RSSCategory: Articles: Insights

Currency wars will boost gold

| April 16, 2012 | Articles: Insights

Gold and silver got whacked again on Friday, prompted this time by news that economic growth in China came in at a disappointing 8.1%. This was down from 8.9% in the previous quarter, and the slowest rate for three years. Chinese consumer prices were up 3.6% in March – below the government’s 4% target and considerably off the 6.5% reached last July. The BBC notes that the People’s Bank of China is likely to take further measures to “loosen monetary policy” in response to this disappointing data. At the same time, Spain’s debt woes are creating fresh enthusiasm for the dollar as a “safe haven”. The Dollar Index is back above 80, […]

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Does Gold Investing Pay?

| April 13, 2012 | Articles: Insights
Does Gold Investing Pay?

Gold Investing yields no income. But does it make life cheaper in future…? What’s the point of investing? Plenty of people below 50 today – and a good many older – might well wonder, says Adrian Ash at BullionVault. Two stock market crashes, two recessions and a global house-price slump make the last decade a worse advert for investing than One Direction are for clean-living youth. Yes, silver and Gold Investing stand out in contrast, but they don’t actually yield any interest. Nor do cash, bonds, Treasuries or stocks anymore. But while the point of investing might be hard to see today, its purpose is plain: “Investing [is] the transfer to others of purchasing power now with the reasoned expectation of receiving […]

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Gold QE3 Scares

| April 9, 2012 | Articles: Insights
Gold QE3 Scares

Sellers hammered gold again this week on news from the Fed. The minutes from its latest FOMC meeting convinced traders the odds for a third round of quantitative easing are waning. This was the latest in a long line of QE3 scares that have become the bane of gold’s existence. But they are merely a distraction from the Fed’s ongoing massive monetary inflation behind the scenes, which is very bullish for gold. Gold has suffered much from QE3 scares. This week’s FOMC minutes drove it 3.4% lower in 2 trading days. On the last day of February, gold plummeted 5.1% after the Fed Chairman’s testimony to Congress made QE3 look […]

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Savings, investment, and the Keynesian preference – a follow-up

| April 7, 2012 | Articles: Insights

There is a general belief that government finances are somehow immune from the financial reality faced by everyone else – an illusion fostered by bond markets and supported by the public’s wishful thinking. 42FPRUQ29GEG Look no further than the plight of the eurozone for evidence of the reality. Not only that, but history tells us that countries regularly default, yet we continue to buy government bonds in the belief they are less risky than any private sector debt. And if we begin to question the status quo, we are even told by financial regulators that government debt is less risky than anything else. Banking regulation enshrines it in Basel Committee guidelines, […]

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Gold’s Decade-Long Bull Run is Dead

Gold’s Decade-Long Bull Run is Dead

…says Gartman.  From Forbes entry in the ‘Running of the Goldbugs, 2012′ sweepstakes: Bernanke delivered the fatal blow to gold’s ten year bull market, according to Dennis Gartman.   Gold has been in bear territory since the summer of 2011, when it topped out above $1,900 an ounce, with the latest post-FOMC sell-off inflicting irreparable […]

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Buying Gold in Financial Repression

| April 4, 2012 | Articles: Insights
Buying Gold in Financial Repression

There’s no escaping financial repression. Apparently. But what about Buying Gold…?read more

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Silver investment – A prospective way to come out of your debt problems

Although gold is frequently considered as the only expensive metal that can serve the function of money, silver too is gaining significance in the investment market. The commercial use of silver is increasing and with this, the value of silver is climbing fast too and even quicker than the cost of gold. Thus, if you’re […]

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Savings, investment, and the Keynesian preference

| March 31, 2012 | Articles: Insights

Neo-classical economists underestimate the importance of the link between savings and investment. The two should be regarded as linked together: you need savings to be available for investment in new …

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Pass the Juice Please

| March 26, 2012 | Articles: Insights

In news this morning that most of the gold community was completely expecting I might add , Chairman ‘Easy Money Ben’ Bernanke announced this morning that he was concerned whether economic recovery was strong enough to sustain itself without supportive and accomodative monetary policy. Translation – near zero interest rates will remain as far as the eye can see. Talk about messing with the heads of the Fed Funds Futures traders – they are getting beat to death by this Fed. Every single time they start anticipating a rise in the short term interest rates based on economic data releases, some one or more of the Fed governors comes down from his or her […]

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Asia’s golden future

| March 24, 2012 | Articles: Insights

For most of the last century the default currency for international settlements has been the US dollar. This has given America ultimate power over international trade. In recent months, the US wielded …

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The Ascendence of Sociopaths in US Governance

| March 21, 2012 | Articles: Insights

By Doug Casey, Casey Research An International Man lives and does business wherever he finds conditions most advantageous, regardless of arbitrary borders. He’s diversified globally, with passports from multiple countries, assets in several jurisdictions and his residence in yet another. He doesn’t depend absolutely on any country and regards all of them as competitors for his capital and expertise. Living as an international man used to be just an interesting possibility. But few Americans opted for it, since the US used to reward those who settled in and put down roots. In fact, it rewarded them better than any other country in the world, so there was nothing pressing about […]

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Iran Says “Gold Is Money”

| March 20, 2012 | Articles: Insights

By Louis James, Casey Research Economic crises signal that the current system isn’t working as expected and needs improvement. When it comes to monetary systems, questioning their fundamentals can lead to doubts about whether the preferred medium of exchange will continue to be preferred for long. The large-scale whirlwind of economic trouble around the globe has pushed some to rethink the role of gold in the economy – and to actually move toward bringing it back. A month ago, a rumor that India is going to pay in gold for oil imported from sanction-struck Iran sent shockwaves through the markets. It was no small deal, both in principle and volume: […]

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UP and UP she goes – where she stops nobody knows

| March 17, 2012 | Articles: Insights
UP and UP she goes – where she stops nobody knows

I am becoming more and more convinced that the US Monetary Authorities have engaged in a process which is resulting in the formation of another bubble, this time once again in the US equity markets. Think back over the last decade+ and what w…

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Bond Collapse Continues

| March 15, 2012 | Articles: Insights
Bond Collapse Continues

Much to the chagrin of the Federal Reserve, bond traders are taking that FOMC statement from yesterday and taking no prisoners as they literally hammer the long bond into submission. I find it a bit ironic (to be honest I am gleeful about it) that the …

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