Thursday, July 30, 2009

Gold again

There is lots of advice how to benefit from this depression. Financial institutes tells us that certain stocks are great bargains, but remember these are the very people that totally missed the start of the recession and now, during this depression, they have it wrong again. Sure you might still make money of stock- and bond markets in the short run, but in the little bit longer perspective with a failing dollar, appending hyperinflation and other fun things I would urge you all to stay away from those assets completely. Best buys are still Chinese commodities and the South East Asian market, but please be vary of certain political realities in those regions. China, for instance, isn’t that far from actual rebellions. Not the tiny skirmishes we have seen now and again, no, I’m talking really bloody and messy stuff. And Indonesia isn’t really the most stable place to be either, so please be watchful, but if you really want stocks, go there and please stay the hell away from the American, British and most European markets

The best investment both in short terms and, specifically, in the long term is Gold and silver. About 12 years ago, about the time when I started to really wake up and understand how things work, I wrote my first long article arguing for people to buy Gold and this was just before the dot-com bubble burst and when gold wasn’t really the thing. Since then I have mainly focused on arguing for the return of real money and for us to put an end to fiat-currencies that continues to wreck the world. This until about 1-1,5 year ago when this recession was very apparent for everyone with a brain and I started to throw more direct advice out in the ether. When I started this particular blog 7 months ago I immediately wrote how gold is a very good buy.

So lets lock at graphs for this longer and shorter period:

Gold prices 10 years:

Gold prices 1 year:

What you should really know and acknowledge here is that certain banks and financial institutes are selling “Gold” in the form of IOU’s in massive numbers which is keeping the price very low at the moment. No one knows if those IOU’s really have gold backing them but since these are trustworthy companies it has so far worked. No matter what happens; Britain selling out all their gold, China and India going on a buying frenzy and hording Gold like crazy and a deep recession hits us, and despite all that the gold never seem to go over $1000. Something is seriously wrong with that picture and most likely Gold is highly undervalued at the moment. The undervalued Gold together with a continuation of this depression will make Gold skyrocket in price. Some have predicted $5000 within a couple of years. I wouldn’t go that high, but certainly over $2000, which still makes Gold a fantastic buy. Also it is shiny, beautiful and you can make stuff out of it.

Gold is Great!!

1 comment:

  1. I scanned a lot of your postings and read them-- found them very interesting and enlightening! Thanks for sharing.