sa44ron

Gold Transforming into a Completely Demonetized Wealth Asset

For the record Gold was set at $22 per oz in 1933 before it was confiscated from the American public. Today it is $1162 per oz. The annual compound return is 4.7%.

The DJI Average was 261 at its high in 1929. Today its is 10389. The annual compound return is 4.7%. (Plus dividends. How long can the DJI stocks pay even 1.5% in dividends when their total earnings are negative?)

Personally I will go with the momentum of Gold. MarvinMBA can hold his stocks. Let's see where numbers in a few years and update the returns. All I can say is Gold will be around a lot longer than GE or INTC.


On Nov 09 01:31 AM MarvinMBA wrote:

> Over the long run, I'll invest in the likes of GE and INTC...Both
> of these companies will create value that will exceed the precious
> metal. But some small gold holdings cannot hurt but in the long run
> the Biblical comment " Do not place your faith in Gold" in my opinion
> applies today as it always did in the past. Remember productive KNOWLEDGE
> based assets are WHERE THE LONG TERM ACTION IS AND THAT MEANS EQUITIES.
> MarvinMBA

On Nov 06 09:22 PM You're Kidding wrote:

> 80 years ago gold was worth $35/oz. Today its worth $1100. Sounds
> like incredible growth doesn't it? But actually that growth is only
> 4.4% compound annual growth rate.
>
> BIG DEAL.
>
> The value of gold is based on human psychology, and when the economies
> of the world stabilize, the value of gold will drop like a rock.
>
>
> Its a very risky investment and many will find this out the hard
> way.

Gold Transforming into a Completely Demonetized Wealth Asset

What do you expect the 'Central Banks' to say? They are blowing smoke, just like they always do. We don't believe them any more. Everyone is fixated on the American dollar. "Look how volatile the Euro is!" is not the proper perspective. It is the American dollar that is volatile! The other currencies have been relatively stable to each other. I repeat "to each other". There comes a time when... You fill in your own ending. Gold's day will come...again. And it is not that far away. The Central Banks want us to hold paper. That is all they are saying. That and "trust us".

Final comment: Buy gold and sleep at night.

Accounting Fraud and the Big Banks: Worse than Enron?

Great comparison: Enron to Big Banks. Enron collapsed when its off book transactions had to be settled. Same will happen to Big Banks and the Untied States! The US politians don't want the FED's books opened as it will expose the off book transactions!

The Slippery Truth About Oil Price

How about solar panels on every house? And force the utilities to take the surplus electricity at a reasonable price.


Comment on Nov 20 12:10 AM Henry's father wrote:

> I proudly present the "liberal progressive" energy plan.

No One Saw This Economic Crisis Coming?

Anyone who disagrees with the political think tank of the administration in power is ostracised. Any company that bucks the political agenda of the administration in power os put out of business. This political structure creates a lot of 'yes' men. 'Easy' Al Greenspan saw this coming; that is why he was replaced by 'Helicopter' Ben Bernanke. Without Greenspan's cleverness, the debt shake-out would have started ten to twenty years ago and would be over now. Debt levels are now an order of magnitude larger, and therefore the shake-out will be bigger. Government intervention can no longer stop the deleveraging of debt. We are in a depression; the question now is how long and how deep will it be? The stimulus packages cannot replace the massive decline in world net worth. They can only prop up unviable businesses and bankrupt the government coffers at the same time. All government interventions in the economy are bad; some are just worse than others. The only thing the government hasn't done is raise taxes; and 'cap and trade' will cover that. How do you turn a recession into a depression? Raise taxes. Can you say inflationary depression?

Why Not Start Defaulting on Your Credit Cards?

In AbomiNation, the looters win again.

Obama Says We're Out of Money

On May 28 10:53 AM DONE_SONZ wrote:

> Plan [A] inflate and debase.Plan [B] raise the roof on gold and pay down debt.

Saffron wrote: Plan [B] should read: confiscate gold and revalue the dollar at 1/3500 per oz. of gold.

The gold then offsets the debt, which won't actually be paid down. But the ledger is balanced. Obama is Roosevelt II.

Has Gold Been Manipulated?

