Warning Slopers… GOLD BUG ALERT!! 😉
This morning's email from gold general Jim Sinclair – under siege yet
again from the troops in the "community" – prompts this morning's post.
Mr. Sinclair often writes with a war mentality pitting the gold
community against the evil bullion banks – and a good chunk of the rest
of the financial world. Don't get me wrong, I think there is plenty of
evil out there (it seems that on Mondays following a meeting or
conspiracy of the assembled dignitaries in the G20 my investment
accounts take the hit) but apparently a good chunk of the "community"
gets its panties all in a bunch every time gold takes the hard hit.
That is because nearly 10 years into the secular bull market in the
rebellion against dishonest monetary systems a casino mentality – so
well formed through the previous 20 year secular bull market in paper
assets (stock certificates, bonds, derivatives, etc.) – remains intact.
This includes a great number of self-described gold bugs in my
opinion. In other words, the "community" does not tend to believe its
own bullshit on balance. If they did, they would see opportunity or at
least sit tight during these phases that have been all too common all
the way up since 2001.
There is an opportunity to own value shaping up and I suspect the usual
casino players will fail to capitalize while the minority capitalize
once again. Missed the last buying opportunity this space identified in euros? Well, another opportunity is on the way.
Who will capitalize and who will be immobilized by fear? Gold in USD
is also presenting an opportunity. In fact, name me a major developed
society that is not tramping out its currency for the purpose of
manufacturing politically expedient economic growth and I will show you a
society of relative value from an investment standpoint. There are
those in ascension and it is no coincidence that those are targets for
my investment dollars in the big picture.
For now, gold is a monetary value anchor and in a world of eroding
confidence in politicians and policy makers who use official paper and
digital money, gold represents value; nothing more, nothing less.
Still, it is always great to exchange confidence paper for value when
value goes on sale. You do not buy gold when everybody loves
it. You understand who you are and if you perceive that your personal
situation is in need of this value anchor you buy gold when the public
hates it, when the speculators (ultimate casino patrons) are dumping and
you-know-who is buying or buying to cover.
The battle was won in 2008 when an uber-opportunity presented, most
failed to capitalize (thank you deflation proponents) and then snapped
back faster and better than most other assets and asset classes. Is a
drop to 950 (on radar for many months in NFTRH) out of the question?
No, nor is the long term battle line at around 870 for that matter. Do
you think anyone who has understood what is and is not monetary value
since 2001 is pained by these numbers? They are just numbers and they
are 150-200% above cost basis in many cases. And by no means are these
downside targets shoe-ins in my opinion.
So whatever you do, sit tight and realize that what is happening now is
all part of the game and for some it is a time of opportunity as value
goes on sale. It is really no more complicated than that.