I remember the Carter years. Carter was a good man but had lousy advisors. Unlike today, Biden knows that everything he does crushes the middle class. I was in a hopeless situation. Working for a state university and watching oil go to $20 a barrel. I was looking for a way out and the only way was to leave the state I was in and find a job that paid more money. A big leap for a small frog like me. Raising 3 children and watching my money buy less every week. All the things that are happening is to destroy the middle class. I hope people realize this when they decide who to vote for. Our economy could be leading the world now, but owing to the demonic actions of politicians, we are farther in debt and sinking fast. I see it on the streets where i live. People looking for handouts or begging. It will get worse before it gets better. I got hustled at Wal Mart the other day. We need tax cuts to pump up the economy and not sending our money to a corrupt government in Ukraine. That will not help us. Kudlow says the "cavalry is coming" and I hope he is right. Cause right now I am looking for John Wayne!! Just sayin'
I think that Tom said well , so solution too much debt , game over now that the inflation is here .
Sad for everyone, most of it persons who did not participate to the party during this 30-40 years and now going to pay for it . No party , no leader will solve this problem without pain . Sorry got bad news .
I remember watching Reagan take the oath of office in January 1981 on the TV in the Chief's Mess of the aircraft carrier USS Nimitz. Everyone was so happy to be rid of Carter. Yes, he was a good man, but he was also a foolish man. Reagan was always upbeat, while Carter seemed to be stuck in "eat your broccoli" mode. We need another Reagan (or a Bill Clinton (never Hillary!) if it has to be a Democrat).
Disclosure. Iβm long gold, long silver, have been for years and buy more on auto investment every month. (Which is a great way to not only cost average but also dramatically reduce premiums.). Not investment advice.
I have no idea what will ultimately happen to the price. It could go to 5000 or 500. I donβt need the money, at least not yet. So right now I donβt care. LOL. That could change.
What I do know is this, paper markets in real physical assets should be illegal. No true price discovery is possible as long as an intern can sit at a computer at 0300 and add digits to a screen. The same goes for shorting equities. The ones who argue that shorting is necessary for price discovery are they ones who become wealthy by bankrupting firms and destroying millions of jobs.
The real estate market, albeit imperfect, overinflated, manipulated by global corporations, at least has (mostly) actual price discovery at the end of the day because there is not a paper market for a given property.
Whenever Bill mentions that we owe $90 trillion, I think of Lake Erie, one of the Great Lakes. It stretches 240 miles from Buffalo to Detroit, and is around 50 miles wide. Why? It contains about 127 trillion gallons of water. Every year our debt increases due to inflation and borrowing to pay for things we don't need, and we get closer to that number!
I served in the army through the late '70s. Patriotic bunch, I found; most were not ready to be blindly obedient to tyrants at any level.
Five or six years ago I had a short, amiable conversation with a Marine master sergeant on the way across the parking lot to get our cars. I asked him what the military will do when the president orders them to do something unconstitutional, tyrannical? He said there has been a lot of discussion about that, I assumed he meant among the troops. Then he said simply, they will not follow an illegal order. I heard that through my 1970's filters and felt a surge of relief.
Today 2022 that answer gives me more worry than comfort; 3 years of paralyzing covid orders, incarcerations, seizures of persons and property, endangerment of children and adults with dubious pharmaceuticals, while the courts dawdle over declaring these violations of globally recognized human rights. FBI breaking into Trump's home with guns drawn (?). Private bank accounts worldwide being Cyprussed. Seizure and Civil Forfeiture of private citizens' property in the USA beoming commonplace. 40-60% of Millennials surveyed expressing preference to strong government leaders unshackled by elected legislative bodies.
Maximum Safety Mode seems to be in staying as independent as possible from, and un-threatening to governments all over the world.
I believe that the only peace we can realistically expect over the next few years (and probably ever) is the peace "not as the world giveth" that Isaiah, Gautama Buddha, Jesus Christ, and Muhammad promised. I'm betting my life on locals serving locals.
