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Gold Coins: Money For The New Financial Aristocracy

Investors in gold coins ought to hold a pity party for the world’s richest people. Last week they
lost a combined $24.4 billion says dollarcollapse.com.

John Carey, with $220 billion Pioneer Investments, observes, “We seem to be bogged down in a
very sluggish pattern … [The jobs report] reaffirms this fear that the economy is slowing.”

That’s right, slowing. Things are getting worse, not better.

Gold and silver appear to have taken the warning seriously. Yet early in today’s afternoon
session gold nosedived once again, presumably due to another selloff brought on by misfortunes
in the world of big money. Chances are, however, gold will continue resisting the downward
pressure and rebound just as quickly. But this week still holds a couple of big question marks.

Tomorrow Spain will have what many see as its last-gasp debt auction. Hopes aren’t running
high for that, especially with the European Central Bank’s announcement that it will yet again
hold interest rates to 1%. And then there is the pesky new jobless claims report coming up.

Carey sees nothing but further hemorrhaging of fiat money-based wealth. As losses mount the
structure of wealth distribution will continue to shift towards those who have taken shelter in
gold coins. You may not be able to lose everything overnight when you have billions in the bank,
but losses of the magnitude that we saw last week put a huge dent in frivolous spending.

The luxury market will be the first to feel the pinch. Private jets will spend more time on the
tarmac than in the air. Expensive sports cars will be driven an extra year or two. Sooner or later,
however, the super rich will start unloading their expensive toys.

“In a few years, the marinas will be full of abandoned yachts and Lamborghini dealerships will
be loaded with pre-owned bargains,” Carey says. They will sit there “just waiting for gold bugs
(the new financial aristocracy) to use their gold coins … for a little conspicuous consumption.”

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