Once you have decided to take your marketing campaign to Google's AdSense pay per click program, you agree to a number of rules including:
- No hidden pages. You must have a clear hierarchy and each page needs at least one link to get there.
- No broken links. If you link outside of your site, make sure you check your links often. No more than 100 links per page.
- When designing your site, create one that is helpful to a user; don't design a page for search engines. Make sure you clearly define what your site is about.
- Your TITLE and ALT tags should be precise and descriptive.
- You need a site map to help users find what they are looking for if your menu doesn't.
- No hidden text.
- No redirection of your site
Even if you follow all these design rules, you may still be at risk of losing your AdSense advertiser account or have temporarily been fined a penalty in the form of your ads being removed from rotation on other sites. The penalty may go away with time, but it's best to double and triple check your site then file a re-inclusion request (instructions below.) Include in your request which changes you've made and that it won't happen again.
Your competitors might have a plan that could get you banned. It's called "click bombing" and it's against Google's policy.
Click bombing happens when someone, be it a competitor or not, repeatedly clicks the pay per click ad for a business in order to raise flags with Google. Google rates their ads based on relevance, so the more an ad is clicked, the more relevant it becomes, and the higher up the list it moves. This has made it very easy for business owners to move themselves up the relevance list, so Google countered this practice by red flagging any business that has a significant spike in AdSense hits. If the hits all trace back to the same IP address or addresses, the advertiser is removed for "invalid clicks".
Finding out about this strength in Google's search engine, sneaky competitors have started to exploit it by purposely clicking the competitions ad again and again, in order to ban the ad.
If this has happened to you, or if you've been banned for violation of any of the design or technological terms of your contract, you can sometimes have it overturned by contacting customer support. You can contact Google support by visiting http://www.google.com/suppor......st.py. Make sure you type "Re-inclusion Request" in the subject of the email. Keep your request simple, short and to the point. No need to threaten Google that you'll stop advertising with them or list how long you've been a customer.
It is imperative, though, that you run reports frequently and store the data outside of your Google account. This will help prove to Google that a click bombing happened should you be removed. You are not guaranteed a reversal, however. In fact, most pleas to Google to have a banned account go unheard.
If you don't get a positive response from Google, you may want to check out some of the other pay per click programs, like Yahoo! Publisher Network or the many affiliate programs online
Sunday, April 11, 2010
Sunday, April 4, 2010
Crystallex faces major cash crunch
Crystallex International Corp.'s long, drawn-out fight to develop the Las Cristinas gold project in Venezuela appears to have taken its toll as the Toronto-based company warns it may soon run out of cash to operate.
The announcement comes after Crystallex finished the year with $6.9-million (U.S.) in cash, down significantly from $34.5-million at the end of 2008.
The money it has now, and what it raises through equipment sales, will be enough to get it through the second quarter, but won't cover its obligations over the next 12 months, the company said.
"This uncertainty raises substantial doubt as to the ability of the company to meet its obligations as they come due and, accordingly, as to the appropriateness of the use of accounting principles applicable to a going concern," Crystallex said yesterday.
While it is looking at a number of financing options, ranging from new joint-venture partners to the sale of equity, there's no guarantee those will come through.
Crystallex lost $311.9-million in 2009, compared with $21.8-million the year before, due largely to a $297.1-million writedown on the value of its interest in the languishing Las Cristinas project.
Despite its financial troubles, and its struggle to get approvals to develop Las Cristinas from the Venezuelan government, Crystallex said it will continue to pursue the project.
Its permit for the project, located in the southeast corner of Venezuela in Bolivar State, was denied in 2008. Crystallex appealed, but said it has yet to receive a response. The company doesn't own the mining claims to the deposit but has the right to operate the mine under a contract signed in 2002.
Crystallex refuses to acknowledge reports that the government has taken over the project. "Despite media reports of possible nationalization of mining assets, the company has not received any official notification from any government entity concerning changes to the control of Las Cristinas," it said in documents filed as part of its year-end financial statements. It also said its legal rights to the project remain "intact."
Calls and e-mails to the company were not answered yesterday and the voice mailbox for the investor relations contact was full.
Earlier this year, President Hugo Chavez reportedly chose a Russian firm to run the project as a joint venture with the Venezuelan government. The move is viewed as a way for the oil-dependent nation to secure new sources of income as crude prices fall from their highs before the global recession.
CRYSTALLEX (KRY)
Close: 39¢, up 7¢
The announcement comes after Crystallex finished the year with $6.9-million (U.S.) in cash, down significantly from $34.5-million at the end of 2008.
The money it has now, and what it raises through equipment sales, will be enough to get it through the second quarter, but won't cover its obligations over the next 12 months, the company said.
"This uncertainty raises substantial doubt as to the ability of the company to meet its obligations as they come due and, accordingly, as to the appropriateness of the use of accounting principles applicable to a going concern," Crystallex said yesterday.
