I'm responding to your post here:
Message 21233185
"three neednt be many folks globally looking to save their wealth with some of the barbaric relic"
Perhaps I didn't get your point. You're saying lift-off could be achieved with a small number of people investing in gold?
I suppose Warren Buffett, Bill Gates and Ted Turner could achieve lift-off, if that is what you mean.
Like I said before, the launch of GLD has so far underwhelmed in its ability to push POG higher, and we all thought accessibility and storage were a problem...apparently not.
If GLD isn't the catalyst, then is liftoff possible?
POG may break out in 3 or 30 years. (I am reminded of Jimmy Rogers saying he saves gold for his baby girl)
It's all about the timing..what if Buffett took the plunge and POG didn't rise and Gates and Turner reneged? Isn't that precisely what is happening? All the tons in GLD didn't create the groundswell, so the Arabs keep on buying T-Bills and so do many CBs.
If China and Japan want Iran to be slapped around, buying T-Bills has got to be the cheap option. The US is maybe a bad cop, an overpaid, fat cop, a corrupt cop, but the best cop around nonetheless. So, his fees are high, but you put him on the take.
Switching from T-Bills to gold would be like telling your cop on the take, (who is in NY and has never been outside Manhattan say), that from now on all payments for services will be in Iraqi dinar. Good luck exchanging it you tell him.
You'd better have a backup plan. Does Japan have a backup plan? Europe is about to try the diplomatic route on Iran and if that doesn't work Bolton will roll the big guns proposal throught he UN and we'll be in Iran. It doesn't seem timely to drop buying T-Bills right now, does it?
I am reminded of that credit card commercial:
Bunker buster program: $500 million US dollars
Regime change in Iraq: $200 billion US dollars
Regime change in Iran, Afghanistan : $300 billion US dollars
Enjoying world peace so you can sell prohibited weapons and technology behind each others backs: priceless
For everything else, buy US T-Bills |
