RSSCategory: Articles: Insights

Buy The Dips In The Gold Price: Two Reliable Buying Indicators

Buy The Dips In The Gold Price: Two Reliable Buying Indicators

Only looking at the gold price chart as an indicator to make a gold or silver purchase is not the best thing to do. One could be distracted by the fact that gold (in most currencies) is somewhere near its all-time highs. One should be more than anything else look at the fundamentals. Those fundamentals have never been better for gold & silver. The most important ones include the follwoing: the monetary base is expanding at a high pace and monetary policies around the world all point to a continuation of that trend, the so-called “money printing” policies are taking place on a global basis and are associated with the debasement […]

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Gold Bubble About To Inflate As Government Bond Bubble Ready To Burst

| October 25, 2012 | Articles: Insights
Gold Bubble About To Inflate As Government Bond Bubble Ready To Burst

Grant Williams, author of the economic newsletter Things That Make You Go Hmm who has been working for more than 2 decades in the financial industry, recorded this remarkable video presentation about economic bubbles. In fact, bubbles are very easy to spot because of their valuations that go out-of-control and are not justified by any fundamental measure. Yet almost all people get trapped, every time again, by participating in the frenziness and joining too late. Grant Williams says in his introduction that “Bubbles happen because the vast majority of people can’t see for what they are”. Knowing that the first bubble dates from the 17th century, one should expect at least that the […]

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Part II – Did You Get These Warnings? Gold?

| October 24, 2012 | Articles: Insights

The author does a terrific job again, this time in summarizing the most important thoughts about the current economic effects on the monetary policy of the US government (in casu QE3). Although a lot has been written about QE3, it can be difficult for people with no economic background, to connect the dots between monetary actions, economic effects, personal risks. Furthermore, with a limited understanding of monetary matters, it can be difficult to distinguish the benefits that are argued by policymakers versus the real benefits / risks. From that point of the view, the following article succeeds in bringing an understandable summary of what really is happening in our economy as […]

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Can You Spend Your Paper Gold?

By the Hard Assets Alliance Team Well, duh, of course not. That might be your response to the question, and you would be quite right. Yet millions of investors are behaving as if a piece of paper – or, more accurately, the electronic representation of same – is the equivalent of a bullion bar. Such is the enormous popularity of the SPDR Gold Trust shares (GLD) traded on the NYSE Arca exchange. It’s a little bit like this: Suppose you’re selling your car. A guy comes by and offers you ten ounces of gold for it. That’s a good price. Sure, you say. But when the day comes to complete […]

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Deviant Investor about Gold, Counterparty Risk & Investing In Paper Assets

| October 16, 2012 | Articles: Insights
Deviant Investor about Gold, Counterparty Risk & Investing In Paper Assets

The author of this article explores maybe the single most important risk of the current and past decade: counterparty risk. In fact, as an investor you MUST take that risk into account. Gone are the days where investing in paper assets would yield high percentages and worst case lose a couple of them. In today’s reality, losing everything while being in the right asset class, is the “new normal”. Indeed, investing in gold via MF Global would have returned zero, while gold and silver were the best performing and safest asset classes of the past decades. The reality is that the financial paper cycle is over and that the commodities […]

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Gold And The Disappearing Yield

| October 16, 2012 | Articles: Insights
Gold And The Disappearing Yield

Traditionally, when economies expanded stocks outperformed bonds; but these aren’t traditional times and although economies have expanded, over the past 30 years bonds have outperformed stocks. Since 1981 the return on long-term government bonds averaged 11.5 %. The S&P stock index averaged 10.8 %; and, since 2000, the returns of stocks over bonds have widened. A major reason why bonds have done better is that since 1982 government bond yields have been declining; and when bond yields decline, bond profits rise. Yahoo Finance: From Dec. 31, 1999, through May 29, 2012, the Barclays Capital U.S. Aggregate bond index – which covers the investment-grade bond market, including government and corporate bonds […]

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Gold: Inflation hedge or something more?

| October 16, 2012 | Articles: Insights
Gold: Inflation hedge or something more?