While it is looking at a number of financing options, ranging from new joint-venture partners to the sale of equity, there's no guarantee those will come through.
Crystallex lost $311.9-million in 2009, compared with $21.8-million the year before, due largely to a $297.1-million writedown on the value of its interest in the languishing Las Cristinas project.
Despite its financial troubles, and its struggle to get approvals to develop Las Cristinas from the Venezuelan government, Crystallex said it will continue to pursue the project.
Its permit for the project, located in the southeast corner of Venezuela in Bolivar State, was denied in 2008. Crystallex appealed, but said it has yet to receive a response. The company doesn't own the mining claims to the deposit but has the right to operate the mine under a contract signed in 2002.
Crystallex refuses to acknowledge reports that the government has taken over the project. "Despite media reports of possible nationalization of mining assets, the company has not received any official notification from any government entity concerning changes to the control of Las Cristinas," it said in documents filed as part of its year-end financial statements. It also said its legal rights to the project remain "intact."
Calls and e-mails to the company were not answered yesterday and the voice mailbox for the investor relations contact was full.
Earlier this year, President Hugo Chavez reportedly chose a Russian firm to run the project as a joint venture with the Venezuelan government. The move is viewed as a way for the oil-dependent nation to secure new sources of income as crude prices fall from their highs before the global recession.
CRYSTALLEX (KRY)
Close: 39¢, up 7¢
Gold Drops From Two-Week High, Trimming Weekly Gain, on Dollar
By Jae Hur
April 2 (Bloomberg) -- Gold declined from a two-week high, dropping for the first time in three days as the dollar climbed, eroding the appeal of the metal as an alternative investment.
Bullion lost as much as 0.6 percent after gaining 2.1 percent in the previous two days. The dollar climbed after earlier touching the lowest level in two weeks against the euro. Gold typically moves inversely to the U.S. currency.
“It’s a correction after prices reached a two-week high,” said Hiroyuki Kikukawa, general manager of research at Tokyo- based IDO Securities Co.
Gold for immediate delivery lost $5.60 to $1,121.20 an ounce at 2:05 p.m. in Tokyo after touching $1,128.22 yesterday, the highest level since March 19. The metal has gained 1.2 percent this week.
The euro fell 0.2 percent to $1.3567 after touching $1.3591, the highest level since March 19.
Trade was thin as markets in U.K. and the U.S. are closed today for the Good Friday holiday. Bullion for June delivery, the most widely held contract, closed 1 percent higher at $1,126.10 an ounce yesterday on the Comex division of the New York Mercantile Exchange.
Thirteen of 23 traders, investors and analysts surveyed by Bloomberg, or 57 percent, said bullion would rise next week. Five forecast lower prices and five were neutral.
“The bullion market may be supported next week by an improving economy and a weaker dollar,” Kikukawa said. “With the start of the second quarter, an influx of speculative funds may also underpin the market.”
Shares Gain
The MSCI World Index of shares climbed to an 18-month high as signs of strength in global manufacturing and a drop in U.S. jobless claims boosted confidence in the economic recovery. Crude oil surged to a 17-month high yesterday.
Silver for immediate delivery was little changed at $17.92 an ounce after touching $17.9925 yesterday, the highest level since Jan. 21. The metal has risen 6.1 percent this week, the biggest gain since the week ended Jan. 8.
Palladium gained 0.7 percent to $494.25 an ounce, the highest level since March 2008. It has risen 7.9 percent this week.
Spot platinum dropped 0.4 percent to $1,662.75 an ounce after touching $1,674.68 yesterday, the highest level since August 2008. The metal has advanced 4.1 percent this week, the first weekly gain in three.
To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net
Last Updated: April 2, 2010 01:14 EDT
April 2 (Bloomberg) -- Gold declined from a two-week high, dropping for the first time in three days as the dollar climbed, eroding the appeal of the metal as an alternative investment.
Bullion lost as much as 0.6 percent after gaining 2.1 percent in the previous two days. The dollar climbed after earlier touching the lowest level in two weeks against the euro. Gold typically moves inversely to the U.S. currency.
“It’s a correction after prices reached a two-week high,” said Hiroyuki Kikukawa, general manager of research at Tokyo- based IDO Securities Co.
Gold for immediate delivery lost $5.60 to $1,121.20 an ounce at 2:05 p.m. in Tokyo after touching $1,128.22 yesterday, the highest level since March 19. The metal has gained 1.2 percent this week.
The euro fell 0.2 percent to $1.3567 after touching $1.3591, the highest level since March 19.
Trade was thin as markets in U.K. and the U.S. are closed today for the Good Friday holiday. Bullion for June delivery, the most widely held contract, closed 1 percent higher at $1,126.10 an ounce yesterday on the Comex division of the New York Mercantile Exchange.
