T Nation

Morgan Stanley: The Case for Gold


"Nov. 13 (Bloomberg) -- Gold may climb above $1,000 an ounce in 2011 as global mine output drops, mining costs rise and demand increases, Morgan Stanley said.

Mining production actually peaked in 2001 and has since been declining,'' the bank's commodity analyst Hussein Allidina said in an interview with Bloomberg television in Singapore.When I look at the demand side, as income growth accelerates, the consumption of gold for jewelry purposes increases.''



Peter Schiff predicts that the price of gold and the Dow average will intersect eventually.

That should make for interesting times.


Think of what a bargain some stocks will be when that happens.


There's a good chance someone will already be using your skull cap as an ashtray by then.

Academia is worthless in a Mad Max world.


There will be no Mad Max world. Not in the neighborhood I live in!!


Ha, and what about the last remaining oil refineries?


I'm done with academia -- I didn't make the cut. Now I am self employed and much better off.


Pimping yourself out?


Yes for now. Maybe I will take a more permanent position when I find something that doesn't completely bore me.


I think a case could be made that people will simply begin to give up on fiat currencies. So long as the bubble was expanding and jobs were plentiful, people were happy. But, as with all fiat currencies, the bubble must burst.

Government can either accept the immense pain and soon therein become unemployed, or they can go hog wild with the printing press. In a liberal democracy, the second option becomes more and more likely, as we witness today.

People begin to move into the metals simply because they don't want their assets to be at the whim of politicians.

A wise move indeed.


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If a dollar is completely worthless in three years, will the dollar price of an ounce of gold be infinity?



Who in their right mind would trade anything of value to themselves for something that is less valuable than a jar of fart?


If the dollar becomes as worthless as the fear mongers say - gold will be worthless as well.


RJ, every government that ever used fiat currency wound up either having a revolution or a collapse, followed by a return to sound money. Numerous states in the USA used to print their own (Pre-rev) and the chaos was so bad that the British gov't finally had to outlaw it. Then of course, is the old phrase 'As worthless as a Continental...'.

No rational person wants a depression and a worthless currency, but these things become more likely when government can bubble up the money supply. Gold is simply an alternative money outside the reach of government, that's all.

Think of it as moving your family to a safer neighborhood.


Well, perhaps not worthless, but definitely hard to trade. If things ever got that bad (as even those of us who aren't fear mongers believe that they could), a case of Marlboros, a pound of ground coffee, a fifth of Jack Daniels, a few Hershey bars, a 4-pack of toilet paper, and a box of .308 ammunition would have considerably more street value than an ounce of gold.


More or less you just described how money arises in the market.

If I were a Wal-Mart executive I'd start marketing the above list of items as the "Super Deluxe Mad Max Care Package".



Just for reference, at the current exchange rate, one ounce of gold will get you the following:

Fifty packs Marlboro Reds
Ten pounds Starbucks coffee (Sumatra, of course)
Five bottles Jack Daniels, 750 ml
Five bars Hershey Special Dark chocolate
Forty rolls Charmin toilet paper, two-ply.
Two hundred fifty rounds Hornady .308 168gr TAP (best for zombies)

Prices subject to change without notice.


"When CNN wants to know about the Top Trends, we ask Gerald Celente."
? CNN Headline News

"A network of 25 experts whose range of specialties would rival many university faculties."
? The Economist

"Gerald Celente has a knack for getting the zeitgeist right."
? USA Today

"There?s not a better trend forecaster than Gerald Celente. The man knows what he?s talking about."

"Those who take their predictions seriously ... consider the Trends Research Institute."
? The Wall Street Journal

"Gerald Celente is always ahead of the curve on trends and uncannily on the mark ... he's one of the most accurate forecasters around."
? The Atlanta Journal-Constitution

"Mr. Celente tracks the world?s social, economic and business trends for corporate clients."
? The New York Times

So...here what he says now:

"Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts."



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