They call this gold correction a collapse? I’d call it a buying opportunity. Gold will be the last asset standing.
The problem is you can’t eat gold or use it to fill your tank. I lead toward more consumable commodities, like food and oil. Oil has taken a beating, but it always comes back because there will ALWAYS be a demand for it.
Ladies & gentlemen: buying T-bills up and changing
them from short due-date to long due-date as the Fed is doing does not create wealth.
It is simply paper shuffling.
It is an illusion of wealth creation. It creates no
wealth.
The rising USD in relation to gold copper and the
global indices is an illusion...simply a response to a
(short-term) sleight-of-hand. Thursday’s indices tanking is a vote of no- confidence in Bernanke. Fleeing gold is nuts. Fleeing stocks of companies that really produce things that people value and cannot do without, the companies that actually create wealth, and to move that money into Bernanke Dollars, is approximately like trading a gold ring or the deed to an acre of land for a wooden deck chair on the Titanic that looks like it might float as the ship upends and breaks up.
Gold is profoundly undervalued and so are the shares of dozens of the USA’s and the globe’s best and most profoundly Wealth-Creating companies
This is very important. You’re seeing dividends tied,
for the first time, to Real Wealth, to Commodities, not to paper.
As gold has become the New 21st Century Money, so
also will silver, not far down the road, this decade.
By late in this TwentyTeens decade you’ll see great companies tying their Q dividend payment to the price of gold & silver.
Allow all this to play out. But stay away from those T-bills... it is only a short term play.