The Investment of the Millennium: ‘Pet Rocks’
01-Sep (Jesse’s Café Américain) — The physical market at some point is going to come bearing consequence for the schemes of the financiers.
I suspect that when the ‘riskless proposition’ of shorting gold starts to more visibly unwind, most likely under some significant duress, we are going to see what kind of rot has been concealed, and the bottom feeders that have thrived on it, as when the tide goes out.
This unwinding started in the spike in the metals after the financial crisis of 2008, but was held off by massive ‘currency interventions’ to ‘save’ the Western financial system in 2011.
Gold rose in 2009 from about +150% to +775% at the end of 2010, as measured from the beginning of the millenium in 2000.
The real longer term consequences of reckless monetary policy and irresponsible financial deregulation and a tolerance for massive frauds are still ahead of us.
Gold has worked down from Alexander’s time.
When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.”
Bernard M. Baruch
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