“€œThey have deliberately created this situation and they are committed to low prices,”€ said Sechin. Their motivation? That’s another story, one in need of a geopolitical expertise.

Additional good news (for investors and speculators) comes in the rise of gold, as widely predicted. A textbook, fear-induced flight to safety; one that’s easier to buy into than ever, via instruments like the Gold Trust SPDR (GLD), which gained 5% just this week. Gold has surpassed its 12-month high with a rise of 18% this year alone, its price exceeding $1,260 per ounce”€”a $175 gain in 45 days”€”along with evidence of the trend continuing upward and”€”who knows?”€”into a gold rally? For those who recall the days of $1,800 per ounce?

By comparison, the Dow Jones Industrial Average is down 8.3% for the year. And the only proof you need to buy (more) gold is such evidence of contagion and fear as a series of bad headlines overshadowing financial news. Bad news + fear = buy gold. Period. Although the investment doesn”€™t end there. If you buy physical gold, as recommended, taking delivery is one of many pleasures to be relished in a gold trade.

As CBS MoneyWatch‘s Anthony Mirhaydari puts it: “€œIt’s hard to ignore the allure of an investment that isn”€™t a liability for someone else (such as cash, a bank deposit or bond note) and that has maintained its purchasing power throughout history.”€ The CBS reporter mentions two selling points. Gold’s history is formidable, for one. Gold’s independence in regard to today’s shaky financial system, for two”€”this is its unique charm and its security. The unbacked, nonreciprocal nature of real gold”€”its nonliability status (see the CBS quote)”€”this is what gives the asset class its endurance and its irresistible appeal in times of uncertainty.

The leverage-addicted world economy”€”so interconnected and so contagious”€”offers infinite drama and complexity. You can play the markets by playing gold, too. And when it moves, gold is just that much more predictable and slower-moving than most other asset classes. Another benefit, allowing the luxury of deliberation upon your investment without worrying about missing the optimal entry point.

Holding and buying gold reflects a refreshingly asymmetric view of the economy. Certainly, it’s a long-, not short-, term investment position (years not months). For the real “€œgoldbugs”€ (investors and enthusiasts), gold is a way not only to diversify but also to simplify. It’s a way of life, almost. A club, even. It’s also a finer distillation”€”a truer mirror image”€”of the yo-yoing global economy? A measure that makes weighing and handling your assets so much more manageable”€”on the human level.

And guess what? You”€™re safe from both NIRP and the end of cash”€”and much else besides”€”the more gold you hold.


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