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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SargeK who wrote (2642)	10/8/2006 10:49:26 PM
From: Jamey	Respond to of 50206

"A time proven liquid asset that one retains absolute control over is better than a sleeping aid." FWIW Thanks Sarge. I always appreciate your level headed comments and philosophy on the markets. (I do sleep well at nights) Regards, Santi

To: SargeK who wrote (2642)	10/22/2006 1:30:31 PM
From: SargeK	Read Replies (1) \| Respond to of 50206

Trillion $ Explosion in US Government Fiscal Exposures versus The Future of Gold The long term Bull in PMs is beginning to reawaken after a much needed, nap. Post 9-11, Spot Gold prices have risen 86%and Silver an amazing 188%. It should have surprised no one that these price increases could not forever be maintained and that occasional corrections of significant magnitude should be expected. I suspect that during the current phase of correction, the bottom in both metals has already occurred. Against the backdrop of depreciating dollars in infinite supply and certain and predictable loss in purchasing power; coupled with exponential growth in govenment fiscal (explicit and implicit committments)exposures; the case can be made that there will always be a place for physical PMs in the asset base of a prudent saver/investor. According to the GAO US government fiscal exposures have increased from $20 trillion to $46 trillion in the past 5 years. That is 2 1/2 times the $10 trillion collected by the IRS. This is just another way of saying that DEBT (created and stimulated by defective tax and welfare laws) has provided purchasing power to an American consumer buying (show and tell) crap he doesn't need with money he doesn't have. If anyone thinks this debt oriented economy can continue to expand indefinitely without major, dire consequences, you might also consider waterfront property in Pecos, Texas. If there is better insurance against the anticipated results of an economy that is supported by increasing, unredeemable debt than PMs, I don't know what it is. Like any other investment, consideration has to be given to when and how much to accumulate, hold, and make profitable distributions - to maintain a desired relative position at the lowest possible, net, average asset price. Example: With moderately effective timing 100 ozs of gold could have been accumulated, following 9-11, for approximately $40k. A prudent saver/investor would consider making distribution of 1/2 that amount when the price exceeded $600 per ounce. Had he done so, he would have recouped $30k (that may be reinvested) of the original invested principal and would now own 50 ozs (valued at $30k)at a net cost of $10k. The same principle could be applied to Silver, except in the past 5 years, the profit would be much greater and/or the net amount invested after distribution would be much smaller vis-a-vis current market prices of both metals. Chance (or luck) favors the prepared mind! Good Luck, SargeK By John Koraska, FREE E-Book “Getting Ready for Hard Times” debtism.com