I would for sure lose all credibility, especially among my new ZH, (that would be ZeroHedge.com a most excellent website for financial topics, especially for those suspicious of the banksters and Wall $t. fraud, highly recommended) readers if I go for long without writing a gold article.
As I write, I have my laptop on my lap at the airport, so my writing may not be at its best. Nor have I put much thought into this, but I felt the need to get something out about gold. So I am just going to wing this one.
Many people claim expertise on gold. I make no such claim, although I have looked into the subject since the 1980s, mainly by buying it! Almost every day I read something about gold. There are many "camps" (FOFOA's term) in the Precious Metals Community. I am in FOFOA's camp, pretty much, read on.
FOFOA (fofoa.blogspot.com) writes about FreeGold, a concept first taken up in the late 1990s by a European ("Another") purportedly highly placed among those designing the Euro currency. He contributed his THOUGHTS! at some gold site back then. After a couple of years, he stopped writing. A bit later a Friend of Another" (FOA) who continued exploring the FreeGold idea. FOA was perhaps an American. But, he too stopped writing after a couple of years or so.
And then came along FOFOA who started writing his blog in +/- 2008 (sorry I do not remember what year FOFOA!). FOFOA continues writing to this day, mostly about FreeGold.
Disclosure: I am a contributor to his blog, so I am biased.
FreeGold is a concept that is either intuitively clear or not. It has taken me a long time just to get to my limited understanding. But, there is an essential believability that I find in FOFOA's dramatic prediction of gold priced from $25,000 - $60,000 (non-hyperinflated 2009 dollars)! When I first ran into FOFOA and started reading, I thought "Wow this guy is a real radical". I have a soft spot in my heart for non-violent radicals (well, of a certain kind), so I continued to read his stuff. I started in mid-late 2009.
FOFOA describes his concept in great detail at his blog, but it is hard for many (like me) to really "get" the concept although feel that I basically do.
FreeGold will happen when the physical price of gold diverges from the "paper price" (gold futures prices, etc.). There are apparently 100 times as much "paper gold" (claims on actual physical ounces) as there are actual physical ounces (that perhaps is within the USA only). At some point there will likely be a failure to deliver real physical gold to holders of paper gold wanting the real thing. Gold is "leased out" by the Bullion Banks (sort of market makers in gold and gold derivatives, you will have to dig into FOFOA's rich detailed writings for more details).
Probably all of a sudden there will a demand for the real gold. And there will be many who will not be able to deliver. Then gold will NOT be available at the COMEX price (paper price). It might not even be available AT ALL for a short time, at ANY price, as any real gold left disappears...
FOFOA explained in one of his articles ("The Shoeshine Boy") that Robert Prechter (often a gold bear I understand)b will have his 15 minutes of fame, as gold falls to $400 / oz. OK, they say $400, so you go to your favorite coin shop or to APMEX, and guess what? No gold for sale. You would be prepared to pay a premium of, say, $200 / oz? Sorry, no gold. $1000 / oz. No gold.
After this all shakes out, the market for physical gold will lead to a likely quick quantum-like jump in the price of gold to prices like $50,000 / oz. He also makes a great case for saying you do not even have to UNDERSTAND FreeGold, just buy some, and you will be very happy with your purchases.
FOFOA makes a great case. You should read his blog. The best one IMO regarding the Ancient Metal of Kings: Gold!
He does not (much anyway) like other PMs like silver. GOLD is where wealth is HELD, sitting still for generations. Silver gets spent.
The only real point of difference I have is that I do not know the future, and what is predictable or no. I hold other PMs myself: platinum, silver and palladium. But, the bulk ($ value) is in gold.
Please discuss! I am here to serve and learn from you.
FOFOA has helped me in starting and improving my blog! Thank him by visiting his blog, and consider contributing, his blog takes NO advertising even though he has a large following.
Thanks again, family, friends and "virtual friends" for stopping by my blog.