GOLDBUG: Never ask a gold bug for comments!

Wednesday, October 21, 2009

http://tslrf.blogspot.com/2009/10/buying-gold.html

Friday, October 16, 2009

Buying Gold?

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We may or may not face serious inflation but I would like to hold as much gold as possible either way. It might cost me a couple bucks more for the same thing but worst cast I will just laugh about that when I buy for less in a few months.

Thoughts?

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Gold — bullion; not “collectibles” — currently has a 10% premium. Silver seems to be about 12%. (Palladium is an “interesting” play; rarer than platinum, but priced 60% below gold?) Unfortunately, that’s a lot of “commission” to pay. (A loan shark’s vig?) In the past it was as low as 2%. A mutual fund with a 10% load would be found unacceptable; why should we treat bullion any different. Hold it for 10 years and it doesn’t feel as bad.

The other consideration is what are your protecting against. In an “orderly” inflation scenario, other investments may “surf” the riding tide of inflation (i.e., real estate; stocks). In a “disorderly” inflation scenario (e.g., hyperinflation like Rwanda or pre-WW2 Germany), then you want the bullion coins in your possession. (Or, where you can get to them in a pinch.)

Bottom line: In hyperinflation, bullion coins will overcome the premium in a heartbeat. But what’s the probability of it happening? Tough call.

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GOLDBUG: Myths, Misunderstandings, and Outright Lies

Tuesday, July 21, 2009

http://www.cmi-gold-silver.com/gold-confiscation-1933.html

Myths, Misunderstandings, and Outright Lies

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Well worth reading BEFORE buying or selling anything gold, silver, or other “valuable stuff”.

As a veteran “gold bug”, I knew this stuff, but it’s well written refresher.

It’s long, but let me summarize: If you see it on TV or hear it on radio, be afraid. Be very afraid!

If Wall Street is a casino, then a lot of the gold dealers are just fraudsters.

Fore warned is fore armed.

Now can I interest you in Nigerian Gold Shares?

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GOLDBUG: 5k$ gold?

Tuesday, July 14, 2009

http://www.bi-me.com/main.php?id=38821&t=1&c=62&cg=4&mset=

Gold is ultimate store of value for a discredited dollar, says Peter Schiff
Author: BI-ME staff
Source: BI-ME
Published: Fri July 10, 2009 4:12 pm

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INTERNATIONAL. Renowned Wall Street financial forecaster and economist Peter Schiff, the president of investment firm Euro Pacific Capital and author of ‘Bull Moves in Bear Markets’ said gold prices are poised for a “spectacular” and prolonged rally as the recession deepens and investors finally become disillusioned with the US dollar.

Schiff, who warned of the October 2008 stock market crash and accompanying recession as far back as 2006, has predicted a gold price of US$2,000, and rising as high as US$5,000 as inflation takes hold.

Speaking at a recent interview with Business News Wire, Schiff suggests that the looming prospect of a hyper-inflationary environment in the US will severely debase the US Dollar over the next few years.

“The global investment community will realise that gold represents the ultimate “store of value” as a safe haven replacement for a discredited dollar,” Schiff said.

*** and ***

“The only solution to the economic problems that we have today is a return to sound money… The world is ultimately going to have to move away from the ‘Dollar Standard’ and back their currencies with something real. I think gold is the best thing to use. Gold has been money for 5,000 years,” he said.

“One of the reasons that gold isn’t stronger is because of this temporary strength of the dollar. This is keeping the gold market in check. And the dollar is getting some of the safe haven money that should be going into gold,” Schiff added.

“At some point that will stop. The people who are buying dollars will realize that there’s no safety in dollars. Because the central banks are going to try to pay for the economic bailouts and stimuli by looting the world’s savings and by printing money and debasing it.”

“So, if you want to escape that, you hold gold, which is something that the government cannot debase,” he concludes.

*** end quote ***

Music to a Gold Bug’s ears.

The implication of 5k$ gold is that inflation as measured in dollars is 400%. That translates to a gallon of gas is $16, a package of hot dogs is $10, and a six pack of cheap beer is $20! Makes Frau’s social security check and my pension a lot lot smaller!

On the positive side, it makes it much easier to pay off the 11T$ “national debt”. But, how do you think the Chinese will feel holding 5T$ of diminished purchasing power? Not too happy!

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MONEY: Don’t mess with Uncle Sugar’s monopoly

Monday, June 15, 2009

http://www.wired.com/threatlevel/2009/06/e-gold/

Threat Level Privacy, Crime and Security Online
Bullion and Bandits: The Improbable Rise and Fall of E-Gold
    * By Kim Zetter Email Author
    * June 9, 2009

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Jackson has finally registered E-Gold with FinCEN, and has begun applying to states for money transmitting licenses. The company is also blocking people who appear on the Treasury Department’s list of Specially Designated Nationals and plans to follow bank procedures for verifying customer income and sources of transmitted funds. There are other plans in works to clean up the system as well.

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Read this with an eye towards why this fool was targeted.

Think they care about catch bad guys?

Or, could it be that he was undermining their monopoly over “money”.

That stuff they laughable call “money” … Federal Reserve Banknotes.

Paper!

Fiat trash.

No, he was giving people an easy and cheap way to store value.

That couldn’t be “taxed” by inflation.

