A couple of quotes from Andy Smith's Precious Thoughts commentary 19 April 2010 I like:
"the euro, still, arguably the most toxic structured product built by man"
"But this [SEC vs Goldman Sachs] is a never-ending story: The Inquisition -> Salem -> McCarthy -> Spitzer -> and here we are. It's about politics/power/control. Guilt/innocence bit players."
"Goldman were arguably the hub in the wheel [or at least the ball bearings; so this is not Lehman 2, but Lehman *2?]. Big Gov is about to put a boot in the hub. Watch what happens to the spokes: - 'Counterparty' a dirty word? We are closer to that Indian village end-game; extended families the only circle of trust, assets you can sleep nights over and on, in your mattress, the only rational investible products. The opposite of ‘synthetic’ is ‘real’."If indeed counterparty becomes a dirty word, and people won't trust gold ETFs/GoldMoney/Perth Mint Depository or any other custodial facility, the problem is that the minting and refining industry as a whole does not have the production capacity to meet retail/mass market demand for coins and bars in my view. Look forward to high premiums and/or rationing of production. See my posts:
FUD. Fear, uncertainty, doubt. and
Why are there not enough coins?Remembering that the ones who made money from the gold rushes were those selling picks and shovels to the prospectors, then if I am right the smartest investment will not be gold, but minters and refiners of gold.