Tuesday, August 30, 2011

Amused to Death

There are not that many people in New Zealand that understand the basics of gold and silver. A bubble this precious metal market is not. The pressure pulling gold prices higher and currencies lower are not understood by the public at large.

In fact, gold spruikers (buyers) are still trying to separate the public from their gold and silver. Go to any Mall in Auckland or Los Angeles and there, in shiny gold allure, are the booths offering you a little over 75% or less of the spot price for the gold and silver content of your jewellery. If the public is still selling, and they are, then how on earth can this be a bubble in gold and silver?

If 20 people on the streets of your city were asked if they owned any pure gold as an investment or a hedge against inflating currencies, how many of them would answer in the positive? A guess; one out of fifty, maybe?

Most people dip their financial toes into the murky golden pond with great trepidation. They often comment to me, "Wow, you would be happy with gold right now?" and promptly justify why it is in a bubble and why they are still invested in housing or financial instruments. No swimming allowed it seems.

Following on from yesterdays blog, one can see why the public is ignorant of the financial spruikers that separate them from their money. The mainstream media (MSM) are not firing their best educational shots in the direction of the public. To the contrary, they go for the most ridiculous headlines, especially when it's to do with gold. Their take on gold is nauseatingly stupid. Anybody buying it is a 'gold bug' which is often said in a derogatory tone. No mention then of the huge amounts of gold being bought by world central banks or other market fundamentals?

Perhaps we by habit watch the news more in hope of better things. Perhaps we should just ditch it and send them a message. Television is amusing us to death. Whether you believe in conspiracy theories or not, it doesn't change what is plainly obvious; the public are not aware of the difficulties facing them in the near future.

Before and after the first world war, nation states welcomed with open arms the charismatic leaders that offered them hope and prosperity; freedom from the shackles of poverty and the ruling classes that controlled their lives. The result of this mania was death and destruction on a massive scale for the next twenty years.

What will the next 'messiah' look like after the next global financial catastrophe? Remember, Europeans are a tribal/racial bunch and old scores are still to be settled flowing back many generations. Massive racial hatred may only be a spark away from igniting once again.

Do we start to ponder our own futures without the amusement of the media, seeing reality for what is is?

Or do we contunue to be amused to death?

Gold in New Zealand dollars: $2111.82 per oz
Previous all time high: $2319.47 per oz (23 Aug, 2011)

Silver in New Zealand dollars: $48.27 per oz
Previous all time high: $59.19
per oz (30 Apr, 2011)

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The Anglo-Far East Company
The Original Private Gold and Silver Bullion Custodian
Your reference: an-001
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