Gold is preferable to a currency that devaluates because it is printed and handed out to the well connected. In the US its bankers. In Greece its government employees. In Iraq and other countries its the politically connected. Those who don't get the handout subsidize this terrible misappropriation of wealth and is the primary reason to end fiat money. The misallocation of assets is worse even that the devaluation itself as we have seen in the US. Now US TBTF banks hold a increasing disproportionate amount of assets from this and choose to sit on them and gloat over the rest of America that faces rising unemployment and rising prices. America would have been 10x better off if the TBTF banks went under and the assets fled to strong well managed stable banks that actually did what banks are suppose to do (take deposits and lend). Rather TBTF banks need no deposits because they borrow from the Federal Reserve discount window for free and want to lend to no one because they can lead to the government which must finance the amount it spent lending to the banks or paying people for unemployment because businesses can't get a loan.
Farmland also requires that you pay taxes and pay for water, equipment, labor, and then requires you to pay the dairy co-operative etc. In the end you get stuck selling to a government supported organization that represents you buy ripping you and every other farmer selling the same stuff off.
Thanks for your 10:1 analysis of gold to silver. This ratio is a real one and should be mentioned more often. The fact that silver is cheaper, used in more industrial applications, and tarnishes faster should be factors weighting in silver's favor. Gold may store for just about forever but silver will always be depleted by industrial demand, get re-forged (at a net loss to the total weight each time), and be used up for things like silverware and anti-fungal clothing.
Likewise, almost no one mines silver for silver's sake alone making the number of gold mines far exceed silver mines. 10:1 rarity to gold is just one factor. In reality, silver should be more precious compared to gold than just its scarcity on a global scale.
Start Your Own Personal Hedge Fund (and Pay Yourself the 2 & 20) [View article]
Good read. 2/20 is highway robbery. If a hedge fund really wanted to really help you make money the fist thing they should advise you on is that reward is a direct function of risk, past performance means little or nothing, and not to buying a hedge fund because the risk you incur is magnified and the reward does not fairly offset the risk. Your better off in almost any other investment merely due to the fact that they charge less commission.
The Vicious Cycle of a Falling Dollar [View article]
You don't need to put yourself in the shoes of a foreign investor. Even as a domestic investor, would you buy long term treasuries? At this rate they might as well pull them off the market.
Lastly, a vicious cycle requires more than one component to make it a cycle. There is no cycle. The cause is the effect. If you make too much funny money its worth less. Plain and simple. No foreign conspiracies, etc. Those are all effects of the Fed and Treasuries fatally maligned policies for the past decade that are only getting worse.
I agree with the author that commodities should benefit. Also currencies that can't devaluate more like the Yen (The Japanese are scratching their heads saying, "Zirp been there... done that and now were stuck there. So why is the US copying quantitative easing? Especially when they don't have a surplus to afford it.")
Why China Is Right About Gold [View article]
Why China Is Right About Gold [View article]
Silver Soars Above High-Flying Commodities [View article]
Likewise, almost no one mines silver for silver's sake alone making the number of gold mines far exceed silver mines. 10:1 rarity to gold is just one factor. In reality, silver should be more precious compared to gold than just its scarcity on a global scale.
Start Your Own Personal Hedge Fund (and Pay Yourself the 2 & 20) [View article]
The Vicious Cycle of a Falling Dollar [View article]
Lastly, a vicious cycle requires more than one component to make it a cycle. There is no cycle. The cause is the effect. If you make too much funny money its worth less. Plain and simple. No foreign conspiracies, etc. Those are all effects of the Fed and Treasuries fatally maligned policies for the past decade that are only getting worse.
I agree with the author that commodities should benefit. Also currencies that can't devaluate more like the Yen (The Japanese are scratching their heads saying, "Zirp been there... done that and now were stuck there. So why is the US copying quantitative easing? Especially when they don't have a surplus to afford it.")