When I first got interested in buying precious metals and their mining stocks, one of the first commentators suggested to me was Adam Hamilton. Hamilton has been researching and promoting investing in the shiny metals since the beginning of the gold bull market in 2001. His predictions have realized an annual average gain of 48%!
If you have never read his weekly newsletter, released every Friday, I highly recommend it. He is extremely bullish on gold stocks right now his track record is excellent when looking at the big picture. He even predicted a massive stock surge in 2009 when everyone else was ready to jump off the bridge!
His website, Zeal LLC, can be found here: http://zealllc.com/
Saturday, January 21, 2012
Tuesday, January 17, 2012
Mr. Cooney Speaks
All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.--John Adams
I have a friend who we will call Mr. Cooney who reveals to me the secrets of the universe. The beautiful thing about is...Mr. Cooney is never wrong. He has a way of seeing through the fog of war and revealing things as they really are, things that are invisible to other people but are the real reason behind things.
Mr. Cooney explained to me today why the people who are passionate about Ron Paul are at odds with the rest of the nation. Since you are reading this page I am sure you have an opinion, but until you can get a 100% track record I will continue to heed the advice of Mr. C., who said:
"There is one core reason that you disagree with Ron Paul: You have no idea how money comes into existence. You therefore by default have no idea whatsoever of the history of money.
"This is easily understandable since the public K-12 schools would never teach it, and the public and private colleges do not even mention the history of money nor how money comes into existence. You have no idea of either, and nobody you know has any idea of either except the people you know who support Ron Paul.
"Furthermore, you couldn't care less about the history of money nor how it comes into existence. If you did you would already know something about it. But you don't think either matters, so you have no incentive to research it.
"Ron Paul has written books on the subject. Moreover, Paul agrees with John Adams, who lived through an inflationary hell. I won't quote the links because you won't read them anyway, you don't care. You don't think it matters.
"The fact is, there have been 599 failed currencies in the history of the world. I won't waste my time giving you that link either because you don't care. This time it is different. The US has the strongest military, the reserve currency of the world that everybody wants, nobody could live without us...and on and on...whatever. Debts don't matter, as Dick Cheney said, remember?
"You see, you can make all the arguments you want, but you still have no idea how money comes into existence and you have zero idea of the history of money. So you have nothing of substance to really back your argument, you are only quoting the obvious at the moment and therefore believe that is how it will always be. You have no history to back your argument because there is none, and you have no math or physics to back your understanding of money or how it is created because you have no understanding of the subject.
"Because you have no understanding of either, you:
1. Think paper money is ok. Gold is archaic.
2. Think deficits don't matter.
3. Think debt doesn't matter.
4. Think inflation and rising prices are as natural as a baby's smile.
5. Think the dollar will be the world's reserve currency, if not forever, at least for your lifetime.
6. Think the United States will always be the strongest military nation in the world.
7. Think the US Constitution is out of date.
8. Have no idea what the US Constitution says about money.
9. Have no idea why the US Constitution was written the way it was, and furthermore, you don't care.
"I could go on and on, but suffice it to say that you are in the majority and you will get your way. The United States defaulted on it's obligation to redeem paper dollars for gold 40 years ago and the trends are undeniable. Now we are over $15 trillion in debt, Obama just said we need to raise the debt ceiling again, and still you don't think it matters.
"Inflation stares you in the face every time you go to the grocery store, and still you don't think it matters. There is no point in arguing with you because you don't know. You have no clue about either the history or the creation of money, and you don't think it matters.
"Like Mr. Cooney senior used to say, if you think that attitude will get you places, then go for it."
I have a friend who we will call Mr. Cooney who reveals to me the secrets of the universe. The beautiful thing about is...Mr. Cooney is never wrong. He has a way of seeing through the fog of war and revealing things as they really are, things that are invisible to other people but are the real reason behind things.
Mr. Cooney explained to me today why the people who are passionate about Ron Paul are at odds with the rest of the nation. Since you are reading this page I am sure you have an opinion, but until you can get a 100% track record I will continue to heed the advice of Mr. C., who said:
"There is one core reason that you disagree with Ron Paul: You have no idea how money comes into existence. You therefore by default have no idea whatsoever of the history of money.
"This is easily understandable since the public K-12 schools would never teach it, and the public and private colleges do not even mention the history of money nor how money comes into existence. You have no idea of either, and nobody you know has any idea of either except the people you know who support Ron Paul.
"Furthermore, you couldn't care less about the history of money nor how it comes into existence. If you did you would already know something about it. But you don't think either matters, so you have no incentive to research it.
"Ron Paul has written books on the subject. Moreover, Paul agrees with John Adams, who lived through an inflationary hell. I won't quote the links because you won't read them anyway, you don't care. You don't think it matters.
"The fact is, there have been 599 failed currencies in the history of the world. I won't waste my time giving you that link either because you don't care. This time it is different. The US has the strongest military, the reserve currency of the world that everybody wants, nobody could live without us...and on and on...whatever. Debts don't matter, as Dick Cheney said, remember?
"You see, you can make all the arguments you want, but you still have no idea how money comes into existence and you have zero idea of the history of money. So you have nothing of substance to really back your argument, you are only quoting the obvious at the moment and therefore believe that is how it will always be. You have no history to back your argument because there is none, and you have no math or physics to back your understanding of money or how it is created because you have no understanding of the subject.
"Because you have no understanding of either, you:
1. Think paper money is ok. Gold is archaic.
2. Think deficits don't matter.
3. Think debt doesn't matter.
4. Think inflation and rising prices are as natural as a baby's smile.
5. Think the dollar will be the world's reserve currency, if not forever, at least for your lifetime.
6. Think the United States will always be the strongest military nation in the world.
7. Think the US Constitution is out of date.
8. Have no idea what the US Constitution says about money.
9. Have no idea why the US Constitution was written the way it was, and furthermore, you don't care.
"I could go on and on, but suffice it to say that you are in the majority and you will get your way. The United States defaulted on it's obligation to redeem paper dollars for gold 40 years ago and the trends are undeniable. Now we are over $15 trillion in debt, Obama just said we need to raise the debt ceiling again, and still you don't think it matters.
