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Gold All Comers Invitational

January 06, 2004

With gold at a 14 year high and the dollar crumbling, its a great time to own the yellow metal! Share your favorite gold stocks, mutual funds, tips, opinions and any other ways you see to profit off the rise in gold. Your tips will be seen by thousands of readers each day! Go Gold! Power to the POG!!!

Posted by manystrom at January 6, 2004 10:58 PM
Comments

Hey Guys --

Great site. I fully agree with Eddie Gofsky's article, that gold has entered its fifth wave advance. My favorite stock is ASL - Ashanti Goldfields. I've had it for several years now, and I bought it at 3, and its over 13 today! So far that's a 4 bagger, but it'll be a 10 bagger at least, and probably a 30 bagger by the end of all this.

Gold $650 by the end of this year, easy. Things are going to get ugly.

-- dirk

Posted by: Dirk Davies at January 7, 2004 01:49 PM

The debt of nations - starting mostly with the British Bank of England is
an item purchased to "secure" and generate returns to pools of piled up
capital - but it is also used for non-financial reason. Those nations
considered politically and militarily preeminent continue to be the
trusted recipients of pools of capital. So, unlike countries such as in
latin america, politically and militarily preeminent nations will always
continue to receive disproportionate flows of world capital - vastly
beyond what micro-economic rules would deem rational. The evidence is
that even those countries that might default (either defacto through
devaluation, or even in actual fact) will quickly be forgiven as long as
they retain their "top of the hill" positions. This is true even in the
case of so called poor nations that default on national debt like
clockwork. This forgiveness has applied to South America, France in the
18th and 19th century, the Ottoman empire pre-WW I etc etc. Why? Because
at some level, purchase of national debt has strategic rather than
financial (rate of return) drivers. The primary reason that there appears
to be a housing bubble is that the most long lived national debt system
in history has extended its national credit worthiness to the securitized
mortgage market. So capital flows to the most apparently secure debt -
even if it seems non-productive. In short, US mortgages are now part of
the national debt in the eyes of bond holders.

So, strategically speaking, what do buyers of this debt get? Without the
slightest doubt the Chinese are paying for our greatest export commodity
- consumers . That is why they are willing to buy US debt. That is why
the Japanese are willing to drive their own currency into the ground.

Since approximately the 1960's the greatest export of the United States
has been consumption itself. For consumption items such as food and
clothing, most of the value added component is "fashion" in the form of
sugar and packaging for food, and in clothing fashion speaks for itself.
As an example, I can remember as a boy when bed sheets regularly tore and
were destroyed by repeated washings. Then, virtually immortal bedsheets
were invented. Once this happened, demand for bedsheets plummeted - until
manufacturers trained folks to believe sheets need colors, coordination,
licensed copywrited prints from museums etc. Now, it is hard to find
white sheets. The sheets themselves are immortal - we need more for
fashion and fashion coordination. I used to have three t-shirts...now I
have at least 40 t-shirts - almost all of them free from companies using
my body to display their logos - to encourage consumption. The reason so
many of us are fat is because we -our appetites - are the export item -
and in order to grow this export in a slow growth population theire must
be increased consumption per capita - demand must be directly stimulated
through advertising - we eat more.

The notion of money is now hard to define. Everyone knows what it is, but
it is now actually hard to "find". I never see the money I earn - ever.
The only thing I see once in awhile is an allowance I get - walking
around money from my wife. Most of it flows unseen from my employer to my
bank to my suppliers to my savings plans. I myself can create almost a
million dollars of money out of thin air if I chose to use all the credit
that is at my disposal (and I'm not CLOSE to being rich)...where would it
come from? No printing press is driven into action. It used to be that
credit was so hard to get that Banks had no fear of alienating customers
if they had the slightest suspicion of being repaid. Now, that seems to
have disappeared. What's happening? What's really going on?

