Build Your Fortune with Gold
Wealth Daily's Weekend Edition
I learned a new word this week.
scha·den·freu·de (shäd n-froi d ). n. – pleasure derived from the misfortunes of others.
My coworker and I were discussing the unfortunate state of affairs here in the U.S. and he said to me, “We can always count on Marc Faber for a good dose of schadenfreude.”
It got me thinking about investment strategy, and how there's so much more to it than simply looking at a company's successes and failures.
If you want wealth to last a lifetime, you have to look at the big picture.
Now back to Mr. Faber's role in this puzzle...
Those of you familiar with Faber are aware of his nickname, “Dr. Doom.”
Faber is perhaps known best for his ominous and bold predictions in his Gloom, Boom, and Doom Report. He is also renowned as one of the world's most esteemed and successful investors, a self-made billionaire.
Today I'm going to relay an important message every investor should learn from Faber — and I'm going to explain using current events.
This week Dr. Doom warned investors to prepare for not only a "Fiscal Grand Canyon" at the end of 2012, but he also referenced a debilitating “Colossal Mess” that would ensue following the inevitable breakdown of our financial and political systems in the next five to ten years.
Should you be frightened? Absolutely.
Are we at Wealth Daily a little fearful ourselves? You bet.
But you know what else we are? We're capitalists — and so is Faber.
It should be noted that sometimes fear really is the best guide.
I believe fear is at the heart of every successful investing decision Faber's ever made, and that's a good thing. Throughout history, fear has proved to be one of the most powerful motivators.
Perhaps this is what separates an American capitalist from a German schadenfreuder...
While we pity the misfortune of others, we're not about to fall into a Fiscal Grand Canyon, as he calls it, empty-handed.
This is why we're long on gold.
We're here to help other gold investors understand the risks and rewards associated with various gold investments, large and small.
The world's richest men are playing into this worldwide fear by staying calm and buying the "ultimate bubble" as others panic. They're buying gold because the economy's at a historically low point and hyperinflation appears unavoidable.
Billionaire philanthropist and investor Frank Giustra said it best:
It's the beginning of the end for the U.S. dollar. I don't want to sound apocalyptic, but how else does this end? You have to be on the right side of this trade.
If you want to buy gold cheaply, the markets have provided you with an incredible opportunity in gold juniors.
Back in August, gold regained momentum and miners surged past the price of the yellow metal itself after the previous sell-off...
Christian DeHaemer's article from Thursday (found below) showed you why, as gold continues its upward climb (and trust me, it's got a quite a way to go before someone is able to put an end to the Fed's madness), miners are going up even more because they are leveraged to the price of gold.
There's limited risk and increased reward.
Just make sure you're not investing in gold miners in locations where violent strikes have halted production projects.
Bottom line: Don't fret if you can't afford bullion right now. The juniors have you covered.
Investing in junior gold miners will help pad your portfolio — and it'll certainly lighten a dark future outlook.
Other hard asserts will be advantageous, but nothing will be as good as gold until this vicious money-printing cycle ends.
Best wishes for a prosperous future,
for Wealth Daily
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