Showing posts with label Gold Futures. Show all posts
Showing posts with label Gold Futures. Show all posts
Monday, October 8, 2012
Gold in Largest Two-Day Drop Since August
For the second day in a row Gold prices fell on Monday, resulting in the biggest two-day drop since August.
The strange idea that a bunch of seasonal, part-time hiring in the latest jobs report, which may have pushed the unemployment rate down to a still hefty 7.8 percent, made some investors feel it will pressure the price of gold down because of a possible stronger economic recovery.
It's ludicrous of course, as not long after the end of December the temporary, part-time workers will be let go, and the unemployment numbers will shoot back up, if not before then.
After falling against the euro to a two-week low, the U.S. dollar finally managed to pull itself up, as some believe a stronger recovery than expected, which would push up the price of the U.S. dollar if it were true.
It isn't of course, but that's the faulty assumption being reported in the press; more than likely in hopes of attempting to make Obama look like he's doing better than he really is with the economy.
With weak earnings expected, it's hard to point to anything really positive about the U.S. economy, other than the probability the housing market may have bottomed out. In that case, even if it hasn't bottomed out, it is probably close to it, although that will have very little impact in the near term on the economy either way.
As long as Ben Bernanke and the Federal Reserve continue to create money out of thin air by acquiring $40 billion a month in mortgage-backed securities, the price of gold and silver, along with other hard assets, will continue to go up over time.
It's likely the Fed won't stop stimulating until unemployment drops below six percent, with some hint from some members of the Fed that it may not stop until it reaches 5.5 percent.
The December contract for gold futures in the U.S. settled at $1,775.70 an ounce, down $5.10, or 0.3 percent. It's up by over 13 percent in 2012 so far, the 12th year in a row it'll finish in positive territory.
For silver, it closed at $33.98 an ounce, down 1.4 percent. It has also dropped significantly over the last couple of days, down over 3 percent during that period.
Platinum closed at $1,689 an ounce, falling 0.9 percent. Palladium ended at $653.47 an ounce, a decline of 0.5 percent.
Tuesday, October 5, 2010
Jim Rogers Says Federal Reserve Printing Presses Guarantee $2,000 Gold
Super commodity investor Jim Rogers said he maintains his estimate on
gold prices of $2,000 an ounce, citing the misguided commitment by the
Federal Reserve to turn the printing presses on whenever they deem it
necessary.
Gold prices soared Tuesday on just those expectations, with gold futures
rising above $1,341 an ounce for December delivery on the Comex.
Rogers said in an interview with Maria Bartiromo, that “Bernanke’s going
to print more money. Mr. Bernanke doesn’t know what he’s doing ... He’s
been wrong, over and over. He and Mr. Geithner and Mr. Summers…have all
been dead wrong ... everything is worse instead of better ... The idea
that we continue to hold up dead companies and dead banks.”
Rogers gives a time-frame of five to ten years for his gold $2,000
prediction, which he has held to since making it in the early part of
2010.
Even though he remains a gold bull, he likes silver better because it's still 60 percent below its all-time high. Gold is of course breaking records almost every time it moves up lately.
Rogers says gold may level off some in the short term, but in the long term there can be no doubt “it is going much higher.”
Although Rogers is a U.S. dollar bear, he does see some temporary upside potential, only because the market is extremely pessimistic about its performance.
In the long term, for the same reasons gold will go up, Rogers see the dollar continuing to be debased because they refuse to stop quantitative easing, as they have nothing else in their power to do.
The best thing is for them to do absolutely nothing, but they refuse to do the right thing, and so gold, silver and other commodities will rise against the dollar, as well as a number of other currencies in the world, because their central banks are foolishly following the practices of the Federal Reserve.
gold prices of $2,000 an ounce, citing the misguided commitment by the
Federal Reserve to turn the printing presses on whenever they deem it
necessary.
Gold prices soared Tuesday on just those expectations, with gold futures
rising above $1,341 an ounce for December delivery on the Comex.
Rogers said in an interview with Maria Bartiromo, that “Bernanke’s going
to print more money. Mr. Bernanke doesn’t know what he’s doing ... He’s
been wrong, over and over. He and Mr. Geithner and Mr. Summers…have all
been dead wrong ... everything is worse instead of better ... The idea
that we continue to hold up dead companies and dead banks.”
