World history is replete with tales of rulers going bankrupt over and over again. They always solve the problem with inflation meaning the price of gold rises. The question is not if, but how soon?
Posted on 09/08/2009 10:15:48 AM PDT by FromLori
Will the world run to the safety of gold as a form of international reserve currency, before the U.S. can force SDRs, its chosen alternative to the dollar, on the world? It might just be happening now.
A friend sends along this comment from Adrian Douglas: I have recently described what is going on in the physical market to be the equivalent of a "run on the Bank of the Gold Cartel." There are many factors that are leading to that conclusion and here are just a few: -- China is a confirmed large buyer of gold, along with Russia.
-- Germany has apparently asked for its sovereign gold stored in New York to be returned.
-- Hong Kong is repatriating its sovereign gold from London and will be the repository for gold to back the Shanghai Futures Exchange.
-- Greenlight Capital sold $500 million of the GLD exchange-traded fund and bought physical bullion.-- The European Central Bank gold sales have dried up to almost nothing.
-- AnglogoldAshanti has reduced its hedges to less than one year of production.
-- Central banks are net buyers of gold for the first time in more than 20 years.
-- China has declared its right to default on commodity derivatives.
-- China is encouraging its citizens to buy gold and silver.
-- The contango on silver and gold has almost disappeared.
-- Gold and silver movements from the COMEX warehouses are inconsistent with the delivery notices.
-- Mine supply of gold continues to contract
I have bought gold stocks, but I've also bought Rugers, Colts, Berettas, Bursas and other 'stocks' that may come in handy someday.
The lessons of New Orleans don't just apply to hurricanes.
How legitimate is this source?
“I have bought gold stocks”
Have you noticed the movement from stocks to physical gold? Pretty significant.
I consider him to be A 1
Gold just topped $1000
http://www.marketwatch.com/story/gold-tops-1000-an-ounce-to-hit-18-month-high-2009-09-08
Gold bugs often hype stuff but most of this is true.
Anyone here remember and did you live through Jimmy Carter? Gold and inflation skyrocketed under Carter.
At least Carter was born in America and served in the Navy though he still is a stinking leftist. Hussein is worse. Oddly both are Islamists. Jimmy was really close with BCCI bank.
Question: what are the better “gold stocks?”
Tks.
I'm with you .. I've invested a chunk of my disposable income in Bersa, Glock, Beretta and Browning myself. I've also diversified my "precious" metals portfolio to include substantially more brass and copper jacketed lead.
Also Gold mutual funds are good. A lot of the gold funds own warrants in small mining companies. very very good when gold is rising but death when gold is falling. Gold funds get these warrants by buying either ipo's or most likely a private placement in an speculative company. Warrants are a sweetener to induce the potential buyer to buy.
However, I've invested in stocks like EVEP, VLCCF and especially (for a look towards India): TTM.
Well buying and holding anything tangible makes sense.
As with gold, most things are due to go up with inflation?
Are you old enough to remember the hay days of Carter?? That may be nothing compared to what we have in store.
Yes I am a grandmother I remember him too well!
http://bluelori.blogspot.com/2009/09/peter-schiff-on-china-dumping-dollar.html
tgldx
Yes. I’m considering the purchase of gold bullion...not coins.
What if China, India, and Japan announced 1 FOR 10, OR 20 Re-evaluation of their currency an started issueing gold currency? Where would that leave us?
I’m considering the purchase of gold bullion...not coins.
You can buy bars, but coins are generally preferred for their recognizability and difficulty to counterfeit.
I said....’not coins.’
World history is replete with tales of rulers going bankrupt over and over again. They always solve the problem with inflation meaning the price of gold rises. The question is not if, but how soon?
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