Gold vs. the Fed: The Record Is Clear

Source: The Wall Street Journal,Charles Kadlec (10/29/10)

"A gold-based system delivers higher employment and more price stability"

Next week, the FOMC is expected to signal its desire to increase the inflation rate with additional monetary stimulus. This policy is based on a false and dangerous premise—that manipulating the dollar's buying power will lead to higher employment and economic growth. But the past 40 years points to the opposite conclusion—guaranteeing a stable value for the dollar by restoring dollar-gold convertibility would be the surest way for the Federal Reserve to achieve its dual mandate of maximum employment and price stability.

From 1947–1967, the year before the U.S. began to weasel out of its commitment to dollar-gold convertibility, unemployment averaged only 4.7%. Real growth averaged 4% a year. Low unemployment and high growth coincided with low inflation. During the 21 years ending in 1967, consumer-price inflation averaged just 1.9% a year. Interest rates, too, were low and stable.

What's happened since 1971, when President Nixon broke the dollar/gold link? Higher unemployment, slower growth, greater instability and declining economic resilience. From 1971–2009, unemployment averaged 6.2%, 1.5 percentage points above the 1947–67 average, and real growth rates averaged >3%. We have since experienced the three worst recessions since the end of WWII, with unemployment averaging 8.5% in 1975, 9.7% in 1982 and >9.5% for the past 14 months. During these 39 years in which the Fed was free to manipulate the dollar's value, the CPI rose, on average, 4.4% a year. So, a dollar today buys only about one-sixth of the consumer goods it purchased in 1971.

Economists may disagree on why the gold standard delivered such superior results to the current system. But the data is clear—a gold-based system delivers higher employment and more price stability. It's time to build a 21st-century gold standard for the benefit of American workers, investors and businesses.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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