Friday, November 2, 2012

Gold Swat Down

Ah Yes, a near perfect blimp formation.

In reality I should have taken some futures short as a trade, could have increased my gold profits that way.   Although it is harsh to bet against a long position.   Shoulda, Coulda, Woulda.

There have been huge divergences between USD, Gold, and SPX after the hurricane and in front of the election.  

Silver followed the same swat down pattern, even more percentage as expected, silver is more emotional, more "retail".

Also some advice from a newsletter on holding HK dollars instead of USD, and they even recommend holding that money in a Hong Kong Bank as a diversification in country of holding.    Bottom line, HK is pegged to the USD so when Bennie prints, HK must also print.    This is causing huge inflation in HK and asset bubbles in property, that HK doesn't like.  

And HK financial powers that be are strongly protesting that they will never "revalue" the HK dollar.   That means they will revalue.    The strongest protests come right in front of the move.     So your holdings in HK dollars could jump up 25% in equivalent USD.


Just remember there are tax forms that must be filed and filled out.    Big Brother wants to know where all of "it's" money is going.    Got it?   You didn't build that, its not your money, someone else made that money happen for you and you better be grateful about it too.      
On a serious note, foreign holdings need to be reported in 2 ways.    The reporting requirement depends upon the value of the financial asset.   Reporting real estate property is not necessary, but bank accounts and stocks and such, at certain value levels is required.   And you don't want to get this wrong, so have a qualified tax/investment advisor review things.

One is with your tax return, and that is the 8938

The other is an independent filing, specifically NOT to accompany your tax return---its the

TD F 90-22.1 "Report of Foreign Bank and Financial Accounts"

Part of the game is making is look risky and complex to hold assets in foreign countries, the more muppets that they can "scare into submission" the better off the country will be.     So they make things sound complex and vague.    

If you are the standard muppet, you will be scared off -- and you will not diversify the country of your holdings.    They want you to keep all your eggs in one basket.

In reality, there are lots of day to day bureaucracy and bullshit that we all have to deal with, so to play the game at a higher level takes a bit of commitment of extra effort to see through the bullshit and understand the requirements.     It is unfortunate that we have to spend our limited free time engaged in such activities, however, that is the way it is.

More later, have to go produce. 

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