WSJ Hit Piece: Gold Is A Ponzi Scheme – What?


Zero Hedge points out the hypocrisy and ridiculousness of the WSJ and its elitist cabal:

The WSJ issues an amusing hit piece on why gold is nothing but a “Ponzi Scheme”, ignoring the fact that by its definition the stock market is precisely the very same. Either way, since we are seeing no let up in the currency debasement department of Central Banks, and gold continuing to trade near record highs, it is a good thing to occasionally have a shake out of the weak hands. After all it will merely provide far better entry prices for countries like Russia, which as we disclosed recently, have been buying up all the IMF has to sell in the open market. At the end of the day – the opinion of Brett Arends or of David Einhorn, David Rosenberg, Jim Rickards, Eric Sprott, and, oh yeah, John Paulson.

Why gold is a ponzi:

Most of the new supply has come from mine production. Some, though a dwindling amount, has come from central banks. And a growing amount has come from recycling—old jewelry and the like being melted down for scrap. (This is a perennial issue with gold. I never understand why the fans think gold’s incredible durability—it doesn’t waste or corrode—is bullish for the market. It’s bearish.) So if supply has consistently exceeded user demand, how come the price of gold has still been rising?

In a word, hoarding.

Gold investors, or hoarders, have made up all the difference. They are the only reason total “demand” has exceeded supply.

Lots of people have been buying gold in the hope it would rise. But the only way it can rise is if still more people buy it, hoping it will rise still further. And so on.

What do we call an investment scheme where current members’ returns depend entirely on new money brought in by new members?

A Ponzi scheme.

We now realize we had it all wrong – it is not Keynesianism that is the biggest ponzi, it is gold, whose price suppression practices by JPMorgan and the LBMA cabal is now the target of a DOJ inquiry… Oh oops, the WSJ forgot to mention that part.

The WSJ’s “powerful” conclusion

Yes, as I wrote earlier, gold may well be the next big bubble. And that may mean there is big money to be made in speculation.

But I don’t trust it as an investment.

Something tells us that John Paulson, who has 30% of his fund now tied into gold, will read this article and rush to sell, sell, sell. Or not.

Gold is a Ponzi – LOL

If this article by the WSJ doesn’t speak volumes about how desperate the elitist totalitarian bankers are to keep you from putting your money into a real investment I don’t know what does.

Anyone that’s still dumping money into paper investments is an idiot.

Anyone that’s purchasing ETF or paper Gold is an idiot.

At this point, everyone should be putting ALL of their investment in to precious metals AND TAKING DELIVERY OF THOSE METALS!

If you don’t have the physical metal in your grubby little hands, you are going to get screwed.