I received quite a few comments on my piece from over the weekend and wanted to expand on it a little bit. THE most important question to ask yourself right now is “Why did I purchase Gold in the first place?” Many will come back with answers such as “Because I was afraid of inflation.” Yes, inflation. Not what the government tells you inflation is, not the bogus rate that they release each month. No; inflation. Inflation as in what your own eyes and pocketbook tell you. Inflation as in the central bank (of whatever country or zone you reside) printing too much money. Inflation as in your Treasury department needing to borrow more than what the marketplace is willing to lend so the central banks steps up with newly minted cash to buy whatever is necessary. Just good ole’ plain inflation.
Or maybe you are a fiscal conservative and started buying Gold because you were afraid that your government would go broke? Or that your “King” was spending too much or borrowing too much. Or maybe he (or she) was “messing” with the money and clipping corners? Maybe in an effort to keep the “natives” from becoming too restless your “governor” made promises? Lots and lots of promises… you know, the types that can never be kept!
Or maybe you were afraid that the banking system was going to come down. Maybe you are (were) some sort of financial skeptic (terrorist) who saw what the banks were doing and figured out that it could lead to no go good. Maybe you didn’t trust the banks to hold your money? Maybe you stuck money under your mattress? Maybe you came to distrust the “money” itself?
There are a myriad of reasons why YOU may have purchased gold and silver a couple of years ago. A myriad as to why you did the same 10 or even 15 years ago. Yet, now you are questioning yourself. You are questioning yourself because Gold didn’t “go up” 20% last year and you’re thinking “O my God, should I sell it while it’s still worth something?” Don’t laugh, many people over the last couple of weeks have become almost suicidal in their fears that “Oh no, what if gold goes ‘down’ further?”
Let me put this in perspective for you. ALL of the reasons that you may have originally made your purchases of gold and silver… are just NOW coming true! Well, not just “now” but they are certainly “coming to a head” now. Believe it or not, the common sense that you employed originally… was correct. Yes, you figured it out! And the best part is that you figured it out early! …before the rest of the crowd! But, now, you are questioning yourselves because everything that you thought was going to happen has happened yet the banks haven’t closed, your Dollars, Euros and Yen still spend and SNAP cards and Obamaphones are still working and online… so… you must have been wrong???
Wrong? Not at all, you were right. Really right and right for all of the right reasons! (scary huh?) But, because of the current production of “Wag the Dog,” you are missing the reality of the situation. ALL of what you expected to happen IS happening and is going to continue to happen… faster and harder as time goes by. I have to ask each one of you this question. Back in the early 2000’s did you think that Jim Sinclair was crazy talking about $1,650 Gold? Yes? No? Did you think that if we ever had $1,650 Gold you would be rich beyond your dreams? Did you think that you’d be “scared” out of your wits like you are now or did you even think that the system would still be working and functioning as it still seems to be today?
Would you like the reality of the situation? The entire sovereign world is broke! The banking system is broke! The currency mechanism and currencies themselves are worth ZERO! The derivatives market has been hypothecated and rehypothecated 10 times or 100 times over. NOTHING can perform as it promises. Gold on the other hand will perform. It IS money and will have value and can be used when… drum-roll please … NOTHING ELSE can or will which is exactly why you purchased it and now own it in the first place.
So, please relax. Please understand that you were correct and correct for the right reasons and are only now becoming fodder for misinformation trying to separate you from your gold. YOU are not a fool right? You know what they say about fools and their money? If you were a fool? You wouldn’t already own gold and be the target of those who have already run the system into bankruptcy. End of story!