Being "real tangible assets," houses tend to act as inflation hedges. But in recent times they have appreciated by multiples of the inflation rate. This is due more to loose lending practices that to loose monetary policy. In the following article David Galland addresses the current state of housing prices and where they might be headed. ~Tim McMahon, editor Should You Buy a House Now? By David Galland, Managing Editor, The Casey Report Recently, we have had a number of queries about real estate. And no wonder. For starters, real estate prices have come down. Plus, in an environment with next to zero interest rates, the idea of possibly picking up some income-producing property on the … [Read more...]
Uncle Scam
by David Galland, Partner, Casey ResearchThe latest data on global gold trends, Q2 2010, just popped into my email box from the World Gold Council. The bad news is that the higher nominal price of gold has caused a 5% decrease in jewelry sales over the prior year. If you’re thinking “Hey, that’s not that bad!”, you’d be right. On this date last year, gold closed at $950… which is $286 below where it trades as I write. In other words, a 30% rise in price has resulted in a decrease of just 5% in jewelry sales. And even that number is skewed, because the currency value of the gold purchased is up – way up. For example, India – the 800-pound gorilla in the global gold jewelry market – … [Read more...]
If Deflation Wins, What Will Gold Stocks Do?
By Jeff Clark, Senior Editor, Casey’s Gold & Resource Report The talk of a possible double dip is now common banter on TV investment programs. And indeed, deflationary forces seem to have the stronger grip right now than inflationary ones. So if deflation is the next reality we have to face, what happens to our favorite stock investments? There’s lots of data about what gold does during periods of high inflation, but less so with deflation, partly because we don’t see a true deflation all that often. But of course we’ve got the biggie we can look at, and the seriousness of the Great Depression can give us a big clue as to how gold stocks behave in a true deflationary … [Read more...]
The Effects of Fiscal Stimulus are Wearing Thin
The following is an excerpt from Casey's Daily Dispatch... an ezine with thought provoking commentary that I thought you might find interesting. ~ Tim McMahon, Editor Words from the Wise By David Galland, I would like to share just a few snippets I think you’ll benefit from, starting with the latest posting from Ambrose Evans-Pritchard, which you can read in full here. Here’s an excerpt: Today’s release on manufacturing activity by the Richmond Fed is pretty ghastly, as you would expect given that the effects of fiscal stimulus are now wearing off at accelerating pace – before the happy handover to the private sector is safely consummated – and given that the structural … [Read more...]
A Deflationary Double-Dip?
Bring Out Your Dead Last week, the price of gold again broke below its new base at $1,200, and the U.S. stock market was again under strong pressure, due to a confluence of fears, most of which point to a deflationary double-dip. The fears were fanned by disappointment in the just-released early quarterly results, by the latest CPI reports that show inflation continuing to moderate, and by yet another poll revealing faltering consumer confidence. The market is also spooked, no doubt, by notes from the latest Fed Beige Book that make it clear that the Fed is (finally) beginning to understand the entrenched and endemic nature of this crisis. While the notes are written in shamanic … [Read more...]
Ten Benefits of Expatriation
Everybody has their own personal reasons for expatriating, but here are some of the benefits: Freedom from the global U.S. tax net. Freedom from the death tax. Freedom from the U.S. government's War on Solvency. Freedom from being treated like a “toxic citizen". Freedom from the paperwork prison. Freedom to invest without tax distortions that encourage capital misallocation. Freedom from being crushed by the fiat currency landslide Freedom from the accountability for how the U.S. government spends your money. Freedom to radically increase your charitable giving. Freedom from the risk of getting trapped. Read the full article and get your FREE 29-page copy of American … [Read more...]
The 2010 Silver Buying Guide
By Jeff Clark, Senior Editor, Casey’s Gold & Resource Report Silver has been sizzling and causing lots of buzz in the industry. Investors are excited. Part of the hubbub is due to its current run. Since its February 8 low, silver has roared ahead 22.4% (through June 21) and has doubled from its November 2008 low. This excitement has spilled over into greater investment demand – especially so for coins. The U.S. Mint sold more Silver Eagles in the first quarter of this year – just over nine million – than any prior quarter in its history. The Royal Canadian Mint produced 9.7 million silver maple leafs in 2009, also a record. Take a look at the jump in U.S. Mint coin sales … [Read more...]
Paying Taxes on Gold
Give unto Caesar - What to Pay When You're Selling By: Jeff Clark, Senior Editor, Casey’s Gold & Resource Report Proper planning with your finances is incomplete until you consider the endgame consequences of your investment decisions today. So, what are the tax consequences of selling gold, gold ETFs, and gold stocks? There’s lots of conflicting and inaccurate tax information on the Internet about this. We know of one site that claims the sale of silver Eagles is exempt from capital gains tax due to some obscure law (not true). So, let’s nail down the current tax rules for selling gold in the U.S. [The following information pertains to U.S. taxpayers only and is not … [Read more...]
Colombia: A New Gold Rush?
by Andrey Dashkov, Casey’s International Speculator For many investors, Colombia remains a grey spot on their mental maps of South America. La Violencia, the 50-year dark age in its recent past, came to an end with the close of the 20th century. But the memories are fresh, and the impact on the local economy and international perceptions of the country lingers. This reputation still prevents most foreigners from investigating Colombia’s potential – and that spells opportunity. For those curious and courageous enough to see Colombia as a new frontier, early speculations are starting to yield big rewards. The country has abundant natural resources, including gold, silver, copper, coal, … [Read more...]
What the Deflationists Are Missing
by David Galland, Managing Editor, The Casey Report An interesting article by Ambrose Evans-Pritchard came my way the other day. It’s worth a read, if for no other reason than that he paints an appropriately dark picture of the current state of the U.S. economy. You can read it here. While I very much share Mr. Evans-Pritchard’s view that the global economy is far from out of the woods, our views diverge in that he sees devastating deflation speeding our way down the tunnel. Casey Research readers of any duration know that we see devastating inflation. While we could both be right, with deflation first and inflation later, I’m not so convinced. For starters, there is already a … [Read more...]
