Gold and Silver Notes

Here are some interesting notes I took when reading a book about investing in gold and silver.

· “Grandfather Economic Report” – Michael Hodges


· “Rich Dad Prophecy”

· Ron paul interview on goldsilver.com

· Gata.org

· Silver’s main cost is energy when it is being mined. Is oil going to go up? Yes. If oil goes up then when silver is being mined then the price of silver has to go up as well to account for the increased cost of mining it, or the energy used to mine it.

· 12:1 Historical average for silver to gold, i.e. one ounce $10 of silver should buy one ounce $120 of gold. Today (9/22/11) it is at 50:1.

· DIJA undervalued when it costs less than 4 ounces of gold to buy one share of DIJA (BUY DIJA!!!)

· DIJA is fairly valued when it costs 6-7 ounces of gold to buy one share of the DIJA

· DIJA is overvalued when it costs more than 10 ounces of gold to buy one share of DIJA (SELL DIJA!!!)

· Shadow-stats.com

· From 2000-2008 M3 increased 112% so anything that made less than that over the same period of time lost money.

· Make a guesstimate of the price of your house. Then divide the price of the house by the current points of the Dow and you’ll know how many shares of the Dow your house is worth. Now take the price of your house and divide it by the price of gold and you’ll know how many ounces of gold your house is worth. Then take the price of your house and divide it by the price of a barrel of crude oil and you’ll know how many barrels of oil your house is worth.

· Write out a plan!!!!!!!!!!!!!!

· Just cause you write out a plan, however, doesn’t mean you can’t modify it. Success depends on it, especially if you’re failing.

· A plan should have a goal, a strategy (the big picture of how you’re going to get from A to B), and a tactic (the specific methods to be employed to implement the strategy)

· Warren Buffet, “Put all your eggs in one basket and then watch that basket very carefully”.

· Start a business that will grow in the future economic picture you see


· Physical Precious Metals constitute about 50-70% of his investments. 20-40% precious metal stocks, 5-10% is between energy stocks and stocks in other commodities, and the remaining 5% in cash.

· At home portion of precious metals is 10-50% gold and 50-90% silver.