Certainly the beatdown in the PM headline price today was a setback for the retail investors in the paper game, but for those that understand just how broken the system is from a mathematical standpoint it was just another opportunity to buy physical. Just a few short weeks after QE to infinity and we have metal prices just strangled. As Central Bank after Central Bank announce purchases of Gold tonnage we have struggling gold prices. As universal debasement of developed debtor nation's currencies occur we have gold losing value. As we continue to struggle with world economies as the debt super cycle enters into its critical phase one has to ask themselves where IS safety for their wealth. Is it in a "rigged market" with the exodus of millions of investors? Is it in sovereign bonds that are at historically low rates at the end of a very long bull cycle? Maybe its real estate? They aren't making anymore of it, but many types of real estate has heavy carrying costs. Of course fertile farmland will retain value but its already selling for over 10K/acre in the corn belt, and has to be managed for efficient usage. Virtually every asset class has a counter-party risk that make your decision difficult at best.
I listened to a Kyle Bass interview yesterday (sorry my device tonight won't permit me linking) and I was surprised to hear some of his circuitous logic. He began his interview with a slightly rambling few statements that involved slamming the mathematics of the debt bubble in most of the developed nations and stated that he felt a major was was inevitable. He then drifted into an explanation later that he owned gold but did not view it necessarily as one of his best ideas....and then wandered into a relatively weak defense of his housing and his MBS investments. I began to sense he was more or less talking his book and kept waiting for him to go back to his comments on a major war coming because of the devastating debt conditions, but he ended with a weak argument that things would muddle through after starting out with a declarative "hell is coming" introduction. I think a lot of us are like him...intellectually we feel that "hell is coming" but deep down we're praying we muddle through and trying to position ourselves if we make it through the gauntlet. So take today AND the last few weeks and just recognize that down the road this is going to look like a blip when nature takes over.
I hope all of you and yours have a VERY HAPPY HOLIDAY....I am on the road and should be home in a few days and back on my main device....gl all