Since the elimination of the gold standard, the correlation between gold and the US dollar disappeared, so if you think buying gold to hedge against inflation or a market crash is a bright idea, Iβm afraid you are gravely mistaken.
If the gold standard still existed today, gold would likely be trading at like $10,000 an ounce, as some have predicted, but there is no gold standard anymore, and the correlation between the greenback and gold is not there, so good luck amassing gold, itβs the same as buying a bag of potato chips, the price of Doritos will slightly increase over time due to inflation, just like gold. Buy a case of Doritos at $3.99 a bag, next year, you can sell each bag for $4.49, but donβt forget to change the expiration date! π
Perhaps, perhaps. Actually, probably, probably if we were in "normal" times or if we could count on things returning to "normal."
IMO, the combination of the attack on the SWIFT system and US Dollar in general by Russia and China (completely deserved and justified, but that is a different discussion) has the POTENTIAL to throw things for a loop. So Russia pegs one Oz. of Gold at 5000 Rubles and simultaneously goes hellbent building up the BRICS system as an alternative method to settle international debt, thus BYPASSING THE US DOLLAR. As one of the world's largest producers of Energy, they also stop accepting USD as a direct form of payment. This is all happening RIGHT NOW. I said before and I am saying again -
April 01, 2022 is the day that SHOULD Live in Infamy, as that is the day that TraitorJoe (may he hang in piece) instituted the asinine, nation-ending sanctions at the behest of his owners and so that he could "show" the sheep how great he is, then (using a completely immoral and totally corrupt State Department) proceeded to coerce, strong-arm, threaten or cajole the rest of the Western economies into following our economic suicide. The conditions were already ripe for our fraudulent fiat system (being held together as it was by spit, promises, debt and duct tape) to come tumbling down - slowly then all at once. Most any thinking business person or anyone with a lick of economic sense could see TraitorJoe's backfire coming before they could smell it. The Country (and our economy) is just starting to catch a whiff of the foulness in the air and it will soon become a stench that is nearly unbearable for all but the ultra-wealthy (looking at you BB, but not with animus or envy. More like in a "role model" kind of way.)
Finally, when the odor is likely at it's worst, the new Russian and Chinese way of doing things will REALLY take off (they are inviting nearly 75% of the world's population to their dance and the demure countries seem to be few), resulting in the "king dollar" being removed as the World Reserve Currency. Buh bye safety, security and the American Dream in these United States. Meanwhile, the sheep occasionally look up from their phones to bleat on.
Using a little hindsight ahead of time, it all becomes clear. The evil and demonic that truly "run things" see America, her Freedom, her People and her Guns as a YUUUGE stumbling block to their plans. What to do, what to do? War is no good - too much decent infrastructure, developed real estate, cutting-edge tech and bountiful farmland would potentially be on the chopping block. So instead, they have decided to buy 80%+ of our politicians, indoctrinate/brainwash 60%+ of our population, corrupt 70%+ of our Institutions and bankrupt 90%+ of our middle class, all while stealing our elections and robbing our Treasury (We the Taxpayers) of anything and everything they can print, convert and carry off - then viola!!
We destroy ourselves from the inside. After which they can come in and pick up the harmless remnants, building a shit mound in their own image.
But to the point - Gold (at some juncture soon) will go to the moon. Maybe not in PRICE, but in VALUE?
Spoken beautifully! Hell yeah, I am freaken pumped up after reading your commentary! No joke.
Power to Satan! π Iβm fixing on pulling an American Beauty Kevin Spacey, fudge all that noise, get rid of everything I own, and go flip burgers for a living. I want to see if I can be poor and happy! lol, You make a lot of interesting points, especially the Russian/Chinese collaboration scheme that is unfolding before our very eyes.
I personally do not like owning bars of gold and storing them at home, or anywhere for that matter. I do not trust gold or mining stocks at all, and as far as the US federal government monetary system to include bonds, I wouldnβt trust those guys with anything more dangerous than Jello! The Kevin Spacey scenario is beginning to sound all too real!
