Billionaires Dumping Stocks

reply to post by Bassago


Money News is not a source. It is a spam/advertising site. Money News was reporting rich were dumping stock last year and using Donald Trump's name, before we had a historically high stock market in 2013.

(My personal opinion is it's about to crash, but please don't take this article too seriously.)

Snarl
You said that you had recommended a departure from 401K contributions and an investment in precious metals. Precious metals are being hoarded at the moment. When these holding are liquidated, there will be a tremendous decline in value. I estimate their prices are inflated at over 400 (maybe 500) times their true values.

Just to be clear. You are claiming that PM's are over valued to the tune of 400-500X ?

reply to post by lostbook


You can hold onto them sure. Thats the no risk route. The other option is to sell now while its still at a decent value, hold onto said earnings and reinvest after the stocks crash thus doubling even tripling your shares

lostbook
reply to post by Bassago

 

What if I held onto my stock even after stock values plummet and wait for the price to go back up? Can't you do that?

edit on 4-1-2014 by lostbook because: word error

See Lehman Brothers or General Motors stockholders pre 2008 ..company's do go out of business or they use to anyway.

Do agree with Bassago - physical gold & silver is the way to go cause when they pull the plug - the paper investments won't be worth the paper they are printed on. Just disagree on the timing.

Not saying you will get rich off gold & silver just saying the pm's have been placeholders of wealth for over 2000 years back to the Romans & don't see that changing anytime soon.

Ameilia
reply to post by Bassago

 

Money News is not a source. It is a spam/advertising site. Money News was reporting rich were dumping stock last year and using Donald Trump's name, before we had a historically high stock market in 2013.

(My personal opinion is it's about to crash, but please don't take this article too seriously.)

I wasn't aware of it being a spam site though they do appear to be highlighting this author and his book. Still the points are valid about the stock dumping as well as the authors prediction of the previous equities and market meltdown.

METACOMET

Snarl
You said that you had recommended a departure from 401K contributions and an investment in precious metals. Precious metals are being hoarded at the moment. When these holding are liquidated, there will be a tremendous decline in value. I estimate their prices are inflated at over 400 (maybe 500) times their true values.

Just to be clear. You are claiming that PM's are over valued to the tune of 400-500X ?

Yes ... that is my personal opinion. Hard to believe, isn't it? In 1970 the price of gold was a mere $35.00/oz. and had been that way for twenty years. Someone learned how to manipulate the price (value) and a correction is long overdue.

Remember that fiat currency is wholly supported by belief (faith) alone. Applying a dollar value (faith) to a physical commodity is a hard thing to get one's mind around. That's why TPTB will always be TPTB ... this is 'control' as an art form.

reply to post by Snarl


The rise in price can be explained by the fact that up to that point the USD was pegged to precious metals. Obviously the USD has become unhinged since then, and the rise in price reflects this.

Lets look at this from another perspective. Right now the world has its hopes riding on the United States Treasury. The Fed has spent its balance sheet on bailouts that didn't work. And now the Treasury will supposedly come to the rescue. But the Treasury is a gaping hole of nothingness. There is no treasure in the Treasury. Or is there?

The Treasury is broke. It is insolvent. It is completely reliant on the future taxes to be paid by an economy in trouble. And its biggest asset, gold, is only worth $226 billion. That's hardly a drop in the bucket. But lets say that it re-values gold at $100K per ounce, that same stockpile is worth $26 trillion dollars. This would be enough to be back in business on the world stage.

Perhaps gold is the United States Treasury's "ace in the hole". We will see. Your guess is as good as mine.

Snarl

METACOMET

Snarl
You said that you had recommended a departure from 401K contributions and an investment in precious metals. Precious metals are being hoarded at the moment. When these holding are liquidated, there will be a tremendous decline in value. I estimate their prices are inflated at over 400 (maybe 500) times their true values.

Just to be clear. You are claiming that PM's are over valued to the tune of 400-500X ?

Yes ... that is my personal opinion. Hard to believe, isn't it? In 1970 the price of gold was a mere $35.00/oz. and had been that way for twenty years. Someone learned how to manipulate the price (value) and a correction is long overdue.

Remember that fiat currency is wholly supported by belief (faith) alone. Applying a dollar value (faith) to a physical commodity is a hard thing to get one's mind around. That's why TPTB will always be TPTB ... this is 'control' as an art form.

