Message: Prospering through the Great Inflation - the security of gold. (Larry Miles)
June 15th, 2009 - 5,019 subscribers...thank you!
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Larry Myles Reports |
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July, 2009 Prospering Through the Great Inflation I agree with my long-term readers, investors who have already gained financial security because they have chosen to think for themselves, rather than pay heed to the failed economists and our completely out-of-step political leaders.
When it comes to bullion, always remember: In good times or bad, in almost all countries around the world, gold and silver is considered money. In bad times, when all else fails, gold and silver rapidly evolves into de facto currencies. History is replete with examples: Weimar Republic, Zimbabwe, Russia, and Yugoslavia just to name a few. We are all in agreement that we are living through financial times; best described as uncertain and ominous. Furthermore, there is growing evidence that we will face further difficult tests before society rediscovers the path to true prosperity. America, the largest and most important market in the world is being diminished before our very eyes. America as a bastion of wealth is almost tapped out. The American consumer is cash-strapped and credit card maxed-out, and in debt. Mega-states like California are for all intents and purposes, insolvent. $24 billion budget deficit. Zero direction from their embattled and divided state government. Unemployment at 12% is at an all time high. Washington’s answer: Grow government, tax and spend and dramatically grow the money supply. So where does that leave us, the folks? For many of my long-term readers, the decision was obvious, and has already been put into practice: months ago, many of you joined the legions of global investors who wisely bought, and took physical possession of gold and silver. They ignored the mewling of the fiat money crowd who claimed that buying bullion was…’not rational’. They turned a deaf ear to those in Washington who said it was their ‘patriotic duty’ to go out and spend money….money they did not have. [More] “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
June, 2009 Wealth Creation and Personal Security Once again back to basics: ‘gold is the only true and honest standard’. This is becoming increasingly obvious as the actions of shedding the US dollar has moved from the quiet and discreet to a raucous and total abandonment. Gathering Gold… Last year it was being described as fear driven when the purchase of bullion by ordinary folks first hit the news feeds. I remember the early movement to hard gold being decried by one esteemed writer as “a knee-jerk reaction by unsophisticated investors”. This year his tune has changed…”it is the wise investor who is not fooled by the arrogant comedy of corruption and posturing, fully realizing that gold has turned into the de facto currency of the civilized world.” Before I move on, full marks to the legions of small investors who led the way; who were not fooled by superbly choreographed charismatic leaders trying to sell a false bill of goods by delivering leg-shivering speeches, flawlessly read off a teleprompter. This year it is the big players making their presence felt, as evidenced by last week’s announcement that “Hedge-fund firms Paulson & Company and Lone Pine Capital made big bets on gold during the first quarter, becoming Number One and Number Two shareholders, respectively, in the SPDR Gold Trust (GLD) exchange-traded fund, according to regulatory filings.” Paulson & Co. - run by John Paulson, who had already been beefing up his exposure to gold companies - bought 31.5 million shares of the ETF during the first quarter, according to its mandatory end-of-first-quarter holdings report with the Securities and Exchange Commission. That stake would be worth more than $2.8 billion. Seems their timing is spot on, as market sentiment has definitely turned bullish on gold. Global demand has jumped 38% year-over-year in the first quarter as sharply higher buying in gold investment products more that offset depressed jewellery consumption and industrial usage. The ‘identifiable investment in gold’ numbers, including both ETF’s and bullion coins – rose to 595.0 tonnes for the first quarter, more than TRIPLE the 171.3 tonnes of a year ago The Canadian Shield – Underexplored and Untapped A little known fact when it comes to Canada - almost all of the precious metal mines in Canada are gold mines. [More]
"A weak currency is the sign of a weak economy, and a weak economy leads to a weak nation"
