Gold: Past, Present, and Future

Taylor Robinson51 said:Gold should be a component of every investment portfolio at a specific percentage; obviously, one shouldn't hold everything in gold. Take Brown's permanent portfolio, for instance, as an example of a portfolio designed to withstand various shocks.

Extrapolating the future based on data from 1980, 1999, 2012, or 2017 is nothing more than palm reading. A massive amount of real estate investment leading up to 2008 was built on models that axiomatically assumed property prices could never fall because they hadn't fallen globally in 70 years in the USA. Then, predictably, it happened—prices plummeted to US levels.

The notion that active investing can prevent losses was actually the catalyst for the great crash of 1987—everyone introduced trading machines that automatically triggered sell orders once a margin call was initiated. When distortions occur during a panic, absurd things happen. For example, in 2008, a money market fund fell below the dollar, which was considered virtually impossible.

To quote Warren Buffett from his recent letter to investors regarding why he holds $120 billion in short-term US Treasuries:

"During the 2008-2009 crisis, we liked having Treasury Bills that protected us from having to rely on funding sources such as bank lines or commercial paper. We have intentionally constructed Berkshire in a manner that will allow it to comfortably withstand economic discontinuities, including such extremes as extended market closures."

And what about going all metals or all paper? Metals...
Stocks can crater by 90%. Long-term bonds? They can do pretty much the same thing.
That isn't happening to gold.
But fine, the point is that holding almost any commodity—including various energy forms—is better than being stuck with paper and fiat. You could pick copper, oil, palladium, or gas, to name a few. Generally speaking, commodity price levels are quite low right now. No one is arguing against owning the corresponding stocks, either. In fact, I'd encourage it.

gold seeker


When you sit back and watch this video, it really makes you wonder what kind of energy people pour into their work. Think about the sheer scale of the excavation and the logistics required just to get all of this concentrated in one single spot. It reminds me of how mice tirelessly tunnel beneath the surface; you have to ask yourself, what happens once we’ve tunneled through everything there is to find?

Is there truly no alternative way to establish trust and determine value?

It isn't just about digging up gold and shipping it off—after all that work, they go through the whole refining and shaping process just to shove half of it right back underground into some Federal Reserve vault 😵

Lipa, Beppe Grillo actually raised this point way back in '99. Like, what the hell is the actual point of gold, and why do banks even bother holding onto it? Why are we busting our backs pulling gold out of one hole in the ground (a mine) just to stuff it into another hole (a basement vault)? Honestly, it’d be way more efficient to just build the bank right on top of the mine 😁



*I can't seem to track down a version of this video with subtitles for those of you who don't speak Italian

mistyotter44 said:gold seeker

When you sit back and watch this video, it really makes you wonder what kind of energy people pour into their work. Think about the sheer scale of the excavation and the logistics required just to get all of this concentrated in one single spot. It reminds me of how mice tirelessly tunnel beneath the surface; you have to ask yourself, what happens once we’ve tunneled through everything there is to find?

Is there truly no alternative way to establish trust and determine value?

There is—"digital gold" exists for "trust," and its value is dictated by the market just as much as physical gold is.

The eternal optimist Bill Gates, a man sitting on nearly $100 billion, is doubling down on his prediction:

http://www.businessinsider.com/bill-...-coming-2018-2

Time to gear up.

Let’s be honest—the current monetary system is fundamentally broken. It’s built on a foundation of unsustainable debt that simply cannot be repaid—period. A total systemic "reset" isn't just a possibility; it is an absolute mathematical certainty, much like the various financial collapses we've witnessed throughout modern history.

The real question—and the one everyone seems to be ignoring—is how this transition actually happens. One theoretical path involves a massive international agreement to consolidate major global currencies and pivot back to a gold standard. Of course, such a move would inevitably send gold prices skyrocketing.

So, I have to ask: how realistic is this scenario, really? And more importantly, what kind of astronomical price point for gold would it take to actually make this work?

While Trump rolls out his steel and aluminum tariffs, the banking sector is busy issuing warnings:



"Trade deals are complicated," apparently.

