KBowen7736

Wary of the New Gold Rush

" After all, gold is nothing more than a commodity as "precious" as it is. "

Did it ever occur to you that if gold was not a monetary asset then why do Central Banks around the world bother with it? You should study a bit of history about how our country transitioned into paper currency from the days of gold minted coins and bags of gold dust being used as an exchange medium. You will quickly see that gold was always held at the bank in reserve to redeem any paper that was exchanged.

Fool's Gold (Part 2)

The author seems to ignore the basic mechanics of a gold/silver backed currency system. The concept is simple. Any paper currency to be issued is backed by a set amount of gold/silver and therefore excess fiat cannot be produced. Fast forward to where we are now with hoards of fiat being produced with no backing. It is pretty simple thinking in my book to correlate the amount of fiat to the amount of gold backing. What gives the author the right to disregard thousands of years of various civilizations and their respective monetary systems. The only reason why the US has been able to abuse this age old system is because it's credit rating and it ablility to repay was never in question. That is now not the case hence the recent rise in golds price. The same thing happened in the late 70's under the Carter administration. The world lost faith in the US dollar and abandoned it in mass. Only the raising of interest rates and a righting of the federal budget avoided a further dollar decline.
Attempting to detach this basic mechanism from what is happening today is foolishness. The author produced no relavent proof and, in fact, drew many unsubstantiated conclusions. Besides a restatement of the obvious investors goal of buy low....sell high. I am not quite sure why I just wasted the last 15 minutes reading this rubbish. I am glad I am not paying his advisory fees!

Has Gold Been Manipulated?

"But delivery is not the only way a commodity contract obligation can be offset. Before a delivery notice is tendered, a futures buyer can sell his/her contract at the current market pirce and realize his/her profit or loss in cash.

Historically, only 2-3% of futures contracts are actually settled by delivery. The vast majority are closed out prior to the delivery period by open market transactions. That includes commercial and speculative traders."

My point exactly! Herein lies the vehicle for manipulation if covering funds are limitless and the physical metal is never transacted.

Has Gold Been Manipulated?

"The question of the government's current infusions constituting a "manipulation" is a separate issue and not germane."

Of course governmental monetary infusion is germane to the gold price. The gold price versus the dollar is a key indicator of it's health and is therefore subject to manipulation to sustain the appearance that there is still the same value of worth. That is the poison that comes with having your currency be the world's reserve.
These gold contracts are sold short on the COMEX without actually borrowing the "real" metal. Then they are settled in cash. You let me print enough shares of any company and let me sell them on the open market with malice and I can guarantee you I will be able to take that share price exactly where I want it! And if it takes a few hundred million of TARP money to settle the postion after the downward market damage is done then so be it.

Financial Times Exaggerates Central Bank Losses from Gold Sales

This guy needs to change out whats in the pipe he is smoking. Attempting to correlate the rise in gold price concurrent to European sales with a possible rise in the dollar value when the world decides to dump the dollar is idiocy. Where do they pull these sagesfrom?

Is the GLD ETF Really Worth Its Metal?

The mere fact that these "GLD storage issues" have been floating around unanswered for a few years now, having been raised by some of the most influential hard money brokers, speaks volumes. The silence by an ongoing business concerning the ethics and the potential ruination of their business model is deafening. The answer to everybody's concern is as obvious as the nose on your face. Be warned!

Soaring Silver, Stalling Gold

Not sure what to say besides thanks for the info on Boxing Day. Not much else there to pick over!

Time to Switch Out of Freeport-McMoRan

With Copper falling to a a buck and a half what would one expect from cash flows coming from a company that does nothing but produce copper? The reason you should have been buying Freeport is because of their mines, reserves and general financial health. A severe drop in dividends could have been expected by anyone picking a stock and should have been anticipated as "the" entry point if you assume that inflation is going to kick in next quarter. I congradulate FCX management for making the prudent decisions to live for another day! The story won't be much different with any other base metal miner in their class

Gold Bugs Beware

"The reflationary trade will likely result in gold prices moving up at some point in the future, but outperforming equities? I don't think so"

Equities, after adjusting for real inflation and not the governments BS, are way behind gold. Even at this point with massive forced selling in precious metals anything, the price still remains above the buy and hold level for the DOW if pick a point some 10-15 years ago.

The principle fallacy in your argument is that you treat gold as a commodity not unlike corn or hog bellies. You have heard it before, gold has always held a monetary function in the world's economic system and will continue to do so when the fiat currencies fall apart.

You also rest your arguments on the current price of treasuries. The repatriation of dollars and panic buying of treasuries from foreigners will come to an end when they realize that a US debt default is a real possibility. The fate of the US as a soveriegn nation rests in the hands of the Chinese at this very moment. If you don't think this is so then you are truely nieve in calculating the largess of the US dollar. It has fallen apart and once the rest of the world decides on a plan to move away from a dollar based reserve system then all your chicks will come home to roost, as the Rev Wright would say!

Attention Gold Bugs: Hyperinflation or Deflation?

Mr. Caffee,

You do not inject 2.7 trillion dollars of funny money into the economy(just in the last few months) and not suffer inflation. The sheer size of these numbers are lost on the nieve. It has been proven true that the US dollar will go down in inflationary flames ala Paulson and Bernanke. Enjoy the low gas prices while you can and buy gold when you can. Do you honestly trust the powers that be to provide you with a fiat currency that holds its value? Get real.

Why I'm Re-Establishing My Gold Position

You sold last week and bought back on Monday..... So what you are saying is that your portfolio just lost 5%! If you seriously think the dollar is in a bottoming process then why are you buying gold? In your case, some things are better left untouched. The gold market needs a little more conviction and a little less gutlessness here and now!

Aurelian and Corriente Shares Down as Equador Suspends Mining Exploration

Negotiating a contract is fair game but all these exploration companies spend investors money based upon an anticipated taxation level by the host government due to historical data. If the country intended to charge higher taxes on a particular claim then that should have been known by all before the first dollar is spent.

That is how it should go and how it did not go in Ecuador. Thieving bastards is the correct term here!

Analyst: Leverage to Gold Price Should Benefit Companies

What kind of crack is this person smoking? $700 gold for 2010? What part of the structural US deficit does she see decreasing over the next three years? Maybe she is a covert agent for the Goldman crowd!

What Makes Golden Star an Explosive Gold Stock for 2008?

Mr. Bradford was not living in Ghana during the initial runnup but rather moved there when the start up began having problems. If it was just kids to worry about he could just as easily move back to North America and assign a competent local manager. Him buying stock though is a good sign I must admit. But keep in mind that the stock is being bought by the same crowd that ran the company into the ground in the first place. So please allow for my distrust of their timing savy. Still nothing is said of the derivative problems with this company. A major ankle weight to say the least.

What Makes Golden Star an Explosive Gold Stock for 2008?

Long way to go extrapolating from 70K per quarter(actual) to 500K per year. To base valuations upon being in that class when they never have been there is ludicrous. This company has NEVER made projections nor a profit. You did not even mention why Peter Bradford left. Nor did you mention what derivative position GSS has and the possible link between the former and latter questions. There may be a skim of profit to be made by front running some short covering on this dog but there are many other pure bred AKC specimens to invest your Kibbles and Bits.