muses of the moment

January 18, 2011

More on the gold and silver manipulation

Click here for Jesse’s take on the silver shorts and quotes from Harvey Organ’s blog.

Something is definitely going on here. But what I am unsure. This is not a free market. Be careful trading. However, when this finally breaks, physical will go to the moon.

Hinde Capital Investment Letter

Filed under: Odds 'n ends, Tangible Assets — totallygroovygirlfriday @ 1:03 pm

Click here for Hinde Capital’s 2011 investment letter (45 pages). Excellent commodity/food analysis, worth the long read.

Take special note of the reoccurring reference to measuring commodities against gold to more accurately chart the real value and movement in the market. This will become a valuable calculation to investors in the future from food to real estate. How many gold (or silver) coins does it take to buy a product in 2001 vs. now vs. 2015? This calculation doesn’t work in all cycles, but in the current cycle of collapsing debt and a loss of purchasing power, it is a quick and easy way to determine value.

Also note the wonderful chart on page 41 entitled, Gold: The Currency of First Resort. This chart shows that in 1970, the price of gold overshot M3 money supply. Gold throughout history goes through cycles where they are overvalued and then undervalued vs. the money supply. Gold always corrects at some point in the cycle for the over supply of money in the financial system. Nineteen-eighty was the last time that happened. We will over shoot again. Depending on if they freeze it there to create a new currency or let it fall again will determine when and if you sell gold. The more money they add to the system, the higher the nominal gold price will be. When John Williams talks about the inflation-adjusted gold price should be over $7500 today, this is what he is talking about. Gold is undervalued.

Another gold prediction

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 12:32 pm

Click here for MKS Group’s take on the trading range for gold and silver for 2011.

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