Rogers gives a time-frame of five to ten years for his gold $2,000
prediction, which he has held to since making it in the early part of
2010.
Even though he remains a gold bull, he likes silver better because it's still 60 percent below its all-time high. Gold is of course breaking records almost every time it moves up lately.
Rogers says gold may level off some in the short term, but in the long term there can be no doubt “it is going much higher.”
Although Rogers is a U.S. dollar bear, he does see some temporary upside potential, only because the market is extremely pessimistic about its performance.
In the long term, for the same reasons gold will go up, Rogers see the dollar continuing to be debased because they refuse to stop quantitative easing, as they have nothing else in their power to do.
The best thing is for them to do absolutely nothing, but they refuse to do the right thing, and so gold, silver and other commodities will rise against the dollar, as well as a number of other currencies in the world, because their central banks are foolishly following the practices of the Federal Reserve.
Friday, September 24, 2010
Gold Breaks $1,300 Today For First Time, Eases Back
For the first time in history gold hit the $1,300 mark, although it has pulled back some in mid-day trading.
Gold futures broke $1,300 in New York, as the U.S. dollar continues to disintegrate and investors move to protect their capital.
In London bullion traded at an all-time high as well.
The dollar will lose against the euro for the week as the Federal Reserve reiterated they're poised to stimulate the economy once again when needed, even after the wasted $1.7 trillion which miserably failed, although we'll have to still pay it all back.
Gold has broken records in four out of five trading sessions this week, and there's little to stand in the way of that continuing, although there will be corrections along the way.
Gold futures for December delivery rose to $1,300 an ounce on the Comex in New York.
Gold futures broke $1,300 in New York, as the U.S. dollar continues to disintegrate and investors move to protect their capital.
In London bullion traded at an all-time high as well.
The dollar will lose against the euro for the week as the Federal Reserve reiterated they're poised to stimulate the economy once again when needed, even after the wasted $1.7 trillion which miserably failed, although we'll have to still pay it all back.
Gold has broken records in four out of five trading sessions this week, and there's little to stand in the way of that continuing, although there will be corrections along the way.
Gold futures for December delivery rose to $1,300 an ounce on the Comex in New York.
Wednesday, May 12, 2010
Agnico-Eagle (NYSE:AEM), IAMGOLD (NYSE:IAG), Barrick Gold (TSE:ABX) Down for Record Gold Day
Even though skyrocketing gold futures prices have been pulling the gold mining companies up with them, as investors seek safe haven for their capital, Agnico-Eagle (NYSE:AEM), IAMGOLD (NYSE:IAG) and Barrick Gold (TSE:ABX) were among the few gold miners on the wrong side of the movement, as all of them were down at the end of the trading session, although Agnico-Eagle did go to the positive side in electronic trading.
Gold miners had been sitting on the sidelines for a lot of the gold bull market, as they lagged behind gold futures for some time. That now seems to have changed, and we could see some nice moves now that it appears the sector has finally broken through.
Silver may be about to experience the same thing, as they were pulled upward by the sharp increase in gold prices, and when it breaks $20 an ounce, who knows what will happen if it suddenly takes off.
Most of this is in response to investor concerns over the consequences of bailing out irresponsible countries in Europe, and to a lesser degree, the inflation challenges now facing China, which measures could cut back on demand for raw materials.
Gold miners had been sitting on the sidelines for a lot of the gold bull market, as they lagged behind gold futures for some time. That now seems to have changed, and we could see some nice moves now that it appears the sector has finally broken through.
Silver may be about to experience the same thing, as they were pulled upward by the sharp increase in gold prices, and when it breaks $20 an ounce, who knows what will happen if it suddenly takes off.
Most of this is in response to investor concerns over the consequences of bailing out irresponsible countries in Europe, and to a lesser degree, the inflation challenges now facing China, which measures could cut back on demand for raw materials.
Tuesday, May 11, 2010
Gold Futures Close a Record Level of $1,220 An Ounce
Gold futures prices closed at a record price today of $1,220.30 an ounce, as growing fears on China's measures to combat inflation, and Europe's offering of just under $1 trillion to irresponsible governments to save their hides, has investors extremely jittery, and money is plowing into gold as a result, which brought the record gold futures close today.
