bowman711

U.K. Toxic Bank Plan: More Gains For Gold

I don't know what the amount of 'toxic loans' are in the U.K., but I was wondering if there are, say $800 billion in toxic loans, and the government 'covers' the loans with a $390 billion program, how is that inflationary? it would seem to me that $100 billion in deflation covered by $50 billion in inflation would be merely half as deflationary.

The International Gold Rush: Bulls May Soon Be Rewarded

If Congress passing (and the President saying he will sign) what some say is the biggest (deficit) spending package since the New Deal moves gold down, what on earth will it take to make it move up? A nuclear bomb over some U.S. city?

I don't think you can blame such contra-economic behavior on gold's 'summer doldrums.'

Buying Gold for Oil Like George Soros

I would say that $145+ oil more accurately reflects the 'new economy' demand for oil and the debasing of the dollar (inflation) than does gold under $1,000/oz. It is well documented that gold is being artificially kept low. In the last reporting period, for example, every single open interest long position was matched by a naked short position by someone (or a group of the bullion banks).

When dollars are created by fiat, each dollar is reduced in value. Likewise, when gold is 'created' by naked shorts, each real ounce of gold is devalued.

If you have an economy made up of just 1,000 oz of gold, and another 1,000 oz is 'created' by naked shorting gold (creating a contract for gold that does not exist), you now have on paper 2,000 oz of gold, but still only 1,000 oz of real gold. So, the 'price' of gold is effectively cut in half.

Short Term Warning for Gold Bugs

I would say that a far bigger problem for gold is that the eight biggest bullion banks open interest is short by over 80%. The '8 or less' traders in gold currently hold 81.6% of the entire short position on the Comex. [For silver, it's 78.2% short.] It is hard for gold to go up when it is negatively controled by so few traders. My guess is that they are working with the government to make the dollar seem better than it is. Since they don't control oil, it has gone up to more accurately reflect the flood of dollars through the Fed over the past six months.

Gold as an Investment? Think Again

I wonder what gold will look like after the election and all the 'smoke and mirrors' are cleared from the many different 'numbers' that have been producing up movement in equities?

$200 Oil, $2000 Gold?

Since others are giving their recommendations for stocks for this new portfolio, I agree with Pengrowth Energy (PGH). I would suggest, for a longer-term investment, that you consider Oilsands Quest (BQI). As I write this, the last trade was at $4.64 - but several independent analysts who have written on the company say it has $24-$32 per share proven reserves. Also, if there is ever any kind of serious disruption in the world oil supply, owning shares in a company with huge reserves a couple hundred miles north of the border would be highly desirable.

Peak Oil, Gold and the U.S. Dollar

I would submit that many of the Canadian Energy Trusts are a good oil investment right now. For example, Pengrowth Energy Trust (PGH) has gone from under $17 to over $19 since February 1 . . . as well as paying $225 dividend per 1000 shares EVERY month! That's an annual 14.2%, not including any capital gains. And, it is comforting to know that even if the stock goes down $1/share, it takes less than five months of dividends to earn it back.

This is just one example of many Canadian Energy Trusts. Take your pick from them!