Archive for the 'Gold Investment' Category
Inflation figures are even worse than the free market economists think
Date: July 23rd, 2008, Filed under Gold Investment
Chicago, IL
By A.B. Dada
To free market economists, such as myself, the term inflation means one thing: the increasing of the money supply. In simple terms, this means creating more money than was previously in existence. Inflation has a primary side effect: the increasing of prices. It has another side effect: malinvestments, which mean that investors see increasing prices in a market, so they put more money into that market, causing prices to skyrocket. This is how bubbles are created, usually put at the fault of the central bank that created all the new money. The third effect of inflation is the boom-and-bust economic cycle.
When most “normal” non-economist people talk of inflation, they mean one thing: the rise in prices. Fuel prices are up double in one year; housing prices skyrocketed 100% to even 300% in some markets in 4 years. People call that inflation, even though it is an effect of inflation, or the creation of new money.
Read the rest of this article titled Inflation figures are even worse than the free market economists think at the gold investment site.
Gold is a terrible investment
Date: July 21st, 2008, Filed under Gold Investment
Chicago, IL
By A.B. Dada
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As an avid gold bug, with almost a decade of praising the gospel of gold to the masses (and those closer to me), I continue to get looks of surprise from people I haven’t met in years who yell at me for not being pushier over the years in getting them to buy gold. “Why didn’t you tell me it would go up so much?”
And today, while still an avid goldbug advocating the many reasons to own gold, my new proclamation to these fine folks makes them frown: Gold is a terrible investment. No, not because I feel it will fall in relation to the dollar or other currencies; gold has always been a terrible investment, even when it has skyrocketed almost 400% in less than a decade.
Read this entire article titled Gold is a terrible investment at the gold investment site.
Gold versus Oil Chart/Data update!
Date: July 11th, 2008, Filed under Finances, G.U.N. Updates, Gold Investment, Oil Report
Chicago, IL
By A.B. Dada
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It’s been 6 months since I updated the Gold versus Oil Chart and Data spreadsheet. I am going back to it now and will start posting the old charts daily, because of heavy demand. I didn’t realize people liked them so much.
The spreadsheet is publicly available on Google Docs by visiting this link. I will have all the data through the current week finished this weekend, but I truly hope I can get some volunteers to assist entering data going back to all of history. There is no decent online source for this comparison data, so if you’d like to put in 15 minutes a week (enough to enter in 3-4 months of data for every category), drop me an email.
If you’re not familiar with the charts I provide, I provide them in a way that is completely different from any other site online. Here is a view of the last chart I added, dated 11/06/06 (yes, 1.5 years ago):
How is my chart different? Instead of showing costs in a useless fashion, I show all costs based on a moving ratio to gold’s current price. Why is this important? It shows fluctuations of the other commodities’ prices based on gold’s movement. I also show a barrel of goods price with the same averaged fluctuation.
I feel this provision is better for analyzing prices based SOLELY on market trading (ignoring supply and demand factors). For those of us who believe that the dollar’s fall is the primary reason for commodity price increases, this chart gives you a glimpse into that reality. When prices rise and fall together, they can often times be related directly to the fall in the dollar’s value. When prices rise and fall separately, they can often be related directly to supply/demand issues, and somewhat on speculation.
If you’re interested in helping out, drop that email. It’s not a huge investment of your time, but it will create a wonderful resource for others to share.
Some sites that are coming soon to the Global Unanimocracy Network:
Taser News (reborn)
We’re also looking for co-bloggers to add some articles on a weekly basis. If you’re interested in writing 2-3 articles per week for a small salary, you can email me at the same address above. Topics vary across the entire spectrum of the Global Unanimocracy Network.
Gold, The Fed, Bear Stearns, Bailouts
Date: March 16th, 2008, Filed under Gold Investment
It’s been a long while since my last update, mostly because life has become increasingly busy. My church printing co-op is growing leaps and bounds, my consulting business is still showing growth, and travel has taken a lot out of me. I’m putting about 70 hours a week into preparing for a fall in future income, and it is paying dividends today.
The gold market continues to shock me, but not because I feel it is in bubble mode. When the stock market was in bubble mode, everyone and their mother was talking stocks — including friends of mine who were not really able to invest. When the bubble moved to housing, those same people were talking houses. No one I know talks about gold, except those who have listened to me for the past 5 years or so. I know of many people who cashed in their gold holdings in 2007, selling with a 250-400% profit over a half decade. Good for them.
Read this entire article at the gold investment site.
The Battle for the Dollar
Date: December 3rd, 2007, Filed under Gold Investment
Times Online (UK) has a reasonable article titled Dollar faces new sell-off if Gulf states end greenback pegs that discusses the concern of some Middle East oil-producing States in divesting themselves of the so-called dollar peg. Currently, the petrodollar is the primary currency used to purchase oil. This petrodollar is already on its way out as Iran and Venezuela are looking to more currencies to be used to purchase oil. This can have a big negative consequence on the value of the dollar as more foreign States start using other currencies to hoard and redeem for oil. The concern here in the States is that the dollar’s loss as the petro reserve currency would cause oil prices to skyrocket, meaning a weaker dollar here and abroad. This view is justified, but there are many caveats to supporting it fully.
Read the rest of this article at the gold investment site.
Save now, pay off debt later — a theoretical analysis
Date: November 30th, 2007, Filed under Gold Investment
I received quite a few emails regarding my post from a few days ago, titled Preparing for the Worsening Credit Crunch. I forgot to enable comments, oops.
One of the emails was added as a comment because I had asked her to. A regular reader, Lane Petersen, emailed me the following question:
this advice goes against everything ive ever read from ramsey and other financial gurus. id love to see you prove them wrong tho, because we are in big debt and following ramsey’s advice and each month we have nothing left over and it is depressing. i read it twice and it does sound like it makes more sense in a harder economy. can i email you my financials and have you tell me how to go over payments?
Read the rest of this article at the gold investment site.
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