Defaulting banks - where will it stop?

[Jan Klimkowski]

...
* Precious metals will not be a safe haven. ...

Got that Damien?

Myra - yes, but....

Karl "Genesis" Denninger, who made that original comment, has a very different geopolitical viewpoint from me, and I suspect from you.

Denninger's full prediction was:

* Precious metals will not be a safe haven. The callers for $1600 and above on gold will be wrong, unless there is a major military conflict. I do not rate that probability as particularly high, but it is an event (along with a major terrorism incident - nuclear or biochemical - that would cause a rocket shot in Gold prices), so I am hedging that call. The risk of this sort of "response" to the economic crisis is, however, real, and will rise significantly going into 2010 and beyond. We'll revisit this one (a major war) next year.

I think a major war in 2009 is more likely that Denniger does.

However, as I posted earlier in the thread, I have more fundamental objections to gold as a safe haven. Namely because:

i) you can't eat it;

ii) you can't shoot with it (unless you have a foundry to melt it down into golden bullets);

iii) when TSHTF, They are likely to confiscate gold held in private hands, as They did in the 1930s.