I admit that the inches used in financial relativity theory continue to shrink rapidly with each quantitative easing, fiscal failure, fiscal cliff and general dilution which will continue apace as the profits of control are greedily consumed by the friends of the Federal Reserve. Therefore, gold will continue to grow in financial size as it has always done when measured using shrinking inches.
I will even admit to more than a passing interest in the current price of gold and GLD and whether it might not be a suitable place to dabble once again. Heck, I have even contemplated where I might store some gold bars. But I recall burying silver about 55 years ago and my hiding place was apparently discovered, perhaps by an older sibling observing me from afar. I had another stash of silver several years later, in my cupboard, and that was stolen [I have no idea who dunnit but presumably some family or "friend"]. So I have some experience with precious metals and the risks of storage. Fool me once, shame on you, fool me twice, damn that's annoying, fool me three times, "Hey Mq don't you learn?".
My big short of GLD at the peak was fun and profitable. Maybe I should do another dabble. First, it would be nice to see a fall such as that in the mid 1970s from $200 to $100 which you mentioned. That would put gold at about $900. Let's see what the price of oil does with all the methane coming on stream. As you know, gold is made out of oil so if oil gets cheap, gold does too.
$900 should get some Gold Bugs squealing.
Mqurice |
