-- Posted Friday, 19 December 2003 | Digg This Article
Saddam Hussein has been captured so I guess this means peace on earth, etc, etc.
What can we add?
The price of gold appears to remain solidly entrenched above 400 an ounce. The dollar continues to weaken. I just read an article where some prominent Chinese leaders are advocating the liquidation of US dollar reserves to be replaced by gold. Maybe this will not be accomplished overnight but there remains no doubt that the fundamentals for gold are only growing stronger with every passing day.
My primary concern is with those gold equity investors who refuse to ever sell a single share but are holding out for the eventual peak of the gold bull market. My theory is to establish now some type of selling strategy that you can exercise all along the way. Unfortunately, for most of those waiting on the “peak” they will never find it because no one can predict a bull market’s peak.
Better to learn to sell a little now & lock in some of your profits along the way.
I just finished a biography of Cecil B. DeMille. Remember the “Ten Commandments” & Charlton Heston as Moses? That was Cecil’s greatest work. What was interesting about Cecil B. DeMille is that for a long time he was producing movies that were failures & flops at the box office. Originally he had these unrealistic idealistic goals where he was determined to produce what he thought the public would appreciate & should enjoy & he failed with every attempt along these lines.
But when he took the time to reassess his strategy & brought his goals down to a more realistic level then he began to succeed as a film producer & he became the world’s greatest film producer & highly successful.
Investing in gold stocks is kind of like this.
When we attempt to foolishly demand our own expectations & refuse to listen to the advice of others we inevitably lose our shirts. But when we begin to listen to the advice of the experts & temper our goals accordingly with a strong measure of discipline & prudence then we can begin to make real money.
Well, I went some place I said I would never go just because it cost too much. Just got back from the Biltmore House in Ashville, North Carolina. This place was built as a “country” retreat for the Vanderbilt’s at the turn of the century around 100 years ago. At over 2 million square feet it was & is the largest private residence ever built.
The house did not impress me except for its size as it was definitely HUGE. But to call this place a “home” is a joke. Too, too big.
I don’t care how much money these folks had the house was extremely uncomfortable because of its size & garishness. And though the place is being kept well swept signs of deterioration & all the effects that come with aging were noticeable all throughout the house. Yes, even at almost 40 bucks a ticket the staff could not keep the ravages of time & disintegration from this damp old structure.
I actually could not help but feel sorry for the family that lived here almost 100 years ago.
In my opinion they were prisoners of their excessive wealth. How & why? Because their lives became dominated not by making themselves or others comfortable but, instead, they became obsessed with only building an ugly monument that would brag to the rest of the world of their money.
This is what I have talked about in earlier articles when I wrote about becoming possessed by your riches to the point where you could no longer enjoy it because your primary goal becomes impressing the world with your money.
But believe it or not I still bought a family season’s pass to this place because fortunately there are other more entertaining events on the property’s remaining 8,000 acres for the family to enjoy that do not involve going inside the old & dusty joke of a home.
Every week we have become committed to giving 150 US bucks to some lucky reader who reads this commentary. We figure you deserve it for being kind enough to listen to these ramblings. And the excuse we provide for dispersing this is to give it to the first reader who spots a mistake & is the first to email us.
This past week I spelled Maria Bartiromo’s name wrong so I’ll send 150 bucks to Sunil Bangad in New Jersey. Yes, catch us with a misspelled word & be the first to email us & we’ll send you 150 bucks to help you with the holidays.
Oh! Let me share some interesting news about corporate America.
Remember Ma Bell? The ole’ Bell Company? I just learned that BellSouth just put a “gold” block on their computers company wide because they found their employees looking up the price of gold on Kitco everyday.
Sorry guys! No more Kitco nor gold for BellSouth folks!
BellSouth is an interesting company & a good example of a corporate giant forever locked in the past century. A year ago I mentioned to a BellSouth executive I knew that I could help get him national radio coverage to help push their DSL Internet Provider Service.
This deal could have provided national advertising for Bell that could have potentially brought in thousands of new DSL customers or at least introduced the technology to those who still believe the Internet can only be accessed via conventional cable technology.
Do you know what their response was to national advertising for their new technology?
At the time it did not fit into the “corporate plan” & the idea would have to be submitted to a committee that would have to explore the idea for 20 years before a decision could be reached.
It’s sad about the ole’ Ma Bell group of companies. Lucent, AT&T & BellSouth seem destined to fall the way of other past technological leaders that were giants in their day but are now unable to keep up with the change in technology & ideas.
And this is why the study of the gold market is so important today.
The times are changing & a new era is dawning. And one of the new giants of this new era & age is going to be gold. And for those who come to understand this there will be a great deal of money to be made as this new era continues to take shape & unfold.
And what can I say about the gold stocks?
Have you noticed that ever since gold surpassed 400 an ounce that the equities have been taking a breather? What is occurring is equivalent to a deer at night being blinded by the headlights of an oncoming car. For most gold investors 400 an ounce seemed so far away that now that this new gold price & floor has been established everyone is standing around in shock at this fact.
But while the gold stocks may be taking a breather make no mistake that they are preparing for another very substantial run forward. These are the moments that smart investors take notice of & prepare themselves for the next run up in price.
Yes, make no mistake that gold continues to remain in a long term bull market.
Now is the time for developing your strategy in preparing for the gold equities next major run forward. And now might be a good time to invest a little money in a publication that reviews gold & silver stocks so you can know what opportunities are out there to invest in.
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