Gold Barron

Precious Metal Developers Provide Value and Upside in 2009

The money was spent to pay for WWII! It was not really an investment as the money the Fed is printing today. And yes, the banks grow the money supply by allowing it into the system. The Fed does not give the printed money to the public.

What you fail to understand is that the USA is the leader and makes the rules in this world. They can change the rules anytime they want and all other countries abide by them.

I did not say "Cash is king" I said that right now the dollar is the best place to have your money right now because we are in a deflationary period. Sure, have some gold in your portfolio (10-20%) but the price of Gold will fall back to the $500 range soon. Buy it then!

Precious Metal Developers Provide Value and Upside in 2009

Auto44,

The Fed is printing money as always. That is nothing new. That printed money is basically an investment not an expenditure. The Fed is going to get most of that money back, possibly more.

Lets put things into perspective. So far the "cost" or "investment" of the bailout is 7.76 Trillion Dollars. About $25,000 dollars for every man, woman, and child in the USA. As a percent of total national net worth (government and non-governmental assets minus liabilities) it’s less than 6 percent. Peanuts.

Did you know that the wealthiest 50,000 Americans net worth combined is nearly 25 trillion dollars?

I think it is fair to say that Obama is going to raise taxes. The states are also going to raise taxes. Corporate taxes will increase. I bet all taxes will go up. As long as everybody pays their taxes, we should be okay.

Gold may get to $1300/oz someday in the future, but all of this talk about the dollar someday being worthless is paranoid and delusional thinking.

Anybody that believes what Ross Perot said is a moron.

Precious Metal Developers Provide Value and Upside in 2009

The government is not Marxist....it is Fascist. Bailing out corporations is not Marxism, it is Fascism. Dont worry about inflation too much because there will be much higher taxes and some major wars in the next few years. We are in a deflationary period and will be for a long while.

The fed does not grow the money supply, banks do. The dollar is the ultimate safe haven.

Precious Metal Developers Provide Value and Upside in 2009

If you believe that the mining companies will rise 500-1000% then you should allocate 100% of your portfolio to mining stocks. Commodity stocks are cyclical and there will be a major pullback in the next few weeks. Where are their earnings? How will they get the gold out of the ground? Mining companies are laying off their workers and foreign governments are also in the process of seizing some mines.

I think the price of Gold is going to fall and when it does it will fall very fast and unexpectantly. I own alot of gold and silver and hope I am wrong. But when everybody and their grandmonther is buying gold, thats a good sign to sell.

Obama and the democrat controlled congress are going to raise taxes. Anybody that thinks otherwise is delusional. Dont believe all of the positive talk your hearing on CNBC about a "Bull" market. The stock market is the worst place to have your money long term right now. Trading the market is fine, but long term is very very risky.

Precious Metal Developers Provide Value and Upside in 2009

Pay particular attention to this part of the Authors article.

Disclosure: The author is long NG, SA, SOHAF.PK, AXU and ETRUF.PK. An affiliate of the author's employer provides corporate advisory services to NG, AXU and ETRUF.PK.

Precious Metal Developers Provide Value and Upside in 2009

Investing in Precious metals stocks right now would be a very bad idea. Most of them are up about 100% in the past few weeks. Funny nobody was saying to buy mining stocks three weeks ago. Now everybody is screaming buy buy buy. For all of you Monday morning quarterbacks...thats called a head fake.

The democrats are not going to lower taxes or reduce regulation. The author appears to have forgotten what party will be in office in 3 weeks.