One thing that's gone missing in the whole derivatives mess is the possibility that you can set up a massive hedge with a long bias on a gold price rise and a deflationary collapse in everything else.

Treasuries are at their peak, if you look at rates from Japan, Germany, UK, US, just about anywhere you won't be able to squeeze much more out of the bond markets.

"John Williams: Your primary hedge is physical gold; precious metals, including silver; and some assets outside the Dollar. I still like the Swiss Franc – its ties to the Euro will not last. I like the Australian Dollar and the Canadian Dollar. Having funds actually outside the US is a plus. To get through the crisis, you need a hard asset that is liquid for the near term.

Over the longer haul, gold stocks are wonderful hedges, but if the system gets into real trouble, which I think it will, you may have liquidity issues in the market. I am talking about limitations on the physical ability to transact in the market. You may also have liquidity problems with real estate, although over time, real estate is a tremendous hedge against inflation. "

http://goldnews.bullionvault.com/shadow-stats-052120123

-Another justification for paying dividends, should you not be able to transact in terms of trading your shares.

-F6