The Paper Bugs: And Then There Were None?

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  1. “And then there were none”. ~ Agatha Christie, mystery writer. One by one, all of the supposedly great paper assets of safety are falling by the wayside. Yes, the US dollar is currently rallying against some of them, but the overall picture is the death of a thousand paper cuts, for all paper assets.
  2. I’d like you to remember the 1990s, when the stock market was “here to stay”, and depressions were eliminated for all time, according those who almost opened one history book, but failed at the task. Then there was real estate, solid as a credit card on a rock.
  3. The Euro was next up on the island of safety plate. It was supposed to be the showcase preview of a one-world currency, and a one-world central bank. Now it’s a model for a possible run on the banks and breadlines in the street. The Swiss Franc was supposed to be as good as gold. Now it’s been revealed as good as the amount of gold backing it, and not one ounce more.
  4. Silver was supposedly the “new gold”, the “better gold”, the “poor man’s gold”. I’d agree with the last part, because those who tried to replace gold with silver in this crisis on anything but massive price sales have found they do indeed wear the poor man label well.
  5. Gold and T-bonds are the two “last men standing” in the financial crisis ring. I’ll give you one guess as to who emerges as the winner, and who joins the rest of paper-land in the blast furnace. I’ll give the public 25 guesses, and I still don’t think they can guess the answer, let alone buy one ounce of the answer. Hi ho, hi ho, it’s closer to the bread line they go.
  6. George Soros is speaking of Western governments having “lost control”. Do you want to own gold, or promises from Gmen that have lost control?
  7. Gold took out the September 27th highs last night. That’s a significant technical event, and more importantly, a positive emotional event for those in the discomfort and pain zones.
  8. You can’t seriously be considering buying gold at, say, $3500 an ounce, “before it gets away and really goes parabolic”, but buying absolutely nothing on a $400 price sale from $1920 to $1530, can you? Just ignore the sale and wait for $3500, when it’s really safe to buy! The banksters promise that’s your “easy-ride from here” number.
  9. The crisis is accelerating into the out of control stage, while fund managers and a huge portion of the gold community are focused on booking losses in gold and related items, and making their way to kneel in front of the Gman’s massive photocopier machine, in reverent worship. What a horror.
  10. When I say, “always trade smaller than you know is rational”, I say that with a focus on reward, not just risk. The greatest wealth is built not on momentum moves, but on values plays, which means buying assets at close to the lowest possible price they trade at. Work hard at making that lowest price…. All yours!
  11. In giant financial crises, price tends to fall in surprise moves, and to levels far below what you and I know is rational. Analysis becomes meaningless. Your only friend in this crisis is your personal ability to “go to the mat”, which is your ability to buy an asset with some portion of risk capital, at prices far below what you thought could ever occur.
  12. Even beyond gold, it will be your own character that ultimately determines whether you make it to the other side of this crisis financially intact, or whether you are ravaged by the actions of your political leaders who have “lost control”.

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