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In Katusa’s Resource Opportunities, we’ve highlighted three resistance points above $1,900 per ounce that gold needed to hold above, which it failed to do so.
I want you to think of the noble metals as the royalty of all metals. They don’t interact with the peasants—the other elements on the periodic table that are always “interacting” with others and debasing themselves.
Also remove the six metalloids, which are elements that don’t know if they are a metal or a non-metal since they have traits of both (e.g., antimony, arsenic, silicon).
But the result of copper interacting with oxygen is not corrosion, like rust. It’s the exact opposite. The process is called “passivation,” and the bluish-green color is actually a layer of protection that protects the copper from natural debasement.
Historically, copper, silver, and gold have been known as the coinage metals. And scientists deem these 3 as the “real” noble metals because of their electronic structure.
Politicians and central bankers don’t need any help doing that; they do a wonderful job of making debasement of currency happen on their own.
On the heels of enormous stimulus packages, the USD has faced high short sale pressure. The graph below shows the current USD positioning.
For example, iron has many useful applications, but it oxidizes, then rusts. Iron is active and would be fun to watch its decay on the reality TV show for entertainment value.
Gold has risen 47 percent, or $600 per ounce, in the span of less than two years. Taking some time to consolidate before moving higher is important.
If you want a metal for long term storage value, you don’t want it to change. You want it to hold its own, maintain its integrity, and not degrade.
We’ve all heard the macroeconomic arguments to own gold. Today I want to talk about the actual scientific chemical reasons that separates gold from all of the other metals on the periodic table.
In fact, all the metals on the periodic table of elements except copper and gold are a variation of grey. Silver is at least a sexy version of grey. The rest are just variations of a dull grey.
Everyone loves gold. Nobody dreams of winning a bronze medal at the Olympics. It’s the gold metal they want! There are thousands of analogies engrained in our subconscious passed down to us through our families and societies why gold is the king of metals.
Not only are they hard to smelt and difficult to work with, but they are also too scarce in nature to be able to meet the need as a store of value.
We are not even halfway through the share printing spree that resource companies (explorers and developers) went on. These companies are giving central bankers a run for their money (printing).
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But it’s bad if you want to use it as a currency. The coinage will rust away. And the last thing you want is a metal that debases itself.
Removing the tarnish is natural debasement: every time you polish the silver to get rid of the tarnish, you will be removing some silver, thus debasing it.
Gold’s beautiful color is not only unique on the periodic table, but it also will not change. Gold doesn’t mess with the peasant metals or with the other nobles. Gold does not react with any other element.
Of the ninety-five metals on the periodic table, eighty-five are “active.” This means they are fun to watch on our reality TV show because they are always hooking up with another element.
That is why copper is included in the noble metals. It does “interact,” but it doesn’t corrode. This interaction acts as a protective barrier for the copper, but changes its appearance—damn two-faced metal!
So that leaves us with what are known as the “noble” metals. Just like there are noble gases, (noble meaning “inert”), these metals are not active.
Subscribers and I were prepared, picking up world-class companies and stocks in price swings that a junior or small cap company normally sees.