How is it possible gold goes down $200 in the paper market while there is almost no supply available to buy around the world? Last I checked, dwindling or completely absent supply against steady and increasing demand means higher prices, not sudden price drops.
There is an old saying: To “pound the table.” It essentially means to vehemently assert one's position. I rarely pound the table. I am, as of today, pounding the table! I am talking about the junior gold stocks. Gold stocks in general, but especially the juniors.
Printing up endless amounts of fiat currency units only has one real outcome, and that is the destruction of the economy as consumers, business people and entrepreneurs are all given false price signals caused by the onslaught of untraceable new money.
Precious metals headed a bit lower early this morning while noble metals headed in the opposite direction and built on yesterday’s hefty gains. Spot gold was quoted at $1,612 per ounce while spot silver was indicated at $28.05 in early trading.
The chief editor and founder of The Dollar Vigilante and avowed anarchist, holds precious metals for safety and holds their equities for profits. He counsels geopolitical diversity and paying close attention to precious metal stocks.
While it hasn't worked out this way for the last few years, we hold gold and silver bullion mostly for safety and we hold the mining shares to profit off of continued inflation. As well, we attempt to geopolitically diversify all of our holdings.
The deflationists have been wrong, at least in the US, since 1938. That was the last time there was actual deflation. Our chart of the US True Money Supply dating back to 1959 show that only for fleeting moments is there any hint of that line going south.
Yesterday we got our first direct evidence that at least for one of the stocks in our portfolio, Jaguar Mining, we weren't the only ones screaming that it was undervalued. Wednesday, someone put their money where their mouth was.