hello haim, the gold buying hf are now in the same position as folks were in thailand, korea, indonesia, selling the only asset that remained liquid when hell froze over during asian financial crisis
the hedge funds who bought gold should be congratulating themselves, for they could have instead bought aud, cad, oil, ... gs, fannie, freddie, ge, gm, ... iceland anything
i think the folks of argentina back then, and of zimbabwe now, would really have been quite happy had they bought some gold to mineralize their savings when they could
the folks of japan probably wish they had mineralized savings in gold, and even platinum, instead of turning their savings into australian sand and new zealand sawdust
else how can gold be sold by anyone when nothing else could be moved?
gold @ 400? could be; but, tell me, in a crisis, if gold went to 400, what would the dow be? how about that lovely house in the poshest neighborhood in any town?
we are at the beginning stages of a systemic and galactic-wide monetary crisis where banks cannot trust banks, and governments are suspicious of governments, and the situation is complicated by a number of other issues no less trivial, and underpinning the sum total of all clear and present fears is the prime fear of all leveraged players, that they are going down fast, together, with no more opportunity to fight another day - and so they are selling everything, and certainly anything they can sell. at the moment, they are the market, selling, then selling some more, puking up breakfast, then getting back to selling, coughing up blood, then back to the desk, to sell, wiping away the bloody tears, and sell some more.
this is drama, in real time.
gold is standing up quite well to the selling, being transferred from weak, trembling, clawing, clammy, and then broken hands, to strong grasp
you do see that gold is redemption when no other path to salvation is, because it is certainly true, and that gold saves lives, because it is that good
the officialdom will do what they must to keep the walking dead walking a few moments more, pumping in what they call liquidity, whereas we know that was the very poison that did the dirty
what gold is doing is beyond debate, it has held its value, and its real price is rising, relative to just about everything else
what gold will do is not really for debate, because if i am wrong, i cannot afford to debate, and should i be proven correct, i do not have to debate
we have nothing but history as our guide, for none of us had been here before, and the ticker tape as our witness, we go forward
cheers, j |