Only Jesus has power and He defeated satan at the cross , I invite you to join the winning team for eternity... I think that will be my best advice of investment for you that you ll have in you life . Free
PS - one other disadvantage to actually holding PMs are the frequent boating accidents where they all go overboard, along with the registered guns and most of the ammo...
Have notice that since 1971 , there is a very close correlation between usd and gold ... I have , started dealing bases metals in 1979 . Just and example in March 2020 usd start moving donw ag euro from 1,0650 till 1,2350 , gold went from 1450 till 2070.
Then in June the euro started moving south till now 1,2350 till 0,9550 ...
Gold in meantime 2070 till 1620 and so on and so on ... my point is when Sir you find the final
Top of the usd ag eur , sterling , aud , nzd etc etc
You know then that gold will start moving north ...
I think we may have a correction in the usd ag all currencies and that gold may then go up , but just correction . I think we are in a big up trend in the usd ag all currencies and we may see euro ag usd in the years to come around 0,75 and β par consequence β gold lower . I wish I could be wrong I own gold ag usd like most of the subscribers . .
The "price" of Gold (and other PMs) is easily manipulated. For example - consider the huge fines paid by many major banks over the last 20 years for manipulating the "price" of Gold/Silver, the people and organizations that have been caught "rigging" these market sectors during the same span of time, see Moody's comment above regarding the parallel "paper market" for Gold and other PMs (which has major effects on the price), to the example we see at this very moment -
The fact that, considering all the crappy things happening around us, Gold should be WAY UP. But it's not. The price has clearly been manipulated by whomever in whatever fashion for the last 20-40 years, and that interference in true market forces continues to this day. There are many powerful "players" out there that have planned and implemented strategies whereby they benefit by keeping the price of PMs hammered down.
The VALUE I refer to, in a nutshell, deals with what will an ounce of Gold soon be able to BUY? I firmly believe we are entering a time when the "price" of Gold won't matter a whole heck of a lot. However, when you and your family need food, water, energy, shelter, etc., anyone who can sell those essentials to you will be looking for Gold or other PMs as payment. In other words, the practice of pegging the "value" of Gold to a "price" delineated in fake, devaluing fiat dollars is, at it's very core, a fallacy.
Gold has historically been the go-to store of value and wealth, and it soon will be again...
As I said before whenever the usd ag all majors currencies make a final top gold will make a final low . If you look at. History you will see that the top of the gold is exactly at the same date of the boittom of the usd and vice versa ....
1980 bottom of usd ag chf and Deutschmark and yen ... gold 850 is top .... August 2011 bottom of the usd and of course top of the gold at that time 1971 ... and so on and so on
That is a great correlation to know and watch. Thanks for the info.
Also, if we can hold it all together long enough, I believe the Bonner Gold/Dow Ratio is a thing of beauty that will lead to true wealth and life-changing opportunities if it is implemented when the time is right.
Juan, you and I both will keep closely watching the dollar and its inevitable crash through the floor of the basement.
You make some very good points StarboardEdge, however I think that if/when we get to the stage where we are bartering for things with PM's and the like, then most of our infrastructure - police, courts etc - will all be toast already, so not sure that the bad people out there won't just take stuff off you.
A major collapse of society , for any reason, will not be orderly or civilised. Try Cormac McCarthy's "The Road" as a portend of what it might look like - different, but the same.
I am new to the βGold Speak.β I am curious as to why owning gold is better and how to own it. Do people keep boxes of gold coins under their beds, in a bank vault? And why is it better than cash when it seems the two are tied together. We talk about how much gold it βworthβ in dollars. Iβve enjoyed reading these columns. This group seems to tell it like it is with cow towing to the elite. Thank you!
One other note to Pete's excellent point and book recommendation:
Holding physical Gold and/or Silver is not an "investment" in the sense that those that promulgate this strategy are doing so for a large, increasing financial return. Precious Metals (PMs) are held as a Store of Value. A hedge to protect your wealth as much as possible when/as the "money" all around us becomes worthless...
