Say What?

"Civilized people don't buy gold"
Say what?

According to this article Warren Buffet's partner Charlie Munger recently declared
"Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939," the Berkshire vice chairman said, "but I think civilized people don’t buy gold, they invest in productive businesses."

Well, in a perfect world I agree with the billionaire.
In a perfect world investing in businesses that employ people and create wealth is a good thing.
But I don't live in a perfect world, do you?

Munger lives in a billionaire's utopia where his wealth is so vast that a little inflation here or there will have zero effect on his life.
And worse, Munger and Buffett have sheltered their assets from inheritance and other taxes by funding family foundations, and then proposed raising taxes on the rest of us.

In my world inflation exists and the value of the dollar is decreasing.
Tax rates matter.
I'm not endorsing an asset allocation that would make Midas proud
but it doesn't hurt to diversify your portfolio and own a smidgen of gold.

Golden Years

Got Gold?
I hope that you do as it reached $1500 today.

and here's the 5 year chart

Meanwhile here's the 5 year chart for the Dow Jones Index

You know...I just thought that I would mention it.
And just for your viewing pleasure...

Go For The Gold - And Do Something Good For Youth Aids

Ooops,

I received this email from Rick Maggio, of That Agency, a few days ago and forgot to tell you about it.

As it turns out, I’m working with World Gold Council on a project that might be fabulous for your readers! It’s a great contest which supports an even greater cause. Debra Messing (star of USA Network’s new series The Starter Wife), Robert Lee Morris (legendary jeweler) and World Gold Council are hosting a contest for consumers to win a gold bracelet designed by Debra Messing herself, in collaboration with Robert Lee Morris, in support of Debra’s favorite charity Youth AIDS. Consumers simply share their favorite story that involves gold jewelry, and the best one will win this amazing bracelet. Some of the stories entered to date are very touching and make for inspirational reading. I am confident your readers will enjoy reading these stories and they may have one of their own to share.

Contest Summary

Tell your favorite story that involves a piece of gold jewelry for a chance to win an 18K Gold Bracelet (1 of only 4 ever made) designed by Deborah Messing and Robert Lee Morris. Previous entries to this contest can be found at

http://www.instyle.com/legendarygold. This contest benefits YouthAids (http://www.youthaids.org/).Contest End Date: February 24th, 2009To Enter: Visit http://www.instyle.com/legendarygold to submit your short story.

The end date for the contest is tomorrow...

so how fast can you write a winning story?

Savvy Shopping - Got Gold?

This year you've seen the both the stock market and the housing market collapse and you're wondering if it is even safe to keep your money in T-Bills with the Federal Deficit at stratospheric heights.
But let's face it...you can't keep it all in your mattress.

OK, I gave up giving investment advice long ago but I'm still always interested knowing what works in a bear market.
And so is the Wall Street Journal.

What You Need to Know About Gold
By JEFF D. OPDYKE

Gold shined in 2008. Could 2009 be as bright?
Of all the major assets -- stocks, corporate bonds, cash and others -- gold was one of last year's few standouts. While so many investments collapsed amid the turmoil, the price of an ounce of gold posted a gain of about 4.3%.

So far this year, the rare metal is up about 0.7%, after a rally Friday put it back in positive territory. And longer-term concerns are emerging that aggressive, untested government policies aimed at righting the flailing economy could ultimately fuel a further rise in gold prices.

So why does gold work for now?

The case for gold is this: The government is pumping trillions of dollars into bailouts and stimulus plans, a purposefully inflationary policy aimed at reversing current deflationary pressures. If inflation results, or if the dollar weakens as the supply of dollars necessarily increases under the stimulus plans, gold is a likely winner because it hedges against inflation and fiat currencies.

But not everyone agrees

The opposing view: "The inflation argument hasn't been seen yet in government data, and once the economy catches gear, the [Federal Reserve] will pull the money back out of the economy," negating any inflationary pressures, says Tom Pawlicki, a precious-metals analyst at MF Global, who says he's "not friendly on gold."

This article lists four investment strategies with both the pros and cons

Bullion
Pooled Accounts
Exchange Traded Funds
Mining Stocks


I'd like to offer you another option

An investment you can wear.

Antique Edwardian Gold Fringe Style Necklace in 18K $2280

(yes...less than an "It" bag and it will last another 100 years and more)

Vintage Woven Gold Bracelet in Yellow and Rose Gold $2850

And from today's Financial Times

Gold pushes above $900 in buying spree

Strong investor buying on Monday pushed the price of gold above $900 a troy ounce, hitting a 3½-month high in dollar terms and posting all-time highs in euro and sterling, in a stark sign of money seeking refuge from equities and bond markets.

You know where to shop

Gold hits Record High of $1000

There has been an steady increase in investment in gold over the last few years and now it has finally reached a record high of $1000.

While some gold investors might prefer to hold their gold in bars socked away in vaults, I prefer to wear my investment.

So, here's how I'd hold my precious metal investment....around my neck and on my wrist with this totally non flashy Bvlgari two tone burnished gold necklace paired with two tone gold link bracelet both from my favorite vintage estate jewelry dealer Beladora.com.

Financial Times Reports on Price of Gold

The Soaring Price of Gold Causes Jewellery Market Pandemonium and the Financial Times is just reporting on this now?

Manufacturing costs have steadily increased over the last few years as diamond, gold and platinum prices have soared so newly produced jewelry is costing the consumer more.

Eventually there's going to be a correction in the market. But until then, how many jewelry stores and manufacturers are going to go out of business?

As always, the best values are in Estate Jewelry.

Gold at Record High....Again

Gold hit another record high again at 976.32 an ounce.

Breitbart has the details.

When I consider purchasing clothes, handbags and shoes versus purchasing jewelry I always go for the jewelry.

I love this Ferragamo handbag. It is classic and timeless but probably manufactured in China at a total cost of about $100 and now being sold retail at $1890.

Versus these classic gold earrings with diamonds, for $1850....I'd go for the earrings!

What about you?