Since I feel surrounded by gold bears everywhere I look and the onslaught of articles recommending I and others holders of gold should “surrender” or face death holding gold, I chosen to respond with a one-word reply made famous during World War II – NUTS!
After 30 years in and around Wall Street, you develop a sixth sense that doesn’t require charts or some long list of fundamental reasons to justify a position. It’s like the movie is only halfway through but you already know where they’re going with it.
I’m not going to write some long dissertation to justify my position to buy gold and silver right now but I will make a few key points:
- They’re without a doubt the most hated investment class. 99% of the financial industry and the media that follows them are slobbering over one another to tell us why gold and silver sucks! Even the most ardent bulls (all three of us) have been beaten up and have doubts of our sanity to stay the course. It’s truly a contrarian delight to go long now.
- Enough has been written about the strange selling patterns, timing and parties involved that has led to this take down, much of it accurate but shall never be taken seriously by the vast majority because they hate gold and silver and all it stands for. If you too don’t think anything strange occurred, go buy all the general equities and bonds you can get hold of, load up on cheap mortgages and buy Obama memorabilia during this decline in prices. If you happen to be one of the “crazies”, tin-foil hat wearers, and the other kooky names given to anyone who actually thinks gold is money, just know all these actions eventually aren’t enough and the truth shall set you free (and bring on the next leg up in gold’s march to $2,000+).
- If you think it’s going to actually take 7 years to ship half of Germany’s gold back to them and it’s not because the U.S. didn’t actually have the gold to ship, well, I want you to know Elvis and Jimmy Hoffa were just seen with NY Jets Mark Sanchez getting fitted for a Super Bowl ring.
I believe the go-ahead to the take down came on the heels of the Japanese floodgate of Quantitative Easing as the madman at the presses (known as Central Bankers) could ill afford a rising gold price as it would suggest to the masses their plan is “not” the save all but the end all (By the way, the Japanese move is initially bearish for gold as explained in this excellent analysis of why the Japan bond market is going to blow up and take the U.S. with it).
The U.S. is a ticking time bomb, economically, politically and socially. I don’t know the date and time but I truly believe I shall live long enough to reprint this quote in the not-too-distant future when a crisis that shall dwarf the one in 2008 grips us.
To the few who feel like screaming out to the gold bears like General Anthony Clement McAuliffe did, let me leave you with this:
“Illegitimi non carborundum”
May 13
21
My Apology – When It Rains It Pours
If having to deal with the worse junior resource market ever wasn’t enough, there have been a series of business and personal situations that made for a hectic period of late. Because of this, some readers may have fallen through the crack who had responded to my offer of an alternative to traditional financial planning. If you did, but we haven’t followed up with you, please email me again at peter@grandich.com.
Several readers have asked about another local conference here on the Jersey shore to hear my thoughts on the markets. I’ve developed a strong relationship with one of the absolute best people I ever met on Wall Street, Michael Pento. Michael lives nearby and I’m sure would participate.
I could put together a Saturday gathering where Michael and I would share our thoughts with you on the markets. Let’s say like from 10AM to 3PM with lunch in-between. The costs would be just the meal so I’m going to say around $50 per person. Email me at peter@grandich.com and tell me this is something you like to see fairly soon in the summer or wait for the fall.