Tag: inflation

Big Inflation Coming

| November 10, 2012 | Articles: Insights
Big Inflation Coming

Well, Americans voted and the winner is inflation. Half our voting populace inexplicably decided to award a second term to Obama. Four more years of mind-boggling record deficits and record national debt growth! Obama’s Administration spent roughly 50% more than the government took in, which can essentially only be financed in two ways. Borrowing from foreigners and running the printing presses. The latter of course is pure inflation. And the Fed bent over backwards with its quantitative-easing campaigns to buy massive amounts of the Treasury debt Obama ran up on our children’s credit cards. It created trillions of new fiat dollars out of thin air to purchase Treasuries to finance […]

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Gold Price In Uptrend And Prepares For Next Phase

Gold Price In Uptrend And Prepares For Next Phase

In September gold rose above its 200-day moving average so it moved officially in an uptrend. It did so after eleven  months of sideways consolidation, moving in a fixed range. Today, the trend is still intact. The key question is if this is the next phase of the gold bull market? Is gold back? Hard Assets Alliance think this is just the beginning for gold and silver. We may see some consolidation or even a pullback due to potential seasonal weakness, or some “price fatigue” after such a big advance, but our bullishness has little to do with seasonality or short-term price surges. Here’s what supports our outlook: Source: Hoisington Investment Management Company This […]

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GE Christenson About His Ebook: Survival Investing With Gold and Silver

| November 1, 2012 | Articles: General

GE Christenson launched an ebook “Survival Investing.” He wrote the book because of his conviction that inflation is an inevitable event. There are dangers associated with the current global money printing schemes, which people should be aware of. These monetary topics are not easy to grasp, so the author created a book that’s easy to read and simple to understand. It’s written in a way that people could relate to the ideas and examples in the book, in order to understand the necessity of hedging their purchasing power to inflation. The author says: “I lived through the inflation of the 1970’s in the United States. I fully expect the coming […]

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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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Michael Pento Confirms Gold Is The Answer To Excessive Money Printing And Inflation

Michael Pento’s latest commentary on the markets is published below. Mr. Pento is the founder and President of Pento Portfolio Stragies, a company that offers (separate) managed accounts. In a nutshell, he explains why the stock markets are going up while economic data clearly show there is no growth in the economies all over the world. Basically the Central Banks are destroying the value of their currencies with their monetary policies, which leaves investors with one valuable option on the longer run: gold, silver, energy, agriculture. An anecdote worth mentioning: during a recent interview on King World News, Michael Pento mentions a quote from Ben Bernanke in which the Chairman […]

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Less than 900 days for hyperinflation in the US?

| September 30, 2012 | Articles: Insights
Less than 900 days for hyperinflation in the US?

John Williams, who is the founder of ShadowStats.com, stated during a recent interview that the US is on track to become victim of hyperinflation the latest in 2014. He believes that “open ended QE” (which is nothing more than monetizing debt) is the key problem. He explains there is an annual deficit of 5 trillion dollar per year in the US, which includes the unfunded liabilities.  He declares the situation “beyond containment”. Central planners are responding to the current economic problems by simply increasing the amount of printed money. John Williams his expectations are that  we’ll soon see a heavy sell off in the dollar, quickly followed by a significant […]

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Determining the value of gold

| September 30, 2012 | Articles: Insights
Determining the value of gold

When considering whether gold is a value investment, one needs to first recognise that gold does not have a balance sheet, management team, price-earnings ratio or any of the other things one needs to analyse before making an investment. Also, gold does not generate any cash flow, so it does not pay a dividend. We can therefore conclude from these observations that gold is not an investment. Indeed, it is something different, which means that normal investment analytical techniques cannot be used to determine gold’s value. Value of course arises from an item’s usefulness, and gold is useful because it is money. Though only used as currency these days in […]

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Uptrend Intact for Gold Bullion

Uptrend Intact for Gold Bullion

Spot market Gold Bullion prices held above $1770 per ounce Friday morning in London, a few Dollars off six-month highs set earlier in the week, while stocks and commodities were also broadly flat ahead of a meeting between the leaders of Spain and Italy, with press reports suggesting plans are being discussed for a Spanish bailout. Heading into the weekend, Spot Gold would make its fifth straight weekly gain if it closes above $1770 per ounce later today, while gold in Euros remained within 1% of last year’s all-time high this morning. “The large uptrend is still intact, and it is positive that gold has been able to hold onto […]

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Infographic about gold, the dollar and inflation

| September 11, 2012 | Articles: Insights
Infographic about gold, the dollar and inflation

We were sent an infographic that was created by Wholesale Gold Group, a US precious metals dealer with a good reputation. The owner of the company Michael MacDonald, has recently written the book “The Silver Bomb: Beyond The Return Of Metal As Money.” The infographic shows how the purchasing power of the dollar has fallen dramatically over the past century and especially in the last decade. Basically it links an increasing inflation rate to the absence of a gold standard. The loss of the purchasing power is presented based on the Consumper Price Index (CPI). One dollar for example was worth 129% more in 1980 than it is today. Two […]

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Why globally coordinated QE and higher gold prices are unavoidable

| September 10, 2012 | Articles: Insights

This article is part of the series “Question for the Expert” on GoldSilverWorlds. We have the honour today to get the view of Grant Williams, author of the respected newsletter Things That Make You Go Hmm. Question: You described in a recent newsletter article, that the next round of Quantitative Easing will be massive and that it will be globally coordinated. Why are you so convinced? What to expect from the gold price in the light of all of this? Answer from Grant Williams: We have reached the point now where the Europeans (in particular Mario Draghi, head of the ECB) have realized that the only solution to the problem […]

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The printing press is running hot, but where is inflation and how will it affect gold?

| September 5, 2012 | Articles: Insights
The printing press is running hot, but where is inflation and how will it affect gold?

This article is based on an interview with Claudio Grass from Global Gold in Switzerland. He gave his view on the question why inflation seems low although excessive amounts of money have been created over the past years. He describes as well what that means for the gold price. The key to understanding inflation lies in the implications of an increasing money supply. Here at Global Gold, we rely on the “True Money Supply” which is provided by the Mises Institute. The “True Money Supply” was originated by Murray Rothbard and represents the amount of money in the US economy that is available for immediate use in exchange. On the chart […]

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What to Do When – Not If – Inflation Gets Out of Hand

| September 4, 2012 | Articles: Insights
What to Do When – Not If – Inflation Gets Out of Hand

By Jeff Clark, Casey Research The cheek of it! They raised the price of my favorite ice cream. Actually, they didn’t increase the price; they reduced the container size. I can now only get three servings for the same amount of money that used to give me four, so I’m buying ice cream more often. Raising prices is one thing. I understand raw-ingredient price rises will be passed on. But underhandedly reducing the amount they give you… that’s another thing entirely. It just doesn’t feel… honest. You’ve noticed, I’m sure, how much gasoline is going up. Food costs too are edging up. My kids’ college expenses, up. Car prices, insurance […]

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African Barrick takeover talk cheers gold bulls

African Barrick takeover talk cheers gold bulls

Gold and silver have crept quietly higher over the course of the last week, with growing signs of a shift in investor sentiment away from perceived safe havens towards growth or “risk” assets. The yield on the 10-Year US Treasury Note has been a notable indicator of this, moving from around 1.4% in late July all the way to 1.8% today. This is still below the yields seen in March, but the rapidity of the rise (coupled with the US dollar’s continuing struggle to gain momentum) suggests that markets could be in for a bullish spell. Inflation expectations are also rising, which should tempt speculators back into the commodities sector. This should […]

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