investment

NYT: Bubble or No, Virtual Bitcoins Show Real Worth

"So why the sudden run-up in value? Some point to the recent crisis over Cypriot banks, which made a currency beyond the control of governments more tempting. And as with a run-up in anything tradable there is also the hypnotic logic that says the price went up today, so that means it will go up tomorrow. Some observers and investors also make the case that bitcoins are in fact undervalued: The total value of the world’s economic activity is enormous. There are certain transactions that are ideal for bitcoins because the currency is relatively anonymous and does not need to be processed by a financial organization or a government." Continue reading →

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Downturn Millionaires – How to Make a Fortune in Beaten-Down Markets

"The price of gold bullion has fallen from its 2011 highs and the prices of good junior companies have been slashed to as little as half their former valuations. All the more reason to start returning broker phone calls according to David Galland, Casey Research managing director, speaking on the Friday eve of the webinar he is moderating that features some of the biggest names in the industry. The webinar features Casey Research Founder Doug Casey, Sprott Global Resource Investments Founder Rick Rule, International Speculator Editor Louis James, 'Endgame' Author John Mauldin and Diary of a Rogue Economist Editor Bill Bonner." Continue reading →

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Bill Bonner: Will Japan’s radical gamble work?

"The BOJ says it just wants to get inflation to 2%. It says it will buy assets with money that didn't exist previously...and keep buying...until inflation reaches 2%. Then what? Well, we guess it will stop. And then what? Then, it will have an economy that has come to expect 70 billion yen in new money every month. And an economy with a monetary base of BOJ assets maybe twice what it is today. People make radical gambles now and then. Businessmen might take a chance now and then. Gamblers might go for long odds. Lovers might hope to get lucky. For a central bank to make a 'radical gamble' bespeaks desperation and lunacy." Continue reading →

Continue ReadingBill Bonner: Will Japan’s radical gamble work?

Bill Bonner: Will Japan’s radical gamble work?

"The BOJ says it just wants to get inflation to 2%. It says it will buy assets with money that didn't exist previously...and keep buying...until inflation reaches 2%. Then what? Well, we guess it will stop. And then what? Then, it will have an economy that has come to expect 70 billion yen in new money every month. And an economy with a monetary base of BOJ assets maybe twice what it is today. People make radical gambles now and then. Businessmen might take a chance now and then. Gamblers might go for long odds. Lovers might hope to get lucky. For a central bank to make a 'radical gamble' bespeaks desperation and lunacy." Continue reading →

Continue ReadingBill Bonner: Will Japan’s radical gamble work?

Trust in Gold Not Bernanke as U.S. States Promote Bullion

"Lawmakers in Arizona are poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states. The Utah Precious Metals Association, established after passage of the 2011 law to advocate for the use of gold and silver coins, has about two dozen members enrolled in a two month-old bill-pay service in which their accounts are held in gold, said Lawrence Hilton, the group’s chairman. Hilton envisions a future with an alternative monetary system based on precious metals in which merchants accept silver coin while gold mostly backs electronic transfers." Continue reading →

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AFP: Bitcoin price bubble soars to record as investors grow nervous

"A cottage industry of stores buying and reselling goods online for Bitcoins has emerged, and some high-profile transactions have helped push the currency into mainstream consciousness. One Canadian man reportedly hoped to sell his house for Bitcoins, and a US man claimed to have traded his 2007 Porsche for 300 Bitcoins. The Cyprus banking crisis – which saw the tiny nation agree a bailout deal with the International Monetary Fund, European Commission and European Central Bank that will shrink the banking sector and lead to losses on deposits of more than 100,000 euros – also coincided with a run-up in Bitcoin valuation." Continue reading →

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Americans pile into silver, gold coins

"Interest in these glittery investments – which soared five years ago – has been especially hot this year. In January, the US Mint sold 7.5 million American Eagle silver bullion coins to dealers – a monthly high, and not far from the 9.9 million silver American Eagles it sold in all of 2007. Demand was so strong that the Mint temporarily ran out of supplies and had to suspend sales for roughly 10 days. In addition, sales of American Eagle gold bullion coins hit highs not seen since June 2010." Continue reading →

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Investors Pile Into Housing, This Time as Landlords

"U.S. housing recoveries almost always have been ignited by rising demand from families and individuals looking for a place to live. This recovery is different. Investors—including some big Wall Street players—are leading the way, say industry executives and analysts. Their role is noteworthy given that flippers and speculators were blamed for helping to inflate the housing bubble of the past decade. Today's investors are mostly buying with the intention of holding on to the homes and renting them out. Fear of buying homes when prices are dropping has been replaced by the fear of missing out on cheap homes." Continue reading →

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As marijuana goes legit, investors rush in

What's striking is how conventional many of the business people's backgrounds — and their plans — increasingly are. Instead of backing marijuana dispensaries, investors such as Privateer and San Francisco-based ArcView Group are rushing to find consulting firms, software companies and insurance agencies to serve the new market. Even Privateer's strategy of merging small companies to form a big one is familiar: In traditional buyout shops, it's called a 'roll-up.' Just don't say that word to Kennedy, unless you want him to blush. Scratch the term 'growing the business' — he catches that one in midsentence, correcting his wording to 'expand.'" Continue reading →

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Doug Casey: All Banks Are Bankrupt

"The whole banking business is corrupt from top to bottom today. Part of the problem is that banks are no longer financed by the individuals who start them, putting their personal net worth on the line. Now, they are all publicly traded entities – just like all brokerages – playing with Other People's Money. Management has no incentive to do anything but pad their wallets, so they pay themselves gigantic salaries and bonuses, and give themselves options. These people aren't shepherding their money and that of clients they know personally. They've got zero skin in the game. This is true all over the world, not just in the US and Europe." Continue reading →

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