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Robert Lenzner: Even after smashdown, gold surpasses everything else
'Gold Is a Most Volatile, Unstable, Fickle, and Risky Asset'
By Robert Lenzner
Forbes.com
Sunday, October 2, 2011
http://www.forbes.com/sites/robertlenzner/2011/10/02/gold-is-a-most-vola...
So blows the constant trumpet of NYU economist Nouriel Roubini, who is trying to recapture the crown as prognosticator-in-chief that he held back in 2008 for his extraordinarily accurate scenario of the financial meltdown-cum-crisis. You might wonder why Roubini didn't sound off at gold's recent peak of $1,920 an ounce, prior to its inglorious retreat below $1,600.
The gold crowd, who have been licking their wounds lately, won't be happy either with CNN's GPS host Fareed Zakaria, who came down hard this morning on all that glitters. Zakaria first blasted the "scare mongerers like Glenn Beck for his absurd mantra on 'gold, God, and guns.'"
... Dispatch continues below ...
Lewis E. Lehrman on How to Solve the U.S. Debt Problem
Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.
Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.
Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."
To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit:
http://www.thegoldstandardnow.org/gata
But then Zakaria, a newsman who knows more about Pakistani politics than precious metals, chastised gold for being a 'symbol that can fall out of favor. It's not a share, not a bond, not oil," the CNN anchor went on. Someday, he suggested, tongue in cheek, "you might find that a can of baked beans will be worth more than a bar of gold."
A sorry bit of journalism that, since many serious investors, including the central banks of China, India, Russia, Thailand, Korea, etc., have been amassing large gold reserves to bolster their paper currency. And other professional investors -- i.e., not speculators -- have purchased positions equal to 5-10 percent of their portfolios as a hedge against the loss of value in the dollar. This includes many pension funds and university endowments.
More to the point: Gold may have sold off its highs but it's still up 15 percent this year and has compounded at even a higher rate of return over the past 11 years. You'd get indigestion from the equivalent hoard of baked beans.
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Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada.
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