I am as poor as a church mouse, but I have always been interested in all things golden. That’s why I have grown a bit of … let’s call it: clairyoyance when to buy and sell. I did so just for fun; just to determine what I would do, if I were a rich man. Sometimes I let somebody in on my thoughts and those somebodies tended to be a lot more well to do than me. If they paid attention to my second guesses they nearly always did alright.
Before 2008 most of them relied on technical analysis, which was a surefire method to get filthy rich, or so they thought. Today not any more. Most of them gamble in american or german stock markets and as they have much too much money anyway, it would not hurt them if they lost something in a crash.
They know quite well, that those stocks are way overvalued, but they are confident, that our CBs will keep the party going on for a while. Maybe they can leave before the fat lady sings Be it as it may – as long as the music plays, they (too) have to dance and if it’s too late to leave the floor, well, fuck it. I am sympathetic to this attitude, but I cannot help them in any meaningful way, because I have become estranged from the stock market, to be honest.
Not so with gold. A few years ago, after it had become completely obvious, that the POG was “rigged” and had nothing to do with the forces of (physical) supply and demand, I said to myself: “No, I shall not capitulate to these bastards, even if they have a golden, a cash-shitting ass in their barn while I don’t.” Since then there has been a match going on between them and me, though only a symbolic, virtual one, because, as I said before: I don’t have any money.
But my friends do. Sometimes they remember faintly, that their electronic funds and their stocks are probably smoke and mirrors and that the bastards are out and lurking somewhere to rip them off. That’s when they ask me, when is the best time blablabla…..
Not that I would be right all the time – but most of it. As soon as this senile wart behind my right ear starts itching, I know for sure: it’s time to get in. This was the case after christmas 2013, when one of my friends managed to gobble up some ounces for 900 Euro (okayokay: 905). And it was the case one year later at a price of 1000 Euro.
Then the $ POG suddenly started going up 100 USD, while the Euro went down for three weeks and my friend could have sold for 1.150 per ounce (don’t know, if he did – never asked him). Have a look at this surge. After that I became convinced, that they had to take down the POG lest nobody could escape the stranglehold of financial repression and I said so publicly.
If you don’t believe me, see for yourself. It is this posting.
The high in $ and € POG was reached the next day, which would have been the right time to sell. In my post I wrote: “One has to come to terms with the fact, that $ gold is a fiat currency, dressed up as a metal.”
Ever since it has become clear, how right I was with this sentence. I was also right with the intuition, that they will keep the $ POG at 1.200 USD (+/- 50 bucks). (What I did not know until recently was, that they can do this to a consumeable commodity like oil as well – you just have to have a seller of last resort.)
Yes, $ POG has been a fiat currency all along.
Historically it was used to prop up the USD (antagonistically), but during the first three weeks of january it went up with the Dollar, while the Euro went down. I have no idea why, but I am sure, that there is logic behind it and that it is part of the concerted game of currency mechanics, which is the favorite game of our monetary authorities.
We will never know their reasonings nor their algorithms, but for me it was another confirmation, that they are playing their old “infinite money out of nothing” game with a finite good. This cannot “end well” – the question is only, if one is still alive, when their jig blows up.
I very much would like to, but it’s not up to me. In the end – in 200 years at the latest – the central bankers’ descendents will turn to their only asset, that cannot be increased indefinitely. Then the aforementioned match will have ended and it will not matter, that I shall not be around any more. The great-great-grandchildren of my friends will stumble upon a hoard, that has accumulated over a long period of time – because their forefathers used to rock to the gentle rhythm of the currency waves. This will be a weird event, and a “democratic” one at that.