Sunday, October 2, 2016

Physical Gold Is Not For Everyone

Holding physical gold in one's possession for an in-determinant amount of time can be annoying for some, even agonizing for others. Few of us "in the West" are willing to bypass a chance to profit from "the market" with our surplus fiat earnings, especially those who see gold, in physical or paper form, as a "market play".

I do believe that the eternal "longs" over at the Speakeasy are well enough along to avoid the annoyance of regret - that constant itch that most of us are bred to scratch.

Some of us, though far from well off, hold gold as a statement of principle. We stand for a world where an honest day's work earns an honest day's pay, and any surplus from our labor bears an honest way of saving for the future. We vaguely remember such a time, years ago, or at least we remember the fantasy of that memory, more or less, as our heritage.

We look at our world today, and we see what it takes to earn a living, and we cannot help but to notice how the concept of an "honest days work" has changed. In corporate America, lying cheating and stealing seems to be an "acceptable cost of doing business" and in the world of finance especially, fraud (as on the recent epic scale of Wells Fargo for example) seems to be an increasingly acceptable cost of doing business. Getting caught is now the bigger problem, but why worry, as the punishment is generally far less costly than profits from the crime. I have commented many times throughout this blog about the changing role of various classes in the U.S. Perhaps the term "working" no longer fits the middle class, and the upper classes lean mostly toward being a criminal class, on a scale that makes "organized crime" of the past seem childish.

We do have the growing classe-politique, the administrative class, the re-distributive class, the litigious class, the predatory class, the entitlement class, the gaming class and the subservient class, but somehow "working" seems oddly out of fashion these days. Perhaps because our society no longer "works" the way it used to. And of course, the common thread among all is the "investor" class, whereby profit in a clever game of chance is the greatest pinnacle to aspire to - that ultimate "something for nothing" gain that comes from the strenuous diligence and studious attention to our casino markets, with the allure of an all expense paid vacation to Las Vegas.

We have glorified this "props for the show" mentality of image over substance to the height of absurdity - a Presidential candidate complete with bankrupted casino properties on the East Coast and a 64 story luxury hotel in Vegas.

And we wonder how the world became this way. A few of us understand that it is our cultural values that have changed because our money has changed - a metamorphosis that endlessly repeats itself in the cyclical history of fiat money evolution over the ages. Changes in "legal tender" are subtle as compared to changes in regulatory law such as the abolishment of Glass Steagal, and the usage of QE (having a direct impact upon legal tender law) goes unnoticed. Such are the tendencies of "wealth issued by decree" whether denominated in fiat money, securities or other derivative forms unchecked by freely traded markets of the past.

And so some of us hold gold, not for some windfall profit that may never be realized in our lifetime. Some of us hold gold because it represents a better world, a better people and a better time. We hold gold as a statement of our intent to bring about (as much as any of us ever can) freely traded markets, whereby "wealth" is not issued by the backing of a single nation's debt, to achieve power and wealth by favor in a manipulable system. We could think of our "play" as being hopelessly naive and shamelessly Pollyanna if gold was not such a coldly objective measure of wealth.

It is the final play for ALL wealth Giants, good or evil. Gold does not favor virtue among generational wealth, for wealth is always and forever above the law. But for the little people, honest money and honest markets can bring some measure of self worth, in a world where self-worth is stamped in debt and ordained by decree.


  1. Sometimes it is impossible to explain some subjects, some topics can only be truly understood through real life experience. Unfortunately, “life” can be a harsh teacher, but it is oh so thorough. I have a feeling that a lot of hot house flowers are not going to weather the financial hurricane that is about to be unleashed on world markets. A very few people will be exceedingly glad because they have a “gold” hurricane shelter.
    Jer 12:5 If thou hast run with the footmen, and they have wearied thee, then how canst thou contend with horses?

  2. I do think many similarities to 2007 - 2008 are about to unfold in this 4th quarter of 2016.

  3. There has been, for a long time now, a sense that something like 2007-2008 is about to unfold, but then... I don't think that the government/central bank alliance will permit such a fall or crash, at least I think they will do everything in their power to prevent it, and they may succeed for quite some time yet. Just look at the German central bank, it seems like it is about to fail but now comes a promised bail out. Look at the Fed's recent statements that it might consider buying corporate stocks to keep things going, to keep stock prices rising. My gut feeling says all these shenanigans have to end at some point, at some point all this debt will have to have its day of reckoning, some day, debt will no longer find its cures in more debt... but when will that day come? Is it possible, I wonder, if debt will eventually break free from what is becoming an antiquated idea that it must be paid back, that it must be settled?

    I know that what I just said is not reality, but just consider how long now the current fantasy has been allowed to go on.

    I am not in any way disagreeing with you Mr. Roacheforque, just expressing my frustration. In this fantasy it seems that even gold can be conquered by a paper shell game, but for how long? What will wake people up from this fantasy? I love your posts, they really make me think. Thank you.

    1. I'm not sure we are in disagreement at all. The world is a frustrating place for those with honor. We wonder if the law will ever rise above money.

      Thankfully, we have the little things to be grateful for, and should not dwell too much upon the world's ills. They will eventually fix themselves ... either the easy way, or the hard way.

  4. It will last until the hundredth monkey realizes fiat currency is worth zero.

  5. Yes VITW, I think you are right about that, and after thinking about it some more, I guess the $55,000 question is this, "what will spark the final run on gold"? Not paper gold, but physical. What kind of event will it take for people to "demand" delivery of physical when their paper contracts expire? When this happens, perhaps then, this whole upside down paramid of paper liabilities/notes/bonds/derivatives will come crashing down... and there will be no where to go, nothing else to turn to but physical gold. So what will it take...?


  6. New video by "Hidden Secrets of Money"

  7. I bought two random year American Eagles from APMEX in February, I got two 2015 AEs. I bought two more in August, I got two 2012 AEs. I then bought another two in September, I got two 2011 AEs.
    The weak hands who bought high in 2011 and 2012 had given up and sold. I wonder if APMEX is out of the 2015 AEs. I'm tempted to buy 2 more just to see what I'll get.