Monday, May 16, 2005

Are Gold and Silver Prices Suppressed?

While I am a Precious Metals fan, I don't think the prices are being suppressed.

Gold: IT IS NO LONGER MONEY. Undeniable. Since that is the case, I am surprised that it has MAINTAINED its price relative to the "DOLLAR" and even increased somewhat, since the only other uses are minor industrial, which silver can often substitute for, and for jewelry. I attribute any price support/increase to us goldbugs, not to anything else.

Gold is superfluous to most people with any "money". Maybe some day in the future, gold will be again be money. But first, ONLY after the world economy and the present fiat money systems collapse totally. Then, there will be more attempts at fiat systems. Finally, gold will HAVE to be adopted again as money. But I, and possibly you, will be dead of old age by then.

SILVER: I have heard of the coming silver price explosion for decades. The demand/supply imbalances. Blah, blah, blah. Obviously, there is enough supply available at PRESENT (low) prices. If there wasn't, the price would be higher. QED. Now, you can say that by analyzing supply and demand that on the x day of the y month of year z, that the supply at the present low prices will run out and so that the price will have to increase dramatically. And that it should increase NOW in anticipation. But this is now, and then is then. Plus, obviously, the people with big "money" disagree.

Capitalism or "free enterprise" does not mean that people have much foresight. If you think silver, for example, should now be $100 (whatever), because of a potential future shortfall, you likely think oil should be $150 (whatever) a barrel.

That oil is not $150 is for the same reason silver is not $100. The prices will not increase dramatically until, if and when, we (collectively) get kicked in the face.

Tuesday, May 10, 2005

So you doubled your money.

So you doubled your money.
What if, in the same period of time, your cost of living (COL) also doubled?
Well, at least you broke even, right?
Wrong. Because the IRS wants tax on your "double" even though you didn't gain any purchasing power.
In this way, government ROBS you of your capital through inflation.

Rule of 72
Years to double principal at various interest rates.
Years to halve purchasing power at various inflation rates.
Includes formula for exact calculations also.
The Rule of 72 - -Interest and Inflation.

Sovereign Living
Includes a couple of links about the "income" tax.
Sovereign Living Articles.