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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Best of Aubie Baltin
March 5, 2012
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Warren Buffett has once again reaffirmed his opinion about gold’s “significant shortcomings.”  He said that gold is “neither of mu cue nor procreative.”  He also suggested that gold was a bubble and compared it to the internet stock and housing bubbles.  “The majority of the world’s investors and public were chasing Real Estate; less than 2% own any gold.”  His thoughts regarding gold are a rehash of similar negative views on gold repeated in recent years.  Once again, he shows he does not understand gold and real diversification.  He does not or chooses not to understand gold as a safe haven asset in a portfolio or more likely he’s acting as just a “shill” for the administration. 

The less informed continue to have a blinkered anti-gold bias.  They continue to focus solely on gold’s nominal price and assert it is a bubble.

How Can Gold Be In A Bubble When Less Than  2% of the World’s Investible Funds Are Invested in Gold?

The uninformed refuse to see gold as a form of financial insurance in a diversified portfolio.  This is changing slowly with a very gradual growing appreciation of gold’s importance as a safe haven asset in a world of massive paper and digital money creation.  The coming Greek March 20th deadline could be the Golden Rocket’s Launch.

There’s no doubt about it, the stock market had a fantastic January!  But here’s the bad news: Companies in the S&P 500 that released their earnings reports in January (with 49% of S&P 500 companies reporting so far), have had their worst performance since the economy supposedly rebounded (source: Financial Post).

Just 46% of those companies in the S&P 500 that have reported fourth-quarter 2011 earnings so far have beat market expectations – the lowest reading since the third quarter of 2008. (What should you have been doing back in 2008?) Many companies were citing increased input costs and a new general economic slowdown worldwide because of the Euro-Zone credit crisis as factors that affected their reports.

While it will take a few more weeks for most S&P 500 companies to have the visibility required to make more reliable forecasts for the current year, many analysts are now expecting that revisions to the S&P 500 earnings will be mostly to the downside in 2012.