Tag: currency crisis

A strong gold price and positive performance of gold as an investment in Q1 2012

The World Gold Council published this week their quarterly research about the investment in gold in the first quarter of 2012. There were three major conclusions, as summarized below. 1. The gold price has risen in all major currencies. The long term positive evolution of the gold price is still intact. In terms of the US dollar, the gold price has risen 8.6% in the first quarter of 2012. Compared to the gold price of the same quarter of year earlier, the price was 22% higher in dollar terms. We saw a very similar trend in the gold price in other major currencies, like the euro or the yuan. Especially […]

Continue Reading

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, […]

Continue Reading

Bad News for the Euro

Bad News for the Euro

Last Augst the Euro was in a “compressed” state, writes Brian Hunt for Steve Sjuggerud’s Daily Wealth. This is a situation where an asset’s day-to-day volatility gradually dries up and the highs and lows move closer together. These low-volatility periods are often the calm before a storm. The Euro then suffered a huge decline…and the “Euro debt crisis” dominated the financial news. The Euro’s decline took it from $1.44 to $1.26 (a huge move for a major currency). After such a huge fall, it was only natural to see the Euro stage a “relief” rally. As you can see from the chart, this rally allowed the Euro to make back some of its […]

Continue Reading

Vietnam increases gold market controls

The State Bank of Vietnam is instituting a de facto nationalisation of Vietnam’s gold market, in an effort to restore confidence in the country’s currency – the dong. Vietnam is suffering from a growing current account deficit and record-high inflation. The government’s new measures will have unpleasant side effects, as more than 2,000 Vietnamese gold traders might have to close their businesses. However, private citizens will retain the right to buy gold. From May 25 the State Bank of Vietnam will in effect be the sole controller of gold trading in the country. Rules passed last year pushed many small gold traders out of business, and these new gold rules means that after the May […]

Continue Reading

James Turk: Gold Shorts in Retreat, Currency Destruction Guaranteed

With gold trading at $1,660 and silver attempting to rally back to $32, today King World News interviewed James Turk out of Europe.  Turk told King World News that the shorts have not been able to break the gold and silver markets.  Turk also said the current trend guarantees destruction of the currencies.   Here is what Turk had to say about the situation:  “It has been a rough couple of weeks, Eric.  That is not unusual over a holiday period, like the 4-day weekend here in Europe.  Liquidity usually dries up during these periods, so short-term volatility can often be the result.  And we have seen that in both the […]

Continue Reading

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 …

Continue Reading

Emerging Gold Juniors and Explorers Should Recover in 2012

Jeff Berwick, chief editor and founder of The Dollar Vigilante and avowed anarchist, holds precious metals for safety and holds their equities for profits. In this exclusiveGold Report interview, he counsels geopolitical diversity and paying close attention to precious metal stocks. COMPANIES MENTIONED: AMARILLO GOLD CORP.– GOLDEN PREDATOR CORP. – IAMGOLD CORP. –MERREX GOLD INC. – NAUTILUS MINERALS INC. – TIREX RESOURCES LTD. The Gold Report: Your newsletter, The Dollar Vigilante, is the closest thing the newsletter industry has to a comic book superhero. Why the name? Jeff Berwick: In 2007 a headline, “Where are the bond vigilantes?” started me thinking that you really cannot have bond vigilantes when the central banks can buy as many bonds as they want. There […]

Continue Reading

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 …

Continue Reading

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: […]

Continue Reading

Casey Research Recommended Reading

| March 14, 2012 | Articles: Insights

By Robert Ross, Casey Research We at Casey Research are often asked, “What books have had the biggest impact on your investing philosophy?” To find out, we took a quick, informal poll of our most prominent economists, editors, and analysts to see which books helped form their unique economic outlooks. The books range from mainstays of the political economy, such as Thomas Sowell’s A Conflict of Visions, to classics from antiquity, including Plato’s The Republic. However, genres often overlooked – like our founder Doug Casey’s longtime interest in science fiction – should give current and prospective subscribers a glimpse into the diverse influences that drive our publications. Doug Casey, best-selling […]

Continue Reading

Asian trade deficits: prelude to more money printing?

Gold and silver prices slipped lower yesterday, partly perhaps because of bearish Chinese economic statistics, but the more relevant point is simply that these markets are consolidating. Whether or …

Continue Reading

Time to Accumulate Gold and Silver

Time to Accumulate Gold and Silver

By Jeff Clark, Casey Research Do you own enough gold and silver for what lies ahead? If 10% of your total investable assets (i.e., excluding equity in your primary residence) aren’t held in various forms of gold and silver, we at Casey Research think your portfolio is at risk. After speaking at the Cambridge House conference last month and talking with many attendees, I came away convinced that most investors fall into one of two categories: those that hold an abundance of gold and silver (which tends to be physical forms only), and those with little or none. While both groups need to diversify, I’m a little more concerned about […]

Continue Reading

John Embry says Gold price and Silver price are about to break out

In this interview during a workshop with GATA (Gold Anti-Trust Action Committee), John Embry from Sprott Asset Management explains why he thinks that the gold price and silver price are on the cusp of breaking out. Question: What is going to cause the breakout and what is currently still preventing it to break out? Answer: The real problem is excessive debt. Governments pretend they have solutions. If we look at Greece as an example, we see that the only solution is massive money printing. That only results in currency devaluation, which is the ideal environment increases in precious metals prices. Eventually the physical gold and silver markets will take over […]

Continue Reading

Why China is buying Gold

Why China is buying Gold

FOR OVER three decades, since the start of the country’s “Reform Era” in 1978, China has been exporting more goods than it has imported, writes Porter Stansberry in the Daily Wealth. That’s allowed the nation to stockpile trillions of Dollars – more money than our entire monetary base totaled before the recent financial crisis. The way it works is simple to understand. When a Chinese business earns Dollars by selling overseas, the law requires the company to hand those Dollars over to the country’s central bank, the People’s Bank of China (PBOC). In return, the business gets Chinese currency (called either the “Yuan” or the “Renminbi”) at a fixed rate. There’s nothing fair […]

Continue Reading