Dilbert, Dow and Gold Theory

“I’m only happy when it rains,

You wanna hear about my new obsession ?

I’m riding high upon a deep depression

I’m only happy when it rains;

Pour some misery down on me..”

-          ‘I’m only happy when it rains’ by Garbage.

 

 

It is as if Al-Qaeda were now in charge of the world’s central banks. Policy makers seem to believe that the best way for cash-strapped banks to attract desperately-needed capital is to reduce deposit interest rates to zero. But savers are not the only innocents being forcibly impoverished. Dresdner’s Peter Tasker expressed the problem of sovereign misfortune nicely in connection with Japan:

 

“It seems so unfair. Those who partied hardest should get the worst hangovers. Japan stayed in its room sipping mineral water. Yet it is now suffering from a humdinger of a headache.”

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Comments

[Simon Winfield]

Hi Tim,
Been putting off buying gold for too long.
How do you yourself get exposure to the shiny stuff?
ETF, Physical, Mines, Funds?
An avid reader,
Simon Winfield

[timprice]

ETFs (eg GBS) are the cheapest, but there is the residual risk of appropriation as per 1933. Gold mining funds (eg Blackrock Gold and General) are as good a way as any of owning related equity with its implicit leverage to the physical price, along with the corporate risk. And physical is the optimal, though priciest, way of getting the full portfolio and inflation insurance.

[Simon Winfield]

Thankyou Tim

[Internet Games]

Nice one!

[RamonGustav]

Congratulations! You have so much useful information, write more.