pseydocyst

A Warning for U.S. Dollar Bears and Commodity Bulls

higher commodity prices are due to inflation of the supply of dollars.

Should your wealth be measured in FRN? That can be printed infinitely? Can you trust this gov't, ,that's corrupt to the core, to manage the nation's money responsibly?

Sure, there have been episodes of spikes in specific commodities, like palladium, or natural gas for example. But today all commodities are shooting up. This is due to the devaluation of the dollar. latest dollar index is 71.68. and it's going lower. Unless you think we've hit a bottom in the dollar index, you'd be wrong to bet on lower gold, silver, or oil prices, measured in us dollars.

The US dollar is simply not a reliable measure rod for wealth. You can't measure your wealth in US dollars due to rapid inflation. The only honest measure is gold, or silver.

Measure in terms of gold. The stock market has been in a bear market since 1999. If you were smart you would've held stocks from 1982 until 1999 and converted all the money to gold. You'd be rich. The gold bull market is not over. The equity bear market that is still far from over, imo.

Gold's Just Getting Started - Barron's Interview

I agree with jt ETFs are not the way to go
if you wanna own gold. Sure, it's convenient,
there is little spread, you don't have to worry
about storage, but at what cost???

You're basically handing money over to an
entity, giving control over to them, in return
for a paper claim to the gold which may or may
not be there. This was a great idea for the gold cartel to absorb the recent growing investment demand for gold without having to give in to physical delivery.

For those of us with investment assets in the hundred thousand dollar range, you need to own
physical gold to protect yourself. You never know
if tomorrow everything's gonna go to crap and Bush signs an executive order banning gold ownership - "for the good of the country". This has happened before in 1933, and lasted some 40 yrs. So it could happen again. Basically you'd have to take your gold and move out to some other country like switzerland for safe keeping.

Gold's Just Getting Started - Barron's Interview

It is clear in this current environment, gold -
physical gold only can offer protection for the
little guy.

Here is a passage from "The Battle for Investment Survival" from Gerald M. Loeb - pp. 22

In the history of the world we find the record of savings really saved through buying gold, hoarding precious stones, and other forms of "hard wealth" privately secreted. In the future history of America most of us will, in my opinion, learn this lesson too late...

Curiously, it is those of slight wealth who need this sort of protection rather those of great means, who can really suffer large depreciation without feeling the loss. And it is usually the latter who are best fitted to cope with the problem... "

Gold Technicals: Will We See a Correction or $1,080?

i see a correction coming, but
that's a good thing. This is a very strong
bull market.
Alot a people lost out when they bought
@ clearly very overbought levels @ 910-915.
When this thing comes down below 800
time to back up the truck.

Gold Is Just a Brick ('Active Value Investing' Book Excerpt)

I think gold @ this point is still a very good buy.

B/c of this perpetual "war on terror" in afghanistan
and iraq, and possible escalation in to Iran as well, the US gov't will have to print more money and go into more debt. You can count on more gov't deficits. Trade deficits are @ all time highs. My feelings that we are in a repeat of the 70's now. Gold's has run up b/c the market's are
sensing this, despite all the press bashing out there trying to suppress the gold price.

What's more currently 1 oz of gold buys only 9 barrels of oil. This is historically @ all time lows. Which suggests gold is still very underpriced.

Gold Is Just a Brick ('Active Value Investing' Book Excerpt)

What a nut, this guy knows nothing.

Gold is money. It has acted as insurance
to protect one's wealth for thousands of years.
It is nobody's liability.

Gold is going up recently because people have
lost faith in the paper dollar system, and all
those complex financial instruments, i.e. MBSs,
CDOs, and who knows what else derivatives that
are all going down the tubes.

Governments, central banks, have alot of power when they can issue paper currency with nothing backing them. Inflation is always the end result. It's a hidden tax on the average working man who works for a steady paycheck that doesn't rise as fast as cost of living expenses do. It's a big fraud perpetrated against the average man, and people are more and more waking up to this fact.

Sure there is no guarantee that you'll make
money holding gold in the long run, but you
sure as heck wont lose money. People think
if you just put money away in stocks for
10 to 20 years you automatically will make
money. There's absolutely no guarantee of that.
It is by far easier to lose one's savings in the
thousands of investment options out there than
to make money.

People have used gold as the standard for money
for many years. Now all money has lost that anchor. Soon people will realize the paper money they hold has nothing behind it but by then it'll be too late.