Thursday, October 22, 2009

Gold is Money..just ask Terry Herbert
see www.dailyreckoning.com.au

Ultimately, Gold is money...it's a way to store wealth over the long term.

Just ask Terry Herbert. The man spent his time with a metal detector, looking for treasure in England's green and golden fields. He'd been looking for years, but when he finally found something important it "brought tears to my eyes," he says.

What Mr. Herbert found was perhaps the greatest discovery of buried treasure in English history - 1,500 different artifacts of gold and silver...dagger hilts, crosses, helmet cheek pieces and other items of war booty from the Anglo-Saxon period, about 1,400 years ago.

Had Mr. Herbert stumbled upon some IOUs from a Saxon chieftain, it would have been a remarkable discovery. Its historical value might have been inestimable. But what he found weighed in at 11 pounds of gold. In addition to the value to museums and historians, it has monetary value. Even if you melted it down, erasing all trace of its history and provenance, it would still be worth about $160,000 at today's price - probably about as much as it was when the Saxons stole it.

Gold's "price has been remarkably similar for centuries at a time," wrote Roy W. Jastram in his 1977 book, The Golden Constant. "Its purchasing power in the middle of the twentieth century was very nearly the same as in the midst of the seventeenth century."

Gold outlives paper money, empires, governments...all of us and all our institutions.

Monday, October 19, 2009

Great article by Chris Martenson
http://www.chrismartenson.com


Exponential Money in a Finite World

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I recently attended and presented at the Association for the Study of Peak Oil (ASPO) conference in Denver.

The entire summary of everything I heard boils down to this: We are already past peak oil.

I'll wait for a minute while that sinks in.

(…)

While the implications are enormous, seemingly incalculable and therefore ungraspable, I truly believe that understanding the impact this will have on our economy will illuminate the future for those who take the time to internalize the details.

One of my central contributions centers on the idea that it is our monetary system itself that is out of step with reality. Everything else we see around us economically is merely a symptom, while the cause of our current and future ills is the dependence of our monetary system on perpetual exponential growth. A profound and important set of conclusions immediately result from the acceptance of this argument.

While I spend a lot of time sifting through current data and trying to explain it, this is the primary scaffolding upon which I hang everything else and which drives my long-term views.

(see CM website for rest of article)

Wednesday, October 7, 2009

Spot verses Coin Price of Gold and Silver

One of the most common questions I am asked about gold and silver, (especially small .9999 pure coins), is why the huge price difference between the spot price quoted on the Comex and the coin price. The reason is, there is always a premium for small denominations.

It is a bit like buying meat. You can’ get meat for the price of a cow. You have the premiums involved in dicing and slicing and processing to get it to your table. With smaller cuts, the price is even higher per pound or kg. With YOUnique (for example), their gold and silver are mostly small denominations in order to help people to save in small amounts, amounts they can afford. However, it does cost them a little more for the smaller denominations than it would, say, for a 1kg bar. But who's got a spare US$50K floating around for one of those?

Tuesday, September 29, 2009

All this talk of the recession having come to an end can be confusing to people and also quite deceptive. They now think that it may be time to start that ol' debt ball rolling again. Use the credit card, borrowing off the house. Get in on those cheap airfares and start my housing portfolio maybe.

But wait. What of the fundamentals. Unemployment still rising. I mean who is going to drive this recovery if jobs are disappearing? What of the commercial property price crash coming because people aren't buying as much stuff and because stimulus has created a false dawn? And what of the toxic paper still in the system, just hidden for now with clever accounting practices?

Be careful that what growth you see isn't government funded through stimulus packages. If it is, we are only in a temporary heavenly high. The devil is in the debt still languishing in the system.

Saturday, September 26, 2009

Paper and Hard Assets

Recently, I was trying to explain the concept of gold and silver as hard assets to someone who knew very little. I often get a 'glazed over eyes' reaction. Is it because I am being too detailed or is it because we have never been taught about what real money is?

So what I try to do now in these situations is take out of my pocket two things. A 1/10th oz medallion (available at www.youniquewealth.com/christinesmith/) and a paper money note of, say, $10 or so. I place these on the table in front of them and say, "One of these is paper and one of these is an asset; which one is worth more". Of course it's a loaded question and the answer is always, the GOLD!

So how is it that we have been duped to believing that printed paper, backed only by the faith we have in our governments, has any value whatsoever? Especially in these times when Reserve Banks are trying to 'save' our financial system by printing more, thereby debasing the value of the already nearly valueless. This is why we had a confidence crisis last October 2008. If the people lose confidence in the monetary system, then they will all want their money back. And you know what? It ain't there...just ask your Bank.

I hold the gold and know it has no liability attached. It's mine and it has been recognised as money for 5000 years. I sure will not swap it for bits of paper anytime soon.

Tuesday, June 16, 2009

Investing in Gold for Beginners

By Andrew Smith BBS

You want to put some of your savings into gold? How much should you invest in gold? Should you buy gold and take delivery?

Here I offer 5 tips for the new Gold Investor.

1. How much should I invest in Gold?

This is a personal decision, but most commentators would recommend anything from 5 – 25% of your wealth should be in gold. It depends on how ‘bullish’ you are. Gold is an insurance for the bad times. Gold will never go to zero value. Many other investments have that possibility.

2. How much gold bullion should be in my possession and how much in a vault?

It is sensible to have some physical gold bullion in your possession. The ratio is yours to decide. Small gold bars and gold coins are the best option. You can buy small tradable gold pieces (or gold coins) at YOUnique. This company is reliable with a great track record. We sell .9999 genuine Swiss certified gold.

For bullion storage try The Anglo Far East Company. This company matches your gold investment with the actual physical gold.

3. Where do I store my physical gold bullion?

Most people buy a safe and install it in a secure place in their home. Others put gold into Bank Deposit boxes. Or you can split between the two. With YOUnique you can opt to store your gold pieces in a secure vault in Switzerland using Viamat.

4. When do I sell my gold bullion?

Gold is very liquid and can be quickly sold in times of monetary stress. If you are looking at gold as an investment, then look at some of the better commentators on the internet for advice of when to sell.

5. Who will accept my small gold pieces when I need to trade them or sell them?

Most bullion dealers will be happy to buy pure gold such as that sold by YOUnique. YOUnique will also buy these gold bullion coins back at spot (the gold price at the time) plus 10%. Also, in times of financial collapse gold will be acceptable as money to most people in exchange for goods or services.

Go to : www.YOUnique.co.nz for more information and to buy gold and silver.
If you have and questions please contact me : andrew@younique.co.nz