Absolutely

The USA is essentially a powder keg when it comes to banking infrastructure (Fedwire and all its dependencies)

And just like I dumped my USD holdings a few years back, I’m feeling this sudden, nagging urge to do the exact same thing with everything short-term denominated in euros. There are a few reasons, I suppose: grabbing a decent exchange rate while it lasts, setting up a new greenhouse and a soup kitchen project, picking up some metals, and then just parking whatever is left in a third currency to sit and wait out the storm. I’m a total non-crypto person—honestly, I don't have the stomach for the volatility of the crypto markets. If things go south, I'll just have to start from scratch.

It’s definitely risky business given where inflation is sitting right now.

There is just so much about the euro and the USA that keeps me on edge.

Andrew Barrett4 said:Absolutely

The USA is essentially a powder keg when it comes to banking infrastructure (Fedwire and all its dependencies)

And just like I dumped my USD holdings a few years back, I’m feeling this sudden, nagging urge to do the exact same thing with everything short-term denominated in euros. There are a few reasons, I suppose: grabbing a decent exchange rate while it lasts, setting up a new greenhouse and a soup kitchen project, picking up some metals, and then just parking whatever is left in a third currency to sit and wait out the storm. I’m a total non-crypto person—honestly, I don't have the stomach for the volatility of the crypto markets. If things go south, I'll just have to start from scratch.

It’s definitely risky business given where inflation is sitting right now.

There is just so much about the euro and the USA that keeps me on edge.

People are already singing that old folk song about reckless gamblers, just with a modern twist:

"They say it's easy for any trader to win,
But if it were truly easy, everyone would be a trader."

P.S. What exactly would you consider a "third" currency?

I'm not entirely certain yet.
It isn't the dollar or the euro, which is why I'm looking at a third option.

Swiss 😁

Amanda Allen4 said:Let’s be honest—the current monetary system is fundamentally broken. It’s built on a foundation of unsustainable debt that simply cannot be repaid—period. A total systemic "reset" isn't just a possibility; it is an absolute mathematical certainty, much like the various financial collapses we've witnessed throughout modern history.

The real question—and the one everyone seems to be ignoring—is how this transition actually happens. One theoretical path involves a massive international agreement to consolidate major global currencies and pivot back to a gold standard. Of course, such a move would inevitably send gold prices skyrocketing.

So, I have to ask: how realistic is this scenario, really? And more importantly, what kind of astronomical price point for gold would it take to actually make this work?

If that were the case, most nations would face bankruptcy overnight—with the USA leading the charge. Let's be honest: the gold standard was abandoned specifically to allow governments and politicians to run up unchecked debt. For bankers, the current setup is their version of a golden era.

Why would anyone reintroduce a gold standard when the current one is already working perfectly for the banking elite?
And let's be clear: there isn't even a theoretical way to bring back anything resembling a gold standard. To do so, you would need one of two things to happen:

1) Every single politician on the planet decides to unite against the bankers.
or
2) Every banker in the world agrees to walk away from their massive profits in the name of "social solidarity."

Pick your poison. Which of those two scenarios seems more likely to you?😁

Jim Willie notes:

https://www.silverdoctors.com/gold/g...old-in-london/

"Loose threads, yet somehow the seam holds."

The people over at silverdoctors.com are doing more harm than good. It’s just a breeding ground for charlatans peddling conspiracy theories about flat earth and vaccine conspiracies...

Look, I am pro-Goldman Sachs. In my view, anyone looking to invest or save should hold a specific percentage in gold. But honestly, seeing sites like silverdoctors.com or kingworldnews.com makes me sick...

Taylor Robinson51 said:The people over at silverdoctors.com are doing more harm than good. It’s just a breeding ground for charlatans peddling conspiracy theories about flat earth and vaccine conspiracies...

Look, I am pro-Goldman Sachs. In my view, anyone looking to invest or save should hold a specific percentage in gold. But honestly, seeing sites like silverdoctors.com or kingworldnews.com makes me sick...

I'm with you on that. But let's be real, none of them can even touch Bo Polny. Everything else is just amateur hour.

Taylor Robinson51 said:The people over at silverdoctors.com are doing more harm than good. It’s just a breeding ground for charlatans peddling conspiracy theories about flat earth and vaccine conspiracies...

