kidmercury

Gold took two mighty tumbles in a row. I'm entirely out of my gold positions now, save for some coin I have. Overall, I got the move from around 860 to 1100. I made some mistakes, but overall I'm pleased with how I traded it, and I feel as though I timed it well (October 2008 until now...but I will re-enter as I don't think this trend is over yet).

For now, though, the bears are in control of the gold market. Here's my quick take:

1. Lots of manipulation going on. Basically what that boils down to is people are selling gold without actually owning it, just promising to deliver it (and then trading promises to deliver it). When that scam is up the price of real gold will soar. From this perspective it's critical to own real gold rather than futures contracts (that's why I recommend Bullion Vault).

2. $980 is the next key price point, I may look to re-enter then if the market falls to that level.

Now that's how I'm playing it. However, as the title of this post suggests, I wanted to get into the cosmology of gold, and why gold investors are often kooks like me.

The Cosmology of Gold

Many systems of divination foresee an "end time" or "apocalypse." Such terms are often associated with Christian fundamentalists believing the end is near and Jesus will save them, as well as Mayan calendar and 2012 believers. What such systems are really saying, though, is that there will be an end to the current way of doing things, and the beginning of something new (i.e. a new world order). And thus, "apocalypse" actually means "revelation" -- peeling away the falseness, so that the truth can be revealed.

As we have discussed, gold is "real money." And hence, as we approach 2012, we witness the destruction of false money, and the rise of real money.

To an extent I believe in the cosmology of gold, though I am out of my long gold positions. I do plan on re-entering at either around 1074 or 980, depending on how price is reacting at those levels. I also think it is increasingly likely that we will have a sharp increase, like an overnight one, and that this will coincide with the real economy rapidly decelerating (signified by things like more power outages, less items in stores, more unemployment, etc). This is basically what I think will happen when a run on the US Treasury bond market occurs. When that will happen is anyone's guess. If a run on the Treasury bond market will unfold the way I am suggesting is also debatable. But I think it is very consistent with 2012 symbolism and the idea that false value will increasingly be destroyed before reaching a pinnacle on December 21, 2012 -- the end of the Mayan calendar, and the beginning of a new world order.

To tie in the conspiracy side of things, some conspiracists argue the group of criminals looking to create a one world government (the New World Order) are using the Mayan calendar date as their end goal.

Who knows for sure. Overall, though, I tend to believe there is some truth in the ancient symbolism.