Observations, Calculations, and Values
One of the principal reasons investors typically cite for not holding their money in gold, and instead saving their cash in a government sponsored currency like Dollars, Euros, or Yen, is that gold doesn’t pay interest.
I’ve struggled with this idea for a long time. Dollars don’t earn interest by themselves either. They only acquire their [...]
Over the last several months, gold has largely held its own against the US dollar, as oil prices have cratered in dollar terms. But, we’ve also seen the dollar strengthen against other world currencies. I agree with the arguments of Peter Schiff that the recent strength of the dollar make little [...]
In hindsight, the case for low yielding gold looks pretty compelling in hindsight, especially when considered against holdings of other liquid assets, like low yielding treasuries. It’s hard for me to believe that over the last year, gold has outperfomed the S&P by 40%.
Source:
http://seekingalpha.com/article/111223-gold-topped-all-currencies-in-2008?source=yahoo
I never know when we’re at a bottom. And I certainly don’t know when we’re at a top. It’s much easier to say that we’re not at a top, or not at a bottom, and act accordingly.
Today’s case in point - gasoline prices. Here’s how I constructed a simple hedge for my [...]
I recently finished “The Secret History of the American Empire“, which the second
economics/history/autobiography book by John Perkins. His first, “Confessions of an Economic Hitman“, was a best seller. Years ago, as a project finance guy, I also traveled the world putting deals together in interesting places, so Perkins strikes a little close to [...]
In looking at the above chart, I was struck by how, over the last five years, gold has approximately doubled in value against the dollar. It works out to about a 15% compound annual return. Not bad for a relatively liquid investment with no to low management fees, tax deferred status, and virtually [...]