RSSCategory: Articles: Insights

How to ride the gold wave and minimize risk

| September 3, 2012 | Articles: Insights
How to ride the gold wave and minimize risk

Now that GLD has taken off like a rocket the last few days the question arises “how does one manage the risks?”. That being the risks of chasing a stock and sitting through a pullback right after one buys? Ever get caught up in the moment only to see shortly thereafter the stock pulls back after you are in? Isn’t it at those times you wished you had just remained calm, cool and collected to enable you to get a better fill? That’s called chasing a bus here at All About Trends and every day we hammer the point home — do NOT chase buses, but instead wait for stocks […]

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Why gold doesn’t need the Fed

| September 1, 2012 | Articles: Insights
Why gold doesn’t need the Fed

Gold was a star performer during the month of August, outshining other assets in an impressive rally which took many investors by surprise. Many analysts attributed gold’s strength to investors’ expectations of another monetary rescue operation from the Federal Reserve. But as we’ll see in this commentary, such an action is not only unlikely but unnecessary to gold’s continued strength. After a vigorous rally last week, gold investors adopted a cautious tone ahead of Friday’s annual gathering of central bankers and finance ministers at Jackson Hole, Wyoming. During the 2-day meeting, investors will be on the lookout for verbal hints that the U.S. Fed may implement another monetary stimulus, which […]

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Quanticipation in the Gold Price

| September 1, 2012 | Articles: Insights
Quanticipation in the Gold Price

So here’s a turn-up for the Gold Price, writes Adrian Ash at BullionVault. Today saw the Gold Price rising after disappointment over new Quantitative Easing from the US Fed. Maybe Ben Bernanke’s much-awaited speech at the annual Jackson Hole central-banking symposium wasn’t so disappointing after all. But if so, it fell a long way short of matching 2010’s big promise. The financial media’s first-rush response today was headlined “Bernanke: No more easing, for now”. Ha! So maybe the gold market’s just got its mojo back. Or perhaps this week’s anticipation – the same quanticipation we’ve seen for times this summer – merely put the Gold Price on hold, as the buying already in train took pause. As you can see, the Gold Price hit a […]

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Bernanke Jawboning the Markets

| September 1, 2012 | Articles: Insights

The long awaited speech from Fed Chairman Ben Bernanke at the Jackson Hole Summit has come and gone without any definitive action being announced. However, the Helicopter Man let it be known that he believes the first two rounds of QE were a rousing success. Once again he promised that the Fed stands ready to act if the economic conditions or data warrant it. As usual, the markets, hungry for more of the spiked punch bowl, wasted no time in casting off their initial disappointment with a huge round of indiscriminate buying directed at the risk asset categories. Gold blew through tough overhead resistance at $1680 and looks like it […]

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Gold and silver news today – August 30, 2012

Gold and silver news today – August 30, 2012

Here is a summary of gold and silver related news from today, 30th of August 2012. GoldCore reports in Gold Option Traders Most Bullish Since Bottom In October 2008 that world markets are awaiting the decisions from the US Fed. On Friday August 31, Ben Bernanke will announce the outcome of the meeting in Jackshon Hole. Investors are hoping on more monetary stimulus (QE), while others don’t count on it. At the same time, the gold options market is going higher, pushed up by traders. They clearly expect more QE to be announced; they haven’t been that bullish since October 2008. Mineweb explains in How big is gold’s QE premium how Standard Bank […]

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Fear Index update August 2012: Speeding up

| August 29, 2012 | Articles: Insights
Fear Index update August 2012: Speeding up

Despite the pause in monetary stimulus and the huge expectations built up over QE3, the truth is that US money supply continues to grow at a healthy pace, proving that the supposedly “sterilised” Operation Twist is still inflationary. US July M3, as calculated by shadowstats.com, is over $14.6 trillion, well on its way to reaching $15 trillion this year. The US national debt stands close to $16 trillion – it being a signature of our current debt-based money system that total debt always exceeds total money supply, as when the central bank creates money out of thin air it simultaneously creates an equivalent amount of debt plus interest. Anybody who understands […]

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The purpose of market intervention

| August 27, 2012 | Articles: Insights
The purpose of market intervention

Interventions in markets by governments and central banks are routine and we take them for granted. No one questions them, but they can create dangerous distortions. Their reason for intervening is to take price determination away from markets and consumers. The authorities and big business do not like leaving prices to free markets because prices are subjective: in other words, prices are decided by the desires of the consumer and not the cost of production. This is the central plank in the Austrian School’s explanation of economic theory in free markets, and it therefore follows that what consumers actually want and at what price must in turn determine prices through […]

