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Is now a good time to own gold?

Richard Russell, Harry Browne, Paul van Eeden, Doug Casey, James Turk, David Morgan
January 6, 2004
Video Transcript

Host: There is some good news to report. You're about to hear that despite these unsettling economic times we need not live in fear. You've discovered how gold can not only protect your wealth against serious economic conditions like inflation, deflation, a currency crisis and the like, but it can also provide you with outstanding and timely profit opportunities.

While the U.S. has more than 200 years of history leading up to it's current predicament. Gold has more than 5,000 years of history as a true storehouse of wealth. Real money that is universally valued. Money that unlike the falling U.S. dollar is tangible and true. Gold coins and bouillon that can help protect and even increase your family's wealth.

Richard Russell: I come to a point where I say, "Well, I'm just not going to worry any further." You can worry yourself to death. I'm just as happy to hold cash and gold right now.

Harry Brown: Just having it allows you to look at the world in a more relaxed way without the sense of anxiety, "Am I doing the right thing?" "Have I bought the right stocks?" and so on. You can relax a little. You know that whatever comes you're going to be taken care of.

Paul van Eeden: In respect to where you live, gold will protect the purchasing power of your assets, your capital, against the devaluation of your local currency.

Mike Maroney: If you look at what's happened over the last 10 years and you think about the major players as far as the financial market, if you look at England and the British pound, if you look at the European Union and the euro, the Japanese and the yen, here in the United States the U.S. dollar, the Swiss and the franc, and many other currencies, what you will find that remains consistent is that all of these currencies have dropped in value by an average of 11.5% per year for the last 10 years based on the value of gold. So in essence, gold has increased in value an average of 11.5% when calculated against a basket of these currencies. It's increased in value against the value of the U.S. dollar 14.9%, the Swiss franc 12%, the British pound 15%. So what we're seeing is the realization that fiat currency is losing it's value and the realization that the one true monetary unit that has existed for 3,000 plus years is increasing in value. Is it telling us that this global shift is taking place?

Doug Casey: At this point, it's very simple for the average person who wants to safeguard himself. They just ought to buy gold. They ought to keep their savings there. They ought to look at it as an investment. I wouldn't be in the stock market now. People forget, that in 1974 the value line index, which is the broadest general index with many stocks that don't have any dividend yield. The value line yielded an average of 7.8% in dividends. People forget how cheap stocks can get. What do stocks yield now? The value line probably yields .5% in dividends. This is scary stuff. I don't care what people say or how Wall Street rationalizes this, they're in the business of selling stocks. The stock market is expensive now. I look around and say, "Now why do I want to own one?" and for lots of reasons I just have to say at this time, I think gold is one of the very best assets. I can name a few others, but gold should be at the foundation of a person's portfolio today.

James Turk: I think we're in a bubble, you know, people talk about the internet stocks being a bubble, or the NASDAQ, or the stock market. The real bubble is the dollar and that bubble has not yet popped, but it is just starting to pop. When it pops, people are going to look back and say, "How could I have been so silly to believe that the dollar is going to always maintain its value?" "Why didn't I diversify into tangibles?" "Why didn't I buy gold?" What I'm saying is look at where we are today, understand the problems and begin protecting yourself, so that you and your family can protect yourself against any problems that arise with regards to the monetary problems of the dollar.

Doug Casey: I think that most people are poorly positioned to weather a financial storm at the moment. However the bright side is, if you buy the line of reasoning I'm using and I believe I am correct, if you position yourself properly, you ought to wind up with a lot more of the marbles after than you do now.

David Morgan: The markets are screaming at us right now. We don't know where to go. We don't know what's safe. We don't know what the long-term trends are and that volatility in all these markets is really for those that are paying attention saying, "Look, you've got to wake up, you've got to put some money into metals, and you've got to be aware of going forward politically and economically that we are in uncharted waters, and you better protect yourself."

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