May, 2009 The Ascension of Gold Continues A Report Card Update Attaining wealth over the next few years should be on every investor’s mind. Not making do, not getting by – but attaining personal security through true wealth by understanding opportunities when they appear…and seizing the moment by investing wisely. To reach this goal, there is a plan. A common-sense plan, that focuses on the ‘business of gold and silver’. There is a plan and it remains a sound plan… October, 2008 I had the temerity to write a report mentioning we were entering a gold bull market and alerting my readers that investing in the ‘business of gold’, although rewarding would take intelligence and courage. The Gold Bull is NOT Dead – October, 2008
After a broad based hue and cry, I followed up with a defence of my October statements with a report expanding upon my position, adding…that not only were we in a gold bull market, but it was rapidly turning into a historic gold bull market. (Compelling and Unstoppable: The Historic Secular Gold Bull Market – November, 2008) In that report, I opined that physical gold was finally achieving long overdue recognition as a permanent component of a larger investment strategy. [More] "The printing of fiat currency is easy...whilst the printing of gold is impossible." April, 2009 Survive The Squall of 2008? Get Ready for the Coming Storm There is a plan and it is a sound plan… Many of us will look back at 2008 as the year of “The Great Financial … Squall”. A sudden disturbance that has left many of us (some for the first time) experiencing the uncertainties of financial vulnerability. Moving into the second quarter of 2009 we continue to be threatened by inclement financial weather. But realize this – we are in the eye of the storm. That hard rain in our face is only a precursor of what lies in our path. That is the reality of the situation. Much has already been written about the US Federal Reserves "surprise move" to buy up longer-term US Treasury securities for their own portfolio. The only thing that surprised me was the muted response when the Fed went on to say it would also expand its purchases of mortgage-backed bonds to $1.25 trillion from the previously announced $500 billion
Buying up your own debt is a last resort strategy, the equivalent of a Hail Mary pass…or in the words of one of my more colourful readers: Buying your own debt is like eating your own vomit. [More] GOLD: Production, Supply and the Demand In response to the many readers who have asked me: When will the gold bubble burst? I guess the quick and dirty answer is - the gold bubble will burst when gold soars straight up from $2,500 an ounce to $4,000 an ounce and everyone you know ‘is in’. Coffee bar chatter, cocktail party natterings, cab drivers, everyone bending your ear – all asking the same question, ‘when will gold break $5,000! In other words, as of now there is no gold bubble and there will not be a gold bubble for some time to come. The underlying reason is basic supply and demand. In the housing business, when the market heats up, developers build more houses – usually to the point of overbuilding. In the process, everyone is talking about housing. We read about housing in our newspapers, and watch housing segments on our television sets. Inevitably housing turns into a bubble, and like every bubble bursts.
With gold, most people do not have a clue as to what it is trading at, or where to buy it or how to own it – or how important gold is to the entire economy, as at the end of the day, gold will become recognized as the underpinning of our entire financial system. I suppose I could make a case for the other massive bubble forming (the US dollar), but will save that for another day, as right now the gold story is far too compelling. "As fewer and fewer people have confidence in paper as a store of value, the price of gold will continue to rise." Gold is no longer considered a barbaric relic of the past. Gold is now recognized as the ultimate monetary survivor. So if the war of supremacy between the world’s reserve currency and gold is all but over – could this mean the reign of the US dollar is near an end? A few months ago, a report predicting gold as the only safe haven coupled with an outlook that questioned the role of the US dollar as the world's reserve currency would have resulted in many readers hitting the ‘delete’ button, followed by a ‘remove’ request. Now at the beginning of a new year both topics are worth exploring.
What I find somewhat bewildering are the many investors who appear ready to abandon the tenets of basic economics. The stakes have never been higher and investors are swapping out simple common sense and due diligence for theatre and make-believe. I will admit that most of the public dialogue on the state of the economy is extremely well presented. But at the end of the day, the illusionists have not convinced me that I should suspend my sense of disbelief and buy into supporting the US dollar. [More]
"So you think that money is the root of all evil. Have you ever asked what is the root of all money?" |
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