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Gold – Should You Trust Your Instincts?

Gold – Should You Trust Your Instincts?

With a rising stock market based on cheap credit it’s no wonder that precious metals have taken a hit. Investors move money to where they think they can get the best return. The trouble is that even as stocks are going up and the gold price is hurting, investors and central banks are loading up on gold and silver like never before. There’s a disconnect here. Who is right and who is wrong?

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The Truth About Gold Backwardation

The Truth About Gold Backwardation

For the moment being the gold market is NOT in backwardation. It has not been at any time whatsoever on the Comex during the entire time this backwardation talk commenced and picked up some gullible followers.

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Marc Faber: I Don’t Feel Comfortable Holding Cash With Banks

Marc Faber: I Don’t Feel Comfortable Holding Cash With Banks

I was expecting gold to be in a correcting mode after 2011, but I didn’t expect the price to come down this much because had I expected it to happen and had I been sure about it happening, I probably would have sold my gold and bought it back more recently. Equally, I have an asset allocation and I don’t feel comfortable holding cash with banks. I don’t feel comfortable with any paper currencies, so at all times, I want to have some of my money in metals.

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When [?] Gold And Silver Bottom Is Irrelevant To Your Financial Health

When [?] Gold And Silver Bottom Is Irrelevant To Your Financial Health

There is no evidence of a change in trend. The gold and silver price can still go lower, possibly move sideways, and have occasional rallies, a natural feature of all bear markets. Know that it takes time to turn a trend around. If you keep a focus on what the intrinsic value of gold and silver offer, [rights, title, interest], you may feel less pressure to have price turn around to the upside and more secure in your holdings. At current low prices, opportunity is so ripe.

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Steve Forbes: Gold Should Be An Insurance Policy In Your Portfolio

Steve Forbes: Gold Should Be An Insurance Policy In Your Portfolio

Gold should be simply like an insurance policy for your portfolio. If things go wrong you have something that is going to protect you. In terms of investing in gold that is a very tricky thing which we have seen in the last two years. Gold has gone from $1,900 to about $1,300. You have to be very careful. You should buy it mainly as an insurance policy. If the politicians do things right then you can invest your money in productive assets.

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Silver – The Great Game

Silver – The Great Game

You buy insurance to protect against unlikely but possible destruction of your assets. Have you purchased silver or gold insurance against the all but inevitable destruction of your paper assets? Do you feel safer and more protected knowing that your silver and gold is physical, not paper, and stored in a secure, off-site, out of the banking system, depository?

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Japanese Consumers To Become Net Buyers Of Gold Again After 8 Years

Japanese Consumers To Become Net Buyers Of Gold Again After 8 Years

While the largest gold ETF in the Western hemisphere is unloading physical gold the land of the rising sun is doing the opposite. The biggest ETF in Japan has accumulated 10% of its physical holding this year. Bloomberg writes that “Japanese consumers are poised to become net buyers of gold for the first time in eight years as the yen’s decline and looming inflation drive them to seek refuge in bullion.

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The Gold Roller Coaster

The Gold Roller Coaster

Gold’s true value is not as a trading commodity, but as a means to preserve wealth. If the bond market collapses, gold will remain. If the stock market collapses, gold will remain. If currencies fail, gold will remain. Gold may well go plunging down but will ultimately come back up and go well beyond previous levels. $2000? $4000? $6000? Hard to say.

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Gold’s QE3 Anomaly

Gold’s QE3 Anomaly

I think traders, especially in the futures realm, are missing the forest for the trees. They are so worried about what Bernanke had for breakfast that they’ve totally lost sight of the big picture. It doesn’t matter one bit what the Fed says, but what the Fed does. And throughout this entire raucous 2013 “debate” about what the FOMC is planning for QE3, it has continued to aggressively monetize debt without respite.

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Silver Fundamentals Are Strongest Ever

Silver Fundamentals Are Strongest Ever

Peter Schiff just released his new research report entitled “The Powerful Case for Silver” (pdf format). In it, he explains why the upside potential of silver is greater than the one of gold. Peter Schiff believes that the fundamentals for silver are the strongest they have ever been and that silver is massively undervalued at today’s prices.

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Silver – Light at the End of the Tunnel?

| July 10, 2013 | Category: Investing
Silver – Light at the End of the Tunnel?

The most common interpretation of the recent shift is that the large bank (presumably, but not directly confirmed as JP Morgan) has closed out its silver short positions (at a nice profit, no doubt), and is now positioning itself for a bullish silver reversal. This is certainly what the bank appears to be doing in the futures market, although its participation through “paper” products based on silver’s spot price, rather than on the underlying metal itself, makes it difficult to know for sure

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Gold Bull or Bear? Think of Gold As An Insurance Policy.

Gold Bull or Bear? Think of Gold As An Insurance Policy.

During a recent webinar by TheStreet.com a gold expert panel discussed the question if gold is still in a bull market. The outcome of the discussion was that gold being in a bull or bear market is somehow irrelevant. The gold price does matter, of course; owners of physical gold have a hard time stomaching the recent price decline. But the key point is that gold is a currency. So owners of PHYSICAL gold are holding the metal as an insurance policy against a currency crisis. Obviously that is not the trader’s perspective.

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Another Silver Buy Signal

Another Silver Buy Signal

The stage is set for the large bullion banks to profit from a rally. Expect a rally. The silver and gold markets are deeply oversold and sentiment in both markets is very low. Now is a time to buy gold and silver, not sell them. Silver and gold sentiment and indicators are at multi-year, multi-decade, or all-time lows.

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Why Commercials Are Long Gold – A Reasonable Explanation

| July 1, 2013 | Category: Investing
Why Commercials Are Long Gold – A Reasonable Explanation

Welcome back to the world of risk management and HEDGING for the mining industry. That is what I believe transpired this past week. Many mining companies began to re-examine their swearing off of hedging or forward selling and moved to take steps that would guarantee their survival even if it meant leaving some potential profits on the table.

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