...and gold goes whoosh upwards. I wonder why?
Showing posts with label gold. Show all posts
Showing posts with label gold. Show all posts
Wednesday, April 27, 2011
Whoosh!
Isn't it interesting. Ben Bernanke does the unthinkable and holds a press conference...
...and gold goes whoosh upwards. I wonder why?
...and gold goes whoosh upwards. I wonder why?
Monday, May 24, 2010
Preparedness 101 - #3
A reader asked the following question:
What are your thoughts on buying gold? (From a source such as Goldline.) I've read that it can be confiscated by the federal gov't in the event of an emergency, and I'm not even sure how useful it would be in an emergency, but in the interest of preparedness, I thought I would ask. Any thoughts?
I'll have to preface this by pointing out that my husband and I are considered low-income, so doing something like buying gold is a nice fantasy for us but unlikely to ever happen.
I'll also add a codicil: I AM NOT A FINANCIAL EXPERT. If someone takes action based on my words and then loses a bunch of money, don't come whining to me that I ruined your life. If your responsibility to act in accordance with your own ethics and beliefs. (This disclaimer is known as "covering fanny.")
That said, here are my thoughts. If you have any significant amount of money in the bank, I wouldn't keep it there. We have three bank accounts (we have a home business so multiple bank accounts just seem to "happen") with three different banks, and all three banks are considered "vulnerable" or close to failing by Weiss Research. Since we live in a deeply rural location, we're somewhat forced to bank locally, so we just have to take our chances. But if we had any money to save, this would not engender us with confidence in the banking industry.
Additionally, inflation eats away at the value of any saved money. Therefore I'm of the belief that investment in hard assets - guns, gold, preparedness supplies, that kind of thing - is a wiser course of action.
When our daughters were babies, I remember noting that gold was $200 an ounce. That was ten or twelve years ago. Gold has ballooned to $1200/ounce. Sheesh, that would have been a super-dooper investment opportunity! Pity we were poor as church mice back then. (Um, still are. Oh well.)
But we've often discussed how we would buy gold, should the money be available.
I do NOT suggest you buy gold through an online source. I would say, arm yourself with cash. Park a couple blocks away. Walk into a reputable gold dealer. Buy gold krugerands or maple leafs. With cash. Don't give names or addresses or phone numbers. Be utterly and completely anonymous. If the gold dealer "needs" your contact info for whatever reason before completing the transaction, then you don't "need" to buy gold from him. Savvy?
In other words, the government cannot confiscate what it doesn't know you have.
Now if you don't have the cash to buy gold, I've heard silver is a good investment as well. Better, how about a bucket of beans? Rice? Oatmeal? Whatever the value of gold or silver, you can't eat it. That's why we've decided to take whatever surplus (ha) cash we have and invest in things like canning jars or a few extra bottles of shampoo.
Just my $0.02. Or $1200/ounce, depending on your point of view.
What are your thoughts on buying gold? (From a source such as Goldline.) I've read that it can be confiscated by the federal gov't in the event of an emergency, and I'm not even sure how useful it would be in an emergency, but in the interest of preparedness, I thought I would ask. Any thoughts?
I'll have to preface this by pointing out that my husband and I are considered low-income, so doing something like buying gold is a nice fantasy for us but unlikely to ever happen.
I'll also add a codicil: I AM NOT A FINANCIAL EXPERT. If someone takes action based on my words and then loses a bunch of money, don't come whining to me that I ruined your life. If your responsibility to act in accordance with your own ethics and beliefs. (This disclaimer is known as "covering fanny.")
That said, here are my thoughts. If you have any significant amount of money in the bank, I wouldn't keep it there. We have three bank accounts (we have a home business so multiple bank accounts just seem to "happen") with three different banks, and all three banks are considered "vulnerable" or close to failing by Weiss Research. Since we live in a deeply rural location, we're somewhat forced to bank locally, so we just have to take our chances. But if we had any money to save, this would not engender us with confidence in the banking industry.
Additionally, inflation eats away at the value of any saved money. Therefore I'm of the belief that investment in hard assets - guns, gold, preparedness supplies, that kind of thing - is a wiser course of action.
When our daughters were babies, I remember noting that gold was $200 an ounce. That was ten or twelve years ago. Gold has ballooned to $1200/ounce. Sheesh, that would have been a super-dooper investment opportunity! Pity we were poor as church mice back then. (Um, still are. Oh well.)
But we've often discussed how we would buy gold, should the money be available.
I do NOT suggest you buy gold through an online source. I would say, arm yourself with cash. Park a couple blocks away. Walk into a reputable gold dealer. Buy gold krugerands or maple leafs. With cash. Don't give names or addresses or phone numbers. Be utterly and completely anonymous. If the gold dealer "needs" your contact info for whatever reason before completing the transaction, then you don't "need" to buy gold from him. Savvy?
In other words, the government cannot confiscate what it doesn't know you have.
Now if you don't have the cash to buy gold, I've heard silver is a good investment as well. Better, how about a bucket of beans? Rice? Oatmeal? Whatever the value of gold or silver, you can't eat it. That's why we've decided to take whatever surplus (ha) cash we have and invest in things like canning jars or a few extra bottles of shampoo.
Just my $0.02. Or $1200/ounce, depending on your point of view.
Sunday, October 18, 2009
Be afraid. Be very afraid.
This came in an email from an investment firm whose mailing list I joined. (Yeah right, like we have any money to invest...) I get "alerts" during the week via email. Sometimes they're scary.
