Ultimately, he who owns the gold makes the rules.
Is that a miss quote of Murphy's law? {No relation to Bill}
Whoever has the gold makes the rules.
As ownership need not lead to control.
So you want to play with Wall Street, you better know the game. The enemies of gold are not the liberals, conservatives, democrates, or republicans; it is the people. Those that would sell their parents into old folks homes cause they can't be bothered with the time it takes to talk to them. The bleeding, belly aching Americans that would sell their soul for 1% more on a 401K. The cry babies who drive Jaguar S-TYPE cars, and complain about the price of gas. This thread is full of the same that want 40% growth year end over, and don't want the monetary policies that go with it. You can have all sectors grow at the same rate. To do so in any economy would require inflation to be sector based, and that just is impossible.
So gold has to take a back seat to monetary growth, so be the nature of Wall Street, so be the nature of the FED. And the CB, Hedge Funds, and Bullion Banks {triumvir} supply the needs of the many, while the FEW suffer. Not are commodities have defined cycles, but all commodities have a term. What is the term for gold? That is the CB optimum return on growth with a minimized inflation, And you won't find that on the cereal box of a gold producer/hedger; but they all read from the same pages.
So when the piper sounds his horn, will that make a change of heart for the Triumvir? No. Growth need not lead into monetary, political or even economical disaster. The eulogy of gold should read:"It served CB's, and thus the people well. But it to must fade into a commodity only.". And up to now the fullness of gold has not leant itself well to the CB's and the people of any country. It is a hard asset to which hedge funds can play against currencies, knowing full well that you need to either defend or be defeated. And in either case they get what they wanted. So in scrolling up we see that those that actually have the gold, are the hedge funds. And in that case they have already won.
In fact that slow whimpering sound is the gold hedges closing:
members.home.net
members.home.net
They've been closing their forwards, hedges, swaps, carry rate well back to Dec 98. But you guys have all been missing it. That's when the viability of the hedges started to break down. The data demonstrates that, but here everyone is looking to lay blame. Let's all support GATA, they'll help us prove that we are to ignorant to play with Wall Street, Bay Street, Howe Street, or Main Street. The common investor here picks his equity based on hunches, guts and lame ego advice. The first chart above Doesn't show one thing.. The future direction for the POG. But he who has wisdom and direction need only look to the FED to see that while interest rates are falling, while M2/M3 are climbing the US dollar will rise, AND thus the POG will fall. And growth will abound.
So when is/was the time to short:
You compare the charts, and let's see if history repeats.
members.home.net
members.home.net
members.home.net {M3/M2}
members.home.net
members.home.net
members.home.net
If you believe that M3/M2 growth is over, and is turning negative, then you better buy all your GOLD stocks now. But make sure you read the M2 and M3 charted data correctly.
Hutch.
PS: A new bull market has already started {now just 2 weeks old}:
members.home.net
members.home.net
Just the like of Wall Street hasn't told you guys yet. |
