By Howard Ruff
subscribers have recently asked me why gold and
silver have been in a recent downturn.
Elephino! (A cross between an elephant and a
rhino.) I do have some opinions to share with
With the startling success of the election of
Republican Scott Brown in Massachusetts, the
media is becoming very pessimistic about the
future of Barrack Obama.
Iím not convinced their pessimism is justified.
The usual political judgment would probably
agree with them. But I am very dubious.
Barrack Obama is a very stubborn and
ideologically dedicated man. He doesnít care
about the usual political factors. He will
continue his socialist course Ė no matter what!
Socialism is attractive because it promises to
give people money or the functional equivalent.
I think Obama will continue his course, and we
will still be faced with a socialist government.
My opinion is not the most common opinion, and a
lot of people feel Obama is on the way down.
Consequently, we donít need to worry so much
about our future, so the drive to buy gold and
silver is diminished.
I believe these two precious metals will turn
around dramatically when people wake up and
realize Obama will continue his socialist
Remember he has three more years in the White
House, and he still has control of the
regulatory means of power.
This is merely an opportunity to buy gold and
silver more cheaply. I am pleased to see the
prices come down.
I am not interested in only buying metals when
they are going up, I want to buy them as cheaply
as possible, and that will require occasional
retreats. We are having one now, so count your
blessings and buy gold, silver and mining stocks
and continue to add to your inflation-hedge
Financial Power Grab
Iíve been nervous for some time about converting
precious metals into IRAs and 401Ks. I think I
understand my fears a little better now.
The government is considering a power grab,
which will first seize part of your IRA and
replace it with guaranteed-percentage returning
bonds. It will start small, but gradually, like
government, will grow and grow.
I have not liked IRAs and 401Ks for precious
metals because gold and silver coins are
supposed to be your ultimate safety if the
dollar crashes and burns and if the dollar is no
longer a useful means of exchange and a store of
So far that has been my biggest concern, but now
I am worried about the government seizing a
small part of what you own, and eventually more
and more until they have it all.
I donít mind using an IRA or 401K if your
objective is merely investment and you turn the
investment into money. Then you can use some of
the gold-mining stocks and other investments
listed in the ņ la Carte Investment Menu in The
Ruff Times, but your gold and silver coins,
which should be the core of your investment
safety, should not be in one of these accounts.
They are all registered with the federal
government, and they would know where your
bullion is, and the threat is very real that
they will want to take your assets away from
They are very hungry for cash. Accept this as a
solid piece of advice: do not put your gold,
silver and bullion in an IRA or 401K. Keep it
separate, preferably at your home and not in a
product that is literally registered with the