It's often hard to grasp the concept of gold's
role in the financial world.
Maybe it's best to say that for the past 20 years or so gold lost
its previous well defined role. So literally for two decades we
all have grown accustomed to a delegated weaker role for what had
been, in previous ages, a powerful currency & role model.
Could most of us readily agree that gold has been a lost wayward
sheep these past 20 years?
I'll agree to that. So, I guess the next question is can we really
visualize a changing role for gold to play in the next 20 years?
Anyway, that is what we are about when we write these commentaries
& talk about "gold." We are attempting to give an
importance to gold that the rest of the world just refuses to share.
Ever follow Richard Branson?
Interesting character & very rich. To the tune of close to
3 billion dollars. Interesting how he came to acquire his fortune.
A successful record company & then a very successful airline
company. Reading about this fellow, he comes across as an adventurer
who never really ever quite settled down but is always moving haphazardly
on to a new adventure.
But what comes to mind when referencing this fellow is his use
of the word "virgin" as the name he chose for his business
enterprise. Richard started his business empire in a hippy commune
back in the early 1970s & one of the hippies thought virgin
would be a hip name for their new record company.
"What about "Virgin'? We're complete
virgins at business." Richard Branson, Losing My Virginity,
Anyway, Richard Branson & his fellow hippy associates were
all about 20 years old & preparing to begin a new corporation
that later would grow to become a 3 billion dollar empire. And the
name of this new enterprise they called "Virgin."
Kind of reminds me of where gold is now & why so many new initiates
to gold just do not understand yet gold's significance. For over
20 very long years now gold has acquired a virgin status because
conditions in the west have appeared to be quite prosperous &
there just appeared to be no need for gold.
But I believe the time is very close at hand when gold will finally
lose this "virgin" status it has worn these past 20 years.
If the economy suddenly turns significantly south & folks watch
their paper dollars turn worthless then gold's role as a financial
life saver will be clearly understood & it will regain its time
honored respect by all.
And is the world standing precariously close to financial collapse?
"Is foreign debt a wolf
at the door?"
"Right now, China's ownership of U.S. paper
is nearly a third of the Chinese economy, up from about 15% two
years ago. If the existing system continues, we estimate...that
the total value of Chinese holdings of U.S. dollars will exceed
the total value of China's GDP in five years."
"The wolf may not be here. But it's coming."
By Peter Brimelow & Ed Rubenstein, CBSMARKETWATCH.COM
If gold is on the brink of finally losing its virgin
status I definitely want to be prepared & holding a position
when this event occurs. Ever wonder what happens when a cat accidentally
slips in the washing machine?
"Curiosity nearly killed the cat after a
kitten climbed into a washing machine that was then switched on.""Eight-week-old
Milo disappeared at Ginny Troth's house in Astwood Bank, Redditch,
Worcestershire, and bedded down in the laundry for a cat-nap. But
Mrs Troth unwittingly switched on the machine for a spin wash and
only realised where the inquisitive tabby might be about halfway
through the cycle.""Milo could not open his eyes, had
water on his lungs and was hypothermic. But with regular treatment,
after about three days he had regained his appetite and was back
to his playful self." 11-1-2004, Drudge Report
We talk about trends often & one growing trend
is the move away from US dollars.
"Hugh Johnson, chief investment officer at
First Albany, said anecdotal evidence confirms a "TREND"
-- in place since February 2002." "We have been seeing
a pattern of foreign investors backing away from our markets
Barbara Kollmeyer, CBS MarketWatch, 10-31-2004
And where is the money going?
"There is a much better set of reasons to
be putting your money in Asia these days than in the U.S."
Barbara Kollmeyer, CBS MarketWatch, 10-31-2004
I know there are those who still do not grasp the
message we are trying to relate about gold here soon to lose its
virginity. Read the following text from Richard Branson's book
"As we began to make love, she started to
moan & groan. She was clearly having a very erotic time. I was
secretly pleased by how well I must be performing since she was
panting & tossing her head from side to side as she fought to
control her breathing. I put up a great show & finally
"Then I rolled off her. To my astonishment she carried on panting,
apparently having what I took to be ecstatic multiple orgasms. Just
as I was beginning to feel a little bemused & somewhat redundant,
I finally realized that she was panting for a reason." "Asthma!"
she wheezed in breathless panic, "Inhaler! Ambulance!"
Richard Branson, Losing My Virginity, 1998
Anyway, for those who still are a little slow the point here is
that gold really so far has done nothing really impressive up to
this point. And gold is still by & large being ignored by the
masses? Give gold a little time & it will truly show its stuff.
Our world is moving forward to some very significant challenges
& problems & gold will eventually show itself to be the
financial hero it always is when times become truly challenging
Reading the following bit of news.
Yasser Arafat reportedly dies in France - AFP
Yes, the Palestinian situation should become interesting with the
above occurrence & mean while the dollar has begun its continued
rapid descent. And you still ignore gold? Wait a while longer &
you will be running to secure any asset not associated with paper.
Did you vote?
My little boy voted for the first time last week & only 9 years
old. My son stood in line with me & I let him punch the buttons
in the voting booth.
Want to see where today's gold stocks just may travel
to in a very few years? Click the following to find out. http://www.goldletterdv.com/WHYGOLD.PHP
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David N. Vaughn Gold Letter, Inc.
November 5, 2004
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