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3.22.2015 Financial Intelligence Report Bookmark

Gold

You don’t see it. It isn’t on TV. No one you know talks about it. The people that do are shunned as crazy. Those folks are avoided. Am I talking about Gold? No. I’m talking about the events that give reason to ponder owning gold.

A quick history lesson…Gold was trading around 285 dollars an ounce back in 1999/2000. We started pounding the table on Gold in spring of 2000, with outlandish claims that it would reach 1000 dollars within ten years. Well, it did that. And why did we think it was going to run so much? Because we saw the things that normal every day people didn’t see.
Gold

You don’t see it. It isn’t on TV. No one you know talks about it. The people that do are shunned as crazy. Those folks are avoided. Am I talking about Gold? No. I’m talking about the events that give reason to ponder owning gold.

A quick history lesson…Gold was trading around 285 dollars an ounce back in 1999/2000. We started pounding the table on Gold in spring of 2000, with outlandish claims that it would reach 1000 dollars within ten years. Well, it did that. And why did we think it was going to run so much? Because we saw the things that normal every day people didn’t see.

We lurk in dark areas. We research foreign papers, we read things that most folks would consider lunatic conspiracy nut theories. Then we pull together a bunch of those “dots” and connect them and try and form a picture. The picture that emerged for us back in 2000 was that we were going to see a credit bubble, a housing bubble, war, and some big time blow ups.  Yet then; as now… most people just ignored us as doom and gloom crazies.

Times have not changed. Once again; just like the children’s books where you “connect the dots” to make a picture, we can connect a lot of world events and produce a picture… unfortunately however; it is just as ugly as the one that emerged for us in 2000. Likewise once again, no one is paying attention. The stock market is setting new highs, the Government tells us all is fine, and don’t forget filling out those brackets….

Why on earth would anyone own gold? As Wall Street loves to tell us, it doesn’t earn interest. It doesn’t multiply itself.  It just sits there are looks wonderful. Is that any reason other than jewelry to own it? Not really, because we don’t own it as a bauble, we own it as money.

I’ve probably written a novel’s worth of articles explaining how gold has been money since before the Bible was ever someone’s idea to write. I’ve written about how interesting it is that even untold ages ago, when vast numbers of people had no idea that “other people” lived in far off places…when they discovered those people, they too were using gold. Gold for what ever reason you wish to consider it, was a universal money. They’d find tribes in the Amazon, formerly unheard of…using gold. They’d find villages on far off Islands in the pacific…using gold.  Again, for what ever reason you want to ponder, gold has been realized and accepted to be money all over this planet for thousands upon thousands of years.  Even in the most remote of places.

It still is. Yet we don’t use gold as money in the modern world, we use paper pulp with the pictures of dead Presidents on them. The Fed’s and Central banks use electronic blips on a screen. Money created out of nothing. No work, no sweat, no labor, no nothing. Just push a button and “money” appears. Why is a digital entry on a computer money? Because they say it is. “Fiat” from the original Latin, simply means “let it be”. Thus we have what is referred to as “Fiat” money.
Now when times are good, people are just fine with the idea of using sea shells, tree bark, digital entries, paper pulp, beads, and you name it as money. But when things get ugly, they tend to instinctually turn back to holding gold. It has provided a form of “safety” for ages on end. That in a nutshell is why someone might want to own gold. History has shown us that even in the darkest of times, a gold coin would buy you something. You cannot say that for any of the hundreds of paper monies that have “failed”

Gold/Siver World did a remarkable study on the demise of 599 paper currencies that “went away”.

(30%) 184 ended monetary unions, dissolution or other reforms, such as the creation of the Euro in 1999 (and its physical use since 2002);
  (15%) 94 ended through acts of independence (former colonial states renaming or issuing new currency);
  (27%) 156 were destroyed by hyper-inflation (caused by over-issuance of paper money by governments and central banks);
   (28%) 165 were destroyed by war (deemed invalid through military occupation or liberation).

  The Second World War saw at least 95 currencies vanish as nations were conquered and liberated.

Furthermore, the study pointed out that the median age for all existing “paper currencies” in circulation is only 38 to 39 years.

Consider this… we went totally “fiat” in August of 1971, that’s about 44 years ago. So in the realm of fiat lifespan, we’re pushing the limits.


