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Tigris Financial Goes All-In on Gold - WSJ.com

Gold is setting records again, boosting the holdings of central banks, Armageddon worrywarts, and ordinary people who own gold bars, coins and jewelry.

But few individuals stand to benefit as much as low-profile billionaire Thomas Kaplan. A New York-born commodities magnate who earned a doctorate in British colonial history at Oxford, Mr. Kaplan oversees an empire devoted largely to gold.

Many fund managers and high-rollers have allocated small percentages of their portfolios to gold as a hedge against inflation. But Mr. Kaplan is the bull of bullion. He has gone further than perhaps any other major investor, betting the majority of his wealth on gold and other precious metals. And it reflects his deeply held conviction that global economic instability could bring rising demand for gold.

via online.wsj.com

Warren Buffet is famous for saying that portfolio diversity is a bad idea. He says that you should place your bets on your top 2 or 3 ideas, based on analysis, not your top 20. Sounds like Thomas Kaplan follows the same philosophy.

Filed under  //  economics   Financial System   gold   stocks   Thomas Kaplan   Tigris Financial  
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Meltup: Be one of the 20% who understand that the US is, in reality, bankrupt.

This is a very good video.  It requires an investment of an hour of your time - but it is worth it.  There are some core concepts here that I wish everyone would understand.  

Filed under  //  dollar   Federal Deficit   Federal Reserve   fiat currency   Financial System   gold  
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Gold is not increasing in value, it is The Dollar is decreasing in value

So the price of gold has gone through the roof the last couple of weeks.  Most people mis-read this move.  Nothing has changed in the value of gold - it is an inert metal for which no new use has been discovered.  The way to read this move is that the value of the Dollar has gone down.  As have every other fiat currency.

To demonstrate this look at the following chart.  This shows the price of oil denominated in Dollars (blue line), Euros  (red line) and Gold (purple line), from 2001 to 2008.  In other words, this is the amount of the currency you would have to trade to get a barrel of oil.
This chart clearly shows that if you are using a fiat currency to buy oil then the price went up 300% to 500%.  And yet if you were buying your oil with gold as the currency then the price hardly changed at all.  This shows clearly that the value of the commodity has not changed, it is the value of the currencies which have declined.  Since the currencies are worth less, it takes more of them to buy the same amount of oil.

This is the secret that the Fed and the Government do not want you to know.  They want you to think that the things that you buy are getting more expensive (oil, gold, bread, milk, etc.) and not that the currency that you are paid in is actually worth less.  In other words, if you were paid in gold, rather than dollars for your work you would not see an increase at the gas pump.

Think about it.

Filed under  //  dollar   fiat currency   gold  
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