Gold and Silver vs. Hope and Change. Place Your Bets!

By: GE Christenson | Wed, Nov 13, 2013
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The BIG Perspective: Examine the following "Point & Figure" chart from Ron Rosen. This type of chart plots price on the "y" axis while the "x" axis shows time but without uniform distance between years. The long term trend has been up since 1970 and 2001, while the intermediate trend has been down for the past 26 months.

Gold 1970-2013

The following are logarithmic charts of the official U.S. national debt, gold, silver, and crude oil for the past three to four decades.

US Official National Debt 1970-2013

Gold 1978-2013

Silver: 1978-2013

Crude Oil: 1985-2013

Clearly the long term trends are up. Why?

The inevitable conclusion is that, over the long term, money supply, debt, and prices will increase until there is a systemic reset or crash. What will endure throughout the inevitable inflation, deflation, and crash? Gold and silver will endure. Paper assets are only as good as the collateral backing them, and many of those assets could vaporize in a systemic reset. Gold and silver will survive and maintain their value, while the dollar and Treasury Debt may lose a good portion of their value and purchasing power.


Hope & Change?

Hope is not a good basis for an investment plan. Hope is not a viable foundation for a political philosophy or for the actions of a government. Hope will not pay the bills, reduce the debt, or return sanity to an out-of-control spending process.

Ask yourself how well these are working:

As for "CHANGE" - it can be positive or negative. Not all change is good. We "HOPED" for better government and we received Obamacare. Was that a positive change?

Gee, we hope that the 10 Million or so people whose insurance plans will be cancelled and who will be forced to purchase new health insurance policies at much higher rates are okay with the change, increased deductibles and the increased costs. We hope they don't get upset or angry or think someone lied to them.


Gold and Silver!

Dr. Phil says that the best predictor of future behavior is relevant past behavior. Using that thought it seems clear that:


So, place your bets!

Paper currency or gold and silver.
Debt based paper assets or real money - gold and silver.
Political promises or something of lasting value.
Futures contracts on a corrupt exchange or land.
Credit card debt or stacked silver in a safe.
Social security income in a decade or gold in hand now.
Obamacare or good health.
Nutritionally empty fast food or healthy nutritious food.
Artificial and phony or real and valuable.
Reality television or the Holy Bible.

 

Most people will stick with what they know - paper currency, debt based paper assets, political promises, hope and change, and reality television. The choice is yours, but you will have a better financial future and more peace of mind if you invest in something real and valuable.

 


More to consider:

Created Currencies ... Are Not Gold!
We Have Been Warned - Part 3
What You Think Is True Might Be False and Costly

 


 

GE Christenson

Author: GE Christenson

GE Christenson aka Deviant Investor
www.deviantinvestor.com

GE Christenson

I am a retired accountant and business manager who has 30 years of experience studying markets, investing, and trading futures and stocks. I have made and lost money during my investing career, and those successes and losses have taught me about timing markets, risk management, government created inflation, and market crashes. I currently invest for the long term, and I swing trade (in a trade from one to four weeks) stocks and ETFs using both fundamental and technical analysis. I offer opinions and commentary, but not investment advice.

Years ago I did graduate work in physics (all but dissertation) so I strongly believe in analysis, objective facts, and rational decisions based on hard data. I currently live in Texas with my wife. Previously, I spent 20 years in Barrow, Alaska, the northernmost community in the United States, 330 miles north of the Arctic Circle.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/