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Thursday 30 March 2023

Against My Better Judgement, But...

The biggest problem with talking about things too specifically when it comes to money and finance and 'investment' matters, is that many even most, people lose control of their emotions - and then they start to build desires for things that are quite pointless to chase in most ordinary circumstances.

Either - as they say in the stockbroker classics - 'the train has already left the station,' or 'you are trying to catch sharp knives with bare hands,' or, in practical ways it is difficult to maintain profitability across distant borders.

Vaguely pointless, though
nonetheless colorful pic
of something extremely expensive
that you don't have to lose sleep
over funding any time
real soon.
Right? Right??

So what I want you to know is that what really makes us money - or will do in very effective ways over the much longer term - is nothing that you are about to see in a visual form right now. But I will post some pics of something, something quite silly and low-level it might seem...

The problem that will loom in that longer run over the significant matters for all of you who became financially involved, is that that body of knowledge itself will eventually find some entry into the wider social consciousness and public mind, with the usual result in these cases of people taking 'control' over it as another form of Esoterica with all of the hierarchy and gate-keeping and all of that.

It's easy to get away with contacting actual real ET Aliens - if you did that very privately and that was the end of the matter. Things take a different turn though, when you have some material substance of a financial kind to pass on to succeeding generations - that is entailed in the whole thing.

Where you will really see this start to take shape is in something that is nearing completion and will be talked about soon here.

But for now, and very much against my own better judgement, it is well passed the time that I gave some slight indication that there is a little pile of funny Australian two dollar coins here...

These have been finding absolutely ludicrous prices in the open market recently and look very much like they will maintain that trajectory for a long time to come.

Ostensibly they were and are still, minted as circulation money, except some of them were minted in pretty low numbers relative to the others in various years - and these low mintage coins are skyrocketing in value.

Also colorful. 
Please don't lust after these silly things.


It is simply a fact that, for instance, the 2012 Red Poppy 2 dollar coin was available over the counter at some banks and most Australia Post Offices - for 2 dollars in 2012/2013.

Well they range in prices paid right now from $150 for even the lowest graded or ungraded circulated examples - to upwards of $500 for good examples.

And that's a big jump in value by percentages.

500 of them at the start, for $1000, had you been bright enough to pick up on the potential - would have made you a quarter of a million dollars.

The reality is that there is nothing stopping the Australian Treasury from doing this kind of thing again in the future with another one of these particular coin denominations ($2) - and they will use the 'template success' denomination because it is obvious and logical. They will do it.

We are still a long way off over here (means us here, not Australian Federal Treasury! lol) from having the optimum team of administrators who can organize a basic self-audit report each E-O-Y in a timely way. But that will happen for no other reason than that is the current trajectory of the value increases in our holdings linked to these 'Silver Digital Dirhams' and it will allow it to happen and be very easily funded.

Do we hold actual physical silver? Oh yes we do - as well.


So, what you have here is a practical instance of Douglas Casey's esteemed 'rotational trading across unconnected but related commodities:' Gold, Silver and say Platinum (except it isn't Platinum that we are using as the third price wave signal); plus some peculiar side bets to do with these Australian 'collectible' coins; plus a percentage of the revenues from the digital text sales (Amazon/Kindle); plus something else that it is premature to talk about yet although everyone in the world of investing knows what time it is...

But...

I don't want to talk about money!

Nothing here is really liquid right now anyway... lol (It is but stop thinking of it that way! Yet. There will come a moment and quite soon for that kind of thinking and drooling).

'Rotational Trading?' 

That just means you sell the particular precious metal that is high on its curve compared to when you bought it, and spend that dollar return buying whichever one or ones are 'low' on their putative forward curves. Over a lot of time, or over a lot of volatility (and it is better that that happens because you make money quicker), your physical holdings don't diminish in value or volume but you still earn a trading overrun in dollar terms (which is your profit and you can even look at it as the 'carry interest' on your holdings of precious metals).

While you might think that say gold and silver always move in strict tandem, they actually don't. There is regularly a strong lag in ratio terms. Which is why the rotational trading technique works. But, underpinned by a separate revenue stream, the whole thing then really does make a lot sense and does work over time.


As far as numismatic coins go, it is impractical in usual circumstances to try and buy coins from faraway places and then seek to trade them back in those places where the viable demand exists - the transport costs and risks are just too great.

These things are simply trinkets, they are not ways to guarantee anyone early retirement.

But yeah we'll mess with trinkets too when it makes sense.

There's probably similar kinds of opportunities around you right where you are physically located.

The peculiarity of the Australian market conditions over recent years is that there has been this massive involvement with the China market and the demand pool from over there. Those people come here because they buy commodities from here, and they spend money here directly buying local stuff that is not commodity stuff - coins, wine, shoes, wool, food. Stuff.

And so the price leaps have been exaggerated.

But it is not an inflationary pricing force.

Here - turn your head to more important matters:



 


 




 

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