All Posts Tagged With: "gold coins"

You can find a coin shop in nearly every town in the United States. The proprietor is unlike any you will find in any other store. He is unusually steeped in history, intensely aware of the larger context of the passing economic and political scene. This is because if it is a good shop, you will find the whole history of modern life on exhibit, and learn more from looking than you find in a multivolume history.

While stocks lost 12%, gold rose about 10%. For the 11th year in a row (we’ve lost track) our “sell stocks/buy gold” formula paid off. Between falling stocks and rising gold there’s a spread of 22%. Not bad.

Hey…what’s going on with gold? The dollar up, gold down. When we checked yesterday the price was crashing through the $1,550 level.

Ok, so maybe that is a bit romantic, but remember that it’s the Germans that are buying the gold. Enough of them know what is coming in Europe. It stands to reason that Merkel does too.

The S&P 500 made its bear market low in October of 2002 at 776. That’s 13.3% below yesterday’s close of 896. And should it decline to that level, it would be exactly 50% below its all time intra-day high of 1,552 (set on October 31st of last year). By any historical standard, that’s a whopper of a bear market. So Grantham dipping a toe in now is an assumption that this bear market is roughly consistent with similar bear markets of the last 137 years. Take a look below and you’ll see what we mean.

On 321gold.com today, economist Antal Fekete reminds us that this is the 75th anniversary of the seizure of U.S. gold stocks by the presidential diktat of a certain Franklin Delano Roosevelt.