A number of gold companies' share prices rose strongly as well with Allied Nevada Gold (AMEX:ANV) up well over 10 percent, Iamgold (NYSE: IAG) was up just under 10 percent, Jaguar Mining (NYSE:JAG) was just behind Iamgold at right under 10 percent as well, and Eldorado Gold (NYSE:EGO) was little over 9 percent, as just about the entire gold mining sector surged on the ongoing bad economic news and threats of inflation and nations defaulting.
News from the Commerce Department also revealed wholesale prices in the U.S. increased by 2.4 percent, and inventories rose, signifying sales are slowing down.
The mainstream financial press is reporting as if none of this is relevant or happening, but they'll soon find out, as always, that they're clueless in these matters, and gold will continue to soar in the light of these extraordinary economic circumstances threatening the wealth of people around the world.
A number of gold companies' share prices rose strongly as well with Allied Nevada Gold (AMEX:ANV) up well over 10 percent, Iamgold (NYSE: IAG) was up just under 10 percent, Jaguar Mining (NYSE:JAG) was just behind Iamgold at right under 10 percent as well, and Eldorado Gold (NYSE:EGO) was little over 9 percent, as just about the entire gold mining sector surged on the ongoing bad economic news and threats of inflation and nations defaulting.
News from the Commerce Department also revealed wholesale prices in the U.S. increased by 2.4 percent, and inventories rose, signifying sales are slowing down.
The mainstream financial press is reporting as if none of this is relevant or happening, but they'll soon find out, as always, that they're clueless in these matters, and gold will continue to soar in the light of these extraordinary economic circumstances threatening the wealth of people around the world.
Wednesday, March 24, 2010
Dollar Up, Commodities Down
Sovereign Debt Putting Downward Pressure on Commodities
The continuing sovereign debt fiasco in Europe has caused investors to look to the U.S. dollar and gold as their choice of currency for safety. And yes, gold is increasingly being thought of a form of currency again by people, as they begin to learn the inherent weakness in paper currencies.
An interesting part of all of this is as the crisis in Europe continues to unfold, it forces investors to decide whether to invest in gold or the U.S. dollar for a place of safety, and many times that has resulted in both going up in price on the same day, telling us people are thinking of both of the commodities as a place to be.
As far as commodities in general, they won't behave in a similar matter because of being denominated in U.S. dollars. When the dollar goes up, foreign investors tend to flee commodities for that reason.
It's not that the U.S. dollar is on a rebound or considered healthy in any way, it's that when you compare it to the euro especially, it makes it look robust in comparison. That's what's largely driving this reaction to commodities, and it will continue on in what should be some wild swings unrelated to supply and demand.
Portugal today was downgraded for its debt by Fitch Ratings, adding another element to the sovereign debt crisis in Europe, which seems to only be getting started as to the revelation on how deep it really is.
The continuing sovereign debt fiasco in Europe has caused investors to look to the U.S. dollar and gold as their choice of currency for safety. And yes, gold is increasingly being thought of a form of currency again by people, as they begin to learn the inherent weakness in paper currencies.
An interesting part of all of this is as the crisis in Europe continues to unfold, it forces investors to decide whether to invest in gold or the U.S. dollar for a place of safety, and many times that has resulted in both going up in price on the same day, telling us people are thinking of both of the commodities as a place to be.
As far as commodities in general, they won't behave in a similar matter because of being denominated in U.S. dollars. When the dollar goes up, foreign investors tend to flee commodities for that reason.
It's not that the U.S. dollar is on a rebound or considered healthy in any way, it's that when you compare it to the euro especially, it makes it look robust in comparison. That's what's largely driving this reaction to commodities, and it will continue on in what should be some wild swings unrelated to supply and demand.
Portugal today was downgraded for its debt by Fitch Ratings, adding another element to the sovereign debt crisis in Europe, which seems to only be getting started as to the revelation on how deep it really is.
Wednesday, March 17, 2010
Gold Responding to Interest Rates
One thing this super recession has taught people, and if nothing else, it could be a great silver lining to some of the pain people have gone through, and that is, interest rates exist for a certain purpose, and they aren't always safe, and there are other factors to consider when deciding whether to invest in something with interest rates, or consider another option.
Just look at municipal bonds as an example. Who would have used the term risk and municipal bonds in the same sentence three years ago? Now though, there are a growing number of financial advisers urging their clients to get out of them, as they are highly toxic at this time, and could be for years, depending on a lot of factors; like the financial health of the city issuing them and the project the money is being raised for.
