Kevin Bambrough runs Sprott Resource Corp (SCP.TO), one of my favourite investments
08/23/11 On its way to becoming the world’s greatest superpower, the United States pulled off some truly remarkable trades.
Two notable transactions come to mind and were both outstanding bargains.
The Louisiana Purchase (purchased from the French)
Alaska (purchased from the Russians)
For a mere $15 million, America instantly doubled its size with the 1803 purchase of the Louisiana territory. Sixty-four years later, oil- and mineral-rich Alaska was obtained for a paltry $7.2 million. Even adjusting for inflation, the combined value of these deals in today’s dollars would be very small. However, these two transactions pale in comparison to the greatest trade of all time, one which remains ongoing.
History has shown us that fiat currencies always suffer the same fate and eventually become worthless. Despite this fact, we continue to exist in a purely fiat world clinging to the promise that this time will be different. It is hard to predict exactly when people will awaken from this mass delusion in faith-based assets. But, it is certain that in these times it is wise to avoid gambling your wealth in faith-based assets when the system that you must trust has a clear history of being untrustworthy. We therefore advise you to question your faith and know what you own.