Look, I am pro-Goldman Sachs. In my view, anyone looking to invest or save should hold a specific percentage in gold. But honestly, seeing sites like silverdoctors.com or kingworldnews.com makes me sick...

Vaccines are harmful? Honestly, it's embarrassing how terrified they are.
That’s how thoughts drift out of your head, if you ask me. Whether consciously or not.
Goldman Sachs? Not a bad move. But we're already looking at $2,500 an ounce. If my silver hits roughly $100, how much would gold actually need to jump in USD terms to keep pace? At $50 an ounce, I'm already well-protected in terms of long-term purchasing power. Keep in mind both gold and silver act as hedges against the Federal Reserve, and with the global crisis, the Euro should strengthen against the dollar. So, what's $7,000 an ounce in Euros? Let's call it $4,000. You aren't doing poorly, but it isn't quite there yet.
Bottom line: Silver Doctors is an excellent newsletter for the middle class—something worth reading daily.
Kevin? He's just sitting there while Elon describes it as nothing more than a casino or gambling...

"Push the button and pray."

Drew Ramos77 said:If that were the case, most nations would face bankruptcy overnight—with the USA leading the charge. Let's be honest: the gold standard was abandoned specifically to allow governments and politicians to run up unchecked debt. For bankers, the current setup is their version of a golden era.

Why would anyone reintroduce a gold standard when the current one is already working perfectly for the banking elite?
And let's be clear: there isn't even a theoretical way to bring back anything resembling a gold standard. To do so, you would need one of two things to happen:

1) Every single politician on the planet decides to unite against the bankers.
or
2) Every banker in the world agrees to walk away from their massive profits in the name of "social solidarity."

Pick your poison. Which of those two scenarios seems more likely to you?😁

Under the Woodrow Wilson agreement back in 1944, the Federal Reserve was pegged to gold, while all other global currencies were pegged to the dollar. That agreement meant trade imbalances were settled at year-end through actual gold payments.

By the early 70s, the USA had racked up a massive trade deficit and simply refused to pay up in gold—instead, they unilaterally decoupled the dollar from the gold standard. Since the Federal Reserve was the world's reserve currency, they could pull that stunt without any consequences whatsoever. The fallout? We are left with this uncontrolled, unsustainable monetary mess that will eventually—sooner or later—require some kind of reckoning.

The point isn't about what kind of money governments *want*; it's about what kind of money they *must* have in the future to prevent a total monetary collapse.

I was merely suggesting that returning to a gold standard—which worked perfectly fine for thirty years—is one potential way out.

Given the sheer mountain of cash currently in circulation, implementing a gold standard would send gold prices skyrocketing, but that's irrelevant to how the monetary system itself functions. Only those who already hold the gold would see the profits.

"Quote:"

Amanda Allen4 said:Under the Woodrow Wilson agreement back in 1944, the Federal Reserve was pegged to gold, while all other global currencies were pegged to the dollar. That agreement meant trade imbalances were settled at year-end through actual gold payments.

By the early 70s, the USA had racked up a massive trade deficit and simply refused to pay up in gold—instead, they unilaterally decoupled the dollar from the gold standard. Since the Federal Reserve was the world's reserve currency, they could pull that stunt without any consequences whatsoever. The fallout? We are left with this uncontrolled, unsustainable monetary mess that will eventually—sooner or later—require some kind of reckoning.

The point isn't about what kind of money governments *want*; it's about what kind of money they *must* have in the future to prevent a total monetary collapse.

I was merely suggesting that returning to a gold standard—which worked perfectly fine for thirty years—is one potential way out.

Given the sheer mountain of cash currently in circulation, implementing a gold standard would send gold prices skyrocketing, but that's irrelevant to how the monetary system itself functions. Only those who already hold the gold would see the profits.

It’s a common misconception that Nixon ditched the gold standard just to manage the trade deficit. In reality, he did it because he needed a way to foot the bill for the war in Vietnam. That part is pretty much common knowledge by now.

US Debt Clock:20,961,156,300,300

"From 20 down to 8 thousand tons"

The veteran Theodore Butler lays out the essential details:

http://www.24hgold.com/english/news-...heodore+Butler

"Total meltdown"