and what global investors are too blind to see or unwilling to...

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eshmun

12,259 Posts.

3833

12/08/20

16:34

Post #: 46488626
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Originally posted by eshmun ↑

@AverageJoe

"Buying gold on wealth protection from 2011-2013 in hindsight was only a speculative positioning."

Not in Australian dollars it wasn't. It was wealth protection pure and simple and still is. That's the beauty of owning and trading physical gold as opposed to gold equities or equities of any type. Owning gold is a strongly asymmetric trade as long as you can afford to sit on loss making positions because you are betting against the competence of central banks and governments not to be robbing the next generations. It's pretty ironic that humans will invest almost all their efforts to provide for and bring up the next he generation at a family level but at a societal level we are happy as group to rob from the coming generations to live large in our own life times. We are inherently selfish and that's not going to change any time soon so gold will continue to increase in value until it is made illegal to own or it becomes officially reincorporated somehow back into defining the value of money, which in this world is actually just the measurement of the size of debts. That's the only function money currently has, it's definitely not a good store of wealth. Those spanish coins recovered from a ship that sunk in 1710 still have value today, more than can be said for the various currencies and nations that have come and gone since then. It is generally accepted that the minting of gold coins actually goes back to the 6th century BC. Gold has therefore out-survived every major empire the world has ever known and the US will be no exception.Esh

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and what global investors are too blind to see or unwilling to see is that the very institutions they are relying on to re-inflate the asset bubble and save economies are actually still in deep bear market territory from March. If you think a few stupid apps like Facebook, Zoom or consumer companies like Apple are going to save the economies, forget about it. Economies need to be diversified to survive and the US's economic isolationist policy will just increase producer price inflation which will flow all the way down the line to consumer prices. They will need to print more money just to keep their economy viable and to afford the goods they will need to start making even if they come out of this current hole. Precious metals and tangible commodities priced in US will be the trades of the decade.Esh

NST Price at posting: $14.50 Sentiment: None Disclosure: Not Held
2 Upvote

1 Great analysis

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