What Other Experts Are Saying
About Gold ...
Gold – Rising Again!
David Chapman
“If the markets remain bullish, as we suspect, then the 8.5 year cycle will not crest until late in the decade. If
the market is making its 8.5 year cycle crest now then we will fail the recent highs at $430 on this up move.
Breaking under $330 would tell us that the 8.5 year cycle has crested. But given the huge bowl pattern on
gold made from 1999-2001 the cycle has probably not crested and we should target over $500 in the next
leg up with a minimum target of $488 once we take out $430.”
Plunging Interest Rates can have a Golden Lining
Dr. Richard S. Appel
“Gold has forever been the savior of the common man. Periods of excessive monetary creation, such as the
path that the United States is currently following, have ravaged him by inflation unless he owned gold. In
times when a country’s monetary unit’s existence came into question, such as when one nation conquered
another, gold has saved the individual’s wealth. So too is it today for those who believe that the only hope
for their future exists by owning common stocks. They are misguided and should place some of their assets
into gold. If I am correct, not only will the stock market trade far lower over time, but gold will soar to heights
never before witnessed. This will preserve both the wealth and the future of those Americans who move their
assets into the eternal metal, gold.”
Inflation: The Silent Tax
Richard Benson
“Inflation is a tax on financial assets. This tax is paid by those unlucky investors, corporations and foreign
central banks that hold financial assets denominated in the currency that is inflating. A simple way of thinking
about inflation as a tax is to consider investing in a mutual fund. The fund manager might charge 1 percent
for the service and privilege of providing the investments in fund form. If the fund returns 5 percent, the
investor would obviously receive a net 4 percent. However, if the inflation rate was 4 percent, the real return
to the investor would actually be nothing. In this case, the fund manager gets his 1%, the U.S. Treasury- with
the help of the Federal Reserve – takes 4% because of inflation, and the investor is left with nothing, except,
of course, a tax bill for his 4%. After taxes, the investor actually lost money! Inflation is a silent, and extremely
efficient, robber of value.”
Global Displacement of the US Dollar
The Privateer
“Currency displacement is an event in which previously used currency is thrown aside in preference for the
use of another currency. That is what happened to the British Pounder after 1944. That had the
consequence of flooding the world with massive amounts of now unwanted British Pounds. Pounds were
thrown aside and the countries which did so chose the US Dollar. That process had drastic effects upon
Great Britain, especially Great Britain’s post-war global standing in the world as one of the victors over
Germany and Japan. At the end of the Pound’s global displacement, the British Empire was no more. At
Britain’s nadir in 1975, the government had to call in the IMF to salvage the remains.”
Consumers Tapped Out
Dow Theory Letters
August 4, 2004
“On the consumer front, I believe consumers are close to, if not actually, tapped out. The multi-year spending
spree of the American consumer could be coming to an end. That means that it’s up to the US government to
try to spend us out of the potential slump.But, I’ve repeated this contra intuitive statement, the irony is that
the government is not spending enough, at least not enough to hold his bear market for stocks in abeyance.”
“Unfortunately, the rush for dollars is putting pressure on gold. Gold’s time has not yet come. But it will. There
is no easy way to time the move in gold. It will come suddenly, and violently, as faith in paper collapses. Gold
is the insurance we have to have, and I honestly don’t attempt to time it. I just want to own a certain portion
of gold, and that’s it. This whole economic situation is far bigger than just walking away with some stock
market profits.”
Newmont Pres Sees Gold at $380-$459 over Next 12-18 Months
Tuesday July 27, 2004 7:13AM
“Newmont Mining Corporation’s president Pierre Lassonde expects gold to range between US$380 and
US$450 a troy ounce over the next 12 to 18 months.”
Comment on Inflation
Mining Share Focus
Gold Newsletter June 2004
“Outside of depression, inflation is the most feared bugaboo of the economy and the investment markets.
And rightly so. It is also the most powerful driver of gold prices, as well as the prices of precious and base
metals.”
Gold is the Currency of Last Resort
Aden Research June 1, 2004
“Gold is the currency of last resort. It’s also a safe haven in times of economic uncertainty, inflation and war.
In all cases, we certainly have these ingredients brewing with the potential of eventually overheating."
