

You don't have to go all that far back in the past, either ... I've been a pretty revolting peasant most of my life. wink

.

& BTW ... A pitchfork is better than a drift (= Revolting Peasant's Academy 101) devil

luv2stak's picture

WHY Fiat-Conversion Price Matters (To Me) Right NOW...

There has been so much rain this spring that the woods next to the house has grown tremendously, shading our garden spot. I want to have about 1/3 of of our backyard cleared of trees SO WE CAN GROW MORE FOOD!  Not GMO or pesticide-ridden cr*p -- organic, hyper-mineralized NUTRITION.  Like  goji.  For more self-sufficiency. And the wood can help heat our home for the next several years.

This is a large unexpected expense, but seemingly needful and not time-shiftable, and some stack needs to be sold off. At the lowest point, naturally.

FORECAST : So, look for LOW PRICES through the end of this week, and a B-I-G MAJOR UPSWING next week, say on Wednesday, right AFTER I sell a bunch to pay the tree guys....

Single handedly, I move markets.

You can thank me later.

SE's picture

Trees...

@lov2stak

Do not clear ALL of your trees.  Your trees will provide shade and pull up minerals from several feet under the top soil, depending on the soil composition.  You'll probably have to remineralize the topsoil if it's typical subdivision property.

SE's picture

@ John Galt

My apologies, but I wrote it to gauge people's reactions.  I side with the Native Americans, actually, as I am mixed blood and an Ancient (two characteristics of the latter  - linguistic isolation that shielded me from typical early language development past a certain critical age because of my deafness until nearly seven and a half, and lack of exposure to the idea of any religion until I was past eight years old).  And I ought to have spelled out that SOME Native Americans would be watching closely the events happening now, and then would inform the others who don't know that it would be time to move, especially those who are living in non-native cultures such as hispanic cultures.  My hope is that as many as possible are watching.  If anything, it is time that white society looked at itself and begin to question why its lifestyle divides people from each other, harms them, and destroys the earth, and perhaps whites can look at the Red path as a means of returning to the Earth and sanity in their lives.  We have to, or we'll lose the only home we have.

Kenscott's picture

Never "We Buy Gold" Shops If Possible

Interesting notes here, and I agree that the Achilles heel is for people to take physical delivery on their futures and the like.

As for selling my sterling and gold at a "We Buy Gold" place, I hope to never be in that situation. If I sell, my plans are Midwest Refineries or another reputable refinery that will smelt the metals and give a better price than can be gained on E-Bay or the like.
If I knew of a better method than the refinery, I would use that method.

Most of my sterling is in the form of jewelry, and I try to research my pieces to find the maker and history. Often, the maker and history make the piece worth much more than it's spot price. This can also hold true with gold sometimes but seems to be the exception to the rule.

Kenscott's picture

@PFFurn - Sorry to Hear This

I am sorry to hear that things are down for you as well.

Changing your business may not be feasible, but I would definitely try to see about
changing your investments if possible. In the long run, you may be able to take the
business hits but may not be able to take the investments hits.

I wish I could offer some wisdom to help make things better, but this is the best I can do for now.

Praying is always good and offers me hope when nothing else can.

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