Economic Collapse

Comments: This is a funny list of events to look for to pinpoint the next peak in the gold price. My favorite one is “Jim Sinclair is chosen ‘Man of the Year’ by Time magazine”. Sinclair accurately pinpointed the last top of the gold price in 1980 at 850 USD/Oz.
I tag this one as “financial humor” not only because its funny but because I believe there will never be a new top in the gold price. What I mean is that gold will regain its status as money and will not be priced in any amount of paper money. Or, another way of putting it, is that paper assets will be backed by gold once again. In a hyper-inflation environment gold cannot be bought with any amount of fiat paper. This is the difference between “price” and “purchasing power”. As the old saying goes: “Gold will buy you land, silver will buy you bread”. Thats a hint of the future I and many other see coming our way. Enjoy the read…

22 Things to Look for When Gold Is Topping, by Rick Ackerman

• Bill Murphy, minus any censoring, is a regular guest on CNBC
• Barron’s has an issue with two articles on gold
• Abbe Joseph Cohen turns bearish and announces that 50% of her money is now in gold-related assets
• A CNBC host is heard recommending gold
• The New York Times runs a major front page headline highlighting the price of gold and its price chart
• Jim Sinclair is chosen “Man of the Year” by Time magazine
• Gold is the lead item on the national news every night for a week
• Wal-Mart announces they will begin to sell tiny amounts of gold
• Jon Nadler starts a fashion craze wearing gold lamé suits, and, in an announcement that shocks the financial world, reveals that he is starting a round-the-clock precious metals channel. Another coup is that Dennis Gartman and Leonard Kaplan will be his featured analysts.
• Your local jewelry store takes down its “Cash For Gold” sign and replaces it with “We Sell Gold”
• In a recent poll, Yale and Princeton grads reveal that their top career choice is to start a gold exploration company
• Goldman Krupp, correction, Sachs, changes its name to Gold and Silver Sachs
• An enterprising young Gold and Silver Sachs executive comes up with an idea of franchising gold coin shops
• Bill Murphy is frequently seen dining with mainstream Wall Street executives, and “Midas” sightings — as he is known throughout the world — become commonplace in the gossip columns
• Brokerage houses and banks fire their financial analysts and frantically start gold research departments to cash in on gold mania
• Some of your friends or relatives call you to recommend some gold stock that you must buy, and inform you that they are now up 50% in their gold stocks
• All mainstream gold forecasters raise their gold price target by $500 for the year
• The Association of Gold Trading Advisory Services, formed in March 2010, publishes a 15-page apology on the internet. In brief, the document apologizes for the years of predicting near term tops and missing 90% of the entire move in gold and silver. They are now long-term investors and predict that a tradable top is not in sight
• The Donald builds a series of “Trump Oros” in the Sierra Madres for Mexican miners
• In one week, 15 new movies connected with gold are announced to be ready for production
• A remake of the movie Goldfinger features Sean Connery’s grandson as Bond and Jon Nadler as Auric Goldfinger. This time, the villain gets away with the gold and Bond is accused of the theft. Goldfinger is actually filmed inside Fort Knox, which, since it was discovered to be empty of gold, becomes the world’s largest production set. As an aside, the guards at Fort Knox were falsely accused of the gold theft but convicted anyway in a secret trial. During their defense, the guards claimed that there hadn’t been any gold there for over 30 years.
• Golden Fleece, current market cap $7.6 million, tenders a friendly offer for Barrick Gold, which immediately snaps it up as it tries to pare down its still-monster hedge book.