I started this venture in 2008 as an avenue to talk about a wide variety of topics, but primarily as a SCUBA blog under the name "Musings from the Deep Blue Sea". It's evolved. My renewed interest in health, fitness, and nutrition (at the age of 43) has brought me to where I am today, and this site reflects that. Having said that, my original mission statement hasn't changed...

Our lives are important only because of the impact they have on the lives of others. Making a difference is important. This blog isn't written for you, it's written for me. My way of reviewing my life, and its significance...Of course, given my wide range of interests in life, there will be much variety. Welcome to my life.

Saturday, September 13, 2008

The Economics of Fear

When it comes to investing money, there are many different strategies, each with its benefits and drawbacks. My interest lately has turned to gold and gold stocks as investments. Not as someone who actually sees this as a viable way to invest, but more as a curiosity.

In a previous entry, I referenced a gentleman by the name of James Sinclair. Mr. Sinclair publishes a blog focused on gold and gold stocks, and I'm firmly convinced is the most depressing person in the world.

To appreciate why, consider this: Gold is typically invested in as a safe haven, a way to protect yourself in times of financial turmoil. When people are invested in gold (or other precious metals) as their primary investment vehicle, they are essentially betting on financial calamity.

I can't think of a worse way to live your life. These people spend their days looking for the dark clouds, praying for bad things to happen. Natural disasters, political and military unrest, terrorism, and financial disaster are what they plan for. Read Mr. Sinclair's blog (warning: you may be led to believe the sky is falling).

One little nugget of the way it skews your viewpoint to have this attitude. Consider this snippet from Mr. Sinclair: "I am also sad to report that two of our CIGA’s mothers, CIGA Francis and CIGA Dean’s, were overcome by smoke in a fire this evening. Both CIGAs, respectfully, request your prayers. Mothers are very important people to all of us."

Now consider this: I know both Dean and Francis...I live in the city where this incident occurred...I spoke to a relative of Dean's on the day of the incident...and I know who lives in the building in question. Francis' mother indeed was involved, and I won't comment further on her. As to the rest of the facts, it's almost comical....It was Dean's grandmother (not mother), she wasn't overcome by anything (in fact, she stayed in her home that evening), and the incident occurred the night before his post, not the same night.

I believe this is the gold gang's personality in a nutshell. They hear what they want (something bad happened), ignore the silver lining (she's ok), and report it without any particular regard for the actual facts.

Chicken Little economics. These guys read the news hoping to read about our financial demise, so that they can prosper. Thank you, no....I'd rather suffer with the masses than live in their dark, dark world.

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