Buy Gold & Silver or Buy Gun ?

Recently the University of Texas Investment Management Co. converted its gold futures holdings into physical bullion worth about $1 billion. The fund has 20.7 tons of gold stored in a New York vault. Bruce Zimmerman, chief investment officer of the $26 billion fund said, " It's a very conservative hedge against some low probability scenarios, such as the debasement of a major currency." He's not alone. In 2010, total physical investment in gold bullion soared 66% to 880 metric tons. That's also almost mostly stored in New York vaults.

Assuming that no one has tunneled into the the gold vault and it is still there next week and the worse happens. What's Bruce to do? Bruce is in Texas and the gold is in New York. Can Bruce handle 20.7 metric tons of gold? Does he have a truck? Who will help him pack the gold? What will the help charge? Where will they take the gold? Who will be in business to accept gold? What will they charge? Will vendors of food and services respect Bruce? Does Bruce own a gun?

Financial assets are a lot different than physical assets. One can have billions of financial assets in a drawer whereas thousands in gold or silver needs a lot more care in storage. Mega wealth in dominations of gold and silver needs massive security precautions. And in the end relies on the honor of all involved. That need for "honor" is a tall order. In the future guns are a better investment for personal security than attracting threats to ones personal security by lugging gold or silver around.

Deflation is in Our Future

Most people living today haven't experienced deflation. In fact most people have based their life on the opposite which is growth and inflation. Democratic governments derive their power from promising ever increasing growth, prosperity and entitlements-i.e. a political inflation. So what will be the end of western democracies? Deflation. Deflation on a scale not even seen in the Depression era, because we did not have the size of government then that we have now. Save your money and have some weapons for self defense handy.

Barack Obama Has A Loaded Gun

What's the difference between a loaded gun and a one- political- party control of government? Well the loaded gun can kill you. Whereas the single party control ruins you to the point of one wanting to kill themself or kill someone else. And so Obama has a political loaded gun in his hand.

Some of the bullets include wealth redistribution to the point of socialism . Or how about extreme trade protectionism to the point of trade breakdowns on a worldwide basis? What about an expansion of the Depatrment Of Education to finally preclude all new generations from a meaningful classical education? And certainly there are other nasty possibilities when the spending monkeys in congress have over $3 trillion in the budget to spend.

But maybe Obama will be prudent and govern from the center. America needs someone like that. The past 2 presidents included the educated moron Bill Clinton and the plain vanilla moron George W. Bush. We have to do better than that.