The practice of economy, directed toward a retirement investment plan in the stock market, is in itself a source of great revenue. It is the art of making the most out of every stock market investment, with the definite purpose or goal being to provide a life that is fully independent of monetary concerns.

But the economy of making each investment in the stock market does come with a price. It will require self-denial (the money invested is not spent for goods or services). Economy and self-denial, I’m afraid go hand-in-hand. To truly benefit from a stock market investment, a savings plan should be adopted and a systematic approach of dollar-cost-averaging (buying the same stock at different prices) should take place; and when the purchase should take place, economically clearly defined.

For a successful retirement investment plan to work in the stock market, some ‘reasonably sure’ assumptions would have to be made:

The retirement investment plan must take into consideration the one prevailing constant in any stock market security – risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD’s or Bonds are a start. The plan’s key factor would be to use the risk and uncertainty of a stock market security to its advantage.

I was recently interviewed for a press release through a financial question and answer format. One of the questions asked of me in the interview was: Where do you think the stock market is headed over the next five years?

My Answer; No one knows! There is an old Chinese proverb that goes something like this: “He, who could foresee events 3 days in advance, would be rich for thousands of years.” On a long-term basis I have only witnessed expansion and progress. I believe that to be the nature of our American economy and our American way of life. And as our economy goes, so goes the stock market and I see no reason to change that belief.

Congress is about to do China a huge favor - unwittingly. It is also about to cause the dollar to further drop in the forex markets. In its attempt to slap together what it considers a "punitive" tariff and impose it on Chinese textiles, Congress is en route to making life far easier for the Chinese than it already is. Their idea behind the tariff: Punish China for refusing to snap to a salute and revalue its currency on (US) demand. The unintended effect: It will relieve China from the pressure of having to buy ever more (by now extremely unwanted) US dollars in order to keep its currency peg intact.

Investing in the stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth. In my opinion, that is gambling. And, I would imagine, some would believe that ANY investment in the stock market is gambling.

I have no idea why no one has done this yet. Maybe someone did, and I missed it. That's very likely, judging from the amount of stuff I have to read every day. Nobody can read everything, of course. Despite the massive evidence which the likes of GATA and its supporters, including Frank Veneroso, James Turk, and others have amassed over the past six years or so, there are still people (especially mining execs and mining web site owners who should know better) who continue to pooh-pooh the very notion of it.

We enjoy listening to Beverly Hills money manager Ken Gerbino and not just because of his track record in mining stocks for the last three years. He talks in a simple way that we can understand. We asked him about base metals – and their amazing run over the last six months. Could they be peaking? Ken laughs and tells us "Three billion Asian and Indian people say “no way”". He believes there is a new paradigm of sustained growth in base metals from Asian demand - no more cycles - translating into increased multiples for base metal stocks. And for good measure, he mentions a few base metal companies he owns and why. Ken, we always get our best readership from your articles. Thanks for your time, and your permission to republish. (www.goldeditor.com)

Henry To
There has been much talk lately about Coca-Cola and its potential as a value stock – as it now spots a dividend yield of 2.6% (which is the highest dividend yield since the late 1980s) and a P/E or less than 21 – right at the bottom of its five-year low. Moreover, the current price of approximately $43 a share is also near the bottom of its nine-year range – (nine years ago, the last former great CEO of Coke, Roberto Goizueta, was still at the helm of the company). Sure, Coke has had its own set of problems, but it is a great company, they would argue – and heck, Warren Buffett is also an owner of Coke shares.

Roland Watson
In my last article on silver dated almost two years ago on the 13th March 2003, I entitled it "The End of the Silver Bear Market". After a 21-year drop of 92% in silver prices, I offered the suggestion that the end was in sight and a long-term bull market was soon to be born around $3.60 on October 2003. Using Elliott Wave analysis, I expected a final wave 5 to complete and put the bear into hibernation. As it turned out, the bear was in a bit of a hurry to bed down for the winter and the impulse wave took the form of the less common ending diagonal. Ending diagonals are often seen at the end of protracted moves such as silver has seen. This placed the end of the bear officially at $4.45 on June 11th 2003. Or a time span of 23 years, 4 months and 22 days since the $50 spike of January 20th 1980!

Richard J. Greene
Put 10% of your assets in gold and pray it doesn’t work. It has been over two decades since gold was widely referred to as an asset class by Wall Street and the media. It would probably be generous to say that even 1% of American investors have an adequate understanding of why at least a 10% portion of their assets should be safeguarded in gold and silver, primarily in bullion. An even smaller percentage understands that they must have physical possession or a custodian that can prove that they are holding their purchased gold in a segregated account.