"Inflation stares you in the face every time you go to the grocery store, and still you don't think it matters. There is no point in arguing with you because you don't know. You have no clue about either the history or the creation of money, and you don't think it matters.
"Like Mr. Cooney senior used to say, if you think that attitude will get you places, then go for it."
Sunday, December 25, 2011
Numbers
Median Home Values: Unadjusted
2000 1990 1980 1970 1960 1950 1940
United States $119,600 $79,100 $47,200 $17,000 $11,900 $7,354 $2,938
Alabama $85,100 $53,700 $33,900 $12,200 $8,600 $4,473 $1,610
Alaska $144,200 $94,400 $76,300 $22,700 $9,100 $3,477 NA
Arizona $121,300 $80,100 $54,800 $16,300 $11,100 $5,935 $1,400
Arkansas $72,800 $46,300 $31,100 $10,500 $6,700 $4,087 $1,100
California $211,500 $195,500 $84,500 $23,100 $15,100 $9,564 $3,527
Colorado $166,600 $82,700 $64,100 $17,300 $12,300 $7,151 $2,091
Connecticut $166,900 $177,800 $65,600 $25,500 $16,700 $11,862 $4,615
Delaware $130,400 $100,100 $44,400 $17,100 $12,400 $9,079 $4,159
Dist. of Columbia $157,200 $123,900 $68,800 $21,300 $15,400 $14,498 $7,568
Florida $105,500 $77,100 $45,100 $15,000 $11,800 $6,612 $2,218
Georgia $111,200 $71,300 $36,900 $14,600 $9,500 $5,235 $1,957
Hawaii $272,700 $245,300 $118,100 $35,100 $20,900 $12,283 NA
Idaho $106,300 $58,200 $45,600 $14,100 $10,600 $5,852 $1,600
Illinois $130,800 $80,900 $52,800 $19,800 $14,700 $8,646 $3,277
Indiana $94,300 $53,900 $37,200 $13,800 $10,200 $6,226 $2,406
Iowa $82,500 $45,900 $40,600 $13,900 $9,900 $6,320 $2,253
Kansas $83,500 $52,200 $37,800 $12,100 $9,300 $5,462 $1,733
Kentucky $86,700 $50,500 $34,200 $12,600 $8,800 $5,283 $2,074
Louisiana $85,000 $58,500 $43,000 $14,600 $10,700 $5,141 $1,414
Maine $98,700 $87,400 $37,900 $12,800 $8,800 $4,856 $2,008
Maryland $146,000 $116,500 $58,300 $18,700 $11,900 $8,033 $3,031
Massachusetts $185,700 $162,800 $48,400 $20,600 $13,800 $9,144 $3,837
Michigan $115,600 $60,600 $39,000 $17,500 $12,000 $7,496 $2,863
Minnesota $122,400 $74,000 $53,100 $18,000 $12,800 $7,806 $3,024
Mississippi $71,400 $45,600 $31,400 $11,200 $7,900 $4,159 $1,189
Missouri $89,900 $59,800 $36,700 $14,400 $10,900 $6,399 $2,392
Montana $99,500 $56,600 $46,500 $14,000 $10,900 $5,797 $1,651
Nebraska $88,000 $50,400 $38,000 $12,400 $9,400 $5,918 $2,156
Nevada $142,000 $95,700 $68,700 $22,400 $15,200 $8,859 $1,987
New Hampshire $133,300 $129,400 $48,000 $16,400 $10,700 $6,199 $2,505
New Jersey $170,800 $162,300 $60,200 $23,400 $15,600 $10,408 $4,528
New Mexico $108,100 $70,100 $45,300 $13,000 $10,700 $5,697 $656
New York $148,700 $131,600 $45,600 $22,500 $15,300 $10,152 $4,389
North Carolina $108,300 $65,800 $36,000 $12,800 $8,000 $4,901 $1,802
North Dakota $74,400 $50,800 $43,900 $13,000 $9,800 $5,396 $1,626
Ohio $103,700 $63,500 $44,900 $17,600 $13,400 $8,304 $3,415
Oklahoma $70,700 $48,100 $35,600 $11,100 $7,900 $5,228 $1,293
Oregon $152,100 $67,100 $56,900 $15,400 $10,500 $6,846 $2,343
Pennsylvania $97,000 $69,700 $39,100 $13,600 $10,200 $6,992 $3,205
Rhode Island $133,000 $133,500 $46,800 $18,200 $12,300 $9,767 $3,848
South Carolina $94,900 $61,100 $35,100 $13,000 $7,500 $5,112 $2,145
South Dakota $79,600 $45,200 $36,600 $11,400 $8,800 $5,410 $1,618
Tennessee $93,000 $58,400 $35,600 $12,500 $8,300 $5,268 $1,826
Texas $82,500 $59,600 $39,100 $12,000 $8,800 $5,805 $1,693
Utah $146,100 $68,900 $57,300 $16,800 $12,600 $7,409 $2,320
Vermont $111,500 $95,500 $42,200 $16,400 $9,700 $6,277 $2,836
Virginia $125,400 $91,000 $48,000 $17,100 $10,800 $6,581 $2,633
Washington $168,300 $93,400 $59,900 $18,500 $11,700 $7,169 $2,359
West Virginia $72,800 $47,900 $38,500 $11,300 $7,600 $5,473 $2,350
Wisconsin $112,200 $62,500 $48,600 $17,300 $12,600 $7,927 $3,232
Wyoming $96,600 $61,600 $59,800 $15,300 $12,300 $6,811 $2,174
NA: Not Available
Source: U.S. Census Bureau http://www.census.gov/hhes/www/housing/census/historic/values.html
Median Home Value 2010 $221,800
Approx Price of Gold
2010 2000 1990 1980 1970 1960 1950 1940
1250 290 380 650 35 35 35 35
Median Home Value Priced In Ounces of Gold
2010 2000 1990 1980 1970 1960 1950 1940
177 412 208 72 485 340 210 83
bApprox Price of Silver
2010 2000 1990 1980 1970 1960 1950 1940
$23 5 4 16.39 1.63 .91 .80 .35
Median Home Value Priced In Ounces of Silver
2010 2000 1990 1980 1970 1960 1950 1940
9608 23920 19775 2880 10429 13076 9192 8394
Saturday, December 17, 2011
50 Reasons to Prove the US is Numbero Uno
http://www.zerohedge.com/news/50-economic-numbers-about-us-are-almost-too-crazy-believe
The Economic Collapse Blog does a terrific job of periodically putting together a compilation of the scariest data points about the US economy. Today is one such day, and the list of 50 economic numbers presented is indeed, as the author puts it, "almost too crazy to believe"... Almost. As noted: "At this time of the year, a lot of families get together, and in most homes the conversation usually gets around to politics at some point. Hopefully many of you will use the list below as a tool to help you share the reality of the U.S. economic crisis with your family and friends. If we all work together, hopefully we can get millions of people to wake up and realize that "business as usual" will result in a national economic apocalypse." Or, far more likely, 99% of the population can continue watching Dancing with the Stars, as what little wealth remains is terminally transferred to those who are paying attention right below everyone's eyes.
