Japan, Euro Land and America CAN NOT stand any significant increease in interest rates.........their budgets can't possibly take that kind of hit today or tomorrow. QE is here forever as will be demonstrated by the new Fed Chief in January, 2014. Hence, it makes sense for me to be a holder of a diversified portfolio of foreign bonds chosen by our fearless GIM management team. As far as Japan's /China's liquidation of long term bonds is concerned, Ben is buying more every month than these guys are liquidating !
We have gone from selling at a premium to selling at a discount......7/5/13 NAV $8.66 Market price $8.26...and when the Euro tanks and the Yen tanks Gim's short position in these two currencies will bring NAV closer to $9.00........some of us are going to make a lot of money and share it with the IRS and Gotham City....could the pendulum swing back by the holidays or must we rely on capital gains to have a Merry Christmas ?
With your permission I will bring my wife along so I will need two permits . I'll buy lunch for the 4 of us at the NEW Tavern on the Green ! Deal or no Deal ?
I must have struck a nerve......you have gone to the world of James Bond on me...Time for you to take a break and enjoy Central Park befoere Mr. Bloomberg passes a new tax that requires everyone to have a public park permit to walk in the park ! ........Enjoy.......
Because the other guys especially Europeans faced with a looming currency crisis and monetary uncertainty are choosing gold in a portable and barterable form. It so happens that the Cyprus and German actions discussed above have resulted in the marketing of the Valcambi Suisse 50 gram CombiBar. This credit card sized pure gold bullion bar is easily separated into detachable 1 gram sections just like a gold chocolate bar. Each 50 gram bar is sealed in a hard plastic case along with a sealed assay card which certifies its gold content The CombiBar is easily broken into 1 gram pieces which can be used for barter during a hyperinflati0on or financial crisis. When the major gold companies in the usa start paying their quarterly dividends in similar type bars...I'll be loading up the pickup with Gold Fields, Newmont and El Dorado, etc. In the meantime, I'll wait to see what happens to Happy Valley when Obamacare spending blasts off in 2014 . Sometime during the second quarter of 2014 we should have an idea whether it will be our turn for the Combi Bar.
That is a most interesting thought.....Would helicopter Ben throw gold bars out of an aircraft since he believes that gold is not money?
Cyprus has proven to the western world that soon the SWHTF with respect to the real value of the Euro. I realize it is April and time for April fools jokes, but I don't think the Germans will end up being the fools and waiting 7 years to get thier gold back from the FED and the banks in NYC. That having been said, how long do you think it will be before the Germans DEMAND their first shipment of gold bullion back to Deuche Bank in Frankfurt so that they are in position to defend the Deuche Mark and their banks with their own gold bullion ?
In the meantime, Michael's short of the Euro sure is helping GIM. I wonder which will come first....... GIM trading at $10/share or a headline in the NEW York Times that reads as follows: Sixth Fleet escorts first shipment of gold bullion back to Frankfort.......( In a surprise overnight move, destroyer escorts from the Sixth Fleet entered NY Harbor to provide cover and security for the first billion dollar bullion shipment back to the fatherland )
4- 1- 13
The weak hands are trading not investing and taking the proceeds to see baseballs games in Florida. While they are there they are taking the 5 day Carnival cruise to the Bahamas.........enjoying their retirement before Federal income taxes become punitive in 2014 ! (In Florida you can still get a 32 ounce Coke and a wonderful Habanna cigar as well)(No state income tax in Florida either....they have a Republican Govenor)
In November of 2011 NEM was selling for $69 per share. Since then they have completed their 2012 year during which they had a NIAT of $1.8 B and paid dividends of $700 million. Today NEM sells for $40 per share...a mere drop of 42% from it's high of 69$/share in November of 2011. The obvious response to this condition is that the price of gold had to have dropped during the above period of time. As you might expect the price of gold did drop from $1,716/ounce to $1,594/ oz....a 7% drop during the above period of time. So tell me Mr. Market what is the reason for the other 35% drop in NEM's price ???????????????????????????
In 1789 the Chinese were eating rice and riding bicycles. Today thanks to us taxpayers they are all driving buicks subsidized by taxpayers that bailed out Government Motors. The divided states of america has competitors today that are eating our lunch...that's why our gdp isn't growing like it did in 1980's....and that'swhy raising taxes is not a good long term solution. It works only one year and then all the millionaires move from NYC to Argentina. That would then leave you as the only millionaire to tax in 2014 and beyond.....by 2016 the end of his term...your effecrtive tax rate will be raised to 70% and I'm sure you will probably decide to move to Argentina as well !
As I said previously it is going to get dicey around here real soon so enjoy your retirement and book a cruise on Carnival ...you might run into a boat load of progressives and have a great time !
We have a funding problem as is evidenced by the fact that Helicopter Ben is printing us dollars to fund most of our deficits. We have a spending problem because the just released Dem budget is projecting interest expense on the national debt of 723 B dollars in 2023. If that isn't evidence of a spending problem I don't know what is ?
Keep your powder dry Mr. Vensh...it is going to get real interesting around here in the next few months....especially in cities like Detroit where government has become the local religion.
Dear Mr. Vensh,
It sounds like you and I have run into the same communication policeman. I too have had my words changed to a whole string of #$%^&*()_+.....I've decided to be a model comrade but can you see how easy it will be for DianeFienstein to eliminate our 2nd amendment rights !
