Zeev's Turnips Patch-No Politics (ZEEV)

[schloss_1]

lee kramer-

The exact nature of inflation and deflation could be discussed forever. I think that if there is enough production for competition to curb prices, then inflation will not be a problem.

As far as gold, I have a personal history with gold that is both lengthy and serendipitous. I was first introduced to gold and silver in the early 1970s because I sold advertising for the newspaper in hartford and one of my accounts was a coin dealer. This man and his wife ran a small shop and it was through him that I began my study of precious metals.

In those days we used to buy bags of silver and go to bed praying that they would rise just 15% so we could cash out with a few bucks. We also used to invest in 2 1/2, 5, 10 and 20 gold pieces, along with Krugerrands, which were the only bullion coins available back then.

I was one of the few people I know who had both gold and silver in the run-up at the end of that decade and I sold and made a nice profit. However, I learned a valuable lesson, which is this: One invests in gold only to wind up with more paper money at some later date. Gold was useless as a vehicle for trade in the 20th century and morso in the 21st. I hope to God we never get to the point where the only people eating food today will the ones with Krugerrands or Maple Leafs!

One last lesson: Gold has always had a huge following of fanatics, who incessantly use phrases like "fiat money, cabal, confiscate, & c." I do not read their articles because I read them all back in the 70s. When I invest in gold shares today, I do so the same way that I invest in PD for copper. NEM, for example, produces a product that is used 75% for jewelry and the rest for dental work and hoarding. If I can see that they will be able to sell more of their product at higher prices because the worldwide price of gold is rising, then I buy the shares. If I doubt about whether the price of gold will hold in a certain area, I move to the sidelines, hoping to buy it cheaper later.

Hope this clarifies my stance on the gold shares issue.

schloss