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“Simon
Black” of Sovereign Man
is one of the best writers of “protection-related” articles
in the blogosphere. I have quoted him numerous times, and an article he
published last week struck a chord in my psyche. Not so much that its
theme is novel – as I have been writing of the need to own PHYSICAL
assets for some time – but as it pertains to a REAL LIFE
SITUATION…
Guest
Post: Why You Always Want Physical Everything
Granted,
touring San Marino is not an experience shared by most. However, taking
one’s car to the gas station most certainly is. As Simon describes, he literally
could not use a credit card in numerous Italian establishments, as mistrust
in the financial system is rapidly expanding. With the Italian
economy contracting…
BBC News – Italian
economy contracts 0.7% in second quarter
…debt
exploding…
No time for Mr
Monti: Italy will have to restructure its debt
…banks
failing…
REPORT:
ITALIAN BANK DECLARES ‘HOLIDAY’
…and
poverty proliferating…
28,000
“Cash For Gold” Outlets in Italy as Serfs are Forced to Sell
…shop
owners are AFRAID of financial institutions, and desperate for
“cash”; in other words, hard currency free of counterparty
risk. Moreover, Black astutely notes,
Why
you always want physical EVERYTHING…
Simon
Black on August 23, 2012
It’s
the same thing with gold and silver when you think about it. In the early
days of the post-Lehman financial crisis, precious metals prices were
tanking. At least, on paper.
Gold and
silver contract prices may have been plummeting in futures exchanges around
the world, but simultaneously, premiums for physical gold and silver coins
were skyrocketing. The US mint was unable to keep up with demand for physical
coins, and premiums hit double digits by December 2008.
It was an
obvious example of the huge disparity between paper and physical prices. In
tough times, the paper price is irrelevant – physical is all that
matters.
Continue
reading on Sovereign
Man
I have exhaustively
written of the EXPLOSION of PHYSICAL PM premiums during late 2008 –
when fear of market meltdown, and currency collapse,
peaked. Black is 100% in his assertion, other than avoiding the PINK ELEPHANT
IN THE ROOM – that PM prices were “plummeting on futures
exchanges” due to Cartel naked shorting, to prevent PMs from
being rightfully recognized as safe havens. Irrespective, it was fear that
caused dislocation of the PAPER and PHYSICAL markets, yielding premiums of
nearly 100% in silver, and lesser levels in gold. Conversely, GREED came into
play in April 2011, when premiums also soared due to PHYSICAL silver
shortages, this time in otherwise calm financial markets.
Black’s
Italian experience represents a small microcosm of the current
European situation, but I ASSURE you the microcosm will shortly turn
“macro.” Initially, Europeans – and Americans, Britons,
Japanese, etc. – will fear the financial institutions processing
fiat payments. However, they will eventually shun the fiat payments
themselves. When that occurs – potentially much sooner than you
might imagine – if you haven’t traded your fiat currency for REAL
MONEY, it will be too late.
PROTECT
YOURSELF, and do it NOW!
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