I found some very interesting commentary recently posted at Gold-Eagle.com about the true (inflation-adjusted) value of precious metals, by Adam Hamilton. See: http://www.gold-eagle.com/gold_digest_05/hamilton011306.html
Don’t miss the recent letters about Zimbabwe from Cathy Buckle on her Africa’s Tears site. See: http://africantears.netfirms.com/ (In the left hand bar, click on December 2005 and January 2006 Archives.) It is sad to see a once prosperous nation slide into an economic shambles due to an incompetent and utterly corrupt communist government. Key infrastructures are crumbling, crop production is steadily declining, and the currency is still suffering from hyperinflation. Mugabe and his henchmen need to be handed one-way tickets to somewhere!
Mr. Rawles, I wanted to run a few observations of mine by you and then pose a question. I am working in Afghanistan as a security contractor. I don’t have a normal security contractor job (i.e. doing PSD work for dignitaries), and I get to see a lot more of the country, frequently by myself. I see things turning in the wrong direction here, and while we could take the upper hand again, I don’t think the powers that be will make the right decisions. The U.S. will be turning over control of the violent south and east to ISAF …
When doing some recent web research, I ran across three very interesting commentaries posted by the fine folks at at Gold-Eagle.com. The first was by Peter Degraaf. See: http://www.gold-eagle.com/editorials_05/degraaf010806.html The second was by Emanuel Balarie on The Real Estate Bubble. See: http://www.gold-eagle.com/editorials_05/balarie011006.html The third was by Kevin DeMeritt, the president of Lear Financial, titled: “Greater Fools, Stocks, Real Estate and Gold.”See: http://www.gold-eagle.com/editorials_05/demeritt010906.html
Two recent developments overseas may not bode well for the dollar. This first is that Iran has announced that in March (of ’06) it will open a new international oil bourse that will have all transactions denominated in Euros. (See: http://www.energybulletin.net/7707.html ) The second is that China has announced that it intends to shift its currency reserves away from the U.S. dollar for “a more balanced portfolio.” (Read: Anything but dollars!) See: http://news.ft.com/cms/s/f39fa8e4-7e25-11da-8ef9-0000779e2340.htm
I often get e-mails from readers stating that are leery about investing in precious metals. They complain that the markets are “too volatile.” In the short term the metals markets– particularly for silver and platinum–are indeed quite volatile. (Witness yesterday’s 28 cent dip.) But it is important to step back and look at the big picture. Forget the daily fluctuations. Instead, look at the 120 day moving averages (DMAs). Next, study the 5 year and 10 year charts at Kitco.com. Back in the late 1990s, investors were piling into the NASDAQ, gobbling up high technology stocks in a speculative frenzy …
James: In researching data this afternoon I came across a article in the MuseLetter (#149, dated August of 2004) at http://www.museletter.com/archive/149.html. It has an interesting history of our U.S. dollar and it’s potential future. It also has reference to an petroleum website http://www.lifeaftertheoilcrash.net/ that you may find interesting reading. (Also published 2004.) As an aside, World Net Daily mentioned that a reporter from Der Spiegel printed a story that the U.S. is preparing action against Iran’s Nuclear program, possibly by March [I think that] 2007 and 2008 may be interesting times.
Dr. Gary North writes in the latest issue of his REALITY CHECK e-newsletter: “If you get confused about money, the Federal Reserve System, and all this fractional reserve banking stuff, I have a solution. It’s the best 45-minute documentary on the Federal Reserve System that I have seen. The good news: it’s free. Google is launching a new service. You can post videos on line for free. This means you incur no bandwidth expenses. This is a deal! To see how well this works, click here: http://snipurl.com/fedvideo“ OBTW, if you do not yet subscribe to Gary North’s REALITY CHECK e-newsletter, …
Jim, I have been thinking about my 401(k) money that I can’t get to till I am 59-1/2. I have done some homework on it, and here is what I have found out. Our Federal Government has confiscated the gold eight times in the past. When they do, they pay face value. Double Eagles are $20.00, that’s it. Talk about taking it in the neck! There is a way to put gold into an account, where it is stored for $100.00 per year, in the owner’s name, but it seems one cannot get [numismatic] pre-1933 gold coins (which are non-confiscatable) …
An interesting piece recently ran in Fortune magazine, regarding billionaire Richard Rainwater’s views’ on Peak Oil. (The “Hubbert’s Peak” in global oil production, expected sometime in the next few years or perhaps 20 years, or perhaps 100 years, depending on who you talk to.) See: http://www.fortune.com/fortune/investing/articles/0,15114,1139979-4,00.html SurvivalBlog reader Chuck, who first mentioned the Fortune article to me commented: “I had the opportunity to review several of Richard Rainwater’s oil deals while at Mitchell Energy. His projects were always well conceived and forward-looking.”
I was checking the prices on base metals today and saw that copper is at $2.10 a pound. Pre-1982 pennies are 95% copper, and 153 of them make a pound of copper. Any thoughts to using pre-1982 U.S. pennies as barter in addition to silver? If nothing else, I’ve been saving my pre-82 pennies for a few years. I have a few pounds worth. It’s not something I’m ‘stockpiling’ by any means, but every time I check my change I look for the 1981 (and earlier) pennies as well as the pre-65 dimes and quarters. It’s also a slight moral …
James: Bill in North Idaho’s letter intrigued me, so I did some digging and thought you would be interested in what I found. The FinCEN FAQ is pretty clear that the requirements of being a ‘dealer’ only applies if you buy and sell more then $50,000 in one calendar year/tax year, so if you’re buying up bullion and not selling it (i.e. hoarding it) you don’t count as a ‘dealer’ so this specific ruling doesn’t touch you. What it does do, is make most people selling lots of gold/silver/jewels into ‘dealers’ which means they file IRS form 8300 and report …
Jim, It looks like our rulers are going to tighten the noose on reporting requirements for bullion purchases to chip away at anonymous buyers effective January 1, 2006. See: http://www.fincen.gov/faq060305.pdf FDR started the ball rolling in 1933. See: http://www.the-privateer.com/1933-gold-confiscation.html. This FINCEN ruling may be the precursor to the next confiscation coming down the pike. Instead of “hoarding”, the new buzzword is now money-laundering prevention. As with guns, the strategy is to attach names and addresses to potentially confiscated goods to facilitate asset seizure and forfeiture.- Bill in North Idaho
In a recent economic analysis piece featured by our friends at Gold-Eagle.com, (http://www.gold-eagle.com/editorials_05/tustain120505.html), Paul Tustain outlines just how bad the national debt situations is, he compares our situation to Argentina a few years ago, and he predicts that Uncle Sam will inflate his way out of the jam. My extrapolation of Tustain’s remarks–and from what I’ve read from many other analysts: One likely end result will be a dollar crisis and gold at perhaps $2,000+ per ounce. Meanwhile, the expert “chartists” like Clive Maund (see: http://www.gold-eagle.com/editorials_05/maund120505.html) tell us that in the recent run-up past $510 per ounce, gold has pushed …
Jim: I have been purchasing my silver from a store in Reno Nevada and have never had a problem with them. http://www.silverstatecoin.com/ I read your blog everyday at lunch, I enjoy it immensely. I was wondering what your thoughts were on vaccinations. Last month I was vaccinated for Flu, Pneumonia, Measles, Mumps, Rubella, Tetanus and Diphtheria. I am 50 years old and had the usual vaccinations when I was a child, is there anything else that I should consider getting? Have a Merry Christmas. – Jim from Illinois JWR Replies: I have very mixed feelings about inoculations. Currently, with the …