Skip to comments.The “Zero Hour” Scenario (Default On Precious Metals)
Posted on 03/10/2013 9:40:58 AM PDT by blam
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No economist am I but previously in investing these types of articles are published just as a major broker is getting a huge sell order and needs to place it.
"Every year, major banks and brokerage houses provide their four-year forecasts for the gold price. The following chart documents the average price projection of 25 top analysts over the past seven years, many of whom specialize in the resource industry. I might suggest pushing away from your desk so that when your jaw drops it doesnt hit the keyboard.
If I were a buyer of Gold, I’d insist on NOTHING but physical possession of it. Buying the so called ‘paper’ would be unthinkable to me. If security of my physical possession is a concern, that’s what safes are for. One can always rent a ‘deposit box’ at the bank as well, but I’d prefer a nice big(at least 1,000lbs) fire-rated safe, bolted to my basement floor to store things in.
That’s why you want to own mining stocks. You can get dividends now, and will be leveraged when TSHTF.
Don’t go crazy on them, no more than 3% of your portfolio in any one stock or 10 to 15 % in the sector depending on your risk tolerance. The sector ETF is GDX, which pays about a 1.24% dividend, and it’s currently a falling knife, so this not for the faint of heart. Use stop losses or options so you don’t get sliced up too badly.
Investing is about patience and judgment, because the market will always be one step ahead of you.
(It has nothing to do with the Italian automobile manufacturer, FIAT, which many say due to its poor workmanship is an acronym for, Fix It Again, Tony .)
and when the government then demands that you turn in all your gold to them and makes it illegal to own gold (this was done before)... what are you going to do then?
face it... when the end comes... there is no way to escape and no right answer.
I would say that the Germans trying to get their gold back from New York have provoked a de facto default. The most obvious explanation as to why would it take seven (?) years to move many things each the size of a brick from point A to point B is that they just don't have them right now. Any security concerns offered as reasons not to move it in a timely matter, despite the matter of that diamond heist in Brussels in February, are simply red herrings.
And there is precedent. When nickel officially defaulted in 2006, the criminals at COMEX (aka CRIMEX) simply said, eh, ok, sellers pay buyers one percent per day until they can deliver. You can bet that gold would be going up more than one percent per day in that scenario, and CRIMEX wins again.
“...and when the government then demands that you turn in all your gold to them and makes it illegal to own gold (this was done before)...what are you going to do then?”
Shoot first, ask questions later. :)
P.S. A TEXAN is asking this and a YANKEE has to answer? LOL! ;)
I will relate this story again for the benefit of my FRiends...
A friend of mine took possession of physical PMs...a lot of PMs.
One fine morning her husband walked into the garage and was met by a man in a ski mask with a pistol.
If her husband had not been an incredibly brave and strong 70 year old man, they would both have been dead after the obligatory torture session.
As it turned out, both hubbie and she were badly bloodied but alive as the robber escaped dropping his mask and zip ties as he fled.
The robber looked like an absolutely normal white guy like you would see shopping at Wallymart. No tats, piercings, etc.
The robber was never caught.
My friend had not told anyone that she had PMs. Who knew? The coin shop? The UPS driver?
Remember OPSEC at all times. Do not keep PMs in your gunsafe, home, or other obvious place.
Bank safes aren’t that reliable. If the gov’t is in desperate need of gold, they can make the banks deny access or inspection to safe deposit boxes belonging to “the subjects”.
Yes, the Germany deal is what I was thinking about. Looked like a default to me.
And you can't trust bank safety deposit boxes, either, as any run on the bank will also block access to your box.
So what is the answer? Get creative with your home remodeling.
and use a P.O. box. You should not have valuable items mailed to your home address.
Not investment advice, but the stop-loss order often goes under everyone's radar screen. You can't use them with Mutual Funds, they are not available with that instrument.
With ETF's trading "Intra-Day" if the SDHTF and the markets have a huge correction in one day ( a la Sept 08') and you hit you exit number, you are in Schaffer City....
why don't you define it for us; it would make your story so much more interesting.
I'm of the believe that probably 75% of 'OPSEC' is people keeping their damn mouths shut, and preventing outside knowledge of what you have.
Why would anyone pay the spot price for 1oz of pure gold (99.99%) for a 1oz coin coin that is only 91.6% gold?
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