Thirteen of 23 traders, investors and analysts surveyed by Bloomberg, or 57 percent, said bullion would rise next week. Five forecast lower prices and five were neutral.
“The bullion market may be supported next week by an improving economy and a weaker dollar,” Kikukawa said. “With the start of the second quarter, an influx of speculative funds may also underpin the market.”
Shares Gain
The MSCI World Index of shares climbed to an 18-month high as signs of strength in global manufacturing and a drop in U.S. jobless claims boosted confidence in the economic recovery. Crude oil surged to a 17-month high yesterday.
Silver for immediate delivery was little changed at $17.92 an ounce after touching $17.9925 yesterday, the highest level since Jan. 21. The metal has risen 6.1 percent this week, the biggest gain since the week ended Jan. 8.
Palladium gained 0.7 percent to $494.25 an ounce, the highest level since March 2008. It has risen 7.9 percent this week.
Spot platinum dropped 0.4 percent to $1,662.75 an ounce after touching $1,674.68 yesterday, the highest level since August 2008. The metal has advanced 4.1 percent this week, the first weekly gain in three.
To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net
Last Updated: April 2, 2010 01:14 EDT
Saturday, April 3, 2010
VPN Services Compatibility
Unlike using a proxy site that is very limited constantly being blocked, our VPN services are compatible with pretty much any internet application such as dreamweaver, Internet Explorer, FireFox, Skype, Outlook Express, Net2Phone, MSN, ICQ, and many more!
All our solution will work with windows 2000 and higher versions, iPhones & Mac OS. Although rare, some users have corrupt system files that will not allow for the connection to be established. Should you not be satisfied we would gladly process a refund on your behalf.
Buy a VPN Account to Bypass ISP Restrictions & Blocks
bypass proxy serversThe service we offer at VPN Accounts is not necessarily for bypassing internet restrictions and blocks imposed by governments via ISP (Internet Service Provider) poxies on your surfing habits, as we believe some blocks are in place to protect the end user.
Voip is blocked in Dubai. However, many feel they would like to decide for themselves. For example, many people don't like to have Skype and other VoIP application blocked and thus forced to pay high calling rates. Some don't see a reason for blocking Facebook, Photobucket, Stumbleupon, Myspace, Youtube or Hi5 and would like access.
With our VPN connections you can enjoy internet freedom, watch us tv and everything you do will be anonymous to protect your privacy. As the end user, YOU can now regain control!
Although it can be used to bypass ISP censorship (such as the great firewall of China) many users use it at WiFi hotspots to secure their internet connection and as general security measure against online hacking attacks. An Antivirus program is simply not enough! If you are concerned, consider buying a VPN tunnel via our secure servers.
We have no hidden fees and no long term contracts, you can cancel the payment plan anytime before the next billing cycle on your own or by sending us an email.
All our solution will work with windows 2000 and higher versions, iPhones & Mac OS. Although rare, some users have corrupt system files that will not allow for the connection to be established. Should you not be satisfied we would gladly process a refund on your behalf.
Buy a VPN Account to Bypass ISP Restrictions & Blocks
bypass proxy serversThe service we offer at VPN Accounts is not necessarily for bypassing internet restrictions and blocks imposed by governments via ISP (Internet Service Provider) poxies on your surfing habits, as we believe some blocks are in place to protect the end user.
Voip is blocked in Dubai. However, many feel they would like to decide for themselves. For example, many people don't like to have Skype and other VoIP application blocked and thus forced to pay high calling rates. Some don't see a reason for blocking Facebook, Photobucket, Stumbleupon, Myspace, Youtube or Hi5 and would like access.
With our VPN connections you can enjoy internet freedom, watch us tv and everything you do will be anonymous to protect your privacy. As the end user, YOU can now regain control!
Although it can be used to bypass ISP censorship (such as the great firewall of China) many users use it at WiFi hotspots to secure their internet connection and as general security measure against online hacking attacks. An Antivirus program is simply not enough! If you are concerned, consider buying a VPN tunnel via our secure servers.
We have no hidden fees and no long term contracts, you can cancel the payment plan anytime before the next billing cycle on your own or by sending us an email.
What is a VPN? Anonymity, Security & Privacy!
VPN is about creating a virtual private network or tunnel over the public network "internet". Each VPN tunnel is totally anonymous on the public internet and it helps to keep your activities of internet users anonymous, private and secure. A VPN connection is an attractive option for people concerned about their security and privacy. It is not a web proxy, it is much more advanced and secure. Think of it as a very strong vpn connection.
The service secures your online activity, especially if you are using public unsecured WiFi networks. Using our VPN services, you can now surf the web anonymously & prevent your ISP from keeping logs on your online activities! If sites are blocked you can access Blocked websites ... Unblock blocked websites by bypassing proxies & it works with Skype and other VoIP applications too!