From the Ecopnomic Collapse Blog:
The Economic Collapse Blog does a terrific job of periodically putting together a compilation of the scariest data points about the US economy. Today is one such day, and the list of 50 economic numbers presented is indeed, as the author puts it, "almost too crazy to believe"... Almost. As noted: "At this time of the year, a lot of families get together, and in most homes the conversation usually gets around to politics at some point. Hopefully many of you will use the list below as a tool to help you share the reality of the U.S. economic crisis with your family and friends. If we all work together, hopefully we can get millions of people to wake up and realize that "business as usual" will result in a national economic apocalypse." Or, far more likely, 99% of the population can continue watching Dancing with the Stars, as what little wealth remains is terminally transferred to those who are paying attention right below everyone's eyes.
From the Ecopnomic Collapse Blog:
The following are 50 economic numbers from 2011 that are almost too crazy to believe....As for the culprit, there is no surprise here - all central planning, all the time.
#1 A staggering 48 percent of all Americans are either considered to be "low income" or are living in poverty.
#2 Approximately 57 percent of all children in the United States are living in homes that are either considered to be "low income" or impoverished.
#3 If the number of Americans that "wanted jobs" was the same today as it was back in 2007, the "official" unemployment rate put out by the U.S. government would be up to 11 percent.
#4 The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.
#5 One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.
#6 There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.
#7 Since December 2007, median household income in the United States has declined by a total of 6.8% once you account for inflation.
#8 According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million.
#9 A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.
#10 According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
#11 Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs.
#12 Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. In July, only 81.2 percent of men in that age group had a job.
#13 One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
#14 The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.
#15 According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.
#16 As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all U.S. adults were married.
#17 The U.S. Postal Service has lost more than 5 billion dollars over the past year.
#18 In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.
#19 Nevada has had the highest foreclosure rate in the nation for 59 months in a row.
#20 If you can believe it, the median price of a home in Detroit is now just $6000.
#21 According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant. That figure is 63 percent larger than it was just ten years ago.
#22 New home construction in the United States is on pace to set a brand new all-time record low in 2011.
#23 As I have written about previously, 19 percent of all American men between the ages of 25 and 34 are now living with their parents.
#24 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
#25 According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980. Today they account for approximately 16.3%.
#26 One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
#27 If you can believe it, one out of every seven Americans has at least 10 credit cards.
#28 The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
#29 It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.
#30 The retirement crisis in the United States just continues to get worse. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
#31 Today, one out of every six elderly Americans lives below the federal poverty line.
#32 According to a study that was just released, CEO pay at America's biggest companies rose by 36.5% in just one recent 12 month period.
#33 Today, the "too big to fail" banks are larger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.
#34 The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
#35 According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.
#36 If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.
#37 A higher percentage of Americans is living in extreme poverty (6.7%) than has ever been measured before.
#38 Child homelessness in the United States is now 33 percent higher than it was back in 2007.
#39 Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
#40 Sadly, child poverty is absolutely exploding all over America. According to the National Center for Children in Poverty, 36.4% of all children that live in Philadelphia are living in poverty, 40.1% of all children that live in Atlanta are living in poverty, 52.6% of all children that live in Cleveland are living in poverty and 53.6% of all children that live in Detroit are living in poverty.
#41 Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
#42 In 1980, government transfer payments accounted for just 11.7% of all income. Today, government transfer payments account for more than 18 percent of all income.
#43 A staggering 48.5% of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30 percent.
#44 Right now, spending by the federal government accounts for about 24 percent of GDP. Back in 2001, it accounted for just 18 percent.
#45 For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars. That was the third year in a row that our budget deficit has topped one trillion dollars.
#46 If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
#47 Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars. When Barack Obama first took office the national debt was just 10.6 trillion dollars.
#48 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
#49 The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.
#50 During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.
Of course the heart of our economic problems is the Federal Reserve. The Federal Reserve is a perpetual debt machine, it has almost completely destroyed the value of the U.S. dollar and it has an absolutely nightmarish track record of incompetence. If the Federal Reserve system had never been created, the U.S. economy would be in far better shape. The federal government needs to shut down the Federal Reserve and start issuing currency that is not debt-based. That would be a very significant step toward restoring prosperity to America.Indeed it will - in it America will pick yet another president that it so rightfully deserves.
During 2011 we made a lot of progress in educating the American people about our economic problems, but we still have a long way to go.
Hopefully next year more Americans than ever will wake up, because 2012 is going to represent a huge turning point for this country.