Cash has its uses and so does gold. You are less likely to "spend" gold or sell it if you wish, but the underlying reason is simple, when it comes to gold
Its no one else's promise.
I would suggest a book, to get a better understanding the title is When Money Dies - Adam Fergusson.
At the moment the Dollar king is hurting the long gold short usd ... the ration is still 18 far from 5 .
Yes the gold is high ag sterling , yen , sek , nok , aud , nzd .... but I do remember reading long gold short usd ... and there is hurting . Gold did loose as much as the Dow from 2070.-- than 36950 the index . No safety asset are going yet to save us from this melt down ... not even cash with inflation at this level . Thanks for the missive .
funny but going back almost 25 years I have never seen a previous comment from DR or BPR that stated "Dollar first then Gold" .. all you've ever said is 35/35/30 split across gold/cash/assets which you've subtlety now changed to GOLD first Cash later 35/35/30 .. this is after driving many of us into gold at much HIGHER prices ... oops what's happened ?
We have somewhat inadvertently held on to USD, and hesitated to invest in gold. Over the past several months the USD has increased in value while gold fell, and we figure we made about 15% on that spread. So we just moved some of the cash into gold. We don't need to try to catch the top or bottom. We are looking for the Trade(s) of the Decade - cautiously finding a safe path between those of Tom Dyson and Bill Bonner.
Good timing. A recent Wall Street journal article with title: Gold Loses Status as Haven is the perfect contrarian view. Let it swim for awhile then buy !
I remember the Carter years. Carter was a good man but had lousy advisors. Unlike today, Biden knows that everything he does crushes the middle class. I was in a hopeless situation. Working for a state university and watching oil go to $20 a barrel. I was looking for a way out and the only way was to leave the state I was in and find a job that paid more money. A big leap for a small frog like me. Raising 3 children and watching my money buy less every week. All the things that are happening is to destroy the middle class. I hope people realize this when they decide who to vote for. Our economy could be leading the world now, but owing to the demonic actions of politicians, we are farther in debt and sinking fast. I see it on the streets where i live. People looking for handouts or begging. It will get worse before it gets better. I got hustled at Wal Mart the other day. We need tax cuts to pump up the economy and not sending our money to a corrupt government in Ukraine. That will not help us. Kudlow says the "cavalry is coming" and I hope he is right. Cause right now I am looking for John Wayne!! Just sayin'
Don Harrell
Hi Don,
I think that Tom said well , so solution too much debt , game over now that the inflation is here .
Sad for everyone, most of it persons who did not participate to the party during this 30-40 years and now going to pay for it . No party , no leader will solve this problem without pain . Sorry got bad news .
I remember watching Reagan take the oath of office in January 1981 on the TV in the Chief's Mess of the aircraft carrier USS Nimitz. Everyone was so happy to be rid of Carter. Yes, he was a good man, but he was also a foolish man. Reagan was always upbeat, while Carter seemed to be stuck in "eat your broccoli" mode. We need another Reagan (or a Bill Clinton (never Hillary!) if it has to be a Democrat).
Disclosure. Iβm long gold, long silver, have been for years and buy more on auto investment every month. (Which is a great way to not only cost average but also dramatically reduce premiums.). Not investment advice.
I have no idea what will ultimately happen to the price. It could go to 5000 or 500. I donβt need the money, at least not yet. So right now I donβt care. LOL. That could change.
What I do know is this, paper markets in real physical assets should be illegal. No true price discovery is possible as long as an intern can sit at a computer at 0300 and add digits to a screen. The same goes for shorting equities. The ones who argue that shorting is necessary for price discovery are they ones who become wealthy by bankrupting firms and destroying millions of jobs.
The real estate market, albeit imperfect, overinflated, manipulated by global corporations, at least has (mostly) actual price discovery at the end of the day because there is not a paper market for a given property.
