Posted on 02/18/2012 7:16:52 AM PST by appeal2
We sat down with Mickey Fulp and while there’s not a lot to be happy about, many markets have been going up since the first of the year. And as the old Wall Street Maxim says, So goes January, So goes the Year. And you have to take your profits while you can get them. But of course you always need to have a core holding of gold and silver. The rest is extra money that you’ve hopefully been able to grow during the course of a very tough couple of years. There’s absolutely no indication that anything has fundamentally improved of that any of the long standing, intractable problems have been solved, but Wall Street doesn’t seem very concerned about these issues. But you should be, because one day they’ll wake but it will be too late.
Copper’s been heading down a bit since January, seems the Chinese have been hoarding it. And perhaps the most surprising developments, the US approved two new nuclear power plants to be built in Georgia and the Germans are restarting several shut-in nukes. While nuclear power’s rebirth in the West has been greatly exaggerated, perhaps reality is now catching up. Uranium stocks haven’t had much of a move recently, but that could be changing.
Financial markets never cease to surprise us with their unpredictability, and 2012 is proving no different.
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“But of course you always need to have a core holding of gold and silver.”
Bullshit.
Why do you say that, because the dollar is so strong and stable and will retain its value better than PMs?
likely gold and silver are at their peaks.
this year, relative to the Euro — the US dollar is strong.
Next year if the pubbies come into power they will reverse loose fiscal and monetary policy which pushes down the dollar and pushes up gold and oil.
That’s put a damper on dollar bears.
The USA is pumping more oil. This country is on track to be energy independent in 10 years.
This development is as big as the first break of spindeltop in 1903 or the first arab oil embargo of 1973.
The first bow waves to be felt of this are coming into the dollar. Energy independent countries have hard currencies. See brazil and norway.
Gold and silver can easily fall back into a long term bear market. Pay attention to simple 200 day moving average. When current price is below it may stay below for a long time.
You’ve got to understand that gold and even more so silver are relatively small markets compared to global debt and equities. In the past 11 years, gold has increased every one of them. Silver 9 out of 11. People have been saying all along that they’re bubbles and they’ve been afforded little or no respect by the financial press.
During this time money creation and debt creation have gone geometric! Think that’s a coincidence. During the past decade when debt was going up up and away, what party controlled the congress and white house? Since the dims took over, the trend has gone parabolic for sure, but both parties got us into this jam over the course of 100 years. And who was elected to the house to bring spending and the deficit under control? And how has that worked out?
There is no hope that the situation will ever be brought under control. We’ve only been able to get away with it because the USD is the reserve currency and has to be used to purchase oil and commodities. But it will fail like every currency system before and I would venture to say after it. There is no other way. The debts cannot be paid back, therefore they will either be defaulted away—the better choice, or inflated away—which destroys the core of society.
When you see the central banks of dozens of countries stocking up on the barbarous relic of gold, you know they know something we don’t. When you see the Chicoms stocking up all over the place, don’t you wonder why?
Inflation is dramatically understated. So is unemployment. The economy is withering away. There is no growth, but contraction when you factor in the true rate of inflation and rising unemployment. So where do you think your money is safest?
>> Why do you say that, because the dollar is so strong and stable and will retain its value better than PMs?
No, I call BS because there’s no “Of course...” about it.
PMs are but one way to hedge inflation — and inflation is only one possible outcome of our current economic upheaval.
If the author wants to gamble by going heavy long on PMs, he can knock himself out — but don’t ask me to swallow his fantasy that “of course” that’s the best core holding. It’s only *his* opinion.
>> In the past 11 years, gold has increased every one of them. Silver 9 out of 11. People have been saying all along that they’re bubbles
If I understand you correctly, you’re saying that a decade of increase somehow translates to “not a bubble”? Sorry, doesn’t follow.
Among other reasons. All commodities have gone up, some much more than gold and silver. Can you compare the price behavior in the metals to the internet stock boom, the real estate bubble, 1929, railroad stocks, etc. There’s not much display of bubble like behavior in these prices. There’s no clamoring by the general public to get into the game and showing the fear of missing out on this incredible stock move.
Yes interest has been slowly building, however, there is no gold rush. So explain to me where’s the bubble, cause I’m not seeing it here. Bull market for the past decade for sure, bubble no.
Where are you getting this information from?
The dollar is strong compared to the Euro. Great. Two planes are falling out of the sky. One is crashing to the earth faster than the other. Those in the other plane look out and see the first plane crashing and pretend their safe because, compared to the other plane that is falling, they’re still flying. There is a glut of gasoline yet look how expensive it. That is because the dollar has lost so much of its value in the past 3-4 years. This is only going to get worse.
All of the fiat currencies based upon fractional-reserve banking and in countries that socialist and spending more on ‘entitlements’ (AKA vote-buying schemes) than they are taking in — all of those currencies are dying.
A true conservative might reverse some of the policies that are causing this but would not and likely could not enact enough to reverse what is happening. A RINO such as Robamney will not reverse any of this.
The left and the globalists will not allows us to become energy independent. The BRICs and the Middle East are already clamoring to drop the US Dollar as the world’s reserve currency. When they succeed in this, the cost of petroleum to US citizens will skyrocket.
The PMs have not peaked. There will be corrections, especially as China begins to offload some of their gold to pay their internal bills. That will cause the price to drop. But the PMs will always maintain their purchasing power. As they go up in price, like petroleum, that is a reflection of the fiat currencies losing their purchasing value.
Please let me know where you are getting your information from. I really want to check into your sources.
You’re calling “BS” on what? What I asked? Why do you think a question of mine was “BS?”
What are you doing to hedge against inflation?
Go back and follow the thread. I’m calling BS not on you, but on the “of course...” attitude of Lutz, the author of the article cited in the OP. You put a straw man argument on me and I refuted it.
As for my inflation hedge: dirt, oil, farm toys. The means of production and self-sufficient living.
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