Friday, November 18, 2011
Investment Guru Of The Year
Investment guru of the year, Whitney Tilson:
http://www.tilsonfunds.com/
"Mr. Tilson co-authored the book, More Mortgage Meltdown: 6 Ways to Profit in These Bad Times (published in May 2009), has written for Forbes, the Financial Times, Kiplinger's, the Motley Fool and TheStreet.com, was one of the authors of Poor Charlie's Almanack, the definitive book on Berkshire Hathaway Vice Chairman Charlie Munger. He is a CNBC Contributor, was featured in a 60 Minutes segment in December 2008 about the housing crisis that won an Emmy, was one of five investors included in SmartMoney's 2006 Power 30, was named by Institutional Investor in 2007 as one of 20 Rising Stars, has appeared dozens times on CNBC, Bloomberg TV and Fox Business Network, was on the cover of the July 2007 Kiplinger's, has been profiled by the Wall Street Journal and the Washington Post, and has spoken widely on value investing and behavioral finance. He served for two years on the Board of Directors of Cutter & Buck, which designs and markets upscale sportswear, until the company was sold in early 2007."
Too bad Mr. Tilson is getting his ass kicked, down 24.5% YTD even after a good October....http://www.
Our fund rose 7.0% in October vs. 10.9% for the S&P 500, 9.7% for the Dow and 11.2% for the Nasdaq. Year to date, it’s down 24.5% vs. +1.3% for the S&P 500, 5.5% for the Dow and 1.9% for the Nasdaq.
That's even worse than Warren Buffet, who's flagship Berkshire-Hathaway fund is down 6% YTD:
http://bigcharts.marketwatch.
So if you follow or invest with genius book, magazine, and CNBC commentators like Mr. Tilson, you too could be getting your ass kicked. Or, you could have just followed the trend and bought gold, which even with a $45 sell off yesterday is still up 22% YTD. But of course, everybody knows gold is in a bubble. Pay no attention to who is making money and who isn't. What the hell do I know, I've never been on CNBC as an expert.
YTD Scoreboard:
Whitney Tilson -24.5%
Warren Buffet -6%
S&P 500 1.3%
DOW 5.5%
Nasdaq 1.9%
Gold 22%
To be fair, Mr. Tilson's hedge fund is up 215% over the last 11 years. Too bad the shiny metal is up 600%, not even close. (My first gold purchase 5 years ago at $565/ounce has more than tripled). Isn't it funny how the people who were right and continue to be right in their investing, like Ron Paul, and Peter Schiff, are continually derided in the media? My friend Kevin was loading the wagon when gold was at the bottom, as was Ron Paul and Peter Schiff. I still challenge anybody to find any investor on the planet who has outperformed Ron Paul's portfolio over the last decade. There are others like Adam Hamilton who called the gold bear bottom within about a month of it happening, yet remain virtually anonymous. When was the last time you saw any of these people on CNBC? Hmmm....I wonder why? Why wouldn't they put on the winners? I will leave that for you to decide.
BTW, none of the people I have mentioned who have bought gold and silver are selling. We continue to buy from the few nattering nabobs of negativity who are going through their dressers and scrapping what little they can find. The run up in price over the last decade has happened with virtually no interest from the public, who remain on the sidelines. And what are the banksters doing about it?
http://online.wsj.com/article/
LONDON—Total central-bank gold purchases in the third quarter more than doubled from the second quarter and were almost seven times higher than a year earlier as countries continued to diversify reserves, according to a World Gold Council report.
"At 148.4 metric tons, gold buying among central banks was at the highest since the sector became a net buyer of the precious metal in the second quarter of 2009, according to the quarterly report. "Central banks and other official institutions, by comparison, had bought 66.5 tons of gold in the second quarter and 22.6 tons in the third quarter of 2010."
These institutions buy gold by the metric tonne. They aren't pikers like me who only buy tiny ounces. Why don't they want to hold their paper? I thought "cash was king."
Or, you could follow Tilson, Buffet, buy the S&P, or just hold on to your paper and get next to nothing in interest. Move along, there is nothing to see here. Gold is in a bubble, sell it all.
http://www.tilsonfunds.com/
"Mr. Tilson co-authored the book, More Mortgage Meltdown: 6 Ways to Profit in These Bad Times (published in May 2009), has written for Forbes, the Financial Times, Kiplinger's, the Motley Fool and TheStreet.com, was one of the authors of Poor Charlie's Almanack, the definitive book on Berkshire Hathaway Vice Chairman Charlie Munger. He is a CNBC Contributor, was featured in a 60 Minutes segment in December 2008 about the housing crisis that won an Emmy, was one of five investors included in SmartMoney's 2006 Power 30, was named by Institutional Investor in 2007 as one of 20 Rising Stars, has appeared dozens times on CNBC, Bloomberg TV and Fox Business Network, was on the cover of the July 2007 Kiplinger's, has been profiled by the Wall Street Journal and the Washington Post, and has spoken widely on value investing and behavioral finance. He served for two years on the Board of Directors of Cutter & Buck, which designs and markets upscale sportswear, until the company was sold in early 2007."
Too bad Mr. Tilson is getting his ass kicked, down 24.5% YTD even after a good October....http://www.
Our fund rose 7.0% in October vs. 10.9% for the S&P 500, 9.7% for the Dow and 11.2% for the Nasdaq. Year to date, it’s down 24.5% vs. +1.3% for the S&P 500, 5.5% for the Dow and 1.9% for the Nasdaq.
That's even worse than Warren Buffet, who's flagship Berkshire-Hathaway fund is down 6% YTD:
http://bigcharts.marketwatch.
So if you follow or invest with genius book, magazine, and CNBC commentators like Mr. Tilson, you too could be getting your ass kicked. Or, you could have just followed the trend and bought gold, which even with a $45 sell off yesterday is still up 22% YTD. But of course, everybody knows gold is in a bubble. Pay no attention to who is making money and who isn't. What the hell do I know, I've never been on CNBC as an expert.
YTD Scoreboard:
Whitney Tilson -24.5%
Warren Buffet -6%
S&P 500 1.3%
DOW 5.5%
Nasdaq 1.9%
Gold 22%
To be fair, Mr. Tilson's hedge fund is up 215% over the last 11 years. Too bad the shiny metal is up 600%, not even close. (My first gold purchase 5 years ago at $565/ounce has more than tripled). Isn't it funny how the people who were right and continue to be right in their investing, like Ron Paul, and Peter Schiff, are continually derided in the media? My friend Kevin was loading the wagon when gold was at the bottom, as was Ron Paul and Peter Schiff. I still challenge anybody to find any investor on the planet who has outperformed Ron Paul's portfolio over the last decade. There are others like Adam Hamilton who called the gold bear bottom within about a month of it happening, yet remain virtually anonymous. When was the last time you saw any of these people on CNBC? Hmmm....I wonder why? Why wouldn't they put on the winners? I will leave that for you to decide.
