The original title of this article is "A toast to gold power", but I think it is a rather good article for explaining the role of gold in the recent economical history.
If you thought gold is too difficult to understand, this article is an excellent entry point for beginners.
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I know many of you thought I was chicken little and afraid of sky falling on my head. I can tell you that you are right. I am scared to death. You can read this article if you want to know why.
http://www.321gold.com/editorials/willie/willie041608.html
Liars, Wall Street & Your Gold
Jim Willie CB
Apr 16, 2008
Good luck to you all.
The chart below tells us how dangerous the banks really are.
http://www.jsmineset.com/cwsimages/Miscfiles/6071_April1608-Eric.pdf
Most of them are insolvent basically. This is the reason why I think the worst are not even begin. I keep minimum amount of cash in my checking account to get by daily use.
Good luck to my friends. Got gold?
FYI. There is an interesting article, "Should you rush to gold?", published in Fortune April 28 issue. You should read it if you want to invest in gold as a hedge against`inflation.
Hi Yan, Good to see your post again.
I'll buy the magzine from the stand later today.
There are several common misunderstanig of gold:
The first, it is not a good hedge against inflation. We can hedge inflation in may ways besides buying gold.
The second, people treat it as a commodity instead of aa a currency. This misconception gives the highest leverage for long term investing if one think their currency is going to fall apart when no one wants it. Most of the gain is when gold is moving away from a commodity and becoming a currency. I belive this stage just began.
The third, gold is a very small market, therefore, it is very volatile and very easily become emotionally attached. I only buy it at major pull backs. Don't buy it in a "rush".
The fourth, all of the central banks hate it and they try very hard to intervene its rising, therefore, it is not a "free market". We can't trust every thing you see/heard from the government's financial cook books.
I treat phyhsical gold as a insurance, senior gold mining stocks as speculation vehicles, the junior exploration stocks as gamble.
I invest in Central Fund of Canada. (AMEX:CEF) for real physical gold and silver. I stay away from GLD and SLV.
The recent pull back is the opportunity to buy, imho. The best trategy is to buy in small increments at pull backs and spread out into several years, but these has to be done within the next 12 months. The time is really runing out.
You can listen to the weekly discussions of the experts at:
http://www.financialsense.com/fsn/main.html
I like the the 3rd Hour with Jim and John, especially the part 2.
http://radio.goldseek.com/GSRplayer04.26.08.php
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