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Long a buy and hold investor, I now believe that buy and hold has to be re-evaluated in a world of ever increasing, instant information and huge gyrations in markets all over the world. A value investor at heart, I anchor my portfolio with conservative funds and blue chip dividend stocks, but... More
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  • Quantitative Counterfeiting, Banker Theft And The Argument For Hard Assets Like Gold, Silver And Platinum

    You do not own the money in your savings or checking accounts!

    Let me repeat that!!

    YOU DO NOT OWN the money that you "think" you own, which is currently sitting in your bank accounts. Actually, you don't even own the stocks that you "think" you own, which are now held in your brokerage account, but that is for another day and another article.

    When you make a deposit at your local bank, you are not really making a deposit according to bank law. You are actually "loaning" the bank that money. It sits in their accounts and is actually listed as a liability on their books, "because" it is a loan from you! Basically, if the financial spit hits the fan, as it recently did in Cypress, the bank can quite legally take all or some of that money as the poor depositors in Cypress are now finding out. Is it merely Cypriot law that allows this? No it is not. It is western banking law and it applies to every country with a modern banking system.

    This is one of the reasons why I like to hold physical gold, silver and/or platinum, as part of my investment strategy. Gold, silver and Platinum do not have a "third party liability" as does the fiat currency you have in your wallet, or the digital currency that makes up about 98% of ALL FIAT CURRENY in use today!

    What would you do if suddenly you could not access your bank account? What happens if your bank loans out all the money in their bank accounts, that you "loaned" them (which they can legally do) to a "third party", lets say a large hedge fund, that goes bankrupt, or looses billions at the hands of a twenty something trader who "made a mistake" in our fast moving worldwide financial derivatives market, which now tops twenty Trillion dollars per day!!

    Now the bank has essentially loaned out it's monetary base, which it borrowed from you, me and the guy down the street, and cannot replace it!

    Think it can't happen? Then think again my friends, and while you are thinking, have a talk to one of those little old men in their 80's and 90's who sit on the park bench every day in your community, and keep all their money "out of the banks" that robbed them and their

    parents in the last great fiasco of the 1930's (Think Jimmy Stewart in the movie, "it's a wonderful life" when there is a run on his small town credit union)

    I used to wonder why my father never trusted banks, and often carried large amounts of cash with him, or hid it in a place only he knew about. Now I don't wonder anymore. We are watching something very similar unfold in front of our eyes. something similar to the fiasco of the "dirty thirties" only with the added malaise of so-called "Quantitative Easing" thrown into the mix.

    Central banks from around the world, are printing what is essentially counterfeit money in fiat currencies from the U.S. dollar to the Euro, the Yen, the Ruble, The Rial, the Peso and the Yuan. In the 30's, you could buy bread for 2 cents a loaf. Except, that many people couldn't afford 2 cents a loaf, because they had no money at all. Quantitative easing was started partly because central bankers did not want a repeat of that era. The consequences (hyper inflation) could be that bread may actually cost a thousand dollars per loaf in 3 or 5 years. How about 5 thousand dollars per loaf! Think it can't happen? Think again! If my father were alive today, it would not be "cash" he was squirreling away, but gold, silver or platinum. Something tangible. Something that could not be debased by the pinstriped counterfeiters, or stolen outright by their lesser brethren. He was not an unreasonable man. On the contrary, he ran a small business and employed 20 people for the best part of 30 years.

    $450,000 in cash dollars today (U.S. dollars) is the rough equivalent $10,000 was in 1913. that's a 98% drop in the value of a currency over 100 years, and it does not factor in the latest and greatest fiasco.

    The German Wiemar Republic found out how devastating money printing was during those 1930's when they were trying to repay war reparations demanded by the allied nations by printing German

    Marks in huge quantities, not unlike our modern day "Quantitative Easing" does today. The end result was a loaf of bread that took a whole wheelbarrow of cash to purchase (literally). It can be said with truth that another unforeseen consequence of that devastating policy was the rise of Adolph Hitler and the Nazi Party. We all know where that ended. (That is why Germany wants no part of modern day QE, which adds to the debacle in the Euro zone)

    Now there is a hue a cry from the banksters (parroted by some in the investment industry that feed from their trough), that gold and silver are in decline as investments. I don't believe them for a moment. Do you? Bill Gross certainly doesn't.

