8 Reasons ETF Investors Go for the Gold [View article]
Mr. Lydon, You said "Inflation. We have all heard of gold’s ability to hedge against inflation." without presenting any proof. Can you show, for example, gold price vs. CPI and SPX? Without such basic data support, the assertions appear crap.
Hedge Fund Redemptions May Crash Q1 Markets [View article]
The crash caused Madoff bust, not the other way around The author got it backwards. "The scheme began to unravel when, in 2008, clients wanted to withdraw $7 billion from the firm and Madoff was struggling to raise $7 billion to cover redemptions. On December 10, 2008, he suggested to his sons that the firm pay out several million dollars in bonuses two months ahead of schedule. Then at his apartment, he admitted to his sons that his firm was a fraud."
This puzzles me a great deal and I beg for some explanation. There seem to be arguments for gold everywhere and every economic and financial factor has been used by gold bulls. I don't remember seeing a gold bear article. Inflation is said to be good for gold. But I don't see proof presented for that, or a correlation between CPI and gold price. I am afraid that during deflation, we will hear that deflation boosts gold prices and will even be shown charts proving that point. Weak dollar, strong euro of necessity, is said to be good for gold. Now in the current article, we hear: "gold prices will rally even higher as investors dump what's perceived to be the ultimate king of fiat currencies (euro)." This is odd since it means that strong dollar boosts gold. I also heard that credit crises, which is deflationary, boosts gold. It's also quite convincing that prosperity boosts gold. Any factor, in either the positive or the negative direction, boosts gold. If I believe what I read about gold, any change boosts gold, so does stability. Are the gold bulls nuts?
Is Gold a Good Investment During the Credit Crunch? [View article]
This article is half finished. It discredited two myths about gold prices: interest rate spread and bank failures with historical data. So we learned that there no correlation between gold that those factors. But the article jumps to another myth without proof: "there is only one main reason why people should hold gold and that is inflation. " Isn't it a simple data gathering and presentation to superimpose inflation data, CPI/PPI or M2 over gold prices? Has anyone seen or constructed such a chart to establish the gold/inflation relationship? Without the data, we are running the risk of buying another myth.
Gold's Golden Run All Set to Continue [View article]
This article is totally incoherent. Stockerati sounds like a foolish gold peddler who doesn't care about data, while claiming to be "the data-driven person I am". What a joke.
Stockerati asserts: During times of inflation or recession in the economy, Gold prices always sky-rocket.
You should have taken a look at a historical gold price chart and line it up with recession and inflation to see if there is any correlation. I see consistency.
The 200 YEAR DOW/GOLD Ratio is particularly misleading. The positive-sloped green band actually means the in the period, gold underperformed DOW except when the line dipped outside the band briefly for a few times.
I believe gold will go up, but not for the reasons the author made up.
8 Reasons ETF Investors Go for the Gold [View article]
You said "Inflation. We have all heard of gold’s ability to hedge against inflation." without presenting any proof. Can you show, for example, gold price vs. CPI and SPX? Without such basic data support, the assertions appear crap.
Hedge Fund Redemptions May Crash Q1 Markets [View article]
The author got it backwards.
"The scheme began to unravel when, in 2008, clients wanted to withdraw $7 billion from the firm and Madoff was struggling to raise $7 billion to cover redemptions. On December 10, 2008, he suggested to his sons that the firm pay out several million dollars in bonuses two months ahead of schedule. Then at his apartment, he admitted to his sons that his firm was a fraud."
Gold's Finest Hour: How to Buy Now [View article]
"gold prices will rally even higher as investors dump what's perceived to be the ultimate king of fiat currencies (euro)." This is odd since it means that strong dollar boosts gold. I also heard that credit crises, which is deflationary, boosts gold. It's also quite convincing that prosperity boosts gold. Any factor, in either the positive or the negative direction, boosts gold. If I believe what I read about gold, any change boosts gold, so does stability. Are the gold bulls nuts?
Is Gold a Good Investment During the Credit Crunch? [View article]
But the article jumps to another myth without proof: "there is only one main reason why people should hold gold and that is inflation. "
Isn't it a simple data gathering and presentation to superimpose inflation data, CPI/PPI or M2 over gold prices?
Has anyone seen or constructed such a chart to establish the gold/inflation relationship? Without the data, we are running the risk of buying another myth.
Gold's Golden Run All Set to Continue [View article]
I see no consistency.
Gold's Golden Run All Set to Continue [View article]
Stockerati asserts:
During times of inflation or recession in the economy, Gold prices always sky-rocket.
You should have taken a look at a historical gold price chart and line it up with recession and inflation to see if there is any correlation. I see consistency.
The 200 YEAR DOW/GOLD Ratio is particularly misleading. The positive-sloped green band actually means the in the period, gold underperformed DOW except when the line dipped outside the band briefly for a few times.
I believe gold will go up, but not for the reasons the author made up.