Tag: gold

Stephen Leeb: Smart Money Is Extremely Worried About What Lies Ahead

With continued volatility in key markets, including currencies, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management, to get his take on what is happening.  Leeb spoke with KWN about the level of fear and concern that is being expressed from older market veterans that are extremely well connected.  Here is what Leeb had to say about what is taking place:  “Byron Wien is really one of the deans of Wall Street analysts.  He’s been at this for over 40 years, and he has a superb record.  One of the features of his work each year is that he interviews a […]

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Gold is real, central planning is fiction

| July 5, 2012 | Articles: Insights
Gold is real, central planning is fiction

The dream of developing a science that would allow wise philosopher kings to rule humanity from ivory towers is as old as Plato, but it received a significant boost during the 20th Century as “scientific” socialism searched for the tools to replace the market economy and the price system with a centrally planned “ideal” world. John Maynard Keynes’ equation-rich General Theory of Employment, Interest and Money gave many aspiring central planners what looked like the mathematical tools to do so, and they rushed to build both statistical and mechanical extensions that would bring practical policy applications to economic theory. Unfortunately when logic is absent and the theoretical foundations are a mish-mash of […]

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Peter Schiff: The Return of the Gold Standard

In my latest book, The Real Crash: America’s Coming Bankruptcy – How to Save Yourself and Your Country, I devote a full chapter to the merits of the historical gold standard and reasons to reinstate it. What I did not mention and few investors notice is that central banks are already returning to gold as the ultimate safe haven asset. I believe this change in policy, combined with continued inflation of Western currencies, is creating a stable floor for the gold price and an even brighter upside potential. A Strategic Shift The return to gold is unmistakably the product of a strategic, not merely a tactical, shift in global central […]

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A Dow/Gold Ratio for Independence Day

| July 4, 2012 | Articles: Insights
A Dow/Gold Ratio for Independence Day

A lot of people pay close attention to the Dow/Gold Ratio, writes Adrian Ash at BullionVault. You might want to take a look this Fourth of July, too. This blunt measure of stocks versus stuff gets nearly 5 million results on Google, posting some 650 unique stories on the Dow/Gold Ratio. Search volumes for the term “Dow Gold” don’t quite match “Kim Kardashian” say, over the last 5 years (nor even “Reggie Bush”). But spiking in late 2008 and mid-2011, they very nearly matched search volumes for “Treasury bonds” – a market priced at twice the value of all the gold in the world. So why the interest? The Dow/Gold Ratio maps, over time, how the Dow index […]

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John Embry: Fixes From The 70s Won’t Stop This Disaster

Today John Embry gave King World News an extraordinary interview. Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, discussed market manipulation, the crisis today vs the 70s, inflation and where we are headed.  Here is what Embry had to say:  “I’m fascinated by this whole Barclays situation, in the sense that they have been accused, and have admitted as such, that they have been manipulating Libor.  This actually affects about $360 trillion worth of the world’s financial transactions.” John Embry continues: “It’s actually a shocking thing when you think about it, but I like to relate it to the gold and silver markets.  These people messed […]

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Richard Russell: Is Anything Safe In Our New World?

With continued uncertainty surrounding global markets, the Godfather of newsletter writers, Richard Russell, asked an important and intriguing question, “Is anything completely safe in our new world of central bank fiat paper?” Russell also discussed gold at length, but first, this is what Russell had to say about  the action in stocks:  “I wanted a mechanical way to follow the secular (primary) bear market.  This required a moving average that was insensitive to secondary reactions and also insensitive to cyclical (short-term) bull and bear markets.  In other words, I needed a long-term moving average that would portray the primary trend while screening out most minor and secondary movements.” Richard Russell continues: “After much […]

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5 reasons why you should invest in gold in 2012

| July 2, 2012 | Articles: Insights

With the economy problems still on a rise there is a constant need felt for better investment opportunities among investors. If you want to invest your hard earned money into some lucrative arena, shares and bonds don’t seem too convincing. However investment is a must as there is no point making the growth of the money stagnant by keeping it at home. So you need to find a way out! A considerable option that you can hold back on is investments in gold. Gold prices since the earlier times seem to have a steady rise bringing great profits. The demand for gold is also always on high and people never […]

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Where was the gold?

| July 1, 2012 | Articles: Insights
Where was the gold?

