Gold: Expensive or Cheap, it's Rare
(World's Gold fills 2 Pools & the New World Order, Explained)
Silver Stock Report
by Jason Hommel, November 19th, 2009
The best witty observation this week came from Bill Murphy with www.gata.org. Bill noted the irony of how media pundits who bash gold will argue that gold is in a bubble (gold's expensive) in one breath, and then bash it again by saying it's a bad investment because gold has underperformed (gold's cheap) inflation rates since 1980's peak. Murphy's main point is, "how can an asset be in a bubble if it's underperforming inflation?" Or, as I'll put it, how can gold be cheap and expensive at the same time?
If the gold naysayers had the capacity to utilize at least three sets of neurons in their brains simultaneously and engage in rational logical thoughts, they might perceive the contradictory nature of their two arguments, and recognize that at least one of their assumptions might not be true. In other words, gold can not be in a bubble now.
Therefore, gold must be cheap, which is why it's good to buy as an investment, since investors should want to buy cheap things that have underperformed inflation, which then, later, after buying it, it should then outperform inflation, as gold has been doing quite easily since 2001.
It's also dizzying to hear other gold bashers claim that "There is
no inflation, and thus no reason to own gold." What?
So that brings me to my main point that I've been asking for years.
Why are people happy earning 1% or less in their bonds, when gold has been going up so much for the last 8 years?
How much has gold gone up, on average, per year?
My favorite online compound interest rate calculator does the math.
From a $250 initial investment to a $1145 final amount, over 8 years, gold provided a 21% per year average rate of return.
So, which is better, 1-4% in bonds or 21% in gold per year?
You only need half of one synapse firing in your brain to recognize the
clear answer to that question.
Wouldn't 21% interest rates bankrupt many public companies who would
not be able to refinance their debt, and thus destroy stock values,
driving many to zero?
Gold will thus be in a bull market until AFTER interest rates exceed 21% again.
I think it would be wise to assume gold prices will continue to increase at much higher rates going forward, because the gold price has been manipulated lower during this recent time frame, through central bank sales and leases, and the sales of many fraudulent paper gold products (such as "gold pool accounts," allocated and unallocated accounts, certificates, and futures and options) which divert investment demand away from the real thing. But when the manipulation ends, through recognized defaults, the gold price will go much higher, much faster.
Why is gold doing so well? It's rare. It's not created as
easily as money on a printing press.
How rare? The World Gold Council at Gold.org has estimated all the world's gold that has ever been mined at about 155,000 metric tonnes.
How much is that? We need context. It's said that this much gold would fit into two Olympic sized swimming pools. Let's review the math on that.
"Will all the gold in the world fill 2 Olympic sized swimming pools?"
Density of gold: 19.30 g·cm-3
1 g/cm3 equals 1000 kg/m3
19,300 kilos per cubic meter for gold
1 kilogram = 32.1507466 troy ounce
620,509 troy oz. per cubic meter
1 tonne = 32,150.7466 troy ounce
19.3 tonnes per cubic meter, acts to check and prove the "kilo per oz." and "tonne per oz." math is correct.
19,300 kilos = 19.3 metric tonnes per cubic meter.
155,000 tonnes of gold mined in all of human history
Volume of an Olympic Swimming Pool?
25 meters by 50 meters by 2-3 meters deep
8031 cubic meters / 3125 cubic meters = 2.57 pools
Thus, all the gold in all the world, ever mined in all of human history, will fill 2.57 Olympic Sized swimming pools.
Since the depth of an Olympic Swimming pool can be deeper, and since
the 2-3 meter depth is a minimum, all the gold in all the world would
easily fit into two slightly deeper than normal, Olympic Sized Swimming
I believe silver is better than gold, of course. Not only it is more rare, but also, likely, more real.
Most silver has been consumed by industry over the last 60+ years, and is not economically recoverable, ending up in landfills at concentrations lower than most mining projects. Thus, men such as Ted Butler, who have researched the subject thoroughly, believe that silver, in above ground refined form, is more rare than gold.
The New World Order silver round appeared on the Jack Van Impe Ministries TV Show. They seemed to find it alarming. We emailed them to explain our theological interpretation.
On the show, Jack admitted he "re-thought" his prophetic views on the ten horned beast of Revelation 17-18, and now thinks it is a world government based on all the scriptural evidence, and also based on the views of several early Church Fathers.
You can see the New World Order round on TV here:
Jack Van Impe quotes Dan 8:23 & Rev 13:7
Van Impe says he has new insight, that the New World Order is Global:
In Daniel Chapter 2, it speaks of the statue that represents world kingdoms. If the two legs stand for west and east, then Western and Eastern Legs imply a world empire.
Also, the rabbis of old, the Early church fathers taught a ten division world empire. And also, Rev 17:10 is quoted.
We recently re-stocked 1000 NWO silver rounds directly from the source