This country is toast if the Republicans lose the House in 2014. Get ready for a VAT Tax if that happens....you might have to go back to work just to pay your taxes in NYC ! Hollywood might even make a movie about you entitled "The last millionnaire in NYC"
As for GIM's performance.......greed has obviously set in and the weak hands are leaving our bond fund for greener pastures in equities. The stock matket is standing on stilts made of paper money printed by Uncle Ben....it is ony a matter of time before the preprogramed machines will cause another crash to the market and scare the #$%$ out of the retail investors once again. Then GIM will go back up to $9.99 and meanwhile you and I will have collected 6 months of uninterupted dividends.
As for the national debt, I don't know how anyone can say we don't have a spending problem when the Federal Government is borrowing $50,000/ second ! As for the "real' amout of our Federal Debt...I do not believe that anyone in goverment knows what the amount really is even to the nearest Trillion The real issue is that America is no longer growing it's GDP fast enough to pay for all the frivilous spending that is going on. So enjoy using the money you have left in your net worth and pray for you children and grandchildren....America will never be for them what it was for you and I.
The Ten year Treasury is now yielding about 2 % while the yield on NEM is about 4 %. On a $16, 000 investment one would earn $3200 in interest on the T Bond and $6400 in Dividends on NEM in ten years.After ten years you get your $16,000 back and I still own my NEM shares that are now worth $20,000.......gold went up in value from $1,600/ounce to $2,000 and ounce in the ten year period.(Notice: I have ignored the potential for any future dividend increases.)..............Question: Why would you want to own a depreciating piece of paper called a 10 year Treasury bond paying 2% interest when inflation will probably average 3%/ year minimum over the next 10 years ? Answer: I wouldn't buy the 10 year bond, I would back up the truck and buy more NEM shares ! Notice: I have also ignored the possibility that the Chinese government might just make an offer to buy out us NEM shareholders at 2x book value ,( $68/share) during the ten year period of time. Want some icing on the cake...think about NEM dividends being paid in gold coins instead of us dollars .Almost like a deal you can't refuse !
Dear Mr. Vensh,
I have made several controversial posts to this board that have strangely disappeared into cyber space for no apparent reason. Nonetheless, when it got to the point of allowing some messages to get posted but with actual changes to some of the words that I used in the text I decided that I had had enough . Perhaps the internet has turned into the world wide WEB.I just didn't know that things like that where actually happening in the land of the free and the home of the brave.! I'm in a read only mode now. So keep typing, and sending messages . I've always disagreed with most of them but enjoyed the exchanges nonetheless . In the meantime, I've moved my operations and gone mobile so I'm harder to find now ! 10 4 over and out !
With the price of NEM drifting ever so close to its net book value of $34/share isn't it time for a simple idea to drive the market price up back to $60/share?
How does this idea sound to you ? Give each shareholder the right to receive dividends payable in US dollars or in one tenth ounce gold coins ! All of a sudden our company is back on the gold standard and the market price goes back where it belongs ! I for one would back up the truck to buy more NEM at $38/share !
What say you ?
Dear Mr. Goldberg,
Welcome to the party. From a financial point of view, you have been presented with a very sound Company to lead at a time when paper money all over the world is in a race to become worthless. However, before we count the us dollar as dead....keep in mind that in June, 1993 NEM sold for $39.69/share. As you know , as of 3/1/13 NEM is selling at about $39.84/ share...............not much progress over the last 20 years....As you know, US Federal Debt during the same period of time increased from $4.5T to about $16.5 T today(This 400% change in the balance sheet of the Divided States of America should have helped NEM a lot but ?????). I took a chance on becoming a NEM shareholder thinking that based on the attendant circumcstances we would go up in price over time rather than return to the valuations of 1993 . Therefore, your mission Mr. Goldgberg, if you chose to accept is to turn this aircraft carrier around and get us back to $70 per share ! For the record, I don't have 20 years left , so the turnaround time should be something less than 5 years !!!!!!
Maybe the Chinese already control most of the outstanding shares and are buying up whats left ? There has been more volume on this company in the last 5 days than there has been in the last 5 weeks ! If it goes up another $5 per share tomorrrow , you can beat that somebody is making a run at the Company !
We all know that in the last thre years NEM has thrown off $9 Billion of cashflow from operations. Did you know that NEM's Balance Sheet has no Goodwill listed as an Asset that would be required to be amortized against future earnings ! Did you know that NEM's Current ratio is 2/1 and it's Total Debt to Equity is just a little over 1/1 ! In addition we have a new CEO that takes over on Friday..........what more could a shareholder ask for ? Why more people are not turning paper money into shares of this Company is just beyond me ?
It looks to me like we could have bought this energy company for $41.72 a share on 9/2/08, for $34.62 a share on 5/2/11 and for $5.65 on 8/1/12. As you know, it closed today at $23.75 a share.
If the Arckaringa Basin really does contain 100-200 billion barrels of oil don't you think the Chinese would have already bought Rodinia and Linc for themselves ? Sure beats hauling oil from Iran and Africa ! I think I will wait until we find out who their joint venture partner will be that is to be chosen by Linc sometime this year. My guess it will be a Chinese oil Company !