I Want You In Gold

Posted by bert zamichow on 02/20/09 11:02 AM
Last updated 02/27/09 7:25 PM
 
[Newer: Hoard Your Old Pennies] [Older: Fed Lends Two Trillion Without Oversight]

I want you in gold. 

And I want you in before the spot price breaks $1,000. 

Whenever you purchase physical metal, you have to pay a premium over spot. So in actuality you will undoubtably pay over $1,000. I don't care. The $1,000 spot price is a significant psychological ceiling. Human beings are naturally prone to pay attention when 3 figures turns into 4 figures. We're stupid like that. In addition, the $1,000 level represents the all-time high, the top level of resistance. If you're a stock chart guy like I used to be, you know that busting it is what technical analysts refer to as "blowing the friggin' roof off." When it goes, I don't think it's coming back. 

It's easy to understand how elder generations who remember the good old days when gold was "fixed" at $35/oz  could never imagine shelling over $1,000+ for a tiny ounce of the silly yellow stuff. "Gold is just so expensive," my mother exclaimed the other day. 

I also heard an older fella reminiscing about how back in the day, you could get two cupcakes for a nickel. 

While some baby boomers may have difficulty wrapping their mind around the incessant, permanent, never-ending price inflation caused by fractional-reserve banking+central banking+fiat currency...the rest of us have to face reality.  

So don't listen to the schlubs

Schlub #1: "I feel like being long gold these days is like being short America..."

Schlub #2: "Absolutely." 

What is truly un-American is sitting idly by while yourself, your family, and your country are destroyed by paper. America is not the dollar.  So don't get too attached. 

 

p.s. Gold isn't that special. Silver, platinum, and palladium will all perform much the same.  

 

p.p.s. I wanted to add this chart. I think economists refer to it as "the huge friggin' tsunami."







Categories: Finance, Commodities, Economy, Monetary Policy
Tags: central banking, Fractional Reserve Banking, inflation, gold

Showing comments 1—3 of 3

Posted 02/22/09 6:42 PM

katwoman
Mendon, VT
I have been buying silver for the past several months and have been trying to get others to listen but they don't get it "yet"!

Now that gold has past 1K and RP has officially said the dollar has collapsed and gold is behaving money I have a feeling things are going get real crazy real soon. Hope you also have gun and a big safe to protect your stash.

Posted 02/24/09 2:09 PM

bert zamichow
Holland, OH
not past 1k yet. a wonderful opportunity for those who have been slow to catch on. silver's pulling back slightly as well. i agree that physical silver is probably an even better place to be over the next few years. the fun is just getting started.

Posted 02/24/09 2:14 PM

bert zamichow
Holland, OH
lol. wish I had enough to require a gun. maybe someday it'll be a gun and a big safe. for now, it's a small box and a steak knife.





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