(by Vic Patane):
Let’s all assume this is a fictitious story.
You are are a bright, successful fellow, in fact your brokerage account has treated you like a king, it’s now well into seven figures and growing. For some reason however you managed to click one of those SRSrocco videos featuring Tom Cloud on the very same day CNBC is telling you that many many very large web sites are down this morning. Sites like the Wall Street Journal, Twitter and Spotify.
You phone your financial guy and ask that uncomfortable question, “Hey, what if it’s the financial sites that get taken down next?” Won’t happen you are told, “uhhh, but what if it does?”. Your stomach drops and you instruct your broker to wire $100,000 to your money center bank. You need cash before the weekend arrives, just to be safe. You rush to speak to your banker and get some cash, it’s nearly lunch time. But here’s the rub, your private banker, after several private calls seems to hesitate before entering the conference room where you are impatiently waiting, no doubt with some bad news. “I’m very sorry sir but we can only get you $2,000 of cash before the weekend, will that do?”
Then that video replays in your mind. You phone Tom and ask what the procedure is to purchase some gold that you wish to hold in your own possession. Gold is not your thing, you don’t use terms like “fiat”, “QE to infinity”, “central banksters” or “sound monetary policy”. You do however understand the value of taking physical possession of an asset in a very quite and discreet way. Your wire is confirmed before closing time Friday and you are called with a tracking number the following Monday. The $100,000 never had to go to your money center bank.
The gold coins arrive in less than a week and are discretely hidden in a pair of old hiking boots, try doing that with $100,000 of cash, if you can get it. Add a zero and maybe you decide to store a portion of your gold off site (at a cost of 20 basis points per year) and as for $1,000,000 of cash at home well as Steve Carell says in The Big Short, “Good Luck with That!”
(photo courtesy of The Big Short)
Gold and Silver may very well end up finding homes with those fearful of days like this past Friday for many reasons other than the truths the precious metal’s community discusses.
Check back for new articles and updates at the SRSrocco Report. You can also follow us at Twitter, Facebook and Youtube below: