The Golden Truth: The TRUTH About GOLD

Wednesday, September 23, 2009

The TRUTH About GOLD

The truth of the matter is that gold and silver have been in a very quiet 10-yr. bull market, with probably another 5-10 years left. But for anyone with any doubts, have look at the chart below, courtesy of Gluskin, Sheff and Associates and sourced from http://www.ritholz.com/ - the editing on the chart is mine:

(click on chart to enlarge)

Typically, the lowest risk returns in a bull market occur early, when the smart money quietly accumulates at substantially depressed price levels and then waits for big institutions to discover the sector. Typically, the BEST returns in a bull market occur when the big funds are moving in and then the public discovers the sector and chases prices to the moon.

It's not too late to get positioned in gold, silver and mining stocks in order to enjoy the ride, as big institutions are just now moving money into the precious metals sector and the general public and mainstream financial media is still clueless.

3 comments:

EconomicDisconnectWednesday, 23 September, 2009
Dave,
I cringed when I saw that chart today. Of course comapring gold at its low with stocks from the old highs will yield a cool graphic 10 years out, but it is not the real story.
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EdwardoWednesday, 23 September, 2009
I suggest reading Zero Hedge this evening for some more unvarnished truth.
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Dave in DenverThursday, 24 September, 2009
Hey Edwardo. I was sent a copy of that GATA dispatch about the Fed and gold swaps Tuesday night. Bill Murphy told me earlier today that he received little feedback beyond LeMet subscribers. It's really amazing how few people understand what's really going on with our system in terms of Fed intervention/corruption, especially w/respect to gold and silver.

By the time the masses understand the significance of the role of gold and how little gold the U.S. has left, it will be too late to do anything about it.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.