i suggest the chinese in beijing to sell land and buy gold, or hold land and hold gold, but not to sell land and sell gold
whereas i know some who hold much physical gold, in amounts in excess of 7, 8 and 9 digits, i do not know anyone selling physical gold, and currently physical gold is being bought, to add, in taiwan at least, hong kong certainly, and who can know where else until the dust settles
the issue is paper gold vs physical gold. i have both physical and paper gold and i fear the prices may diverge at some juncture given the gaming is being played, and once / if so, it could be like when the money market broke the sacrosanct dollar, signaling / ringing the bell for the collapse of the shadow banking / paper market -
need to focus think about different flavors of gold as they are not all equal
once the printing gets underway again, in earnest, yes, even equity shares would rise, trailing physical gold, but may beat paper gold - ouch!
a compilation of comments just sent out, for discussion purpose
From: J
Sent: Tuesday, December 20, 2011 6:28 AM
Subject: 2012, beyond, TeoTwawki, and Gold - more discussion welcomed
Goal: protect capital, by staying away from true risks
Strategy: as and when we can not beat gold by even trading gold, we must sincerely engage with gold
Tactics: the opportunity to engage w/ leverage shall soon be ?
Technical: waiting for anybody's signal on all things gold, nothing but gold (the trade in paper vs physical and the interaction between the two may keep w/i expectation or surprise either pleasantly or ugly, depending on how many time the paper inventory (that which may be crushing) is of the physical hoard
Fundamental watch n brief:
(i) liquidation and monetary flow on both sides of the atlantic
(ii) liquidation and monetary flow on both sides of the pacific
(iii) politics and geo politics
Short term observation: correlation is almost 1 amongst everything except the dollar and mcd :0) and when such, dollar must be made to fall, else all over for all
Assumption: capital is not and cannot be the usa or zimbabwe dollars, that which is only a carry currency, an unit measure for flow
Premise:
(i) debt pile crush
(ii) employment crater
(iii) screaming population
(iv) paralyzed politics
(v) fiscal prudence? (we shall watch n brief)
(vi) monetary imprudence must step-up, else
(vii) bloody revolution, and in any case
(viii) enhanced draconian controls in order to support monetary step-up (i.e. capital controls, currency wars, goods flow manipulations)
(ix) enlarged tyrannical laws to support enhanced draconian controls (99 against 1, 98 vs 2, 97 set off 3, etc), as
(x) all shouts in cacophony, "just one more drink"
(xi) gold is a parachute, and the monetary system is an airplane
had we been dealing with biz cycles, i would say things have changed as gold craters
but as i suspect we are dealing with dying anguish of monetary system once per forever, and birthing cries of once every so many eternities,
and i continue to expect the great equalization of per capita cost the hard way and leveling of every family revenue the harder way
the ways must be made easier by dilution, else war, which is the hardest way
i intend to remain truer than true, as things really are phase-changing
while the correction of gold has been unpleasant, it handily beat a lot of other strategies (long only, short only, naked this, fully covered that, long and short, short and long, relative value, no value, bottom-up fundamental, macro top-down factoids, triple bottom technical, double shoulder mechanical, bloody shoulder computer gaming, head on flagpole casino gaming, round-and-round day trade, quaint philosophical to n fro, steadfast principle zig n zag, astro, animal guts, tea leaves, very busy do something, very hectic do anything, paralyzed do nothing, etc etc) this year as players twisted, turned, contorted, gyrated, smile genufleck-ed, grimace butt xxxxxx, and in general got very messed up
whatever else is happening, gold has been true
and fine, as long as one did not game with it by trying to be too clever by a quarter, half or three quarters
whatever else is happening, gold has been true
"Given the recent moves in gold, it might be a healthy reminder to see Gold on a decade-long logarithmic chart. All is well in this case..... ... m"
and fine, as long as one did not game with it by trying to be too clever by a quarter, half or three quarters
notes to self - sermon for the season:
dear father in heaven
our lord be thy name
your dispensation be our game
forgive us for our daily bets
as we try to punish those who wager against you
remind us, always and again
fiat money is just a number
deficit payments only a flow
balances merely simultaneous equations
no such thing as a null set solution, at the sorry end
all fiat monies die, without exception, since the beginning of time, and until the end of nights
point, line, slope, parabola, hyperbola, asymptote,
and so we aim to reach you, full up with earthly learnings,
to sup on heavenly wisdom, at infinity
the grand prize is platinum, the path to prize is gold
amen.
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