Assets or Certificates

In Ann Barnhardt's post dated -- December 26,AD 2011 6:37 PM MST -- she makes it clear as to whether or not one should, in this current financial climate, hold the certificates of precious metals or the actual metal itself.

"Fiat currency, contracts, stocks, bonds, derivatives - all these things are wholly contingent on the collective character and integrity of the society that produces them. Why do I post incessantly about religion? Because morality and integrity are the foundation upon which the entire marketplace is built. Morality and integrity are the canvas upon which the tableau of the marketplace is painted. I'm hard-pressed to think of two concepts that are more closely, thoroughly and inextricably tied together. All of you militant atheists are about to learn that lesson - if you haven't already.

Just to reiterate, as I saw a witty person post on some long-lost thread somewhere, if you can't roll around naked on top of it, you don't really own it.

(Um, I'd like to exempt livestock from that rule and modify it to something like "streak in front of it" or perhaps merely "moon it". Heh.)

However you manifest your nekkid personhood to your property, be sure that you also have your assault rifle close by, too!!"

                             

Soooooo, if I am to understand Ms Barnhardt correctly, one DOES NOT really own an asset (be it gold, cows, food, water, fuel, etc.), if one can't roll around in it in ones "nekkid personhood" (as she puts it), if one can't "streak in front of it", if one can’t “moon it", or if one can't physically protect it with an assault rifle. If you cannot do those things, then my friends, you DO NOT own it. 

Don't look now but what she is trying to tell us is, if you have certificates in your hand instead of the bullion then all you have are certificates, and if all you have are certificates when the "crowd" decide to turn in the certificates and take possession of the physical asset -- it will be too late. Because, there are not enough assets in storage to satisfy all the certificates that are currently in play. NOT EVEN CLOSE!!! 

As a matter of fact, if as many as 4% of the certificate holders decide to take possession of the actual bullion the whole thing will collapse. Anyone who waits until they hear the "rumbling sound" of the beginning of the crumbling to decide to turn in their certificates for the gold/silver (whatever the asset) it will be too late. Suddenly the certificates will not be worth the paper they are printed on.