Precious Metals Score Another Profitable Year!
From James Turk's Founders Commentary found at the following website( http://goldmoney.com/en/commentary.php#current) we can read the following recap of precious metals. " Six Consecutive Years -- The numbers for 2006 are in, and gold has climbed again, its sixth annual increase in a row. Gold gained 22.8% for the year. Silver also had a banner year, climbing a stunning 45.3%. Gold has appreciated 15.5% per annum on average, while silver's annual appreciation during this period is 19.7%. "
Thus, the precious metals have once again shown to be valuable for preserving wealth in face of the depreciating dollar. In general, the mining stocks have not done as well as the metals, themselves, as they have suffered severe corrections from time to time. So, it can be seen that some of the Canadian (CEF) and the new precious metals ETFs have profited from their holdings of the metals.
The metals have shown appreciation in recent years against almost all of the paper currencies of the world. This reveals and should be understood that all of these currencies are simply un-backed paper. They have value only from their FIAT status and acquiescence or preference of people to use them.
There is another factor in the appreciation of the metal. I would suggest that there is a growing demand coming from the recent prosperity of the people of China and India. These are two of the fastest growing countries in the world in recent years. These and other Asian people understand the value of precious metals and are frugal, partly from necessity, but learned over many generations. They are very thrift conscience as their level of saving clearly reveals. Contrasted with the zero to negative savings rate in America, they are far advanced over us in thrift. Recall, that the high rate of savings in Japan greatly lessened the impact of the severe recession/depression in that country.
Savings is the basis for growing an economy while consumption is a recipe for disaster. As one can read in Clausen's The Richest Man in Babylon, one must not eat the children. He is referring to the consumption of increases in value of savings. He explains that rather than eat these children, one should let these children (savings profit) continue to earn even more in the future. Put them to work for you! Others have called this principle, "compounding". Through the process, your capital will increase over time much more rapidly than if you have consumed the increase from your savings and investments. It is a sound principle which the wise will follow.
The Lord has given each of us the New Year. It is a time for reflection, but also to look forward with renewed vigor toward learning more of the Lord's word and applying it more diligently in our lives. We must, not only be hearers of the word, but doers - immediately applying what we have learned. Make your new year's resolutions, if you want, but be not fooled. It takes diligence and persistence to follow through with them. If you truly want to make improvements in your life, commit to them with careful planning, commit them to Lord (Pr. 16:3 & Ps. 37:5,6), and then move forward to accomplish them step by step. As He fulfills your plans with success or by failure to direct you in a different path, give Him the praise and glory with great gratitude.
May each of you have a great New Year.
Doug
Thus, the precious metals have once again shown to be valuable for preserving wealth in face of the depreciating dollar. In general, the mining stocks have not done as well as the metals, themselves, as they have suffered severe corrections from time to time. So, it can be seen that some of the Canadian (CEF) and the new precious metals ETFs have profited from their holdings of the metals.
The metals have shown appreciation in recent years against almost all of the paper currencies of the world. This reveals and should be understood that all of these currencies are simply un-backed paper. They have value only from their FIAT status and acquiescence or preference of people to use them.
There is another factor in the appreciation of the metal. I would suggest that there is a growing demand coming from the recent prosperity of the people of China and India. These are two of the fastest growing countries in the world in recent years. These and other Asian people understand the value of precious metals and are frugal, partly from necessity, but learned over many generations. They are very thrift conscience as their level of saving clearly reveals. Contrasted with the zero to negative savings rate in America, they are far advanced over us in thrift. Recall, that the high rate of savings in Japan greatly lessened the impact of the severe recession/depression in that country.
Savings is the basis for growing an economy while consumption is a recipe for disaster. As one can read in Clausen's The Richest Man in Babylon, one must not eat the children. He is referring to the consumption of increases in value of savings. He explains that rather than eat these children, one should let these children (savings profit) continue to earn even more in the future. Put them to work for you! Others have called this principle, "compounding". Through the process, your capital will increase over time much more rapidly than if you have consumed the increase from your savings and investments. It is a sound principle which the wise will follow.
The Lord has given each of us the New Year. It is a time for reflection, but also to look forward with renewed vigor toward learning more of the Lord's word and applying it more diligently in our lives. We must, not only be hearers of the word, but doers - immediately applying what we have learned. Make your new year's resolutions, if you want, but be not fooled. It takes diligence and persistence to follow through with them. If you truly want to make improvements in your life, commit to them with careful planning, commit them to Lord (Pr. 16:3 & Ps. 37:5,6), and then move forward to accomplish them step by step. As He fulfills your plans with success or by failure to direct you in a different path, give Him the praise and glory with great gratitude.
May each of you have a great New Year.
Doug
posted by Doug @ 8:58 AM
0 Comments:
Post a Comment
<< Home