After the bull run in gold, which took it from about 285 dollars in 2000 to 1900 in 2011, Gold has pulled back and “sat there” in a wide range for the past 4 years. Most people are tired of it. Many are under water, having waited and waited to buy until it was in a froth. So they wonder…what do we do with it? Sell it? Sit on it?  I contend you should “connect the dots”.

I will be the absolute first person to admit with all my heart that I did NOT believe they could cap gold for this long. I know why it’s being capped, and I even know how, but the duration has indeed been impressive to me. I didn’t think they could pull it off. Well they have. So now the question is… is it dead money for ever? All finished and now it’s a 20 year bear market? Again folks consider why anyone would REALLY want it. If you bought it to get rich and buy low and sell high for a fast profit, you bought it for the wrong reasons. It isn’t about that; it’s about long term “safety”. With that in mind, is the world safe? By NO measure could you consider this current world safe. Not economically, not militarily.

I want you to consider the dark side of things for a moment. Nothing I’m about to present is opinion, or theory…it is just FACTS. Then we’ll chat about them.

 

After the UK announced it will join new China-led Asian Infrastructure Investment Bank (AIIB) as a founding member late last week, Germany, France and Italy decided yesterday to follow Britain’s lead and join as well. Now Australia and South Korea have jumped on the band wagon. Each nation was “warned” by the US not to do it.

 14 Nations now house Chinese Yuan clearing hubs

UN Preparing For Global Sovereign Debt Restructuring
The United Nations (UN) is preparing a Multilateral Legal Framework for Debt Restructuring Processes. At the highest level an orderly sovereign debt restructuring for developed countries is designed.

France Moves to Make ‘Conspiracy Theories’ Illegal by Government Decree

Google Moving To Shut Down Alternative Media By Ranking Sites On “Facts” Rather Than Popularity

Request to Conduct Realistic Military Training (RMT)JADE Helm
“Jade Helm is a challenging eight-week joint military and Interagency (IA) Unconventional Warfare (UW) exercise conducted throughout Texas, New Mexico, Arizona, California, Nevada, Utah and Colorado.”

The Red States of Utah and Texas are listed as hostile states as is part of Southern California “We have Army Green Berets, Navy Seals, Marine Special Operations Command, the 82nd Airborne Division and we also have some of our interagency partners such as the DEA, FBI and the Joint Personnel Recovery Agency (JPRA) that will be working with us.”

On Wednesday, US Secretary of State John Kerry confirmed that Washington is sending "some $75 million of additional non-lethal assistance" to Kiev, including drones and armored Humvees. The US also announced earlier in March that it was planning to send about 300 military advisors to train the Ukrainian army from March through October.

General Bob Scales told the channel last week that the situation in Ukraine is now “game, set, and match,” and that the only way the US can have an effect in the region is to “start killing Russians”.
“Killing so many Russians that even Putin’s media can’t hide the fact that Russians are returning to the mother land in body bags,” he added.

I will stop there so this doesn’t get ridiculously long. But as you can see, we’ve got headlines proving that nation after nation is more than willing to break away from the US stranglehold on global finances, and right into the arms of the China alliances. The US is seething over that. As I said, “the world is choosing sides”.

We see the UN producing a massive paper laying out the groundwork for a global debt restructuring. As I’ve said over and over, we’re going to be facing a global “reset” and here’s the UN itself laying out how they’ll go about resetting and restructuring the trillions in debt that can never be repaid.

We see that the US has sided with “net neutrality”, which basically gives Uncle Sam the right to choke off anyone that they decide to quiet. Google is right on the bandwagon, saying they’re going to develop search result sites ranked by “facts” instead of popularity. IN other words, if you say something on your site, and it doesn’t match with what “they” say is the facts about a topic, you don’t get listed. Who decides what is fact?

France is flat out calling anything but the Government issued “facts” about things illegal.

The situation over Ukraine continues to escalate, despite the news moving from covering it, to discussing the color of a stupid dress and who’s brackets are doing best. But we’ve got a retired General on FOX TV declaring that we should kill Russians and we’ve got Kerry sending tens of millions of dollars in military to the illegal Ukraine Government forces.