Gold serves numerous functions as an investment. Traditional reasons for investing in gold include: Inflation Investment market declines Burgeoning national debt Currency failure War or other extreme events Social unrest Some would argue these entire phenomenon are related. For instance investment market declines can lead to war which can be followed by inflation which can lead to currency failure – just look to Germany in the 1920s for proof of this (albeit in a mixed order of events). Basically, gold is protection against various ugly or undesirable societal, political, economic and financial occurrences. That reasoning broadly explains gold’s rise from $650 in 2007 to approximately $1800 today. Gold has risen […]

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Forbes Promotes The Benefits Of Gold

| October 14, 2012 | Articles: Insights

Forbes published an article on its website entitled Gold can save us from disaster. The article is written by Steve Forbes himself and will appear in their magazine in the October 22nd edition. We find it remarkable, not because of the fact Forbes is writing about gold (they are in fact publishing regularly precious metals related content) but because of the types of statements and thoughts in it. This sentence is an important one in promoting the awareness around precious metals: “Unless Mitt Romney educates himself quickly on the need for monetary reform, we are going to have to seriously and deliberately begin the process of education and experimentation”. It’s just […]

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The Case For A Higher Gold Price Based on Monetary History

| October 14, 2012 | Articles: Insights
The Case For A Higher Gold Price Based on Monetary History

People tend to forget quickly and fail to learn from history. As George Bernard Shaw once said : “What we learn from history is that  people don’t learn from history.” So it’s worth one’s time to look back to the past and learn what others before us learnt sometimes the hard way. As far as Gold’s role in our monetary system is concerned, the most recent learnings and insights come from “the Bretton Woods period”. Apart from being a nice resort in the mountains, Bretton Woods stands for the agreements that created a new world monetary system in 1944. Courtesy of Scott Minerd, chief investment officer of Guggenheim Partners, who […]

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4 Facts Every GLD Investor Must Know

Without any doubt, the amounts invested in the Gold ETF “GLD” are enormous. The ETF lowered the barriers for most investors to profit from gold’s long term bull market. For institutional investors, GLD became one of the easiest ways to invest in the rise of the price of gold, as they can’t easily buy physical gold. However investing in an ETF like GLD or SLV carries inherent risks, the most important one being the failure to fully back the shares with physical gold. This means that in a worst case scenario, which is not unlikely given the instability of the world economy, an investor could end up holding only paper. The […]

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Why Mainstream Media, Main Street And Institutions Fail To See The Benefits Of Gold

| October 11, 2012 | Articles: Insights
Why Mainstream Media, Main Street And Institutions Fail To See The Benefits Of Gold

This is the second article in a five part series that is based on a Q&A with Nick Barisheff, CEO of Bullion Management Group Inc. and author of the book “$10,000 Gold: Why Gold’s Inevitable Rise is the Investor’s Safe Haven.” His book will be released later this year but is available now for pre-order on Amazon.com. The main idea behind this article: financial assets and hard assets tend to evolve in opposite directions on a very long term timeframe. Those are simply the dynamics of economic cycles. Many of today’s investors have no other experience than what’s happened in the long bull market of financial assets, between 1980 and […]

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The End of Austerity

| October 11, 2012 | Articles: Insights
The End of Austerity

It’s a common myth that the Labour government in power when the Great Depression went global in 1931 was forced to resign by a banker’s ramp, writes Adrian Ash at BullionVault. The British prime minister, Ramsay Macdonald, denied it at the time. Close academic study has since found evidence lacking, too. But the idea of millionaires in top hats conspiring to weaken both the Pound and British debt (then consuls, now gilts) still lingers. By demanding gold for their paper at the Bank of England, these interwar illuminati effectively handed a direct demand to London, ordering a cut in welfare payments so severe that Labour politicians – elected by the “working man” – had no […]

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Infographic: Is Silver The New Gold Created By The Silver Bomb

| October 10, 2012 | Articles: Insights
Infographic: Is Silver The New Gold Created By The Silver Bomb

Anyone that spends time at Goldsilverworlds.com knows that precious metals are the best way to hedge against inflation and the rapidly decreasing fall in the value of the dollar. And while gold remains a smart move, there’s much to be said for silver. Why? Because, unlike gold, silver has an inherent value that goes well beyond scarcity. Without silver the world as we know it would literally stop. The computer screen on which you are reading these words, has silver in it. The TV you watch, has silver in it…and the list goes on and on. This infographic was created to help investors learn about the underlying reasons behind silver’s increasing […]

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The Bank Was Saved, and the People Were Ruined

By Jeff Thomas, International Man The above quote is from William Gouge, commenting on the Panic of 1819. The panic had been caused when the First Bank of the United States had first expanded the money supply dramatically by offering loans, then contracted the money supply by tightening its requirements for new loans, causing a crash. This is a useful quote, as, in its simplicity, it states the very nature of crashes brought on by irresponsible banking practices. In every case in which this occurs, it is possible through the complicity of the government of the day. The origin of this syndrome goes back to Mayer Rothschild, a very clever […]

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