muses of the moment

March 1, 2010

groovygirl is getting nervous

Totallygroovygirl has been noticing “gold” and “goldman sachs” linked together lately. This makes groovygirl a little nervous.

We all know what Goldman does when it has control over a particular market, don’t we? Yes, groovygirl, they create derivatives of the investment, sell them to their clients, hide the decline in the market, and then bet against their clients when the market is in the frenzy phase. Here is an article explaining how they took down Greece, the same model as all the others. (The truly unbelievable thing is just like in the US, Greece has appointed an ex-Goldman as the Czar of Debt. Hollywood couldn’t make this story up.)

First, of Goldman Sachs’ long-term holdings, GLD, the gold exchanged-traded fund, is currently the highest percentage. I have mentioned this before.

Now they have purchased a gold warehousing firm in London. Click here.

Does this mean that Goldman Sachs has come to its senses and sees the long-term benefits of this gold cycle as a solid investment?

Or does this mean Goldman is buying anything having to do with the gold business in order to exploit the price as this cycle heats up ?

I don’t know. But groovygirl suggests holding only physical gold and silver in several different storage vaults (not owned by Goldman Sachs) just in case. I doubt any foreign investor will have gold bars sitting in Goldman’s London vault. Way too close to the Uncle Sam.

With Goldman in the gold business, the gold price should be very interesting to watch in the next few years.

The market price and the physical price of precious metals will break at some point in the future. It would be wise to have the physical metal in hand at that time.

Side musing: don’t miss Doonesbury from Sunday. Click here.

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