BTW, none of the people I have mentioned who have bought gold and silver are selling. We continue to buy from the few nattering nabobs of negativity who are going through their dressers and scrapping what little they can find. The run up in price over the last decade has happened with virtually no interest from the public, who remain on the sidelines. And what are the banksters doing about it?
http://online.wsj.com/article/
LONDON—Total central-bank gold purchases in the third quarter more than doubled from the second quarter and were almost seven times higher than a year earlier as countries continued to diversify reserves, according to a World Gold Council report.
"At 148.4 metric tons, gold buying among central banks was at the highest since the sector became a net buyer of the precious metal in the second quarter of 2009, according to the quarterly report. "Central banks and other official institutions, by comparison, had bought 66.5 tons of gold in the second quarter and 22.6 tons in the third quarter of 2010."
These institutions buy gold by the metric tonne. They aren't pikers like me who only buy tiny ounces. Why don't they want to hold their paper? I thought "cash was king."
Or, you could follow Tilson, Buffet, buy the S&P, or just hold on to your paper and get next to nothing in interest. Move along, there is nothing to see here. Gold is in a bubble, sell it all.
Tuesday, November 8, 2011
Silver: The People's Money
I thought this was quite an interesting article so thought I should forward it along:
http://www.gold-eagle.com/editorials_08/nielson110711.html
In my writing a couple of themes occur with regularity: how "fractional-reserve banking" (with purely fiat currencies) is nothing less than serial stealing from the general population; and how gold and silver can protect people from this cycle of theft.
With respect to fractional-reserve banking, the theft is obvious. The bankers print up vast quantities of their paper currencies 'out of thin air', at no cost to themselves - but with the full benefit of that money. Thus their own "wealth" increases exponentially, and without the bankers earning a single penny of it. However, by diluting our currencies in this reckless manner they drive down the value of our money - reflected in higher prices (i.e. reduced purchasing power). We get poorer and poorer; they get richer and richer.
Given that we have a corporate propaganda machine which has spent more than forty years trying to disguise this serial stealing, it is no surprise that it often takes a long time for this reality to sink into peoples' minds. Sadly, even once people understand the stealing which is taking place, they often aren't able to piece together how precious metals are the "cure" for this chronic condition.
When I speak of precious metals being our salvation from the bankers' world of debauched paper, for the average person what I mean specifically is that silver is their primary protection from the banksters' stealing-via-dilution. In referring to silver as "the people's money" I am not saying anything new here. Rather I am simply reiterating one of the oldest economic truths of our species.
To understand this first requires understanding two more of the most ancient concepts of humanity. To begin with, people must know the answer to the question "what is money?". Once they have a clear understanding there, it becomes crystal-clear why gold and silver are the best "money" our species has ever known - and the only "good money" in existence today.
Next readers need to understand the historic price ratio between gold and silver, or in other words they need to understand the 5,000 year old price relationship between the Metal of the Sun (gold) and the Metal of the Moon (silver). This historic 15:1 ratio is absolutely reinforced by the fact that this is also the approximate relative proportions of gold and silver in the Earth's crust. Thus 15:1 is the "natural" price ratio between gold and silver, and over the long term gold and silver prices must revert to that ratio.
Given that 15:1 ratio (and the much greater, current ratio today), this leads to an obvious inference. Gold, by virtue of being less common and thus more valuable is the "money" of the wealthy and governments. Conversely, by virtue of being more plentiful (but still "precious") silver has always been the Money of the People.
Once these preliminary concepts are understood, readers should be ready to absorb how and why silver can protect the ordinary person from the serial stealing of the bankers. Remembering how the bankers "steal" by diluting the paper (i.e. fiat currencies) we are holding, the obvious solution to that problem is to avoid holding the bankers' paper.
If we take the fruits of our labours and convert it into silver as quickly as possible, then suddenly the bankers must do most of their stealing from the other paper-holders - not us. And if every ordinary person converted their wealth to silver as quickly as possible, soon the bankers (and the ultra-wealthy for whom the bankers "front") would have no one to steal from but each other.
People need to divorce their minds from the notion of "buying silver", and rather simply think of themselves as doing their "saving" with silver rather than with the banksters' ever more diluted paper. Indeed, the worst thing we can possibly do with our wealth is to deposit it in a bank - since that simply allows the banksters to ratchet-up their "leverage" even further (i.e. steal from us even faster).
Put another way, every dollar which ordinary people convert to silver (or gold) weakens the intensity/effects of this stealing-via-dilution. This also explains the extreme aversion which the bankers have to a "gold standard", and why they have disseminated millions of pieces of propaganda over recent decades attempting to portray a gold standard as either being archaic or simply "impractical".
A gold standard is "impractical" indeed if one is a banker because when it comes to the banksters' efforts to steal-via-dilution, a gold standard functions like an "economic straitjacket", preventing the banksters from conjuring any "money" out of thin air. With the absolute refusal of our corrupt and servile politicians to "regulate" these financial crime syndicates, a gold standard would impose fiscal/monetary discipline (and sanity) on both bankster and politician alike.
Lacking a gold standard and lacking any financial regulation of these multinational banks, as individuals we have been left with absolutely no recourse but to "insure" our wealth by converting it to silver. Holding silver will not/cannot "fix" our economies by itself. However, with the self-destructive greed of the banksters and the shameless corruption of our political leaders, the destruction of our economies is now inevitable - and we must protect ourselves individually, since we have been abandoned by our own governments.
