Truth and freedom have begun to be restored, but we've still got a long way to go considering Silver is now more rare than Gold!!

It's been three and a half years since writing my "for the record" paragraph at the bottom of this page, echoing my Gold&Silver recommendation over half a decade ago.  In the past five years Gold&Silver have doubled, but mostly it's just been that the US$ has been declining - the measuring stick, as it were, is getting shorter.  With the USA printing paper at the rate of about a Billion$/day! the competing currency devaluations Mr. Dines has talked about for years are becoming increasingly evident.  The financial picture would be much clearer if the price of Gold (and especially Silver) were not being manipulated as GATA asserts.  (You'll find very interesting speculation on GATA's website.)  If you haven't visited GATA's website, you should.  Get their GoldRush21 DVD and at least watch the 24min. summary.  In the nine months since GoldRush21, Gold went from $435 to $725 (225%/annum) and Silver doubled from $7 to $15 (275%/annum), but I think "you ain't seen nothin' yet."  On a percentage basis, I expect Silver to be even more profitable than Gold.  This chart gives a great overview of what I'm talking about, while this page provides an excellent summary of why I recommend Silver.

To see Gold (7yrs ago to 2yrs ago) from a Canadian perspective, click here or on the thumbnail above.  Note the 2001-9-11 gap up and that the Cdn$ price tracked the US$ price until the end of 2002.  It's that uncoupling, along with $60 oil, that "let" me buy my condo (in oil-rich Alberta) while remaining bearish on real estate in the USA.  For the last several years, Gold&Silver have been moving up in currencies other than the US$ - today's Canadian Gold chart from Kitco is above.  For a better look at the breakout in the price of Gold worldwide, check out this end of 2005 article by Adam Hamilton.  

The USA needs about $500 billion a year to finance its current account deficit, and another half trillion beyond what it collects in taxes for government spending.  To date, the arrangement has been straightforward, foreign investors - primarily the Chinese and Japanese - sell their goods to the U.S., and then use the dollars to buy U.S. T-bills.  This has helped keep bond prices high and long-term interest rates low.  Unfortunately, all foreign holders of U.S. treasuries have endured massive losses because the American dollar has dropped so dramatically against their home currencies.  What happens when it's no longer advantageous for China and Japan to prop up the US$ and they stop buying - or even worse, selling?  Bond prices would drop and long-term interest rates would rise dramatically as investors look to be compensated for the currency risk.  

The USA - and to a large degree the rest of the world - is in the early stages of an economic calamity far beyond anything this world has ever seen.  I just read an article where Robert Kiyosaki made a good analogy, referring to the United States as the Titanic.  Those of us who insist - like the constitution of the United States - that only Gold&Silver are money, and that printing more and more worthless paper, going further and further into debt, will lead to disaster, are dismissed as "gold bugs" like those who warned of icebergs.  Back in 1971 Captain Nixon ordered full speed ahead and we hit the iceberg at the turn of the century when the stock market crashed.  The Canadian dollar - itself evaporating at a rate double or triple the the supposed inflation rate - is now at par with the United States dollar.  The US$ has fallen 17% just in the last six months - the "SS USA" is taking on water.  It's too late to turn the ship - all that we can do now is get to the Gold&Silver lifeboat.        

About three years ago I advised my family and friends to get out of the stock market (especially mutual funds) and into Gold (and Silver) - mining stocks if they wanted to be more aggressive.  In a couple of months the S&P had recovered from about where it is now to 1300 or so, and I figured the timing was good to get out if you hadn't gotten out already.  Gold was about $300 then - as I write this, at the end of April 2004, it's $385, but a mere three weeks ago it was over $425.  Silver's correction was even more dramatic - from $5.00 late last year to near $8.50 to below $6.00.  Meanwhile the S&P has been in a bear market rally from below 800 a year ago.  Many analysts say that was the start of a new bull market and we're going higher from here - I disagree.  In my opinion this is your last best chance to get out of stocks and into Gold.  Wednesday provided a prime example as Nortel dropped 1/3 - a loss of $9 Billion!  It's easy in hind-sight to say you predicted something, so I'm putting this paragraph here for anyone to see until 2010 (my favorite movie).  I'm also restating my two main predictions from over three years ago; that we're going to see "four figure Gold" (ie. over $1000) and the Dow and Gold will be "equal" (both at 3000 for example).  I've also said for years that real estate is a bubble that's going to do what all bubbles do.  I stand by that and add that interest rates are going up.  Don't buy bonds!   

(Below is my decades long Gold chart and personal portfolio pie chart at time of writing - April 2004 )

 Updated:   Sept 2007                                                           The first thing on this "non-LEGO" page was my sgi flat panel display, hence the file name...