History shows that gold is an excellent performer in both inflationary and deflationary economic scenarios. Author: Ronald Stoeferle Posted: Thursday , 24 Jun 2010 VIENNA (Erste Bank) - The central question of whether the next few years will be dominated by inflation or deflation still remains unanswered. In periods of inflation, tangible assets are the preferred asset class, whereas in times of deflation, cash is king. Gold is liquid, divisible, indestructible, and can be easily transported. It has a worldwide market and there is no default risk associated with it, which means it is cash of the highest quality. Therefore gold is the optimal investment both in deflation and … [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...]
Gold Investing
Gold Is Going Nowhere…But Up By Joshua Burnett My father-in-law recently sent me an article from the Money section of CNN under the title: “Beware The 4 New Asset Bubbles,” written by Shawn Tully, senior editor at large at Fortune. Mr. Tully contends that there are four new balloons in the economy: Treasuries, Oil, Gold, and Stocks. My father-in-law was primarily concerned with gold so let’s look at that. The “Historic Average” of Gold Mr. Tully makes several claims concerning gold. His first indirect statement address all four items: “They’ve already seen huge run-ups that put their prices far above their historic averages, and far above the levels justified by fundamentals.” Au … [Read more...]
Gold… the Timeless Inflation Hedge
In the article Is Gold really a good Inflation Hedge? I said, Gold is actually a "crisis hedge." But here Jeff Clark tells us how gold can also be a store of wealth and a long term inflation hedge.~Tim McMahon, editor What Do You Have in Common with King Nebuchadnezzar? By Jeff Clark, Editor, Casey’s Gold & Resource Report “There’s no reason to invest in gold,” said the finance editor of a major newspaper interviewing me. “If gold goes up because of inflation, then so does everything else, so why buy it? It’s not really a good investment.” She was serious. Yes, she is a finance writer. And yes, it’s a newspaper you’ve heard of. I was so dumbfounded that I must have sounded … [Read more...]
How do Gold Stocks Perform in a Depression?
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...]
How High will Gold Get?
By Jeff Clark, Editor, BIG GOLD Gold isn’t going to $2,000 an ounce. Before you gag on your coffee or suffer chest pains, allow me to explain. We’re about eight years into the bull market, and gold has breached the $1,000 level twice and has spent weeks trading above the old high of $850. Some observers are now saying that gold’s pretty much had its day and that once the recession is over, it will retreat for good. However, the four-digit gold price we’ve seen so far is with no price inflation to speak of, no effects of the atrocious increase in the money supply, and despite a rising dollar. What happens to gold when each of those pictures gets turned upside down – high … [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...]