As it has done for nearly a hundred years, the corporate media defines such behavior as "hoarding". Strangely, when we (collectively) hold several billion dollars of silver the propaganda machine calls this "hoarding", yet these same media talking-heads never mention the word "hoarding" when it comes to the $10's of trillions in paper wealth being hoarded by these ultra-wealthy (ultra-greedy) misers.
As I have demonstrated in numerous previous commentaries, it is the "hollowing out" of our economies through the hoarding of all these $trillions which is one of the primary causes of our imminent economic collapse. In other words, it was bad enough to have the ultra-wealthy steal $trillions of our wealth, but they have compounded that economic harm by refusing to spend their ill-gotten hoards. If the "other 99%" greatly increase their "saving with silver" (or gold), this will also serve to slow down this hollowing-out process, and will at least help to delay our complete economic collapse.
Our economies remain in desperate need of a total overhaul of our entire monetary system, our tax systems, and our labour markets. Given the saturation level of corruption in our governments, it seems likely that most Western nations must also have radical reforms in their political systems as well.
Holding silver solves none of those other problems. At best, it will "buy us the time" to actually fix our broken economies (and broken political systems). At worst, it will make it a little easier to rebuild our societies from the economic "rubble" left behind by the banksters and their political servants.
Jeff Nielson
www.bullionbullscanada.com
http://www.gold-eagle.com/editorials_08/nielson110711.html
Jeff Nielson
7 November 2011
7 November 2011
With respect to fractional-reserve banking, the theft is obvious. The bankers print up vast quantities of their paper currencies 'out of thin air', at no cost to themselves - but with the full benefit of that money. Thus their own "wealth" increases exponentially, and without the bankers earning a single penny of it. However, by diluting our currencies in this reckless manner they drive down the value of our money - reflected in higher prices (i.e. reduced purchasing power). We get poorer and poorer; they get richer and richer.
Given that we have a corporate propaganda machine which has spent more than forty years trying to disguise this serial stealing, it is no surprise that it often takes a long time for this reality to sink into peoples' minds. Sadly, even once people understand the stealing which is taking place, they often aren't able to piece together how precious metals are the "cure" for this chronic condition.
When I speak of precious metals being our salvation from the bankers' world of debauched paper, for the average person what I mean specifically is that silver is their primary protection from the banksters' stealing-via-dilution. In referring to silver as "the people's money" I am not saying anything new here. Rather I am simply reiterating one of the oldest economic truths of our species.
To understand this first requires understanding two more of the most ancient concepts of humanity. To begin with, people must know the answer to the question "what is money?". Once they have a clear understanding there, it becomes crystal-clear why gold and silver are the best "money" our species has ever known - and the only "good money" in existence today.
Next readers need to understand the historic price ratio between gold and silver, or in other words they need to understand the 5,000 year old price relationship between the Metal of the Sun (gold) and the Metal of the Moon (silver). This historic 15:1 ratio is absolutely reinforced by the fact that this is also the approximate relative proportions of gold and silver in the Earth's crust. Thus 15:1 is the "natural" price ratio between gold and silver, and over the long term gold and silver prices must revert to that ratio.
Given that 15:1 ratio (and the much greater, current ratio today), this leads to an obvious inference. Gold, by virtue of being less common and thus more valuable is the "money" of the wealthy and governments. Conversely, by virtue of being more plentiful (but still "precious") silver has always been the Money of the People.
Once these preliminary concepts are understood, readers should be ready to absorb how and why silver can protect the ordinary person from the serial stealing of the bankers. Remembering how the bankers "steal" by diluting the paper (i.e. fiat currencies) we are holding, the obvious solution to that problem is to avoid holding the bankers' paper.
If we take the fruits of our labours and convert it into silver as quickly as possible, then suddenly the bankers must do most of their stealing from the other paper-holders - not us. And if every ordinary person converted their wealth to silver as quickly as possible, soon the bankers (and the ultra-wealthy for whom the bankers "front") would have no one to steal from but each other.
People need to divorce their minds from the notion of "buying silver", and rather simply think of themselves as doing their "saving" with silver rather than with the banksters' ever more diluted paper. Indeed, the worst thing we can possibly do with our wealth is to deposit it in a bank - since that simply allows the banksters to ratchet-up their "leverage" even further (i.e. steal from us even faster).
Put another way, every dollar which ordinary people convert to silver (or gold) weakens the intensity/effects of this stealing-via-dilution. This also explains the extreme aversion which the bankers have to a "gold standard", and why they have disseminated millions of pieces of propaganda over recent decades attempting to portray a gold standard as either being archaic or simply "impractical".
A gold standard is "impractical" indeed if one is a banker because when it comes to the banksters' efforts to steal-via-dilution, a gold standard functions like an "economic straitjacket", preventing the banksters from conjuring any "money" out of thin air. With the absolute refusal of our corrupt and servile politicians to "regulate" these financial crime syndicates, a gold standard would impose fiscal/monetary discipline (and sanity) on both bankster and politician alike.
Lacking a gold standard and lacking any financial regulation of these multinational banks, as individuals we have been left with absolutely no recourse but to "insure" our wealth by converting it to silver. Holding silver will not/cannot "fix" our economies by itself. However, with the self-destructive greed of the banksters and the shameless corruption of our political leaders, the destruction of our economies is now inevitable - and we must protect ourselves individually, since we have been abandoned by our own governments.
As it has done for nearly a hundred years, the corporate media defines such behavior as "hoarding". Strangely, when we (collectively) hold several billion dollars of silver the propaganda machine calls this "hoarding", yet these same media talking-heads never mention the word "hoarding" when it comes to the $10's of trillions in paper wealth being hoarded by these ultra-wealthy (ultra-greedy) misers.
As I have demonstrated in numerous previous commentaries, it is the "hollowing out" of our economies through the hoarding of all these $trillions which is one of the primary causes of our imminent economic collapse. In other words, it was bad enough to have the ultra-wealthy steal $trillions of our wealth, but they have compounded that economic harm by refusing to spend their ill-gotten hoards. If the "other 99%" greatly increase their "saving with silver" (or gold), this will also serve to slow down this hollowing-out process, and will at least help to delay our complete economic collapse.
