Nothing to Say

by JDH on July 7, 2012

I have nothing to say this week, because there is nothing to say.

It is obvious to all that the U.S. is in a crises:

Even in Canada, with a 7.2% unemployment rate, job growth is slowing.

It’s true that the Dow is up around 3% on the year, but is that impressive?

The price of gold is slightly lower than where it started the year, and is trading at about the same level where it was about a year ago.  How can gold be stuck in a trading range for a year while the Powers That Be print money like there is no tomorrow?  I have no idea.

Should we just sell our stocks and buy farmland?  Perhaps.

But, in all of recorded history, government over spending and money printing always leads to the end of the currency, and when that happens a solid asset like gold will become very valuable.

I spoke to a mining executive this week, and he told me that later in the week he was giving a presentation in Mandarin.  He doesn’t speak Mandarin, but some Chinese investors were in Canada to look at the shares in his junior mining company, that, like most junior mining companies, are worth considerably less today than they were a year ago.  I guess if I was Chinese and holding a lot of rapidly depreciating U.S. dollars I’d be looking for some hard assets to exchange them into (like mining stocks).

So, I conclude, the only logical strategy is to wait.

We are men and women of action, and sitting and waiting is not fun, but at this time, wait we must.

Enjoy summer, place your stink bids, keep some cash, and return again next week when I will again probably have very little to say……….