New teaser Idaho Gold mineHeard a teaser today for a potentially big pay off new Gold mine in Idaho. Key points were that is selling below $2.00 and had 160 million $ cap. Can you elaborate on this and any other Gold or Silver investments worth holding. Do you think we are about to enter a major inflationary period (think great depression 2) and what is the best way to protect your savings at this time?
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I haven’t seen the Idaho gold teaser to check for specifics, but my first guess would be Midas Gold without knowing much more. I don’t own it and don’t know much about it, other than it’s about that size and it’s trying to build a mine in Idaho.
I do not think we’re going to see hyperinflation anytime soon, though it’s always possible. My assumption is that inflation will rise, but the pressure that you’d think would make it rise (improving employment, rising raw materials costs) hasn’t hit the numbers yet. Inflation has been widely predicted, as has another depression, for the past four years as a consequence of the Fed’s easy money policy — those predictors and doomsayers may end up being right eventually, but the market has doubled and the economy continued to recover for four years while they’ve been wrong, so take their more specific and dire predictions with a grain of salt. My favorite way to protect myself from future inflation is by owning a diversified equity portfolio, minimizing exposure to bonds (keeping maturities short and using inflation protected bonds when possible), and having an above-average (but not ludicrous) exposure to commodities including energy and precious metals. If we get a sharp rise in inflation, the one thing I’m really worried about is owning bonds or owning too much cash. But that’s just me. I did write a longer piece about interest rates and yield and the doom-sayers a few weeks ago here: http://www.stockgumshoe.com/2014/05/safe-money-reports-perfect-stock-and-some-thoughts-on-yield-and-danger/
Oh, and here’s what Goldman has been saying (short version: stocks will do better than bonds from here, which should qualify them for a “duh” award): http://blogs.wsj.com/moneybeat/2014/08/05/goldman-sachs-heres-what-will-happen-when-fed-raises-interest-rates/?mod=yahoo_hs