petersl

Why Gold Is Rising

Rolfe: I think that you have analyzed the current situation well. I would differ only in your conclusion that in the long run, you don't make money on investing in gold as an asset class. I believe that you can make money, and good amounts of it, by trading gold stocks which are quite volatile if you pay attention and take advantage of situations that present themselves, either in a macro sense, or in specific mining stocks. The secular bull market in commodities, especially precious metal stocks, has been in place for around 8 years now. As Jim Rogers points out in his prescient tome, "Hot Commodities", commodity bull markets have long periodicities (of up to 20 years). With the government panicking and printing money, issuing broad guarantees to the likes of Fanny Mae, Freddy Mac, AIG, GMAC et al (not to mention the money center banks), then you have a recipe for a "sudden stop" as world investors and other central banks may not accept freshly printed dollars as a reserve currency, as you so ably point out in your article. For the long term, I am quite convinced that precious metals and the companies that mine them, are as good a bet as one can find. There will come a time to sell and reap profits, but that day is well into the future, I believe.

Gold Bullion Is Rising in All Currencies

Prieur du Plessis has again demonstrated his intellectual acumen, supporting his statement with sound reasoning. I have been a gold and silver investor (mostly mining stocks, but some physical metal, and ETF's for 5 years). Suffice it to say, that I have been pleased with the results.

All currencies are depreciating against the price of gold now. The old arguments that in a deflationary environment, gold suffers, are being retested as being fallacious in the light of the historical record. During the Great Depression of the 1930's, gold prices increased, not decreased, though the government saw fit to deprive most Americans of the opportunity of enjoying that investment class.

Sold Gold

Very short-term advice from the writer. Traders are welcome to participate in that strategy, but I prefer to take the longer view. Once you trade out of a position, the hardest part comes next, when do you get back in? Most market moves of any significance happen very quickly.

Gold Stocks vs. Gold: Who's Winning?

Excellent article. I now can divine the metrics behind my decision to own AEM, KGC and IAG as major players in my portfolio. I sold off all GLD, SLV and CEF just prior to reading this article and added more IAG.

One Way Not to Play This Market: Gold

I'm not sure that Barrick has eliminated all of his hedge positions as of yet. If not, then gold will find support going forward, not only because additional hedges will be eliminated, but also because the world's biggest gold producer has switched from a hedger to being fully exposed to the POG, which means that Barrick has analyzed the price trends at the present time and believes that hedging is a fool's errand in this market.

Four Keys to Gold’s Next Move

Both silver and gold are valid ways to invest in what is going to happen to the dollar. The DXY broke support at 77.5 and is now in the 76 range, and probably heading lower. The chances of a geopolitical event of negative import, is growing more likely as the international community struggles to deal with Iran and its enabler, Putin's Russia. China is the 800 pound gorilla in the room as far as diversification out of dollar denominated assets are concerned, India is still the most significant gold market at present, but rapidly being overtaken by the inheritors of the Middle Kingdom. The only thing that could reverse the trend would be a massive reversal of the "quantitative easing" that the Keynesians are indulging in at present in Washington D.C., ably assisted by various Goldman Sachs alumni in New York and elsewhere. Rearranging the deck chairs on the Titanic is an old homily that comes to mind. Judicious and strategic purchases of good gold and silver mining companies, accompanied with hedging strategies (selling covered calls for instance on rallies) appears to me to be a prudent investment technique.

Barrick's Buy-Back Comes at a Bad Time

Yes, time will definitely tell. A monumental struggle between the bears and bulls on the price of gold is taking place right now over the battleground around $1000 per oz. I see Barrick's move as the correct one, albeit a little tardy in the execution. We should see a resolution of the struggle in the next couple of weeks, probably by the end of this month, which is historically a good one for precious metals. Don't forget to watch silver, and BTW, buried in the news coverage of Barrick's elimination of its hedge position (over time), was the news that Barrick also sold 25% of its silver production to Silver Wheaton from Pascua Lama's forthcoming production stream, getting a cash infusion in return for selling silver at $3.98 per oz to SLW under the agreement. This is a "win win" for both ABS and SLW.

Chinese Investors Encouraged to Buy Silver

The silver/gold ratio is clearly out of sync at present. Silver bullion is a smart play right now. Coins have a significant premium which argues for metal bars IMHO.

Gold and Silver Remain Static

We are in a cyclical bull market within a secular bear market. The ultimate bear trap is being set and many of those that believe the claptrap on CNBC's permabull programs are going to be most unhappy when the reversal comes. Add to this the fact that over 70% of the inflated volume of trades on the stock exchanges are attributable to front running hyperfast computer generated trades premised on 1/4¢ per share kickbacks that bear little or no connection to reality, will be placed under much greater scrutiny or prohibited all together, and you have a recipe for disaster.

Gold Supply Could Restrain Prices - HSBC Securities

Gold scrap sales have taken a hit according to reports yesterday. I wouldn't be too sure that the gold scrap parties thrown by the victimizers of the uninitiated will continue to yield much downward pressure on gold prices.

No Summer Doldrums for Gold Prices

This article and the comment by cameroni sums up the current consensus opinion among those who follow precious metals and are by nature bullish on gold prices. The question, as generally is the case, is one of timing. I believe that purchasing gold related assets (and silver as well) on any price retreats during the summer months, will be rewarded appropriately as the government stimulus efforts are highly inflationary. The only question appears to be when will this inflation show up.

How the Gold Game Could End

As to who would be purchasing this "worthless relic", an you spell, "C-H-I-N-A"? For those sellers who wish to divest themselves of gold, the Chinese government is there to snap up what they are willing to sell. China only has less than 1% of its massive foreign exchange reserves in the form of gold. Look for them to be active, though silent, in acquiring a higher percentage, possibly a much higher percentage. This will occur in the background, and will not be trumpeted about, otherwise, those clever Chinese would have to be paying a much higher price.

The Dollar's Tipping Point

The problematical T note auction of last week may be an early harbinger of the Fed's problems in selling new paper to the public. The second auction that followed was more successful,so the jury is still out. This is where the rubber meets the road, if the Fed has problems convincing the public to buy bonds (including the Chinese, Asia in general, and investors worldwide), then, the thrust of the author's article is well aimed. If not, then, we will "muddle through" but inflation is the long term trend, so gold and silver stocks and metal are a relatively safe bet. It will be very interesting to see what happens in May, this year.

No Silver Lining for Precious Metal Bugs

The rant of a "dollar bug." Richard Russell has coined this new phrase as a counter to the derogatory term, "gold bug," employed by those who want the illusion of a strong dollar to serve as an opiate to what they consider to be the rubes of this world. The label "dollar bug" fits Mr. Dividend to a "T." Which by the way, is the metric (read trillions of dollars) by which the U.S. Treasury, the Fed and the FDIC are employing to "defend" the U.S. economy from a major recession. These governmental entities are currently involved in the fire hose spraying of taxpayer dollars and credits lavished on such great investments as AIG, Fanny Mae, Freddy Mac, Citi, and others. Mr. Dividend enjoy the fool's paradise that you have so inartfully described.

Alexco Turns a Corner on Development of Keno Hill Silver District

I believe that this transaction demonstrates the long-term business strategy of Silver Wheaton's management, and is potentially a masterstroke, if the Keno Hill strike can be aggressively and promptly brought on line.