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!

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!

Will the Report on Iran's Nuclear Program Suspension Affect the Price of Gold?

All is fine and good with the exception that Ron Paul is not running on the Libertarian ticket.

HUI and Gold Price: Best Future Return Likely In Junior Miners

Well thought out Mr. Tan! I agree completely with your take on the benefits of owning large cap miners. That view is reinforced every time a large miner pays a premium during takeovers of a junior.

Time May Be Right for Entering Gold and Silver Positions

I think you are right on this one Andy. If you watch a basketfull of gold stocks that have good fundamentals it becomes fairly clear when the big players are dumping. Set some lowball buys at prices 10-20% below market and sit back and wait. Many times these large players will unload large amounts of stock on low volume and your order will be filled at a nice discount. I might however expand your list of viable juniors to include Miramar and Gammon Lakes as well. Both stocks are poised for huge upswings in the coming months.