Here in the states, we’ve got a gigantic “war game” being developed by the military, Homeland security and all the alphabet institutions like the CIA and FBI where they’re going to stage “war time” simulations in towns across the SouthWest.

Folks connect all those dots for a minute. What do you really get? You get a world swamped in debt, a world with wars on its doorstep. You get elites trying to snuff out “real” free speech and take over the last bastion of truth in media. You get the Government playing what amounts to a Psyops game to get people used to the idea of martial law in their own hometowns. You have ranking retired Generals calling for Killing Russians; you have clandestine deliveries of military hardware to a Government set up illegally. Not to even mention that right here in the US 50 out of 58 economic reports have missed the estimates since Jan. 1.

Those dots connect to make a very unpretty picture. A picture where it is indeed clear that “things” are going to happen. It could be outright war, it could be economic collapse, it could be imposition of martial law, it could be the loss of US global reserve status,  a lot of things. One thing it does NOT portend however is rainbows and kittens.

That is why we have not sold our gold. That is why we continue to buy some more gold and silver when it gets hit. Because when the excrement hits the fan, and one could make the case that it already is approaching it, does anything else offer any real protection? Not that we’re aware of. Paper money has gone to 0 hundreds of times. Gold never has. Stocks have gone to 0 thousands of times. Gold never has. Gold is an insurance policy, not a trading vehicle.

Maybe 6K years of history is being rewritten and gold will be worthless. But I won’t take that bet. Maybe the world can dig out of 700 trillion worth of derivatives, but I won’t take that bet. Maybe peace loving Christians will take over the world and we won’t have wars with Iran and Russia, but I won’t take that bet. I will however buy a little gold now and then, and just stack it.  While it might be sitting there for you as dead money, the question you have to ask yourself and decide for yourself is a simple one. Is dead money more ‘better” for you than the possibility of no money one day? That’s a personal decision you have to make depending on what your own mind will allow you to believe “could happen”.  I don’t want any of it. But then…the people of Europe probably didn’t want WWI or WWII. The People of Zimbabwe probably didn’t want 100K% inflation. They simply had no choice. You don’t either.

The Market…

Is there anyone left besides money drunk CNBC announcers that doesn’t think this market is overpriced and in bubble territory? I don’t suppose so. In the last month we’ve heard from Alan Greenspan that the markets are overdone, we’ve heard from a dozen incredibly prominent hedge fund managers and this week we even had the outgoing Dallas Fed head Fisher say that the market is overpriced.

Yet Friday the market went up 168 points. Overpriced or not, keeping assets higher is job one for the Fed’s and Wall Street and they’re doing anything they can to keep the plates in the air.  It is remarkable to watch.

There are a few really strange and interesting things about what’s been happening lately that should if noting else, raise an eyebrow or two. Consider this…the S&P has not had two back to back green days in over a month. I don’t know if that’s a record, but I don’t remember it happening.  Since February 13th and 14th, every up day has been followed by one, if not two or three down days. In the last 8 trading sessions especially, it has been really odd. On March 11th, which ended up being the “bottom” of the pullback from March 2, we’ve had green, red, green, red, green, red, green.  Does that mean Monday is red?

It might not mean anything, I just find it interesting.  For now all we can do is imagine that they are going to try and get us up to the all time high, which you can loosely figure sits at 2117 on the S&P. But whether we get there with a couple green days in a row, or if we continue this stair step of green, red, green, red…is anyone’s guess.  

We have been trying to lean long into this silliness, but I’ll be the first to tell you it is nerve wracking. There’s nothing to prove to you that any one of these “red” days, doesn’t turn into another really pull down. So you simply ‘hope’ that their criminal intentions to keep things moving up is intact.

Despite Yellen kicking the can down the road some more and Wall Street praising her for it, there’s no doubt we’re overbought, running on fumes and wicked manipulations. But they’ve got the small caps busted free, the financials were moving well and it “appears” on the charts that all is still on plan. So we’re going to try and stay long here, but I’ll also say that we keep our finger near the sell button.
I think you might consider doing the same.  Until we break out to more all-time new highs, the last high is indeed now a resistance level and this could surely fail at that level. So I don’t think it wise to just buy long and “forget it”. We’re too close to the upper boundary.  It’s definitely a good time to remain nimble.  

Enjoy your weekend and we’ll see you all on Wednesday.










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