Reinhard's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/137117/comments http://seekingalpha.com/article/127171-gold-bulls-should-stay-away-from-gold-stocks?source=feed#comment-435468 435468 - Falling oil prices have been mentioned above, and more generically, any deflationary wave can be good for mining stocks. Imagine the current period lasts for two years, where gold drops 10% and other prices drop in the aggregate by 20%. Here, mines actually make you money, while gold not. And the observed leverage can change in a hurry.
- Tax considerations, availbility in IRAs, safety of your investment are other considerations. Especially if the U.S. government goes hostile. Under certain circumstances, I rather trust mining executives.
- Mining companies seem risky, but therefore one should receive a "required rate of return" for lending mining companies money for their operations. If not, nobody would lend them eventually. So, if mines make a profit in the long-run, the investor should be able to earn a real return in the long run. Gold itself just preserves its real value in the long-run. In adverse times for gold, e.g. when it went from $850 to $250, large mining companies might not have lost 70% (including dividends), but could hold their ground.

So best is to own mining shares as well as gold, and rebalance occasionally between them.
]]> Sun, 22 Mar 2009 13:27:27 -0400 - Falling oil prices have been mentioned above, and more generically, any deflationary wave can be good for mining stocks. Imagine the current period lasts for two years, where gold drops 10% and other prices drop in the aggregate by 20%. Here, mines actually make you money, while gold not. And the observed leverage can change in a hurry.
- Tax considerations, availbility in IRAs, safety of your investment are other considerations. Especially if the U.S. government goes hostile. Under certain circumstances, I rather trust mining executives.
- Mining companies seem risky, but therefore one should receive a "required rate of return" for lending mining companies money for their operations. If not, nobody would lend them eventually. So, if mines make a profit in the long-run, the investor should be able to earn a real return in the long run. Gold itself just preserves its real value in the long-run. In adverse times for gold, e.g. when it went from $850 to $250, large mining companies might not have lost 70% (including dividends), but could hold their ground.

So best is to own mining shares as well as gold, and rebalance occasionally between them.
]]> http://seekingalpha.com/article/68465-active-etfs-a-race-to-the-starting-line?source=feed#comment-218890 218890 Wed, 30 Jul 2008 20:31:20 -0400 http://seekingalpha.com/article/82982-investing-like-buffett-why-novagold-is-a-buy?source=feed#comment-194498 194498 Fri, 27 Jun 2008 18:30:16 -0400 http://seekingalpha.com/article/82757-is-robert-toll-s-honesty-keeping-shares-above-water?source=feed#comment-193642 193642 Thu, 26 Jun 2008 16:23:15 -0400 http://seekingalpha.com/article/63304-kellog-is-not-an-agriculture-play?source=feed#comment-117885 117885 Fri, 22 Feb 2008 13:31:37 -0500 http://seekingalpha.com/article/59228-ron-paul-supporters-claim-hand-in-news-corp-rout?source=feed#comment-108842 108842
The second is more important. If Ron Paul supporters are among sponsors of FOX, they will be reluctant to pay as much as on other channels. Same, if they get bombarded by supporters. Also, all FOX related companies will be bogged down by complaints which will disrupt their business.

The main impact will be how long supporters will keep up the continuous e-mailing and calling. If they can keep this up continuously for a year, NWS' earnings will be affected at the end of the year.]]> Mon, 07 Jan 2008 20:52:34 -0500
The second is more important. If Ron Paul supporters are among sponsors of FOX, they will be reluctant to pay as much as on other channels. Same, if they get bombarded by supporters. Also, all FOX related companies will be bogged down by complaints which will disrupt their business.

The main impact will be how long supporters will keep up the continuous e-mailing and calling. If they can keep this up continuously for a year, NWS' earnings will be affected at the end of the year.]]> http://seekingalpha.com/article/59244-value-of-gold-over-the-ages?source=feed#comment-108831 108831 The right measure is the money-supply which measures the rate of creation of money and credit. This is the rate at which money loses its value compared to something that isn't much created or destroyed (gold). This would tilt the above graph downwards and make gold cheaper than it looks. Why should gold have a value at all? It has a utility as medium of exchange and storage of wealth, and is probably worth a certain proportion of our total wealth, depending on how much we trust other investments and paper money. If paper money is created at a rate of 7%, the interest rates should be at least 7%. At 10%, one can still stay ahead of the devaluation. If interest rates are only 5%, paper money loses its relevance as an investment, and people will wake up and rather hold gold. This is why gold fluctuates and doesn't go exactly inversely to the money-supply.
]]> Mon, 07 Jan 2008 19:50:07 -0500 The right measure is the money-supply which measures the rate of creation of money and credit. This is the rate at which money loses its value compared to something that isn't much created or destroyed (gold). This would tilt the above graph downwards and make gold cheaper than it looks. Why should gold have a value at all? It has a utility as medium of exchange and storage of wealth, and is probably worth a certain proportion of our total wealth, depending on how much we trust other investments and paper money. If paper money is created at a rate of 7%, the interest rates should be at least 7%. At 10%, one can still stay ahead of the devaluation. If interest rates are only 5%, paper money loses its relevance as an investment, and people will wake up and rather hold gold. This is why gold fluctuates and doesn't go exactly inversely to the money-supply.
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