You are here

David Vaughn: Forget the gold price!

Section: Daily Dispatches

10:35p ET Monday, July 9, 2007

Dear Friend of GATA and Gold:

GATA is a civil rights advocacy and educational organization, not an investment advice organization, but many of our supporters have noticed the opportunity to profit from the precious metals and the companies that produce them, and we don't exactly object if our supporters make some money along the way. After all, doing good and doing well because of it is better than doing well by doing bad. (There's enough of the latter going around.)

So there may be no more profitable essay for investors to read this week than the new one by David N. Vaughn, editor of Gold Letter. It's titled "Forget the Gold Price!"

Now of course GATA doesn't want anyone to "forget" the gold price. Our charter requires us to prevent the world from forgetting. But Vaughn argues that there are far better ways of making money in this sector than worrying about the gold price on the commodities exchange every minute. He writes that investing in companies that can prove substantial metal deposits and increase their resources can be a lot more rewarding, since value is created quite apart from however the central banks abuse the precious metals on any particular day.

Yes, even investing in mining companies is playing with derivatives to some extent, but much less so than what happens when you try to outwit all the (fiat) money in the world on the commodities exchanges, the ballparks of the central banks.

If you want absolute security, there are coins and bullion to hide under the bed or in the laxative jar in the basement refrigerator. A list of reliable vendors accompanies this and every installment of the GATA Dispatch.

But if you want a little more excitement, more risk and reward, you may do well to read Vaughn's essay, which can be found at GoldSeek here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA at these conferences:

The Silver Summit
Thursday-Friday, September 20-21, 2007
Coeur d'Alene, Idaho

New Orleans Investment Conference
Sunday-Thursday, October 21-25, 2007
New Orleans, Louisiana

* * *

Help Keep GATA Going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at

GATA is grateful for financial contributions, which are federally tax-deductible in the United States.