Anyone who uses the interment should be concerned about their privacy. Did you know the European Union requires that ISP (Internet Service Provider) keep logs of their subscribers? Other countries and regions do it too! Our service is not limited to a specific region but targets the global internet community by preserving privacy via VPN Anonymity and we eliminate all log files unlike most Internet Service Provider that have been shown to store them for months!
The service secures your online activity, especially if you are using public unsecured WiFi networks. Using our VPN services, you can now surf the web anonymously & prevent your ISP from keeping logs on your online activities! If sites are blocked you can access Blocked websites ... Unblock blocked websites by bypassing proxies & it works with Skype and other VoIP applications too!
Anyone who uses the interment should be concerned about their privacy. Did you know the European Union requires that ISP (Internet Service Provider) keep logs of their subscribers? Other countries and regions do it too! Our service is not limited to a specific region but targets the global internet community by preserving privacy via VPN Anonymity and we eliminate all log files unlike most Internet Service Provider that have been shown to store them for months!
Friday, March 26, 2010
Statsweeper Alert: Will the Stock Market Soar or Plunge?
Statsweeper has picked up a number of alerts on trading of U.S. Treasuries recently.
Most notably, yields on short-term U.S. government debt have been rising. The one-month, three-month and six-month bills have all broken out of their recent trading ranges. Yields on all three bills stand at six-month highs.
Rising yields indicate investors are pulling money out of short-dated investments.
This makes sense. In the wake of the financial crisis late in 2008, Treasury bills became the "weapon of choice" for investors looking for a safe place to park their money and weather the economic storm.
Now that the outlook is improving, investors are taking their money out of low-yielding bills and looking for better investments.
Governments are doing the same thing. Statsweeper recently alerted users to a large drop in buying of U.S. Treasury bills by foreign central banks. In December, central bank holdings of T-bills fell 20%, to $534 billion.
The drop comes after foreign official institutions built a large position in T-bills through late 2008 and early 2009. These investors bought over $400 billion in the span of just six months.
Those bills are now being cashed out, with $85 billion having been redeemed in the final quarter of 2009 and through January 2010.
Here's the key takeaway for investors. The recent rise in short-term yields has coincided almost exactly with a powerful rally in the stock market.
Since early February, the Dow Industrial Average is up almost 10%. Suggesting that investors are moving out of T-bills and cycling their newfound cash into the stock market, driving share prices higher.
T-bill yields are thus becoming an excellent leading indicator of stock market performance. A continued rise in yields would suggest more money coming available for re-investment in stocks.
But a flattening or falling yield profile would suggest this new cash has been tapped out. Raising a red flag for the markets.
Keep watching the action at www.statsweeper.com.
Dave Forest
Pierce Points Weekly Newsletter
info@statsweeper.com
****
Statsweeper is the financial community's premier data monitoring center. The site tracks commodities, economics and finance data from around the globe, and alerts investors to critical changes and emerging trends. Visit www.statsweeper.com for more, and sign up for Pierce Points daily e-letter (www.piercepoints.com) for commentary on what the data mean for your commodities investments.
The information provided here is based on data collected by www.statsweeper.com and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade any securities or commodities named herein. Information contained herein is obtained from sources believed to be reliable, but is in no way assured. All materials and related graphics provided herein and any other materials which are referenced herein are provided "as is" without warranty of any kind, either express or implied. No assurance of any kind is implied or possible where projections of future conditions are attempted. Readers using the information contained herein are solely responsible for verifying the accuracy thereof and for their own actions and investment decisions. The author of this article and the owners of www.statsweeper.com do not make any representations about the suitability of the information or any other materials that are referenced herein for any purpose whatsoever. The information contained herein does not constitute investment advice and neither the author nor www.statsweeper.com are registered with any securities regulatory authority to provide investment advice. Readers are cautioned to consult with a qualified registered securities adviser prior to making any investment decisions. The information contained in this publication has not been reviewed or authorized by any of the companies mentioned herein. The owners, employees and operators of www.statsweeper.com and their immediate families have no investment in the companies and products mentioned in this article. Statsweeper values the privacy of its users and does not share personal information with anyone, ever.
Most notably, yields on short-term U.S. government debt have been rising. The one-month, three-month and six-month bills have all broken out of their recent trading ranges. Yields on all three bills stand at six-month highs.
Rising yields indicate investors are pulling money out of short-dated investments.
This makes sense. In the wake of the financial crisis late in 2008, Treasury bills became the "weapon of choice" for investors looking for a safe place to park their money and weather the economic storm.
Now that the outlook is improving, investors are taking their money out of low-yielding bills and looking for better investments.
Governments are doing the same thing. Statsweeper recently alerted users to a large drop in buying of U.S. Treasury bills by foreign central banks. In December, central bank holdings of T-bills fell 20%, to $534 billion.
