RSSCategory: Articles: Insights

How does a Gold Bull Climax look like

How does a Gold Bull Climax look like

Gold has had a rough time lately, grinding relentlessly lower. Such technical weakness has naturally spawned increasingly bearish psychology. This has led to a fringe view growing in popularity that gold’s mighty secular bull has already given up its ghost. If these new-bear arguments are correct, gold’s secular bull had to peak last August. But was that latest topping gold-bull-climax worthy? Not even close. As the word describes, “secular” bull markets last a long time. In the stock markets, secular bulls and bears tend to run for an incredible 17 years each! Gold’s latest bull was born way back in April 2001, over a decade before its alleged climax in […]

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The Great Crash of 2012?

| May 12, 2012 | Articles: Insights

Deflation fears are once again becoming the dominant emotion in the minds of traders, with banking difficulties on both sides of the Atlantic and continuing weakness in precious metals and commodities. News that the China Investment Corporation – China’s biggest sovereign wealth fund – no longer wants to buy European sovereign debt has only added to the sense of unease. The euro continued losing ground against the dollar yesterday, and though it has rallied this morning, looks like it could test the $1.29 mark sooner rather than later. Corn, copper and Brent crude also sustained further losses, with news of a boost in OPEC production adding to the downward pressure […]

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The case for gold is still strong

| May 12, 2012 | Articles: Insights

With another sell-off in precious metals leaving gold below $1,600, there is of course much talk in the media about the “death of the gold bull market”. But have the fundamentals really changed? Or is this now a chance to buy gold at a more attractive price? The truth is that no recent news supports the case for the end of the gold bull market, and little evidence to support the idea that the financial system is on the mend. The elections in France and Greece have increased eurozone instability, and will likely encourage further efforts from the European Central Bank to weaken the euro, in an effort to appease socialist critics […]

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Gold Price Demand Drivers

| May 11, 2012 | Articles: Insights

Central bank old demand is a relatively price-insensitive force that’s strong day-to-day, clearing the market of stock when available. It enters the market in a way that leaves the market relatively undisturbed, writes Julian Phillips of GoldForecaster. But the rest of demand is very different. It’s this other demand that will drive the Gold Price. Some of it is price sensitive, some not. Some is price sensitive in a surprising way. Some simply takes tonnage without being in itself a driving force. There are some forces that have no intention of holding gold for longer than their short-term view persists and then will sell it again. Within the above parameters, it’s extremely difficult to […]

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Casey Research Summit Special Report: Reality Check or Checkmate?

Source: Karen Roche and JT Long of The Gold Report (5/9/12). One special session at the April 27–29 Casey Research Recovery Reality Check Summit wasn’t on the agenda—a private panel for The Gold Report readers with three of the premier summit speakers: Global Resource Investments Founder and Chairman Rick Rule, Casey Research Senior Editor Louis James and Casey Energy Opportunities Senior Editor Marin Katusa. You won’t pin them down to a timeframe, but they’re looking forward to a buyer’s market, as equity prices fall and volatility increases. As Rule puts it, “When the luster is off the sector, it’s off all parts of the sector, so in bad markets the […]

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Why gold money?

| May 7, 2012 | Articles: Insights

Recently Rob McEwen of McEwen Mining Co. and Michael Crofton of Philadelphia Trust discussed the pros and cons of the gold standard. In this debate, Mr McEwen made an excellent case for gold as “the ultimate currency”. He argued that using gold as currency could help restore fiscal discipline in governments; and that, in essence, it already is the world’s reserve currency. Conversely, Mr Crofton stated all the typical arguments against the gold standard: that there is not enough gold in the world for everyone; that it would prevent the authorities from controlling the monetary system; that it would hinder the government’s debt financing, etc. Here are some of my responses to […]

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Is an Economic Deluge Nigh?

Is an Economic Deluge Nigh?

