You own the biggest widget company on the planet. For the last 3 decades, you eat, sleep, and drink widgets. Your manufacturing cost is 50 cents, and you sell them for a dollar. As a literal titan in the industry, your vantage point is unrivaled, allowing you to see where business is headed, long before anyone else. You are certain a year or two from now, demand for widgets will plummet & the market will be flooded with supply. Meaning much lower market prices for widgets ahead, likely well below production costs. What would you do in this scenario?
Just hearing now the Russians seem to prefer the real deal too. Accepting Gold for Oil/Gas. Do you think the US has a chance to go back to the gold standard? Curious what would change in your post if not based on dollars but gold?
Physical eh! I’ve got $100k in American Barrick,,$30 in small cap Kirkland Lake gold, and 50k in PanAmerican silver. Stocks? Ok ? Or should I get physical?
I think it's incorrect to say there isn't enough gold. Prices would adjust to whatever the available amount of precious metals in circulation. I made a crude blog awhile back mostly to save the web links, but in 1860 a journeyman carpenter worked for 17.5 cents an hour, 6-10 hour days, and a bricklayer got 22 cents an hour for 5-9 hour days. If you can't make up play money then you can only pay in what real money is available, and all prices adjust naturally due to supply and demand. 40 years later they were gettin 35 and 50 cents per hour for 6-8 hour days, and in the meantime most everything was getting cheaper in price. This system actually gave birth to a middle class beyond parallel in history. Here's all the links, don't believe me. https://justbuythedip.blogspot.com/
Just hearing now the Russians seem to prefer the real deal too. Accepting Gold for Oil/Gas. Do you think the US has a chance to go back to the gold standard? Curious what would change in your post if not based on dollars but gold?
Physical eh! I’ve got $100k in American Barrick,,$30 in small cap Kirkland Lake gold, and 50k in PanAmerican silver. Stocks? Ok ? Or should I get physical?
I think it's incorrect to say there isn't enough gold. Prices would adjust to whatever the available amount of precious metals in circulation. I made a crude blog awhile back mostly to save the web links, but in 1860 a journeyman carpenter worked for 17.5 cents an hour, 6-10 hour days, and a bricklayer got 22 cents an hour for 5-9 hour days. If you can't make up play money then you can only pay in what real money is available, and all prices adjust naturally due to supply and demand. 40 years later they were gettin 35 and 50 cents per hour for 6-8 hour days, and in the meantime most everything was getting cheaper in price. This system actually gave birth to a middle class beyond parallel in history. Here's all the links, don't believe me. https://justbuythedip.blogspot.com/
Good stuff... and...
Are you claiming that PSLV and SIVR are also unreliable and do not have the physical silver they claim to have?
I have heard many times GLD and SLV are not reliable and may collapse, cash settling at the bogus spot price...
Outstanding piece, really well done, thank you. I discovered your blog yesterday when someone on zerohedge pasted this link in the comments section.