The drop comes after foreign official institutions built a large position in T-bills through late 2008 and early 2009. These investors bought over $400 billion in the span of just six months.
Those bills are now being cashed out, with $85 billion having been redeemed in the final quarter of 2009 and through January 2010.
Here's the key takeaway for investors. The recent rise in short-term yields has coincided almost exactly with a powerful rally in the stock market.
Since early February, the Dow Industrial Average is up almost 10%. Suggesting that investors are moving out of T-bills and cycling their newfound cash into the stock market, driving share prices higher.
T-bill yields are thus becoming an excellent leading indicator of stock market performance. A continued rise in yields would suggest more money coming available for re-investment in stocks.
But a flattening or falling yield profile would suggest this new cash has been tapped out. Raising a red flag for the markets.
Keep watching the action at www.statsweeper.com.
Dave Forest
Pierce Points Weekly Newsletter
info@statsweeper.com
****
Statsweeper is the financial community's premier data monitoring center. The site tracks commodities, economics and finance data from around the globe, and alerts investors to critical changes and emerging trends. Visit www.statsweeper.com for more, and sign up for Pierce Points daily e-letter (www.piercepoints.com) for commentary on what the data mean for your commodities investments.
The information provided here is based on data collected by www.statsweeper.com and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade any securities or commodities named herein. Information contained herein is obtained from sources believed to be reliable, but is in no way assured. All materials and related graphics provided herein and any other materials which are referenced herein are provided "as is" without warranty of any kind, either express or implied. No assurance of any kind is implied or possible where projections of future conditions are attempted. Readers using the information contained herein are solely responsible for verifying the accuracy thereof and for their own actions and investment decisions. The author of this article and the owners of www.statsweeper.com do not make any representations about the suitability of the information or any other materials that are referenced herein for any purpose whatsoever. The information contained herein does not constitute investment advice and neither the author nor www.statsweeper.com are registered with any securities regulatory authority to provide investment advice. Readers are cautioned to consult with a qualified registered securities adviser prior to making any investment decisions. The information contained in this publication has not been reviewed or authorized by any of the companies mentioned herein. The owners, employees and operators of www.statsweeper.com and their immediate families have no investment in the companies and products mentioned in this article. Statsweeper values the privacy of its users and does not share personal information with anyone, ever.
Think Outside the Box: Maverick Investing in the Age of Obamanomics Part 3
(This is the third of four articles about Maverick Investing in the Age of Obamanomics)
Born Again Gold Bug
When I did a recent radio interview, the host (who was basically friendly), said, “You’ve always liked gold.”
My response? “No, no, no!”
I have been bearish on gold for most of two decades before December 2003. I have only been bullish on gold twelve years out of the thirty-four years I have been publishing The Ruff Times. I was bearish or neutral for twenty-two years. I’ve only been bullish since December 2003. But I guess I can never shake the label of “gold bug” the media gave me way back in the ‘70s.
When I first began publishing The Ruff Times in 1975, I begged my subscribers to buy $120 gold and $2 silver. Gold finally topped out at $850, and silver went to $50. I said, “Sell!” at $750 and $35 respectively. Then for more than twenty years, I made money for The Ruff Times subscribers mostly in stocks, bonds, real estate, and other traditional investments.
At the risk of sounding immodest, (Once I thought I was getting humble. It felt awful, but I was only coming down with the flu.) I probably learned at least as much about gold and silver and their markets in that Bull Run back then as any writer alive today.
Now I’m back again in familiar territory, riding the Golden Calf, since December 2003.
As the golden calf grows into a massive bull over the next few years, you can make a ton of money in gold, more than twice as much in silver and even a lot more than that in carefully selected mining stocks from my Investment Menu (See www.rufft imes.com)
Three Different Uses for the Precious Metals
There are serious uses for gold and silver that have little to do with investment, and gold bugs oft en miss that. You need to know the difference. The metals have three basic uses:
1. Gold and silver coins as personal insurance against a declining dollar.
2. Government holdings of gold backing for the currency (non-investment).
3. Gold and silver for investments when things are right, and only then.
Timing makes no difference with number one and number two. They are for all seasons, not for speculation or investment. However, when you want to invest in gold and silver, timing is everything.
Gold and Silver Insurance
You should always own gold and silver coins as an insurance policy. Like homeowners’ or automobile insurance, its purpose is to protect you against unpredictable economic and political calamities (like now), that you always hope would never happen.
It’s there to use as real money in the case of a worst-case, like an inflationary currency collapse, or terrorist hackers shutting down the power grid so no one has access to their dollars at the bank or at the ATM and they can’t open the supermarket cash registers. The same terrorist-financed hackers could break into the computers of the money-center banks where most of the world’s dollars are in hyperspace, insert a destructive virus, and the world’s dollars would disappear in a nanosecond.
