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|Subject: My friend the jeweler called me||Date: 7/10/2013 11:00 AM|
|Author: PosFCF||Number: 428346 of 440021|
It was Friday, June 30th, 2013. He said: "Poz, I'm taking a bunch of gold down to the wholesaler and I've got 8 1oz. Krugerrands that I can let you have for $1240/each, do you want them?" I said I did, but that I'd have to sell some stock to get the capital. He said "I'm not worried about that, just know that of gold drops to...." at which point I interrupted and said "...to a $1000 or lower, that I still bought them at $1240." He said: "That's right, I just wanted it to be clear between us."
I jiggled things around a bit and gave him the money 2 days later at our weekly poker game at his house. In return, I got 8 brilliant uncirculated 1976 Krugerrands.
At the game I told him, next time you want to liquidate your gold and have coins, let me know and I'll buy them too.
He asked me where I thought the price of gold was going? I said that in the near term (next few months anything could happen so the price could drop to $900 or $1000 (my favorite wish right now) or there could be a bail-in in a major country and it could shoot up. No way of knowing or handicapping either direction. But if it dropped, I was buying more.
One thing I'm certain of is that if a country could print its way to prosperity, Weimar Germany would have ruled the wrold until Zimbabwe came along.
Meanwhile, the Krugerrands are in their Air-Tites (to protect from wear and scratches) and now Mark Carney and Mario Draghi seem to be in a race to see who can print more of their respective currencies faster.
The paper gold is selling off like crazy and 10,000 people line up at a store in China to buy, not sell, at these low prices.....and paying premiums to do so. Who's right or wrong in this issue? I don't know, but I suspect the people with the most history of fiats gone bad are the far Easterners and they're stocking up on physical (as opposed to paper) bullion.
Maybe this time is different ( I love that saying) and Bernanke, et al will prove that a country, indeed most of the world can, indeed print its way to prosperity.....papering over, as it were, the sins of past malinvestments.
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