Hold Your Gold and GOTS

Posted at 10:20 PM (CST) by & filed under General Editorial.

Dear CIGAs,

Gold is a unique currency.
Gold becomes money when money fails.
Gold is competition with fiat currency.
Gold is not a commodity
Gold is a barometer of fear.
Attempts to break the barometer in order to avoid fear are futile both in trying to hold the value of gold down as well as preventing fear.
Gold is a barometer of confidence in government’s functionality
Gold is insurance. Trading your insurance is dangerous because when you need your insurance it will out-price itself immediately by hundreds or thousands of other currency units.

Inflation equals money squared. Hyperinflation is a currency event, not an economic event.

Gold is the financial high-ground when a Global Tsunami hits, such as sovereign default or the real threat thereof.

Gold in your hand eliminates counter-party risks.
Gold in hand removes financial agents between you and your assets.
Gold ETFs defeat the definition and purpose of gold and are therefore poor choices for the gold investor.

Claims on paper gold by ETFs far exceed anything that the true cash physical spot market could EVER provide.

Velocity of money represents attitude of all consumer types from business to household.
Velocity of money would spike when confidence in a currency is lost in terms of that currency.

There is no practical way to drain debt from the fragile economic recovery therefore QE must go to infinity.

Margin in gold is a financial death wish.

A weak currency is a symptom of Inflation in Monetary Aggregates.

The price of gold has many enemies, but the most seditionist are those who claim to be friends of gold – the majority of those authorities that write on gold.

Hold your gold and get out of the system.