Investing in precious metals 101

Precious metals paper vs physical -Craig Hemke's Palladium thesis

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  • Sat, Feb 23, 2019 - 11:48pm

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    aquaman5

    aquaman5

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    Precious metals paper vs physical -Craig Hemke's Palladium thesis

I found Craig Hemke’s recent palladium analysis very insightful and possible. The way I see it, the “heavy weights” have been able to paper over the gold and silver markets in concert because they “literally” run the show.  I often wonder about why the SEC turns a blind eye to all of this, but that is an entire discussion unto itself.

However, as Craig succinctly points out,  the paper leverage factor with regards to palladium is off the charts.  So, if palladium is the canary in the coal mine, where would that put platinum. I have only a small holding in either of these two metals.  But it stands to reason that it would only take a small number of palladium paper contract holders to demand delivery (it could just be a handful of catalytic converter manufactures wanting to guarantee their supply for production purposes) to expose to the world that the emperor has no cloths; thus causing a long deferred disconnect between physical and paper palladium contracts  to ACTUALLY OCCUR.

Assuming that transpired, it would seem to me platinum is in pretty much in the same boat because of its low above ground physical supply.  And as we stand today, platinum is at an all time ratio low to gold and silver. Given these conditions, equally balancing (for the most part) a person’s physical precious metal allocation between gold/silver/platinum seems to be a reasonable plan.  A  person could easily do a IRC 1031 exchange with silver or gold for platinum with no current federal tax implication and take advantage of the favorable gold/silver  to platinum all time low ratio situation.

I’m a new subsciberto Peak Prosperity, and I am happy to be in a group of intelligent folks that have read their history books and have come to the realization that the probability of this time “being different” is extremely remote. It is Meathead 101. Debt has and always will crush empires from the inside out. And “ALL”  desperate governments throughout the millennia have (and always will) resort to desperate measures to avoid being blamed for their inexcusable fiscal policy management that they supported so they could reap the benefits at the expense of the citizens they are supposed to be looking out for.  

Raising taxes is such a joke. In the big scheme of things (when we are talking trillions), tax hikes are counter productive. First they can’t even come close to even begin to solve the “Gargantuan Debt Problem”, and two, they just chase away the one class of people who might actually be able to get the ship heading in the right direction by increasing  national productivity  …GDP.  

As the USA has announced no plan whatsoever to address our relentless currency debasement diaster, I am very concerned about losing our world reserve currency status. The US Government debased the USD so severely, that when Nixon decoupled the USD from gold our goose was cooked.  Kissenger’s plan to use US military might to get the Saudis (OPEC) to only use USD’s to transact in was ingenious at the time, but now the chickens are coming home to roost. Weaponizing the USD utilizing the SWIFT system has only encouraged the world to begin abandoning the USD that much faster.  A sad (all too common throughout history) story indeed. 

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