Traditional wisdom has it that Gold performs well in times of financial distress. Also Gold is considered an inflation hedge... but what if Deflation wins? In this insightful article Jeff Clark answers exactly that question. ~ Tim McMahon, editor Gold Stocks in a Depression By Jeff Clark, Editor, BIG GOLD What if deflation wins? While we think the odds are strongly stacked against it, particularly given the government’s furious pace of money printing, the prudent investor understands – and respects – the time-tested adage, “Nothing is guaranteed.” So while our chips sit squarely on the spot marked “inflation,” what will happen to gold stocks if we’re wrong? … [Read more...]
Gold is Still Money
The following article is excerpted from a brand-new eBook on gold and silver published by Robert Prechter, founder and CEO of the technical analysis and research firm Elliott Wave International. -- Tim McMahon, editor Bob Prechter: Gold is Still Money By Robert Prechter, CMT Have you ever traveled abroad and taken a look at the local currency and wondered how the citizens of that country could take seriously what looks like “Monopoly money?” I’ve got news for you: You’re using the same stuff. Monopoly money is the money over which some government has a monopoly. It is the currency of the realm only because the state makes it illegal to use any other type. … [Read more...]
Building a Gold Portfolio with Gold Stocks
Editor's Note--In the article Is Gold really a good Inflation Hedge? I said, Gold is actually a "crisis hedge." So it should be performing extremely well with all the uncertainty in the markets right now. Well the Crisis is far from over and Gold is still a prudent investment. -- Tim McMahon, editor Gold Stocks – the Best Strategy for Portfolio Building by Jeff Clark, Editor of BIG GOLD October 27, 2008 was the gold mining sector’s Black Monday, the day nearly every stock hit rock bottom. Hindsight makes it plain they got caught in the violent deleveraging that sucked down every equities market in the world. The broader markets were of course making year-to-date lows at the … [Read more...]
Why would Gold fall during an Investment Crisis?
Editor's Note-- In the article Is Gold really a good Inflation Hedge? I said, Gold is actually a "crisis hedge." So it should be performing extremely well with all the uncertainty in the markets right now. In this article Andrew Gordon explains how gold is currently in limited supply and demand is booming due to the crisis and what is currently affecting the price. -- Tim McMahon, editor Has Gold Lost its Investment Luster? By Andrew Gordon Gold dropped from $915 to $859 on Friday [October 10, 2008]. That’s not supposed to happen while the market is crashing. What’s going on? … [Read more...]
Protect Yourself From Inflation
Inflation Warning!!! How do you protect yourself now? In a recent article, I discussed how Gold was not strictly an inflation hedge but more a crisis hedge against worry of all sorts. See How has Gold fared as an Inflation hedge? In another article, How the Iraq War will affect the U.S. economy, I discussed how a wartime economy almost guarantees future inflation. So naturally several readers wrote to ask, “What is the best way to protect against inflation?” … [Read more...]
