more articles by

David Vaughn

Click to enlarge

Click to enlarge

Gold & the Next Generation

By David Vaughn     Printer Friendly Version
July 02, 2004

And how is gold for the week ending?

Gold stays on up there close to 400, but is still ignored by most folks. But what is presently happening with our economy?

“…the latest official figures show US consumer prices rising at a 4.4% annualized rate in the four months to April 2004. It is a safe bet that the level over the six weeks since the end of April will show still bigger US consumer price increases.” Bill Buckner, The Privateer, 6-18-2004

And again we are reminded by the commentary above that inflation is real & continues to rear its ugly & all consuming head.

“The signs are all around us. No matter how thoroughly the books are being cooked, little signs of economic reality keep escaping into the light of day. Even official "inflation measures" (like the CPI and PPI) are now starting to veer out of control. Treasury yields are rising inexorably, stock indexes are comatose in spite of the best efforts of "990N" - see the quote which begins this analysis. And now Gold has had the temerity to rise $US 10.50 over the last two trading days of the week.” Bill Buckner, The Privateer, 6-18-2004

Most readers will fail to see the significance in what we write here. But what the evidence shows clearly is that gold is staying close to 400 not just on the wings of mere sentiment but because inflation is establishing a firm & long term pattern & routine.

“It will quickly become clear that the Fed is not raising rates to "damp down" an "overheating economy", it is doing so to prevent or at least postpone a wholesale abandonment of the currency.” “The PROOF of a loss of control will be a Gold breakout. THAT will show the beginning of the abandonment of the paper markets - any interventionist government's worst nightmare.” Bill Buckner, The Privateer, 6-18-2004

Our point always is not to prove how high gold may or may not climb to in the short term. What our goal continues to be is to show that times & circumstances have changed & that there is a new kid on the block. And that new kid on the block is gold & will continue to grow in prominence & importance as the years unfold on into this new century.


Of course there are many good fundamentals ranging from Asian trends & demands to depleting mines but I will continue to believe the most significant positive force for gold will be a growing trend toward higher & more prominent inflation.

But let’s change the subject & talk about personal wealth.

Paper: Kerry wife worth $1 billion
Analysis shows fortune greater than first thought

RALPH VARTABEDIAN, Los Angeles Times, 6-27-2004

Now before readers think that I am indiscrimananetly attacking John Kerry let me state that my emphasis here is on the subject of personal wealth & finances.

“Heinz Kerry's investments, worth an estimated $500 million in 1995, have grown over the last nine years to $1 billion or more, even accounting for large living expenses and charitable contributions, according to an analysis of Securities and Exchange Commission filings, Senate financial disclosure reports, probate documents and other public records.” RALPH VARTABEDIAN, Los Angeles Times, 6-27-2004

I thought this would be fun so let’s play with the numbers here.

Put another way John Kerry’s wife’s personal fortune has GROWN 55 million a year for the past 9 years. And how would we like to see our personal wealth even after an opulent life style & expenses grow by over 1,000,000 a week for 9 solid years?

And our point in relating this bit of trivia?

Well, I guess this just goes on to prove what we have heard for years & years & that is that the rich definitely get richer while the poor & middle class just sink deeper into poverty.

And the modestly successful businessman who has grown a business worth a few million dollars worries how he will pass this inheritance along to his children without the heirs having to sell & liquidate the business to pay inheritance taxes.

And how much in taxes has John & Teresa paid these past 9 years? That would be interesting to know.

But we have more interesting trivia to share.

While John & Teresa build their wealth to the tune of over 1 million dollars a week Senator Clinton informs the lesser well to do that they must make greater sacrifices.

“…Hillary Clinton told several hundred supporters -- some of whom had ponied up as much as $10,000 to attend -- to expect to lose some of the tax cuts passed by President Bush if Democrats win the White House and control of Congress.

"Many of you are well enough off that ... the tax cuts may have helped you," Sen. Clinton said. "We're saying that for America to get back on track, we're probably going to cut that short and not give it to you. We're going to take things away from you on behalf of the common good." Matthew Fordahl, Associated Press, 6-28-2004

Wow! And lets hear again what Hillary wants to do?

“We're going to take things away from you on behalf of the common good."

And whose good, Hillary? John & Teresa’s & their super rich friends?

But at least we can count on the Republicans to represent the nation well while the Democrats preserve the perks of the upper class.

And where is Bush at the moment?


“NEWMARKET-ON-FERGUS, Ireland - In his visit to Ireland, President Bush stayed in a 16th century Renaissance castle on a 375-acre secluded estate.”

“But it wasn't secluded enough.”

“Bush was spotted by television cameras as he was standing in a T-shirt at his window at Dromoland Castle.” Deb Riechmann, Associated Press Writer

Good job, George! Now if you could just bring that same type of “openness” to the gold market…

But let’s get back to gold before we stray too far.

Gold May Average $400 in 2nd Half as Dollar Gains, Survey Shows

“Gold will average $400 an ounce through Dec. 31, compared with about $402 in the first half, according to the median forecast of 19 respondents from New York to Sydney.” Laura Humble, Bloomberg, London, 6-25-2005

Sounds like a strong gold forecast to me!

Join the growing ranks of wise investors who are making gold a part of their long term investment portfolios. Subscribe to an email based publication that covers & reviews gold & silver stocks.

We're just at the beginning of a Long term bull gold market!

Gold Letter

Order toll free (888) 836-7758

Or via the Internet:

David N. Vaughn
Gold Letter, Inc.
Gold Letter Website

July 02, 2004


Author/publisher does not trade stock of the company being followed for 30 days before & 30 days after an article is published. Readers are advised that the material contained herein is solely for information purposes. The author/publisher of this letter is not a qualified financial advisor & is not acting as such in this publication. Gold Letter, Inc. is not a registered financial advisory. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment related advice. All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Authors of articles or special reports contained herein may have been compensated for their services in preparing such articles. Gold Letter and/or its affiliates may receive compensation & or stock options for the featured company’s right to publish & reprint & to distribute this publication. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.