I'll have to disagree with the valuation portion of your post though I do agree with the manipulation starting about that time.

The first gold exchange-traded product was Central Fund of Canada, a closed-end fund founded in 1961. It later amended its articles of incorporation in 1983 to provide investors with an exchange-tradable product for ownership of gold and silver bullion. It has been listed on the Toronto Stock Exchange since 1966 and the AMEX since 1986 Wiki..

Once the market began using paper gold certificates and the banks figured they could be leveraged as easily as fiat money deposits we got a disconnect between physical gold and paper gold. We also got the ease of manipulation. I doubt China, India, Russia, etc would be buying gold at their current furious a rate today if gold was overvalued 500X. Just my opinion though.

Snarl

METACOMET

Snarl
You said that you had recommended a departure from 401K contributions and an investment in precious metals. Precious metals are being hoarded at the moment. When these holding are liquidated, there will be a tremendous decline in value. I estimate their prices are inflated at over 400 (maybe 500) times their true values.

Just to be clear. You are claiming that PM's are over valued to the tune of 400-500X ?

Yes ... that is my personal opinion. Hard to believe, isn't it? In 1970 the price of gold was a mere $35.00/oz. and had been that way for twenty years. Someone learned how to manipulate the price (value) and a correction is long overdue.

Remember that fiat currency is wholly supported by belief (faith) alone. Applying a dollar value (faith) to a physical commodity is a hard thing to get one's mind around. That's why TPTB will always be TPTB ... this is 'control' as an art form.

Here is the fallacy in your argument - sorry.

What happens when the "faith" is gone?

Of course the price of Gold was $35.00 an ounce in 1970 cause Nixon was taking us off the Gold Standard in 1971. They cratered the price of Gold so people would accept whatever is on those Federal Reserve Notes backed by Faith & Credit or whatever they say - essentially they are backed by nothing.

After the dollar tanks from all this debt & the faith is gone - guess what they back the currency with?

China is moving towards a Gold backed currency & if you believe it Saddam Hussein was going for a gold backed dinar along with Ghaddfy was trying to get an African Gold based currency and they ended up dead.

And you can back to JFK with the Silver Certificates a currency backed by precious metals outside of the Federal Reserve System and they blew his skull cap sky high.

Every Central Bank across the globe is hording physical Gold & Silver...see the Germans recently wanting their physical Gold back from the NY Federal Reserve Bank . They don't trust us and quite frankly don't blame them.

Bassago
Billionaires Dumping Stocks, Economist Knows Why

The article originates from Newsmax, a "news" source owned by a veritable who's who of the same government insiders and spooks ATS'ers tend to blame for conspiracies.

The reason John Paulson is selling is because he lost his shirt when the price of gold went down, so he's selling off vast amounts of stock in gold mines now that their value has plunged.

Warren Buffett buys and sells all the time. Berkshire Hathaway's holdings are public record. Here's their market purchases and sales for 2013. Personally I don't see a conspiracy other than that he buys low and sells high.

The article quoted by the OP mentions a writer, Robert Wiedemer, an author known to make a living writing fear-mongering books predicting economic collapse.

The truth about any article you read or video you see from someone who is announcing economic doom is that they’re either trying to sell you something or they’re trying to make a profit for themselves.

All economies, the good, the bad, and the ugly, are controlled by the the reserve banks of the world, good and bad and ugly alike, they are orchestrated and controlled, the banks create all aspects of an economy that exist, one simple example is inflation in either direction, every aspect of an economy is orchestrated in every sense of the word, the world could live in a Utopian environment if the reserve banks so choose, everything that has happened, past, present, and future alike in all economies including the good, the bad, and the ugly are controlled events.

LaEuro
All economies, the good, the bad, and the ugly, are controlled by the the reserve banks of the world, good and bad and ugly alike, they are orchestrated and controlled, the banks create all aspects of an economy that exist, one simple example is inflation in either direction, every aspect of an economy is orchestrated in every sense of the word, the world could live in a Utopian environment if the reserve banks so choose, everything that has happened, past, present, and future alike in all economies including the good, the bad, and the ugly are controlled events.

Agreed but show me inflation in the US Housing Market...the Private US Federal Reserve Bank has thrown everything & anything at that problem including buying $60 Billion dollars a month on junk mortgage backed securities for what 2 years & nothing...not a peep...no inflation.

By the way that 60 Billion per a month is US Tax dollars - everyone in the US has to pay that money back.

