Tag: stock market

What Happens With The Gold Price If Deflation Wins?

What Happens With The Gold Price If Deflation Wins?

It’s hard to argue that high debt levels are deflationary. And with the current expansion based largely on debt, we can’t expect sustainably higher economic activity to be generated. So what happens if deflation wins? Even if we eventually get inflation, what happens to our gold investments if we first go through a deflationary bust?

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What Has The Gold Price Done Since 9-11

| October 16, 2014 | Category: Price
What Has The Gold Price Done Since 9-11

Note the graph of the ratio of gold to the S&P 500 Index. Both are rising together and gold is now inexpensive (again) compared to the S&P 500 Index, like it was on 9-11. Since 9-11 crude oil prices have gone much higher and crashed lower but on average they have increased with gold prices.

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Silver Price At Historical Extremes Compared To Oil And Stocks

Silver Price At Historical Extremes Compared To Oil And Stocks

Silver is currently inexpensive compared to the S&P 500 Index, crude oil, the size and rate of increase of the national debt, and especially the future price for silver after markets have reset, paper assets have devalued, and hard assets have jumped much higher in price.

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Gold vs S&P 500: Insights From The 25-Year Chart

| October 7, 2014 | Category: Economy
Gold vs S&P 500: Insights From The 25-Year Chart

The gold vs S&P500 ratio at the gold peak in 1980 was about 8. The ratio was trending downward from 1980 to about 2001. Subsequent to the stock market crash of 2000, 9-11, and the massive increase in spending and debt, the ratio now trends upward.

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Is A Looming War Coincident With A Depressed Gold Price And Stock Market Peak?

Is A Looming War Coincident With A Depressed Gold Price And Stock Market Peak?

Gold has gone down for nearly three years, while the stock market has gone up for well over five years. The reversal may not occur tomorrow or next month, but it will occur. This is, in my opinion, a time for caution in the stock and bond markets and for purchases of gold and silver. Eventually the prices for bonds, stocks and gold will be reset in accordance with the realities of massive “money printing,” exponentially increasing debt, generational-low interest rates, huge deficits, escalating war in the middle-east, and Asian purchases of physical (not paper) gold.

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Bubble Mania: Is The Mother Of All Bubbles About To Burst In 2014?

Bubble Mania: Is The Mother Of All Bubbles About To Burst In 2014?

Yes, a “big one” could happen. Stocks look over-priced, gold and silver look “beaten down,” the global credit and currencies bubbles could implode, global derivatives are a potential disaster zone, and our politicians seem intent on creating distractions, “false flags,” and new ways to enrich the military-industrial complex and bankers.

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Gold And Today’s Economic Danger Zone

Gold And Today’s Economic Danger Zone

This is a clear and present DANGER ZONE. Evaluate your personal and family vulnerability to traumatic changes that must occur, whether in 2014 or during the next few years. Consider your personal and financial risk factors, and make adjustments as needed. Given your personal circumstances, will gold (and silver) or unbacked paper currencies and debt issued by insolvent governments serve you better during the next ten years of turmoil?

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QE: Quantitative Easing or Questionably Effective

QE: Quantitative Easing or Questionably Effective

The rally in the S&P, when priced in barrels of crude oil, does not look nearly as impressive. Remember – a small percentage of people benefit from higher stock prices, but everyone pays when oil prices rise. The price of gold has increased over the past 15 years, and will, thanks to the good folks who are bringing us more debt and QE, probably increase much more in the next few years.

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Stocks And Precious Metals In Extreme Territory

Stocks And Precious Metals In Extreme Territory

Given the inverse correlation between stocks and metals, it is “expected market behaviour” that precious metals are trading at the opposite extreme. The S&P500 is relentlessly climbing to all time highs, driven by monetary bazookas of central bankers around the world. The metals have only been recovering from a disastrous year (2013) and are in search of a solid bottom. This article looks at the data under the hood of the stock and metals markets, as well as the fundamental strength of both.

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Has The S&P 500 Topped At Exactly The Same Price As Gold?

| April 24, 2014 | Category: Price
Has The S&P 500 Topped At Exactly The Same Price As Gold?

The extremely interesting fact is that spot gold has topped at exactly the same level as the S&P500 top (to date, on a closing basis). In the short run, we do not exclude that equities could go higher. However, several factors confirm the longer term view. It is the combination of all circumstances described in this article, as well as the point of maturation of each, that confirm a major decline in US and European equities is very close. Needless to say, this should also be a major catalyst for precious metals.

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Silver About To Move Higher and S&P Lower

| April 22, 2014 | Category: Price
Silver About To Move Higher and S&P Lower

There appears to be far more downside risk in the S&P than in silver. Silver has had three bad years while the S&P has had five good years. It is time for both markets to reverse. Examine the following graph of Silver versus the Silver to S&P ratio. It tells me the ratio has returned to levels seen in 2008 and that the ratio follows the price of silver.

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10 Questions About Gold Investing In 2014

10 Questions About Gold Investing In 2014

In this article, author Gary Christenson provides answers on ten very common questions about investing in precious metals (gold in particular) in 2014. With the gold price 40% off its peak, 2.5 years in a declining pattern on the chart, there are a lot of questions about the true value of gold investing. The answers, though, could be surprisingly simple, at least for those who are willing to see in an unbiased way.

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S&P and Gold: Extremes and Reversals

| February 3, 2014 | Category: Price
S&P and Gold: Extremes and Reversals

Gold and silver probably made important double bottoms in December, along with a major high in the S&P. Look for big rallies in gold and silver and a rough year for the S&P.

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Marc Faber: 5 Investment Insights Related To Gold, Stocks, Property

Marc Faber: 5 Investment Insights Related To Gold, Stocks, Property

I have no faith in paper money, period. Next, insider buying is also high in gold shares. Gold has massively underperformed relative to the S&P 500 and the Russell 2000. Maybe the price will go down some from here, but individual investors ought to own some gold. About 20% of my net worth is in gold. I don’t even value it in my portfolio. What goes down, I don’t value.

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