Jim GrantIn this MUST WATCH interview with CNBC, the Interest Rate Observer’s Jim Grant explains why the 2 greatest opportunities for investors right now are Russia & gold. 
Gold, to me is a very sound inoculation against the harebrained doctrine of modern central bankers.  If you harbor doubts about the efficacy as do I of five years of monetary printing via quantitative easing & suppressed interest rates, and wonder how this unprecedented experiment is going to pan out, you can do worse for yourself than to hedge (with gold) from an unscripted monetary outcome.”  

Grant concludes that investors should own gold because:  “
It stands to benefit from the demonstrated, as opposed the theoretically likely, crack up of the current monetary arrangements.”
Grant’s full interview on opportunities in Russia & Gold is below: 


 

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  1. Every contrarian loves mining stocks. But what if the debt and derivatives crashes take long down the whole system? Will the mining share funds still be traded at all? Even the separate mining shares, will mines grant you shareholder rights and benefits?
    If such a systemic crash of funds and or shares is to take place, I doubt we’ll be given a 3-day warning to get out at good prices. Even if the warning is given, who’ll be buying at good prices?

    • Good question!!!  Back in 08-09 when the stock market crashed, I was heavily margined and took a terrific beating.  Even though I had large holdings in gold and oil as hedge.  I had to sell everything to get out from underneath the margin call.  If you recall, even gold and oil took a beating towards the end of the crash because everyone was selling to pay the margin call.  Once the dust settled, of course oil, gold and silver began to rise again.  Today, investors are even more margined than back in the last crash.  I would expect to see mining stocks take another hit initially, when the next bubble bursts, until the margins are settled.  Then, I would expect to see big gains after that.  Since the next crisis might be a currency crisis, I would also worry about the nationalization of mines too.  Personally, I am taking a wait and see attitude and I’ll keep stacking while I wait.

  2. My concern is not the rise in stock prices here or in Russia is not so much the evidence of whether one country or one stock sector is viable, it’s the matter that some time in the near future the stock market will be the stuck market, with government mandates that your investments will be captured by government mandate and harvested for the government’s use.  That is if the electronic trading systems are still intact.

  3. SilverDagger   A PS on the video
    The slave will hate his master, as is evidenced by 94% of the people who disapprove of the Congress, but when the slave master comes to the fields to survey his workers, they will grovel, lick his hand and boot, given him their very substance in the hopes he doesn’t last their back, turn them out or refuse to feed them.  Slaves always complain about their masters.  
    SLAVES MUST RISE UP AND KILL THEIR MASTERS BEFORE THEY CAN HAVE EVEN THE REMOTEST SENSE OF FREEDOM
    But that is unlikely to happen. Our slavery is too long and on going, too comfortable, we are too used to the promise of
    FREE BEEN TOMORROW
    to do anything about our condition
     We will continue in this state of delusion until we can no longer stand the condition.
    Slaves like their salves

  4. Central banking is the banking equivalent of central planning in politics.  Oddly enough, many in government embrace both insofar as they can get away with them.  But, the truth is that central planning is always a dismal flop, whether for political or banking reasons.  They just are not in step with the better qualities of human character.  They are very much IN step with the worst qualities of human character, however.  This alone should be sufficient for rational human beings to reject them on their face.  Not surprisingly, most of the users of this web site do reject the premise of central control in most things, preferring instead the amazing productivity made possible by the glorious expression of personal liberty.
     
    So, while we await the inevitable flop of the current central banking scheme… KEEP STACKING!  :-)
     

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