What's In Your Wallet?
Gains by year, from 2001-2010 respectively: 2.5%, 24.7%, 19.6%, 5.2%, 18.2%, 22.8%, 31.4%, 5.7%, 23.9% (YTD) 10.5%
by Davos Sherman Okst | June 24, 2010Print
What else has averaged "gains" of 16.4% over the past 10 years?
I want to be upfront. I HATE gold. I'd rather my money be put to work solving our real problems: Debt, inability to live sustainably, energy (as in Peak Oil), but the truth of the matter is all we create are Stupidity Crisises, bubbles and debt.
Stupidity Crisis on top of Stupidity Crisis:
The currency basket, filled with equal weights of worthless US dollars, euros, Swiss francs, yuans, Indian2 Goldrupees, British pounds, and Australian dollars, are, for the first time in history sledding down Fiat Hill heading in unison towards their intrinsic value of 0.
A tabagogen ride to hell!
Or, are you worried about gold being in a bubble?
0.8% of all global financial assets are invested in gold, gold shares, and ETFs. 1932 it was 20%, in the 1980s 26%.
TODAY? .8% POINT 8 Percent!
IF 2% were allocated today, demand would amount to the total global mining output of 34 consecutive years.
Gold in a bubble? I seriously don't think so.
This week it was announced that the Congressional Budget for Fiscal 2011 won't be published. We have 13 trillion in public debt, 19 trillion if you count the GSE debt (and you should), another 109 trillion in off balance sheet liabilities. With 128 trillion dollars of debt and an income of 2 trillion we can forget about anything getting better anytime soon.
Gold isn't gaining. Gold has gone from commodity to currency, and the only currency aside from silver that can't be printed digitally on Ben Bernanke's Fiat server.
In Summary: My faith in the 5Gs: (G*(religious edit)d, Gold, Guns, Grub & The Government Will Continue to Screw It Up) remains strong.
Disclaimer: I have NO paper in my wallet!
Note: Some of the sources were from the Erste Special Gold Report.
Copyright © 2010 Davos Sherman Okst
Davos Sherman Okst | Bernardston, MA USA | Email