There are two camps of investors which have diametrically opposed views on why one should own gold. One camp believes that gold is an excellent hedge against inflation, while the other camp believes that gold is a hedge against "down markets," and deflation.
Gold Editorials & Commentary
June 20, 2015
What is occurring today in China’s Shanghai Stock Index can best be described by Yogi Berra’s famous line: “Déjà vu 2001 & 2007…All Over Again.” Almost 85% of China-listed companies are trading at higher multiples today than they did at the previous market top...
Gold sector is on major sell signal. Cycle is down. Prices need to rally and stay above current level or we could see another sharp drop.Silver is on a long term sell signal and investors should be in cash or short. COT data reveals that speculation is close to...
June 19, 2015
Total world debt has been calculated recently at $223 Trillion dollars. World debt has increased some 40% since the crisis of 2008-2009; as I recall, it was about $157 Trillion at that time. The $223 Trillion is actual debt, and does not include the potential debt...
Watch out! That is what the headline said on the cover of the latest edition of The Economist (June 13-19, 2015). The world is not ready for the next recession. The Economist went on to declare “the fight against financial chaos and deflation is won”….the IMF says,...
Gold Blastoff, DOW & Trans, GDX, GDXJ & SIL Blastoff, Gold & Silver Stocks analysis via videos.
The US stock markets were quick to rally after the Federal Reserve did nothing at its policy meeting this week. Traders love the endless dovishness gushing forth from this Yellen Fed. But their complacency is very misplaced. It was epic Fed easing that fueled the...
Window-dressing or the management of prices for a favourable mark-to-market valuation at year-ends, half-years and quarters has long been a distorting feature in financial markets.
The gold price stabilized in 2014, after it collapsed in Q2 2013. Since then, investors have lost their interest in the yellow metal. Hence, market sentiment vis-à-vis gold is standing at multi-year lows, even multi-decade lows.
As I see it, the following are true:
We are here, staring into the abyss. The greatest monetary experiment of the modern world – the euro, encapsulating the largest middle class market of consumers ever assembled is about to face its greatest test to date.
June 18, 2015
Yesterday’s Fed announcement is a distinct break with the past and a watershed moment for the markets psychologically. The Fed will no longer be able to simply crack the rhetorical whip in order to keep the market tiger sitting on its stool. We will probably get a...
Ever wonder how much gold has ever been exhumed in the history of the world? The GFMS Gold Survey estimates that the total amount is approximately 183,600 tonnes, or 5.9 billion ounces. If we take that figure and multiply it by the closing price on June 16, $1,181...
Rising ~150 percent over the past year and more than doubling since Thanksgiving - any way you slice or weigh its breakneck outperformance, the rally in China's Shanghai Composite index has been outstanding.
The top headline for the last quote was "400 Billion Reasons Why Ebbing Currency Reserves Threatens Bonds", which really caught our eye. Not because of the threat to bond prices, but because the significant decline in prices represents an equivalent decline in...
Recently on TED.com, the well-known start-up investor, Bill Gross, thought out loud the reasons for success and failure of his investments. Convincingly, he comes to the conclusion that the most crucial criteria for success of publicly traded companies is not the...
After more than two years of being trapped in a narrow trading range and four years into a bear market is the gold price about to breakout to the upside as the Fed can’t raise rates once Greece tips the global financial system into chaos?
- Russia “bought gold” for “diversification” – Russian Central Governor Nabiullina. - Russian central bank prefers gold bullion to euros or dollars. - Russia points out that other countries have a “bigger share of gold in their reserves” - “Can’t imagine a...
June 17, 2015
Prices convey information within an Economy. Prices distill all the known, and unknown, factors affecting the availability of things we might choose to buy. Generally, if Price goes up, we will tend to purchase less of an item, while if Price goes down, we’ll buy...
Here is a brief snapshot of counter-cyclical gold’s macro signals vs. other metals (and broad commodities) that are more positively correlated to economies, using weekly chart.
A rumour has been making its way around the blogosphere suggesting that gold coins are not available for purchase from retail outlets across Europe. As one of Europe’s larger gold brokerage and storage providers, GoldCore can confirm that this information is...
June 16, 2015
For the last few weeks, the market has been decidedly bearish. We got out of our long positions at the exact high of the prior rally, but that rally really came up short of our ideal targets. While we were able to recognize that the market was topping in real time...
Gold traders are split over the prospects for gold after prices recovered from an 11-week low reached on June 5. Shanghai Gold Exchange withdrawals reached 1,015.4 million tons as of June 5 and are on track to exceed last year’s withdrawals.
The latest COT report is very good news for professional gold investors. The world’s largest banks dominate gold trading. They are the “commercials”, and it’s clear they have been very aggressive buyers into the tail end of gold’s seasonal weakness. Tomorrow’s FOMC...
On the attached Daily Gold chart, showing our preferred compressed wave (b) triangle Option, it looks like wave .b. of –d- may have ended at yesterday’s early morning low of 1171.90.
Gold prices have extended last week’s gains, due to some short covering in the futures markets and some renewed safe-haven buying amid the collapse of the Greek talks with its European creditors.
Gold has been a store of value for 1000s of years. You can’t purchase gasoline with gold but it has no counter-party risk and is valued world-wide. In contrast, paper and digital dollars, euros, pounds and yen are debt based fiat currencies backed only by the faith...
I’m starting to see lots of chatter about traders preparing to back up the truck when gold reaches $1000. First off, if you believe like I do, that this was a mostly manufactured bear market by the bullion banks in order to stretch price as low as possible before...
The state of Texas has just passed legislation to build its own gold bullion depository, to repatriate $1 billion dollars worth of gold currently stored by the Federal Reserve in New York and to create a new gold electronic payments system to protect from “national...
BIG PICTURE – At the beginning of the year, market participants were expecting the Federal Reserve to raise interest rates during the summer months. This widely anticipated monetary tightening prompted investors to become cautious which halted the primary advance...
