Jubilee Prosperity

Do people really expect to take their Krugerrands to market to buy an apple, a pack of cigarettes or lipstick and get change?

http://www.youtube.com/watch?v=Gk5aRIz17fk 6:28

Many people were suckered into punting for $1000 gold and $50 silver at the highs in 1980 after ignoring their lows at $35 and $1.29 in the Seventies.

I well remember reading Paul Erdman’s Silver Bears , Jerome Smith’s Coming Currency Collapse and Howard Ruff. Their hard money hits reached the best-seller lists around the 1980 top of gold and silver.

http://en.wikipedia.org/wiki/Silver_Bears_%28film%29

It took 20 years to see those gold prices again.

http://stockcharts.com/charts/historical/Print/djiagold1980print.html

Today we have an even higher number of bestsellers promoting precious metals, inflation and currency collapse.

http://www.amazon.com/Rich-Dads-Advisors-Investing-Financial/dp/0446510998/ref=sr_1_2?ie=UTF8&s=books&qid=1258663364&sr=1-2

Yesterday’s financial best sellers sit on today’s bargain table.

Gold’s long-term target was 1005.

Gold surpassed that, suggesting risk/reward may favour sellers and shorts here.

http://stockcharts.com/charts/gallery.html?s=%24gold

Silver hit $21.44 almost two years ago and went down since. Silver could run up to $26, but the risk/reward ratio also favors sellers and shorts here.

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This entry was posted on Thursday, November 19th, 2009 at 7:46 pm and is filed under Capital Preservation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.