never fight the last war, this is what is proven by military history for 2500 years. If you do, you will get destroyed.
Today there was a small but telling tidbit in the gold space, which probably fortells a bit of the future.
Fortuna Silver, a fine company, just announced a deepening of their dispute with Mexico over taxes.
The Mexicans just elected by an overwhelming figure, a new socialist president last year. He is an avowed socialist, not like these democrats in u.s. congress who are closet socialists (*although they are gradually revealing themselves)
Why is this important? Because the mexican nation is going socialist. The leaders now are increasing corrupt, and soon Mexico will rank in the top 25 corrupt nations on earth, a staggering thought, and as the country continues to believe in mob rule and the totalitarian state, they will seize assets. The most obvious way is simple taxation. So Fortuna, the guys there are honest as can be but they are being held up at gunpoint by the che gevarra types, el banditos!
And SLJ has a ton of exposure, even as a fund, to mexico, which mines the most silver on earth..........30 or even 20 years ago, it was accepted wisdom that a silver company would outperform the metal in a precious metals bull by basically a 3 to 5X ratio, an incredible thought.
But that is the last war. Think of this: what if most of the countries in latinista america, and in the West generally, due to simple birthing over time, go socialist? Dont say it cannot happen. This is not the last war, it is the future war, with chowderheaded young people dumb as scheat or actually dumber......
In such a scenario, the value of the miners will go down drastically, as the market will see them for what they are: EXPOSED TO THE SOCIALISTS, LITTLE LATINISTA WHORES....and the market wont buy them.
But the metal, the virgin, will become itself ultra valuable. It may be time to consider eschewing the miners and doing the metal, or at least splitting the investment.