"In fact, today’s environment has many similarities to the 1970s. The Financial Times, put it so well… In the
1970s we had the Vietnam War with a guns and butter policy. A current account deficit emerged due to
competition from Germany and Japan. The U.S. devalued the dollar, Germany and Japan accumulated huge
currency reserves, the money supply soared and commodity prices surged leading to general inflation.
Replace China for Germany and Japan, and of course changing the war from Vietnam to the war on
terrorism, an you have impressive similarities.”
Bowers and Merena Auctions Sets Records in Pittsburgh
Irvine, CA: Bowers and Merena's August 14, 2004, Pittsburgh Rarities Sale realized an impressive
$6.6 million. Numerous record breaking prices were set, particularly among the PCGS Registry Sets offered
in the sale.
"We are thrilled with the strong realized prices of our recent Pittsburgh Rarities Sale," stated Steve Deeds,
President of Bowers and Merena. "Our sale of the Carl Womack Collection of Buffalo Nickels was of
particularly import with numerous records being set. This collection is ranked #1 on the PCGS Registry. The
rare 1916 Doubled Die Obverse, graded MS-64 PCGS, set the realized price record for a Choice BU example
of this error when it sold for $281,750. Another record-setter is Mr. Womack's 1918/7-D. That coin, which is
certified MS-65 at PCGS, went to the winning bidder for $287,500."
Continued Deeds: "Additional highlights in the Carl Womack Buffalo Nickel PCGS Registry Set include a
1926-S MS-65 PCGS that traded hands for $92,000. The set also included an MS-66 PCGS example of the
ever-popular 1937-D 3-Legged Nickel that realized $80,500."
"Among the numerous PCGS Registry Sets that we sold in Pittsburgh was the Tom Klingensmith Collection of
Lincoln Cents," noted Bowers and Merena's Director of Numismatics Jeff Ambio. "A Condition Census 1912
certified PCGS MS-66 RD demanded $20,700 from the winning bidder. The conditionally rare 1916-S MS-65
RD PCGS sold for $27,600, and the gorgeous 1934 that PCGS certified MS-68 RD commanded a price of
$7,763."
"Our extensive offering of Lincoln Cents in Pittsburgh also featured the Jeff Stanley PCGS Registry Set,"
continued Ambio. "This collection is complete for proofs dated 1909-1942, with the key date 1916 in PCGS
PR-66 RD trading hands for a solid $21,850."
According to Deeds, "The widely collected Flying Eagle and Indian Cent series were represented in our
Pittsburgh Rarities Sale by, among other important consignments, the Phoenix Collection. A pair of MS-66
RD PCGS Gems led the way in the prices realized arena. The 1868 sold for $41,400 and the 1869/69 found
a buyer at $29,900."
"Our offering of the Nevadaman PCGS Registry Set of Jefferson Nickels met with an enthusiastic reception
from bidders," opined Ambio. "Record auction prices were set for the 1960-D and 1961-D. The former,
represented by an MS-64 FS example that is currently unique with a Full Steps designation at PCGS,
realized an incredible $32,200. Graded MS-65 FS PCGS, the '61-D is the single finest example certified at
that service. It commanded a realized price of $23,000 from the winning bidder."
"We also sold countless rarities among U.S. silver, gold, and pattern coins in our Pittsburgh Rarities Sale,"
concluded Deeds. "Particularly noteworthy are an 1892-S Morgan Dollar MS-66 PCGS that fetched
$158,125, an 1895-O Morgan graded MS-65 at the same service that brought $149,500, an important 1808
Quarter Eagle in PCGS MS-62 that traded hands for $207,000, and an 1879 Flowing Hair Stella PR-64 CAM
NGC that realized $126,500."
Highlights...
· 1868 Indian Cent PCGS MS-66 RD. Realized $41,400. From the Phoenix Collection.
· 1869/69 Indian Cent PCGS MS-66 RD. Realized $29,900. From the Phoenix Collection.
· 1891 Indian Cent PCGS MS-66 RD. Realized $8,625. From the Phoenix Collection.
· 1895 Indian Cent PCGS MS-66 RD. Realized $4,600. From the Phoenix Collection.
· 1896 Indian Cent PCGS MS-66 RD. Realized $5,290. From the Phoenix Collection.
· 1898 Indian Cent PCGS MS-67 RD. Realized $12,650. From the Phoenix Collection.
· 1909-S V.D.B. Lincoln Cent PCGS MS-66 RD. Realized $18,400.
