F Dominicus Blog

A politically incorrect blog about matters of money, government, bureaucracy, freedom and sometimes something else.

It's slaughthering time again

It's getting a bit annoying. The last few weekends you could rely on a new strike against gold. The old saying is: First time is an accident, the second time it's an inccident, the third time it's enemies at work. It seems the paper gold "market" has left the real market little bit too far behind it. And it seems the try to get the prices lower in the hope that people get rid of their gold. At least this seems to be quite plausible. The problem is that judging from the reality, the price of gold and precious metals should be soaring.
  • The central banks are in money printing mode
  • The states are back in full swing to create jobs through more debts.

You can even see some prices soaring as in the crack-up boom. Bonds are higher than ever, stocks are higher than ever. All with quite bad economic figures, they do earn less and less, but especially banks are emitting new stocks every minute. That means the earning / share are going down.

I have to admit the problem that gold is measured in Fiat-money makes it problematic. I do not loose anything in real "value", the gold just sits there and it happens nothing to it. But during slaughter times one sees the "value" measured in USD going down. That makes you nervous. I've gone through this over and over again and in between I just think. Don't worry. The gold is there in physical form, and it's not yet another prohibition of gold in sight.

But going back to the header, the problem really does not look like fortune any more. And so if you are "forced" to sell you will loose really bad. The gold is gone and you got paper instead and you know this paper is printed in the millions every day.... It's not worth it. Just keep enough in cash to stay afloat and see that you do not can be forced to buy your gold during slaughtering times..