Whenever Bill mentions that we owe $90 trillion, I think of Lake Erie, one of the Great Lakes. It stretches 240 miles from Buffalo to Detroit, and is around 50 miles wide. Why? It contains about 127 trillion gallons of water. Every year our debt increases due to inflation and borrowing to pay for things we don't need, and we get closer to that number!
I served in the army through the late '70s. Patriotic bunch, I found; most were not ready to be blindly obedient to tyrants at any level.
Five or six years ago I had a short, amiable conversation with a Marine master sergeant on the way across the parking lot to get our cars. I asked him what the military will do when the president orders them to do something unconstitutional, tyrannical? He said there has been a lot of discussion about that, I assumed he meant among the troops. Then he said simply, they will not follow an illegal order. I heard that through my 1970's filters and felt a surge of relief.
Today 2022 that answer gives me more worry than comfort; 3 years of paralyzing covid orders, incarcerations, seizures of persons and property, endangerment of children and adults with dubious pharmaceuticals, while the courts dawdle over declaring these violations of globally recognized human rights. FBI breaking into Trump's home with guns drawn (?). Private bank accounts worldwide being Cyprussed. Seizure and Civil Forfeiture of private citizens' property in the USA beoming commonplace. 40-60% of Millennials surveyed expressing preference to strong government leaders unshackled by elected legislative bodies.
Maximum Safety Mode seems to be in staying as independent as possible from, and un-threatening to governments all over the world.
I believe that the only peace we can realistically expect over the next few years (and probably ever) is the peace "not as the world giveth" that Isaiah, Gautama Buddha, Jesus Christ, and Muhammad promised. I'm betting my life on locals serving locals.
The great Dennis Gartman. Hahahaha!
Since the elimination of the gold standard, the correlation between gold and the US dollar disappeared, so if you think buying gold to hedge against inflation or a market crash is a bright idea, Iβm afraid you are gravely mistaken.
If the gold standard still existed today, gold would likely be trading at like $10,000 an ounce, as some have predicted, but there is no gold standard anymore, and the correlation between the greenback and gold is not there, so good luck amassing gold, itβs the same as buying a bag of potato chips, the price of Doritos will slightly increase over time due to inflation, just like gold. Buy a case of Doritos at $3.99 a bag, next year, you can sell each bag for $4.49, but donβt forget to change the expiration date! π
Hi Senor Egypt!
Perhaps, perhaps. Actually, probably, probably if we were in "normal" times or if we could count on things returning to "normal."
IMO, the combination of the attack on the SWIFT system and US Dollar in general by Russia and China (completely deserved and justified, but that is a different discussion) has the POTENTIAL to throw things for a loop. So Russia pegs one Oz. of Gold at 5000 Rubles and simultaneously goes hellbent building up the BRICS system as an alternative method to settle international debt, thus BYPASSING THE US DOLLAR. As one of the world's largest producers of Energy, they also stop accepting USD as a direct form of payment. This is all happening RIGHT NOW. I said before and I am saying again -
April 01, 2022 is the day that SHOULD Live in Infamy, as that is the day that TraitorJoe (may he hang in piece) instituted the asinine, nation-ending sanctions at the behest of his owners and so that he could "show" the sheep how great he is, then (using a completely immoral and totally corrupt State Department) proceeded to coerce, strong-arm, threaten or cajole the rest of the Western economies into following our economic suicide. The conditions were already ripe for our fraudulent fiat system (being held together as it was by spit, promises, debt and duct tape) to come tumbling down - slowly then all at once. Most any thinking business person or anyone with a lick of economic sense could see TraitorJoe's backfire coming before they could smell it. The Country (and our economy) is just starting to catch a whiff of the foulness in the air and it will soon become a stench that is nearly unbearable for all but the ultra-wealthy (looking at you BB, but not with animus or envy. More like in a "role model" kind of way.)
