9/13/2009
If you are holding dollars, you are taking a big risk.
I just want to do a short blog about gold and silver. Now it’s been hyped up right now in the media and all over the place. Everyone’s talking about gold and silver. Gold’s hit basically a thousand dollars, it’s hovering right around that range.
Now I’m sticking to my prediction that I made in July, which just was last month. I said that gold would rally into the fall and winter, if the stock market wasn’t going down. If the stock market’s flat, if the stock market’s going up, I think gold will continue to rally and silver. Now if the stock market has a major pull back….. excuse me, when it has its major pull back in the next six months in my opinion, looking at the macroeconomics side of it – can’t get into that now, I have though in other blogs.
When the stock market goes into a significant decline, I think gold and silver are going to feel the effects of people selling off assets and panicking again, so you’re going to see a pull back in gold and silver in the short term. Now do I care about a short term pull back for gold and silver? No, to be perfectly honest with you, I save in silver. So I don’t care if silver is selling for $21 an ounce or $9 an ounce, I’m saving 100% of my savings in silver.
Now I have my real estate business… but any profits I have immediately throw it back into my business, other business ventures, or gold/silver. I consider silver my savings, so the money I allocate every month to save. All silver. I don’t care if it’s going up or down. Now in the short term, as far as a year from now, you’re going to see inflationary effects and of course the chaos of the banking crisis escalate. And you’ll see gold and silver rise again. So I don’t- that’s one of the – another reason I don’t really care about the short term prospects for them. Now looking at the long term, and no, I’m not pulling the Edwards Jones financial planner bit with you, you know where no matter what happens they go, “Well, you know, I said the long term.”
Look, my long term is five years. My really, really long term is ten to twenty years. Now ten to twenty years, I think that silver is just going to be an unbelievable investment that you’ll make if you bought it today. Well over a thousand dollars an ounce in today’s dollar, without a doubt. In five years, it may even be there – and that’s simply off supply and demand. But because of the banking crisis and significant decline or complete loss of value that the US dollar is going to experience over just the next five years. That’s why you want to get out of the dollar and into gold and silver.
Now, you know, just 24 months ago, you know, talking about the US dollar not being the world reserve currency was crazy talk. It was a conspiracy theory, you know, people were running around, uh, with “Amero” websites or “One World Currency” – those were the conspiracy theories. Well, guess what? Russia, China, Brazil – basically the emerging markets that are the future of the global economy – they’re all talking about a post-dollar world reserve currency. In fact, China has even purchased some IMF bonds in the last two weeks – 15 billion, to be exact. The UN came out with a panel, I think it was yesterday or two days ago, that said that the world needs to look beyond the dollar. That it’s not going to happen overnight, but the dollar as a world reserve currency is a flawed system and we’re going to have a currency crisis in the future if we kept it.
So, all this stuff coming out, it went from nothing to all the sudden everybody that’s important as far as the decision makers, the leaders, whether you like them or not, are talking about a post-dollar world. So, is this going to happen? To me, it’s baked in the cake. So if you’re one of those people, and I know this is hard because especially if you are one of those people who hold dollars, it’s so hard to convince you because when you buy silver or gold your stomach gets sick because you watch it go from 980 to 1050 down to 750 back up to 1000 and soon 1500. So, maybe you don’t have stomach for that, I understand you have trouble with that. Maybe you need to look at the Merk hard currency fund or talk to CSLfinancialgroup.net and talk to those guys about getting into something that might be less volatile. But for those of you just holding dollars and CDs, my goodness you guys, you don’t understand when you hold that $2000 and you see it’s $2000 the next month and the next month, you’re losing value. You’re losing real value.
They’ve tricked you – it’s a trick. It only appears that you haven’t lost any money, but you’re losing money every month. In fact, even against other currencies you’re losing value. The Dollar Index has been in a significant bear market for over a decade. Now if you look at the dollar price against real things, it has been a disaster – it’s a disaster.
Over the last 80 – 90 years, the dollar has lost 97% of its purchasing power. So the price against real things, it’s an absolute disaster. The price against other illusions – other fiat currencies – it’s been in a bear market. So gold and silver are the ultimate safe havens, ultimate safe havens. Yes! They’re going to radically go up and down, but in the end gold’s going to way, way up, silver’s going to go probably even higher on a percentage basis. So that’s my quick conversation about gold and silver. I hope you take it more seriously. Get out of those CDs. If you don’t know what a CD stands for, CD stands for “Certificate of Depreciation”, because that’s what’s happening – you’re losing real value.
Jeff Coga
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