Posts Tagged ‘Dow Jones Industrial Average’

Gerald Celente of the Trends Research Institute, the man who, according to the Washington Times, accurately predicted “the 1987 stock market crash, the collapse of the Soviet Union in 1991, the 1997 Asian currency crash, and the 2007 subprime mortgage scandal,” was on the Alex Jones Show on May 7, 2010, and said at 1:55:46:

I’m not allowed, by law, to provide financial advice. That’s why I always make it clear — this is what I would do. What I’ve done and I’ve said it over and over again, it’s very simple for me. I buy gold — 80%. The rest of my money, I have hedged. I’m in dollars and I’m in Canadian dollars. One goes up, the other goes down. All I want is wealth preservation. Gold is my wildcard. The other ones, all I want to do is stay in.

For some historical background on gold, it reached an all-time closing high by January 21, 1980, of $850 USD an ounce, not reached again until 28 years later, on January 2, 2008. Its all-time high was reached on December 2, 2009, at $1212.50 USD an ounce. From $255.95 on April 2, 2001, that represents a 474% gain in just under 9 years — a more than 50% annualized return on investment.

Timing is key — From January 21, 1980 to January 1,  2008, your return on investment on gold was negative, while it was 1495% with the Dow Jones Industrial Average. From April 2, 2001 to December 2, 2009, gold’s ROI was 474%, while the DJIA’s was only 6.9%.

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According to CharlieRose.com, the global financial crisis ended on March 10, 2009.

Prior to the week of November 22-28, 2009, the site had the “Financial Crisis” collection on its front page, with the last episode in the series on March 10, 2009.

Quite an interesting coincidence that the last episode from that collection was on the exact day that the Dow Jones Industrial Average reached its lowest level since the full crisis hit in September, 2008, at 6547.01.

What’s happened since then?

THEN: The official unemployment rate stood at 8.1%.
NOW: 10.2%.

THEN: The U.S. dollar was worth 84 on the USDX.
NOW: 75, a 10.7% decline.

THEN: Gold traded at a New York Mercantile Exchange closing price of $896.10 USD.
NOW: Gold traded at an all-time high of $1195.80 USD on Friday, November 27, an increase of 33%.

THEN: The federal budget deficit for 2008 was $438 billion.
NOW: $1.4 trillion.

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