Is this guy a member of DU?

[formercia]

If not, he should be.

http://www.marketoracle.co.uk/Article19888.html

[EFerrari]

1. Sounds like Robb to me.

:)

[JeffersonChick]

5. Thanks for that most excellent link! :)

[formercia]

17. You're very welcome.

:hi:

[formercia]

8. It does have a familiar ring to it.

:hi:

[HipChick]

2. K&R! a must read...

[Warpy]

3. He kind of goes all over the place

and what he didn't point out should be the biggest warning sign to all those working class gold bugs: gold has risen far faster than the rate of inflation.

Yes, Virginia, there is a bubble, a very big one.

Also, you can always tell when a market has run its course. They start making all sorts of deals so the working class can get into it. That means it's gone as far as it can go and they're looking for a bunch of suckers to leave holding the bag when the big money suddenly pulls out.

(never mind Mr.and Mrs. America are likely getting their gold bars well salted with tungsten)

[formercia]

4. Not only Gold Bars, my friend:

http://www.tungsten-alloy.com/en/alloy11.htm

These guys will make it to order.

[Warpy]

6. yeah, you just know those "gold" commemorative coins

are not what they are pretending to be.

Fools and their money...

[Sheepshank]

7. OTOH

Glenn talking his sheeple...errrr....groupies......errrr....avid listeners into buying gold while it's 'high' can only result in some eye opening, rip off realization and frustration when they try to sell and it is on the 'low'. If they haven't learned any lessons from the housing bubble and all those upside down mortages, I suppose they are doomed to repeat history. Capitalism at it's best, I'd say.

[formercia]

9. The un-recers are busy tonight.

Some people just can't take a little criticism.

[Richard Steele]

13. Those pathetic little cowards are busy every night. How SAD is that? nm

[formercia]

19. I wonder if they get paid a bounty.

But, then, just the reward of being an asshole is good enough for the most of them.

[NC_Nurse]

10. Great article. Thanks!! I've bookmarked the authors list of articles for later reading!

[BrklynLiberal]

11. Excellent article...Loved the Glen beck truth serum bit..BTW..I saw an ACTUAL goldline ad at the

top of the article...it said "ads by Google"..and there were other ads for gold buying that looked real at the bottom of the article.

[formercia]

26. I noticed that too.

It's probably the number of times the word Gold appears in the article that keys the ad.

[femrap]

12. k and r

I really enjoyed reading his rant.

I never wanted to own bars of gold...they're so damn heavy. And if you were carrying them around, people would notice that you were really sweating and you must be carrying that damn heavy gold....so they steal it from you.

I'd rather have liquor and cigs as an investment when The Crash hits. Chocolate, too.

[formercia]

14. Toilet Paper, Soap, Guns and plenty of ammo.

Staying clean and healthy is important.

[femrap]

21. Yes...good

ideas. Bleach and some white vinegar...fairly cheap and wonderful cleaners. I also like Simple Green...it's non-toxic. I'll add these to this week's grocery list.

[formercia]

28. Multivitamins

It doesn't make up for a poor diet, but it helps.

It's a very good investment.

[Greyhound]

16. Or as Nouriel Roubini points out, "If you're really concerned about that kind of crash,

you should be investing in Spam®".

Personally, I'd add grains, seeds, and ammunition.

[femrap]

22. More good ideas....

I remember having Spam sandwiches packed in my school lunch as a child. With mustard...yum! Who knew?

I like Roubini. I get his daily 5.

[formercia]

23. Now is a good time to try items that don't need refrigeration.

The approach we use, is to select food items that store easily and that we use in our day to day routine. We rotate the stock to use the oldest items first and try to keep at least a six week supply on-hand. Our garden supplies most of our fresh vegetables during the growing season, and Winter Squash, Potatoes, Carrots and Onions last well into Spring. Any leftover Onions get planted as soon as the ground thaws to supply fresh greens.

We are trying to re-learn how to live before there was refrigeration and Supermarkets. It wasn't that long ago. In the 50's, we lived in a fairly remote area of Quebec Province. That's how people lived there. Store bought fresh items were a novelty.

[OffWithTheirHeads]

15. Yeah but the best part is that all the freeps are blowing their

nest eggs on overpriced Gold sold to them by their most trusted hacks.

[formercia]

18. That was my thinking too.

The freeps don't realize that the boys consider them just a bunch of chumps to be used and abused at will.

[mopinko]

20. you know, sadly, i think thom hartmann is doing this as well

i love thom, but those gold commercials he does make me wonder about him.

[formercia]

25. He's just the other side of the coin

IMHO

[Truth2Tell]

24. I've been reading this guy's blog off and on for quite awhile

He almost always nails it IMO.

[Art_from_Ark]

27. This blog seems to jump from point to point and is difficult to follow

But the gist seems to be "gold is bad because Glenn Beck and Goldline are plugging it".

The blogger states that the US dollar has "intrinsic" value because the US is an empire, while gold has no intrinsic value, which flies in the face of 5000 years of monetary history. Among other things, the writer is confusing "intrinsic" with "extrinsic".

Since the invention of money, gold bullion has always had value based on the amount and purity of the gold. That is its intrinsic value. Theoretically, it doesn't matter whether it's in the form of a one-ounce bar produced by Credit-Suisse or Johnson-Matthey, a one-ounce US Gold Eagle that carries a face value of $50 US, a one-ounce Canadian Maple Leaf that carries a face value of $50 Canadian, or a one-ounce Krugerrand which carries a face value of, well, one Krugerrand.

On the other hand, paper money of the United States (and every other country in the world today) has essentially no intrinsic value-- that is, the value of the paper itself is next to nothing. Everything else being equal, a paper one-dollar bill has the same intrinsic value as a paper hundred-dollar bill, which has the same intrinsic value as a $100-trillion note from Zimbabwe or a 500-billion dinar note from Serbia. What differentiates them is their extrinsic value-- the value above the material they are made of. The extrinsic value of the Zimbabwe and Serbian notes is now officially Zero, due to hyperinflation and subsequent demonetization resulting from overprinting and lack of confidence in the issuing authority.

The current run-up in gold price is not the work of Glenn Back and his ilk. If it were that simple, gold would not have been in the doldrums for most of the 1990s. Instead, it is the result of several factors that are currently in play around the world. I will cite three of the most influential factors here. First and foremost is the fact that most of the world has had experience with paper money that more closely resembles that of the Zimbabwe/Serbia experience than the US experience (that is, severely declining extrinsic value due to overprinting and lack of confidence in the issuing authority). Second is the fact that (for the time being, at least), the European central banks are not manipulating the gold market as they have in the past. Third is the emergence of big new buyers such as China and India, which are well aware of the risks inherent with paper money.