Nice article.
Energy (especially oil) is the real currency.
You can't 'hold' energy unless you have batteries, or oil tank in your yard or whatever. Buying solar cells is probably another way for individual or business to hold on to energy producer, which utilities and oil companies do not like. Forget the government subsidy of AT stuff, folks are scared of collapse and will buy/lease solar cells as actual physical value for energy as currency. Personally, I would chose to hold solar cells over gold
(even knowing solar cell output degrades over say 20-30 years to less than say 50% of its brand-new %eff output. Gold would still be gold, but the market will determine its resale or trade value.
Silver is maybe the better play as multiple uses (energy commodity) as coinage, electronics (like solar cells use). Without electronics, modern quantities of energy (think oil) cannot be produced and delivered.
Few folks have any reasoning ability anymore (nor accounting skills, includes me). But I do knows when 1 +1 =2. Buy only historical PM coinage ( for appreciation potential, regardless of marketing conditions). 9-11 coins (as example) are worthless, except in future when most have been re-melted and have been sold-off as a personal investment disaster. Someday, though, if humans still exist, 9-11 coins will be rare in numbers and will gain in value.
Most of us know to buy government historical PM coinage, as its certified. Private mint is hardly equal.
Gold can't follow Oil in value, unless one does figure in cost of oil products in getting the PMs mined, etc. Gold is a 'dream metal'. It does not rust. Its a commodity, but its value is stuff of fairy tales (you have to know its value to you and others). For example, art was one of its first uses. Then, it became reasonable to carry about for trade value.
Gold probably does not have any relationship to Oil, as its not used in its production (except in electronics). A bunch of nut investment houses have made it so (as something to be highly desired, for storing monetary value). I am not against gold.
Practically speaking, I just see no relationship to Oil, as one could produce oil without electronics (manual drilling and pumping). But, I am wrong about Gold and Oil relationship . . . as virtually everyone else 'sees' the relationship . . . because they are taught too. You do not need a pick made of gold to dig an oil tap hole in the ground.
The above was just for argument sake, as no one else would talk of such things. My thoughts were completely from an angle of looking from outside the Wall Street venue of whats valuable to their game: you must think paper (stocks) gold is. When citizens think value is paper they have become alienated from physical value. Another way to 'out-source' jobs as freedom enabling: who would ever want free citizens?
Imagine this: if gold did not exist . . . they would have to use another gauge to value things . . . so they can control them.
In the modern economy . . . the banker IS the worker . . . thus for them to have a daily profit as their job . . . gold must be electronic paper trade.
Really liked the article!
The above makes no sense to 'investors', as they have been schooled to believe otherwise: to play the stock game in the Wall Street Casino you HAVE to believe gold has somehow equal value to oil.
Back to HL:
The stock can have no value except as their is public (and investor) demand for it. the stock price can't go much lower without mines having to cut work-forces and close down some ventures. I do not see how this can be . . . and we should soon be seeing HL price going up . . . due to fear caused by developing Ukraine situation? Biggest dilema, is how to guess PM/Oil effect
relationship . . . in a low interest economy . . . where top 5% hold most of wealth and QE is backed off . . . will Russia
really cut EU off from petro (remember:big WWII factor for USA started by cutting petro supplies to Japan). More sanctions effect . . . who knows? Russia gets $100+ price for its oil from China . . . EU may be cut back as customer. EU, then, falls into recession. This is not much of a winning game plan for anyone, even if Russia continues to supply higher priced energy products through third-party pipeline routes to EU (inflationary).