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The Republicans Return to Gold

| August 27, 2012 | Articles: Insights

A gold commission may be added to Mitt Romney’s Republican Party platform for the November 2012 elections, according to the Financial Times. Such a Commission, writes Adrian Ash at BullionVault, was held under a previous Republican administration, slap-bang between the 1980 and 1984 elections in fact. So let’s compare and contrast the Republican National Convention’s platforms which straddled that Committee. July 1980 – nine years after the United States formerly abandoned the Dollar’s gold peg, and with inflation racing since then to hit untold peace-time rates near 15%, Ronald Reagan’s platform actually make no mention of “gold” by name. Instead, the soon-to-win-office Republicans say that: “One of the most urgent tasks in the period ahead will […]

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Is gold confiscation one of the risks of buying gold and silver?

Are there any risks associated with buying gold? Of course there are, as there is with literally anything you do. Some of the risks include: The risk of buying too high and selling low in a panic mode (when prices are crashing like the silver price in the beginning of May 2011). The risk of buying fake gold or silver. The risk of buying paper gold; your investment could for example  disappear like in the case of MF Global where investors simply lost all their invested money. The risks we just mentioned, share one common theme: they are controllable. With a minimum of research and the ability to ask yourself […]

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Smart money keeps on buying gold: Paulson, Soros, Pimco … except for Warren Buffet

An interesting article appeared on the GATA website this weekend. Bill Murphy who is the chairman of GATA, did an interview 2004 with the magazine “Smart Money”. He shared his bullish expectations on the gold market back then, stating that the gold price would at least double. The magazine along with a New York fund manager did not believe in a positive outlook of gold. Now here is the interesting part: the magazine just published a followup article in which they admit they were wrong. That’s what they call integrity. We find it particularly interesting because there are some many bears out there whose ego’s are too big to admit […]

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Does This Breakout Mean It’s Time to Buy Gold?

| August 24, 2012 | Articles: Insights
Does This Breakout Mean It’s Time to Buy Gold?

Usually I focus on the reasons to Buy Gold rather than the timing, writes BullionVault founder Paul Tustain. I don’t do timing. It is not my normal territory. But as we approach the anniversary of gold’s all-time high, my thoughts turn to ebb and flow of the gold market. Last year, on 6th September 2011, gold hit $1920 per oz. It had shot up from about $1500 at the start of July, making new all-time highs almost daily. Three short weeks later it was back down at $1540. In sterling terms it was almost the same story, £930 at the start of July, up to £1194 and back again to £995. Since then people have left […]

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Financial Alchemy and Fraud in Gold

The gold bull market is alive and well as the summer doldrums come to a close and gold accumulation and trading starts to heat up going into the fall.  As the gold bull market matures and it draws more attention from investors all around the world, it does open up the doors for fraud.  By now we have heard many stories and accusations about manipulations by central planners, bullion banks, short-sellers and futures traders.  The regulators in the West have largely ignored these accusations and have looked the other way when it comes to oversight and creating a fair and legal market place for precious metals. Financial Fraud in the […]

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The Gold Standard Journal of August 2012

This article contains a short summary of the contents of “The Gold Standard Journal” issued on a monthly basis by “The Gold Standard Institute“. Misunderstanding ‘Social’ and ‘Democracy’ and the Abuse of Power (page 2): In this section, the author explains that politicians in Europe and the US are ignoring economic facts only to create an impression that the economy is doing fine. Actually the economy is not at all ok; there are enough facts that prove so. Politicians are (ab)using mass media to keep the focus on wrong facts. Not Orius! (page 5): The author points to the malicious effects of the Keynesian approach. He explains that Keynes his theory did […]

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Big Changes Ahead: Gold Just Became Money Again

| August 19, 2012 | Articles: Insights

On June 18, the Federal Reserve and FDIC circulated a letter to banks that proposes to harmonize US regulatory capital rules with Basel III. BASEL III is an accord that tells a bank how much capital it must hold to safeguard its solvency and overall economic stability. It’s a global standard on bank capital adequacy, stress testing, and market liquidity risk. Here’s the important bit: At the top of the proposed changes is the new list of “zero-percent risk weighted items,” which now includes “gold bullion,” right after “cash.” That’s the part to take notice of. If the proposals are approved by regulators – and that seems likely since adoption of Basel III will be– then […]

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