Until they fix the US Housing Market - there will no recovery!

Nope - not happening.

Bassago
I doubt China, India, Russia, etc would be buying gold at their current furious a rate today if gold was overvalued 500X. Just my opinion though.

I was hoping someone would directly challenge my math.

There is an economic strategy in all this. The devaluation of PMs will be the pivot point. What matters is steel, electricity, lumber, food, and water. Wait 'til they're made artificially scarce ... and it's coming. At that time, selectively stripping those countries of anything wanted will be as easy as picking daisies.

BABYBULL24

LaEuro
All economies, the good, the bad, and the ugly, are controlled by the the reserve banks of the world, good and bad and ugly alike, they are orchestrated and controlled, the banks create all aspects of an economy that exist, one simple example is inflation in either direction, every aspect of an economy is orchestrated in every sense of the word, the world could live in a Utopian environment if the reserve banks so choose, everything that has happened, past, present, and future alike in all economies including the good, the bad, and the ugly are controlled events.

Agreed but show me inflation in the US Housing Market...the Private US Federal Reserve Bank has thrown everything & anything at that problem including buying $60 Billion dollars a month on junk mortgage backed securities for what 2 years & nothing...not a peep...no inflation.

By the way that 60 Billion per a month is US Tax dollars - everyone in the US has to pay that money back.

Until they fix the US Housing Market - there will no recovery!

Nope - not happening.

Not sure I understand what you're saying here, that there is no inflation? Regardless of what the Fed says about inflation being at 1% (or whatever) it's not. Due to manipulation of the CPI compared to previous calculation methods of the past we're running over 10% inflation.

As far as homes in the mid 80's purchased a modest 3 bedroom rambler. Sold it for 100% markup 7 years later. In 2006 the same type home cost me an additional 100% inflated price. Housing market is way inflated, or did I misunderstand

reply to post by BABYBULL24


And you can't fix the housing market until people start living in all those empty houses that were foreclosed upon. Only way to fill them is to either loan out some mortgages or destroy the houses so the supply and demand equal out a little better.

I guess they could give the houses away since there is roughly 4 empty houses for every 1 homeless person in the US...but where is the profit in that is what the banks will say. Well except in that it is a quick and easy way to get houses off the market and the loss is less than the cost of tearing them down and cleaning up the mess. But try telling a banker that giving away something for free makes money in the long run. They won't even hand out the calendars hardly anymore nor cash a check drawn out on one of their own account holders without charging a stupid fee.

Bassago

Ameilia
reply to post by Bassago

 

Money News is not a source. It is a spam/advertising site. Money News was reporting rich were dumping stock last year and using Donald Trump's name, before we had a historically high stock market in 2013.

(My personal opinion is it's about to crash, but please don't take this article too seriously.)

I wasn't aware of it being a spam site though they do appear to be highlighting this author and his book. Still the points are valid about the stock dumping as well as the authors prediction of the previous equities and market meltdown.

No foul. I wasn't aware either, until last year when it kept popping up the same couple articles on practically any news page I went to. Money News -- Donald Trump Warns... or Millionaires Dumping Stock Now. Yup, last year, it was millionaires not billionaires. It's a common ad on Fox articles and CNN articles, at least on my computer.

reply to post by Bassago


It's called market manipulation and it happens all the time.

When the big wigs realize that the share price has plateaued, they sell off, and when a companies learns it's most prominent shareholder is lost the confidence drops, the exodus begins and share prices plummet.

Then the big wigs put their ears to the ground and search for the next opportunity, then once it's found they splurge, with drives up confidence and encourages others to follow suit, which drives up the share price.

It's a perfectly good strategy if you can avoid being caught in the act, which most of the Gordon Gekkos are very good at.

wasn't this mentioned last year ?

here is the link

They Know: Billionaires Are Quietly And Rapidly Dumping Millions of Shares of Stock

Fair point all about this being from mid 2013, I even read about Buffett dumping stock back then. The article was listed as updated though the only updates I saw was the book authors explanation on Treasuries effecting the markets.

Still in light of the the hypothetical January meltdown (which I don't believe will happen in January) and inflation issues we are currently having (despite Fed denial) it seemed a valid topic to revisit. Thanks everyone who have already posted. As I said in the OP, the thing I was mainly looking for were options for people who may wish to protect themselves from another catastrophe.

reply to post by Chickensalad


Thank you, Chicken Salad!!