Finally, when the odor is likely at it's worst, the new Russian and Chinese way of doing things will REALLY take off (they are inviting nearly 75% of the world's population to their dance and the demure countries seem to be few), resulting in the "king dollar" being removed as the World Reserve Currency. Buh bye safety, security and the American Dream in these United States. Meanwhile, the sheep occasionally look up from their phones to bleat on.
Using a little hindsight ahead of time, it all becomes clear. The evil and demonic that truly "run things" see America, her Freedom, her People and her Guns as a YUUUGE stumbling block to their plans. What to do, what to do? War is no good - too much decent infrastructure, developed real estate, cutting-edge tech and bountiful farmland would potentially be on the chopping block. So instead, they have decided to buy 80%+ of our politicians, indoctrinate/brainwash 60%+ of our population, corrupt 70%+ of our Institutions and bankrupt 90%+ of our middle class, all while stealing our elections and robbing our Treasury (We the Taxpayers) of anything and everything they can print, convert and carry off - then viola!!
We destroy ourselves from the inside. After which they can come in and pick up the harmless remnants, building a shit mound in their own image.
But to the point - Gold (at some juncture soon) will go to the moon. Maybe not in PRICE, but in VALUE?
Brother, it's gonna be Katie Bar the Door...
Spoken beautifully! Hell yeah, I am freaken pumped up after reading your commentary! No joke.
Power to Satan! π Iβm fixing on pulling an American Beauty Kevin Spacey, fudge all that noise, get rid of everything I own, and go flip burgers for a living. I want to see if I can be poor and happy! lol, You make a lot of interesting points, especially the Russian/Chinese collaboration scheme that is unfolding before our very eyes.
I personally do not like owning bars of gold and storing them at home, or anywhere for that matter. I do not trust gold or mining stocks at all, and as far as the US federal government monetary system to include bonds, I wouldnβt trust those guys with anything more dangerous than Jello! The Kevin Spacey scenario is beginning to sound all too real!
Only Jesus has power and He defeated satan at the cross , I invite you to join the winning team for eternity... I think that will be my best advice of investment for you that you ll have in you life . Free
Like God grace .
With you 100% on that Juan.
IMO, it IS the best investment advice a person could ever hear and take take to heart...
Love your outlook and sense of humor Egypt!
PS - one other disadvantage to actually holding PMs are the frequent boating accidents where they all go overboard, along with the registered guns and most of the ammo...
Have notice that since 1971 , there is a very close correlation between usd and gold ... I have , started dealing bases metals in 1979 . Just and example in March 2020 usd start moving donw ag euro from 1,0650 till 1,2350 , gold went from 1450 till 2070.
Then in June the euro started moving south till now 1,2350 till 0,9550 ...
Gold in meantime 2070 till 1620 and so on and so on ... my point is when Sir you find the final
Top of the usd ag eur , sterling , aud , nzd etc etc
You know then that gold will start moving north ...
I think we may have a correction in the usd ag all currencies and that gold may then go up , but just correction . I think we are in a big up trend in the usd ag all currencies and we may see euro ag usd in the years to come around 0,75 and β par consequence β gold lower . I wish I could be wrong I own gold ag usd like most of the subscribers . .
Much agreed, it simply has to happen.
How can you go to the moon not in price but in value , could you explain , thank you π
Hi Juan -
The "price" of Gold (and other PMs) is easily manipulated. For example - consider the huge fines paid by many major banks over the last 20 years for manipulating the "price" of Gold/Silver, the people and organizations that have been caught "rigging" these market sectors during the same span of time, see Moody's comment above regarding the parallel "paper market" for Gold and other PMs (which has major effects on the price), to the example we see at this very moment -
The fact that, considering all the crappy things happening around us, Gold should be WAY UP. But it's not. The price has clearly been manipulated by whomever in whatever fashion for the last 20-40 years, and that interference in true market forces continues to this day. There are many powerful "players" out there that have planned and implemented strategies whereby they benefit by keeping the price of PMs hammered down.
