The Un-talked About Risk Iin Gold

The Untalked About Risk In Gold

No BS Weekly Update 3/5/2012

In This Issue

Looking in the Mirror

Cool Stuff

Secret Lives of Links

Good Eats

QOTD

"When plunder becomes a way of life for a group of men living in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it."

- Frederic Bastiat, French writer and economist, as quoted by Bill Moyers.

Dear ,

The Un-talked About Risk in Gold

Take a look at this recent article from Marc Faber.

(Click to read article)

"If I were an American, I would store it outside the U.S., because in the U.S., it is not completely unlikely that they will eventually take it away."

Who is Marc Faber and what they heck is he talking about?

Let's cover who first. Here's what Wikipedia says about Marc Faber:

"Faber was born in Zürich and schooled in Geneva, Switzerland,[1] where he raced for the Swiss National Ski Team. He studied Economics at the University of Zurich and, at the age of 24, obtained a Ph.D. degree in Economics magna cum laude.[2] Faber is best known for the Gloom Boom & Doom Report newsletter and its related web site featuring "Dance of Death" paintings created by Kaspar Meglinger.[3]

During the 1970s Faber worked for White Weld & Company Limited in New York City, Zürich, and Hong Kong. He moved to Hong Kong in 1973. He was a managing director at Drexel Burnham Lambert Ltd Hong Kong[4] from the beginning of 1978 until the firm's collapse in 1990. In 1990, he set up his own business, Marc Faber Limited. Faber now resides in Chiangmai, Thailand, though he keeps a small office in Hong Kong.[5]

Faber has a reputation for being a contrarian investor and has been called "Doctor Doom" for a number of years. He was the subject of a book written by Nury Vittachi in 1998 entitled Doctor Doom - Riding the Millennial Storm - Marc Faber's Path to Profit in the Financial Crisis.[6][7] Faber has become a frequent speaker in various forums and makes numerous appearances on television around the world including various CNBC and Bloomberg outlets, as well as on internet venues like Jim Puplava's internet radio show.[8] Dr. Faber's also engaged the Barron's Roundtable[9] and the Manhattan Mises Circle, lecturing on "Mirror, Mirror on the Wall, When is the Next AIG to Fall?"[10]"

http://en.wikipedia.org/wiki/Marc_Faber

Ok, so the guy has some credentials and gravitas (always wanted to use that word in a sentence!) but what the heck is he talking about? Well as you may or may not know, back in 1933 President Roosevelt signed Executive Order 6102 "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.

http://en.wikipedia.org/wiki/Executive_Order_6102

So as you can see, it has happened in the past. The question then becomes Could it happen again and if so how likely is it to happen?

The "could it" part is easy to answer, of course it could. "They" are the government; they can do whatever they like? I'm sure the people in 1933 never, ever dreamed that something like that could happen but it did. If it happened once it could certainly happen again.

But how likely is it to happen? I would guess that depends on how badly the government needs revenue. Let's see what Dr. Faber says about the issue.

"Like in 1933, gold will be purchased back by the government" because eventually the financial mess will be so bad that gold prices "will go ballistic, and the government will take away something from a minority, and not many people own gold."

"When gold prices shoot up, it will be quite a popular measure to take it away from these rich people," Faber says. "It's happened before."

So ask yourself, what type of rhetoric are we hearing out of the administration today? Does it have that "get the rich" sound to it that Dr. Faber is talking about? If so then you might want to take heed of Dr. Faber's warning.

Join Us on Facebook and Twitter

As we continue our rollout of new ways to get info to you I'd like to invite you to join us on Twitter and Facebook. As you know we like to provide you with cutting edge information in our effort to keep you well informed. Let me explain what the different options are and what their purposes are.

(Click here to go to reamesfinancial.com)

First off you have our website: www.reamesfinancial.com. The website is updated almost every day with headlines and short commentary on what I feel are the top 2-3 stories of the day. On that page you will also see our most recent Tweets from Twitter. It's all right there on the Home Page so you don't have to search for it. Stop by and take a look.