Here's a conjecture - I'm reminded of how I've heard that elephants are
trained...how can one tiny man get an enormously strong and wild elephant
to do his bidding without question - without even a chain leash - just
with words and a little stick? By teaching it when it is an infant and
not strong. It grows to enormous strength that would break mighty chains,
but can't forget the lesson that it can't break a little bit of string.
So it "knows" it has to do the master's bidding. A very long time ago,
people traded goats for camels, food for cloth, stuff for stuff. Humanity
was an infant and "knew" that you had to get something real for something
real - in the immediate moment. Then, scarce items began to become
proxies for "real" things. Gold, Silver, jewels, etc. Do these items have
real value? NO. can't eat em. and none of them will keep you warm on a
cold night -except that they represented real things - the elephant was
growing up - now the leash was a bit thinner and wispier but at least the
stuff was shiny and heavy...then came
paper...credit...bills...notes...thinner leash still - but, you could
still see it...now, there's nothing to see - it's all virtual...the
elephant (economy) is gargantuan - but is controlled by ... nothing much
really.

There's more to say, but I'd be interested if you're interested in
hearing more.

Cheers,
Dave

Posted by: Dave at January 7, 2004 04:51 PM

For new comers to the gold play...

Gold bullion represents real wealth.
How do you accumulate real wealth?
Use the Texas Double UP method.
This works during a gold bull market, take say $50,000 or $10,000 or whatever amount. Play the $50,000 on 10 different gold mining shares. When anyone of the 10 doubles sell half the shares and buy physical bullion. As each of the 10 different companies doubles, sell half and buy bullion coins. Every time the shares double again, sell another half and buy bullion coins. You will generally have about $50,000 in gold shares and will be accumulating wealth. This will keep the gold bull working, your gold shares moving up, and in 4 or 5 years you will have a pot of gold, for sure....

Go TEXAS DOUBLE UP!

Posted by: RCLs_2000 at January 8, 2004 10:24 AM

I hope we've begun the fifth wave & not just ending the 3rd; there are different opinions. If we are ending the 3rd, I shouldda sold some stocks a couple of weeks ago...

If an international monetary catastrophe is brewing, a stash of silver & gold coins is necessary insurance. I hope we never need them, but if we do...I hope everyone has some.

Posted by: Brooker at January 8, 2004 09:12 PM

This is how the big money runs a pyramid scheme...

The Golden Pyramid

Think about this great business idea for a minute. Let's borrow some surplus stuff and sell it for whatever we can get. We'll buy a futures contract to get it back at some certain future date, so we're covered. Meanwhile, we'll earn an interest spread plus commissions. While we're at it, let's sell puts and calls against the stuff even if we don't have it on hand. Our mathematical models will guarantee that our position is always neutral, and we'll clean up on commissions, interest and other fees on the options too.


author: John Hathaway
August 20, 1999
© Tocqueville Asset Management L.P.

more at the link: http://www.tocqueville.com/brainstorms/brainstorms.php?id=31

Posted by: RCLs_2000 at January 11, 2004 10:51 AM


Where does a person find a gold stock where you can accumulate a million shares without moving the stock 50%? I think gold is going to break up to $470 and stocks like LNXGF could be a nice place. The market cap is low and share price under a dollar. I have been in all the majors for 2 years, trying to find something cheap is getting real tough. But I definately don't mind having this problem !


I think Bill Murphy does not understand the power that he possesses now. I mean I travelled to Europe, Asia and over Canada, and its unbelievable the amount of people that follow Murphy.

Posted by: Merv Istanta at January 12, 2004 05:51 PM

What Does the Holy Spirit say About the Stock Market?

This turmoil today is caused because of the drop of the nations’ conscience (particularly USA and Japan) and debt/gdp now at 360%. At the peak of 1929 it was 260% and USA was a creditor nation. Today USA is a massive debtor nation. The 7 year Tribulation started Nov, 2000 when Bush was elected (who lossed the populace election yet won anyway) when the stock market(great dragon that is called Satan)-greenspan(2nd beast antichrist)-bush(3rd beast false prophet) unholy trinity took power. It came about from the reaction to the drop in March and September of 2000 in equities.

Then a 7 year treaty (don't legalize dates or the treaty itself) was signed (with the 10 leaders with horns in seven G-7 nation heads intricately tied to the stock market propagation) to solve this problem and implement a strategy that the 2nd beast (greenspan) actually caused in the first place and was accepted by the nations of peoples (sinners) and their horns on heads. Since then the people have held sacrifices to their false god the stock market by trusting in the antichrist, the Fed chairman and his treaty signed and pursuant actions of continual rates cuts, stimuli, fed-speak and money laundering (I mean printing).

