Entries Tagged as 'gold'

Lest We Forget

David Frum December 29th, 2011 at 9:51 am 49 Comments

As the gold market tumbles, time to recall: even if the price of gold had remained high forever, people who trusted in Glenn Beck would still have been cruelly cheated.

I’m trying to recall a worse case of media ethics malpractice than Glenn Beck and Goldline, but thus far I draw a blank.

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The Gold Bubble Pops

David Frum December 29th, 2011 at 8:30 am 12 Comments

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The price of gold dropped $31 an ounce yesterday. Gold has dropped $400 since the summer. Gold still shows gains over one year ago. And of course people who bought gold at the prices that prevailed before 2008 can claim profits of 50% or better on their investment. (NB: The best returns have flowed to large-scale investors who eschewed physical gold in favor of futures. And as always, coins are for suckers.)

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Who Gains With a Golden Currency?

October 7th, 2011 at 12:28 am 47 Comments

The Heritage Foundations’ ‘Sound Money’ conference gathered many individuals convinced that something needs to be done to change the monetary system. The strategy advocated by some members of a panel (entitled, “Congressional Changes”) was to offer gold as a ‘competitive’ currency option at the state and national level.

Gold standard advocates have had some success with state-level laws but they are also interested in laws at the national level which will give preferences and advantages to individuals who either already own gold or individuals who plan to make gold investments. Even if a gold standard is not adopted, some gold owners and investors may still benefit from the proposed changes. (Though the question should be asked: at whose expense?)

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Gold’s Value? It’s What We Give it.

September 28th, 2011 at 11:04 am 47 Comments

Eli Lehrer misrepresents my intentions in his most recent piece. To be clear, my article was not making a case for buying gold going forward per se. Trading in commodities is a volatile and highly leveraged activity, and I would not presume to advise the general public on it. As I said in my previous article, I disapprove of celebrities offering investment advice for a fee.

However, the fact remains that Glenn Beck and other conservative commentators’ past recommendations of gold as an investment were the correct call at the time they were made. That is just an empirical fact. The charts don’t lie.

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Gold: Good For Nothing

September 27th, 2011 at 6:21 pm 65 Comments

Brad Schaeffer is right: Numbers don’t lie. And the numbers on gold are pretty clear: it’s a lousy investment over any long period of time. In times of economic uncertainty and malaise (whether it is now or the 1970s) gold prices have indeed gone up rapidly. (Just like dot.com stocks or real estate did.) But these prices came crashing down in the 1970s and will again. And they should.

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Numbers Don’t Lie, Gold Has Done Well

September 27th, 2011 at 1:49 pm 89 Comments


Kenneth Silber recently called out Glenn Beck and others for their perpetual bullishness on gold. However, even a cursory glance at a gold chart shows that one would have been handsomely rewarded for following Mr. Beck’s advice.

From the time the Fed began its cheap money campaign back in 2001, the price of gold has increased from $265/ounce to a whopping $1650/ounce. In other words the dollar’s value has plummeted from 1/265th of an ounce of gold to 1/1650th. Even with the recent correction from it’s latest market high of $1,825/ounce , this represents a roughly 18% annual return on your investment in a decade that saw equities, real estate and other asset classes in turmoil and eventual decline.

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The Gold Bug Bailout

David Frum September 27th, 2011 at 9:13 am 38 Comments

As some may know, my late mother was a very well-known broadcaster on Canadian radio and TV.

Early in her amazing career, she received a call from a company – I believe it was VISA – inviting her to sign up as a commercial spokeswoman. She refused. When she told the story to my father, he asked, “How much did they offer?” She answered, “We didn’t get that far.”

This anecdote became a family joke in the coming years. As my father often said, contra George Bernard Shaw, it’s a very different thing to turn down $5,000 than to turn down $5 million.

I think of this story every time I see a conservative radio or TV host pitching for gold. Click here to read more

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Beck Didn’t Warn Me Gold Can Fall!

September 27th, 2011 at 12:13 am 76 Comments

The gold market meltdown — with prices plunging in recent weeks from over $1, healing 900 an ounce to under $1, seek 600 — is a reminder that the precious metal is a volatile, speculative commodity. It also signals a bear market in credibility for the many right-leaning cable-news and talk-radio hosts who have touted gold relentlessly in recent years as a hedge against economic calamity.

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Still Sound as a Dollar

September 23rd, 2011 at 2:32 pm 22 Comments

Conservatives nowadays routinely worry about the dollar’s strength and stability. The dollar, tadalafil however, illness refuses to cooperate. Instead, malady it lately has been rising in foreign-exchange markets, as it typically does in times of international economic and financial stress.

The dollar serves as a safe haven. Investors tend to transfer funds into dollar-denominated assets, such as U.S. Treasuries, at moments when financial markets around the world are being buffeted. This occurs even if the U.S. economy is not in good shape. As long as the dollar and dollar-denominated assets are seen as relatively safe, the dollar will tend to strengthen in times of trouble.

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Mitt Romney: Goldbug?

August 13th, 2011 at 11:04 am 25 Comments

Romney’s campaign filed FEC reports indicating the candidate’s personal wealth to be between $190 million and $250 million. The most important sentence is buried in this Los Angeles Times article:

“The couple owns between $250,001 and $500,000 in gold.”