Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

Fred

I wish you had kept your mouth shut about gold falling , it has just gone down.

It seems that coalition proposed police cut backs have already reduce number police on Riot control at Mill Bank.

Are the scenes an indication of the future?

Just a few thugs. The one with his shirt off trying to break a window is known to my son. He missed his GCEs because he was inside for GBH and is now retaking them. At my son's sixth form college the teacher told the kids to go to demonstration and the college gave them authorised absense.

I suppose better the unauthorised Absinthe.

In my school that would have been appreciated more.

Sometimes it surprised me with whom my children kept company!

My son did not keep company with the kid on the TV. He just knew him from his schoool. I guess the police may put him back inside once they get him. He is out on parole at the moment for his sentence for GBH.

Tut TuT.

Is there any room inside for you?

It may be interesting to see what allegiances some of the demonstrators, who have been caught by the police snatch squads, actually have.

Hope the Police don't kill anyone this time coming home from work.

November 2010

43 Years of Stockmarket Experience writes...

Gold is at $1404 oz. Silver is at $27.90. The NAV of your fund has raced ahead in 62 weeks from 100p to 181.1206p and we hope that the best is yet to come, the fundamentals driving Golds rally are as strong as ever.

Gold is pushing upwards, and we believe that due to operational gearing the Fund will continue to do so too! Last week we saw 'Obamanomics' at its finest. After a trouncing in the Mid Terms, which will see Obamas flagship legislature unpicked by the Red House of Reps, and a now two year long period of bureaucratic stalemate, the Fed announced on Wednesday the clearing of the route for a second bout of Quantitative Easing. So the dollar will be devalued rapidly. And we believe that this is a process that has a couple of years to run. But no trading nation can afford its currency to be uncompetitive and so the G20 squabbles like ferrets in a sack as the great nations of the world engage in competitive devaluation.

The pickle that the US finds itself in will eventually lead to the demise of the Dollar as the World's currency. In the meantime it'll see Gold, and Silver for that fact, whiz further ahead. By some measures US unemployment has reached circa 20%, and the real scale of the debt that the US faces is yet to be realised by most Americans. In the next decade the US HAS to completely refinance itself to stay afloat. The state of the economy is that as of the moment, America's second largest Creditor is China, with the Treasury in the top spot. After America's continued attempts at currency devaluation, the US is, needless to say no longer in the PRCs good books.

At some point in the future the Chinese will decline to further the funding of their main Currency competitor. The World however is currently not yet ready to trust the Renminbi. Until the time that it does we will continue to see Investors fly from Cash and cash denominated investments to hard Asset classes, i.e. Gold, Silver, etcetera. We are even seeing Oil creep closer to $100 barrel.

The reason for the flight to safe haven asset classes is that the US, plus the majority of the Western World (including Japan), are so heavily indebted that there is no other feasible option but to maintain miniscule interest rates while devaluing paper currency to whittle away at the 'real' value of their debts. To draw upon the words of John Maynard Keynes 'Belligerent Governments, unable, or too timid or short-sighted to secure from loans or taxes the resources they require, print notes for the balance'. The US has exhausted its tax policies, and almost its debt capabilities, and instead of tightly reigning in decadent spending and promoting pro-business legislature (like for example China has), the US has decided to electronically credit its account with Dollars. The result is 'monetary dilution'. Put simply, in these untoward circumstances the Dollar in the pocket today will be worth less tomorrow ( to misquote Harold Wilson). The fundament al reason for this is that as more currency finds itself in circulation, Inflation ensues. Inflation has, until recently, not been taken seriously. We have recently identified that numerous wholesale commodity prices are increasingly on the way up. For example, Agricultural Raw Materials are up 24%, Coffee 45%, Barley 32%, Beef 23% and Sugar 24%. For the naysayers of Inflation, how long will it be before we see these increases at wholesale level trickle down to the more familiar retail prices? On a trivial level Next is set to put its clothes prices up by 8% as of next year.

More seriously, the argument for Gold has never been so compelling. Accordingly, this month we have taken part in the placing of a new investment vehicle with a mandate to invest in Gold stocks (more on that later). Tom is at the helm of the astutely selected stock portfolio. We reckon Gold and Silver will continue to push on higher. Your Fund is the top performing Unit Trust in its class with a year to date increase of 73.4%, dramatically outperforming Golds year to date increase of 26.9%. Since launch the Fund is is up by 81.12%. Of course past performance is not a reliable indicator of future results and we would like to draw your attention the important risk warning at the end of this message. In light of this our investment strategy remains in tact and stable. We are not deviating; we continue to add to our attractively priced holdings as and when we feel it appropriate. This month we have been nibbling at and compounding our positions in, amongst others, Ariana, Ovoca, Norseman, and Angel Mining.

You may say ''but we are in a frenzy''. Having seen many frenzies during a 43 year stockmarket career I can say for sure that we are not. In terms of gold we are still 30% below the real all time high price. When a frenzy starts gold will shoot ahead in a straight line gaining $50 in a session. And then the next. And then the next. The climax of any upswing is always that dramatic. What we see now is a $20 gain one day and then a $10 retreat. The trend is up but it is not straight line. It is not climactic. And in terms of equities: where is the bid frenzy that marks the top of any rally? Where are the quite ludicrous movements on the basis of mere rumour? Has your postman told you to buy gold stocks yet? Yes there is enthusiasm for the sector but not madness. Not even signs of it. We are still in the foothills of a major movement.

Robert Sutherland-Smith

Ascent to Glory.

The new Chinese advisor Cameron is advising the Chinese government on management of its 1,3 billion population and its economy.

Amazing, when he can't manage the own country's coalition, or the economy of a country with a population of 61 million.


This man is really magic. Next he will be advising the Pope on PR.

Sorry, I forgot that job has been taken by his look alike Blair's.

I must admit l like his method of making friends.

Perhaps, I should act as his advisor.

"Amazing, when he can't manage the own country's coalition, or the economy of a country with a population of 61 million."

I thought he was doing both rather well.

Delusions, dear boy. Delusions.

My God-daughter is at Hull Uni and was offered the chance for a day trip to London today for a couple of quid. Unfortunately the itinerary that the students union provided meant that she wouldn't have had any time for shopping so she turned it down, particularly as she is going about her studies and really doesn't have time for days away like this.

:-)

Labour had 13 year's or was it ten and ended up with a scorched earth policy when they knew they would be kicked out , how long as Cameron been in office to try to clean up Labour's mess.

It was 13 years, but seemed like 20 years.

At the rate Cameron is going 30 years,

But by that time Britain will be a Chinese colony.

Fred you talk absolute rubbish ,Cameron is so far doing a good job and trying to right all labours wrongs ,they did more damage to the UK than any govenment before them.

It will take 30 year's or more to put right the damage that Labour's social engineering as done.

The coalition will have fallen apart within 12 months and another general election will be held.

Unemployment at 3.5million plus, the effect of tory cuts will be biting into the middle classes.

The Libs will be decimated and their vote migrate to the Labour part.

Labour will win the next election and bring in sweeping tax changes.

In your dream's and in most sane people's nightmare's.