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Hoard Gold or Food? Inflation concerns remain.

Hoard Gold or Food? Inflation concerns remain.

While gold has had a fantastic run in price appreciation over the last 10 years and even more importantly the last 2 or 3 –lack food source starve gold bug investor increase cost we may be over looking commodities that are experiencing even faster growth.

Elizabeth Campbell published an article today at Bloomberg.com titled:

New Norm High Food Costs Boost Supply Risk as World Hunger Grows

Food as a “whole” is now at all time high levels of price, relative to the spending power of consumers. Ms. Campbell writes:

“Even after the World Bank’s food-price index slipped from a record in July, the measure was still 7 percent higher in October than a year earlier, the Washington-based lender said today in a report. While costs have dropped in recent months, fats and oils still are 12 percent more expensive than a year earlier, and grains are “very close” to the all-time high reached in 2008, the bank said.”

For those that have consistently added gold and silver bullion to their investments over the last few years, there is often much cajoling by their friends and family who say things like, “Well that’s great you’ve got all that gold – but when disaster hits you sure can’t eat it!”

Most bullion investors / hoarders will point out that you can’t eat paper money or coins either, but that doesn’t stop people from “saving for a rainy day”. What gold bugs will tell you is that the precious metal is more likely to hold it’s value and even increase relative to paper currency as inflation continues it’s rise.

dividend cash paying stocks daily dividend investor blog siteAs we see the price of basic necessities such as food and water continue to become more scarce and prices continue to rise – it will be those hard assets such as gold, silver, real estate and oil that will continue to hold and increase in value. And only those with income sources other than traditional 9 to 5 employment, such as rental property, dividend paying stocks and royalties will continue to thrive.

Knowing that even today, many people on the planet go without enough to eat on a daily basis, it’s fairly obvious that this problem is only getting worse not better.

Hustle + New York Sidewalk Dirt = Gold Baby!

Hustle + New York Sidewalk Dirt = Gold Baby!

Raffi Stepanian shows that with a little old fashion hustle, any one can make a living as a gold miner – even in New York City!

It turns out that the sidewalks of the jewelry district are filled and re-filled daily with gold, silver and platinum dust – not to mention precious stones as well. All of which comes off the clothing of the workers in the many jewelry stores along 47th Street in New York City.

Who knew you could find a pot of gold in the city?

10 Reasons To Buy Gold or not? Take a look.

The see-saw action continues – after last week’s drop to the $1500 level, we’re back above $1600 today. I’m gonna hold out to see if we can get to the $1400 level before I pull the trigger on any more gold purchases.

In the mean time, here’s a little video I found online that gives 10 good reasons why you shouldn’t buy gold.

It’s a little tongue and cheek, but he makes some good points. I’m not promoting that you buy gold from the US Gold Bureau (whatever that is). I’m usually a little leery of outfits that try to use quasi-government sounding names like this – but take a look.

We have arrived…

We have arrived…gold bug investor newt gingrich president gold eagle coin collector hoard bullion

Newt Gingrich is running for President, MF Global some how “mis-placed” $1 Billion U.S. Dollars, economists are calling for another recession and gold drops over $80/ounce, it’s third fall in three days. Gold has now hit the $1500 range.

With the Fed now conceding that the economy has remained weaker than anticipated and hinting that QE3 may just be weeks away (let’s get through this whole holiday thing first!) – the dollar will continue to collapse and that can mean only one thing. Continued rising inflation is on the way.

Zimbabwe Calling…

gold bug investor zimbabwe hyper inflation gold coin collector rare pcgs ngc eagle mintWith the Fed in control it’s not likely we’ll see anything close to the hyperinflation of Zimbabwe – but when the inflation needles starts to rise you better be holding some hard assets if you hope to survive – we’re talking real estate and gold. Real estate has it’s place, obviously you can live on your gold, but it’s expensive and not very liquid.

Buying Gold Eagles

I’m getting ready to add a few U.S. Gold Eagle 1 oz. coins to my holdings. As of gold bug eagle investor coin proof mint pcgs ngs collector rare investment passivethis writing, with Gold is trading at $1583/ounce, Kitco is quoting $1670.59 and Blanchard is quoting $1649.61. I’ll be watching the quotes closely to see if I can pickup a few Gold Eagles for under $1600/ounce.

What are you buying?

Are you buying or selling? Holding what you’ve already got? I’d love to hear your thoughts and ideas about gold!

Gold Drops Again – Approaches $1600 Mark

Gold Drops Again – Approaches $1600 Mark

gold price drops rises gold bug investor hard metal commodity coins rareJust when it looked like gold was going to breakout past $1800/ounce, it turns around dropping over $70/ounce in 2 days to settle at $1634/ounce.

Volatility is the name of the game right now both in stocks and gold worldwide. One day the news is good, the next, not so good.


