Happy Anniversary

263
Mon, Aug 15, 2011 - 10:31am

In case you missed it, today is the 40th anniversary of the decision by the great republocrat criminal, R. Milhous Nixon, to remove the U.S. from the "gold standard". The Turd was only five when it happened so I cannot be held responsible for my inaction.

Nixon Ends Bretton Woods International Monetary System

I wrote about this some time ago. For your enjoyment, here's a link:

https://tfmetalsreport.blogspot.com/2010/12/preparing-accordingly.html

OK, enough of that. All of the commodities are up this morning but gold is down. That is about to change so let's get started. We have a few things to cover.

First up, gold. In January, near the bottom of a nasty correction and with gold near 1340, I gave you "1600 by 6/10/10". When the call came up either $22 short or six weeks early, depending on how you look at it, I took a rash of sh*t from people who, apparently, expect perfection. Several weeks ago, when gold broke through 1600, I gave you "1800 by Halloween". That seemed to work out pretty well. Hmmmm. Lots of crickets out there. Now, I'm on the line with "$44 silver by Labor Day". Lord help me if silver only makes it to 43.92. Anyway, back to gold. As you can see on the chart below, it is clearly forming a short-term bottom. It has twice tested and held key support between 1725 and 1730 and has since gone flat. This won't last long. Your first clue that gold is heading back to 1800 will be a breach of 1750. Watch that level closely.

Silver faces a moment of truth later today. It is getting ever-so-tightly wedged into a pennant. All signs point to silver breaking UP and out of the pennant. The fundos are extraordinarily strong and on a short-term basis, all of the other "commodities" are up today. Watch the 39.50 level for clues.

Lastly, I found this earlier today on ZeroHedge. As you know, I have a penchant for historical trends and patterns. As Shakespeare said, "what is past is prologue". In the case, the author has found some startling similarities between the current day U.S. and the late stages of the French monarchy. Before getting started, I suggest a stout cup of coffee or some other mental stimulant. Though the information is well-researched, I found the manner in which it is presented to be somewhat challenging. But, what do I know? I'm just a turd.

https://www.zerohedge.com/news/sun-chairman-whats-future-prologue-and-why-second-french-revolution-coming-america

At any rate, here's the paragraph the bast relates to what we do here. If you're still living in some dream world where you follow the "stock market" in the hopes of growing your "retirement account", the passage below should help raise you from your slumber:

"Painted in oscillating shades of red and green on our dealing screens, we can also see the full, epileptic frenzy of our broken financial markets, no longer evidence of the rational allocation of hard-spared capital to the enriching process of patient and diligent entrepreneurship, but a wild, computer-driven video arena where countless billions swarm into and out of the sea of tickers from one micro-second to the next, with each successive ebb and flow of this leveraged flood further reducing the informational content of the associated prices and so defeating the very purpose of the capital market itself."

I have lasts of 1745 and 39.51. It's going to be a very interesting day. More later. TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  263 Comments

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Eric Original
Aug 15, 2011 - 9:57pm

Irene

Short term cap gains are the same as ordinary income, whether gold or anything else. Long term cap gains is where you can get lower rates, depending on your bracket, but not on "collectibles"!! "Collectibles" includes gold and silver, and have their own LT cap gains rates. Essentially the same as ST cap gain rates except no higher than 28%.

FogHorn LegHornNick Elway
Aug 15, 2011 - 9:55pm

Double post oops.

Double post oops.

FogHorn LegHornNick Elway
Aug 15, 2011 - 9:53pm

FOFOA

Although the free gold gets alot of discussion I have to state I don't get it. I have no desire to to wade through pages of wordy extra complicated musings designed to explain a concept that should be able to be put forward in two or three paragraphs. I say, I say, spit it out, spit it out Boy, Yo gumms is flappin but nuthins comin out. I ' ve seen the condesending manner in which any questions, posed are responded to and the gold only, no silver as money thing puts Me off. Thoughts? Ta.

Irene
Aug 15, 2011 - 9:46pm

Hi Eric!!!

Glad you're happy with Ameritrade. Sometimes I think it's nice to have some human voices to talk to now and then even if it costs a few bucks. Now I gotta go do some serious due diligence on those gold stocks.

I'm going to get me some of those hams before the sales up! You got me so psyched I started comparing Danish to Polish hams while visiting my mother. This is some bad habit.

latcho
Aug 15, 2011 - 9:45pm
Nick Elway
Aug 15, 2011 - 9:44pm

Taxes on sale of bullion

https://www.ehow.com/list_7454178_income-consequences-selling-silver-bul...

According to this, it is treated as a collectible. Long and short term definitions apply, peak tax is 28 percent on a long term gain in a high tax bracket..

Dittos to KenKlave. Lobby for No Tax on trading between bullion and fiat!

kenklave
Aug 15, 2011 - 9:40pm

Revaluation

If gold is to be revalued, there is no reason to stop at 12,500. I would go for $50,000 or $100,000. The point of a gold revaluation is twofold. First the gold could be utilized to extinguish debt. Second it could be used to back the dollar or whatever new currency replaces the dollar in order to give confidence to the currency. If gold is used to support a currency, the govt would want a high price. In sum gold will be used to recapitalize the global system. There is no ceiling on the nominal price. And if youre a creditor of the US, would you rather be paid in gold priced at $100,000 per oz. Or increasingly worthless paper money. It won't even seem like a hair cut to some creditors - they would be happy to take the gold. As for taxation on US citizens, there really is no need. The revaluation of gold serves to extinguish the government's foreign debt. There need't be any income derived from confiscating citizens wealth. Besides private citizens will need to be recapitalized too. Citizens have debts they need to extinguish. Capital gains could be dropped altogether on gold to the great benefit of US gold holders. Of course because this could solve many problems in no way means it will be adopted. The US will wring every las drop out of the dollar. Fiat money on a global scale is a power they will not give up until they must. But the dollar's days are numbered and in the transition the US is situated nicely concerning gold. The issue with taxes is whether gold is held widely enough at the transition that it will be popular to drop the cap gains taxes. If not you can be assured that there will be heavy resent,net against the gold holders by those who have none. Similar to the animosity many have against the "rich" today. If this is the case gold will be taxed very heavily. Keep in mind Europe has no vat on gold. They are not stupid. It is a tremendous benefit for noy only the govt to hold gold, but the people as well. The us would be wise to follow suit.

Eric OriginalBohemian
Aug 15, 2011 - 9:40pm

Bohemian

Hey no problem! At your convenience.

OMG you guys. Another Turdling with Pork in the oven! Let's all head over to Bohemian's place! Just make up a few more of those dumplings, we'll make it work!

Irene
Aug 15, 2011 - 9:34pm

GoodDoc

28%? Actually, I did see something about that, but do you know if it is for short term only? Any for long term that you know of?

Eric OriginalIrene
Aug 15, 2011 - 9:33pm

Hi Irene!!

​I use TDAmeritrade. I've been happy with it, but I don't have any basis to compare others. It's all I've had for years and years.

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