Remember, only about 5% of the world’s dollars are minted, printed, or coined. The rest are only on the computers of banks. If the computer data is wiped out, there could go the monetary system of the world, because the dollar is the world’s reserve currency. This could mean the instant collapse of the American economy, and maybe western civilization.
Then the world would instinctively go back to gold and silver as a means of exchange and store of value until the computers are fixed and a new paper-money system is cobbled together.
These things always seemed to be unthinkable in our otherwise comfortable world, but we have never lived through a period of Obamanomics nor had such an implacable enemy as Islamo-fascism.
Insurance Action Steps
Each family should have at least one half-bag of pre-1965, commonly circulated, ninety percent “junk silver” dimes, quarters and halves (360 ounces of silver). Junk silver can be bought from any neighborhood coin dealer or from one of the recommended bullion and coin dealers – Kitco is one of them. (Go to my website www.rufftimes.com to buy the book or subscribe to The Ruff Times.)
Due to Obamanomics, gold and silver will explode in value and your insurance coins will become a fantastic investment, which they may not have been when you bought them. In the case of less drastic events, such as mere rising-price inflation, they will still be very profitable.
For instance, because of the critical supply/demand situation, as the holder of any form of physical silver, you will find the industries that need them will have to bid up the price until you are willing to part with yours. $100 an ounce, anyone?
Coin insurance is a buying decision for all seasons, and it only becomes an investment if bad or even mildly bad things (like slowly rising inflation) happen in the world. This is not for short-term profit, but for long-term protection.
You would really need it if a monetary crisis or a war gets bad enough and lasts long enough that we have started to universally use coins as the alternative “real” currency. It might even not take that long for merchants to get the drift. During the OPEC gas crisis in the ‘70s when inflation and silver were in a runaway mode and gas prices were exploding, a few enterprising gas-station operators were advertising gas for a dime a gallon—pre-1965, ninety-percent silver dimes—because a ninety-percent silver dime was worth more than the posted price-per-gallon.
Like all insurance, the coins are there to use when bad things happen which you hope won’t happen. All insurance is a bet that bad things will happen. You win your bet only if you have a car crash, or a fire, or if you die. With orthodox insurance, it doesn’t matter if you win or lose your bet, the premiums are gone forever. In the case of coin insurance, the premiums are still there forever and appreciating, no matter what.
Gold And Silver As Monetary Backing: A Condensed History
In theory, we should be backing our currency with gold and silver, making it fully exchangeable into the metals, like America did for almost two centuries. It’s a principled cause that dedicated gold bugs should fight for, but it has nothing to do with investing in gold.
Years ago when Americans began to vote themselves benefits from the public treasury, government started to print and issue more receipts (currency) than there was gold or silver in the warehouses (which we now called “banks”). Who would know, as long as not too many holders of receipts showed up at the bank with their receipts to demand their gold or silver at the same time?
And then, we eventually thought of the paper receipt (currency) as real money all by itself.
For a long time we had confidence in the “gold and silver backing.” But human nature never changes. We soon got so accustomed to our government benefits, paid with receipts (dollars), that we accepted the printing of more and more receipts (money). We were ignorant of the cause of monetary inflation. The only signs were rising prices of goods, and rising gold and silver, but most people had no idea what was really causing inflation.
The stage was finally set when it became obvious to foreign dollar-holders that there was not enough metal to meet all demands, so they began jostling to be the first in line to present dollars at “the gold window.” Panic!! Nixon finally faced the reality that there soon would be more receipts (dollars) presented for redemption than there was gold available. Until then, foreign governments could exchange their dollars for gold, but we were steadily running out of gold in Fort Knox, as foreign confidence in the paper dollar had sagged so badly due to monetary inflation, that we were soon threatened with losing all our gold reserves.
So Nixon closed the “gold window” at the Federal Reserve to stem the tide, and the process was complete; the dollar was now completely detached from gold and silver, and greenbacks were now just a “fiat currency” (money just because a government order or “fiat” declared it).
Once we accepted that the horse was out of the barn, Congress no longer worried about whether we had enough gold and silver in the bank to redeem the ever-growing supply of banknotes, and the political claims on government “entitlements” were soaring. Inflation was the inevitable consequence of money creation.
Then, Uncle Sam began an anti-gold campaign to de-monetize the metal and separate it in the public mind from “money.” They even began making and marketing gold and silver coins (eagles) as “mere commodities” and collectibles. However, enough of us remembered the monetary meaning of gold and silver—that they rose at the slightest threat of inflation. And as gold was an internationally traded commodity and a lot of foreigners had not bought into the U.S. anti-gold propaganda, the price began to rise.