Our economies remain in desperate need of a total overhaul of our entire monetary system, our tax systems, and our labour markets. Given the saturation level of corruption in our governments, it seems likely that most Western nations must also have radical reforms in their political systems as well.
Holding silver solves none of those other problems. At best, it will "buy us the time" to actually fix our broken economies (and broken political systems). At worst, it will make it a little easier to rebuild our societies from the economic "rubble" left behind by the banksters and their political servants.
Jeff Nielson
www.bullionbullscanada.com
Saturday, November 5, 2011
The Gold Bubble Pops Yet Again
Big picture. 10-year chart of gold.
![gold Technical chart [Kitco Inc.]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_uPy9IEEf94cHtU_UGq7ivf86r1J0vzTWQgU4h0CIknlMearyZPpwmV_xsUv8SsQt3KBKWFvGaIUdMpDz9Ipx2JD_XC7pfq9mwZZJnL8Q=s0-d)
Green line is simple 200 day moving average. Buy on that line for that last 10 years at any point for lowest risk entry points. This is such a beautiful chart for studying primary bull market psychology.
First 4 years of this 10 year chart were a slow grind, from $250 area to $425. Don't forget, for the previous 20 years gold went from $850 to $250. Any gains here are long and hard because only the contrarians were piling in, being happy with the fact that they would most likely have to wait 17-20 years for the payday. But paydays of these kinds are worth the wait because of enormous payoffs at the end. People who bought in this range are already up 4x-6x and are not selling.
Dec. 05 to May of 06, gold shoots from $450 to $720. Naysayers were saying gold had tripled, blow off top, the bubble has burst, let's flip houses. The absolute peak of the housing market, by the way, was about 10-06. This is when I bought at $565. My only question now is why didn't I buy more.
So it grinds along agonizingly for a year and a half doing nothing but sideways, and I bought more at $680. Mind you $680 was near the highest gold had been for the last 27 years. It was a bubble. My only question again now is why didn't I buy more.
So the naysayers were wrong once again as the bubble burst in reverse and went from $680 to $1000 in a few short months. Oh, all time highs, blow off top, bubble soon to burst. Yet look at the 200 day moving average. As Forest Gump said, "Keep your eye on the ball."
So, OH MY GOD, gold shoots down for a minute to the $850 area, whoa, 15% pull back, end times and Armageddon, then Wall St. crashes and gold comes back and tests the $750 area again for a minute. With the only serious but short breach of the 200 day moving average, gold still ends the year up 5% while the DOW gets ripped in half.
Since the last bubble has burst, gold has rebounded 133% in 3 years, and just look at the 200 day moving average. As long as the trend continues up, that is the true gauge of whether gold is cheap in dollars or not. Notice the angle of ascent of the 200-day moving average is increasing but is far from hyperbolic. Volatility is increasing as is the rate of ascent. This is big time classic bull behavior, in my humble opinion.
These major bulls, for psychological reasons, often run for 17 to 20 years. If they truly run in the 3 phases of 1. Contrarian, 2. Institutional, 3. Public, the question is where are we at now?
The price of gold has gone from $250 to $1900 and now $1740 per ounce with next to zero public involvement. The public has been selling their gold, not buying it. Just ask yourself how many individuals you know who own gold or silver. I would guess the first phase of contrarians were buying from 2001 to 2008. You could argue that the March, 2009 purchase by India of 200 metric tonnes of gold from the IMF at $1050/ounce signified the first serious involvement of central banks net buying of gold for the first time in 20 years. Now the list of central banks buying gold is growing all the time. Bet against the banksters if you think the public is outsmarting them. I won't try to stop you.
Check out the latest chart from the St. Louis Fed Bank of the Adjusted Monetary Supply. Is it any wonder that gold and everything else is going up when the money supply is exploding?
The rise in volatility and price would suggest to me that the smart money has been getting in for awhile now, 2 or 3 years. From my trading experience I can tell you there is one thing traders need like blood to a vampire, and that is volatility. Volatility has certainly increased in the last 3 years. You can't make any money, even if you are right, if a stock or commodity isn't moving one way or the other. Increased volatility draws traders like a virgin's blood draws Count Dracula.
So by the looks of the chart I would say we are likely in the 2nd phase of smart money/institutional involvement and will be there for some time yet to come. There will be years of nominal price inflation of gold and everything else except real estate. The real estate trend of down has not changed yet.
Yet the public remains on the sidelines, convinced they missed the move because gold is up 6x from the bottom. Do you know how many times I have heard this argument? Psychologically, gold struggled going over $500 because it was a double. When it broke through $500 it hit $720 in no time. Then sideways for a year and a half, then it had to psychologically break through the old high of $850. Then $1000. Now it is in uncharted territory. Just 2 weeks ago I overheard a conversation where the consensus was gold was cooked and on the way to $1200 if not $800. The public is yet to get interested. Why should they? The bubble has popped, no? But of course the public always gets investing right, we know that from history.
And get this, the whole thing is an illusion. Gold has not increased in value at all. Gold is still gold. What has happened is the devaluation of the dollar, period. It takes more of the devalued money to buy the same amount of gold, period, end of story. And everybody thinks gold is in a bubble. This is the obvious mathematical and physical answer the to the problem.....gold nor anything else is in a bubble right now except US Treasury Bonds, and I guess as well you could say the remainder of the paper currencies of the world, but the US Treasury Bonds take the proverbial cake. Gold is simply the canary in the mine. The jig comes closer to being up day by day, and every day of our lives has seen lost purchasing power of our money. They are printing money, and more of it all the time. Gold is a distraction, nothing more. But you ain't seen nothing yet. Wait until the public gets interested.
The public's decision on gold must be emotional and based on protecting their ego because they missed out on the obvious best investment of the last decade. The logical conclusion from the chart and all the evidence has been that gold has been and remains in a massive bull market.
