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The Bullion Buzz eNewsletter – February 2, 2010

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Why Soros is Probably Buying Gold Now
Peter Cooper

Given the moves into gold by rival hedge fund managers like John Paulson, it would be surprising if living trading legend George Soros is not buying the yellow metal at the moment. Indeed, investors should always buy when this man hints he might be selling. His comments at the World Economic Forum in Davos seem like classic trader double-speak. What does Soros mean when he says gold is the ‘ultimate bubble’ asset class? Newspapers like the Daily Telegraph fell for his ruse, immediately predicting a massive tumble for the precious metal....


Gold Stocks Versus Gold Bullion
Steve Saville

It is widely believed that gold stocks offer leveraged exposure to changes in the gold price; this belief is false. At least, the historical record suggests that it is false on a long-term basis. Saville discusses the BGMI:gold ratio over the past 50 years, and examines how it supports this theory. In closing, he addresses why gold mining companies are unable to leverage gains in the gold price over the long term, when a gain in the gold price seems as if it would lead to a gain in a gold miner's cash flow....

Creating a Trillion from Thin Air
Dan Amerman

The Federal Reserve reported a $45 billion profit for 2009, making it the most profitable financial institution in the US. The media put a positive spin on this report, saying it was great news for the economy and the financial sector. But are they right about that, or could the full story of what happened represent a direct threat to the value of Americans’ savings and retirement investments?...

Read these article’s synopsis and more in this week’s BullionBuzz visit: