JPM - Filed under 'investment'

Where should you invest in 2010?

"If the world economy improves, commodities will lead the way due to demand and shortages. If the world economy does not get better, commodities are still a great place to be because governments are printing so much money. And, if the world economy doesn't get better, they will print even more money!"

via equitymaster.com

Straight from the horses mouth - famed investor - Jim Rogers, a commodity bull in a china shop... I totally agree with him, particularly, if you know that history tends to rhyme... and a study of secular cycles will show this true!

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Filed under // 2010 commodities investment jim rogers

Hussman Funds - Going for the Gold

$/ounce of gold = $/FC x FC/ounce of gold.

Stare at that equation for a minute. Any time you see the price of gold rise, one of two things must be true. Either the foreign price of gold (FC/ounce of gold) has increased, or the value of the dollar must have declined (i.e. foreign currencies have become more expensive, and $/FC has increased).

As a result, huge and sustained moves in the price of gold require either 1) worldwide inflation, or 2) a plunging U.S. dollar. Unquestionably, rising inflation - particularly worldwide inflation, is a plus for gold prices, but the real action comes when inflation rates are rising worldwide and the dollar is under pressure.

via hussmanfunds.com

If you really want to understand a bit on gold, check out this article... it will be worth its "wait" in gold.

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Filed under // calculation dollar foreign currency gold investment

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Where should you invest in 2010?

Hussman Funds - Going for the Gold