______________________
Gold's proven ability to bust cleanly through the $1,035 level — and now the $1,050 level — confirms what I've been saying all along:
A coordinated international effort to replace the U.S. dollar as the world's dominant reserve currency is now well under way ... and gathering steam.
Consider the gathering forces that are now converging and pummeling the U.S. dollar in international markets ...
* The G-20 countries, now largely in control of the world's economic caretaking, are turning the U.S. into just one of many countries setting the rules for our future.
* Behind closed doors, Arab Gulf States are seriously considering replacing the dollar for pricing oil.
* The U.N. Commission of Experts on International Financial Reports is now recommending that the world ditch the dollar as its reserve currency and replace it with a basket of currencies.
* China's central bank governor Zhou Xiaochuan is calling for a new global reserve currency run by the International Monetary Fund (IMF).
* A host of leading and Nobel prize-winning economists — such as Robert Mundell, Joseph Stiglitz, George Soros and fund manager Jimmy Rogers — are making similar arguments and doing so with growing influence.
Make no mistake about it — the world's monetary system is on the verge of dramatically changing. And the chief reason behind it all is ...
Washington's Tower of Debts
The total amount of U.S. government debts and obligations is far greater than what most people realize.
Uncle Sam is saddled with ...
* An officially recognized national debt of $11.8 trillion, which will likely exceed $12 trillion sometime this month.
* Unfunded national obligations of $104 trillion!
* Another $9 trillion in cumulative deficits over the next ten years.
* Plus another trillion dollars for health care reform, no matter what bill finally makes it through Congress.
Grand total: $125.8 TRILLION of public debts!
All told, that means that each and every household in America is now indirectly responsible for more than 1 MILLION DOLLARS in government debts and obligations. And that assumes no new government spending, no new social programs, no new wars, no new economic disasters or bailouts. Worse, it assumes no new deficits in the meantime!
Put another way, even if the government could somehow pay off that debt at the rate of $100 million PER DAY, it would take 3,446 years before the total government debts and obligations are paid off.
Even if Washington were to pay off $1 billion per day, it would still take nearly 345 years to pay off those debts!
Patently unsustainable debts? Yes! Patently unpayable? You bet it is!
Of course, Washington will never default outright on its obligations. But it doesn't have to. By devaluing the dollar, Washington can effectively pay off its debts with a cheaper currency.
This is why the dollar is falling … and why savvy investors all over the world are beginning to lose confidence in Washington and our currency … and why it’s all leading to a massive renewed bull market in natural resources, especially gold.
Make no mistake about it: By doing nothing, your finances become a victim of a falling dollar — a currency whose purchasing power has already lost more than 36 percent of its value in the last decade … will lose a lot more purchasing power in the months ahead … and eventually lose its status as the world’s reserve currency, ultimately replaced by a new world currency.
______________________
Gold's proven ability to bust cleanly through the $1,035 level — and now the $1,050 level — confirms what I've been saying all along:
A coordinated international effort to replace the U.S. dollar as the world's dominant reserve currency is now well under way ... and gathering steam.
Consider the gathering forces that are now converging and pummeling the U.S. dollar in international markets ...
* The G-20 countries, now largely in control of the world's economic caretaking, are turning the U.S. into just one of many countries setting the rules for our future.
* Behind closed doors, Arab Gulf States are seriously considering replacing the dollar for pricing oil.
* The U.N. Commission of Experts on International Financial Reports is now recommending that the world ditch the dollar as its reserve currency and replace it with a basket of currencies.
* China's central bank governor Zhou Xiaochuan is calling for a new global reserve currency run by the International Monetary Fund (IMF).
* A host of leading and Nobel prize-winning economists — such as Robert Mundell, Joseph Stiglitz, George Soros and fund manager Jimmy Rogers — are making similar arguments and doing so with growing influence.
Make no mistake about it — the world's monetary system is on the verge of dramatically changing. And the chief reason behind it all is ...
Washington's Tower of Debts
The total amount of U.S. government debts and obligations is far greater than what most people realize.
Uncle Sam is saddled with ...
* An officially recognized national debt of $11.8 trillion, which will likely exceed $12 trillion sometime this month.
* Unfunded national obligations of $104 trillion!
* Another $9 trillion in cumulative deficits over the next ten years.
* Plus another trillion dollars for health care reform, no matter what bill finally makes it through Congress.
Grand total: $125.8 TRILLION of public debts!
All told, that means that each and every household in America is now indirectly responsible for more than 1 MILLION DOLLARS in government debts and obligations. And that assumes no new government spending, no new social programs, no new wars, no new economic disasters or bailouts. Worse, it assumes no new deficits in the meantime!
Put another way, even if the government could somehow pay off that debt at the rate of $100 million PER DAY, it would take 3,446 years before the total government debts and obligations are paid off.
Even if Washington were to pay off $1 billion per day, it would still take nearly 345 years to pay off those debts!
Patently unsustainable debts? Yes! Patently unpayable? You bet it is!
Of course, Washington will never default outright on its obligations. But it doesn't have to. By devaluing the dollar, Washington can effectively pay off its debts with a cheaper currency.
This is why the dollar is falling … and why savvy investors all over the world are beginning to lose confidence in Washington and our currency … and why it’s all leading to a massive renewed bull market in natural resources, especially gold.
Make no mistake about it: By doing nothing, your finances become a victim of a falling dollar — a currency whose purchasing power has already lost more than 36 percent of its value in the last decade … will lose a lot more purchasing power in the months ahead … and eventually lose its status as the world’s reserve currency, ultimately replaced by a new world currency.
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