Discussion in 'YouTube Digest' started by ozcopper, Jun 10, 2021.
I suspect that there's a set amount of shiney that the powers-that-be graciously will allow the serfs to buy up. Basically, Mickey Mouse amounts are allocated to the public market and no more.
If they were to actually sell into a free market, a kind of self-fulfilling prophecy / self-perpetuating situation could occur where pm consumption by the public will keep increasing as the supply of bullion available to them for purchase keeps increasing.
People would be cashing out their fiat money and putting it into pm's. Because pm's are now trading freely, more people (the herd effect) will start participating. As more people start participating, the larger this market of physical pm's will grow, putting pressure on paper suppression schemes. More people will start wondering about paper pm ETF's. Skepticism about it will grow. Likewise, so will skepticism about institutions claiming to safely hold pm purchases in their secure vaults. Are the pm's really there or are they simply allocations on a book keepers ledger? Who really knows?
It was not that long ago that bank notes in certain countries still claimed or stated that the fiat script can be exchanged for "sterling" (silver) etc because the paper money was still backed by pm's back in those days.
What backs fiat today? That is the real question.
Supply of pm's to the public is deliberately limited and set. In times of high demand the powers that be will simply say "unavailable due to high demand". The intention is both to cool public appetite and to limit the total supply made available to the public. They don't mind that the public dabbles in small amounts of pm trading but the last thing they want is for the public to start getting ideas that pm's are a substitute for or more reliable store of value than (infinitely created) fiat.
It is with some hilarity that I note how certain world famous economists and financial experts go around spreading the word that gold is not money or a "barbaric relict" whilst at the same time the major banks and a number of countries literally cannot buy up enough of this "useless stuff". It's an impossible contradiction. Both sets of arguments cannot be true.
Either the big or central banks & certain (not all) national governments are right to consider gold to be money, or, they are utterly mistaken and the world leading economists and financial experts are correct and gold is worthless.
Which side of the debate would you place your trust and faith in?
Your argument falls down when you intimate that the public has a certain amount of intelligence. I think that the herd that you refer to will still toe the government line and stick to fiat currencies.
I'm under no illusions about the general public.
Intelligence, or at least having basic intelligence above room temp IQ, plays some part in whether a person can discern between reality and manipulated nonsense but unfortunately it's all too common among the intelligent, and particularly, among the educated intelligent to subscribe and buy in to conditioning and brainwashing. There's no fool like an educated fool.
Paradoxically, often the more "educated" they are, (educated in what exactly? being the operative question here) the more insane and ultimately self-harming people's beliefs become.
The first alarm bell from that interesting video posted by tdtwedt rings around the 0'30" mark.
Imo, when your assets are kept under the control of another party, and that includes having assets in Safety Deposit Boxes controlled by Banks or another third party, stored in secure vaults in a magic mountain cave in Switzerland and so on, then you're taking a leap of faith which may come back to haunt you some day.
To myself, the entire point of stacking is to create a cushion of last resort against future turmoil. During such a time it's not unreasonable to expect to see paper holdings, shares and so on go up in smoke, to see money devalued and / or confiscated, to be left unemployed and to be thrown into a kind of Venezuela or Argentina barter economy to provide for the next meal.
Another way to put it is that a vote for gold (or other pm's) is a vote against faith and trust in the authorities and the system. Gold may not be very useful for speculation, earning interest or making spectacular returns, but whatever else may happen, the value of gold and its bartering power does not go down to zero.
Therefore, imo the last thing any serious stacker ought to be doing is to outsource the holding and management of their pm's to third parties. Anybody who has been paying attention ought to be aware by now of the (credible imo) rumours going around about real vs imaginary (ledger) pm holdings by many of the major institutions and vaults.
What do those vaults really contain?
When last were serious audits performed?
How credible and transparent are the audits of those vaults?
*How credible are assurances that the audits were credible and transparent?
How many of these gold & silver ETF's are really backed up by pm's and how many of them are only backed up by ledger entries claiming to represent pm's?
*As the saying goes, you know a rumour is true once it has been officially denied.
As far as I can determine there are many interesting and inventive accounting practices in use in the industry, all of which are perfectly legal and valid. One such practice is to make swaps at the time that audits are performed which show that the pm's are in the inventory. The second the audit is concluded the pm's are swapped out again. All legal. All accepted practice, but where does that leave one when things go cataclysmicly wrong and you go to retrieve your property in person?
What happens when you're toward the middle and the back of that queue?
Will you really be getting your property?
Imo, if you don't hold it you don't own it.
From the Kitco interview clip
Remind me again what happened at Enron + Arthur Anderson, or Wirecard + Ernst and Young.
Separate names with a comma.