Monday, May 30, 2011

The day the dollar dies...

So I'm sitting at home right now this a raging sunburn. We got home a couple of hours ago from our mountain getaway. We had a great time. Yesterday we went tubing that was a great time. It was the first time I have ever done that. I would highly recommend it if you have not done it and you like the outdoors. However, that is also where I picked up this souvenir sunburn, which I could do without. I came home and in mail I had an update from one of my investment researchers. I hire these guys to do various research for me. The title of the research was the day the dollar dies. Having known nothing about economics a few years ago I have really come up to speed fast. It is more clear to me than ever that we are headed toward very very rocky times for those of us in the good Ol US of A.

Our government for the past decade has been quickly devaluing our currency through their policies. So the question remains how bad is it going to get and how do you take advantage of the looming dollar crisis. I have been positioning myself just for that. I have started investing in mining stocks as a hedge. This is really a double hedge. The companies I am investing in are undervalued companies already that happen to be in the Gold mining sector. So my money grows one of two ways. When the market realizes their value and the appreciate in stock price. Also as the dollar weakens gold prices go up and consequently over time the share price of gold and silver mining companies go up as well.

Now historically this sector has been very volatile. However, I don't know of a better long term investing strategy during uncertain economic times such as the ones we are approaching over the next 5 years or so. You can follow along with my gold mining investing. With the government ending what is known as Quantitative Easing 2, I expect prices to drop over the next 2 to 3 months in this sector which will present more buying opportunities.

Thanks for reading,
J.O.

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