Hello AS:
You have made many good reasons for why there should be no money or profiteering in gold or other commodities. Do not get the wrong impression about me as I view the recent tragedy as despicable and a violent act of terrorism. The perpetrators should be caught and brought to justice. I hope the human tragedy and loss of lives of all the innocent people will not be meaningless, that this event may help us all to find ways to resolve as much world conflict as may be possible, both now and in the future.
The following is my reason for investing or holding gold. When gold was debased by the central banks, miner stocks shorted by the financial giants in money centers, borrowed/leased from central banks and sold cheap and cheaper on world markets; all this done for many years of late by greedy financial money managers, the world has seen the price of gold fall in a bear market for nearly 20 years. Those money managers went home and slept well for night after night; while poor nations had to literally debase their own resource to extract more to sell at a cheaper price. It was their only life-long means of income. The British fought the Boers War over the ownership of gold mines, taking the mines from people who took them from the natives of the lands of South Africa. The British took gold from the mines for years to finance their world domination. Just as the Spanish took gold from the Aztecs to finance their dreams of world domination for near hundreds of years.
Did not consider investing in gold miners and exploration companies until I learned about the cyclical nature of the commodities the hard way. I was invested in oil company shares in Summer of 2000. Did hard research to pick the financially best of the best. Lost money big time. Had intended to buy and hold. When I lost so much due to the selloff after gasoline storage had topped out that summer, it took me a while to find out why. The reason is it is a cyclical commodity, hyped up at the top and sold off even though the fundamentals of the companies in the sector are still in best of shape. Thus: If gold is cyclical as well, if the entire financial community treats the miners with disregard, if the federal authorities conspire to degrade the only livelyhood of millions of innocent peoples of nations that live in dire straights; please forgive me: If I invest in a commodity that is at the bottom of the cyclical trough; before most others even looked at that form of investment; months and or years before the price of the commodity moves to return to historical levels, let alone any higher level of price due to any crisis.
I entered my gold positions when the price was at 252.00, is that scalping the innocent? I wait for my investment to mature, with no guarantee of return. It may be years before an acceptable return. My reason for the selection is that I see the financial community ruining the mining companies with lower prices, gold sales, gold leasing, etc. I see less numbers of these mining companies with more frequent mine closures, nearly one per month as of late. Perhaps demand will outstrip supply before the central banks have sold all the gold that was to be held for the citizens of each respective country as the value backing their currency.
It is not my fault that the price of gold will rise at some future point. But if demand remains strong as it has throughout history, the price will increase and I may get a return on my investment. Hope you can understand.
Also: Heard another individual was investing in this manner. He too was called to hold blood money. Just whose blood has been spilt for the gold we now have above ground, and who do you feel has suffered the most to allow even you to hold gold. Perhaps it is your faulty perception not to hold gold. I hold my investment to protect my family from the devaluation of my previous savings and investments.
Are you going to denounce the talking heads of the market makers when and if they try to hype gold to you; as they have done the last twenty years for shares of all the other market sectors, on a rotating sector basis? Have you seen bear charts of sectors over the period of this year and last? Have you heard the wall street hypester as they try to sell shares of technology companies, only to see those companies sell-off on news of share dilution, bad earnings, etc. The entire market is a shell game in bad times and the only way to protect assets is to not play the game according to the market hypester and the companies they represent. Right now it is a business of longs, shorts and short-squeeze bear rallies. It is a flat out business. Maybe in years from now it will be a business of the buy and hold type of investor, not now. Blame for the fiscal crisis, cause of this global recession, which has created current situation; does rest on many shoulders.
Hope you got cash or PMs.
Respectfully Submitted;
Rails |