    He's not a banker and he's not a CNBC cheerleader. His decisions affect millions of bond investors. So when the largest bond fund investor in the world chooses to deleverage from those investments and begins to buy gold , I pay attention. Maybe we should all pay attention to the next few U.S. 10 year treasury auctions. (I'm sure Bill and his cohorts are)

    A lack of the usual suspects in that auction, which takes place 8 times per year, will be the canary in the coal mine, so to speak, for a sudden, dramatic and violent change in the investment landscape. You see, the Fed does not control that auction. They only control the shorter term notes. So, when not enough buyers show up to buy the U.S. debt in the form of 10 yr notes, a rise in interest rates on those notes will take place to entice those reluctant buyers (Countries, major bond funds etc). That, my friends, will take the "fun" out of this dis"fun"tional market as the bond bomb destroys many nest eggs. Hopefully, yours won't be one of them. I sold the last of my bond funds six months ago.

    Oh, and by the way, if you hold your gold/silver etc in a bank or bank fund, it is susceptible to the same rules your fiat currency accounts. You can lose it at the swipe of a pen.

    Now, what are you doing about that?


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Apr 04 5:43 AM | Link | 2 Comments
  • Junior Oils May Be Sitting On Giant Resources In Australia
    Oil Juniors in South Australia should benefit from new discovery in Ackaringa Basin

    Rodinia Oil Co (TSE-ROZ) (OTC-RDOIF.PK) is a Canadian junior oil and gas company engaged in the exploration, acquisition and development of onshore resources in the South and Western part of Australia.

    Rodinia owns 85% of approximately 23 million acres of exploration land in South and West Australia, most of which is in the Officer Basin.

    The Officer Basin is located about 40 km from the town of Coober Pedy, which is "ground Zero" of the recent large discovery reported on Jan 23rd by Linc Oil in the Ackaringa Basin. (See: the $20 Trillion showdown at Coober Pedy)

    On Jan 23rd, Linc Oil (ASX-LNC) announced to the world a discovery that may change the dynamic in the oil sector for years to come. (See article at Seeking Alpha) Two separate firms who consult for Linc energy estimate there is somewhere between 106 and 233 billion barrels in the Ackaringa Basin. These reserves, if true, will boost Australia's oil reserves to the level of Saudi Arabia. Real estate prices in Coober Pedy have already popped 30% since the announcement, along with the price of Linc Oil shares.

    Linc Oil is a mid-tier Australian producer which has traded as high as $29 per share recently. I believe there will be a pullback in the near term at which point I may try to ease into this stock, hopefully, in the $25 range or lower.

    In the mean time, I am picking up some shares of other juniors in close proximity to this discovery, including Rodinia Oil. Remember, penny stocks are often volatile and highly speculative. They are not for the faint of heart. Having said that, I usually play 10% of my portfolio in this volatile game and have had great success over the years. (note; I have also suffered great disappointments - be careful out there)

    At .07c per share, If Rodinia has good results with it's recent drills, it could be a home run. As I said before, not for the faint of heart!

    Disclosure: I am long OTC:RDOIF.

    Mar 20 1:09 PM | Link | Comment!
  • The Blossoming Graphene Market Is The Focus Of Focus Graphite

    Graphene and Graphite have caught the attention of many early stage investors!

    (click to enlarge)

    Focus Graphite

    Quick facts about Graphene:

    • Graphene occurs naturally in graphite, has unique physical properties and might be one of the strongest substances known.
    • 200x stronger than steel and so thin that it is transparent
    • The process of separating it from graphite will require some technological development before it is economically feasible to use it in industrial processes
    • Focus Graphite is a 40% shareholder in Grafoid Inc., a privately-held joint venture, to develop and acquire patent applications, secure intellectual property and develop graphene applications

    A number of multinationals are active in graphene research and development (e.g. Intel and IBM in computing, Dow Chemicals and BASF as suppliers of basic graphene material, and Samsung in consumer electronics).