Ask yourself, at the peak of the housing bubble, were people afraid of the price of houses and talking about their values getting ripped in half? At the peak of the bubble, was the public calling it a bubble? In the mean time I am buying more gold. I have seen this movie before. The trend remains and the 200-day moving average is intact. Could it go sideways for awhile? Of course. What will happen tomorrow or next week? I am no psychic. But a trend remains a trend until proven otherwise. The last 10 years is proof of that obvious truism. (Edwards & Magee, Technical Anaylisis).
But to tell you the truth, it's not the gold I crave so much as it is I know congress and the Fed are destroying my paper and I can't stand to hold it. That is what will drive the public when the day comes. Nobody want's to be a bag holder.
Green line is simple 200 day moving average. Buy on that line for that last 10 years at any point for lowest risk entry points. This is such a beautiful chart for studying primary bull market psychology.
First 4 years of this 10 year chart were a slow grind, from $250 area to $425. Don't forget, for the previous 20 years gold went from $850 to $250. Any gains here are long and hard because only the contrarians were piling in, being happy with the fact that they would most likely have to wait 17-20 years for the payday. But paydays of these kinds are worth the wait because of enormous payoffs at the end. People who bought in this range are already up 4x-6x and are not selling.
Dec. 05 to May of 06, gold shoots from $450 to $720. Naysayers were saying gold had tripled, blow off top, the bubble has burst, let's flip houses. The absolute peak of the housing market, by the way, was about 10-06. This is when I bought at $565. My only question now is why didn't I buy more.
So it grinds along agonizingly for a year and a half doing nothing but sideways, and I bought more at $680. Mind you $680 was near the highest gold had been for the last 27 years. It was a bubble. My only question again now is why didn't I buy more.
So the naysayers were wrong once again as the bubble burst in reverse and went from $680 to $1000 in a few short months. Oh, all time highs, blow off top, bubble soon to burst. Yet look at the 200 day moving average. As Forest Gump said, "Keep your eye on the ball."
So, OH MY GOD, gold shoots down for a minute to the $850 area, whoa, 15% pull back, end times and Armageddon, then Wall St. crashes and gold comes back and tests the $750 area again for a minute. With the only serious but short breach of the 200 day moving average, gold still ends the year up 5% while the DOW gets ripped in half.
Since the last bubble has burst, gold has rebounded 133% in 3 years, and just look at the 200 day moving average. As long as the trend continues up, that is the true gauge of whether gold is cheap in dollars or not. Notice the angle of ascent of the 200-day moving average is increasing but is far from hyperbolic. Volatility is increasing as is the rate of ascent. This is big time classic bull behavior, in my humble opinion.
These major bulls, for psychological reasons, often run for 17 to 20 years. If they truly run in the 3 phases of 1. Contrarian, 2. Institutional, 3. Public, the question is where are we at now?
The price of gold has gone from $250 to $1900 and now $1740 per ounce with next to zero public involvement. The public has been selling their gold, not buying it. Just ask yourself how many individuals you know who own gold or silver. I would guess the first phase of contrarians were buying from 2001 to 2008. You could argue that the March, 2009 purchase by India of 200 metric tonnes of gold from the IMF at $1050/ounce signified the first serious involvement of central banks net buying of gold for the first time in 20 years. Now the list of central banks buying gold is growing all the time. Bet against the banksters if you think the public is outsmarting them. I won't try to stop you.
Check out the latest chart from the St. Louis Fed Bank of the Adjusted Monetary Supply. Is it any wonder that gold and everything else is going up when the money supply is exploding?
The rise in volatility and price would suggest to me that the smart money has been getting in for awhile now, 2 or 3 years. From my trading experience I can tell you there is one thing traders need like blood to a vampire, and that is volatility. Volatility has certainly increased in the last 3 years. You can't make any money, even if you are right, if a stock or commodity isn't moving one way or the other. Increased volatility draws traders like a virgin's blood draws Count Dracula.
So by the looks of the chart I would say we are likely in the 2nd phase of smart money/institutional involvement and will be there for some time yet to come. There will be years of nominal price inflation of gold and everything else except real estate. The real estate trend of down has not changed yet.
Yet the public remains on the sidelines, convinced they missed the move because gold is up 6x from the bottom. Do you know how many times I have heard this argument? Psychologically, gold struggled going over $500 because it was a double. When it broke through $500 it hit $720 in no time. Then sideways for a year and a half, then it had to psychologically break through the old high of $850. Then $1000. Now it is in uncharted territory. Just 2 weeks ago I overheard a conversation where the consensus was gold was cooked and on the way to $1200 if not $800. The public is yet to get interested. Why should they? The bubble has popped, no? But of course the public always gets investing right, we know that from history.
And get this, the whole thing is an illusion. Gold has not increased in value at all. Gold is still gold. What has happened is the devaluation of the dollar, period. It takes more of the devalued money to buy the same amount of gold, period, end of story. And everybody thinks gold is in a bubble. This is the obvious mathematical and physical answer the to the problem.....gold nor anything else is in a bubble right now except US Treasury Bonds, and I guess as well you could say the remainder of the paper currencies of the world, but the US Treasury Bonds take the proverbial cake. Gold is simply the canary in the mine. The jig comes closer to being up day by day, and every day of our lives has seen lost purchasing power of our money. They are printing money, and more of it all the time. Gold is a distraction, nothing more. But you ain't seen nothing yet. Wait until the public gets interested.
The public's decision on gold must be emotional and based on protecting their ego because they missed out on the obvious best investment of the last decade. The logical conclusion from the chart and all the evidence has been that gold has been and remains in a massive bull market.
Ask yourself, at the peak of the housing bubble, were people afraid of the price of houses and talking about their values getting ripped in half? At the peak of the bubble, was the public calling it a bubble? In the mean time I am buying more gold. I have seen this movie before. The trend remains and the 200-day moving average is intact. Could it go sideways for awhile? Of course. What will happen tomorrow or next week? I am no psychic. But a trend remains a trend until proven otherwise. The last 10 years is proof of that obvious truism. (Edwards & Magee, Technical Anaylisis).
But to tell you the truth, it's not the gold I crave so much as it is I know congress and the Fed are destroying my paper and I can't stand to hold it. That is what will drive the public when the day comes. Nobody want's to be a bag holder.
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