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Gold: The Basic Unit

Thursday, January 22, 2015

Subscribers can see that I have a hard time trying to get some rest and take a vacation. I have been in search of peace of mind. In this business, peace of mind is hard to attain because one is always concerned with what will happen to stocks in the weeks and months ahead.


At this point, I want to keep it simple. When the smoke clears, investors will turn to the basic unit of all investing. The fundamental unit is the vehicle of true and honest wealth that cannot be deflated. That item is gold.

Our forefathers who created the Constitution would be aghast at the Fed's multi-year program to desecrate gold. Gold represents pure wealth that needs no nation to guarantee its value. Gold is value itself. To buy and hold gold bullion is difficult for most people.

I have been recommending CEF as a way of owning gold. CEF holds actual physical silver and gold outside the US, in Canada. Amazingly, the last time I checked, CEF was selling at a 7 percent discount to the market price of its silver and gold holdings. I recommend CEF as a long-term holding for all my subscribers. It's remarkable that all the precious metals are held in such low esteem that you can buy them at discounts via a fund in Canada.


I forgot to mention the state of the union speech. I think Obama did a good job and it came across as very sincere. There is a laundry list of items he wants to improve, but with a Republican Congress I don’t know how he is going to get anything done.


Europe is about to follow the trend in buying bonds. The amount to be purchased will be about 60 million euros per month. This new avalanche of cash is already seeping into the stock market.


As I write the Dow is up 264 points but still under 18,000. Spot gold is 1304, finally trading above the 1300 resistance.


I’ve been doing additional thinking about my purpose in writing. My purpose is to direct as many people as possible to a spiritual way of life. If civilization is to move forward, I believe it will require a mass movement towards spiritualism, and that’s my purpose.