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Could you smelt me some change please.

|Includes: GLD, GOLD, SCS, SPDR S&P 500 Trust ETF (SPY), X

In the words of Alan Portnoi, “What the heck were they thinking?” A lot of people are bullish on gold nowadays but even the biggest permabulls would have to admit that introducing gold ATMs is a step too far. Obviously I’m not the targeted demographic for this new endeavor but is there really a demand for gold dispensing machines? It’s pretty clear that the gold proponents are trying to present gold as an alternative currency. As a result it poses a couple of difficult questions like,  ”Is there really such a huge demand for gold?” How quantifiable is gold as a currency?  If I go to Chipotle for a burrito, having only a gold bar on my person; how do I receive my change? I presume smelting is out of the question.

The principals at TFG would tell you that this just confirms that gold is a supper bubble. I think I agree with that thesis. The reason being that it reminds me so much about the real estate craze a few years ago. You couldn’t count on your ten fingers and toes the amount real estate shows there were on TV back then. Somebody somewhere was flipping a house. Heck, I’m sure my dog would have flipped a house if he had thumbs. Everybody was crazy about houses, now everybody is crazy about gold. My economic knowledge might be as shallow as they come but even I’m able to see a bit of pattern here.

On another note, the firm wasn’t able to make money today. The financials refused to perform again and VXX aka “the fear index” took a huge dump in our book; though there were winners like Goldman, US Steel and Nordstrom. The job reports didn’t help much either. Job losses in the government sector last month increased; while the private sector didn’t create the expected number of jobs. The country’s economic future just continues to grow bleaker by the day. Where is the light at the end of the tunnel? I might have to formulate a contingency plan in the near future.

Canada is looking really good right now



Disclosure: Short GLD