Saturday, December 22, 2012

The year that was ...and GOLD!

What pretty-well represents 2012 from a Systemic PoV is the following Ratio Chart:-$TYX:$IRX&p=W&b=5&g=0&id=p37314807828

...which is indicating the relatively benign, albeit "heavily managed" Ratio between Long and Short Maturities Yield IMO viewed on a Weekly basis.
We have, over the run-up to Xmas witnessed a flurry of "interest" into the short-end however one gets the impression this is more related to the closing of trades and short-term money management over the Xmas trading period than any increasing thrust into the Here-and-Now of a Systemic rout. Time will tell however.

I'm still anticipating the short-end to "eventually" go into (firstly) Parity and (ultimately) Negativity as a "natural" outcome however TPTB (it would seem) is intent on following an "unnatural" approach for as long as is possible. There aren't many "tools" available to them to deflect a wholesale flight into the H'nN and if (when) a Left-field Event rears it's ugly head, look out below!

I recently outlined (on FoFoA's Blog) what IMHO is my take on Gold ...or more precisely MY GOLD! and I thought it worthwhile fleshing the thought-process out here.

In a recent post (there) FoFoA asked "What IS Gold" and the regular (and some "irregular") posters posited their thoughts ...coming mostly down to the conclusion - Gold is Wealth.
I "think" of Gold as Wealth also ...however, the KEY to a better understanding of what Gold IS needs a bit more definition I feel.

Gold is Gold because of its unique Suite of Properties ...which both Physically and Financially set it apart from all other "pretenders".
I'm not sure of the "exact" totals (who is!), but above-ground Gold is thought to be c 170kT. 40 of that is "public" Gold and the remainder "private" Gold. (we're talking 24k REAL Gold here)

"Private" Gold comes in many forms (jewellery, Bars on deposit and the like ...personal hoards etc)

What we, as say "western" individuals seem content to do is "invest" in Gold ...and by that I mean turning our backs on individual self-reliance by introducing a "third party" into the equation of what Gold is.
ANY introduction of a third-party (in anything!) implies the introduction of an element of risk ...which (by extension) implies a requisite degree of Faith (miniscule to extreme - but faith nonetheless).

So, to best  understand what Gold really is (IMHO)...and to best harness those unique suite of properties, we can say that - to be completely and utterly serving it's best role in society, Gold needs also to be held in a manner that requires NO FAITH whatsoever!
When we revisit our above-ground estimates, "most" Gold currently held (at least in the west) doesn't qualify as anything but "investment" Gold,  with "third-party" associations attached ...AND requiring a degree of Faith to determine it's value via the markets, it's ownership via vaults, contracts etc.

MY Gold? ....has none of the "investment" characteristics.

The Gold I am the "current" custodian of  - MY Gold is a bit of a misnomer as it REALLY is in constant motion through time and should be regarded currently as OUR (My familys) Gold - requires no Faith whatsoever on my part.
Were MY Gold to be currently in-the-game, then I'd have to introduce an element of Faith into the equation and in turn rely on things like $PoG to "evaluate" it.

Nameless, faceless souls the world over share this Gold perspective however none too many (it would seem) are "of-the-western-mindset".

Talk and discussions relating to FreeGold will inevitably need to embrace this "lack-of-requisite Faith" aspect as a cornerstone of what Gold can and should do for both Individuals and Society going forward.
The Global thrust toward Socialism at the expense of the Free-market will I feel slow this process, but ultimately won't stop it.

Merry Xmas and a Happy New Year one and all - 2013 promises to be interesting to say the least.

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