RSSCategory: Articles: Insights

Determining the value of gold

| September 30, 2012 | Articles: Insights
Determining the value of gold

When considering whether gold is a value investment, one needs to first recognise that gold does not have a balance sheet, management team, price-earnings ratio or any of the other things one needs to analyse before making an investment. Also, gold does not generate any cash flow, so it does not pay a dividend. We can therefore conclude from these observations that gold is not an investment. Indeed, it is something different, which means that normal investment analytical techniques cannot be used to determine gold’s value. Value of course arises from an item’s usefulness, and gold is useful because it is money. Though only used as currency these days in […]

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Last Call Before $ 2,000 Gold – Prospects Of Gold And Confiscation

| September 28, 2012 | Articles: Insights
Last Call Before $ 2,000 Gold – Prospects Of Gold And Confiscation

This article is an excerpt from the Mountain Vision newsletter. We stronlgy encourage you to subscribe to the service. As I write this Update, the price of gold has risen back to US$ 1,775 per troy ounce. The bull market trend has been, once again, forcefully confirmed. It is alive and well both technically and fundamentally. Until the root problems of the global fiat currency and banking system are addressed and solved sustainably, I expect this trend to go on. However, what has occurred in gold markets over the past few weeks is not merely a continuation of the same. I observed a change in tides of the speech and […]

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Tips On How To Time Gold Purchases with Technical Analysis

| September 28, 2012 | Articles: Insights
Tips On How To Time Gold Purchases with Technical Analysis

Technical Analysis is mathematical analysis of the market based on price action, but not the fundamentals of supply, demand, costs of production, and hundreds of other important factors (fundamental analysis). Many people will tell you Technical Analysis does not work. I disagree. If you understand its limits, it works quite well. Do I completely trust technical analysis? Certainly not! I want to know as much as I can about any market I trade, whether it is gold, wheat, an oil stock, or the S&P 500 index, and that includes as many fundamentals and as much relevant technical analysis as possible. How many times have you heard commentators examining the same data, and […]

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The Fed is trapped – Gold is the exit

| September 26, 2012 | Articles: Insights
The Fed is trapped – Gold is the exit

On September 13th, the Fed announced QE3, a policy of open-ended bond purchases which would add $1 trillion annually to the Fed’s balance sheet. The Fed’s decision to provide liquidity ad infinitum, i.e. QE etc, was framed in reasonable and carefully chosen language: …These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative… http://www.federalreserve.gov/newsevents/press/monetary/20120913a.htm The measured wording gave the Fed sufficient cover to mask its increasingly desperate condition, i.e. how to keep its fatally-wounded credit and […]

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Financial Astrology: A Silver Lining For the Dollar & Key Dates For Precious Metals

| September 25, 2012 | Articles: Insights

This article was written by financial astrology expert Karen Starich as a result of a Q&A with GoldSilverWorlds.   There have been some very significant events in the astrology recently that suggest a turn, or shift, has occurred for gold and silver, as well as for the dollar.  In July I wrote to my subscribers that on August 2nd  there could be a significant pullback to both gold and silver that could rattle investors who were long.  There was a harsh Saturn (rules gold and mining) aspect in the Federal Reserve’s chart that suggested a potential restriction on the metals that could have led to a serious pullback.  I also felt there was […]

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Manipulation of the Gold Price & the Crash of Paper Gold

| September 24, 2012 | Articles: Insights

By Jeff Thomas, Internatioal Man There is much discussion these days as to whether the price of gold is being manipulated. The answer is simply “yes.” It is likely that most potential gold investors would agree that the major financial institutions have the ability to influence the gold price. They would also agree that to do so would be of benefit to those institutions. Yet, many investors still have difficulty making the final leap to agree that, if the institutions can manipulate the gold price and, by doing so, will profit from it, they will actually manipulate the price. Odd, as this would seem to me to be the easiest […]

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I have an IRA. How can I invest in Gold and Silver?

| September 23, 2012 | Articles: Insights

It is quite easy! Yes, I am talking about actual physical gold and silver, not “paper” gold, or certificates, or paper promises. Question: Why gold and silver in an IRA? Answer: The simplest explanation is that gold and silver will protect your purchasing power. There are many other reasons including safety in the event of another economic melt-down such as what happened in 2008. Question: Why not buy ETFs (Exchange Traded Funds) that invest in gold and silver, such as GLD, SLV, PSLV, and PHYS? Answer: You certainly can. They are more convenient to buy and sell, and the annual fees are less. But, if you are looking for maximum […]

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Not all that glitters is gold

| September 21, 2012 | Articles: Insights
Not all that glitters is gold

This week we saw another gold counterfeit scandal, this time out of New York, with tungsten-filled gold bars being discovered by a highly reputable dealer. It is very hard to detect tungsten fakes by traditional measures, since tungsten (atomic number 74) has a high density, which is 19.3 times that of water, and comparable to that of gold (atomic number 79). In other words, its weight is very similar to that of gold. However GoldMoney’s ultrasound testing of gold bars is the perfect solution, as it can easily detect impurities of this sort and ensures that the bars meet the stringent GoldMoney Standard of quality. This latest technology guarantees that there is not a […]

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Government and gold confiscation: tips to protect your assets

| September 20, 2012 | Articles: Insights
Government and gold confiscation: tips to protect your assets

This article brings the point of view of Claudio Grass from Global Gold in Switzerland. My advice to everyone is simple and clear: “Get out of the current financial system,  avoid paper money and the banking system in general and move into physical precious metals.” David Stockman has put it this way: “ABCD – Anything Bernanke Cannot Destroy!” Confiscation is already here. I am not talking about outright confiscation of assets, but the confiscation of the buying power by inflating the money supply. If you keep your money in a bank account or “invest” it in bonds, you are actually losing money in real terms (i.e. after inflation). The decrease […]

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Stagflation in extremis & the explosive rise of gold

| September 18, 2012 | Articles: Insights
Stagflation in extremis & the explosive rise of gold

Stagflation’s appearance in the 1970s was like an outbreak of three-headed children. It wasn’t supposed to happen. Prevailing wisdom—an oxymoron among economists—held that high employment and rising prices were economic handmaidens; and that, conversely, slowing economies and inflation were mutually exclusive In the 1970s, for the first time in capitalism’s history stagflation appeared, i.e. prices rose and economic growth stagnated; and, while economists would search for reasons to explain the apparently inexplicable, it was only because they avoided the obvious that they did not find the answer. In August 1971, President Nixon upon the advice of Milton Friedman—the same Milton Friedman who erroneously taught Ben Bernanke economic contractions can be […]

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Miles Franklin Exclusive: The End Game

| September 17, 2012 | Articles: Insights

After some thinking over the weekend, I have come to the conclusion (belatedly, I can’t believe it took me more than 4 seconds) that The Fed committed it’s own suicide last Thursday.  Yes I know, they had already done 2 QE’s, Operation Twist and blown up their balance while stuffing it with all sorts of non performing, substandard garbage assets.  BUT, this episode of buying $40 billion (to start) of MBS per month is open ended. All you need to do is go back through history to see that any “temporary” government program has always been permanent from it’s inception.  Not only has it been “permanent”, nearly ALL government programs […]

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A new gold standard?

| September 17, 2012 | Articles: Insights
A new gold standard?

The US Republican Party recently announced its intention to set up a “gold commission”, to examine the feasability or not of returning to a gold standard. This raises important questions, cutting across the neoclassical economic consensus, so is bound to be controversial. If the commission is appointed, it members will have to re-learn how gold works as money, take on board the consequences of its reintroduction, and understand the reasons why mixing un-backed paper and gold is a flawed compromise. Gold as money is fundamentally different from the paper-money environment we operate in today. Gold cannot be manipulated by government, while fiat money gives governments the flexibility in monetary policy they […]

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The Bottom Line on Gold, the Dollar, and the Euro

| September 15, 2012 | Articles: Insights
The Bottom Line on Gold, the Dollar, and the Euro

By Louis James, Casey Research One of the points we’ve made several times over the last year is that traders stuck in an old paradigm are frequently selling gold for the wrong reasons. The most egregious (or just plain silly) example is that gold often drops when the euro drops. This happens, not because there’s anything wrong with gold at such times, but because gold is priced in dollars. Instead of being thought of as a store of value in many investors’ minds, gold is viewed as a hedge against weakness in the dollar. But what are dollars priced in? Nothing, actually. Purchasing power is the underlying reality any “price” […]

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Well I Didn’t See THAT Coming

| September 12, 2012 | Articles: Insights
Well I Didn’t See THAT Coming

Why didn’t anyone see it coming? asks Adrian Ash at BullionVault. That was the Queen’s famous question, 14 months into this now 5-year old crisis, when she visited the London School of Economics. Well, replied Professor Luis Garicano, showing Her Majesty the LSE’s new £71 million ($140m) faculty building in November 2008, “At every stage, someone was relying on somebody else and everyone thought they were doing the right thing.” Hnh? The British press guffawed and harrumphed at this lame excuse for an answer. But given a few days – and then a few months, and then a few years – the economics profession got its full reply down pat. “The simple response […]

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