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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

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To: TobagoJack who wrote (157394)5/2/2020 12:52:31 PM
From: bull_dozer  Read Replies (1) of 217605
 
Should I own physical Gold?

When Clients ask us this question, we usually suggest they consider a very ‘small’ physical gold holding on the basis of an ‘insurance’ principle (i.e. you hope that you’ll never need it in your lifetime, but it is put aside as insurance against some drastically negative ‘low-probability’ possible outcomes).

However, holding physical gold in some sort of jurisdictionally diversified manner can be more complicated than it first appears. For example, the possession and use of gold can be ‘complicated’ in an environment where the value of life and the integrity of a contract has been dissolved or is becoming unreliable (see some of what we discussed on the previous page under ‘What underpins a currency’).

You will own your vaulted gold on the basis that a contract will be honoured (i.e. the same or a similar underpinning as your fiat currency). Your claim on some gold in a vault is predicated upon a contract having integrity & enforceability both now and into the future. A banking and financial system exists (as does most of our modern world) because a contract has both consequence and value in the context of an effective judicial & policing system. Absent the reliable rule of law…

Gold only works in the absence of excessive risks to your life and property (i.e. can you operate in an environment where contracts could potentially mean little, which in extreme means that you have a gun and are prepared to use it to enforce your claims over property?).

How do Prerequisite’s tools compare to Martin Armstrong’s capital flow models

It is surprising how often we have this question come up from clients. We consider Armstrong to be an exceptional analyst. But quite frankly, having explored Armstrong’s publicly available materials quite extensively on the subject, we are still none-the-wiser as to the practical realities underpinning how he measures capital flows… he tends to be quite opaque when it comes to detail on his methods, which is understandable.

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In summary, we don’t really know how Armstrong does what he does – however we have found immense practical utility in our solutions (that have been born out of necessity and a rigorous dive into the first-principle underpinnings of various phenomena in the world)… at times what we do and what he is talking about do seem to correspond, and at other times they don’t.


We don’t always agree with Armstrong’s conclusions, but we can frequently appreciate why he thinks the way he does. He is both an interesting person and an exceptional analyst. We find it intriguing how often his name will come up in discussions among a subset of our clients.

prerequisite.com.au
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