RSS FeedRSS

The more people invest in gold coins the harder things get for Wall Street. They need new blood – not only from investors but from companies as well.

April 08, 2011 – The more people invest in gold coins the harder things get for Wall Street. They need new blood – not only from investors but from companies as well.

In the 1990s initial public offerings (IPO) averaged more than 500 each year but since 2001 that number has plummeted to only 130 says research firm Dealogic in the Wall Street Journal. That is very problematic for Bernanke & Co., and their response is classic.

The Securities and Exchange Commission is looking to change the rules on how start-ups raise capital. At first blush that might seem like a good idea, but IPOs are costly and time consuming for good reason: investor protection.

Before an IPO can be considered, a business has to show three consecutive years of good performance (or in the case of the dot com, have the believable potential for astronomical future revenues). Every detail of the firm that could be important to a reasonable investor must be scrutinized – anything that could be construed to be deceptive practice will be revealed.

Once the SEC approves an IPO the individual investor has equal opportunity to participate in the offering and the knowledge to make an informed decision is readily available. That equal opportunity bit is particularly bothersome to insiders.

The changes being proposed “would help such privately held companies raise more money without incurring the increased reporting and other requirements of becoming a public company,” says the Wall Street Journal. It would effectively “shut out many ordinary investors from one of the fastest-growing market sectors … and at a time when investors are seeking more market transparency, it would lessen the amount of publicly available data.”

The Fed-Wall Street juggernaut keeps rolling on over the rights of individual investors. As long as they are willing to keep donating their blood it cannot be stopped. But the day is coming when enough of us have moved our money into gold coin investments that the insiders will have to start feeding on their own kind.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine

captcha