Why the Rich get Richer…With Gold
Written by Richard Daughty
…the angriest guy in economics
The Mogambo Guru

The article is even more hilarious if you read it without commas 🙂 Enjoy.

I get mail from people who lament the fact that they, too, have tried to educate their bonehead friends and relatives about gold and silver, but they were, predictably, rebuffed. Our consolation must be that these people are the majority, and it is a rule of investing that the majority has to be wrong. That is the only way for the minority, who are right, to make money.

Ergo, we who are buying gold and silver are the minority that will be right, and we will be the ones that make a lot of money.

And the way it works is that as time goes on, as silver and gold rise and rise, and commodities rise and rise, and the majority find out that they were wrong in trying to make money with stocks, bonds, houses, and government contracting.

Then the majority, who have been burned again, will become even more frantic after having lost so much money on their stock, bond and real estate investments, and are even more desperate for profits, as retirement is nearer and nearer and almost here, and all the money they planned on having is gone. And then more and more people will climb on board the gold and silver and oil and commodities train because that is where profits are being made, driving prices up and up until, one day, a slight majority of people are in commodities, and only a slight minority are not.

And then it will still continue, as more and more people move into commodities, and prices will rise and rise the whole way in response to this exponentially-growing demand, attracting more and more money, until the overwhelming majority are now invested in commodities in general, and gold and silver in particular. Then that whole bubble will collapse, too, and the majority will, again, lose, as they must.

That is why you, in the minority, will make a lot of money for a long, long time by just buying gold and silver now, and why the majority, who are not, are wrong.

In that regard, it is again proved by Tim Iacono, of Iacono Research, who says that when you walk into a coin shop, “you’re more likely to see people selling than buying – it’s kind of depressing and ironic at the same time actually. It is surely a sign of the times when soaring metal prices cause financially stretched individuals to sell family heirlooms or other precious metals – all during an era of supposedly low inflation.”

Advertisements

Tags: , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: