Gold breaks through USD 1 000

Gold just broke through the USD 1 000 barrier. In Farmann we have recommended you buy gold for years, we hope you have listened to our advice.

I do not think we will ever see gold below USD 1 000 again. This is a depression, and gold is one of the few secure ways to store value. The price of gold in worthless fiat paper money will soar.
If you have not yet bought gold, it is still not to late. Anything under USD 1200 is still a relatively good price.
Accumulate 1 oz coins over time, regardless of price.

Update at 14.30 Eastern Time
Well, after hitting USD 1007.2 today the market is reversing, as allways playing us a wild card again dropping gold down to USD 992.
What can we say other than this to be a great opportunity to get in below 1 000.
This might well be your last chance, a fork in the road, take it.

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  1. DK73
    Posted 20 February, 2009 at 9:31 pm | Permalink

    Didn’t you advocate not buying gold several months ago in your you tube videos? So you think the deflationary , sell -off phase of gold is behind us?

  2. Farmann
    Posted 21 February, 2009 at 7:39 am | Permalink

    It is not as easy as saying “buy gold” or “sell gold”.

    You will need to follow my advice and others and then make up your own mind. This is not a free lunch, unfortunately. Especially now as things are changing so fast.
    Gold is risky now, after the latest rise. But what are the good alternatives?

  3. Baltzersen
    Posted 21 February, 2009 at 10:58 am | Permalink

    But what are the good alternatives?


    Silver? Platinum?

  4. Posted 21 February, 2009 at 3:17 pm | Permalink

    Anything you do is risky these days. Let’s face it: Cash is just another asset class, and while the nominal value of your cash is not going to change, what you will be able to buy with that cash could change dramatically for better or for worse.

    When I said 50 – 50 gold / cash, I mean that’s a pretty safe bet. You will be half-right if we get deflation and half-right if we get inflation. But I should have said 50% currency, 50% inflation-safe things. Because if you only buy gold, you could take some serious hits from fluctuations in gold alone. If you can, spread it into several things: Energy (USO and UNG), foods (DBA), precious metals (GLD & SLV) and even some stocks. Diversification in currencies is good too if you can do it. If your future income is in NOK, you are already over-exposed to the krone.

    In the case of gold and silver, I recommend you take advantage of its unique counter-party risk hedging properties and buy the actual physical stuff and put it in a safe deposit box. I don’t know what safe deposit boxes cost in Norway, but here in Canada I pay CAD 70 a year for a reasonably sized box. You should take advantage of it to store other things as well: Deeds, bonds, legal agreements etc. I have a portable harddrive with backups of all my files in my box. Your backups aren’t going to be worth much in case of fire or burglary if the backup is in the same house as the PC…

  5. Farmann
    Posted 24 February, 2009 at 12:21 pm | Permalink

    I don’t like safe deposit boxes much. The government could confiscate your gold in them, like they did in the US in the 30ties.
    Also that gold will, when you die, enter into your estate and they will tax it, lawyers will charge it and heirs will fight over it.
    Digg it down in the woods instead.