Eurogold: My Friend just dipped his toe into the water – Get ready

There still is some wiggle room left  – time and metal that is. At least for us common men. But at some point one has to start acting. It is better to go in step by step and “lose” in the beginning than to be late altogether. For context have a look at this. The only risk seems to be that

the resolution to the Greek crisis leads to a big upward move in the Euro – which would make gold cheaper. This would be a counterintuitive move, but it is definitely a possibility. In the end it does not matter, which solution will be found. You can spin it either way.

At the current level the Euro is way to low. That’s why you want to keep an ace (or two) up your sleeves.

My well to do friend gave himself a treat on friday. He told me, that he got an ounce for 1.075 Euro (Vienna).

Edit 1, 28.6.2015: A phys-ounce for 1.075 Euro, instead of 1.175 Euro of course – it would have been be a hefty premium otherwise :-)

Edit 2. 29.6.2015, 7.00 MEST: The decline of the Euro vis-á-vis the USD “was to be expected”, but it was a highly managed move as can be seen by sumultaneous strengthening of the Yen. For now the punchline is: “Not as bad as expected”, but subterraneously there is another story in the making, imho: Euro redivivus, brought to you by the storyteller cooperative FEDCB.   :-P

The supposed plot of this story is quite irrelevant. It can be: “weathered the storm” or: “picks up pace, smaller, but stronger”.

So maybe you can get the same bargain as my friend in one or two week’s time, or even a better one. No guarantee, just my 2 Cents.

Edit 3, 29.6., 20.00 MEST: It’s hardly believable but true: We are back from where we started before the beginning of last weekend -  at 1.048 Euro per ounce (non-physical), before all this yadda yadda about Greece had begun.In the same vein, an only slightly weakened Euro was back in no time at 1,12 USD per Euro.

The USD-Price of Gold was capped at 1.186 and then brought down over a period of 15 hours in little babysteps: 1,186 – 1.182 – 1.178 – 1.174 – 1.176 – 1.178 – 1.180.

This trajectory was – as nearly always – accompanied by hugely confusing rates of change, showing an increase in price when there was none and vice versa. It’s some weird kind of behavioral finance. A similar pattern was followed in Eurogold, which is, on top of it, clamped in between the exchange rates of fiat currencies.

Obviously there is no trace left of gold’s former self as a safe haven asset – and that’s exactly, what this applied behavioral finance wants to achieve: the management of human risk perception/behavior by conditioning techniques.

“They” won’t succeed in the long run. Or to be more precise: They will succeed only, if they have enough physical at hand to outstay and outlive persons who have a good grasp on this mess formerly known as monetary system. So: If they are capable of importing physical from another planet or producing it out of lead, then: yes, they will hold the upper hand.  :-P

Unabhängiger Journalist

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