Tuesday, March 29, 2011

The Dow is Crashing in terms of Gold, Oil and many other "Commodities"


I've been reading Michael Maloney's "no baloney" book, Guide to Investing in Gold and Silver. Excellent historical and current perspectives on the realities of our financial system. Doing more research on his chapter "What's the Value," one finds an expanded version of The Dow is Crashing, which is VERY enlightening.

All this decade, pundits have been watching the Dow in terms of dollars as if it were a guide to the health of the economy. However, in terms of most other commodities we use, often daily, it diving quickly. In Gold, it is about a fifth of what is was entering 2000. In Silver or Oil, it is worse.

He goes further about our manipulated Cost of Living index, which is more like 12% than the 3% used by the Feds (or the 0% the last two years according to Social Security).

Reading it, you'll be hard-pressed not to agree that Gold and Silver are the great hedges against inflation; in fact, it is our only real money.

Our start-up, GoldPanAm.com, we are factoring in a much higher inflation rate in our costs. For my consulting work, I'm asking for payment in Gold or Silver, since it is the most negotiable, rapidly-growing commodity. (I'm finding a few brokers offering only a 3% spread between buy and sell prices.)

In addition, chart analysis of Silver this century shows a great positive trend change that could easily be sustained given run-away Federal spending.

Once you've read the article, and perhaps the book, please post your comments here.

Also, note the previous post: YOUR articles would be valuable here in our Prosper Systems blog and other publishings. Don't have an article? Focused posts on Facebook, Twitter, LinkedIn and other sites will create an article in short time. Expanding that, a few articles make a booklet to sell, post on your site, give as a list builder on the 'Net, as well as make a chapter for your next book.

Keep writing and accumulating, then let's collaborate: I'll edit and publish it.

More on Precious Metals and Collaboration is subsequent posts. Have a great week, Kenton


1 comment:

Anonymous said...

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