Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19
Where is the Top for Natural Gas? - 7th Nov 19
Why Fractional Shares Don’t Make Sense - 7th Nov 19
The Fed Is Chasing Its Own Tail; It Doesn’t Care What You Think - 7th Nov 19
China’s path from World’s Factory to World Market - 7th Nov 19
Where Is That Confounded Recession? - 7th Nov 19
FREE eBook - The Investment Strategy that could change your future - 7th Nov 19
Is There a Stock Market Breakout Ahead? - 6th Nov 19
These Indicators Aren’t Putting to an Economic Resurgence - 6th Nov 19
Understanding the Different Types of Travel Insurance - 6th Nov 19
The Biggest Gold Story Of 2020 - 6th Nov 19
Best Money Saving FREE Bonfire Night Fire Works Show Sheffield 2019 - 5th Nov 19
Is the Run on the US Dollar Due to Panic or Greed? - 5th Nov 19
Reasons Why Madrid Attracts Young Professionals - 5th Nov 19
Larger Bullish Move in USD/JPY May Just Be Getting Started - 5th Nov 19
Constructive Action in Gold & Silver Stocks - 5th Nov 19
The Boring Industry That Hands +500% Gains - 5th Nov 19
Stock Market Chartology vs Fundamentals - 4th Nov 19
The Fed’s Policy Is Like Swatting Flies with Nuclear Weapons - 4th Nov 19
Stock Market Warning: US Credit Delinquencies To Skyrocket In Q4 - 4th Nov 19
Stock Market Intermediate Topping Process Continues - 4th Nov 19
Stock Market $SPY Expanded Flat, Déjà Vu All Over Again - 4th Nov 19
How To Buy Gold For $3 An Ounce - 4th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

Gold, Comfort, Karma, and Money Velocity

Commodities / Gold and Silver 2014 Oct 03, 2014 - 11:40 AM GMT

By: Dr_Jeff_Lewis

Commodities I keep hearing...

"You don't want a world where silver is $350 or gold is $10000".

Maybe not. But the probability of that happening, with all the "known, knowns" of risk - make it crucial to own some amount just in case.

Obviously, you know this as well as anyone. And no one wants chaos, suffering, and war. Just as no one wants a world of extreme, speculative excess that is so dangerous and extreme that very little remains of a real economy.


It used to be that in the age of missiles, projectiles, and ballistic, calculus was the most important math. But now we are in the Information Age where political-academic-financial institutions have normalized risk.

They've used statistics to normalize low probability. They’ve eliminated long tale risk; extreme events that appear statistically at the end of the curve. Black swans.

It's a very low likelihood that a candy machine could fall on you today as you walk by. It could happen, but it's perfectly fine to eliminate that from your worries or fears. That’s rare, but not geometric in the potential fallout. Others will not likely be harmed too badly.

However, if you happen to be carrying explosives and the candy machine falls on you, you might destroy the whole building or city or region - depending on the type of explosive.

And that is what constitutes risk in what is left of these markets. The collective confusion over action versus intentions and the power of manifestation bothers me. It's back enough that we've reached the point where generally people prefer not to think for themselves.

In some part they don't have to, thanks in some part to technology and mainly dollar based finance. That will correct itself in a very painful way, initially for the worse. As soon as the subject of collapse arises, most people begin reaching for something to soothe their dissonance.

People are worried that one might somehow magically manifest sentiment by choosing to hedge against potential disaster. If you are a proponent, that means you are willing it via karma.

Collectively, putting on a car seat belt doesn't will a crash to happen. Nor does choosing to invest in firearm training make it more likely that the need to use it will arise.

Or changing eating habits in the name of the desire to feel better or prevent illness. Because if you are eating to prevent getting sick, you are still focusing on being sick at some point.

Choosing a whole set of actions as a way of life so that you don't have to suffer when the very plausible happens again; it reminds me of the rationale used for fighting deflation.

The belief is that if prices are falling, people will put off purchases in order to wait for lower prices. In reality, that doesn't happen because so much of spending occurs for goods that cannot be put off - like food and energy or the cost and maintenance of housing.

Recently, Bloomberg's Comfort Index reported the jobless in America haven't been this comfortable since 2007...This comes as a direct result of government transfer payments.

My contention is that money velocity will rise in the wake of the next crisis as a tsunami of government transfer payments "politically justified" on various fronts; not least of which is by the default avoidance at all costs banking elite.

Remaining comfortable, clueless or unemployed will be a further motivating political factor. But derivatives are the known unknown. We are biased toward liquidity freeze because of now monetary policy.

QE was never tried in a shadow banking system that runs on overnight loans. These loans require a constant flow of high quality collateral. QE competes directly with this.

And yet, all too often it goes without mention that this good collateral is in and of itself hitched to a massively broken set of promises. Ultimately, we get the evil side of usury; total ownership and control.

This is a monopoly ordained by the government to issue the sole legal tender in the land. At the end of the day the referendum on all this will be the real economy.

Everything can look rosy on paper due to the manipulations in the markets, but there won't be enough real goods and services to cash all these promises. Real wealth cannot be printed.

In addition to a hedge against the greed-driven stupidity of the elite - having tangible collateral makes for a trustworthy base of capital.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules