LIVING OFF DIVIDENDS & PASSIVE INCOME

St Gaudens Double Eagle 1 Oz Gold Coin

Today Gold hit an intraday price of $1005/ounce. While not a record, it’s definitely a historical moment, with this event occurring for only the sixth time in history.

We can only speculate as to why the run up to a $1000 so quick but some of the likely reasons are:

• The continued monetization of US debt and resulting devaluation of the dollar
• The ability for 1/6th of the world’s population (the Chinese) to now buy gold
• The Indian Wedding season is about to begin soon and this is when Indian’s start buying gold jewelery
• The Chinese government has been buying gold on the sly. Well maybe not so secretly. They even encouraging their citizens to buy silver and gold
• The Chinese government just agreed to buy $50 Billion of IMF Bonds denominated in SDR (Special Drawing Rights), a mixture of various currencies, which might be a signal that the US Dollar is losing its status as the world’s reserve currency

The only question is whether this rally can last. In the long term, the answer seems obvious, but the short term is anyone’s guess. However, I think $1000 gold is here to stay.

• Why Kiyosaki Is Buying Gold. Robert Kiyosaki has a column on why he's buying in gold. I don't know why it has tomorrow's date on it, but its pretty interesting nonetheless. Bet on Gold, Not on Funny Money by Robert KiyosakiTuesday, July 25, 2006 Gold recently dropped more than $100, or 14 percent, after hitting......
• Gold Hits $750/Oz 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......
• Gold Jumps: Has It Become Correlated To The Stock Market? I've been an avid collector of gold and silver coins and have been following the prices for a years. Gold is supposed to have a negative correlation with the stock market. This year has proved otherwise. Of course, as we've seen repeatedly in the past, all asset classes correlate to......

• Silver Bullion Coins Coins & Paper Money -> Bullion -> Silver People buy silver bullion coins for a few different reasons. Some buy them because of the precious metal content as an investment and buffer against inflation. Some people buy them because they fear that one day our popular currency will become worthless,......
• Another Buy: JP Morgan Chase Becomes JP Morgan Chase WaMu I doubt that name would stick, its too long already.  I like the name of WaMu, but Washington Mutual is boring.  Expect this purchase to eliminate the WaMu brand altogether.   So once again, we do the format of the financial crises analysis: What Happened? WaMu (slogan: "Whoo Hoo!",......
• Sweeping spending cuts and tax increases will be required across the industrialized world Sweeping spending cuts and tax increases will be required across the industrialized world over the next decade to bring public finances under control following the economic crisis, the International Monetary Fund warned on Tuesday. The IMF projected that on current trends, even assuming some discretionary fiscal tightening next year,......

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