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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

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 Howard Ruff
October 14, 2011
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INVESTMENTS: CRASHING GOLD AND SILVER

A recent article about gold demonstrated that in their Wall Street orientation they simply don’t understand much about gold.

“A fortnight ago gold recorded its worst week since 1983. Skeptics are now questioning gold’s credentials as one of the few shelters from financial storms. Some investors have begun to worry about whether this is the end of gold’s spectacular surge.”

I have not advocated the purchase of gold because I believe the average person can’t afford it. But gold crashed big time in September. People have bought gold either as an alternative to the dollar as a store of value or as blanket coverage against all the world’s ills.

When I worked as a stock broker many years ago, I learned that the way to make money in the investment world was to buy low and sell high.

With gold, everyone wants to buy high. They are thrilled to death when gold goes crazy, and they get scared when gold crashes and burns.

Gold and silver are both important. Gold is a very important indicator, even though I don’t advocate buying it. Silver has been down even worse than gold percentagewise in the last couple of weeks giving us another opportunity to buy.

I recently received a call from a financial show in Texas. They asked me if I was turning sour on the metals because they had taken a big nose dive. My answer was NO! This is simply an opportunity. If you are supposed to buy low and sell high, how can you buy low unless it is in disfavor?

Gold and silver will come back big time. This includes the mining stocks which have taken a worse beating percentagewise than the metals.

Gold is not a general hedge against calamity; it is a hedge against the loss of the purchasing power of paper money. It’s the opposite of paper. Paper money is still a means of exchange, but it is no longer a store of value. Gold and silver are stores
of value and will again become a means of exchange.

Don’t panic, but look at these gyrations as a real opportunity. Gird up your loins and start buying silver and mining stocks as long as they are depressed. Down the road you will brag about how smart you were.