I am an avid reader of monetary history. Of late I have been focusing on the monetary events of the 1920s and 1930s. By learning from the maelstrom that riled the global financial scene during those two tumultuous decades, I aim to better understand present circumstances because there are many similarities between then and now. I’ve just finished a fascinating book published in 1955 entitled Confessions of The Old Wizard. It is the autobiography of Hjalmar Horace Greeley Schacht, whose improbable name reflects his North Schleswig ancestry and his father’s admiration of an American newspaper editor. For those not familiar with him, Schacht is generally given credit for ending in 1923 […]

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Jean-Marie Eveillard: This Is All A Delusion, I Am Keeping My Gold

With global stock markets trading higher, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds.  Eveillard told KWN that despite “the fact that the stimulus has been completely unprecedented in scope … the economic recovery seems to be sputtering.”  He also discussed the gold market, but first, here is what Eveillard had to say about the ongoing crisis:  “There is no doubt that there are major deflationary forces at play.  There is also no doubt that the private sector is continuing to deleverage.  But in order to prevent the deleveraging of the private sector from sending the economy into a replay […]

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John Embry: We’re On The Edge of Collapse, We’ve Run Out of Time

Today John Embry told King World News, when referring to what is needed to bail out Europe, “All I know is that these numbers are staggering … We are on the edge of collapse.  We’ve run out of time.”  Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, also told KWN that if the euro does split apart, it “will be extraordinarily chaotic.”  Here is what Embry had to say about the crisis:  “We’ve got to focus on what’s coming up in the short-run with regards to the European situation.  It’s going to be an extremely interesting summit they are hosting this Thursday and Friday.  The problems are piling up […]

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Gold and Silver Steady Ahead of EU Summit Despite Negative Forecast

Gold and Silver Steady Ahead of EU Summit Despite Negative Forecast

Prices to Buy Gold hovered just above $1580 per ounce throughout Tuesday morning’s London trade, up around 0.6% on where they ended last week following gains in yesterday’s trading. Prices to Buy Silver traded in a tight range around $27.50 an ounce – 2.1% up on the week so far. “After last week’s bearish price action it is hard to get excited about a sustained rally [for gold],” says the latest note from technical analysts at bullion bank Scotia Mocatta. “In our opinion,” adds Commerzbank senior technical analyst Axel Rudolph, “gold has resumed its downtrend…we will retain this negative forecast while the Gold Price trades below the current June high at $1641.” European stock markets meantime edged slightly higher […]

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Jeffrey Saut: Europe To Launch Massive Two Trillion Euro Bailout Package

With tremendous volatility in global markets, today King World News interviewed one of the savviest guys in the business, Jeffrey Saut, Chief Investment Strategist for Raymond James.  Saut surprised KWN by saying that Europe is about to launch “a two trillion euro bailout package.”  He also stated that this “puts our Federal Reserve into a box whereby they will have to provide some kind of liquidity event in order to keep the US dollar from spiking higher.”  Saut also discussed gold, but first, here is what he had to say about the crisis in Europe:  “Having worked inside the Washington DC beltway, I have a pretty good working knowledge of politicians, bureaucrats […]

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How Does Gold Fare During Hyperinflationary Periods?

How Does Gold Fare During Hyperinflationary Periods?

By Jeff Clark, Casey Research Inflation is a natural consequence of loose government monetary policy. If those policies get too loose, hyperinflation can occur. As gold investors, we’d like to know if the precious metals would keep pace in this extreme scenario. Hyperinflation is an extremely rapid period of inflation, but when does inflation (which can be manageable) cross the line and become out-of-control hyperinflation? Philip Cagan, one of the very first researchers of this phenomenon, defines hyperinflation as “an inflation rate of 50% or more in a single month,” something largely inconceivable to the average investor. While there can be multiple reasons for inflation, hyperinflation historically has one root […]

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Fear Index update: June 2012

| June 23, 2012 | Articles: Insights
Fear Index update: June 2012

The constant talk about gold’s lack of yield, which in many analysts’ opinion disqualifies it as a desirable asset, ignores the very important and extremely valuable function that gold performs as an independent and reliable store of value. Savings and liquidity have value, especially in times of uncertainty, and so does insurance. Gold is money and it is also insurance against the failure of fiat currency. How much is it worth to protect your hard earned wealth from the arbitrary decisions and regime uncertainty that permeates the world of monetary policy? The simple fact is that people around the world – particularly in Asia – are willing, as many have […]

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