RE: RE: March 31 is the dayShort story: Credit Cards are next thing to crash. Buy some gold, hold some. Buy HRG for upside potential IMO
The next shoe to drop. We have lived through a period where consumption based on CREDIT drove the world economy. Assets rise in price (asset inflation) and people saw what appeared to be a rise in their net worth. This followed, with banks and various institutions making more credit available in a seemingly endless spiral up. What for most people historically in America was their biggest savings vehicle, their home, became their biggest piggy bank. Big big mistake. The reason it was the biggest savings, ironically, in the past, was NOT that it provided necessarily the greatest returns, it was ALL about compulsory savings, in the sense that almost none would be able to methodically put aside, month in month out, a fixed amount and NOT spend it at some point along the way, for WHATEVER reasons put forward. Thus paying down a 20 year mortgage, WAS their savings, and for MANY the ONLY savings. Even if the property never went up in value, at the end of twenty years or so they owned it outright, previously that is. And nothing else many did led to savings as great, again, not because it could not have, but because they did not have the discipline to invest for 20 years. For example: if they had bought Gold every month, they would be sitting with far more right now. That house, it became a line of credit, an asset to be levered etc. So of course the mess and it is not going away anytime soon. This is the most fundamental thing people need to realize when looking at the BIG picture, and realize that the concept spouted, and said over and over, of solving this "recession" next quarter, or next year, is NOT going to happen. This will take years. And it gets worse unfortunately.
Now what is coming? Credit Card crash of course. When desperate people are about to lose everything, and institutions have given them pieces of plastic, upon which they can charge ANYTHING, up to their limits, raised of course to ridiculous amounts in many/most cases, what have they to lose, if that is their LAST source of more funds???? So they charged them up on top of everything else, and much of this debt is not going to get paid back. Who holds that: Banks of course, and folks like American Express, or CIBC in Canada. They are now beginning to set aside greater amounts. But it is huge and will like the last year, keep getting bigger, with the to be expected revisions all along, seemingly surprising, but NOT so in reality.
The ONLY way they can right this ship from a massive implosion is to inflate. That IS the big and frankly honest answer. They will never say that however. They will debate the government debt levels, but when pushed, they almost have no choice, because bankruptcy of the big banks, and then some governments (repudiation of debt Tbills and Bonds) seems a poor choice when you can print money, and keep things going. The only way we get the deflationary depression is if they are too slow to react, which IS possible. Not because they do not want to, but because they dither.
So gold will rocket in EITHER scenario, BECAUSE it will get back to why it REALLY has value in the first place. A store of value against everything else. It just is that rare thing, with unique properties. Nothing else is so compact, rare, universal, hard to counterfeit, non destructible and very storable (in the ground or even in Salt Water it does not degrade) . This should be the focus of anyone smart right now.IMO Play and make money in the markets, but understand the very basic situation before listening to all the day to day nonsense. Here: HRG. Under any normal management, this stock would trade far higher. It would have a proper, functioning, in your face investor relations team promoting it, and they would be doing deals and expanding, in both Africa and Russia, USING the public vehicle. To date of course this has not happened of late, for all the often reviewed reasons. BUT as I said many times, sometimes even slow folks can't stand against a tidal wave. So the odds remain, in my opinion, in favour of a rising price, from these lows ranges. If they do things right, the stock will fly. Again: odds up are more than odds down.IMO Gold itself: going WAY higher. All one has to do is look at the macro picture and not get forced out on manipulated, traded, volatility. Gold is being accumulated for its wealth storage quality, jewellery will come a distant second. Folks that do not understand this will miss out.IMO And we have just begun to see the hoarding start. No government will be able to stop it if it gets rolling. WHY? Because the very reason many do this, is to avoid the mess CAUSED by the very people who would then seize it.IMO
Buy some. Hold some. Hide some.IMO I will state categorically: I would not have my gold available for ANY government, no matter what laws they pass. To each their own. But sometime, historically people have to stand up for at least something they believe, EVEN when it goes against the laws, but is by their individual morals the right thing to do. Examples abound: Where would you have stood in Germany, how about in the Racist South of the U.S. at times, how about going to Vietnam. That is how I see it, should that situation arise.