Tags
Austrian school, banking crisis, banks, bear market, bear stearns, bull market, central banks, deflation, depression, economic, economic trends, economy, financial, futures, gold, inflation, market crash, Markets, physical gold, precious metals, price, price manipulation, protection, recession, risk, run on banks, safety, silver, sovereign, spot, spot price
So what
’s wrong with gold? Why has the price not skyrocketed? Do you remember the day when Bear Stearns failed? Do you remember what happened on that day with gold? It spiked up to $1032 per ounce and marked its highest intraday price ever (in nominal price terms – remember, the inflation adjusted high would be in the $2300 per ounce range)…
Dare Something Worthy Today Too! 
I am including a comment from (seeking alpha user 224899), because I think he is really on to something here…
GOLD PRODUCERS LIKE BARRICK AND KINROSS COULD SELL THEIR GOLD DIRECTLY to buyers who want physical gold, not paper. If that were done, Joe Blow would be bidding against central banks and options traders for real gold, and the market for physical gold would overwhelm the paper market. THIS WOULD RESULT IN GOLD BEING TRADED AT THE REAL PRICE FOR PHYSICAL GOLD RELATED TO SUPPLY AND DEMAND.
Rather than buying CREDIT SUISSE or ENGLEHARD bars of gold or silver, the gold producers could refine and “package” their gold, and you could then buy BARRICK 0.9999 PURE GOLD BULLION bars with a Barrick stamp on them. Kinross and Gammon and Yamana could do the same thing.
If this were done, the profits and share prices of gold miners would skyrocket, and gold would be trading at $2500 to $5000 an ounce during this market crisis. It would also make paper option trading in precious metals obsolete, to the advantage of the entire world economy. Eventually, a similar end to paper trades influencing the value of of other commodities, like agricultural products and housing products that we all have a real need for, to everyone’s benefit.
The safe haven in precious metals would be a real safe haven, and the ultimate result would be that corporations that actually did or made somethig with intrinsic value would survive while “money-for-nothin… corporations” would be weeded out.
The ultimate end that this market crisis must eventually wind up with is a contracted US economy and a contracted world economy that assigns value to resources and commodities that satisfy basic needs, and devalues things that people don’t actually need. The US economy has, since the 1970’s, been based on consumers spending money on shoddy foreign-produced products that satisfy no basic needs, at the same time that excessive regulations and ridiculous liability exposure chased most corporations trying to do or make anything with intinsic value overseas to escape the impossible challenges of operating in a country with too many trial lawyers and too many elected lawyer politicians. The direct sale of gold from gold producers to gold buyers would start the process of correcting the misguided path we’ve been on for 40 years.
LikeLike