Jim Rickards latest book "THE NEW CASE FOR GOLD"

SpacePete

SpacePete

Well-Known Member
Silver Stacker
"This excellent book proves that, contrary to the propaganda of fiat currency apologists, gold is real money. Rickards makes a compelling case for why those looking for a way to protect themselves and their families from economic chaos created by central bankers should consider gold."
Ron Paul, former Congressman and Presidential candidate


"The New Case for Gold reminds us that wayward policies bring about a search for money that is good as gold. What better than gold itself?"
Wall Street Journal


Interview:

[youtube]http://www.youtube.com/watch?v=DzMzCoeqHnk[/youtube]
 
"Gold is not an investment, because it has no risk and no return. Warren Buffett's well-known criticism of gold is that it has no return and therefore no chance of compounding his wealth.

He is right. Gold has no yield; it is not supposed to, because it has no risk. If you buy an ounce of gold and keep it for ten years, you end up with an ounce of gold no more, no less. Of course, the 'dollar price' of an ounce of gold may have changed radically in ten years. Thats not a gold problem; it is a dollar problem.

To get a return on an investment, you have to take risk. With gold, where is the risk? There is no maturity risk, because it is just gold. It will not mature into gold five years from now; it is gold today, and always will be. Gold has no issuer risk, because nobody issues it. If you own it, you own it. It is not anyone else's liability.

There is no commodity risk. With commodities there are other risks to consider. When you buy corn, you have to worry: does it have bugs in it? Is it good corn or bad corn? Its the same thing with oil; there are 75 grades of oil around the world. But pure gold is an element, atomic number 79. It is always just gold...

Wall Street sponsors, U.S. banks, and other members of the London Bullion Market Association (LBMA), have created enormous volumes of 'gold products' that are not gold. These are paper contracts. These products include exchange-traded funds, ETFs, the most prominent of which trades under the ticker symbol GLD. The phrase 'ticker symbol' is a giveaway that the product is not gold. An ETF is a share of stock. There is some gold out there somewhere in the structure, but you do not own it you own a share. Even the share is not physical; it is digital and easily hacked or erased."

Jim Rickards, The New Case For Gold
Click to expand...
 
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nice read, all the false arguments against gold were now gone and buried !!! gold is exposed under the sun :)
 
I've been reading him a lot. I think he has good connections and seems measured in his commentary.

This (from the PDF sample)

One effect of a massive issuance of SDRs will be to hinder capital formation by destroying the real value of
dollar denominated assets. The only shelter in the storm will be hard assets, including gold. Astute individual
investors are positioning their portfolios that way today, and so are major powers such as Russia and China.
What if people lose confidence in the IMF and the SDR solution? Who bails out the IMF?
Right now there isnt anyone. Turning to the IMF is not kicking the can down the road; its more like kicking the can upstairs
from private debt to sovereign debt to multilateral debt issued by the IMF. The IMF is the penthouse; you cant
kick the can any higher. Theonly thing standing behind them is their 3,000 tons of gold and the gold held by
their members in the U.S. and Europe. This is why I keep returning to the subject of gold. This is why I continue to calculate gold to
-money ratios, and gold to GDP ratios and develop dollar price projections of $10,000 per ounce, possibly
higher.
If confidence in national paper money is lost and you try to bail out the system with a different kind of fiat money,
specifically the SDR, what good does that do? If it works at all, it will only be for two reasons. One, almost no
one understands it, and two, we wont have SDRs in our pockets. SDRs will be used by, for, and between
countries not by individuals. SDRs wont be transparent. They will exist and be highly inflationary if printed
in sufficient quantities, but no one will actually see them because they are the most technical and abstract form
of money ever created.If SDRs work, it will be in part because so few people understand them.
Still, if people do understand, they are likely to lose confidence. In that, scenario, the only recourse is gold.
Click to expand...

Today in The Age it was mentioned that last financial year, 90 billion of Oz exports to China included iron ore (45bill plus), then coal (7.5bill) and then gold (7bill).

Interesting.
 
p.s. he used to suggest 10% of your investment portfolio to gold, he is now saying "10-20%"
 
I'm seriously coming around to gold. My fear is that those who accumulate gold will one day be the target of a government disinformation campaign as a pretext to confiscation.
 
SilverPete said:
JulieW said:
p.s. he used to suggest 10% of your investment portfolio to gold, he is now saying "10-20%"
Click to expand...
How about silver?
Click to expand...

He says he knows little of silver but it will be dragged up by gold. His silver target at gold $10,000 is silver $100.
Presumably he has no view on the GSR :D
 
I can't accept his US$ 10000 price forecast for gold.
Rickards has been assuming that the US treasury has 8000+ ounces of gold.
Those gold "reserves" have not been audited for decades. Every physical audit request has been rejected.
A much higher US$ price will happen.
 
James said:
I can't accept his US$ 10000 price forecast for gold.
Rickards has been assuming that the US treasury has 8000+ ounces of gold.
Those gold "reserves" have not been audited for decades. Every physical audit request has been rejected.
A much higher US$ price will happen.
Click to expand...