Nobody has pockets deep enough to manipulate anything for very long. Just ask the Hunt Brothers and their little foray in to silver market in 1980. Eventually prices get to where they are supposed to, whether it's the price of gold or the price on long Treasuries. Let's just make sure that ownership of gold remains legal. Happy trading.

Dollar's Purchasing Power Annihilated - The Chart They Don't Want You to See

Last week I thought Banana Republic was a clothing store. Now I hear we are one!


On May 09 08:13 AM abetterplace wrote:

> Just another doomsday chart with no common sense value.
> Dollar values and supply must change constantly in any capitalistic
> society to allow for inflation that is an absolute.
> The big catch is when inflation outruns money supply as has been
> seen in many, mostly under developed countries. It's not going to
> happen here, at least not in the near future.
> If you happen to be old enough to remember 1971, How many people
> do you know that do not have it much better now than then.

Prosecuting Those Who 'Caused' the Recession Could Have Unintended Consequences

Prosecuting Those Who 'Caused' the Recession? Well, let's start at the top: the FED(eral Reserve). Who will mete out the punishment? The System doesn't punish it's own, unless they want to get rid of someone. There are the voters, and the American public are captive to the System. That leaves the foreign governments. After Bretton Woods was repealed, OPEC was formed so the oil producing countries could combat US dollar inflation.

The next step along this line is a new international exchange system based on a basket of currencies and commodities. For instance, the basket would have six equal parts: three currencies (US dollar, Japanese yen, Swiss franc) and three commodites (gold, oil, rice). Exchange would be done in any of these six parts. The value of the transaction would be based on the basket. The basket needs no name as the basket itself is not traded. No government could print more baskets.

Lets face it, when it comes to money these days, no government trusts another government. The basket establishes accountability. On accountability, trust can be built.

In God We Trust. All others pay cash. Just not US dollars.

Weekly Outlook: Is This Reflation?

There is a solution. And now that the pork barrelling is (hopefully) done, it can be implemented. The only thing to get the consumer/public involved is to have a one or two year moratorium on taxes, namely, personal income taxes, corporate income taxes, and especially capital gains taxes. The savings would be put to the best use of each consumer. When they have their own house in order, then they will step out and take some risk. Without this sense of security, the private sector will not venture out! If it means paying down loans, then that will shore up the bank balance sheet. And isn't that what the Fed is trying to do. I don't mean to be critical of government, but every time government touches money, 50 percent or more disappears. For every dollar of taxes, there is only 50 cent of service. The efficiency of tax dollars goes down again when government builds a project. And public capital pushes private capital out of the market. So the best bang for the buck is lower taxes. It can be done now before another $10 Trillion dollars are spent over the next five years. And taxes will be cut in five years anyway, because that will be the only thing left to do.

Currency ETF Charts

Hey, can you plot the Swiss franc, too?

Currency ETF Charts

Good call. I bought CDE and HL on Friday the 13th (of February)


On Feb 14 01:47 PM JE wrote:

> I forgot gold
>
> Retrace back to the low $800's one more time. The biggest spending
> program in our history and it could not top the old high I think
> bodes ill for gold before its breakout.
>
> Yes I am a gold bug but I think gold is being suppressed so that
> money is sure to go in bonds.
>
> I also own CDE and HL. If you want to see the largest short positions
> I have ever saw in your life go to Yahoo finance and look at the
> % of the float that is short
>
> finance.yahoo.com/q/ks... and HL is
>
> finance.yahoo.com/q/ks...
>
> These short positions have been increasing since last fall and continue
> to go up. Other gold stocks are not shorted like this. This is artificial
> suppression and illegal I'm sure with naked shorts.
>
> The only thing I can see is something is going to happen to silver.
> These guys are big producers- are the maines going to be nationalized
> on a big move up in silver.
>
> CDE was below 50 cents and short positions continued to be added.
>
>
> Does anyone know anything that I do not?

The U.S. Dollar: Waiting to Tank Gold's Run?

The US dollar is up to 86, but 86 what? Some basket of currency? It might as well be a basket of eggs. Or the level of the tide in New York harbor. The bottom line gold has continued to rise against any other tangible or in-tangible asset in relative terms. That is when you take paper out as the reference point.

The Scariest Chart Ever

Yes, that is what the FED is doing.


On Jan 21 12:10 AM TTT wrote:

> Just print more money to borrow more money. Simple as that.