Monopoly: Pass Go, bankers fined, paper assets

Blame the bankers?

We are enduring an era whereby institutional society is playing an identical game to the likes of Monopoly. Bankers have the opportunity to create money out of no-where and play by a different set of rules in order to make the game more interesting. Consequences for bankers may be to “pass go” and not collect their bonus but consequences for the unfortunate will either contribute to a devaluation of their existing currency and/or prejudice their position within the pecking order.  The board game can even accommodate players that wish to set up cartels and fix interest payments on money borrowed from the bank similar to other real life events.

An anomaly that springs to mind when trying to find an example to illustrate a similarity to the NatWest debacle (where I.T went down and people were unable to draw their own funds from their accounts) – A banker that has been playing Monopoly for hours: he’s lost interest, there is no obvious upside for him continuing to play,  his vision has become blurred and all he can hear is a ringing in his ears. At this point people would probably decide to pack the game in or choose a different banker. In reality however, what better alternative is there? More banks – similar problems.

Insider's Guide to gold and silver

The market is starting to cotton onto the fact that money kept in the bank shouldn’t be a game for the rich that control it, nor should it sit there exposed to devaluation, inflation and counter-party risk. Instead, Savvy investors are protecting their cash and backing it with Physical Gold that (at worst) maintains its value with inflation.  By owning Physical Gold – you are eliminating counter-party risk and removing the banker by maintaining your own wealth.


Purchase Gold. Quickly Quietly…

Wait to purchase gold? Or buy gold and wait?

Physical Gold have been talking to their Savvy clients, IFAs and analysts, and they all like to purchase gold on every dip.

In fact, they’re telling me the violent sell-offs we’ve seen (like last Friday’s) are having a positive effect: They’re shaking out the weak hands and speculators and long-term investors are purchasing gold during these panic sell-offs.

This thesis has been confirmed by the data published by the World Gold Council.

The volatility for gold over the last few months will favour long-term investors who buy and hold for years over speculators who try to trade day-to-day gyrations.

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According to recent World Gold Council data, Central banks increased their gold hoards by 400 metric tons each equal to almost 2,205 pounds in the 12 months through March 31, up from 156 tons during the prior year, The council “is now confident that central banks will continue to buy gold and has added official-sector purchases as a new element of gold demand.”

Short-term speculators and day traders are fleeing the market and we have seen less interest in gold funds and ETFs relative to its physical counterpart. These short-term risk takers are now allocating more and more of their portfolios to physical gold for long-term preservation.

With the UK and Europe privy to another round of quantitative easing and rumours over the U.S following suit, the fundamentals that support gold as a safe haven are becoming stronger especially in the dips and particularly for the long term.