by Adrian Ash on September 3, 2010
Since gold stopped being money, it’s become 75% more valuable on average…
SO GOLD is now at “fair value” says Bill Bonner, long-time gold bug and my former boss/partner-in-crime at The Daily Reckoning’s London HQ.
No, he won’t sell yet…if ever…says Bill. But gold’s huge under-pricing a decade ago has clearly passed by. Value-hungry investors got their “reversion to the mean”, and in the form of 400% gains, too. What one ounce of gold bought 2,000 years ago – a good suit of clothes, in Bill’s oft-repeated example – it now matches, if not exceeds in price, here in late 2010.
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by Kris Sayce on August 30, 2010
Having read through US Federal Reserve chairman Ben Bernanke’s speech at Jackson Hole, Wyoming over the weekend we can only come to two conclusions.
Either Mr. Bernanke is stark raving mad and should be sent to a nut farm immediately. Or, he should be carted off to The Hague to face charges of crimes against humanity.
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by Adrian Ash on August 27, 2010
Time was, stocks were riskier than bonds and should have the higher yield. But then came inflation…
AT THE START of this week, stocks on the Dow Jones, Tokyo Nikkei and FTSE100 in London offered a bigger dividend-yield than you’d earn in interest from their local government bonds.
“That’s pretty rare, and in general has been quite a good indicator of turning points in the markets,” notes the Financial Times‘ investment editor James Mackintosh. But it only looks rare if you ignore most of history. And it’s only screamed “Buy!” once on Wall Street, back in winter/spring 2009.
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by Kris Sayce on July 28, 2010
Yesterday we quoted an article in the Australian Financial Review which said the proposed cash for clunkers scheme would:
“[C]ut carbon dioxide emissions by 1 million tonnes and save $344 million in fuel costs in the next 10 years”.
We then wrote, “But when you compare it to Australia’s total CO2 emissions as of 2007 of 374 million tonnes, the amount saved isn’t even a drop in the ocean. In fact it’s a paltry one quarter of one per cent.”
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by Kris Sayce on July 23, 2010