Monday, February 8, 2010

Survival Food

Electrum coin from Lydia (VI century)Image via Wikipedia
At least survival food for your finances.

  We continue to play a long running game of "Who is On FIRST", and since the GUESS WHO played at the Super Bowl last night, I guess it was them.  For us, struggling for investment survival and prosperity it is more about whom will be left solvent and intact, even if we are the walking wounded.

    I suspect I am probably preaching to the choir here but in the larger picture we need remember that all financial instruments are derivatives of the basic wealth they represent.   They tend to be more liquid than the underlying investment.  However thanks to the Royal Canadian Mint and their agents, Royal and Scotia Banks, there is a relatively liquid market in real money, valued in fiat currency.  The upside to this, is that when low prices shrink the number of willing sellers, you can still buy thru these two banks.   Real bottom line here:
NO ONE with access to either of these banks need suffer total currency rot as we see going on today.
True, Canadians are tied to the US Dollar, but just as true, they need not suffer for it, if they choose to hold some "REAL MONEY" as "depreciation insurance" against the games that governments play with their creature, FIAT MONEY.

    Since neither Gold, Silver or Platinum for that matter can be conjured up in any quantity by computer digital entries, it is unlikely that they will suffer an oversupply.  In fact,  except for a brief period during the discovery of the New World where indigenous gold was expropriated, there has never been an oversupply of monetary metals.   True the nominal price of both the stock market and gold or silver pieces will vary.  What will not vary is the ability of the Monetary Metals, silver and gold, to circulate as and serve ALL functions of money, classically defined.  The amount of labor and invested capital to liberate, concentrate and produce a coin may vary be small degrees, but they cannot be created by the trillions at a keystroke.

    It is about what is in  your wallet and what is in your pantry, including your financial pantry.
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