| GOLD – The Road Less Traveled
Bankruptcy & Insolvency Gold & Silver (real physical metal – | PAPER – The Road More Traveled
Bankruptcy & Insolvency Lehman Brothers |
| Investment Return Since 1/1/2000
Gold up from $285 to around $1,750 – about 15% per year compounded for 13 years Silver up from $5.40 to around $33.50 – about 15% per year compounded for 13 years | Investment Return Since 1/1/2000
S&P 500 Index: down from 1,469 to about 1,430 – approximately no change in 13 years NASDAQ 100: down from 3,700 to about 2,700 – about negative 2.4% per year compounded for 13 years US Dollar: down from 0.8 gallons of gasoline to about 0.3 gallons of gasoline US Dollar: down by about 60% in terms of retail food prices |
| Safety With Gold & Silver
Physical Gold and Silver – cannot be “printed†Investment demand increasing Central Banks are now net buyers Huge demand for gold and silver in China, India, and Russia Chinese government encourages ownership of gold by its citizens Mine supply flat or barely increasing US and Canadian governments mint gold and silver coins | More Risk With Paper
Paper investments have counter-party risk. Will governments or corporations pay on their promises? Will stocks collapse if the economy weakens? Will a derivative implosion crash the economy? Will Congress spend the dollar down to a fraction of its current purchasing power? Will consumer price inflation destroy the middle class of Europe and the USA? |
| Future Expectations
Gold and silver prices will increase substantially as the Dollar and Euro decline in purchasing power due to excess spending and Quantitative Easing (debt monetization or “money printingâ€). Fear of inflation and loss of confidence in paper money, governments, and political promises will drive gold and silver prices much higher. | Future Expectations
The dollar has lost about 98% of its value since 1913 and much of that loss occurred since 1971. Do you see anything that will change the trend toward continued monetary debasement? Fear of inflation and loss of confidence in paper money, governments, and political promises will weaken the purchasing power of the Dollar and the Euro. |
