This presentation is the work of Trevor Hamon and is intended for Information Purposes only. The views expressed are those of the author. The author may hold or may plan to hold positions in any investments that are discussed in this presentation. GOLD GOLD
1977 – Graduated U of Calgary 1987 – 10 yrs Credit Union 2009 – 22 yrs Fncl Services 1977 – Graduated U of Calgary 1987 – 10 yrs Credit Union 2009 – 22 yrs Fncl Services Bio
Comparing Investments As of 31 May, 2011 (Ave Annual Return) 3 Yr % 5 Yr % 10 Yr % 5 Year GIC22.214.171.124 S&P 500 Index-126.96.36.199 Case-Shiller Home Price (31 Mar, 2011) -7.7-7.42.0 Gold20.218.719.1
Knowing what we Know Now – if you could go back 10 years and invest $10,000 – which investment would you choose? 20012011 GIC s$10,000$13,439 Stocks$10,000$10,722 Real Estate$10,000$12,190 GOLD$10,000$57,427
Why will the next 10 years be any better? If you could invest $10,000 today, which would you choose? 200120112021 GICs$10k$13k??? Stocks$10k$11k??? Real Estate$10k$12k??? Gold$10k$57k???
QE 1 (2009): The Fed started Quantitative Easing 1 in March 2009. QE1 lasted about 1 year and the Fed increased the money supply by $600 billion. This was not the first time the US government used cutting fed fund interest rates and large stimulus programs to stimulate the economy. It is the first time in US history it has not been successful.
Quantitative Easing (QE) 2 The Fed is printing money to lower interest rates and increase the money available for lending. The Fed will create new money at a rate of $70 billion per month and buy $70 billion of Government Bonds [Debt] at a lower interest rate than others will accept.
Issues and problem with QE 2: The major problem with quantitative easing is that it devalues the US currency. Since most commodities, [such as Gold & Oil], are valued in US $s, it drives up the cost of commodities. - http://EzineArticles.com/5442223
In 2002, Ben Bernanke gave a speech about Deflation. He mentioned that the government owns the physical means of creating money. … the government can always avoid deflation by simply issuing more money. He said "The U.S. government has a technology, called a printing press that allows it to produce as many U.S. dollars as it wishes at no cost." (He referred to a statement made by Milton Friedman about using a helicopter drop of money into the economy to fight deflation.) (Bernanke's critics have since referred to him as Helicopter Ben.) - http://en.wikipedia.org/wiki/Ben_Bernanke
Economics 101 Like GOLD, U.S. Dollars have value only to the extent that they are strictly limited in supply. - Governor Ben Bernanke, Deflation : Making Sure It Doesnt Happen Here, speech 21 Nov 2002
Goldmine -> Refinery -> Mint ->Sales -> Company 1 Company 2Company 3Company 4 ProfitProfitProfitProfit Goldmine ->Refinery -> Mint -> Sales -> KB EdelmetallKB EdelmetallKB EdelmetallKB Vision Bank, Internet or Dealer Consumer