Those invested in gold or other precious metals were slaughtered in the last two trading days. Although the pain of their losses is likely not to be eased by the chart that follows, it does show the validity of gold as a long-term strategy. As Voltaire once said: “All fiat currency returns to its intrinsic value — zero!” This chart [...]
gold
standard Repent, The End May Be Near!
This religious advice might be appropriate for financial markets. That certainly was the way it felt over the last couple of days. Gold and silver, as well as other commodities, have been pummeled. Today the Dow is off about 200 points as I write. What happened to our economic recovery? If you have been reading this website, you know there is [...]
standard Gold To Benefit From Cyprus Fiasco
Peter Cooper hits the nail on the head with respect to what Cyprus means for gold: With the fate of Cyprus under deliberation this weekend it is becoming apparent that the only debate is over what is the least worst option to take. The important thing for global finance is that the principle that bank deposits are safe within the [...]
standard Gold Is Not In A Bull Market
People talk about the bull market in gold being over. Can something that never began and never was, actually end? That is not a philosophical question meant to deceive. The question is critical to understanding gold and its valuation. The Nature of Gold There is no bull market in gold! There never has been and never will be. Gold is an [...]
standard Gold — Something Seems Very Wrong
The gold market seems to be getting more and more bizarre. This behavior by central banks is merely another indication that something is wrong/about to happen. When central banks no longer trust one another, it would appear that the entire system is coming apart: The move toward auditing gold holdings is getting more pronounced as we can see from this [...]
standard The Dead Canary Is Having Its Weekend At Bernie’s
Recent action is gold has been disappointing and perplexing. Central banks print money furiously in order to enable their bankrupt sovereigns to survive. Yet, gold is plunging when one would have thought it should be soaring. The purpose for holding gold is to protect against currency moving toward its intrinsic value of zero. Yet just the opposite seems to be [...]
standard Gold — Who Needs It?
Rumors that the US has leased out much of its gold have been rampant for several years. Whether that is true or not I have no definitive information although it does seem plausible. There is enough smoke around this issue to suggest that a fire exists somewhere. This behavior would be consistent with the dying-empire behavior that prevails in the management of [...]
standard Happy Days Are Gone Again
The joy of Friday's Dow close over 14,000 should be taken with a grain of salt and huge amounts of caution. Peter Schiff can always be counted on to rain on Washington's parades and also Wall Street's. Here is Mr. Schiff's take on why you should not be impressed with Dow 14,000 and why you should be concerned: The media [...]
standard Gold Transfer Looks Strange
Germany is recalling much of its gold. For many years, Germany stored its gold outside the country. The Federal Reserve was the largest custodian with London ranking second. Germany now sees the need to hold a large portion of its gold domestically so they are transferring gold from overseas back home. Is this something that could drive up gold prices? [...]
standard Bad News Ahead
Tim Price offers some important observations in this article: Credit expansion, wrote the great Austrian economist Ludwig von Mises, is not a nostrum to make people happy. "The boom it engenders must inevitably lead to a debacle and unhappiness." That seems a pretty accurate summary of the current situation for the western economies: a debacle, and unhappiness. Von Mises also wrote that [...]
standard Retirement Planning And Gold
The question of how much gold or silver one should hold is a common one. The answer is usually expressed in terms of portfolio percentages, as in 10 – 20 percent of one’s investments. Such an answer is without basis. Why is 15%, for example, any better than 100% or 0%? The question and the answer reflect the uncertainty of [...]
standard An Inevitable, Unhappy Ending
Tim Price offers some important observations in this article: Credit expansion, wrote the great Austrian economist Ludwig von Mises, is not a nostrum to make people happy. “The boom it engenders must inevitably lead to a debacle and unhappiness.” That seems a pretty accurate summary of the current situation for the western economies: a debacle, and unhappiness. Von Mises also wrote that [...]