Saturday, October 6, 2012


Lemmings, Investors & Gold

Roger Wiegand
The winners in trading and investing take the time to assess situations and read about both the positive and the negative aspects of those ideas. Each investor has different objectives, varying account sizes and contrasting appetites for risk. In the current environment, a one-size-fits-all investment mindset is impractical at best and scary at worst.
Wiegand debunks some of today’s popular investing beliefs: bonds are a safe place to earn money; Forex trading is fun, safe and the risks are contained; you can earn money with no risk; big banks are solvent and have cleaned out all their bad debts from balance sheets; gold and silver are dead; gold and silver shares are a poor investment; get into blue chip companies and hold the shares forever; RRSP, TFSA, 401K and IRA funds are totally secure; real estate keeps rising with inflation; stock and bond markets cannot crash because central banks will prevent major damage; all major international currencies are safe; your social security is secure; taxes are fixed and won’t go up any more; government agencies are made up of hard-working people who have your welfare at heart; the Fed is a division of the federal government designed to regulate and control the national economy and prevent recessions and depressions; central banker bonds, bills and paper are super safe and very liquid.
These ideas are common, writes Wiegand, but if you believe them, you will believe anything. He suggests gravitating toward physical gold and silver and related stocks.
“Somebody please tell us when the global bond markets crash for good,” he says, “and we’ll tell you when this can all get better and we can start all over again, maybe with a partially backed fiat gold currency.

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