By Jim Sinclair
- Gold is a unique currency.
- Gold becomes money when money fails.
- Gold is competition with fiat currency.
- Gold is not a commodity
- Gold is a barometer of fear.
- Attempts to break the barometer in order to avoid fear are futile both in trying to hold the value of gold down as well as preventing fear.
- Gold is a barometer of confidence in government’s functionality
- Gold is insurance. Trading your insurance is dangerous because when you need your insurance it will out-price itself immediately by hundreds or thousands of other currency units.
- Inflation equals money squared. Hyperinflation is a currency event, not an economic event.
- Gold is the financial high-ground when a Global Tsunami hits, such as sovereign default or the real threat thereof.
- Gold in your hand eliminates counter-party risks.
- Gold in hand removes financial agents between you and your assets.
- Gold ETFs defeat the definition and purpose of gold and are therefore poor choices for the gold investor.
- Claims on paper gold by ETFs far exceed anything that the true cash physical spot market could EVER provide.
- Velocity of money represents attitude of all consumer types from business to household.
- Velocity of money would spike when confidence in a currency is lost in terms of that currency.
- There is no practical way to drain debt from the fragile economic recovery therefore QE must go to infinity.
- Margin in gold is a financial death wish.
- A weak currency is a symptom of Inflation in Monetary Aggregates.
- The price of gold has many enemies, but the most seditionist are those who claim to be friends of gold – the majority of those authorities that write on gold.
- Hold your gold and get out of the system.
Original source: Jsmineset
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