Adrian Douglas of MarketForceAnalysis.com took a look at a summary of the
goings-on at the Comex, the division of the New York Mercantile Exchange where
folk trade gold, silver and copper, and commented that "the data reveals a very
shocking trend. That is that the registered [dealer] inventory is being drawn
down at a phenomenal rate. In silver the inventory has dropped by 24% in 6
months while in gold it has dropped an eye-popping 41% in 6 months!"
Already my eyes are glazing over at the sudden overload of information, most of
which I know nothing about, but know that I should, and feel uneasy that I
don't, and guilty that I don't even want to because it involves work and
initiative, or, in this case, listening to the equivalent of, "blah blah blah
silver and gold are going to go to the moon not only because the Fabulous
Mogambo has thus foretold it, and the Austrian school of economics has
explained it, but that blah blah blah at the Comex warehouses" and then I end
up getting most of it wrong anyway and I look like an idiot.
So, already reeling in confusion, I was thus rendered almost comatose when he
relentlessly went on, "The withdrawal-to-deposit ratio for registered silver is
14:1 and in gold it is 5:1" and which, again, is meaningless to me because I
am, as I already admitted, ignorant and lazy, which is a crushing handicap, now
that we are talking about it, that should enable you to qualify for a
Handicapped Parking sticker for your damned car so that you can get some of
those terrific Handicapped-Only parking spots, right up front, wherever you go,
but the application for which can be rejected by a snotty clerk, out of hand,
on her personal say-so, although she volunteered that my "abrasive, demanding,
incoherent and repellent personality is a real handicap, too, but there is no
sticker for that, either."
As I fell asleep, eager to again escape reality and responsibility, I began
dreaming of some snappy comebacks I could have said to the Handicapped Sticker
lady, like, "Well, I assume that there is a Handicapped Sticker for anyone who
is mentally handicapped, and I can tell by looking at your stupid Department of
Motor Vehicles face that you are not buying gold, silver and oil to protect
yourself against the government's massive deficit-spending and the Federal
Reserve's creation of all the new money and credit that will be necessary to
soak it up, which is really stupid of you! Hahahaha!"
I really like it when the dream gets to the stage where some hot young honeys
make their appearance, stage left or stage right, it makes no difference to me,
but we never got there because apparently the sound of my snoring made Mr
Douglas aware that he is talking "over the head" of the biggest dullard in the
crowd, which violates the politically correct stance on "inclusion" and
"diversity" of persons such as me.
So, quickly remedying the situation, he explains that this means that "If this
rate of drawdown continues, the registered inventory of silver will be
exhausted in 18.8 months and in just 8.5 months for gold!"
And before there is any mistake made by the casual reader, that concluding
exclamation point in the previous sentence was his, not mine, although it was
totally unnecessary, as I was already freaked out at the implications!
Thus, I was ready to race home and frantically root around in my wife's purse
for some extra money, so that I could buy some more gold and silver, when I was
transfixed to the spot when he went on that he estimates "as much as 50,000
tonnes of gold has been sold that does not exist. That is equivalent to all the
gold reserves in the world that are yet to be mined, or put another way, 25
years of gold production."
I was ready to edit his remarks to put an exclamation point at the end, as it
certainly deserves one, but before I could do it, he followed up with, "That is
the grand-daddy of all short positions!", which had an exclamation point, and
so I let it go at that, and saved myself a lot of work that will - I guarantee!
- show up in the narrative section of my Productivity Report, which is coming
due pretty soon, and which is always pretty disagreeable.
But I will get through this new assault by "higher-ups in the executive food
chain" with Classic Mogambo Equanimity (CME), as I always do, and I would
probably have gone completely Mogambo Freaking Nuts (MFN) a hundred times
before this if I hadn't always remembered, sometimes at the last minute, that I
own gold, silver and oil, whereas these gold-less, silver-less and oil-less
bozos are questioning my ability ("I think you are too stupid!"), my competence
("You seem to have no idea what you are doing!") or my sanity ("I think you are
insane!"), while never even mentioning my numerous off-setting good qualities,
such as my twinkling blue eyes or the fact that none of my employees or former
customers have a Restraining Order on me that is still in force.
If you are even half as smart as I think you are, then you get the obvious
message, which is to buy gold, silver and oil.
Some of you, on the other hand, also got the more subtle message that a long
list of miscellaneous people are all going to be very, very upset and angry at
the horrifying inflation in prices that is inescapably coming, due to this
massive expansion of the money supply by the Federal Reserve to pay for the
unbelievable tons of money the US Congress is deficit-spending, and you had
better take your gold, silver and oil into a bunker of some sort and arm
yourself to the teeth because it is going to get Very, Very Ugly (VVU), and you
will want the options of buying your way out or shooting your way out.
On the other hand, if you do not buy gold, silver and oil, then, as they say,
"the angels will weep for you".
I, personally, will laugh at you. It will sound sort of like this: "Hahahaha!
Moron!"
Richard Daughty is general partner and COO for Smith Consultant Group,
serving the financial and medical communities, and the editor of The Mogambo
Guru economic newsletter - an avocational exercise to heap disrespect on those
who desperately deserve it.
(Republished with permission from
The Daily Reckoning. Copyright 2010, The Daily Reckoning.)
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Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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