Recent content by .toe

AKA the 19th hole?!

Gold is better than productive. Gold keeps productivity honest. Without it you have no way of knowing whether you're sustainably productive, or just faking it. Warren Buffet argues that gold is not productive (in order to protect his tax status at the expense of others). But gold has been...

I wouldn't call this PARKING. I'd Say it's an INVESTMENT in a growth industry, money printing. I'd go so far as to say that money printing is about the only growth industry today, without it every country would be like Greece (which is in this predicament (in part), because it can't print...

You invest because you think the company behind your investment is doing a good job at driving profits, which they either pay you as a divident or reinvest in their assets. I think the worlds governments are doing a good job of driving profits in my gold investments :)

I don't see the gold play as being about down-trends or price/asset deflation. It's only about deflation so long as the policy response could bring inflation. So far money printing has not brought noticable price inflation because money velocity is still falling, people are too scared to spend...

I hope so to Sunfish, I've been stocking up.

Yes, and the last time gold stocks were this low compared to gold was at the end of 2008. Over the following year as gold rebounded, gold stocks doubled.

Looking at the chart below I can only imagine that behind closed doors at the RBA & Aus Treasury, the view of the worlds future is pretty bleak. - The ASX200 (^AXJO) started underperforming the S&P500 (^GSPC) beginning Oct 2010 - AUD/USD went above parity in Oct 2010 - The housing...

I use Realestate Investar for exactly that reason. The great search engine doesn't hurt either.

Since Williams was the guy who used to calculate these figures for the US government in the 80s & he simply inserts the current government figures into the formula the government itself used in the 80s, then I'd say the figures accurately reflect the way the figures used to be calculated by the...

Coutesy of Shadowstats.com, John Williams is an ex US government economist. This chart tracks US inflation as it was calculated in the 1980s. There have been many changes since then. For example as of the 90s, if meat goes up a long way they substitute the price of hamburger meat. If the...

Agreed, oil has upside risk right now. I'm just taking a wild stab at an alternative longer view :cool:

My assertion isn't that Gold causes anything, it's that Gold is a tiny market compared to bonds, so there are implications. I agree that the price of oil leads markets. Especially with a ZIRP, oil is the new Fed funds rate. So what will happen to oil when Assad is thrown out & the Iranian...

My guess would be because it's the safest of the few investments that are liquid enough. Gold for example is a very small market, about 1% of the bond markets. In the eighties it went to $850 while only absorbing 3% of the bond market. Add to that the fact the Fed said it would keep it's ZIRP...

There seems to be disagreement about US Treasuries though. Aparently Bill Gross & Warren Buffet see this differently. Gross says there's no where else that's safe for all that money to go. Buffet says interest rates are lower than inflation & anyway the reason why treasuries are high is cause...