pseydocyst

Silver vs. Gold: 2004 to Today

The current physical shortage of silver is real. I wouldn't buy any of those futures contracts in silver. They have way too much paper to manipulate and rig the prices of silver and gold. They want to drive the prices down, to create the perception that these "commodities" are not worth as much as stocks, and to drive more and more people to be owning stocks.

Real money is in physical gold and silver. Not some pieces of paper promises that Wallstreet pumps out to make themselves rich.

Soon the truth will comeout, the emperor has no clothes. People will wake up to this.

Get Out of Commodities - Barron's

yeah, get out of physical gold and silver
and buy financials and their toxic waste paper.
what great advice

Where are Precious Metals Headed in 2008?

people talk about gold going up. The truth is that the dollar is going down.

The dollar is going down due to massive inflation.

There is a huge amount of counterfeit dollar bills out there. Pretty soon people will not be taking dollars anymore.

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.

Who's Benefiting from Soaring Gold Prices, and Why?

Gold companies are a tough sell. It's not like gold.
You could see it and recognize it for what it is.
Too many factors go in the stock price of these
mining companies. Too many of these stocks are
scams and the public are rightly very cautious about buying this. Unless you're an insider you're just gambling your money hoping the stock will go with the rise of gold. Better go to Las vegas. You'll have a better time there.

Too Much Money Chasing Too Few Commodities

Kinda scary time we live in today. Looks like the commodity cycle is back again, just like the 70's.

Amazing to see all the grain prices just shoot up
so fast recently, soybeans, wheat, rice, all gone parabolic. My DBA I bought just 3 months ago gained 30-40% already.

Crude oil has gone up now to all time high of
$100. It seems all the other commodities are
just catching up with it. E.g. now it takes around
10oz of gold to buy 100 barrels of crude, or 5 oz of silver to buy 1 barrel of crude. This still somewhat undervalues gold and silver based on historical averages (~8 oz for gold and 3-4oz for silver).

Where oil is headed I think is the important question. If the central bankers have lost control, and oil heads up higher, you better have a huge position in gold and silver to protect yourself. Today the $US is backed by oil, which is in demand by all the other countries to buy oil. If somehow this system erodes, maybe the US FRN will be worth much less.

A second demand for the US dollar comes from the US stock market. But now we're in a bear market. The DOW valued in gold terms has been declining from an incredible 40 oz in '99 to less than 15 oz today. The money simply is not going into stocks anymore. The stock market (US) is deflating and going into commodities. But this declining stock market produces even less demand for the US dollar. Which produces a vicious cycle.

Overall the argument is just too compelling to put your money in gold and silver. Despite all the Gov't propaganda, with the manipulated/massaged CPI, all the market hype you see on CNBC, and business news channels, the reality is just too painfully obvious. All these financial asset's that have done well in the 90's, stocks, bonds, and even housing are basically wealth sinks, and only hard commodities that you can hold in your hand will protect your wealth from confiscation.

It'll be interesting to see what'll happen over the next decade, maybe the US dollar will become like the next Mexican peso. The middle class will be slowly wiped out and the wealth of the country will be in very few hands.

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... "

Anybody Seen Our Gold?

I wonder why GATA has gone so far to
expose the gov't manipulation of the
gold price. If you think gold is priced
too cheap in US dollars just go out and
buy more! Why do you have to talk it
up (even putting a goddamn ad in the WSJ? ). I too believe that gov't have always
tried to keep the fiction that federal reserve
notes are *real* money instead of gold itself.
But now that gold has run up to $900 it is
becoming more difficult to accumulate this stuff.

However there is no doubt in my mind that US dollar is gonna get much weaker in the future. It is becoming a huge debtor nation, an overstretched military empire, huge obligations medicare, and social security. China and Russia will become more formidable competitors on the world stage.

The US is also becoming much less attractive place to live. There is more of a police state mentality developing. Too much regulation and taxes. It used to be 10-20 years ago everybody wanted to come to this country for the freedom and opportunities economically it offered but is that still true today?

Those of you who love your freedoms should hold
physical gold. It represented real money back when this country was first developing and it will be once again recognized by the masses in the future. To hold your money in the form of electronic deposits in bank account is just one more way for the gov't and authorities to keep tabs on you. Gov't have been getting more intrusive in people's lives, they want to know everything about you, and how much you're worth. Gold is basically a huge obstacle for them.
Alan Greenspan talked about this in his essay on why the statists (i.e. gov't) hates gold.

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.