The Actual Freaking Definition Of The Phrase 'No-Brainer' - Mogambo Guru Commentary

The Daily Reckoning ^ | 10/29/03 | Richard Daughty

[arete]

I only really have a passing interest in the subject

I didn't mean that in anyway as a slam at you. It only goes to show how good the government monetarists and fiat currency crowd as been at selling their ideas and maginalizing the Austrians. We're on our way to a one world currency and that means globalization and central planning as in one world government. Probably something that we all need to be thinking about.

Richard W.

[arete]

When the level of anger against the contrarian point of view reaches the level of righteous indignation, and those who used to at least be tolerant start to heap ridicule upon you, that's when you know a significant trend change cannot be that far off.

Denial of reality is reaching cult status. Blind faith in the "system" and confidence in flawed leaders and misguided policies must be maintained and defended at all costs.

Richard W.

[headsonpikes]

Confidence.

That's the key. Once trust is lost the game ends in disorder.

Of course, a form of 'suspension of disbelief' is necessary to even get the fiat game rolling!

Even if the paper pyramid can be stabilized again, temporarily, the price of gold is now inexorable in its movement upwards. Ten+ years of unnatural depression has killed the exploration/development industry - and the gold mining industry is very small-scale, compared to almost every prominent industry. Only in the last year or so has a flood of new cash come into the ex/dev companies, which are always cash-poor.

I don't think the 'system' will collapse, but I do think gold will drift up to the 450-600 range over the next few years. The astute investor/speculator can buy gold stocks leveraged to this move, and even collect dividends in some cases while waiting for 'the big move'. ;^)

Myself, I think a small(5-7 stocks) portfolio of Canadian junior golds should give many investors a 10-bagger over the next 3 years.

But I'm prejudiced. ;^)

[arete]

The government exercises complete and total control over the fiat currency. Not so with gold which is why they are doing their best to discredit it. You can't have people actually believing in, using and demanding real money -- not when you are part of a statist fascist state.

Richard W.

[donmeaker]

My grandfather turned 100,000 into 600,000 in gold a few years back.

The point of an investment is it works for you, supposedly gaining interest or dividends from people building greater productive capacity.

The point of speculation is it takes advantage of imperfections in the market mechanism. Speculation drives up the price, and speeds the development of greater productive capacity.

It is possible to do either correctly, or possible to do either incorrectly. If you think you are investing in productive capacity, but the company finance director runs off to Brazil with the assets, well, that was an investment, but not a good one.

I have a friend who is VERY good at math. He found an error in the way the race tract calculated the odds on a trifecta. For about 6 months he was able to place a series of bets at a particular time window, with a significantly higher chance of winning, using a calculator to correctly figure the odds, and then subtract the correct odds from the board. That was a useful thing to do, and after 6 months, the board figured it out. Ah well, all good things come to an end. What he did was not investing, but it wasn't gambling either, because he knew what he was doing.

I hope that you know what you are doing too, and I wish you well.