Dr. Paul Craig Roberts - U.S. Gold is Gone

I won't quote Dr. Paul Craig Roberts (former Assistant Treasury Secretary for Economic Policy).  I think each of us should listen to his words as spoken by him.  That leaves no chance for a misquote, or the possibility of me taking his words out of context for the purpose of sensationalism.

As you listen, please take note of his thoughts on:

• Why can't Germany have it's gold back now?
• Who is selling massive quantities of gold during light trading hours--a practice guaranteed to maximize losses?
• What's happened to the gold of the West?
• How long until the dam bursts?

Tick, tock . . .

Gold: No New Reasons to Buy?

Here's some good advice from Bloomberg. In consideration of gold's current slump we are told at 20 seconds in that ". . . there are no new reasons to buy."



You could have fooled me.  I thought the Fed was providing 85 billion reasons a month, the Japanese were on the same track, and Europe was burning!

I have got to learn to look at the bright side of things.

Bill Fleckenstein on Gold and Gold Stocks

Bill Fleckenstein seems to have a lot of faith in central bankers--to do exactly the wrong thing,  So much, in fact, that when asked about gold and gold mining shares, he commented:

"I don't see any alternative." 

Hear the entire interview (about 12 minutes) courtesy of King World News.

Got Gold?

I hope so, as this video offers lots of compelling reasons you might want to.

Richard Maybury: The Easiest Investment Call in the World

Richard Maybury just did another great interview with The Gold Report.  I am sure you want to read the whole thing, but I couldn't pass on this one quote.

"TGR: If war and hyperinflation are the inevitable future, how can investors survive or maybe even thrive during a time like this . . .
RM: Well, I wouldn't put $100 under the mattress, at least not for very long, because it will soon become worthless. But commodities, stocks of raw materials firms, gold and silver and platinum coins have value. Generally, I try to see the world in terms of two kinds of investments: dollars and non-dollars. You definitely want non-dollars, things that do not have their value tied to the value of the dollar. An example of a dollar asset is something like a bond or bank CD. Their values are tied directly to the value of the dollar. If the dollar falls, then their values fall.
Gold is a non-dollar asset. When the dollar falls, usually gold rises. The same is true with silver and oil. All of these things have values that are not tied to the dollar. My advice is to invest in non-dollar assets. Gold would be at the top of the list, silver and platinum and then oil."

I spent a fair amount of time thinking about gold silver. When push comes to shove though I'm not really a goldbug. Honestly, I think it's much easier to save and transact in dollars.

But Richard hit the nail on the head here. Now is not the time (if there ever was one) to store value in dollars. So many actions that our government (and governments around the world) are taking seem to indicate with crystal clarity:

• They can never repay their debts.
• They don't intend to pay their debts (at least not in good money).
• They will bail out their bankers at any cost.
• They will continue to fund the unfundable at the cost of destroying our currency.

So to me it seems clear. Have some dollars to buy your groceries (might want some extra groceries on hand as well), pay your mortgage, and even next year's college tuition for the kids. But for the value you're saving for years from now, you'll probably want some protection from the tender mercies of our Federal Reserve.

Jim Rogers: Heads I Win; Tails I Win

In this video, Jim Rogers tells us again that commodities are positioned to outperform regardless of which way the economy goes.  He is high on many commodities, including gold, sugar, rice, etc.

Why?  That's simple.  Agriculture has been a lousy investment for 30 years.  The resulting underinvestment is certain to lead to higher prices.  Kind of like a pig in a python.

Rogers predicts that gold will hit $2,000 within 10 years.  But as he points out, that's really not a very outlandish position given our current circumstances.



[ad#Post Bottom Link Unit]

Peter Schiff - Gold is still a great buy

Sure, in this video Schiff says gold is still a great buy.  The really entertaining part though, is right at the beginning when he directly contradicts the party line at the Fed.  If you've seen his old Youtube videos vs. Ben Stein, you may wonder, as I do, if he'll be vindicated 100% this time as well.

If nothing else, you have to love the guy because he's a politician willing to tell us what we don't want to hear.  So, that makes 2 with Ron Paul.  Now what do we do with the rest of them?

 

[ad]

National Inflation Association says Fed rate hike is meaningless

The Federal Reserve announced yesterday that it raised the "discount rate" by 25 basis points to 0.75%. This move was meaningless because very few institutions use the Fed's discount window, in comparison to more widely used overnight lending. The current balance of discount window borrowing is only $14 billion, compared to the $1.1 trillion in excess reserves currently being hoarded by banks.

By the Fed raising the discount rate but not the overnight federal funds rate, they are clearly trying to talk up the U.S. dollar and push down gold and silver prices, without reducing the supply of cheap credit. Considering that gold and silver prices rose slightly yesterday following the Fed's announcement and held strong today, it is our belief that the market is calling the Fed's bluff and beginning to realize that artificially low interest rates are here to stay.

Many people forget that gold's bull run from $35 to $850 per ounce during the 1970s came during a time of rising interest rates.

Sure, they're talking their book.  Who doesn't?  Before you discount what they say, though, you might want to read the full article here.  Then, before you dismiss them, try to find the flaw in their data or their reasoning.  If it's there I'd love to hear about it!

PS  Why not sign up for their newsletter why you're there?



[ad]

Peter Schiff predicts gold will surge

In March of 2009 Peter Schiff predicts gold will surge as the dollar tanks.  Granted, this video is a bit dated now.  Still though, do you see any of the factors hurting the dollar changing any time soon?




[ad]