Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Who is Spreading the Virus? UK Coronavirus 2nd Wave Analysis - 30th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part II - 30th Sep 20
The Only Thing Systematic Is The Destruction Of America - 29th Sep 20
Fractional-Reserve Banking Is The Elephant In The Room - 29th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part I - 29th Sep 20
Stock Market Short-term Reversal - 29th Sep 20
How Trump co-opted the religious right and stacked the courts with conservatives - 29th Sep 20
Which RTX 3080 GPU to BUY and AVOID! Nvidia, Asus, MSI , Palit, Gigabyte, Zotac, MLCC vs POSCAPS - 29th Sep 20
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Gold Correction or Price Collapse?

Commodities / Gold & Silver Apr 07, 2008 - 01:01 PM GMT

By: Darryl_R_Schoon


Conduct your victory as a funeral - Tao Te Ching , Lao-tzu

Gold's recent sell-off from a high of $1033 has sent once jubilant gold investors to the sidelines to reassess gold's present malaise. Rest assured, gold is going higher, much higher. While there will be corrections along the way, gold will someday break out and explode upwards towards yet to be reached heights.

But when gold does reach that record level, it will not be an occasion for celebration—on that day there will be no dancing in the streets, there will be misery.

$1000 gold is a milestone—on the road to hell - Professor Antal E. Fekete

In How To Survive The Crisis And Prosper In The Process , I describe the 5 stages of gold that precede and occur during what I call The Time Of The Vulture . We are currently in stage 3:

STAGE 3: THE PRICE OF GOLD BECOMES INCREASINGLY VOLATILE. The price of gold is subject to increasing highs and lows as large investment funds move in and out of gold as global economic uncertainties wax and wane, a sign that gold is increasingly a haven in uncertain times.

How To Survive The Crisis And Prosper In The Process, page 92

This is where we are today. Macroeconomic factors such as the decline of the US dollar, the collapse of credit markets, the deflating of the world real estate bubble, the failure of banks and hedge funds, etc., are now joined by rising tides of speculative money moving in and out of gold seeking short term gain, thus subjecting the price of gold to increasingly volatile price swings. Until stage 3 ends, gold's volatility will continue.

Nonetheless, gold's determined rise over eight years confirms that a system of paper assets, irredeemable paper money and increasing levels of credit and debt is doomed and bound to collapse; and, so we buy gold and silver as insurance against that coming day and wait for the inevitable trajectory of the precious metals.

The inevitable will come but when it does, it will not be a time of rejoicing; for the collapse of paper assets and the rise of gold and silver will come at a horrific cost. Those who invested their family's future in stocks, bonds, property, and paper assets will suffer greatly when the collapse occurs—and the magnitude of that suffering will affect us all.


On November 17, 2006 , Martha and I were at the University of Chicago to hear Professor Antal E. Fekete deliver a talk before the MBA class of 2007. When we heard Professor Fekete had been invited to the University of Chicago , we knew we had to go; for the University of Chicago was synonymous with Milton Friedman, the Nobel Laureate, with whose theories of monetarism Professor Fekete strongly disagreed.

That Professor Fekete was to speak on gold at the University of Chicago was similar to Martin Luther speaking on the Reformation at the Vatican . But Professor Fekete did not deliver his intended address—the day before he was to speak, on November 16 th , Milton Friedman, the father of monetarism, died.

I told Professor Fekete that Friedman's death the very day before the professor was to speak at Friedman's academic home was evidence of the finger of God denoting a shift, a cosmic sign that presaged the end of monetarism and the beginning of another era in which the professor would play a critical role.

Out of deference for Friedman's passing, Professor Fekete did not deliver his prepared talk which was highly critical of Friedman's theories (his original speech is included in the appendix of How To Survive The Crisis And Prosper In The Process ); instead Professor Fekete addressed the MBA class on the increasingly fragile nature of the economic world which they were about to enter.

The professor's words of warning, however, did not deter the student's belief in the world of paper money and paper profits that Friedman's theories proffered. The MBA students had studied too hard for their chance at the wheel of fortune, the wheel to which MBA graduates from the University of Chicago and other top programs were privy—the wheel which was to unexpectedly falter when credit markets were to suddenly collapse nine months later in the summer of 2007.

Today, 17 months after Professor delivered his cautionary words to the MBA students, their intended destination—the credit markets, the crap table of investment bankers and the trough of government largesse—are still frozen and remain locked in a now life and death struggle for survival


During his life, Friedman was awarded a Nobel Prize for his contribution to economics and was a distinguished member of the prestigious Mont Pelerin Society. Instead, Friedman should have been knighted by the ABA , the American Bankers Association and given special recognition by the BLA, the Bankruptcy Lawyer's Association, the real beneficiaries of his life's work.

Markets dependent on credit-based paper money produce increasing levels of debt until the amount of debt becomes unsustainable. This is where we are today. The growth, contraction and coming collapse of debt based credit markets is Friedman's legacy, not free markets. Friedman's theories gave bankers the intellectual cover they needed to indebt America beyond its ability to repay and indeed survive. Hailed as the champion of the free market, Milton Friedman was instead, its leading assassin.


At Session III of Gold Standard University Live (GSUL), Professor Fekete made a stunning prediction—that gold would be cornered. The professor noted that although speculators have attempted to corner markets in the past and failed; this time, with respect to gold, it will be different.

The professor said that gold will be cornered not by speculators, but by widely dispersed market forces. The corner will be a true black swan event, spontaneous and unexpected, driven by a sudden overwhelming need of the marketplace for a safe haven for savings and wealth, the safe haven of last resort—gold.

When this happens, most speculators will be locked out, as they will have waited too long to buy in, as they attempted instead to try to coax a few more dollars out of their favorite paper dollar dispensing machine.

When this occurs, Professor Fekete predicted gold will disappear off the market. The collapse of paper will be so catastrophic that gold will not be exchanged for any amount of paper money, sic money, paper, government denominated coupons with ascribed units of value printed on their face denoting face-value.

When paper money begins to quickly lose value, the collapse of debt-based assets will gather speed and Professor Fekete's predicted corner on gold will spontaneously occur. On that day, The Time Of The Vulture will have arrived and gold will be literally priceless

Note: I will be speaking at Professor Antal E. Fekete's Session IV of Gold Standard University Live (GSUL) July 3-6, 2008 in Szombathely , Hungary (see ). For those interested in monetary matters and gold, the opportunity to hear Professor Fekete speak should not be missed. Professor Fekete, in my opinion, is a giant in a time of small men.

Darryl Robert Schoon

About Darryl Robert Schoon
In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later.

In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters.

In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues.

When I discovered others in the PDN shared my concerns about the US economy, I began writing down my thoughts. In March 2007 I presented my findings to the Positive Deviant Network in the form of an in-depth 148- page analysis, " How to Survive the Crisis and Prosper In The Process. "

The reception to my presentation, though controversial, generated a significant amount of interest; and in May 2007, "How To Survive The Crisis And Prosper In The Process" was made available at and I began writing articles on economic issues.

The interest in the book and my writings has been gratifying. During its first two months, was accessed by over 10,000 viewers from 93 countries. Clearly, we had struck a chord and , has been created to address this interest.

Darryl R Schoon Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules