where would gold be if you and the rest of the gold community abandoned shares long ago and bought physical metal? That is exactly what is happening now and what is the result? It isn’t a shortage of the metal in the true sense, it is a shortage at these prices. I see premiums of up to fifty dollars for an average Krugg. Silver can be bought at thirty percent premiums.

I still favor gold over everything but its outcome is very uncertain here. Most companies have plunged to critical levels. Most indexes have plunged to critical levels. There will either be a worldwide panic by investors or there will be a coordinated movement orchestrated through the IMF to inflate at all costs. As of today money is destroyed faster than it is created.

The final point I will make is that sub-prime was the first domino that fell but the primary danger is and always has been the CDS market. No one has anywhere near enough capital to pay insurance on this type of wealth destruction other than a printing press. That is what the government wants the check for at this time. Picture the CDS market this way, if a hurricane or a tsunami hit NYC and wiped it out, what would that cost? The CDS market is 57 trillion, sound about right?