So many people think when the Federal Reserve finally raises interest rates, people will flock out of gold and other commodities and get the higher returns offered through those types of investments. Most believe that won't happen until the latter part of 2010 at the earliest. The Federal Reserve held things right where they're at today concerning interest rates, and gold responded in a nice upward movement.
Anyway, what are the potential consequences of interest rates going up for holders of gold? The real question will be how much more does the average investor on the street understand the fundamentals of gold as it relates to monetary policy and its effects on the economy. If they at least have a general understanding of that, there won't be much of a move out of gold, although the majority of holders continue to be seasoned or institutional investors. If the average person starts investing in gold, that will be a major factor in the overall impact on gold.
Another key element is the same question, but being directed toward institutional investors. Are they any more in the know than the average, individual investor? In many, if not most cases, they aren't. They are Keynesian's, even if they don't understand what that means, and they will operate based on certain assumptions that probably are no longer viable in the post-recession world, once there is a post-recession that is.
Inflation is going to be held off much longer. Money will eventually be released into the markets, and the pent-up demand is extraordinary, and we could see amazing surges in commodity prices as a result. Look at iron ore this year based on demand, and as far as globally, we're far from what could be called a recovery in any meaningful way.
Another big part of the puzzle is the bond market. Once that collapses, which it almost assuredly will, even more investors will pour money into commodities, especially gold. At that time all bets are off as to how high gold prices will go.
Once that happens, we will then finally enter into a possible gold bubble, but that's not here, and won't be until these other events line up.
Gold won't be going away any time soon as a solid investment and place of safety. I think we're really just getting started, and while exact timing and events could take some interesting turns and twists, we will ultimately arrive, and those positioned in gold will benefit greatly while protecting their wealth and spending power.
Just look at municipal bonds as an example. Who would have used the term risk and municipal bonds in the same sentence three years ago? Now though, there are a growing number of financial advisers urging their clients to get out of them, as they are highly toxic at this time, and could be for years, depending on a lot of factors; like the financial health of the city issuing them and the project the money is being raised for.
So many people think when the Federal Reserve finally raises interest rates, people will flock out of gold and other commodities and get the higher returns offered through those types of investments. Most believe that won't happen until the latter part of 2010 at the earliest. The Federal Reserve held things right where they're at today concerning interest rates, and gold responded in a nice upward movement.
Anyway, what are the potential consequences of interest rates going up for holders of gold? The real question will be how much more does the average investor on the street understand the fundamentals of gold as it relates to monetary policy and its effects on the economy. If they at least have a general understanding of that, there won't be much of a move out of gold, although the majority of holders continue to be seasoned or institutional investors. If the average person starts investing in gold, that will be a major factor in the overall impact on gold.
Another key element is the same question, but being directed toward institutional investors. Are they any more in the know than the average, individual investor? In many, if not most cases, they aren't. They are Keynesian's, even if they don't understand what that means, and they will operate based on certain assumptions that probably are no longer viable in the post-recession world, once there is a post-recession that is.
Inflation is going to be held off much longer. Money will eventually be released into the markets, and the pent-up demand is extraordinary, and we could see amazing surges in commodity prices as a result. Look at iron ore this year based on demand, and as far as globally, we're far from what could be called a recovery in any meaningful way.
Another big part of the puzzle is the bond market. Once that collapses, which it almost assuredly will, even more investors will pour money into commodities, especially gold. At that time all bets are off as to how high gold prices will go.
Once that happens, we will then finally enter into a possible gold bubble, but that's not here, and won't be until these other events line up.
Gold won't be going away any time soon as a solid investment and place of safety. I think we're really just getting started, and while exact timing and events could take some interesting turns and twists, we will ultimately arrive, and those positioned in gold will benefit greatly while protecting their wealth and spending power.
Monday, March 1, 2010
Insiders Buying Barrick Gold (NYSE:ABX)
Barrick Gold Insiders Buying
If the actions by some of Barrick Gold (NYSE:ABX) executives last week are an accurate measure, than there is a strong possibility they feel their company is undervalued and there is room for the share price to move up.
Two major company insiders bought shared in Barrick Gold last week, including CEO Aaron Regent and chairman of the board, Peter Munk.
Munk acquired 38,500 shares, while Regent acquired 25,000 shares. Munk bought at a little better price, paying $39.32 for his shares, while Regent ended up paying $39.64 a share.