Adding to Positions

I’m looking to add some more gold to my current holdings but like Jim Rogers, I’m waiting for a significant pull-back before placing the trade. Inflationary pressures continue to increase day by day, which would indicate gold is already at a near-term low. While I do believe a long term uptrend in gold will continue, I’m willing to miss out on buying now, for the chance to buy lower in the future.gold coins add holdings rare pcgs ngc certified eagle mint

I’m looking to buy somewhere in the $1500-$1600/ounce range and I think a lot of others are too. There is likely enough interest at $1500/ounce – which is about 25% off of gold’s recent highs in the low $1900’s, that any pull-back to that price range would likely be short lived before the price is bid back up again.

Cash in hand

cash in hand buys gold bars coins rare ngc pcgs eagle mint proof metalGold moves quick, so if you are looking to buy – pick your price point and get your cash ready. Just as gold only stayed briefly at the $1750+ level, it won’t stay long at $1500 should it get there.

The only question that remains unanswered is what kind of gold to buy? I’ll discuss some gold options in a future post – however, I will be staying away from any ETF (exchange traded fund) or any other “paper” version of gold. For me, only the real metal in my hand will do!

If I wanted worthless “paper” gold I’d just hold on to my cash!

The New Alaska Gold Rush Is On!

lost mine gold rush bug investor pan stake claime klondike rush

With gold well above the $1500/ounce mark, the new gold rush is on, especially in places like Alaska.

With so much untouched land, any gold bug with a desire to “Strike it Rich!” has thought about how they can claim some of that Klondike gold for themselves.

However, for most people  one of three things will probably stop them from even trying to find gold in Alaska:

  • Time – Most folks work a 9 to 5 job and just don’t have the time to contemplate such an undertaking
  • Expertise – Do you know how run a bulldozer or backhoe? I know I don’t – so for me I’m sticking to panning the local riverbeds.
  • Money – Ah, yes money – the great equalizer. Even if you have the time and the experience, so you have the $100,000 or more it would take to acquire the heavy equipment, dredges, pumps and generators not to mentiongold rush alaska discovery tv channel bug investor miner pan creek claim klondike the fuel to run all of it?

The TV Fantasy

It’s a real eye opener to watch TV shows like Gold Rush Alaska on the Discovery Channel. These guys have bet hundreds of thousands of dollars of their family’s net-worth, taking a chance to strike it rich.

Alaska is a harsh place – with the cold temperatures and rugged terrain the biggest problem is often just getting to where the gold might actually be – let alone finding it and pulling it out of the ground. But the allure remains and as long as there is gold in the ground someone will try to find it!

Since not everyone has the time, experience or money to set out on their own gold expedition – it’s not surprising that you can find plenty of opportunity to trade your cash for the chance to share the wealth in gold claims owned by those claim to be more capable.

The Cash Investment

alaska gold venture llc mine claim stake klondike porcupine big nugget mine .jpgTake for instance the Alaska Gold Venture LLC – I found them online with a quick google search. They are looking to fund their mining operation on the claims they already control in the Klondike. For a mere $10,000 you can buy one of 25 shares currently available in their Limited Liability Company. The folks behind this LLC, claim that you may receive up to a 300% return in this high-risk investment. You may also lose all of your investment – all 100% of it.

For me, the risk:reward is too high on an opportunity like this. The estimated time for this investment to reach completion could be 3 years or more for a 300% return. Compare that with owning physical gold which in the last 10 years has gone from about $300/ounce to close to $2000/ounce – that’s up to a 600% return and with little or no chance that gold will ever go to $zero!

It’s fun to watch and even share in the victories of those who take the risks of striking it rich with gold – but remember that even in the California Gold Rush of 1849, it was  Sam Brannan who became the richest man in California selling pans, picks and shovels!

CNBC Bold Call for 2012 – Gold Goes COLD

CNBC Bold Call for 2012 – Gold Goes COLD

end of world 2012 gold falls price investor bug destructionWith the end of the world coming in 2012 – CNBC just published their “Bold Calls for 2012” wherein Larry Kudlow makes his bold call that, “Gold Goes Cold” and that gold won’t top $2000/oz.

I’m not sure how *BOLD* of a call this really is as Kudlow doesn’t call for any sort of bottom price point, nor does he give any sort of time frame for Gold turning stale – other than it’s a 2012 prediction.

Maybe that means gold catches back on fire to resume it’s 10+ year run of appreciation in gold price fall investor bug sell coins before drop2013? I’m not sure, but it’s always fun to watch the bold calls the financial talking heads make as we move into a New Year.

Here’s my *BOLD* call on gold – I believe gold possibly sees a near term (6 month) pull-back to near $1500 before resuming a fairly slow continue rise through $2000 and on to $2500 over the next 5 years.

Now only time will tell….