By the middle of the Tribulation (approximately coming May 1, 2004) we see that the Antichrist's strategy which seems to have failed in the first half of Tribulation, is now revived over the past year with the rebound in the stock market, the great dragon and G-7 cohorts of ten significant leaders, the horns on the heads. In 2003 this past year the bush-stock market is revived in a major way. Truly many are the believers now who worship the idol of the 2nd beast. Truly a miracle and most will fully believe him now by mid-2004 (in this great echo boom) for having saved them which agrees with the superstitious Bradley model of gamblers based on astrology predicting a May 1, 2004 top as well.

The false prophet bush says worship the idol set up, that is the image of the 2nd beast, the image of the power of what Greenspan said he can do in this grand experiment, print money to save us from bubbles he creates, even though as we all know Greenspan did not hold this view previously in his less unmoral days. Judas was the false prophet and Nero was the Antichrist. Today Bush is revived Judas and will betray his God for does not George Bush say he is a Christian outspokenly and was not Judas one of the apostles? Has Bush not already crossed the line and shown his fruit? By way of the image of the beast is Greenspan's fed printing, Bush cares little for curtailing a combined trade + budget deficit of over one trillion dollars, and expected deficit cumulative excess as baby boomers retire.

Many will take this mark of the beast, through wrong investments, overspend, and unprepared themselves with equity in homes the lowest ever before in history. But it is a lie and destruction ensues shortly for those who accept this mark of deception that all is on the road to recovery with such exorbitant leverage (estimates nominal derivative exposure is 120 trillion which makes LTCM and Enron and Fannie Mae look like child’s play). The 2nd half of the Tribulation is much worse. In fact it is unlike anything the human race has ever seen and never will ever again. It is called the Great Tribulation. The unholy trinity by the power of Bush’s self-serving self-seeking self-gain to encourage the Fed to print as much as possible so Bush can spend as much as possible, encourages us to worship the fed printing idol more now which causes utter havoc and chaos and destruction the next 3.5 years as we are all sold this bill of goods and employment, NASDAQ, NYSE, DJIA, S&P500, bonds, US dollar collapse.

Great Babylon “political Rome” USA will fall during the next 4 year election period (as the nations shipping merchants cry because they can no longer sell their goods to USA – Rev. 18) and so too will religious Rome’s little harlot denominations of the world as well as the great harlot (which leadership is sought from) which is the RCC Charismatic Pentecostal 3rd wave movement marriage of false tongues – Rev. 17. Then at the end Christ returns to show us a better way from this heartache and loss, and indeed now we truly listen. Those who partook in these overvalued financial instruments are left destitute for taking this mark of the beast. 4 years ago I heard someone say to me that this election in 2000 and 2004 were so important, because this will be the last president before things are revealed. But Christians will be persecuted for not participating in this scheming system of being fully invested. And without accepting these pension able and non-pensioned investments revenues it is said they will not be able to eat, but the Christian refrains from participating because the Christian knows it is wrong and will lose all his money if he stays long these financial instruments.

After the carnage, we begin a new period where Christ returns and takes His overcoming Christians (not all Christians are rewarded this way) most seriously rewarding them with the recompense of the millennial kingdom to reign with Him over the cities and nations of the world. Democracy takes shape in a way never before seen by active participation and voting for incumbents, who reduce debt, keep fiscally responsible, and limit economic swings from greed through preventative measures before they escalate as they did in 1996, in this, the greatest bubble human history has ever known. Remember NASDAQ had a PE ratio of 245. Imagine 245 years to get back your initial investment requiring 3 lifetimes.

Proposal - Markets tops out May 1, 2004 and in 2005 the S&P500 reaches 600 at reported earnings of $40 and a PE of 15x. By 2008 reported earnings will still be hovering around or under $40, and this also coincides with the end of the Great Tribulation, bringing the PE to 10x and the index down to 400 (or slightly lower). The DOW to GOLD ratio gets back under 5x again (as it always does through the centuries) of about 5000/1000, oil reaches over $50-100/barrel, and USA is no longer a player in the world scene (oil import prices is debilitating) as it works hard to pay off its massive indebtedness and stem the tide of its relentless currency collapse, double digit inflation, poor economics, destroyed the stock markets primarily in United States of America, fallen Babylon.

Troy Brooks, B.Comm.
Retired professional blackjack card counter,
Ex-stockbroker,
Saved Christian

Posted by: Troy at January 12, 2004 06:19 PM
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