Amusing rant…from an SEC employee..”We all know Gold is a bubble”…

Get past the first paragragh to read a rebutal of sorts~jude

Submitted by Tyler Durden on 03/09/2010 16:26 -0500

Former Bridgewater-ite (which we hear is not doing that hot lately) Rick Bookstaber, who was recently appointed at the SEC in some risk management capacity, comes out with a truly amusing rant on why gold is in a bubble, and, not just that, but that “we all know gold is in a bubble.” Ignore the fact that all multi-billionaire hedge fund managers have been loading up, all relevant and semi-relevant pundits have been claiming that gold is gradually becoming the one alternative to fiat debasement which has recently become a global phenomenon, and ignore that even with the dollar going up, gold has defended its 1,100 an ounce price quite successfully. Bookstaber compiles vivid imagery upon even more vivid imagery, and goes as far as comparing the quest for gold with the pursuit of hookers “Even if a guy is just after sex, he at least has the decency to act like there is some substance behind his interest. But with gold, no one seems even to care about giving a justification, other than “gold has been a store of value throughout 5,000 years of monetary history”. No one? Dear Mr. Bookstaber, feel free to peruse the following thoughts by Eric Sprott, Dylan Grice, Hugh Hendry, David Rosenberg, Fred Hickey, Jim Grant, David Einhorn and last but not least, Goldman Sachs, on some contrarian opinions to your prevailing dogma. And speaking of unconflicted advance warning vis-a-vis ponzi bubbles, where was your current employer cautioning the general population about the dot com bubble? Or the housing/credit bubble? Or the Madoff ponzi? Or the current Great Currency Deflation Bubble? Perhaps you can expend your time and energy on the real source of soon-to-be unparalleled wealth loss instead of focusing on the fringe “tin foil”-hatted gold community which nobody takes seriously anyway (except India of course which just incidentally bought 200 tons of gold north of $1,000).

From the SEC-member’s blog:

The Gold Bubble

This represents my personal opinion, not the views of the SEC or its staff.

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‘UNPRECEDENTED DEMAND FOR BULLION COINS’

GOLD NEWS

‘UNPRECEDENTED DEMAND FOR BULLION COINS’

Despite the inability of the U.S. Mint to acquire sufficient blanks, both gold and silver bullion coins smashed sales records due to unprecedented investor demand in FY 2009.

Author: Dorothy Kosich

RENO, NV -

Uncertainty surrounding traditional investment and inflation concerns drove investor demands for bullion coins to exceptional highs last year, the U.S. Mint said in its recently issued annual report.

The U.S. Mint sold 27.6 million ounces of gold, silver and platinum bullion coins in fiscal year 2009, a 132.3% increase over annual bullion sales since FY 2005.

Total bullion revenue for the mint achieved a record high of $1.7 billion in FY 2009, a 78.65 increase from $948.8 million in FY 2008.

As bullion coin buyers were well aware, the U.S. Mint was initially unable to acquire sufficient planchets (blanks) to satisfy “the unprecedented demand for bullion coins.”