If US treasury came out tonight and said they have 0 ounces gold, you think gold will get to $10,000+ per ounce?
 
If gold went to 10k an ounce, would the US treasury allow an audit ?

seems both are unlikey.
 
SilverPete said:
I'm seriously coming around to gold. My fear is that those who accumulate gold will one day be the target of a government disinformation campaign as a pretext to confiscation.
Click to expand...

Too bad for the government !
your fear is working well.
This is the nature of Gold, which never is enough.
:)
 
Rickards constantly makes the point that the measure of US dollars is just a measure that the exorbitant privilege of the USD enjoys currently. New price discovery mechanisms are in train and will be part of the new process.

Sinclair, among others, talks about the false framework of paper gold and the attempt to keep everyone distracted from the canary in the coalmine which is gold.

Since China is racing as fast as possible toward accumulating physical gold, they are likely one of the major players in manipulating the sham of the comex so that they can take delivery of every possible ounce at the lowest price.

$10k gold has been proposed by quite a few smart commentators and I'm always mindful of Jim Sinclair's comment that the next rally may be the rally that 'you don't sell'. In explanation, because you won't be able to sell it for any meaningful exchange - presumably unless house owners are accepting 10 x 1oz gold coins for their Title.

His point being that as gold accelerates upward, as the world economies enter crisis, as faith is lost in fiat, the masses will bid up physical gold to astronomical figures, but the holders of gold will not sell.

Instead the wise will be waiting for the dust to settle, when they can use their gold money to once again establish the wealth that the destruction of paper assets has stolen. (perhaps your stock shares, perhaps your bank deposits, perhaps your pension or superannuation plans).

This is the gist of what Rickards is saying. He gives a higher figure near 50k per ounce, as does Jim Sinclair, but he says it is an improbable figure, but possible. Rickards suggests 10k pretty much without demur, so I tend to see his scenario playing out versus the doomsters (see under kingworldnews et al).

Rickards wealth preservation strategy is currently in hard assets. His portfolio advice of 10-20% gold, is in my view pretty much baseline for anyone who's been observing the current shenanigans - e.g Deutsche Bank, the latest FDIC letter from Dimon on JPMorgan Chase's failure to present a credible plan for winding itself down if the bank failed. etc, etc.
(see jsmineset.com for an unnerving commentary).

So far Rickards seems to have described the playbook they're using, and as he constantly says, if you're a nerd and love obscure reports it's all on the IMF, BIS etc websites. He's not reading tea leaves.
 
Ipv6Ready said:
James said:
I can't accept his US$ 10000 price forecast for gold.
Rickards has been assuming that the US treasury has 8000+ ounces of gold.
Those gold "reserves" have not been audited for decades. Every physical audit request has been rejected.
A much higher US$ price will happen.
Click to expand...

If US treasury came out tonight and said they have 0 ounces gold, you think gold will get to $10,000+ per ounce?
Click to expand...

the US may not own it, but is 100% has possession of it, it may not be true... but they have tungsten in them :lol: so the other people who own it does not have it, which is true

the actual gold is kept by papa bush, who has it kept for him by a thief :P that is the gold of his friends were taken back from places like Ukraine Libya etc

the question is who has it
 
alor said:
Ipv6Ready said:
James said:
I can't accept his US$ 10000 price forecast for gold.
Rickards has been assuming that the US treasury has 8000+ ounces of gold.
Those gold "reserves" have not been audited for decades. Every physical audit request has been rejected.
A much higher US$ price will happen.
Click to expand...

If US treasury came out tonight and said they have 0 ounces gold, you think gold will get to $10,000+ per ounce?
Click to expand...

the US may not own it, but is 100% has possession of it, it may not be true... but they have tungsten in them :lol: so the other people who own it does not have it, which is true

the actual gold is kept by papa bush, who has it kept for him by a thief :P that is the gold of his friends were taken back from places like Ukraine Libya etc

the question is who has it
Click to expand...


I know where it is.... It's in India and China, though not as bullion in some government vault but in jewellery so likely only small fraction will ever be come back in circulation.
 
be careful with what jim rickards says/writes. as per usual, they concede x% truth that many already know but then lead you astray with other vital information.

he was (and i believe still is) a financial and asymmetrical warfare advisor to the pentagon and CIA. you now know where his loyalties lie.

he's pointing towards the SDR basket as the new reserve currency after the USD falls. perhaps with some level of gold backing only if necessary. note the USA comprises some 40% of that garbage basket. (that would obviously be the aim of the criminal bankers - to replace a discredited fraudulent paper currency with another one which eventually would go down the same path. me suspects that russia china, brics etc will not allow the same fraud again.)
 
the Saudi just wants to have their nuke or else the treasuries got unloaded crashing the dollars

the eyes of Horus can see though any deception or any misinformation :)

Jedi tricks only work on weak minds
 
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