The VALUE I refer to, in a nutshell, deals with what will an ounce of Gold soon be able to BUY? I firmly believe we are entering a time when the "price" of Gold won't matter a whole heck of a lot. However, when you and your family need food, water, energy, shelter, etc., anyone who can sell those essentials to you will be looking for Gold or other PMs as payment. In other words, the practice of pegging the "value" of Gold to a "price" delineated in fake, devaluing fiat dollars is, at it's very core, a fallacy.
Gold has historically been the go-to store of value and wealth, and it soon will be again...
As I said before whenever the usd ag all majors currencies make a final top gold will make a final low . If you look at. History you will see that the top of the gold is exactly at the same date of the boittom of the usd and vice versa ....
1980 bottom of usd ag chf and Deutschmark and yen ... gold 850 is top .... August 2011 bottom of the usd and of course top of the gold at that time 1971 ... and so on and so on
That is a great correlation to know and watch. Thanks for the info.
Also, if we can hold it all together long enough, I believe the Bonner Gold/Dow Ratio is a thing of beauty that will lead to true wealth and life-changing opportunities if it is implemented when the time is right.
Juan, you and I both will keep closely watching the dollar and its inevitable crash through the floor of the basement.
Bring it on...
You make some very good points StarboardEdge, however I think that if/when we get to the stage where we are bartering for things with PM's and the like, then most of our infrastructure - police, courts etc - will all be toast already, so not sure that the bad people out there won't just take stuff off you.
A major collapse of society , for any reason, will not be orderly or civilised. Try Cormac McCarthy's "The Road" as a portend of what it might look like - different, but the same.
Thanks for the tip John. I think I read McCarthy's book in college, but a lot of that time is now a blur.
I will definitely check it out...
A grim read, but, as things get crazier out there, possibly a timely reminder. Lets hope not
I am new to the βGold Speak.β I am curious as to why owning gold is better and how to own it. Do people keep boxes of gold coins under their beds, in a bank vault? And why is it better than cash when it seems the two are tied together. We talk about how much gold it βworthβ in dollars. Iβve enjoyed reading these columns. This group seems to tell it like it is with cow towing to the elite. Thank you!
Hi Victoria -
One other note to Pete's excellent point and book recommendation:
Holding physical Gold and/or Silver is not an "investment" in the sense that those that promulgate this strategy are doing so for a large, increasing financial return. Precious Metals (PMs) are held as a Store of Value. A hedge to protect your wealth as much as possible when/as the "money" all around us becomes worthless...
Cash has its uses and so does gold. You are less likely to "spend" gold or sell it if you wish, but the underlying reason is simple, when it comes to gold
Its no one else's promise.
I would suggest a book, to get a better understanding the title is When Money Dies - Adam Fergusson.
At the moment the Dollar king is hurting the long gold short usd ... the ration is still 18 far from 5 .
Yes the gold is high ag sterling , yen , sek , nok , aud , nzd .... but I do remember reading long gold short usd ... and there is hurting . Gold did loose as much as the Dow from 2070.-- than 36950 the index . No safety asset are going yet to save us from this melt down ... not even cash with inflation at this level . Thanks for the missive .
funny but going back almost 25 years I have never seen a previous comment from DR or BPR that stated "Dollar first then Gold" .. all you've ever said is 35/35/30 split across gold/cash/assets which you've subtlety now changed to GOLD first Cash later 35/35/30 .. this is after driving many of us into gold at much HIGHER prices ... oops what's happened ?
We have somewhat inadvertently held on to USD, and hesitated to invest in gold. Over the past several months the USD has increased in value while gold fell, and we figure we made about 15% on that spread. So we just moved some of the cash into gold. We don't need to try to catch the top or bottom. We are looking for the Trade(s) of the Decade - cautiously finding a safe path between those of Tom Dyson and Bill Bonner.
Good timing. A recent Wall Street journal article with title: Gold Loses Status as Haven is the perfect contrarian view. Let it swim for awhile then buy !
Correction, βwithout cow towingβ¦β