Failure of GCC Monetary Union Should Boost Gold Demand [View article]
Gold "10Tola" bars have been the staple of a totally credible Dubai spot market for Indian and other traders for as long as memory goes back. The credible spot market is there where the physical gold moves.
No need to worry, Manya05. When credibility is lost, market locations move :-)
Contrarians: Time to Ditch Gold, Look at REITs [View article]
If Gold is the place to be when the great Inflation comes, then why whould leverageable Real Estate not be again the place to be too?
If the PM markets are manipulated, how about the new legislation that will "stave off" home foreclosures and "avoid" a further (overshooting) collapse of home prices (in the US)?
There will be enough time to take a position again. Real Estate prices tend to move a little slower than metals.
You're standing on the beach before the Tsunami saying, "Look! the ocean's gone!"
A misleading analogy. In the case of counteracting massive and rapid deflation with measured inflation, the central bankers (and the politicians representing the taxpayers who ultimately have to foot the bills) are unlikely to get the measure or the timing right.
Too little money infusion, too late, is what is happening now during the uncontrolled collapse. The inevitable inflation caused by the monetizing of debt and the interest on it will be a more controlled process.
PowerShares DB Gold Offers a Sophisticated Strategy to Small Investors [View article]
The best thing about physical gold is the completely irrational, atavistic feeling of wellbeing when your hand gets weighed down by a kilo of gold, no bigger than a chocolate bar. Mmm, I remember this feeling from 1979..
Another hypothetical story: A coup-d'etat in Saudi Arabia brings a junta to power that will replace the Saudi Rial with an Islamic gold Dinar. Saudi Arabia has its own gold mines to back this currency and to make double sure it now demands payment in gold for its oil exports. China, which has just become the world's largest gold producer, creates a sepate fully convertible Yuan, backed by its gold reserves in the ground. In order to create liquidity and credibility for its gold standard, it purchases bullion on the open market with its depreciating dollar reserves. Switzerland with its large remaining gold reserves joins the return to the gold standard... Other large gold holders, such as the Netherlands, will be under pressure to follow. Unlikely? Sure. But the story of the worthless gold on the stone-age island is even more far-fetched.
I agree partially with Hugh and Pangea. I tried to sell at the top of that 1980 spike myself and the best I could do was 650-670, that is how fast it vanished. However, I do not agree that that spike tells us nothing. Its history tells us about how the spike formed: an oil price spike, collapsing confidence in the USD and geo-political tension on the boil. Precious metals typically spike under such conditions. I do expect a repeat--in inflation adjusted prices.
Jim Sinclair: 9 Immediate Predictions for Gold [View article]
Do you only look at this from from the point of view of gold price or the preservation of your wealth??
Failure of GCC Monetary Union Should Boost Gold Demand [View article]
The credible spot market is there where the physical gold moves.
No need to worry, Manya05. When credibility is lost, market locations move :-)
Contrarians: Time to Ditch Gold, Look at REITs [View article]
If the PM markets are manipulated, how about the new legislation that will "stave off" home foreclosures and "avoid" a further (overshooting) collapse of home prices (in the US)?
There will be enough time to take a position again. Real Estate prices tend to move a little slower than metals.
Real Price of Gold Soars [View article]
A misleading analogy. In the case of counteracting massive and rapid deflation with measured inflation, the central bankers (and the politicians representing the taxpayers who ultimately have to foot the bills) are unlikely to get the measure or the timing right.
Too little money infusion, too late, is what is happening now during the uncontrolled collapse.
The inevitable inflation caused by the monetizing of debt and the interest on it will be a more controlled process.
PowerShares DB Gold Offers a Sophisticated Strategy to Small Investors [View article]
Mmm, I remember this feeling from 1979..
Gold’s 'Grand' Illusion [View article]
A coup-d'etat in Saudi Arabia brings a junta to power that will replace the Saudi Rial with an Islamic gold Dinar. Saudi Arabia has its own gold mines to back this currency and to make double sure it now demands payment in gold for its oil exports.
China, which has just become the world's largest gold producer, creates a sepate fully convertible Yuan, backed by its gold reserves in the ground. In order to create liquidity and credibility for its gold standard, it purchases bullion on the open market with its depreciating dollar reserves.
Switzerland with its large remaining gold reserves joins the return to the gold standard...
Other large gold holders, such as the Netherlands, will be under pressure to follow.
Unlikely? Sure.
But the story of the worthless gold on the stone-age island is even more far-fetched.
Gold: The Last Cheap Asset Class? [View article]
However, I do not agree that that spike tells us nothing. Its history tells us about how the spike formed: an oil price spike, collapsing confidence in the USD and geo-political tension on the boil.
Precious metals typically spike under such conditions.
I do expect a repeat--in inflation adjusted prices.
An Interview With “Trader Vic" [View article]
It appears that palladium may have the biggest potential as the jewellery-metal of choice in China.