Greenspan: Gold Is The Premier Currency

TETT:  Do you think that gold is currently a good investment?
GREENSPAN: Yes… Remember what we’re looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can macth it.  (source: Zerohedge).

Apparently that was part of an interview that never made it into the transcript published by the Council on Foreign Relations with Greenspan by the Financial Times’ Gillian Tett (LINK).

The precious metals’ sector spiked higher today by a considerable amount after the Government-manipulated employment report missed the markets’ expectations.  Gold and silver have been relentlessly pushed lower by the western Central Banks’ repeatedly dumping large quantities of gold and silver paper gold contracts onto the market during the least active trading periods of the trading day (typically overnight between the end of India/China trading and the start of London.

The mining shares have been demolished to the point at which their value collectively in relation to the price of gold is the cheapest in market history.   Mining industry godfather, Pierre Lassonde, stated in a interview with King World News that he just put $10 million in mining shares:    I just put $10 million into the market today in gold equities. I can’t help myself. From now until early December is the best time to buy shares because people are literally throwing the shares away. By the end of December the market will turn around, and at some time between January and March you will double your money.  (LINK)

I’m not close to calling a renewal of  a bull market in the sector but the mining shares had a huge day today.  Many individual stocks were up over 10%.  We know the U.S. Mint is out of silver eagles and has suspended all orders.  According to a few coin dealers with whom I chatted with today, the Royal Canadian Mint has apparently temporarily suspended sales of gold and silver bullion coins (I have not been able to directly confirm that).

At some point, the metals/miners are going to re-price at a significantly higher level.  Just on pure supply/demand, if nothing else.  My new favorite silver miner was up nearly 10% today.  It has outperformed the sector during this brutal sell-off period and I expect that it will outperform on the way back up:   Mining Stock Reports.   This Company now produces cash flow down to about $12/oz (base on all-in costs) and its operations were generating free cash flow late in the 3rd quarter.  My report shows probable price targets even it silver were to go sideways at the current price level.

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3 thoughts on “Greenspan: Gold Is The Premier Currency

  1. First Gartmann called a bottom, now Greenspan calls gold “currency;” oh horror.
    Some hundred years JP Morgan testified under oath that gold is money. For a good reason there are different words used. To fix the statement of the used-up central banker and master of obfuscation it should read “No fiat currency, including the dollar, can match money.”
    Gunther

  2. i gots an e-mail here early fri 7th evng from that duane guy he says crimex has halted silver?
    no idea wtf he means, since they only sell paper.

    no one else has honey booboo about it up anywhere!

    an interesting bit about the run on silver phys both US & Canadian mints these past 72 hours is supposedly it’s some big buyers outside these countries (mints sell only to Auth dealers, in bulk, & the biggest retailers buy it from them, so no way to know except at retail where it’s shipped to customer).
    they’ve said the internal sales stink, & have all this year.

    1. The theory that it’s big buyers outside of the U.S. comes from Ted Butler. It’s bullshit. He was spreading the view that JP Morgan was the big buyer earlier this year. That was absurd. I’m surprise he hasn’t resurrected that theory.

      There of course are going to be foreign buyers of these coins and they may have accounts with the Authorized Participant mint buying companies like A-mark, but more than likely it’s Canadian and U.S. individual buyers. It fits with conversations I’ve had with local coin shops who are selling silver eagles as quickly as they are getting them in.

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