By David Galland, Casey Research If history has taught one certain lesson, it is that the less fettered an economy, the better humankind is able to do what it does best: run from trouble and run toward opportunity. In this way mistakes are quickly resolved and progress assured. Conversely, the deeper the muck of regulation, mandates, taxes, subsidies and other bureaucratic meddling, the slower we humans are in following our natural instincts until the point that progress is slowed or even stopped. It is said that history doesn’t repeat itself, but it often rhymes. In the current circumstances, it appears that enough time has passed that current generations have completely […]

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Keynesian vs Austrian debate hotting up

| May 5, 2012 | Articles: Insights

Last week, an Austrian-School economist, Robert Wenzel, gave a speech to the New York Federal Reserve, and separately Bloomberg hosted a television debate between Ron Paul, who is running for the Republican Presidential nomination, and Professor Paul Krugman, one of the foremost advocates of Keynesian economic policy. The debate between advocates of big government and small government is beginning to move into the media. It is not so much a question of who wins the debate: rather it is that the minority Austrian view is being noted by a few economists at the Fed, and that Krugman, who last year turned down an opportunity to debate economics with Robert Murphy of the […]

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Eurozone breakup: how would this affect precious metals?

| May 4, 2012 | Articles: Insights

As funding pressures and economic distress increase in Spain, talk of a potential breakup of the eurozone has returned. There has been debate as to whether this would be a deflationary or inflationary event, and how it would affect the precious metals markets. In the event of a breakup, investors need to be prepared for a period of extreme volatility, characterised by chaotic trading conditions in all markets. Similar to 2008 a financial shock such as the failure of the eurozone would likely be met by trading that is more characteristic of panic/liquidation decision-making than fundamentally sound trading. Remember that after the collapse of Lehman Brothers gold traded almost as […]

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Gold Price & Silver Price Manipulation: is it real or not?

A lot has been written in the last couple of years about the manipulation of the gold price and silver price. As the subject is becoming more widespread known and even accepted, it raises also questions from people that are not very familiar with gold and silver. That’s why we decided to collect some very recent writings and interviews from 7 different people that are well respected in the precious metals industry, most of them are real experts and are in the industry for many many years. First some general questions & answers on the gold price and silver price manipulation So the first question is “what is it exactly?” Well, it’s the […]

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Could we return to a Gold Standard ?

John Butler, author of the new book “The Golden Revolution”, provides an answer to the question if we could return to a Gold Standard. His answer to that question is clearly “yes”; he  thinks that a Gold Standard could be very well in the cards, even remarkably fast. The implications on the gold price would be remarkable as well, as explained below. Mr Butler explains that his view is based on today’s economic situation. In particular, two economic facts could very well lead to a situation with the gold standard as an outcome. In particular, he mentions the decline of the US economy over the past years as well as the […]

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Global Gold Supply 3

| April 28, 2012 | Articles: Insights
Global Gold Supply 3

Ever since the beginning of gold’s bull market, this metal’s economic balance has come under intense scrutiny. Demand has been on the rise as more and more investors have embraced gold as a store of wealth. And the supply chain has done its best to meet this growing demand. However considering gold’s sharply rising price over the last decade, it is clear that this market has been experiencing a major structural imbalance. And the supply side of the equation has proven to be a fascinatingly volatile realm, making it quite difficult to set the scale. Interestingly this supply volatility is somewhat of a new phenomenon, as the major supply sources […]

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So Long, US Dollar

| April 26, 2012 | Articles: Insights

By Marin Katusa, Casey Research There’s a major shift under way, one the US mainstream media has left largely untouched even though it will send the United States into an economic maelstrom and dramatically reduce the country’s importance in the world: the demise of the US dollar as the world’s reserve currency. For decades the US dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for US dollars, and that international demand constitutes a huge part of the dollar’s valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of […]

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Doug Casey on Taxes and Freedom

| April 24, 2012 | Articles: Insights

The always-outspoken Doug Casey addresses a broader view of taxation and its costs to both individuals and society in general in this interview with Louis James. L: Doug, the Taxman cometh, at least for most US citizens who file their annual tax papers on April 15. We get a lot of letters from readers who know about your international lifestyle and wonder about the tax advantages they assume it confers. Is this something you care to talk about? Doug: Yes; something wicked this way comes, indeed. But first, I have to say that as much as I can understand the guy who flew his airplane into an IRS building, as […]

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