    Graphene's emergence as the "new silicon" and Focus Graphite's participation at the graphene development and patenting level primes the company - and shareholders - to reap the rewards from emerging applications that will replace aging computing, communications and industrial technologies.

    According to the renowned research scientist Dr. Gordon Chiu, VP and Chief Scientist of Focus Graphite's Graphene Joint Venture - Grafoid Inc, the quality of the graphite source - which Focus Graphite holds in abundance - directly affects the quality and performance state of graphene, an allotrope of carbon that holds unique physical properties.

    "Scientifically and commercially, the Focus Graphite business program looks for definites; looks to financially minimize risk, and; ultimately, looks to maximize shareholder value," Dr. Chiu said.
    Graphene is considered to be one of the strongest substances known to science. It occurs naturally in graphite; is 200 times stronger than steel and is so thin it is transparent, but, unlike its source, diamond, it is flexible and electrically conductive.

    It is anticipated the first consumer products using graphene will be released by the fourth quarter of 2011 or early 2012 as components of computing or communications devices.

    As a transistor, graphene holds remarkable advantages over silicon in terms of processing speed and, more importantly, by obviating the need for internal cooling fans as it functions at room temperature.
    As a component for industrial, aviation and infrastructural use, for example, graphene's lightness and strength provide opportunities for those sectors to re-think engineering design and functionality.

    Electric Cars etc: - Graphene for use in graphene-saturated battery and super-charging capacitor applications. For investors in those sectors, the long-term cost-savings inherent with those sectoral applications are incalculable at this time.

    The trillion dollars spent globally on research and development on fullerenes and carbon nano-tubes during the last two decades laid the scientific groundwork for today's application development of graphene.
    The difference today is that graphene provides a stable, practical and useful material which has, as of yet, no equal in nature, in science, or in manufactured applications.
    Graphene, according to some observers, will change the way we live.

    But what is it?

    • Graphene is taken from graphite, which is made up of weakly bonded layers of carbon.
    • Graphene is composed of carbon atoms arranged in tightly bound hexagons just one atom thick.
    • Three million sheets of graphene on top of each other would be 1mm thick.
    • The band structure of graphite was first theorised and calculated by P.R. Wallace in 1947, though for it to exist in the real world was thought impossible.
    • Due to the timing of this discovery, some conspiracy theorists have linked it to materials at the Roswell "crash site".
    • In 2004, teams including Andre Geim and Konstantin Novoselov demonstrated that single layers could be isolated, resulting in the award of the Nobel Prize for Physics in 2010.

    The Focus Graphite Graphene Joint Venture
    Grafoid Inc., headed by VP and Chief Scientist Dr. Gordon Chiu, surprised the scientific community in early 2011 when it announced its entrance into the graphene development arena - a domain dominated by industrial heavyweights IBM, Intel and Samsung.

    Grafoid, however, distinguishes itself with an understanding it has no competitors in its class, and its commercial development interests, under Dr. Chiu's direction, are focused on high-value, near-to-market graphene applications.

    (The proprietary nature of some 25 specific projects at this time preclude the company from identifying its commercial development targets).

    The joint venture's goal, said Dr. Chiu, "is to find a basket of self-sustaining technologies that require Focus Graphite's participation to help them scale to their ultimate objectives."

    "They will need tons - not kilos - of graphene for their manufacturing processes," Dr. Chiu said. "And the quality of the graphite will directly affect the graphene. Focus Graphite will have a significant advantage here."

    In December 2011, Grafoid and Rutgers University AMIPP Advanced Polymer Center signed a memorandum of understanding to jointly develop and commercialize polymer and no-polymer technology graphene applications from Focus Graphite's Lac Knife Graphite project.

    Graphene is a remarkable substance.
    Tens of billions of dollars are currently being spent on graphene research globally at university laboratories and in corporate research and development facilities in three principal sectors, namely: consumer electronics; computing devices and, industrial materials.

    Additional research on a smaller scale is being applied to bio-medical application discoveries throughout the world.

    For more information visit:

    Disclosure: I am long OTCQX:FCSMF.

    Additional disclosure: I will look to invest in Grafoid Inc. should there be an IPO and I have an current enquiry with Grafoid looking to invest prior to ipo.

    Dec 17 12:18 PM | Link | Comment!
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