Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home

Products

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.

..Read More »

The Best of Jim Cook Archive

 
Best of William Histed
May 16, 2011
archive print

 

Silver and gold have come up in conversations I've had with the rank and file
this year.
 
The fact that far more people have their futures depending on paper bank CD's bearing
next to no interest currently, and stocks and mutual funds subject to legalized skimming by managers and directors is evident.
 
I've never heard anyone really serious about finances say ALL of your wealth should be in any one investment area.  We all see what has happened to the real estate market, stock market, CD interest rates, etc.
 
I insist one of the problems with stocks is how management is looting these companies at the expense of shareholders.  I have stock in Citigroup and this year's annual report and prospectus spent more ink and time dealing with how to grant stock to management and directors than any concerns about the welfare of shareowners.  Page after page after page had to do with creating classes of stock to hand to directors, management and employees either free or at reduced prices.
 
Another thing we have to be concerned about with U.S. stocks are the emerging markets of other nations. We are in a world that is going to be increasingly very competitive for U.S. firms.  We no longer set the world market.  It tells US what is going to happen.
 
Something I noticed when everyday people talked off the cuff about gold and silver prices was an almost glee in their voices when they talked about price corrections.  I would ask, "Do you have any silver or gold?"  "Just my wedding ring" was often the curt reply.
  
I don't think the greatest thing in life is to accumulate gold and silver, but it may be necessary to safeguard some of your wealth from insane government spending and deficits.
 
But let me take it a step further: where I want to see gold and silver is in backing government currency again.  It should be used as a medium of exchange, not in bank deposit boxes for years, although if that's what you want to do with it, fine.

 If we had a sound currency, as we once did, a lot of people would not be directly investing in gold and silver...it would be our official government money as the U.S. Constitution indicates it should be.
 
If money were again real money....private investing in gold and silver would be a redundant activity.
 
Recently, Steve Forbes, who has more than an elementary understanding of finances, publicly stated we should be back on the gold standard for our currency, perhaps as early as in five years.  This is because the way our government has abused having "money" printed up, we risk a real world-wise economic tragedy. As the old saying goes, "You can't print gold or silver off a printing press."
 
There is almost a hatred of gold and silver and that provides a good clue as to our current economic headaches.
 
Many people don't want to believe the economic tooth fairy doesn't exist. The worst of these are government leaders around the world who have fiat currencies they can add to at will.  Notices any prices going up lately?
  
Millions of Americans are used to the politicians they elect twisting, turning and altering the paper money supply to create artificial highs. Gold and silver won't let them do that by very much.  Yes, new supplies may be discovered and mined, but that takes real capital, time and work.  In other words, there is intrinsic value in it versus Treasury notes and Federal Reserve notes printed on printing presses.
 
So, we'll see what happens.
 
Those who almost sing with glee when gold or silver undergo price corrections haven't been looking at the decline in the true purchasing power of their paper money savings in the bank or credit union lately. If they thought about that, or what their retirement paper investments will actually purchase in the years ahead, they not not seem so gleeful.  They also have not been looking at the annual percentage fees being deducted from their gross retirement mutual funds and they have not been looking at how publicly owned corporations are being legally looted by the managers and directors in many cases, often through stock option scams.
 
Precious metals are not perfect investments for everyone at all times at every spot price.  But I look at how paper investors are being scammed by artificially low interest rates that are way under the annual loss in purchasing power....when I look at corporate executive salaries....when I see the percents of money skimmed off mutual funds and many retirement plans each year....I see a lot of other problems.
 
This does not even account for a large number of "annuity plans" that take chunks out of your investment to brokers, sales people and the like, and I don't see any perfect investments there, either.