Goldcorp's Superhero Tradition: Keep an Eye on the Juniors [View article]
That's a great question. We have in the past invested in McEwen's companies and traded in and out of them. At this point, if you have been following our weekly newsletter, Equedia Weekly, we have been more focused on the small cap resource sector. Goldcorp does not fit in that category.
Our small cap silver stocks in our Special Report Editions have all done well, some reaching well above 100% in the last year. The small caps can offer us returns unlike any other sector.
Precious Metals ETFs: Beware Conflicts of Interest [View article]
Thank you! We will be releasing research on a new junior miner very soon. To keep up, please feel free to sign up for our free weekly newsletter at: equedia.com/equediawee.../
Marketflash: I agree with you. Whether or not gold is a good currency or a good investment are two different things.
As far as capital gains, I also agree that the capital gains tax should be removed on precious metals...better yet, removed completely!
Regarding the capital gains issue:
Our point on capital gains was simple. You had made a comment that, "(Gold) If it goes up in value, you pay capital gains on it. If you hold cash, you never pay capital gains on it."
It depends on what kind of cash you are holding and where its from. For example, if you are holding US cash and you are Canadian, you would have to pay capital gains tax on that US cash when you sell it, or convert it to Canadian...just as you would precious metals or other investments.
Does that make sense? I apologize if I wasn't more clear earlier and thank you for the open discussion comments!
Perhaps gold prices may not climb, but if they stay where they are today, it still means lots of money to be made through investing in junior miners. The leverage will most certainly be there if gold and precious metals stay at these levels.
All three of the silver juniors featured in our newsletters this year have done incredibly well since our coverage. We will be releasing another junior to our readers shortly.
Thank you Steve. Essentially, that is what Robert Zoellick of the World Bank implied.We need to include gold as part of monetary discussions: "The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values,"
alphaman 997: I think you are right. Gold could very easily crash as it has very easily gone up in price.
The fact, however, is that gold is becoming more and more prominent in today's modern currency market, as the World Bank President has mentioned.
With regards to some of your comments that reference the price of gold and that it may be worthless, please read our past newsletter: equedia.com/blog/view....
"In particular, Gold is as good as cash. Actually, it's better - its climbing while the dollar is sinking. While sceptics continue to say that gold is not a good investment, let's compare it to both stocks and the real estate market. What you are about to read may shock you.
In the past three years: gold is up more than 37%. The S & P 500 is down 26%. US real estate is down 13%.
Winner: Gold
In the past five years: gold is up more than 207%. The S & P 500 is down 7%. US real estate is down 15%.
Winner: Gold
In the past ten years: gold is up more than 475%. The S & P 500 is down 20%. Luckily, US real estate is up 23%.
Winner: Gold
Despite the price of gold, gold is a liquid asset. You can buy things with it, sell it, trade it, and even wear it. (see equedia.com/blog/view....)
While we are not gold bugs, we can see the value of investing in gold. We do, however, like to invest in higher leverage plays such as the junior resource sector where the returns can be substantial, and ROI can come sooner.
These are all great comments to a debate that will never end, and has never since Fiat currencies were created.
However, the fact that gold and silver (being physcial) cannot manipulated may actually be wrong in today's modern era of trading. Please see ou newsletter from a few weeks ago that explains this: equedia.com/blog/view....
Market flash: You want the store of value function of money to be stable. It should not go up or down a lot. At times in history where there was a true gold standard for money, improvement in mining techniques and new gold finds caused inflation. I suppose the gold bugs would argue that the gold price of gold is stable, but I'm not so sure.
While we agree that the price of gold is not stable, times in history where there was a true gold standard for money, inflation was minimal. Inflation grows much faster through fiat currencies, as I am sure you may have mentioned before in previous comments.
However, in today's modern era, the gold standard and silver standard has been tried with little success and actually caused major issues, and was thus dropped by the world. This happened all throughout the 1800's when the United States had a bimetallic system of money, however it was essentially on a gold standard as very little silver was traded. A true gold standard came to fruition in 1900 with the passage of the Gold Standard Act.
