Interview with Byron King

This fellow worked as a geologist in the exploration and production division of a major oil company, so he has some views on gold from a 'geological' point of view. I never looked into the concept of 'peak gold' that much but it is something I've heard before. Byron King brings it up in this interview. In response to a question about why gold would go to 2000$ he said :

"Because we're in a world that appears to have encountered peak gold as well as peak oil. If you look at historical production, worldwide gold output reached a top right around the year 2000–2001. Overall output has declined and we're not replacing output from the big mines of the past. Despite discoveries here and there, miners have to dig deeper and deeper into the reserves."

He also mentioned inflation and interest in gold from China as reasons for being long gold.

His opinion on silver is that it should outperform gold percentage wise, an opinion I agree with. In fact I think many of us overlook silver, perhaps because decades of watching the Olympics have conditioned us into thinking gold is somehow better. I think everyone should have at least a sock full of coins stashed somewhere in their house.

Endless Stimulus and 2000$ Gold

The Arguments for and Against Gold

This is a good article that condenses a lot of the arguments for gold and finishes with a few links to a guy who does not like the metal. In it you will find comments from such luminaries as Alan Greenspan, Marc Faber, Adrian Ash and others.
I found the comments on gold in a deflationary environment interesting. I never really thought of deflation as being good for gold, I just knew I did not want to be at the mercy of a currency that I fundamentally do not believe in as a store of wealth. I wanted the stability of gold, and regardless of whatever deflation there was, I was sure that in the long run we would have inflation due to all the paper and digital dollars being created. But some of the pundits in this article say it doesn't matter if there is deflation or inflation, gold is a 'go-to' asset that will be much sought after.

Is Gold a Reasonable Investment?

Lorax2013 on the Importance of Taking Action

I posted a video by this fellow awhile back. I just thought I'd put this one up as well, as he makes the point that people who are aware of the problems with the dollar and the general direction of the US economy should not just sit and worry about it - they should take some very simple steps to control their own situation as best they can.

It's a point that ought to be emphasized. An individual has a surprising amount of control over the conditions in their life. The election of 'The One' (Barrack Obama) highlights the tendency of people to look to others, often politicians, to save them or to change the conditions they feel assailed by. Loren Howe (aka 'Lorax2013' on YouTube) explains this well in this video, where he talks about a book by a well-known Libertarian.

Taking control of your finances and mitigating (or eliminating) the influence of the banking industry on your life is one of the reasons to invest in gold and silver. This blog is not just about investing, but about financial freedom and self-governance. I think taking your fiat dollars and converting them to something (not just precious metals) that retains value is one of the most important steps you can take.

Is Gold in a Bubble?

I would say not. Too many people are either ignorant of gold or view it negatively. (I like when the talking heads on CNBC refer to gold bugs as crazy survivalists sitting in a hole in the wilderness clutching a shotgun).

I will look for fear buying as a sign we are heading into a new stage with gold. When large numbers of people start seeing it as some kind of last available shelter from the falling sky I might want to edge closer to the exit door.

I remember back in the fall and winter of 08', alot of investment advisers for wealthy, high-end people were saying their clients were asking about Krugerrands and gold Maples. Those were the upper-class folks. I think we need to see more average joe-six pack types buying coins before we can talk about a real bubble.

Gold: Signs of a Bubble?

Mark Faber on How to Trade the Dollar : "This is the short of the century ..."

Some comments of note include Dr. Faber's belief that stocks will rise by about 7% per annum but any gains will be eaten by inflation. Also he repeated a criticism he has made of Bernanke and Greenspan numerous times in the past; that they have succeeded in creating a bubble in everything (that doesn't sound good).

He likes Asian equities and of course, commodities. He advised people to buy physical gold and to store it out of the country.

On the subject of inflation, it seems to me that the 'lame-stream' media is becoming more accepting of the view that the dollar is going to lose significant value over the coming years. I suppose there will be a bubble in gold at some point, when everyone will be running to it, but I'm sure that day has yet to come.

Marc Faber Takes on Krugman, Links Bernanke and Mugabe

Advice from Dr. Doom

Some sensible advice on how to hedge against inflation. Don't listen to the USA rah rah rah morons on CNBC who think the dollar is king just because they get teary-eyed when the Star Spangled Banner is playing. There are a lot of things about America I love and respect but it aint' the country it used to be and it is not a rising star right now - nor is its dollar.

Faber Says ‘High’ U.S. Deficit Will Spur Inflation

Inflation, Boom, Bust

Here is an article with a great quote from Ludwig von Mises on inflation and the different stages it goes through. We are destined to live in interesting times ...

The Crack-Up Boom