bullionhold » Financial Markets

Why Gold Investors Are Still in the Minority

Anthony Hendriks — Thu, 23 Dec 2010 03:07:23 +0000

An excerpt from a report by Joel Bowman

Bowman wonders about the contrarian mindset. Is it inherent? Is it genetic? Why do some folk stray from the herd, while others follow like sheep? There is little doubt that, in the world of investing, it pays to be in the minority. Some commentators divide the crowd into unequal portions: the minority constitutes the “smart” money; the majority represents the “dumb” money, on which the minority happily feeds. As Rick Rule said, when it comes to investing, you are either a contrarian or a victim.

Necessarily, the smart money must be a minority. The moniker is afforded, at various times, to bond traders, short sellers and industry insiders. Whatever their position, they must be ahead of the curve, ready to sell at the point of maximum demand and to buy at the moment of minimum interest. Though not entirely dependent on the status quo, a contrarian’s position is almost always in opposition to it. It is helpful, therefore, to ask what the accepted norm of the day is.

Today, the financial, economic and political systems are built on lies: that people can grow rich by spending more than they earn; that companies can achieve success by producing things people don’t buy; that real estate prices always go higher; that a debt-ridden economy can recover by piling on more debt, debasing its currency and lying to the masses about what it is doing.

In contrast, gold is incorruptibly honest. Fiat money worshippers won’t touch it. Central bankers can’t compromise its virtue. It is nobody else’s liability. That is why, to the majority, it remains a barbarous relic. But for the rest of us, like honesty, it is still the best policy. Read more at Bullion Management Group.

Why Gold Investors Are Still in the Minority is a post from: bullionhold

The Day the Dollar Died…

Anthony Hendriks — Wed, 15 Dec 2010 19:29:28 +0000

OK…one scenario on a possible future for the US dollar. Watch this video for a frightening view on hyperinflation in the US caused by a continued mismanagement of the dollar by the US Federal Reserve — continued pumping of cheap credit (treasury bills) into the system. When 'money' becomes excessive in the system can inflation be far behind? Do you have some gold bullion to protect yourself and your family? Contact me now if not. Here is the video:

The Day the Dollar Died… is a post from: bullionhold

Jeremy Grantham Speaks

Anthony Hendriks — Wed, 17 Nov 2010 05:17:00 +0000

Jeremy Grantham talks about the Fed, and the economy in the US and globally. One of his 'takes'? Build cash. Who is he? He is chief investment strategist of Grantham Mayo Van Otterloo, a Boston-based asset management firm, and a respected voice in the financial world.

Jeremy Grantham Speaks is a post from: bullionhold

CFTC Suppressing Information on Precious Metals?

Anthony Hendriks — Tue, 23 Feb 2010 19:58:43 +0000

More on possible manipulation in the precious metals market. This from Ron Kirby on Financial Sense. Here is an excerpt: "Something of significance occurred last week that went unreported in the mainstream financial press. This important development was the admission of the Commodities Futures Trading Commission [CFTC] that it was suppressing information that would expose precious metals market manipulation.

This issue was first publicly reported by GATA director, Adrian Douglas, in a February 20, 2010 article posted here.

Beginning in December, 2009, the CFTC began suppressing the disclosure of the identity of banks participating in the silver futures market [via the Bank Participation Report or BPR]." Read more here: CFTC

CFTC Suppressing Information on Precious Metals? is a post from: bullionhold

Gold Rises to 1 Week High on ‘Greece Credit Issue’

Anthony Hendriks — Mon, 15 Feb 2010 19:43:20 +0000

Credit issues in the country of Greece continue to cause concern in global financial markets. Recent events have given a boost to gold. Here is an excerpt from BusinessWeek: “Sovereign debt concerns should continue to provide background support,” James Moore, an analyst at TheBullionDesk.com in London, said in a report. “With the role and stability of the euro being seriously questioned, we could see a broader shift by investors toward hard assets, particularly gold.” Read more here: BusinessWeek

Gold Rises to 1 Week High on ‘Greece Credit Issue’ is a post from: bullionhold

Trouble for US Fixed Income in 2010

Anthony Hendriks — Sun, 03 Jan 2010 21:24:10 +0000

In this article in 2010, Tyler Durden writes about the madness that that continues to envelop the US financial markets and the pickle that the US Treasury and Federal Reserve Board find themselves in. Sadly, unmanageably deb begets more and more unmanageably debt. Where does it end? It's hard to imagine a good ending. And precious metals will continue to act as a buffer against this madness. Do you hold precious metals bullion yet? I'm not talking about 'paper ETF's but real bullion.

Here is an excerpt from the article: "...in 2010, the total estimated net issuance across all US$ denominated fixed income classes is expected to increase by 27%, from $1.75 trillion to $2.22 trillion. The culprit: Treasury issuance to keep funding an impossible budget." More here: 2010

Trouble for US Fixed Income in 2010 is a post from: bullionhold

Bullion Buzz Newsletter

Anthony Hendriks — Thu, 17 Dec 2009 21:52:13 +0000

Catch the latest Bullion Buzz Newsletter and get informed on current hot topics by authors like Julian Phillips, and Duncan Gardham. In his piece entitled ‘Taxing the Rich is Causing an Exodus’, Mr. Gargham writes that “The number of directors of British companies who have registered in the Channel Island tax havens of Jersey, Guernsey and the Isle of Man has risen by almost 500 in the past 12 months. All three are Crown Dependencies and can set their own tax rates. The British Virgin Islands, a popular tax haven in the Caribbean, has seen an 18% rise since a year ago. Those who are boycotting the mainland’s punitive tax rates include bankers, hedge fund managers and entrepreneurs.”

Ron Paul on Sound Money

Anthony Hendriks — Sun, 13 Dec 2009 06:31:03 +0000

Congressman Ron Paul — long an advocate of sound money– recently called for more competition in money with three steps. This quote from the New American: “The congressman’s new measure calls for three steps. The first is to repeal legal tender laws that give paper bills issued by the Fed the monopoly always sought by thieves and tyrants. The only legal tender in our nation today is the paper currency issued by the Fed. But Congress has constitutional power to coin money, not to monopolize paper…” More here: Ron Paul

Ron Paul on Sound Money is a post from: bullionhold

Gold Takes a Breather

Anthony Hendriks — Wed, 09 Dec 2009 02:15:53 +0000

Gold takes a bit of a breather before next launch up. A good buying opportunity if you want to add to your positi0ns or start investing in gold and other precious metals. We are far from getting through the global debt crisis in my opinion. More money will be printed and the U.S. dollar will take it in the neck some more. Gold will continue to shine.

From Reuters: U.S. gold futures fell for a third straight session on Tuesday, trading below $1,150 an ounce, as a resurgent dollar prompted jittery bullion investors to lighten up positions ahead of the year end. More from Reuters: Reuters

Gold Takes a Breather is a post from: bullionhold

Second Leg of Debt Crisis Beginning…

Anthony Hendriks — Sun, 06 Dec 2009 20:45:03 +0000

Independent financial analyst and owner of Karma Bank, Max Keiser is quoted in Digital Journal. Keiser discusses how the US Dollar is not a defensive currency as it has been in years past and more governments are going to question the value of the dollar by realizing that eventually the dollar is going to be replaced as the global reserve currency and “they as we know are continuing to buy gold bullion.”
Keiser makes a pretty good long-term support case for gold. Read more here: Max Keiser

Video interview with Max Keiser here:

Second Leg of Debt Crisis Beginning… is a post from: bullionhold