Filed under: General Editorial
Gold Moves From Currency To Performing Insurance
Dear Extended Family,
Dinner is finished and the coffee has been served. I am not eating with a few friends, but rather with all of you. What I have been trying to say during dinner was that the time for the consideration of gold as a market entity is over.
Anglo Ashanti has just closed out their $1.58 billion losing hedge book as gold reaches for a new high. They have slaughtered their cash position and increased their debt. That is a milestone in the time sense because it is here and now that gold has moved from a currency to a performing insurance against what is no longer coming down the pike but is now here. Anglo thinks it threw in the towel due to some mathematical decision, a new high, but even the dense ones can feel the change yet they cannot articulate it.
Another milestone is Dean Harry’s discussion concerning lessening the demands of producing masterpieces on a planned schedule. I have known Dean Harry almost my entire career. The thought of not seeing HSL on schedule saddens me because it marks a career long change.
Milestone developments and their implications are rarely recognized except in hindsight. What it means to me along with gold establishing new highs amidst the storm of top calling is that what has for years been a forward looking mainstay of the gold price is no longer mental speculation, but rather reality hiding in plain sight.
It is no longer necessary to go through the logic of why we have done what we have done. Those events are right in front of your nose.
Privacy is history.
Confidence in fiat currency is a memory of a bull market from the 1950s to 2008.
The Western World banking system is broken and will stay that way.
The mountain of financial WMDs (OTC derivatives) grows daily, protected by lobbyists in the employ of finance.
The rule of law is a dark comedy. It is nothing more than legislation containing thousands of pages but no common sense proliferates.
Western World budget deficits are now totally uncontrolled.
Debt is destroying the Western World now.
The USA is building a caste of untouchables in perma-poverty as Asia lifts its population into an enormous and affluent consumer base that can be sustained by trading amongst themselves.
Gold tonight is the difference between being swallowed up by events or being the cause of your own survival in many ways.
Here in Tanzania you need the most recently dated US currency. A 1996 $50 or $100 US note is worthless in exchange for anything. The gray market is discounting these notes by 20%. Right now the reason is primarily the excellent quality of counterfeits being printed by countries not wishing the USA well. Yet here is another milestone that says if you travel often and far, you must have no less than 7 one ounce gold coins in your pocket. Your paper may be worthless.
Your plastic stands on continued functioning technology and the solvency of the credit card company.
If I did not have gold with me, I would have little confidence in getting back on my timed schedule.
All the conjecture is over. The future is today. Those who have done nothing will have nothing.
I will see 30 of you here very soon. Our conversations will be taking place in the African bush around a comfortable campfire with WiFi. That is also a milestone of sorts.
The bill for dinner has been on the table for awhile. The help seems to want to go home.
Goodnight.
Respectfully,
Jim in Dar
Dear Extended Family,
Dinner is finished and the coffee has been served. I am not eating with a few friends, but rather with all of you. What I have been trying to say during dinner was that the time for the consideration of gold as a market entity is over.
Anglo Ashanti has just closed out their $1.58 billion losing hedge book as gold reaches for a new high. They have slaughtered their cash position and increased their debt. That is a milestone in the time sense because it is here and now that gold has moved from a currency to a performing insurance against what is no longer coming down the pike but is now here. Anglo thinks it threw in the towel due to some mathematical decision, a new high, but even the dense ones can feel the change yet they cannot articulate it.
Another milestone is Dean Harry’s discussion concerning lessening the demands of producing masterpieces on a planned schedule. I have known Dean Harry almost my entire career. The thought of not seeing HSL on schedule saddens me because it marks a career long change.
Milestone developments and their implications are rarely recognized except in hindsight. What it means to me along with gold establishing new highs amidst the storm of top calling is that what has for years been a forward looking mainstay of the gold price is no longer mental speculation, but rather reality hiding in plain sight.
It is no longer necessary to go through the logic of why we have done what we have done. Those events are right in front of your nose.
Privacy is history.
Confidence in fiat currency is a memory of a bull market from the 1950s to 2008.
The Western World banking system is broken and will stay that way.
The mountain of financial WMDs (OTC derivatives) grows daily, protected by lobbyists in the employ of finance.
The rule of law is a dark comedy. It is nothing more than legislation containing thousands of pages but no common sense proliferates.
Western World budget deficits are now totally uncontrolled.
Debt is destroying the Western World now.
The USA is building a caste of untouchables in perma-poverty as Asia lifts its population into an enormous and affluent consumer base that can be sustained by trading amongst themselves.
Gold tonight is the difference between being swallowed up by events or being the cause of your own survival in many ways.
Here in Tanzania you need the most recently dated US currency. A 1996 $50 or $100 US note is worthless in exchange for anything. The gray market is discounting these notes by 20%. Right now the reason is primarily the excellent quality of counterfeits being printed by countries not wishing the USA well. Yet here is another milestone that says if you travel often and far, you must have no less than 7 one ounce gold coins in your pocket. Your paper may be worthless.
Your plastic stands on continued functioning technology and the solvency of the credit card company.
If I did not have gold with me, I would have little confidence in getting back on my timed schedule.
All the conjecture is over. The future is today. Those who have done nothing will have nothing.
I will see 30 of you here very soon. Our conversations will be taking place in the African bush around a comfortable campfire with WiFi. That is also a milestone of sorts.
The bill for dinner has been on the table for awhile. The help seems to want to go home.
Goodnight.
Respectfully,
Jim in Dar
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