LIVING OFF DIVIDENDS & PASSIVE INCOME

Today gold hit $750, the highest its been in 28 years. It looks like we might break the previous intra-day high of $850 within the next few months.

There was a slew of bad news today related to the housing industry and inflation worries and both oil and gold reacted by going up. I bought into GDX today which is the gold mining index. I had bought it last year, but I sold it to buy actual gold coins.

 I’m still heavily bullish on gold and I think we’re still in the beginning stages of a rally.  Why do I think so? Because almost everyone I know ridicules my idea of gold being a good investment!!!!

Typically, the average person does his investing by looking through the rear-view miror. He invests in whatever was hot last year or the last few years. I fell prey to that investing mindset early on in my investing adventures. I saw that tech stocks had done phenomenally over the past few years and in late 1999 I dumped all my savings (and some money I borrowed off my credit cards) into the high-flyers and subsequently lost all my money. I later found out that successful investing entails “anticipating the anticipations of others”, to quote John Maynard Keynes.

Once the popular media starts hyping up gold, then the average person will want to get in on it.

In a few years, when my friends start asking me about gold and how to buy, I’ll know its time to get out!

Till, then I’m a gold bull. I’ll take a shiny piece of yellow metal over a green piece of paper with a promise on it anyday!

• Insurance Company Buys $400 Million in Gold According to a recent report from Bloomberg, Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer, has been buying gold. This is the first time in its 152-year history that Northwestern has purchased gold. According to Northwestern CEO Edward Zore, “Gold just seems to make sense; it’s a store......
• Cramer Wins Mr Obvious Award! I guess there isn't "always a bull market somewhere"! Jim Cramer just advised people to get out of the stock market saying that stocks might lose 20% this year. Isn't it a bit too late for that prediction? The Dow Jones Index is already down nearly 25% for the year.......
• Gold Play: Great Time To Invest As I've mentioned before I think the US is going to enter a period of inflation and recession brought on by the trade & budget deficit and precipitated by the devaluing dollar. Both Oil and Gold have been in a slow and quiet bull market for the past few years.......

• Ben Bernanke Wants Personal Finance Blogs Out Of Business! According the the Wall Street Journal Economics Blog Fed chairman Ben Bernanke, in a speech today, stated the importance of financial literacy classes in high school. A survey given to high school seniors had only 48.3% of the students correctly answering questions about personal finance and economics. This is down......
• What Exactly is an Oil Speculator? You've heard the buzz word "oil speculator" shouted from the high heavens of Capital Hill, you've seen Americans at the gas pumps blaming these anonymous likely Caucasian men in suits for the high oil prices we are "suffering" with these days, but have you stopped to actually learn what......
• The Quiet Millionaire by Brett Wilder There are so many personal finance books out there and most seem to fall into one of two categories – Get rich insanely quick or get frugal to turn your life around. For those of us that want a more solid and easy to accomplish means of developing a personal......

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