Financial Sense Blog

I happened, once again, upon an old quote from Jean-Francois Revel: "Democratic civilization is the first in history to blame itself because another power is trying to destroy it." Sadly, Revel is stating the obvious. But then, it really isn't obvious to most people. Even when you point out what is happening, they are so unfamiliar with history, and so unschooled in ideas, they have lost the thread of modernity's narrative. Possessing clarity, Revel did not lose this thread

Since the start of the decade gold has been in a strong secular bull market in which it has had only one negative year (2001) while the S&P 500 has had four. Gold’s strong performance has produced a cumulative return of 311.54% for an annualized return of 15.18% per annum this decade.

Is gold cyclical? Is a bullish consensus in which 97% of gold traders are bullish justified? Will my theory of relativity work on the barbarous relic? Lets take a look.

The current secular bull market in gold can easily take its price to six thousand US dollars.

Last August The National Intelligence Strategy of the United States of America was published with a foreword signed by the Director of National Intelligence, Dennis Blair (formerly an admiral). The report is a typical specimen of its kind: replete with trendy expressions, political correctness, and the dull repetition of commonplace managerial themes...

Since the July lows we have witnessed gold rocket northward first through the $1,000 per ounce mark and then the $1,100 per ounce mark, hitting an all-time high of $1,152.85 today. The move in gold off the July lows led to a more than 25% gain in the yellow metal with silver putting in an even more impressive move of more than a 42% rise.

Has the market made a major low that will last for years, or are new lows in the cards, lets take a look.

Every day that you walk into a store, you know that prices are continuing to surge. If you don’t, then your wife certainly does. Those who still have jobs know that they are being pushed to do more, for less remuneration as the surge for increased productivity is unabated. Now with the US Dollar being trashed as an essential part of the US Government’s recovery plan, the cost of that component of your life that uses imported goods is going to soar as well.

Whether you are a proponent of inflation, deflation, hyperinflation, or stagflation, this Recommended Reading List has something that will interest you.

Jim's favorite books about investing.