petersl

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.

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.

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.

Gold's Divergence Between the Paper and Physical Markets

The prognostication that gold prices will descend as rapidly and as drastically as Kevin Depew predicts, is a possibility, no doubt. Whether it is a probability is open to severe question. If there is deflation in the wind, the response of central banks and governments who control currency policy for their respective polities, is to inflate or die. Weimar is too distant and too German a phenomenon to bother the priests in the temple, to do otherwise. This being the case, which I feel it is, precious metals are a good refuge. 5% in the metal in one's portfolio is a good place to begin. We are being handed a great opportunity to purchase some gold and silver at what will appear in the future to be bargain basement rates. I think that the downdraft in the prices, however, is still underway, so choosing an entry point will not be without its risks.

Headwinds for Gold?

Ah yes, your thesis is absolutely correct, that gold prices are in large part dependent on the world fiat currency picture i.e., that if all currencies are strengthened by governmental policies (raising short term rates, reducing money supply), and weakened by the opposite. However, to what extent do you believe that the central banks of this world will use that lever in the face of a declining employment picture? The numbers released in the job report on Friday understate the case, see John Mauldin's piece dated June 6, 2008, entitled, "When Bubbles Collide."

Time to Buy Gold

Ditto. It is interesting to note the bubblevision "gurus" and "money honies" on CNBC that tout financials and forecast the impending doom that they almost uniformly predict will befall the commodities markets. Their alleged fondness for scraps of financial legerdemain known as derivatives and those that purvey them (Bear Stearns, Countrywide, Citigroup, Lehman Bros., you know the rest), is legendary. These "gurus" would have you dump your stocks that have a connection to reality (tangible assets, commodity based), and acquire in phalanx fashion, rube "fools gold" in the form of their overpriced, understated danger laden, paper. Well, you can fool some of the people all of the time, but not all of the people all of the time.

The 'Death of Gold' Revisited

The major flaw in the reasoning of this writer is to largely ignore the role of the vast dollar decline, not just against other currencies, but against the things that people around the globe use every day. This list includes, not necessarily in order of importance, oil, food, metals, building materials and all sorts of tangible goods, that people require for their standard of living. As the peoples of the undeveloped but rapidly developing world seek a better life, these things will command a premium. To the contrary, financial assets like shares of Citigroup, Countrywide Financial, the whole array of derivative investment paper, is not as appetizing to consume. This whole trend is absent from the writer's analysis. I agree that gold and other precious metals are in a temporary decline, but if you examine the charts from the mid 1970's until the present, you can readily see that the dollar index has convincingly broken through the 80 level to the downside, and the better view is that this is not a temporary phenomenon, as much as general consensus would have you believe otherwise. For those who are interested in learning more about the role of secular bull markets in commodities, one could profit handsomely from a thorough reading of Jm Rogers' "Hot Commodities," which though an unfortunate choice of words for a title, has demonsrated over the past two years, Rogers' prescience.