Imagine how much better the Chinese would be if they had 5T$ of gold as opposed to Uncle Sugar’s little green pieces of paper.

No, anyone who messes with that monopoly, will bring the goons out in force.

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GOLDBUG: 10K Gold?

Wednesday, April 29, 2009

http://www.garynorth.com/public/4857.cfm

Why Gold Owners Are Targets of the Government
Gary North

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At some point, the number of investors who figure out that they had better buy gold is going to go from less than 1% of the public to 5%. When that happens, the supply of gold will not increase, and the price of gold will skyrocket. If as many as 10% of the investing public tries to put 10% of their assets in gold, I suspect the price of gold would go to $10,000 an ounce. The gold market is so marginal in the overall commodities market that the attempted 10% of investors to increase their holdings of gold to 10% of their assets would make today’s holders of gold very rich and very happy. I think at some point this is going to happen, but I think it is going to happen in a time of price inflation so bad that the purchasing power of the currencies will decline so fast and so far that the fact that you can get rich in fiat money by selling your gold will not persuade you to sell your gold.

*** end quote ***

Like musical chairs, when the music stops, will you be left with worthless paper?

OH, I forgot, it can’t happen here!

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GOLDBUG: What is a dollar?

Tuesday, March 24, 2009

http://www.lewrockwell.com/murphy/murphy152.html

Defend the Gold Standard
by Bob Murphy

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I don’t trust central bankers to stick to a gold standard; that’s why I think the government should get out of the money industry altogether. Suppose we were starting in an initial state of pure laissez-faire in money and banking, and someone said, “Hey I know! Let’s give this Princeton professor – what was your name, sir, was it Ben? – a printing press, but be very stern that he can’t overdo it and allow the gold price to rise more than 1 percent from the day he starts. Does that sound like a good idea?” In response, I would obviously say, “No, that seems rather risky. I think we should stick to the current system, where the market determines how much new money is brought into the economy through gold production.”

*** end quote ***

We fall prey to these bozo bureaucrats when we let them mess with the money supply.

If we tie the value of a dollar to gold, then the Fed can’t just manufacture dollars out of thin air. And, congress critters can’t spend what they don’t take it.

It restores honesty to finances. It disciplines them into husbandry. It forces them to live with in OUR means.

After all in fiat currency, what is a dollar?

A toilet paper alternative?

Argh!

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GOLDBUG: Can we EVER get back to “honest money”?

Thursday, February 19, 2009

http://news.goldseek.com/JamesTurk/1232989200.php

Restoring Sound Money in America
By: James Turk, Founder & Chairman of GoldMoney.com
— Posted Monday, 26 January 2009 | Digg This ArticleDigg It! | Source: GoldSeek.com

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There is a determined grassroots movement in the United States seeking the restoration of sound money. There are many different groups comprising this movement, but all share the same aim. It is to restore gold and silver to its rightful role as the money of the United States, as mandated by the Constitution.

I have written about this movement before. In “The Quest for Sound Money in New Hampshire” in May 2005 I discussed the bill, called the “New Hampshire Sound Money Bill”, that was drafted by Constitutional scholar and lawyer, Dr. Edwin Vieira. It was presented to the New Hampshire legislature, but sadly, remains pending in committee.

If enacted, the bill will enable people to use gold and silver in their transactions with the state of New Hampshire. An article by me discussing this bill, the aims of its several sponsors and some important background information on the monetary provisions of the Constitution can be found at the following link: http://www.goldmoneybill.org/turk.html

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Sad to say, imho, not without a revolution.

When the people realize that gooferment is funded with inflation of fiat dollars, then they might wise up.

Saving in gold ounces is one option still open to the average bloke.

Buy one or more gold coins from a “paperless source” and bury it in your backyard.

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GOLD: Demonstrating the eternal value of commodity money

Tuesday, December 30, 2008

http://news.bbc.co.uk/2/hi/middle_east/7797977.stm

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An amateur British archaeologist has discovered almost 300 gold coins dating from the 7th Century at a dig just outside Jerusalem’s Old City.

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Wonder how much a paper IOU from the then Byzantine Emperor Heraclius would be worth today?

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GOLDBUG: More paper money; higher gold values?

Saturday, October 11, 2008

http://www.lewrockwell.com/rozeff/rozeff228.html

Gold, the Dollar, and the Dollar Index
by Michael S. Rozeff

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Since 2001, gold has risen as the dollar index has fallen, but it has risen more sharply because the other currencies have also fallen in terms of gold. This appreciation in gold coincides with a world-wide inflation of paper currencies. Gold caught up to the inflation, so to speak. As long as these central bank currencies continue to be manufactured without solid backing, either gold or tax revenues, gold will continue to have a long-term upward trend. The volatility in gold prices will, in all likelihood, also continue, and that makes it hard to forecast the shorter-term movements with a factor like money supply. Note that the big increases of recent days have not pushed gold to new highs. In the longer run, however, we can be quite sure that gold will move higher if nothing is done to improve the backing of the world’s central bank currencies.

*** end quote ***

Seems obvious to me.

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GOLD: Derivative risk

Wednesday, October 8, 2008

http://www.survivalblog.com/2008/10/jims_quote_of_the_day_971.html

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Jim’s Quote of the Day:

“There is no counter-party risk — when you are holding Krugerrands.”

– SurvivalBlog Reader Rob C.

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