Jim Glazen

Big Ben Panics and Gold Responds

Gold responds? Gold was flat last week even though the global central bankers added over $300 billion to reserves.

A more appropriate headline would be "Central Bankers Panic and Gold Does Nothing".

Why the Gold Sell-Off is Unlikely to Last

wasn't doug casey bullish on gold from the early 80's top of $850 all the way down to $250 twenty years later?

case closed.

Why the Gold Sell-Off is Unlikely to Last

Isn't it a simple concept to understand that a seller of stock requires a buyer? No money leaves or enters a stock on a net basis. For every trade, there is a buyer and a seller. If the price of a stock declines, it merely means its value has been reduced. That value reduction went to money heaven. A stock is not money. It's only worth what someone else is willing to pay.

I find it incredible that people believe a credit contraction and a recession is bullish for gold. Gold's chart over the past 4 years looks almost identical to small cap stocks.

We shall see what happens next. I believe commodities get crushed in the coming recession.

Enjoy!

Why the Gold Sell-Off is Unlikely to Last

Money doesn't "come out of blue chip and tech stocks". For every buyer, there is a seller. Every dollar coming out of a stock is replaced by a dollar going into a stock.

Are you really so naive as to not understand a basic money flow?

Why the Gold Sell-Off is Unlikely to Last

How long can the faith last in the US dollar? Longer than you can stay liquid.

Gold went higher because of rapid credit expansion and risk seeking psychology. As the opposite conditions take hold, I expect gold and just about every other asset to take a severe beating.

Enjoy!