when used as a measure of >other< cash fleeing shoddy assets, that's correct.
and there are plenty of shoddy assets left to be dumped.
of course none of that has much to do with growing an economy,
unlike the vast majority of assets in brk.a
Are you still adding to AG at these prices ?"
No, I'm all in with my core position, the largest position I've ever taken in one stock.
But I do some trading around that. I will buy on a dip, and sell covered calls on my trading position. Bought some around $22 in late August and sold Sept $25 calls. If it's not called away next Friday, I'll sell the Oct $25's on the same shares. Try to do something every month. It's volatile enough there is a good premium in the options. Have sold some puts also.
gold is setting up to be the mega short of a lifetime
So many super bulls in a thin market hoarding something with little or no practicle use.
No industrial uses, you can't eat it, burn it for heat or energy or wear it to keep warm.
Midas touch has spread to epidemic proportions.
Wysote, Unfortunately you typify the ignorance that is so pervasive in America.
Please read this essay written by "The Maestro" himself.
Greenspan understood the importance of gold in a free society and for economic freedom and probably why he ruled the Fed opposite those beliefs he knew to be true.
"When gold is accepted as the medium of exchange by most or all nations, an unhampered free international gold standard serves to foster a world-wide division of labor and the broadest international trade. Even though the units of exchange (the dollar, the pound, the franc, etc.) differ from country to country, when all are defined in terms of gold the economies of the different countries act as one -- so long as there are no restrainta on trade or on the movement of capital.
Credit, interest rates, and prices tend to follow similar patterns in all countries. For example, if banks in one country extend credit too liberally, interest rates in that country will tend to fall, inducing depositors to shift their gold to higher-interest paying banks in other countries. This will immediately cause a shortage of bank reserves in the "easy money" country, inducing tighter credit standards and a return to competitively higher interest rates again."
(In short, gold acts as a kind of "self-adjustment" mechanism that keeps governments small, conservative and honest.)
In 1982 after a vicious 16-17 year bear market (1966)
Time Magazine proclaimed on it's cover that, "Stocks are Dead!"
The DOW was just under $800. and so was gold for a 1:1 ratio.
Over the next 18 years stocks proved to be anything but dead as the DOW topped out in late 1999 around $11,800. ($16,000 in 2011 dollars).
Gold conversely was dead having declined over the 18 year span all the way down to $253.!
The DOW/Gold ratio in 1999 was 1:45.
Since that bull top in stocks in 1999 the DOW and other related stocks have generally declined.
Use any inflation calculator to verify. Even the Fed's!
They haven't always declined nominally and this has fooled many people but adjusted for inflation (The Fed keeps debasing our dollar) stocks have declined.
If you track the bull and bear market patterns over the past century you will find they almost mirror each other.
So from a historical perspective then we can expect the stock market bear to continue to 2017-18 and the commodity bull market the same.
Today the DOW/Gold ratio is about 1:6 and history shows that eventually and before the new bull stock market can begin we must meet once again at the classic 1:1 DOW/Gold ratio.
DOW $5,000- Gold $5,000 ?
DOW $3,000- Gold $3,000.?
We shall have to wait and see but we will see that 1:1 ratio eventually and that is a certainty.