Most places you go will spew out your standard invest in the market and over time you will see growth strategy. However, there are serious inherent flaws in this strategy, namely inflation.
I recently read "Crash Proof, How to Profit from the Coming Economic Collapse" by Peter Schiff, and his insights are golden.
There is mounds of raw data out there, and the best thing you can do is try and interpret that data into a coherent strategy and follow that strategy. My strategy is based on the premise that the dollar is dying and I'm taking what I think is the optimal strategy to maintain profits in this environment.
The value of precious metal is in the labor that it took to find and mine them as well as the the effort to refine them. That gives the metals objective value.
Metals like tin and commodities like oil are wanted for their utility alone. Precious metals have both utility and ascetics pushing their value.
Gold rush erupts over financial crisis
By Nick Gardner
The Daily Telegraph
January 10, 2009 12:01am
All that glitters ... investors are are ploughing billions of dollars into gold to fend off the financial crisis.
• Record rush on gold in Australia
• Investors convinced gold's a safe haven
• Only time will tell if it is
THE global financial crisis has sparked a new gold rush.
Worried investors seeking a safe home for their money are ploughing billions of dollars into the precious metal in a bid to preserve their wealth, The Daily Telegraph reports.
Demand has now reached such unprecedented levels that the Perth Mint, Australia's biggest wholesaler of gold coins and bars, has been forced to ration its sales.
Perth Mint's bullion sales rose 194 per cent in the December quarter compared with the corresponding period in 2007, while silver bullion sales were up 140 per cent.
The mint has suspended sales of all gold bars and all bullion coins - except its 1oz "Kangaroo" gold bullion coin.
On Monday, after a three-month suspension, it will expand its range of bullion coins for sale but the restrictions remain in place for minted gold bullion bars so the mint can sell some gold to as many customers as possible.
"We are working three shifts a day, six days a week, and still can't keep up with demand," Perth Mint CEO Ed Harbuz said. "I've never known anything like this in the precious metals market.
"We would be working Sundays too but we are having difficulty getting enough staff."
Non-minted gold in the form of cast bars produced by Perth Mint's local refinery can still be bought, although customers who want the bigger bars often have to wait several weeks.
One customer recently bought $500,000 worth of bullion and wanted it delivered so he could hold it personally.
"For very big orders we normally keep the gold in our depository for security reasons," Mr Harbuz said.
"Orders of $10 million or more are not unusual. Often the orders are much larger if we are dealing with pension funds or institutional investors."
I think Jake may be on to something with the Aussie Au rush and his insights on REEs. When the economy craps out, there won't be much capital for opening new mines, ya know. It makes sense that people in the know would procure needed elements before hand.
Absolute bloodbath today:
Yamana Gold Inc. (USA) AUY 6.58 -0.45 (-6.40%) -11.10%
Pengrowth Energy Trust (USA) PGH 7.93 -0.17 (-2.10%) -1.32%
SPDR Gold Trust (ETF) GLD 81.22 -2.70 (-3.22%) -2.24%
iShares Silver Trust (ETF) SLV 10.78* -0.32 (-2.86%)-0.80%
CurrencyShares Australian... FXA 68.51 -2.01 (-2.85%) 2.70%
USAA S&P 500 Index Member USSPX 13.33 -0.29 (-2.13%) 3.36%
Johnson & Johnson JNJ 58.94-0.11 (-0.19%) -0.27%