When I think of using gold for asset protection I think of it for protection against inflation. But obviously, according to the WSJ, I am all wrong (or maybe not). According to a Wall Street Journal article, billionaire George Soros sold his $800 million stake in precious metals in the first quarter of 2011 saying that he "no longer fears deflation". What? With inflation climbing, I can see why he no longer fears deflation... but why would he buy gold to hedge against deflation, in the first place? … [Read more...]
Why $5,000 Gold May Be Too Low
Jeff Clark, BIG GOLD You already know the basic reasons for owning gold – currency protection, inflation hedge, store of value, calamity insurance – many of which are becoming clichés even in mainstream articles. Throw in the supply and demand imbalance, and you’ve got the basic arguments for why one should hold gold for the foreseeable future. All of these factors remain very bullish, in spite of gold’s 450% rise over the past 10 years. No, it’s not too late to buy, especially if you don’t own a meaningful amount; and yes, I’m convinced the price is headed much higher, regardless of the corrections we’ll inevitably see. Each of the aforementioned catalysts will force gold’s price … [Read more...]
Where is Gold Going From Here?
In today's editorial, David Banister takes a look at Gold and where it could be going. He provides an excellent possible scenario that matches with my views and experience exactly. He is projecting a rally to the $1500 range with a pull back from there and a major take-off for the final wave to the blow-off top from there. This is exactly what we would expect based on Elliottwave patterns. Tim McMahon- editor How long and how high for Gold, and how to play it David Banister-www.MarketTrendForecast.com Regular readers of my articles on Gold over the past few years know that I have a theory on this Gold Bull market. In summary, it’s that we are in a 13 Fibonacci year uptrend that … [Read more...]
Inflation in the Real World
In the following article, Jake Weber from the Casey Report shows how commodity prices have increased an average of 48% over the last year even though "official" inflation statistics say we have only had a little over 1% inflation. What's going on? Typically this shows that inflation is on its way and will be here soon. Because commodities are leading indicators as they are thee raw materials used to produce the things we consume. ~Tim McMahon, editor By Jake Weber, Editor, The Casey Report As is often the case, there is a big difference between what the government statistics are reporting and what’s going on in the real world. According to the most recent inflation reading published … [Read more...]
Casey Gold Summit Offers Investment Nuggets
Source: Diane Fraser of The Gold Report 10/13/2010 Carlsbad is several hundred miles south of Sutter's Mill, but the experts and investors who gathered for Casey Research's recent Gold Summit were just as enthusiastic about the precious metal as the prospectors who headed into the hills back in 1849. The Gold Report took the opportunity to speak with some of the many experts on hand. For three days, the leading experts in the resource investment sector gathered with investors to discuss the investment strategies. Doug Casey, Richard Russell, Ross Beaty, Eric Sprott, Ian McAvity, Rick Rule, Robert Prechter and Bob Quartermain all gave their varied impressions on the market and their … [Read more...]
What is the Economy Usually Doing When Gold Goes Up?
Traditionally when does Gold rise and when does it fall? What economic indicators predict gold prices? In this article Robert Prechter looks at the economy and Gold Prices. ~ editor By EWI President Robert Prechter ...If gold isn’t going up when the economy is contracting, when is it going up? Table 4 (see chart on p. 24 of this free Club EWI report ~ editor) answers the question: All the huge gains in gold have come while the economy was expanding. This is true of the three most dramatic gold gains of the past century: (1) Congress changed the official price of gold from $20.67 to $35 per ounce in 1934, during an economic expansion. The gain against the dollar was 69 … [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...]
Gold, Silver, Plus #3, for Profit & Protection
By Deepcaster Equities-in-general have gone nowhere for the past decade (and have lost 30% or more when their prices are adjusted for inflation), and are in a Bear Market, with no end realistically in sight. And most Bonds and CD’s provide miniscule or even negative returns after adjusting for Real Inflation. And even many Commodities have not been consistently appreciating lately. We have long been an advocate of Gold and Silver, "the ultimate monetary metals". We still consider thems our #1 and #2 selections as the best fortress assets for profit and protection. Indeed, Deepcaster has two open ‘Buy’ Recommendations on a particular form of these Metals. And, as regular readers know, … [Read more...]
How Paper Money Fails
About right now, I imagine 90% of our subscribers and most of the analysts in my building think I'm nuts. Truthfully... I feel a little bit like Chicken Little. I've been saying the risk of hyperinflation is a more serious threat to our wealth (and way of life) than a massive deflation. Meanwhile, just about every month it looks more and more like Europe's banking crisis will cause another round of serious deflation in the world's asset prices. I'm starting to look pretty foolish... I thought economic growth would be stronger than expected, not weaker. I thought job growth would be stronger than expected, not weaker. I thought yields on long-term Treasury bonds would move higher, not … [Read more...]
