Gold & Silver: A Bet Against The Unnatural

I sat down over the last few days with one of the greatest works ever written, "The Law of Compensation", published by Ralph Waldo Emerson. It's relevance to today's financial times is shocking.

In reflecting on highlights from Emerson's masterpiece (shared further below), I got to thinking about precious metals, mining shares, and many other commodities, which at this time represent high-leverage bets against the "unnatural".

It's betting the Guinness World Record Book's heaviest man or woman will suffer from heart failure. It's betting a steroid-using athlete will face organ collapse, it's betting that silicone breast implants will ultimately look much worse than natural breasts...and it's further betting that government and financial institution "borrowings from the future to survive today" will also collapse. And it's further betting that bailout-supported industries (synthetic monopolies if you will) will also crumble. It's simple a matter of time.

Will it happen tomorrow? Probably not. Next year? Maybe not. But it will happen eventually.

Emerson states that, "Nature hates monopolies...[without] exceptions...The is inseparable from the [cause], but is often spread over a long time, and so does not become distinct until after many years. Crime and punishment grow out of one stem. Punishment is a fruit that unsuspected ripens within the flower of the pleasure which concealed it. Cause and effect, means and ends." full piece here