Gold is a “Ponzi Scheme”

Tuesday, March 22, 2011
Posted in category gold

CNBC is always good for a laugh or two. Yesterday was no exception. The article, “Gold’s Record Surge – A Rejection of Capitalism?” states that the purchase of gold “means an almost nihilistic rejection of our global market system.” A system of intervention, bailouts, the Federal Reserve purchase of Treasuries, and the devaluation of money is referred to as “capitalism.” Another sterling quote from the article:

“Gold has no valuation, no metrics, no commercial use,” said veteran commodities trader Dan Dicker. “It’s the world’s most respected ponzi scheme.”

As a friend of mine said to me, “I love this kind of muddleheaded analysis regarding gold. As long as it confuses a large swath of the public, it allows me to accumulate more gold at what I consider to be reasonable prices.”

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8 Responses to Gold is a “Ponzi Scheme”

  1. liberranter says:

    March 22nd, 2011 at 3:21 pm

    Isn’t it always immensely satisfying to watch the “experts” on the MSM chatter programs make complete assholes of themselves in front of the entire world?

  2. Don Matesz says:

    March 22nd, 2011 at 5:33 pm

    Holy crap, gold as a ponzi scheme, that’s rich. No valuation, no commercial use? Where does Dicker live? Truly Orwellian.

  3. Charlie says:

    March 22nd, 2011 at 10:47 pm

    I love how gold is dismissed because it has no “use.” And how is paper any better? Oh yeah, I can wipe my ass with paper.

  4. Jeannie Queenie says:

    March 22nd, 2011 at 11:35 pm

    You sure the guys name is Dicker? Or more like Dickhead! If this guy is a commodities trader then I’m a nuclear physicist. Guess he’s been dealing with fiat money far so long, he doesn’t know that those commodities he deals in are bought by the pieces of fairyland fluff he relies on.

  5. Jeff Hebert says:

    March 23rd, 2011 at 8:31 pm

    It’s true, gold has not use. You can’t even burn it for heat!

    This guy is confusing the “global market system” with the “global mercantilist system”. Unfortunately, this is a very common mistake.

  6. Jeannie Queenie says:

    March 25th, 2011 at 12:07 am

    The biggest ponzi scheme of all is our fiat dollar. And don’t think that you can change that or you will risk being called a domestic terrorist like this guy here who could get 25 years in the slammer. I wonder what happens to those folks in the Berkshires of MA who have been dealing in Berkshares for years now…or those 150 towns/cities who deal in other than our pretend monopoly money known as american currency. You know you have fallen down the rabbit hole when your govt tells you that you MUST use play/pretend money or else eat bread and water while wearing stripes at the big house. Egads.
    http://www.citizen-times.com/article/20110319/NEWS01/110319006/1001/news/Liberty-Dollar-fake-currency-creator-convicted-federal-court?odyssey=nav|head

  7. Tom Osborne says:

    March 26th, 2011 at 2:33 am

    I love it–this is a perfect example of Dada, as if they simply put various words and concepts into a hat and then strung them together as they pulled them out, having absolutely no meaning or relationship to each other.  Just goes to show that all these programs are just noise.

  8. M. Terry says:

    March 28th, 2011 at 11:17 pm

    Here’s a little something written just prior to Zimbabwe abandoning the use of Zimbabwean paper currency:

    “BBC southern Africa correspondent Peter Biles says the Zimbabwean dollar has become a laughing stock. A Z$100 trillion note was recently introduced.”

    I’d bet that lots of Zimbabweans would love to have traded Z$100 trillion notes for gold at face value. Here’s what they used paper money for in Zimbabwe:
    http://www.momoneyblog.com/economic-cartoon-of-the-week-week-of-may-30th/

    As for gold having “no commercial value,” what about the 60 tons used annually for dentistry alone? How about gold use in high tech industry, and, of course, those zillions of medical uses?

    Looks like another “expert” two-brain celled commodities analyst spouting boolsheet. I wonder who believes that crap? Does some moron actually pay this guy? Amazing.

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