So back then, gold was cash.
To say that gold is not as good as cash because you have to pay capital gains is also not a fair comparison, as this rule is tied directly to a country's accounting practice. No every country has the same capital gains taxes as the US, or Canada. Also, if you were to buy cash from foreign countries, and that currency goes up in value, you would have to pay capital gains on that "cash" from another country.
As far as stability, while we agree gold is not stable, neither are currencies. One look at the US dollar, the Euro, the Pound, and the RMB over the last 10 years can explain that.
So while gold is not cash, it certainly has been better.
Gold may not have many industrial uses, but do the pieces of paper in our wallets have any? See equedia.com/blog/view.... for more information.
The truth is, everyone is right on some note here. Gold, although has some uses, doesn't do much from an industrial standpoint. But that's not really the point. Unless modern society wants to go back to the bartering system, and trade oil for fertilizer, for cars, for metal, for computers, then maybe gold is worthless...but then so would cash.
Cash is no different than gold. It is worth what people will pay...what they believe it is worth - just like everything in this world.
There is a reason why the US holds the most gold in its reserves of all the countries. There's also a reason why they are the world's reserve currency...
China's government has said that they will be buying gold on the dips and will continue to buy gold to increase their gold reserves. Please see: equedia.com/blog/view....
Enron All Over Again? The Truth on Commodity Price Fixing Will Out [View article]
You're welcome. We will be continually covering this story regarding commodities manipulation and will have another update this weekend. Please feel free to either sign up for our free weekly newsletter to stay informed here: equedia.com/equediawee.../ or you can always visit our archives here: equedia.com/blog/index...
Markets Continue to Rise Despite Poor Data [View article]
The quote: The Obama administration is doing whatever it can to help fuel the growth in the stock market ahead of the midterm elections in November.
This was implying that his government was fuelling the growth in the stock market through government purchases. Please see: equedia.com/blog/view....
In addition, the quote was implying that Obama was doing whatever he could to sustain the stock market rally, regardless of the future implications it may have on American life. In other words, reckless spending.
As far as intentional actions, you are correct. Everything thus far has been intentional. Please see: equedia.com/blog/view....
Thanks. Actually, the point of the article was to illustrate that gold has been around for thousands of years. You are right, the founding fathers did not create the idea. But they did create the idea of pegging their dollar to gold, which was eventually axed as demand easily outgrew supply.
Regarding your comment on looking back 10 years, please review the article again. In particular:
In the past ten years, gold is up more than 475%. The S&P 500 is down 20%. Luckily, US real estate is up 23%.
Gold Prices Should Stay High for Years to Come [View article]
Wishing you, and all of our readers, continued success in 2011.
We'll be returning in the New Year.
Goldcorp's Superhero Tradition: Keep an Eye on the Juniors [View article]
Our small cap silver stocks in our Special Report Editions have all done well, some reaching well above 100% in the last year. The small caps can offer us returns unlike any other sector.
Precious Metals ETFs: Beware Conflicts of Interest [View article]
Gold Is as Good as Cash [View article]
As far as capital gains, I also agree that the capital gains tax should be removed on precious metals...better yet, removed completely!
Regarding the capital gains issue:
Our point on capital gains was simple. You had made a comment that, "(Gold) If it goes up in value, you pay capital gains on it. If you hold cash, you never pay capital gains on it."
It depends on what kind of cash you are holding and where its from. For example, if you are holding US cash and you are Canadian, you would have to pay capital gains tax on that US cash when you sell it, or convert it to Canadian...just as you would precious metals or other investments.
Does that make sense? I apologize if I wasn't more clear earlier and thank you for the open discussion comments!
Gold Is as Good as Cash [View article]
All three of the silver juniors featured in our newsletters this year have done incredibly well since our coverage. We will be releasing another junior to our readers shortly.
Gold Is as Good as Cash [View article]
Gold Is as Good as Cash [View article]
The fact, however, is that gold is becoming more and more prominent in today's modern currency market, as the World Bank President has mentioned.
