Tuesday, April 6, 2010

What to do with your tax refund

Buy gold. Not paper gold, physical gold. Have it delivered into your hands and hide it. Hide it so that only you can find it. There are well-known historical reasons for this.

Gold's price has mostly idled the past few months, but don't fret. Over the past decade, the S&P 500 has lost 25 percent, while this time ten years ago gold was selling for around $300/ounce. Today it's up to $1,135/ounce. You can do the math.

But what about the future?

No one knows what will happen, but given that the world's economies are dominated by central banks and fiat paper money, and that both of these are simply tools for governments to take money from your pocket and put it someplace else, without telling you, and that every paper money scheme in history has ended in disaster, with the little guys taking the hit, I wouldn't be surprised if the current trends continue for a long time to come.

Don't be caught papering your walls with Bernanke's notes. Buy gold. If gold is too expensive or unavailable buy silver.

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