Barrick Gold Insiders Buying
If the actions by some of Barrick Gold (NYSE:ABX) executives last week are an accurate measure, than there is a strong possibility they feel their company is undervalued and there is room for the share price to move up.
Two major company insiders bought shared in Barrick Gold last week, including CEO Aaron Regent and chairman of the board, Peter Munk.
Munk acquired 38,500 shares, while Regent acquired 25,000 shares. Munk bought at a little better price, paying $39.32 for his shares, while Regent ended up paying $39.64 a share.
Barrick Gold Insiders Buying
Friday, February 26, 2010
Eldorado Gold (NYSE:EGO) in Gold Bull Market
Eldorado Gold Bull Market
With holdings in a number of European, Asian and South American countries, Eldorado Gold (NYSE:EGO) looks like a good play in the ongoing gold bull market.
There is no doubt with recently released data from the Labor Department and Commerce Department of the United States that the recession is continuing on, and gold will continue to be one of the few reliable and predictable places to put your money in the mid-term.
Along with that, the Federal Reserve and Ben Bernanke refuse to stop their money printing press, and so inflation is inevitable, and along with the sovereign debt issues in a number of countries in the European Union (PIIGS), gold will continue to be a safety haven for some time to come.
Eldorado Gold (NYSE:EGO) is in a good position to take advantage of those realities and will perform well for investors.
Eldorado Gold Bull Market
With holdings in a number of European, Asian and South American countries, Eldorado Gold (NYSE:EGO) looks like a good play in the ongoing gold bull market.
There is no doubt with recently released data from the Labor Department and Commerce Department of the United States that the recession is continuing on, and gold will continue to be one of the few reliable and predictable places to put your money in the mid-term.
Along with that, the Federal Reserve and Ben Bernanke refuse to stop their money printing press, and so inflation is inevitable, and along with the sovereign debt issues in a number of countries in the European Union (PIIGS), gold will continue to be a safety haven for some time to come.
Eldorado Gold (NYSE:EGO) is in a good position to take advantage of those realities and will perform well for investors.
Eldorado Gold Bull Market
Thursday, February 25, 2010
Gold Rising 30% in 2010?
Gold Rising 30% in 2010
According to the London Market Bullion Association, gold could rise close to 30 percent in 2010, as continual concerns over central banks printing money, sovereign defaults, quantitative easing and outrageous government stimulus programs weigh on the minds of investors.
It's unknown what will happen if the British pound collapses, as a number of investment experts like Jim Rogers and Marc Faber are predicting, and that could cause gold prices to go through the roof as investors and consumers look for somewhere safe to place their money.
Now that the government stimulus programs have been proven to be mass failures, the growing realization we aren't close to being out of the recession yet is settling on people, and that will cause even more to move toward gold as a haven.
In the short term it doesn't look like any new gold mines are coming online either, making gold a possible rare commodity as funds continue to buy physical gold to back them up. That is another possible factor which could move gold prices higher in 2010 and beyond.
Gold Rising 30% in 2010
According to the London Market Bullion Association, gold could rise close to 30 percent in 2010, as continual concerns over central banks printing money, sovereign defaults, quantitative easing and outrageous government stimulus programs weigh on the minds of investors.
It's unknown what will happen if the British pound collapses, as a number of investment experts like Jim Rogers and Marc Faber are predicting, and that could cause gold prices to go through the roof as investors and consumers look for somewhere safe to place their money.
Now that the government stimulus programs have been proven to be mass failures, the growing realization we aren't close to being out of the recession yet is settling on people, and that will cause even more to move toward gold as a haven.
In the short term it doesn't look like any new gold mines are coming online either, making gold a possible rare commodity as funds continue to buy physical gold to back them up. That is another possible factor which could move gold prices higher in 2010 and beyond.
Gold Rising 30% in 2010
China Tightening and Gold Market
China Gold Market
Even though China is tightening their money supply some, according to the Far East managing director of the World Gold Council, Albert Cheng, it will have little effect on the gold market or gold demand..
The reasoning behind Cheng's assertion is the Chinese market doesn't have investment vehicles like exchange-traded funds, so they aren't a factor in that market.
Consequently, the Chinese market for gold is driven by retail investors and consumers, and the majority of them want to include gold as a part of their investment portfolio in order to maintain their wealth.
For China itself, they've been steadily increasing the amount of gold holding they have in the country, up to 1,054 tons now from the approximate 600 tons they had in 2003.
