The time has actually come for us to practice a little bit of modern-day alchemy – in this case, turning anything you can find into gold.Ive been doing that for the majority of the year up until now. Ive offered out of different stocks except those in markets in which I have strong faith for the future (energy, pharma, healthcare, gold mining) to purchase physical gold. I have been offering items on eBay I no longer want – high-end picture equipment and such, for example, and using that cash to purchase physical gold.Let me stop here for a minute to ensure you that I am not a “gold bug.” Im just an observer who uses his observations as a roadway map to the future. I ignore what passes as instant analysis in the popular press, because the immediacy is gone the moment an occasion happens – thus, whatever the press has to state about it is already dated, which implies you can not act on it.But what a given event suggests down the line … thats what I care about.And thats why Ive been practicing alchemy.See, weve got an issue. Its a big issue – the type of problem that alters the course of history, or at least the history we believed we were living.That problem is Western central lenders. Theyve lost control of the apple cart.They will not tell you that – great lord, no! What a mess that would make. Individuals the world over would stampede out of every major currency if the Fed or the Bank of England or the European Central Bank yielded that “Yep, we kinda aint got a freakin hint what were doing at this point, and, well, actually, individuals, were just throwin sketti at the wall, hopin sumin sticks.” Make no mistake – that is precisely whats going on. Central lenders are so desperate to revive comatose economies that they have actually turned to more than 6 years worth of untested, non-traditional financial policies, none of which have actually developed to this point.The suck-ups say that quantitative easing and zero-interest rates worked their magic since they conserved the economy from collapse. Thats like a doctor informing you that Aunt Hortense is healthy due to the fact that shes been on life support this entire time … though the minute the power stops working, Hortense will not last an hour.Despite six years of reckless financial policy, we are entrusted:
Long-range U.S. GDP expectations have been in decrease since 2011.
Those bullet points would not exist if central-banking policy had been effective. More crucial, we wouldnt have negative interest rates in Europe and Japan, and the Federal Reserve here in the house would not be demanding that U.S. banks build unfavorable rates into their most current stress tests.Negative rate of interest are the end of the rope. They are “cross your fingers” financial policy that has actually reached its conclusion.We are in a world never prior to seen. This is the world where unidentified beasts prowl – however its all the even worse due to the fact that we do not even know what the beasts in this world look like. Nobody – nobody! – has ever charted this landscape.And, so, Ive ended up being an alchemist.Protection Against the Dark UnknownAs I was writing this, a message from eBay popped onto my phone. A Nikon telephoto camera lens I havent utilized in eons offered for more than $500. I will combine that money with more that has actually arrived from other sales … and I will match that with recent stock sales to purchase gold coins.Theyre early- to mid-20th century bullion coins. Ive been buying all denominations, from one-ounce Austrian Coronas and near-half-ounce Mexican pesos to quarter-ounce Uruguayan pesos, Swiss Helvetias in the one-twentieth of an ounce variety and old Dutch guilders somewhat more than a tenth of an ounce.I want gold that is spendable and transportable.And I want gold that the government likely will not confiscate. Who knows if a desperate government will make a grab for standard bullion? Opportunities are it wont grab collectible, numismatic coins such as those Im buying.I pay a little more than the everyday rate of gold to purchase these – 5% or 6% – however its a cost Im willing to pay for the advantages of gold that is spendable, easily transportable and most likely secured against confiscation.Like I said, I am not a gold bug. At this stage of central-banker maleficence, I am better described as a worrywart.I see the natural conclusion of the policies that central banks are utilizing. Worse, I comprehend why bankers are needing to rely on those policies. Things out there are bad – bad at all.Central banking – left in its current stumble by the fiscal policies of ignoramuses who run Western federal governments – has actually done all it can. At this moment, its a thinking game amongst lenders who have no idea what will work – and its a waiting game for us.Something has to politicians and change.bankers have shown they are incapable of shepherding that modification. So, the system will foist chance on the politicians and bankers eventually … thats the great feature of the laws of economics – man (bankers) can manipulate the system for a while, however the system, like nature, always self-corrects. Gold, I assure you, will contribute in that correction. Paper possessions will not.
The tasks market is hemorrhaging middle-class income tasks and changing them with low-wage, service-sector jobs that can not support a middle-class way of life.
Production remains in an economic crisis.
Business earnings remain in a recession.
Ive offered out of different stocks except those in industries in which I have strong faith for the future (energy, pharma, health care, gold mining) to purchase physical gold. I have been selling products on eBay I no longer desire – high-end image gear and such, for circumstances, and utilizing that cash to buy physical gold.Let me stop here for a minute to guarantee you that I am not a “gold bug. I will combine that cash with more that has shown up from other sales … and I will pair that with recent stock sales to purchase gold coins.Theyre early- to mid-20th century bullion coins. Ive been buying all denominations, from one-ounce Austrian Coronas and near-half-ounce Mexican pesos to quarter-ounce Uruguayan pesos, Swiss Helvetias in the one-twentieth of an ounce range and old Dutch guilders somewhat more than a tenth of an ounce.I want gold that is spendable and transportable.And I desire gold that the government likely wont take. Possibilities are it will not get collectible, numismatic coins such as those Im buying.I pay a little bit more than the daily price of gold to buy these – 5% or 6% – but its a price Im willing to pay for the advantages of gold that is spendable, portable and probably safeguarded against confiscation.Like I said, I am not a gold bug.