Wow, Gold a Bargain at 550!
24-Hour Report on gold: High 556 at 11:12 yesterday and Low 549.90 at 10:39 today. Now Gold is 550.50 and silver 9.37.
The mining stocks are lower, too. DROOY 1.41; HMY 13.16; NEM 49.56, and SSRI 17.20.
The correction continues. It takes strong hands to hold on when these corrections spring upon the markets. The DJI is below 11000 again this week. There is a great amount of worry over the markets.
Gold, particularly, and silver to some extent are real money. All the paper FIAT currencies are manipulated by governments, and primarily, by central banks. Our central banking system. The Federal Reserve System is corporately owned by the member banks. It is neither a governmental agency nor audited by any government agency. It is autonomous! It is the primary cause of the loss of dollar purchasing power since 1913. Since August 15, 1971, the dollar has not been redeemable in gold as it was before and since that time, the price of gold in dollars has gone from $35 an ounce to above $800 in late 1979 and early 1980 and is currently about $550. Thus, it does not take a rocket scientist to see that gold does retain value over time unless one buys on the spikes (1979-1980). When one considers inflation of the currency via the printing press and debt instruments, today the value of gold in current dollars should be approaching $1000 per ounce. Thus, even at $550, gold is a good buy. That is for the longer term, as there will be up and down movement in the price. Just such a downward movement as is now being experienced is not uncommon.
I consider each of these corrections as buying opportunities. Each of the corrections are establishing higher lows and over time, we will see higher highs. Timing is very critical for short term traders in the markets. However, those with a longer term outlook, can lock on to a major long term trend and ride it to the end. Gold remains in a bull market and the price of gold in dollar terms will continue to rise long term.
After all, a $20 gold coin in the late 1800s and into the early 1900s would buy a fine man's suit. That was true of paper dollar which was redeemable in gold as the early dollar became available. However, the same $20 gold coin will today buy a $550 man's suit, but try that with a $20 Federal Reserve Note and receive the scorn of the sales clerk. Which has retained its value? The $20 paper bill or the gold coin?
That is the basic reason for individuals to own precious metals (not jewelry) bullion coins. It is to preserve wealth over time. The reason for owning mining stocks is for the leverage as the dollar drops in value. Then the proceeds from sale of the mining stocks may be used to reduce debt and to take advantage of opportunities to buy other assets at bargain prices.
This is the rationale supporting the precious metals. However, most of the people in the United States are unaware of this. When the masses begin to realize this, there will be a "gold rush" to trade dollars, at any cost, for anything that is gold or has gold in its name. Not today, nor tomorrow, but at some time in the future. We must be prepared to supply their needs.
Best to each, Doug
The mining stocks are lower, too. DROOY 1.41; HMY 13.16; NEM 49.56, and SSRI 17.20.
The correction continues. It takes strong hands to hold on when these corrections spring upon the markets. The DJI is below 11000 again this week. There is a great amount of worry over the markets.
Gold, particularly, and silver to some extent are real money. All the paper FIAT currencies are manipulated by governments, and primarily, by central banks. Our central banking system. The Federal Reserve System is corporately owned by the member banks. It is neither a governmental agency nor audited by any government agency. It is autonomous! It is the primary cause of the loss of dollar purchasing power since 1913. Since August 15, 1971, the dollar has not been redeemable in gold as it was before and since that time, the price of gold in dollars has gone from $35 an ounce to above $800 in late 1979 and early 1980 and is currently about $550. Thus, it does not take a rocket scientist to see that gold does retain value over time unless one buys on the spikes (1979-1980). When one considers inflation of the currency via the printing press and debt instruments, today the value of gold in current dollars should be approaching $1000 per ounce. Thus, even at $550, gold is a good buy. That is for the longer term, as there will be up and down movement in the price. Just such a downward movement as is now being experienced is not uncommon.
I consider each of these corrections as buying opportunities. Each of the corrections are establishing higher lows and over time, we will see higher highs. Timing is very critical for short term traders in the markets. However, those with a longer term outlook, can lock on to a major long term trend and ride it to the end. Gold remains in a bull market and the price of gold in dollar terms will continue to rise long term.
After all, a $20 gold coin in the late 1800s and into the early 1900s would buy a fine man's suit. That was true of paper dollar which was redeemable in gold as the early dollar became available. However, the same $20 gold coin will today buy a $550 man's suit, but try that with a $20 Federal Reserve Note and receive the scorn of the sales clerk. Which has retained its value? The $20 paper bill or the gold coin?
That is the basic reason for individuals to own precious metals (not jewelry) bullion coins. It is to preserve wealth over time. The reason for owning mining stocks is for the leverage as the dollar drops in value. Then the proceeds from sale of the mining stocks may be used to reduce debt and to take advantage of opportunities to buy other assets at bargain prices.
This is the rationale supporting the precious metals. However, most of the people in the United States are unaware of this. When the masses begin to realize this, there will be a "gold rush" to trade dollars, at any cost, for anything that is gold or has gold in its name. Not today, nor tomorrow, but at some time in the future. We must be prepared to supply their needs.
Best to each, Doug
posted by Doug @ 9:44 AM
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