I have friends who are convinced that a cartel is manipulating the gold and silver markets. I have other friends who disagree, but today I'll hang with the former. And they plead a good case, with there being 100 times more paper gold than physical and a small group in full control of daily price setting… among other things.
Accordingly, many holders of gold and silver go on about breaking this cartel, even though nothing ever really changes.
Today, however, I'm going to tell everyone exactly how to break the cartel. I'm not sure how many people will take it to heart – there are easier "solutions" being thrown at them all the time – but I'm going to explain it all the same. Each holder of metals can do with it as he or she wishes.
The Simple Plan
If you want to crush the cartel, there's one simple thing that must be done. Here it is:
Gold and silver must be used in daily commerce.
That's it. If that happens, the cartel is doomed. If that doesn't happen, the cartel stands strong.
Let me expand on that for emphasis:
Complaining will accomplish nothing.
Legal maneuvers will accomplish nothing.
Using metals in daily commerce will eliminate the cartel.
Why is this so? Because it creates an alternative pricing system, circumventing paper gold and the London price fixing systems altogether.
If we start using our metals, a commercial infrastructure will have to follow. Local exchangers, large exchangers, assayers, and other businesses will be required to service millions of ounces being exchanged on a daily basis.
All of these non-cartel businesses will soon enough find ways to cooperate and share information (it's easy these days) and will develop their own pricing mechanisms. In other words, we'll get pricing based upon real use by real people. That will liberate us from prices devised by the controllers of paper gold and a small, questionable group 3,000 miles away.
Once we have a complete commercial system for precious metals commerce, the cartel will be exposed as a paper charade. Arbitragers will bleed them dry.
So, there's your solution. The reality of it will be a bit more complex of course, and the cartel will likely fight to stop it from succeeding. But this would be entirely legal as best I know (you can check with your own lawyer) and most certainly constitutional in the US.
Shutting down peaceful metals traders with lawmen and general thuggishness would come with risks. And the cartel will likely fail.
Why This Hasn't Happened
I'll be blunt: Most gold and silver advocates (aka, stackers) are waiting for an apocalypse of one sort or another. Then they'll use their metals, and not before.
Waiting for an apocalypse, while it can be wonderfully dramatic, is a horrible strategy in the here and now. You wait and wait and wait and eventually die waiting for the apocalypse to come. Like this:
This time for sure!
Damn, okay, then this time for sure!
Repeated at great length, assuring yourself that you're keeping the true faith.
Moreover, the myth of democracy plays into this. This myth teaches us that the price of progress is merely to complain well enough. And that, sad to say, is both widely assumed and thoroughly false. The price of progress is action.
This is why Bitcoin and the younger cryptos have been eating the stackers' lunches. Bitcoin is actually used in daily commerce, with more uses coming all over the world. And because it is actually used, reality-based commercial structures have sprung up around it, making it awfully hard for wannabe cartels to wrap their fingers around crypto.
I like the stackers. They are usually decent, honest people and good neighbors. And they are ever so right that metals are honest money and durable stores of wealth. I like gold and silver and I like the stackers. I want them to win.
But the stackers are facing a choice they may not like: Either use your metals or wait for an apocalypse that probably won't come.
Change will most certainly come, but with scarcity dying all around us – with technology continuously expanding our capabilities – traditional doomsday scenarios are highly unlikely, save for short times in ghetto-types of areas.
And the stackers can win… if they use their metals. That will create the independent commercial infrastructure they need, and nothing else will.
* * * * *
The novel that helped put the crypto revolution into high gear.
Comments from readers:
"Of the twenty five or so people I worked with last fall, all of them revered A Lodging of Wayfaring Men as a bible. They referred to the house and their community effort as a Lodge. We all felt it was modeled on the Free Souls."
"Actually, I am somewhat at a loss as to how I might explain how I feel about this book other than to say what a great mind to write such an awesome story!"
"I'm an Old guy and find that Rosenberg has captured many Real-World truths in this novel. I wish the Millennial Generation would read this novel and consider the concepts and rationale presented here."
* * * * *