(scroll to bottom of page). I can’t believe the "gold community" still doesn’t get it. How can they come off a two-year rally like this one and lose all of their undergarments as soon as the dollar gets pumped up just a bit by a two-syllable statement from a Frenchman in Frankfurt, Germany, that the rise of the euro was so "brutahl"?
The reason is that everybody still thinks their salvation lies in paper-dollars. Everybody wants to be ahead of the market, ahead of the crowd (not realizing that this puts them right smack back into the crowd). Everybody wants to "leverage" their gains by playing the paper-gold exchanges. Everybody wants to be slick and smooth by playing the paper-game and not be tied down by cumbersome physical holdings that take maybe days to actually get to market when the price drops.
Everybody wants to be nimble like a deer, and be able to make a phone call and sell every position they’ve got, instantly, or do it online at the click of a mouse.
People still don’t understand the value of gold. They say they do, they say they want "honest money" - but when it comes down to it, they reveal the truth: that what they are in it for is only a quick buck. I think "gold bug" is the wrong term. They should be called "gold bucks," nimbly galloping away in headlong flight, just like their bovine namesakes, at the slightest noise in the market’s underbrush.
That reminds me of a joke:
Question: "What do you call a blind deer?"
Answer: "No eye-deer" (You have to say it, not read it. Sounds like "no idea")
Question: "What do you call a dead blind deer?
Answer: "Still no idea."
At the risk of making myself very unpopular: It looks like all of our paper-gold investing friends belong to the dead-blind-deer variety who still have no idea - after all these years of playing the paper-gold markets.
Paper-gold is poison.
Paper-gold is the pressure-escape valve, the deceptive loop right back into the mainstream fiat system for those who feel a desire to step beyond its confines. It is the safety-catch by which ‘the powers that be’ control those who are inclined to invest in gold but have neither the foresight, the back bone, nor the staying power to buy value (not speculative paper-bets) and stick with it over the long haul.
If you buy into paper-gold, you still have a paper mentality, a trader’s-mentality. You are nothing but a nervous, jumpy, deer in the forest. You have eyes on the side of your head so you can see enemies approaching from all directions - but you can’t focus very well on what’s ahead of you, namely: an unstoppable market of falling currency values relative to gold, all across the board, but especially in the dollar.
Gold investors need to become the predators of the paper-markets, seeing a victim (and a dinner) in every bullion banker, every stock broker, every tech-fund, and every gold-leasing/selling central bank official, and every new-world planner that’s out there. You need to move your eyes to the front of your head so you can see the unbelievable opportunities ahead of you, instead of the "dangers" behind you.
The trend is on your side. What good is it to tell yourself: "Uhm, yeah, I know the long-term bull is still in effect, so .....when the short-term bottom is in, I’ll buy back into it." How are you going to know when to buy back in? By listening to the same people who just told you to sell the opportunity of a lifetime? Just short-circuit that entire mess and buy and hold physical. Bury it in your yard or wherever, so it’s hard to get back out and sell when there is a little dip in the still ridiculously undervalued paper-price of gold. You are worried about little, short-term, dried-out peanuts while missing the long-term tree full of juicy coconuts.
That paper-price, that cash "value" of gold that you are chasing is nothing but an illusion. It is the Matrix that hides economic reality from you. Take the red pill, my friend. Reality is ugly, but at least you can see it and do something about it. As long as you are enraptured in paper-dreams, in dreams of "paper-wealth" (was there ever a more horrible oxymoron?), you cannot see reality. You are still plugged into the giant machine. You are still part of the Borg collective.
Maybe Jim Sinclair as a gold mine owner can technically (in my eyes unjustly) be accused of having a vested interest in telling people to hold on to their gold shares, but how can anyone accuse Richard Russell of the same?
And, as to Sinclair, I can remember the days when gold traders wished, even prayed, for gold mine execs to have the kind of gumption he has to believe in their product and not buy into the hedging game. Now gold-commentators are accusing him of pandering to his vested interest. What kind of a mentality is that? Stab the very same people who "got your back" into theirs?
Paper is poison. It poisons your courage and blurs your vision while baiting you with the siren’s call of higher instant paper profits - exactly what is wrong with the herd-mentality of the garden-variety stock investor out there. The "powers" are playing you for everything you’ve got. They are feasting on your flesh while they force you to watch - except you don’t see it because you took the wrong color pill.
If you want to trade, trade forex, orange juice, or pork-bellies. Just leave the metals alone.
I remember a banner ad - it may still be there, I’m not sure - that says something like: "Gold is not a hold - it’s a buy-sell, buy-sell. If you want profits and not a religion, buy our trading advice."