You Can’t Go Home Again Restoring gold backing to the currency would seem to be the obvious solution. In theory, that is so, but that won’t work until we are willing to forego our soaring government benefits and accept the discipline that gold and silver backing provide. We need a sudden rush of brains to the head and character to the heart—and wallet! Don’t hold your breath! If you think that will happen, I have a big orange used bridge in San Francisco to sell you.
It won’t happen until the present money system has totally collapsed and we have nothing to lose by replacing it with an honest hard-money system. Now, we collectively feel we have too much to lose. We have a huge vested interest in the status quo—our welfare, our Social Security, Medicare, Medicaid, our farm subsidies, etc.
By Howard Ruff
The Ruff Times
*****
Howard J. Ruff, the legendary author and financial advisor, wrote How to Prosper During the Coming Bad Years in 1978. It is still the biggest-selling financial book in history, with 2.6 million copies in print.
His new book, How to Prosper in the Age of Obamanomics is free when you subscribe to The Ruff Times (www.rufftimes.com), or if you buy the book at your favorite bookstore, you can deduct $10 from the subscription price.
Howard is founder and editor of The Ruff Times financial newsletter. This article is from a recent issue of The Ruff Times. The newsletter deals with a broad spectrum of middle-class financial issues. (You can learn about it at www.rufftimes.com). The Ruff Times has served more than 600,000 subscribers – more than any financial-advisory newsletter in the world.
Born Again Gold Bug
When I did a recent radio interview, the host (who was basically friendly), said, “You’ve always liked gold.”
My response? “No, no, no!”
I have been bearish on gold for most of two decades before December 2003. I have only been bullish on gold twelve years out of the thirty-four years I have been publishing The Ruff Times. I was bearish or neutral for twenty-two years. I’ve only been bullish since December 2003. But I guess I can never shake the label of “gold bug” the media gave me way back in the ‘70s.
When I first began publishing The Ruff Times in 1975, I begged my subscribers to buy $120 gold and $2 silver. Gold finally topped out at $850, and silver went to $50. I said, “Sell!” at $750 and $35 respectively. Then for more than twenty years, I made money for The Ruff Times subscribers mostly in stocks, bonds, real estate, and other traditional investments.
At the risk of sounding immodest, (Once I thought I was getting humble. It felt awful, but I was only coming down with the flu.) I probably learned at least as much about gold and silver and their markets in that Bull Run back then as any writer alive today.
Now I’m back again in familiar territory, riding the Golden Calf, since December 2003.
As the golden calf grows into a massive bull over the next few years, you can make a ton of money in gold, more than twice as much in silver and even a lot more than that in carefully selected mining stocks from my Investment Menu (See www.rufft imes.com)
Three Different Uses for the Precious Metals
There are serious uses for gold and silver that have little to do with investment, and gold bugs oft en miss that. You need to know the difference. The metals have three basic uses:
1. Gold and silver coins as personal insurance against a declining dollar.
2. Government holdings of gold backing for the currency (non-investment).
3. Gold and silver for investments when things are right, and only then.
Timing makes no difference with number one and number two. They are for all seasons, not for speculation or investment. However, when you want to invest in gold and silver, timing is everything.
Gold and Silver Insurance
You should always own gold and silver coins as an insurance policy. Like homeowners’ or automobile insurance, its purpose is to protect you against unpredictable economic and political calamities (like now), that you always hope would never happen.
It’s there to use as real money in the case of a worst-case, like an inflationary currency collapse, or terrorist hackers shutting down the power grid so no one has access to their dollars at the bank or at the ATM and they can’t open the supermarket cash registers. The same terrorist-financed hackers could break into the computers of the money-center banks where most of the world’s dollars are in hyperspace, insert a destructive virus, and the world’s dollars would disappear in a nanosecond.
Remember, only about 5% of the world’s dollars are minted, printed, or coined. The rest are only on the computers of banks. If the computer data is wiped out, there could go the monetary system of the world, because the dollar is the world’s reserve currency. This could mean the instant collapse of the American economy, and maybe western civilization.
Then the world would instinctively go back to gold and silver as a means of exchange and store of value until the computers are fixed and a new paper-money system is cobbled together.
These things always seemed to be unthinkable in our otherwise comfortable world, but we have never lived through a period of Obamanomics nor had such an implacable enemy as Islamo-fascism.
Insurance Action Steps
Each family should have at least one half-bag of pre-1965, commonly circulated, ninety percent “junk silver” dimes, quarters and halves (360 ounces of silver). Junk silver can be bought from any neighborhood coin dealer or from one of the recommended bullion and coin dealers – Kitco is one of them. (Go to my website www.rufftimes.com to buy the book or subscribe to The Ruff Times.)
Due to Obamanomics, gold and silver will explode in value and your insurance coins will become a fantastic investment, which they may not have been when you bought them. In the case of less drastic events, such as mere rising-price inflation, they will still be very profitable.
