James Dines: Countries Are Now Printing Paper Without Limit—With Each New Piece To Chase Gold Higher
February 14, 2013 | By Tekoa Da Silva
I had the great opportunity to connect with one of the most legendary investment newsletter writers in the world, James Dines, publisher of The Dines Letter, for a powerful conversation on markets, gold, & crowd psychology.
Throughout his 60 years of publishing, Mr. Dines has amassed a true library of personal writings, often times being the pioneering global voice of major long-term trend changes in markets and societies.
Of great interest, is his work in the field of psychology. Mr. Dines has documented about 90 of what he calls “High-States” and “Low-States” of thinking, such as the “high-state of service”, and/or “the low-state of stealing”. This philosophical framework contributes to Mr. Dines’ market calls, to which he and his readers have used to create absolute fortunes.
When asked how his life philosophies contribute to his investment work, Mr. Dines said, “I came upon the principle of truth…and there are levels of it, including ‘high truth’. I came up with about 90 of these ‘high states’ that are important in guiding us…for example ‘service’. If you come from serving people instead of taking from them, that immediately get’s your head straight in terms of making relationships work. It’s also important in investing, because you can’t lie to yourself. Nobody could deceive us as we could deceive ourselves. All that exists in the universe is truth—and resistance to it. So when you get down into truth, you can invest more intelligently, your relationships will be better, and you’ll be happier.”
In speaking to the shocking accuracy of his calls over the years, Mr. Dines explained that, “It’s important to understand history [in order] to predict the future. For example, everybody studies the 1930′s to understand the first great depression (we’re in the second one now), but you can’t learn what the cause of it is, by studying it. You need to go back to the 1920′s and realize what the source of it was. And the source of it was a conference that doubled the money supply to pay for WWI, which caused the boom of the 1920′s, and was then punished by the deflation of the 1930′s.”
Despite weak commodity prices in 2012, Mr. Dines’ biggest prediction for 2013 is a roaring comeback of inflation. He said, “What you don’t spend is your savings, that’s your capital. But when governments print too much paper, it dilutes your capital. It diminishes it and you lose. It’s expressed as higher prices. When more paper money chases the same goods and services, prices have to go up by the law of supply and demand. So I predict inflation ahead…How do you protect yourself from it?…The answer is to own hard assets, and that is what I call, gold, silver, platinum, and palladium, maybe even land long-term—and especially coins, because you can move them.”
Speaking toward the many calls for gold to collapse from these levels, Mr. Dines said, “Right now, how could gold possibly have a crash, when all the countries are printing paper without limit? How could that possibly be, with more pieces of paper, chasing each ounce of gold? Yes, it [gold & silver] will have fluctuations…[but] take a long term position if you’re smart and just hold them.”
In a final comment towards sound money and personal savings, Mr. Dines said, “Money can’t be a matter of opinion, money has to be stable. It has to be worth tomorrow what it’s worth today…[and] At some time in the future, the truth will come out. The truth always comes out.”
This was an outstanding interview with one of the true masters of markets living in the world today. It is an absolute “must-listen” for serious investors and market students.
To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to your desktop:
To learn more about James Dines and his work visit: DinesLetter.com
Enjoy the interview? Please support the site by sharing this URL page link with friends, family, and your favorite chat forum.
Tekoa Da Silva
Bull Market Thinking