Tag Archives: gold

A brief history of the Polish inflation after 1984

Inflation and hyperinflation – what they are, what they are not

Inflation is an increase of the amount of money in circulation. Hyperinflation is simply very high inflation, which usually occurs at the last stage of fiduciary currency. Just before the collapse of paper money, there is most frequently a period of a highly dynamic growth of the amount of money in circulation. Consequently, it leads to an equally sharp rise in prices because a greater amount of money follows the same amount of goods. In a nutshell, newly issued money does not have cover in real goods. It has become customary to think that hyperinflation starts when prices increase by at least 50% in one month. On the other hand, we can talk about high inflation when the growth of money amount reaches the rate of 5% in a year.

Historically, gold was the best measure of inflation. Today the gold ore is also treated as the only currency that has no counterparty risk and that is why it was used in this study as an objective measure of inflation.
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Bear trap vs. Bull trap

There is an interesting article about possible bubble in precious metals. The charts look very convincing but… Please, read the article first :)

I wonder what is the correlation of those charts. It’d seem rather high on the positive side.

Is the public really in gold and silver?

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Investment strategy

I like being right, I usually am right and I don’t like to explain myself to or argue with people who think they know better. Since I’m also lazy I’ve decided to just give you my investment strategy without any lengthy justification. Take it or leave it.

Making money

If you don’t mind being (called) a speculator this is what you can do to make a lot of money in the coming years:

  1. buy gold (physical coins/bars, GoldMoney.com, various ETFs, RCGLDAOPEN on GPW in Poland)
  2. buy silver (physical coins/bars, GoldMoney.com, various ETFs, RCSILAOPEN on GPW in Poland)
  3. buy precious metals mining stocks (e.x. KGHM on GPW in Poland)
  4. buy agricultural commodities
  5. buy agriculture and agriculture related stocks (e.x. Astarta and Synthos on GPW in Poland)
  6. buy Thorium and Uranium mining stocks
  7. buy BTC (BitCoin) or invest in a BitCoin earning business
  8. buy stocks of companies investing in Africa
  9. few more speculative investments…

Losing money

Remember, don’t be a sucker, don’t lend money, hence avoid:
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Swiss Gold Franc – back to the gold standard?

From political fringes to mainstream economic debate

In his article (in German)  (English Google translated version) Von Thomas Jacob, of the Property and Freedom Society (run by Mises Institute people) proposed a gold backed Swiss Franc. You can also listen to Coben Centre Radio interview (direct link to mp3 in the article) on the subject or you can listen to Jim Rickards interview on Kingworld News.

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Competitor for COMEX this May

Free market competition in commodities market

After recent correction in the silver market many commentators have spoken out about possibility of price manipulation by the CME (owner of the COMEX). Since there is no proof of such manipulation therefore I will assume there wasn’t any but many market participants may have different opinion on the subject.

However, any long-lasting manipulation is only possible in a monopoly and since free market does not favor monopolies, so it was only a matter of time before a competitor for COMEX arise. At this time the only practical place for a new commodity exchange is in Asia and on May 18 Hong Kong Mercantile exchange will finally offer an alternative to the COMEX[i].
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