Tom Bombadil

The Favorable Outlook for Gold

Given that the rest of my portfolio is denominated in dollars and much of it is cash and treasuries, a strong dollar and falling gold doesn't seem so bad. I just keep telling myself that when gold drops it means my cash is more valuable, even if the number on it doesn't actually change. Personally, I hope I never make any money on the gold, that would be the best thing for everybody.

PS: the headline promises a "favorable outlook" for gold, but I don't see anything but bad news in the article. Or good news, I guess, if you agree with what I wrote above.

Why Are Investors Returning to the Dollar?

Guys, the line about "the best politicians money can buy" is a joke. It sounds like a compliment but can also be interpreted to mean that they can be influenced by campaign donations or other means. I'm pretty sure it wasn't meant as praise here.

I've been wondering about the strength of short Treasuries also. I wonder if it's just that people need a place to park the proceeds from selling some other asset, and they have too much (over FDIC limit) to risk putting it into a bank that they are afraid could go under. So, with Treasuries at least you are sure you will get it back, whereas you can't necessarily say that for anything else out there.

Should You Own Gold, Silver or Commodity Stocks?

Wow, an article about gold that is reasoned, informative, and doesn't sound like some deranged cult leader wrote it. Very nice work.

As for the physical/paper thing, I still don't understand why it is a surprise that prices are higher at retail for small quantities than they are for wholesale purchases in bulk. Why do we need market manipulation conspiracy theories to explain it?

Gold, Silver and Deflation

Gold bugs seem to always be astonished that something costs more at retail in small quantities than it does at wholesale in bulk. Doesn't seem all that strange to me, but what do I know...

Countdown of Manipulated Gold Price Running Out

I bought some gold recently as part of setting up a Harry Browne-style "permanent portfolio", which includes it as an inflation hedge. The hardest part about it was getting past the fact that 99% of gold advocates I run across are such nutters, and I didn't want to be anything like them. I actually hope it goes down because it would mean the monetary policy hasn't gotten out of control, and presumably my other investments would then be doing well and offsetting the loss. Also it will lead to more hilariously stupid conspiracy theories, and who doesn't enjoy that?