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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.

Bankers, Economists Say Gold Is a Bubble: Here's Why You Should Ignore Them

Mr. Kim has dissected Nouriel Roubini's pale effort at a reasoned critique of gold investment with the skill of one who is well practiced in the art of employing Occam's Razor. Kudos to Mr. Kim for an exceptional analysis, without resort to graphs.

I have been struck by the highly selective and misleading data mining employed by the politicians, economists and their fellow travelers who denigrate those who invest in gold. Bubble indeed. Have they applied their same flawed reasoning to the bubble in fiat currencies now inflating? No, that would be too painful. It is interesting that the first comment to this article by Mr. Kim, was contributed by someone with the identity of "jrainspe" who dashed off a one liner of questionable utility, i.e., "BS." Perhaps a bit of projection, I assume.

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.

2010 Preview: Commodities

My concern with the logic of this piece, is that the writer believes that high interest rates on the long bonds (with the values of the bonds going down), automatically is negative for precious metals (in the writer's opinion during the 1st half of the year). I believe that a contrary trend might take hold and precious metals go up instead of down. True, higher interest rates are generally not good for gold in particular, but if long term interest rates go up drastically (it happened in the late '70's and early 80's with Paul Volcker's strong monetary medicine regime), then we are probably in a high stagflation scenario. Recall what happened to gold during the period 1978-1980. This could happen again, not assuredly, but there is a chance that history could at least rhyme here, and gold, silver, platinum and palladium could serve as a good hedge or insurance policy against the continuing and possibly accelerating demise of the dollar (and all fiat currencies).

Gold: What a Difference a Month Makes

Bespoke group? What does that identifier signify? The term, "bespoke" denotes "tailored" or "specially designed and made." To the extent that this piece reflects much of the main stream financial press' designed attack against precious metals and investors in that asset class, I would tend to agree that this article is characterized as "bespoke."

I offer in contrast to the obvious bias of this article, that gold has just now completed its ninth year running in positive, year by year, accretive gains. Indeed, the pace of the increase has accelerated in the ninth year just past (this is being written on Jan. 1, 2010), a modest 24.8% increase from Dec. 31, 2008. Silver, my favorite current pick among precious metals (and an industrial one also), has gone up a even more impressive amount, i.e., 49%, in one year! So, Messrs. "Bespoke Group" and your benighted brethren, wake up and smell the coffee, or if you continue to believe that one month's performance is terribly significant in the face of 9 years of consistently high returns, then knock yourselves out and load up on Citigroup Bank, B of A., Fannie Mae, Freddie Mac, AIG and other assorted "gems" so dear to your dark hearts. If you elect to continue to pursue zombie investments like the money center banks and thunderstruck financials teetering on the edge of insolvency (even with the showering of taxpayer funding in a forlorn effort to stem the tide of the markets), then I have a wonderful bridge to sell you in Brooklyn, N.Y.

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.

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.

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.

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.

Rising Skepticism in Gold

Dr. Duru, you are just not paying attention. Or, you are a dupe of the moneyed elite banksters and their enablers in Washington, D.C. Either way, you are woefully misled and are misleading others.

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.

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 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.

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.

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.