Brian McMorris
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Gold Nosedives Below $1,500 As ETF Holdings Free Fall, Fueling Panic Selling [View article]
RPM...to answer your point about timing: I am not sure when gold will catch up to the printing of fiat currency. My gold holdings are a hedge, not an investment. I want to make sure if fiat currencies collapse, including the dollar, that I have something left to take care of my family, and perhaps even buy up assets at a bargain. So, I hold gold both physical and derivative.
Gold Nosedives Below $1,500 As ETF Holdings Free Fall, Fueling Panic Selling [View article]
Gold Nosedives Below $1,500 As ETF Holdings Free Fall, Fueling Panic Selling [View article]
Gold Nosedives Below $1,500 As ETF Holdings Free Fall, Fueling Panic Selling [View article]
Gold Has Held Its Value Over The Last 2,500 Years: Fact Or Fiction? [View article]
Gold Has Held Its Value Over The Last 2,500 Years: Fact Or Fiction? [View article]
Prior to 1800, there was little technical innovation in production, so the change in a currency such as the British pound from the late 1200s when its value was first recorded, is more instructive. The British pound was worth about one ounce of gold in 1270. Today, it takes around 1000 pounds to buy one gold ounce. There is a true measure of the value of gold as it measures a 1000 fold decline in the value of a unit of currency such as the British pound
A Short History Of Commodity Bulls; Why This One May Be Different [View article]
In the 1800s, recessions were always deflationary because there was no ability to soften the blow by monetary expansion. It was harsh, but it worked. Price stability was the result. The only time price was destabilized was during a period, like the Civil War, when fiat currency WAS printed to pay for a war effort.
Business cycles are inevitable as a result of fear and greed. At times of greed, more capacity is created than demand can consume. Prices drop resulting in eventual deflation. At times of fear, production shrinks until demand exceeds supply and then prices recover. There is no need for stimulus. Human nature takes care of the economy on its own.
Pengrowth Energy And Penn West Petroleum: Not In-Sync With Oil & Gas Prices [View article]
Pengrowth Energy And Penn West Petroleum: Not In-Sync With Oil & Gas Prices [View article]
Pengrowth Energy And Penn West Petroleum: Not In-Sync With Oil & Gas Prices [View article]
Bottom line: to understand small cap stocks like PGH and PWE, one must live with them for an extended period (I have been in and out of both since 2002). Small factors like politics or management decisions are more important to this type of stock than are oil or gas prices. Now is a very good entry point in either. A better time to pan these stocks was in 2011 when PWE was at $28 and PGH was at $14. I was out of both at that time.
Penn West: A High Risk, High Reward Stock With A 9.4% Yield [View article]
Berry Petroleum Sale Metrics Suggest Penn West Is On Sale [View article]
A Short History Of Commodity Bulls; Why This One May Be Different [View article]
@NetBlueSky: not at all true. Your analysis is flawed, not Tal's. Because the "governor" was removed from the throttle of the economy, it may seem that economic cyclicality has been reduced. But in fact, the stored energy of recessions cut short by central bank intervention continues to grow in the form of debt (sovereign and private) and create an ever larger threat to global stability and economic security. It is like the pressure cooker that has its lid closed tight. Instead of the lid hopping and rattling around when the water boils, letting off some steam, the steam remains contained. The water doesn't boil because the pressure restrains it. This gives the appearance of stability and calm, but the temperature and pressure continue to increase. At some point, the ability of the pot fails to contain the built-up pressure and the pot explodes.
The normal and natural business cycle relieves itself of pressure with regularity. It does so in a way that is self-correcting without any human intervention / articifial restraint and stimulus. The inherent problem with FOREX, QE and other forms of manipulated money flows is that humans make mistakes, just as the ECB made a mistake on Friday in regards to Cyprus. Bernanke is also making a mistake by not taking off QE after the disaster has passed and now uses a nitro-charged policy to seek social objectives (low unemployment). Central bankers are always biased to excessive easing. It is rare for a central banker (Paul Volcker) to apply the brakes hard to reduce money supply and contain exuberance because it is economically painful and politically unpopular. But for monetary manipulation to work safely to smooth the business cycle, a central banker must be as willing to put on the brakes as step on the gas. It will all end very badly as human fiddling with natural processes always does.
A Short History Of Commodity Bulls; Why This One May Be Different [View article]
A Short History Of Commodity Bulls; Why This One May Be Different [View article]