|
March 18/08 -- Wall Street
generally hates Gold, why?... because Gold is seen as
competition to the paper investments Wall Street constantly
churns out to the general public.
Wall Street also hates Gold because they cant print Gold...
unlike the shares in typical public companies that Wall Street prints
for a fraction of a penny, producing Gold
bullion is extremely difficult and very expensive,
something Wall Street doesn't have the patience or risk
tolerance for... Wall Street is all about making a fast buck,
even faster.
Wall Street also hates a rising Gold price because;
a rising Gold price is associated with rising risks, thus making
it more difficult for Wall Street to sell retail buyers the
paper shares Wall Street churns out for a
living.
However, while Wall Street hates Gold, at this point, Gold is
Wall Street's only remaining ticket back to real prosperity in
the near term (think of Wall Street-&-Gold
as a marriage of convenience).
While the FED has put Wall Street on welfare; providing
temporary bail-out's to insolvent or nearly insolvent Wall
Street firms (which are little more than short-term revolving
lines of credit)... Gold and Silver (the stocks in particular)
offer Wall Street a quick trip off of
welfare and back into the penthouse (and in a
very short period of time).
You see, after the
hundreds of
mortgage company bankruptcies, the
dozens of
hedge fund bankruptcies, the subprime & credit disaster, the
Bear Stearns insolvency, and the still pending bankruptcy of
dozens more Wall Street backed firms; the appetite of retail
investors to risk their hard-earned capital in traditional Wall
Street stocks is slim to none... essentially the traditional
Wall Street business model is DEAD for the
next several years (witness Bear Stearns).
Gold and Silver stocks are the ONLY remaining
stock equity class
that offer both "value" and a "believable" investment story
that's currently an easy sell to the retail buyer (especially during
these uncertain financial times) ... the precious metals sector
is the ONLY SECTOR that currently offers Wall Street a solid
platform & opportunity upon which it can rebuild its fortunes
(and credibility to a smaller degree) in a very short period of
time.
The big Wall Street players (the ones who aren't insolvent
yet) can currently take big positions at very good prices in
numerous Gold & Silver stock equities (the majority of Gold
stocks have vastly under-performed Gold Bullion,
and are historically cheap) and if the big
players on Wall Street put their considerable marketing and
financial skills behind the precious metals sector stocks, they
could take the sector to heights previously unimagined... the
conditions could hardly be better for Wall Street to enter the
precious metals sector and profit from it tremendously, and in a
very short period of time.
Wall Street could engineer a rally in the precious metals
stocks, especially the junior and mid-tier stocks by multiple
factors in a matter of mere months, these stocks are currently
priced that cheaply... and the current conditions are near
perfect for a record breaking precious metals rally... you could
hardly create better conditions for a precious metals rally,
even if you tried to script it yourself.
IMO, it's only a matter of time until Wall Street realizes
just how much money they are letting slip through their fingers
by not working their magic on the precious metals stocks... Wall
Street is currently staring a once in a multi-generational
opportunity to create massive profits from a single sector in a
very short period of time straight in the face... once Wall
Street figures out how much easy money there is on the
table, look out above.
P.S.:
If Bear Stearns would have diversified 15% of it's cash into a
long position several years ago into Gold Bullion, it's possible
the firm would still be solvent today. |
