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.Poz
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