(Click here to signup for No BS Weekly Update)

Then you have the No BS Weekly Update that you are reading right now. You can expect that to arrive in your email box every Monday. In the No BS Weekly Update you will see our most in-depth article of each week along with a lot of other cool stuff. Be sure to click on the mystery link each week. No telling what you will find there but whatever it is, I promise it will be worth the click!

If you aren't already subscribed to the No BS Weekly Update and would like to do so, please click here.

(Click here to follow us on Twitter)

That bring us to Twitter. If you want to be kept up to date on breaking issues and headlines then subscribe to our Twitter Feed. Twitter is where I will bring breaking news to your attention. Issues that we think are important that may be flying under the radar.

If you would like to follow us on Twitter, please click here.

(Click here to LIKE us on Facebook)

And finally stop by and give us a Like on Facebook. Facebook is where you will see most of our ongoing commentary of what is going on in the economy. It is also where we can have a fun give and take.

There are many of you that help me keep an eye on things by emailing us articles of interest and we really appreciate that. If you use Facebook, please post those articles of interest to our wall so that everyone can see them right away. By working together as a team we can all be better informed

As a special gift today, for all of those who swing by our Facebook page and give us a Like, you will receive our newest special report: The State of the Recovery.

You can give us a like by clicking right here:

Until next week , Protect Your Wealth!

Sincerely,

Fannie Asks Govt for Almost $4.6 Billion After Hefty Loss(AP)

RF: Losing more money on the housing bailout. But because Fannie isn't a bank, the government will continue to focus on direct lending to the banks as the measure of profitability. While they continue to lose money elsewhere they will continue to talk about the profit they made on direct bank loans. Most peopple won't know the difference and will just come to the conclusion that the whole thing was profitable.

The Other GM Bailout (WSJ)

RF: Wow, I'm amazed I didn't know this. I wrote about the GM bailout for my newsletter this week and even with all the research I did for that article I never ran across this info. Just another example of the Power of Pull that Ayn Rand talked about in Atlas shrugged.

British Discover Raising Tax Rates Lowers Revenue(New American)

RF: Like that is a surprise. Our states are learning that also as they implement their tax the rich strategies. Can't remember the most recent one. I think it was either the state of Washington or Maryland.

Teller Reveals His Secrets (Smithsonian)

RF: If you like magic as much as I do I think you will find this article from the Smithsonian really fascinating. Teller explains how magicians manipulate the human mind.

Laughter

Cartoon 3

( www.chartoftheday.com )

Growth

I am a champion - the greatest speech ever [ENG SUB]

Who am I?

Dare to take the mystery link challenge?

We can't be held responsible for the time you waste or the knowledge you gain by clicking this link!

CLICK HERE IF YOU DARE!

"On the 8th day God created bacon" If you love bacon the way I love back then you might want to take a look at this recipe. I haven't tried it yet but I am intrigued with the possibilites. I didn't post the actual recipe this time because you need to click through and see how they do this thing. It is incredible.

In this recipe they use bacon, italian sausage, and BBQ suace. But imagine if you substituded breakfast sausage, brown sugar, and a maple syrup glaze! Can't wait for summer to give this a try!

( Click to see the recipe)

If we're worth reading we're worth recommending.

That's no BS.

Please let others know about us!

Securities offered through Foothill Securities, Inc. Member FINRA/SIPC

Reames Financial is not an affiliate of Foothill Securities, Inc.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Reames Financial and not necessarily those of Foothill Securities, Inc., and should not be construed as investment advice. Neither Phil Reames, Reames Financial, nor Foothill Securities, Inc. gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links in the No BS Weekly Update, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest.

Phil Reames

Reames Financial

1856 Skyler Dr.

Kalamazoo, MI 49008

269-349-3966

preames@reamesfinancial.com

http://www.reamesfinancial.com