Gold in a Tribal World

This is an important anniversary date for gold. In 1975 the U.S. opened its Gold Window, and since then it has been legal to buy and sell gold.

Today is also unique because the price of the yellow metal has moved in the opposite direction to equity markets and the price of oil. Gold is up and the other two are down.

I expect that this dichotomy will persist if and when the Geithner/Bernanke/Obama market manipulation scheme begins to fall apart. Money is shuffling around the world in an ever more frenzied effort to stave off the much deserved collapse of the bankrupt U.S. dollar.

Gold up and equity markets/oil down – a bearish leading indicator.

When Americans abandoned protest-ant justice (rule of law) in favour of tribal judgement, Wall Street was one of the earliest casualties. Some of us foolishly tried to defend ourselves by buying gold stocks. We didn’t stop to think that legal crime on Wall Street would spread to wipe us out in spite of a stupendous gold price move from $35 to $1642. We trusted our gold mining industry executives. Wrong! We provided their finances. They’re keeping the gold.

Only thieves prosper in a tribal world. Hang on tight if you have gold fillings.