With regards to some of your comments that reference the price of gold and that it may be worthless, please read our past newsletter: equedia.com/blog/view....
"In particular, Gold is as good as cash. Actually, it's better - its climbing while the dollar is sinking. While sceptics continue to say that gold is not a good investment, let's compare it to both stocks and the real estate market. What you are about to read may shock you.
In the past three years: gold is up more than 37%. The S & P 500 is down 26%. US real estate is down 13%.
Winner: Gold
In the past five years: gold is up more than 207%. The S & P 500 is down 7%. US real estate is down 15%.
Winner: Gold
In the past ten years: gold is up more than 475%. The S & P 500 is down 20%. Luckily, US real estate is up 23%.
Winner: Gold
Despite the price of gold, gold is a liquid asset. You can buy things with it, sell it, trade it, and even wear it. (see equedia.com/blog/view....)
While we are not gold bugs, we can see the value of investing in gold. We do, however, like to invest in higher leverage plays such as the junior resource sector where the returns can be substantial, and ROI can come sooner.
Gold Is as Good as Cash [View article]
However, the fact that gold and silver (being physcial) cannot manipulated may actually be wrong in today's modern era of trading. Please see ou newsletter from a few weeks ago that explains this: equedia.com/blog/view....
Market flash: You want the store of value function of money to be stable. It should not go up or down a lot. At times in history where there was a true gold standard for money, improvement in mining techniques and new gold finds caused inflation. I suppose the gold bugs would argue that the gold price of gold is stable, but I'm not so sure.
While we agree that the price of gold is not stable, times in history where there was a true gold standard for money, inflation was minimal. Inflation grows much faster through fiat currencies, as I am sure you may have mentioned before in previous comments.
However, in today's modern era, the gold standard and silver standard has been tried with little success and actually caused major issues, and was thus dropped by the world. This happened all throughout the 1800's when the United States had a bimetallic system of money, however it was essentially on a gold standard as very little silver was traded. A true gold standard came to fruition in 1900 with the passage of the Gold Standard Act.
So back then, gold was cash.
To say that gold is not as good as cash because you have to pay capital gains is also not a fair comparison, as this rule is tied directly to a country's accounting practice. No every country has the same capital gains taxes as the US, or Canada. Also, if you were to buy cash from foreign countries, and that currency goes up in value, you would have to pay capital gains on that "cash" from another country.
As far as stability, while we agree gold is not stable, neither are currencies. One look at the US dollar, the Euro, the Pound, and the RMB over the last 10 years can explain that.
So while gold is not cash, it certainly has been better.
Gold may not have many industrial uses, but do the pieces of paper in our wallets have any? See equedia.com/blog/view.... for more information.
The truth is, everyone is right on some note here. Gold, although has some uses, doesn't do much from an industrial standpoint. But that's not really the point. Unless modern society wants to go back to the bartering system, and trade oil for fertilizer, for cars, for metal, for computers, then maybe gold is worthless...but then so would cash.
Cash is no different than gold. It is worth what people will pay...what they believe it is worth - just like everything in this world.
There is a reason why the US holds the most gold in its reserves of all the countries. There's also a reason why they are the world's reserve currency...
Gold Is as Good as Cash [View article]
Enron All Over Again? The Truth on Commodity Price Fixing Will Out [View article]
Thanks again!
Markets Continue to Rise Despite Poor Data [View article]
This was implying that his government was fuelling the growth in the stock market through government purchases. Please see: equedia.com/blog/view....
In addition, the quote was implying that Obama was doing whatever he could to sustain the stock market rally, regardless of the future implications it may have on American life. In other words, reckless spending.
As far as intentional actions, you are correct. Everything thus far has been intentional. Please see: equedia.com/blog/view....
Still Turning to Gold [View article]
Regarding your comment on looking back 10 years, please review the article again. In particular:
In the past ten years, gold is up more than 475%. The S&P 500 is down 20%. Luckily, US real estate is up 23%.