So what's the really smart money buying.......AAPL? WMT? CMG? GOOG?..........no really what are they buying? I know......TREASURIES!......nahhh.....They're buying artwork and a lot of it and they're spending that money fast and furiously. The recent art sale in NYC registered monster profits this week, while selling works that would have fetched one-tenth of their price a few short years ago. Money's moving and its moving fast. Its looking for value and one of the first red flags is very high end art. Its transportable and over the long run it holds its value. Why do you care? Because this move is signalling what the smart money is doing and they're getting out of fiat fast.
There's a war comin'. Its comin' fast and its not a shootin' war its a currency war, and the goal is to get to the bottom faster than the next guy. He who devalues first and fastest WINS! Smart money is big money and they know this. They're moving into hard assets and stores of wealth as the market asset prices move higher and higher. The purpose of establishing gold as a terrible "safe trade" has had some success in the West with the "dumb money" but not in the East as record amounts of precious metal is being accumulated as PRICES PLUMMET. Oh the beauty of it all. Paper prices wrecked as the East takes the discounted metal in massive amounts to their shores and convert ounces to kilograms....... and you're sitting there wondering if the price drop will ever end. Do you think the Asians are thinking the same thoughts? Actually they are and they cannot believe their fortune in still being able to buy a multi-millenial store of wealth FOR A DISCOUNT. They know the Western Central banks are playing the Volker game of controlling the gold price to maintain their fiat ponzi. They also know it has a finite timeline and they are going to act.
Enjoy the ponzi......the East surely is. Oh and one more thing just to let you know its not a one way trade for me. Buy some art. If you have a few hundred million lying around it really does make good sense here.........gl