For instance, because of the critical supply/demand situation, as the holder of any form of physical silver, you will find the industries that need them will have to bid up the price until you are willing to part with yours. $100 an ounce, anyone?
Coin insurance is a buying decision for all seasons, and it only becomes an investment if bad or even mildly bad things (like slowly rising inflation) happen in the world. This is not for short-term profit, but for long-term protection.
You would really need it if a monetary crisis or a war gets bad enough and lasts long enough that we have started to universally use coins as the alternative “real” currency. It might even not take that long for merchants to get the drift. During the OPEC gas crisis in the ‘70s when inflation and silver were in a runaway mode and gas prices were exploding, a few enterprising gas-station operators were advertising gas for a dime a gallon—pre-1965, ninety-percent silver dimes—because a ninety-percent silver dime was worth more than the posted price-per-gallon.
Like all insurance, the coins are there to use when bad things happen which you hope won’t happen. All insurance is a bet that bad things will happen. You win your bet only if you have a car crash, or a fire, or if you die. With orthodox insurance, it doesn’t matter if you win or lose your bet, the premiums are gone forever. In the case of coin insurance, the premiums are still there forever and appreciating, no matter what.
Gold And Silver As Monetary Backing: A Condensed History
In theory, we should be backing our currency with gold and silver, making it fully exchangeable into the metals, like America did for almost two centuries. It’s a principled cause that dedicated gold bugs should fight for, but it has nothing to do with investing in gold.
Years ago when Americans began to vote themselves benefits from the public treasury, government started to print and issue more receipts (currency) than there was gold or silver in the warehouses (which we now called “banks”). Who would know, as long as not too many holders of receipts showed up at the bank with their receipts to demand their gold or silver at the same time?
And then, we eventually thought of the paper receipt (currency) as real money all by itself.
For a long time we had confidence in the “gold and silver backing.” But human nature never changes. We soon got so accustomed to our government benefits, paid with receipts (dollars), that we accepted the printing of more and more receipts (money). We were ignorant of the cause of monetary inflation. The only signs were rising prices of goods, and rising gold and silver, but most people had no idea what was really causing inflation.
The stage was finally set when it became obvious to foreign dollar-holders that there was not enough metal to meet all demands, so they began jostling to be the first in line to present dollars at “the gold window.” Panic!! Nixon finally faced the reality that there soon would be more receipts (dollars) presented for redemption than there was gold available. Until then, foreign governments could exchange their dollars for gold, but we were steadily running out of gold in Fort Knox, as foreign confidence in the paper dollar had sagged so badly due to monetary inflation, that we were soon threatened with losing all our gold reserves.
So Nixon closed the “gold window” at the Federal Reserve to stem the tide, and the process was complete; the dollar was now completely detached from gold and silver, and greenbacks were now just a “fiat currency” (money just because a government order or “fiat” declared it).
Once we accepted that the horse was out of the barn, Congress no longer worried about whether we had enough gold and silver in the bank to redeem the ever-growing supply of banknotes, and the political claims on government “entitlements” were soaring. Inflation was the inevitable consequence of money creation.
Then, Uncle Sam began an anti-gold campaign to de-monetize the metal and separate it in the public mind from “money.” They even began making and marketing gold and silver coins (eagles) as “mere commodities” and collectibles. However, enough of us remembered the monetary meaning of gold and silver—that they rose at the slightest threat of inflation. And as gold was an internationally traded commodity and a lot of foreigners had not bought into the U.S. anti-gold propaganda, the price began to rise.
You Can’t Go Home Again Restoring gold backing to the currency would seem to be the obvious solution. In theory, that is so, but that won’t work until we are willing to forego our soaring government benefits and accept the discipline that gold and silver backing provide. We need a sudden rush of brains to the head and character to the heart—and wallet! Don’t hold your breath! If you think that will happen, I have a big orange used bridge in San Francisco to sell you.
It won’t happen until the present money system has totally collapsed and we have nothing to lose by replacing it with an honest hard-money system. Now, we collectively feel we have too much to lose. We have a huge vested interest in the status quo—our welfare, our Social Security, Medicare, Medicaid, our farm subsidies, etc.
By Howard Ruff
The Ruff Times
*****
Howard J. Ruff, the legendary author and financial advisor, wrote How to Prosper During the Coming Bad Years in 1978. It is still the biggest-selling financial book in history, with 2.6 million copies in print.
His new book, How to Prosper in the Age of Obamanomics is free when you subscribe to The Ruff Times (www.rufftimes.com), or if you buy the book at your favorite bookstore, you can deduct $10 from the subscription price.
Howard is founder and editor of The Ruff Times financial newsletter. This article is from a recent issue of The Ruff Times. The newsletter deals with a broad spectrum of middle-class financial issues. (You can learn about it at www.rufftimes.com). The Ruff Times has served more than 600,000 subscribers – more than any financial-advisory newsletter in the world.
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