Indeendent

Will Gold Break Out?

Two major factors impacting the value of a currency are the debt and the interest rates. US debt keeps increasing. US interest rates will have to stay low, unless the Fed wants our economy to collapse. That will keep the dollar weak. If the ECB will keep the Euro strong, gold might give up, and Euro might become a better hedge against the falling dollar. However, I suspect that there is a powerful effort by the governments to keep the gold from becoming a storage of value. Hard opponents to play against. And they have not tried hard yet. If the oil price is indeed driven at least significantly by speculators, a significant fall in oil prices will lift the dollar. What are your thoughts?

Next Stop: $2,000 Gold

Whether one is a "gold bug" or an ignorant optimist does not matter. There is no single solution to investing, including the "by-and-hold" approach invented for the largely uneducated majority. There is little doubt that the US is in the midst of a financial crisis with a quickly deflating currency. Gold, inter alia, is one of the means to hedge against such a storm. But, eventually, it is not the tool what matters, it is the skill of those who use it. However, "the long-term value of any paper currency is zero." The same cannot be said about gold.

Let's Wait Before Annointing Bernanke "Slayer of the Evil Commodities Bubble"

I also have the feeling that the market is schizophrenically ignores the fundamentals. Whether this behavior is invoked on purpose by the major players is a good conversational piece for those who believes in conspiracies.

Global Precious Metals Correction: Healthy and Overdue

If the European central banks will stay the course fighting inflation, the need for gold as a hedge somewhat diminishes. However, if their banking system reveals more need for cash, the gold will very likely rebound. What was strange is that on Thursday gold was down along with the Euro and Swiss frank. Maybe the world is getting ready for an intervention to lift the US$.