· 1912 Lincoln Cent PCGS MS-67 RD. Realized $20,700. From the Tom Klingensmith PCGS Registry Set.
· 1916 Lincoln Cent PCGS PR-66 RD. Realized $21,850. From the Jeff Stanley PCGS Registry Set.
· 1916-S Lincoln Cent PCGS MS-65 RD. Realized $27,600. From the Tom Klingensmith PCGS Registry Set.
· 1934 Lincoln Cent PCGS MS-68 RD. Realized $7,763.
· 1937 Lincoln Cent NGC PR-67 RD CAM. Realized $5,175.
· 1949-D Lincoln Cent PCGS MS-67 RD. Realized $2,530.
· 1970-S Doubled Die Obverse Lincoln Cent PCGS MS-65 RD. Realized $16,100.
· 1971 Doubled Die Obverse Lincoln Cent PCGS MS-65 RD. Realized $9,200.
· 1913 Type I Buffalo Nickel PCGS MS-67. Realized $3,220.
· 1913-D Type I Buffalo Nickel PCGS MS-68. Realized $32,200.
· 1913-D Type II Buffalo Nickel PCGS MS-67. Realized $20,700. From the Carl PCGS Registry Set.
· 1914/3 Buffalo Nickel PCGS MS65. Realized $27,600. From the Carl Womack PCGS Registry Set.
· 1914-D Buffalo Nickel PCGS MS-67. Realized $21,850. From the Carl Womack PCGS Registry Set.
· 1914-S Buffalo Nickel PCGS MS-66. Realized $10,925. From the Carl Womack PCGS Registry Set.
· 1915-S Buffalo Nickel PCGS MS-67. Realized $24,150. From the Carl Womack PCGS Registry Set.
· 1916 Doubled Die Obverse Buffalo Nickel PCGS MS64. Realized $281,750. From the Carl Womack PCGS Registry Set.
· 1917-D Buffalo Nickel PCGS MS-66. Realized $16,100. From the Carl Womack PCGS Registry Set.
· 1918 Buffalo Nickel PCGS MS-67. Realized $21,850. From the Carl Womack PCGS Registry Set.
· 1918/7-D Buffalo Nickel PCGS MS-65. Realized $287,500. From the Carl Womack PCGS Registry Set.
· 1919-D Buffalo Nickel PCGS MS-66. Realized $13,800. From the Carl Womack PCGS Registry Set.
· 1925 Buffalo Nickel PCGS MS-67. Realized $25,300. From the Carl Womack PCGS Registry Set.
· 1925-S Buffalo Nickel PCGS MS-65. Realized $39,100. From the Carl Womack PCGS Registry Set.
· 1926-S Buffalo Nickel PCGS MS-65. Realized $92,000. From the Carl Womack PCGS Registry Set.
· 1927 Buffalo Nickel PCGS MS-67. Realized $14,950. From the Carl Womack PCGS Registry Set.
· 1931-S Buffalo Nickel PCGS MS-66. Realized $1,093. From the Carl Womack PCGS Registry Set.
· 1935 Doubled Die Reverse Buffalo Nickel PCGS MS-64. Realized $11,500. From the Carl Womack Collection.
· 1936-D Buffalo Nickel PCGS MS-68. Realized $29,900. From the Carl Womack PCGS Registry Set.
· 1936-D Buffalo Nickel PCGS MS-67. Realized $2,185.
· 1937-D 3-Legged Buffalo Nickel PCGS MS-66. Realized $80,500. From the Carl Womack PCGS Registry Set.
· 1941-S Jefferson Nickel PCGS MS-66 FS. Realized $1,035. From the Nevadaman PCGS Registry Set.
· 1942 Type I Jefferson Nickel PCGS MS-66 FS. Realized $949. From the Nevadaman PCGS Registry Set.
· 1944-S Jefferson Nickel PCGS MS-67 FS. Realized $1,495. From the Nevadaman PCGS Registry Set.
· 1949 Jefferson Nickel PCGS MS-65 FS. Realized $3,335. From the Nevadaman PCGS Registry Set.
· 1949-S Jefferson Nickel PCGS MS-66 FS. Realized $3,450. From the Nevadaman PCGS Registry Set.
· 1951-S Jefferson Nickel PCGS MS-66 FS. Realized $2,185. From the Nevadaman PCGS Registry Set.
· 1953 Jefferson Nickel PCGS MS-65 FS. Realized $8,050. From the Nevadaman PCGS Registry Set.
· 1953-D Jefferson Nickel PCGS MS-66 FS. Realized $2,760. From the Nevadaman PCGS Registry Set.
· 1955 Jefferson Nickel PCGS MS-65 FS. Realized $2,990. From the Nevadaman PCGS Registry Set.
· 1960-D Jefferson Nickel PCGS MS-64 FS. Realized $32,200. From the Nevadaman PCGS Registry Set.
· 1961-D Jefferson Nickel PCGS MS-65 FS. Realized $23,000. From the Nevadaman PCGS Registry Set.
· 1916-D Mercury Dime PCGS AU-50. Realized $5,980.
· 1795 Flowing Hair Half Dollar NGC MS-63. Realized $51,750.
· 1918-D Walking Liberty Half Dollar PCGS MS-64. Realized $8,625.
· 1919-S Walking Liberty Half Dollar PCGS MS-65. Realized $17,250.
· 1921-D Walking Liberty Half Dollar PCGS MS-65. Realized $17,250.
· 1938-D Walking Liberty Half Dollar PCGS MS-67. Realized $20,700.
· 1866 Motto Seated Dollar NGC PR-66 UC. Realized $28,750.
· 1879-CC Capped Die Morgan Dollar PCGS MS-65. Realized $39,100.
· 1879-CC Morgan Dollar PCGS MS-65. Realized $26,450.
· 1880-CC 8/High 7, Reverse of 1879 Morgan Dollar PCGS MS-67. Realized $20,125.
· 1882 Morgan Dollar PCGS MS-67. Realized $17,825.
· 1889-CC Morgan Dollar NGC MS-62. Realized $20,700.
· 1891-CC Morgan Dollar PCGS MS-65. Realized $5,520.
· 1892-S Morgan Dollar PCGS MS-66. Realized $158,125.
· 1895 Morgan Dollar PCGS PR-67 CAM. Realized $77,625.
· 1895 Morgan Dollar PCGS PR-64 CAM. Realized $65,550.
· 1895-O Morgan Dollar NGC Specimen-62. Realized $36,800.
· 1895-O Morgan Dollar PCGS MS-65. Realized $149,500.
· 1895-O Morgan Dollar PCGS MS-61. Realized $16,100.
· 1876 Trade Dollar NGC PR-65 UC. Realized $16,100.
· 1796 No Stars Capped Bust Right PCGS AU-58. Realized $94,875.
· 1806/4 Capped Bust Right Quarter Eagle NGC MS-60. Realized $32,200.
· 1808 Capped Bust Left Quarter Eagle PCGS MS-62. Realized $207,000.
· 1830 Capped Head Left Quarter Eagle NGC MS-63. Realized $20,700.
· 1885 Three-Dollar PCGS MS-64. Realized $13,800.
· 1879 Flowing Hair Stella NGC PR-64 CAM. Realized $126,500.
· 1795 Small Eagle Capped Bust Right Half Eagle PCGS AU-53. Realized $33,925.
· 1813 Capped Head Left Half Eagle PCGS MS-64. Realized $23,000.
· 1814/3 Capped Head Left Half Eagle NGC MS-64. Realized $36,800.
· 1830 Capped Head Left Half Eagle PCGS MS-64. Realized $89,700.
· 1795 Capped Bust Right Eagle NGC MS-61. Realized $74,750.
· 1803 Small Stars Reverse Capped Bust Right Eagle PCGS MS-63. Realized $42,550.
· 1915 Indian Eagle NGC PR-66. Realized $46,000.
· 1904 Liberty Double Eagle PCGS PR-63. Realized $20,700.
· 1906 Liberty Double Eagle NGC MS-66. Realized $21,275.
· 1907 High Relief Saint-Gaudens Double Eagle NGC MS-64. Realized $25,300.
· 1915 Saint-Gaudens Double Eagle PCGS MS-65. Realized $28,750.
· 1922 Saint-Gaudens Double Eagle PCGS MS-65. Realized $3,220.
· 1915-S Panama-Pacific Round $50 Commemorative Gold NGC MS-65. Realized $103,500.
· 1872 Judd-1232 Pattern Amazonian Quarter Eagle PCGS PR-66. Realized $29,900.
