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From the monthly archives:
February 2011
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We blew out an 800-share position yesterday that we’d held for quite some time. The sale price of 34.16 yielded a theoretical gain of $15038, based on an adjusted acquisition cost of 15.35. My goal is to re-board the stock when it looks opportune, establishing a new long-term position that all subscribers can hold. It’s possible this will occur at a higher level, but my main objective is to establish the new position when risk appears low.
No change. A toothsome target at 1379.80 remains my minimum upside objective for the near term. It is a bullish sign that most of the price action over the last several days has occurred above the 1362.00 midpoint pivot associated with the target.
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$2100 ‘Sounds Right’ for an Ounce of Gold
by Rick Ackerman on February 14, 2011 5:46 am GMT · 47 comments
[Our correspondent and occasional guest essayist Erich Simon has been talking up gold for as long as he can remember. Recently, however, after working some comparison numbers based on grocery bills we would have paid 40 years ago, he discovered that gold’s powerful rise was somewhat anemic before Helicopter Ben opened the money jets. He further notes that our apparent overestimation of gold’s strength is no accident – that even the most astute bullion investors have been fooled by our cunning masters. For the full story, read his essay below. RA]
The dollar is down about 98% since it became global tender. Back in 1971, era of Nixon Shock, the price of an ounce of gold was $35 — in line with its 1945 conscription. Right after Nixon closed the gold window, the price peaked at $42. All things being equal (and assuming gold doesn’t get used up), at what price must gold be valued to compensate for a 98% loss from — call it inflation, debt or whatever you like. I think the math goes like this: One dollar is now 2% of its former self. If you divide the 1971 “fair market” price of $42 by .02, you arrive at $2,100. The price of gold (POG) is in fact now around $1,365. » Read the full article