While they are getting a little more investment savvy and didn't bite at the offer from the IMF to acquire about 191.3 tons of gold, it is suspected they continue to buy behind the scenes.
China Gold Market
Even though China is tightening their money supply some, according to the Far East managing director of the World Gold Council, Albert Cheng, it will have little effect on the gold market or gold demand..
The reasoning behind Cheng's assertion is the Chinese market doesn't have investment vehicles like exchange-traded funds, so they aren't a factor in that market.
Consequently, the Chinese market for gold is driven by retail investors and consumers, and the majority of them want to include gold as a part of their investment portfolio in order to maintain their wealth.
For China itself, they've been steadily increasing the amount of gold holding they have in the country, up to 1,054 tons now from the approximate 600 tons they had in 2003.
While they are getting a little more investment savvy and didn't bite at the offer from the IMF to acquire about 191.3 tons of gold, it is suspected they continue to buy behind the scenes.
China Gold Market
David Einhorn: Gold and Government
David Einhorn on Gold
Speaking at the Value Investing Congress recently, David Einhorn of Greenlight Capital, revealed the reasons he felt gold was a solid investment into the future.
Looking at it from a slightly different point of view, Einhorn said in his opinion, gold does the best based on the fiscal policies being enacted. When the Federal Reserve and other central banks ramp up their printing presses, gold does well, when they deal with it like Paul Volcker did in the 1970s, gold does poorly. And obviously, we're not in a Volcker-like environment at this time.
Unless the government starts wising up and takes the right course of action, Einhorn said gold will do good for some time to come.
With the sovereign debt of a number of nations in serious trouble, and in danger of default, Einhorn looks at that and any currency crisis as markers that gold will do well in those circumstances too.
Taking into consideration the horrid economic policies of the Obama administration, gold has a bright and long future ahead of it for those investing in gold.
David Einhorn on Gold
Speaking at the Value Investing Congress recently, David Einhorn of Greenlight Capital, revealed the reasons he felt gold was a solid investment into the future.
Looking at it from a slightly different point of view, Einhorn said in his opinion, gold does the best based on the fiscal policies being enacted. When the Federal Reserve and other central banks ramp up their printing presses, gold does well, when they deal with it like Paul Volcker did in the 1970s, gold does poorly. And obviously, we're not in a Volcker-like environment at this time.
Unless the government starts wising up and takes the right course of action, Einhorn said gold will do good for some time to come.
With the sovereign debt of a number of nations in serious trouble, and in danger of default, Einhorn looks at that and any currency crisis as markers that gold will do well in those circumstances too.
Taking into consideration the horrid economic policies of the Obama administration, gold has a bright and long future ahead of it for those investing in gold.
David Einhorn on Gold
Why George Soros, Jim Rogers and John Paulson are Buying Gold
So why are George Soros, Jim Rogers and John Paulson buying gold?
These guys are experts in currencies, possibly more than any other investment vehicle, and the acquisition of gold means they believe gold will rise against the majority of currencies in the world, based on the extraordinary amount of stimulus money printed and thrown around by central banks around the globe.
While there are obvious other factors like the inevitable inflation and ongoing risk factors which continue to rise rather than abate, as witnessed by the Dubai debacle and sovereign wealth crisis in Europe.
The only question someone needs to ask themselves is if the currency they trade in will be worth more than gold in the foreseeable future. If not, guess which one wins out for the best investment choice?
Even if you don't understand all the particulars, when you see heavyweights like George Soros, Jim Rogers and John Paulson acquiring, increasing their positions and holding on to gold, you know they see something important, and part of what they see is mentioned above.
George Soros, Jim Rogers and John Paulson buying gold
These guys are experts in currencies, possibly more than any other investment vehicle, and the acquisition of gold means they believe gold will rise against the majority of currencies in the world, based on the extraordinary amount of stimulus money printed and thrown around by central banks around the globe.
While there are obvious other factors like the inevitable inflation and ongoing risk factors which continue to rise rather than abate, as witnessed by the Dubai debacle and sovereign wealth crisis in Europe.
The only question someone needs to ask themselves is if the currency they trade in will be worth more than gold in the foreseeable future. If not, guess which one wins out for the best investment choice?
Even if you don't understand all the particulars, when you see heavyweights like George Soros, Jim Rogers and John Paulson acquiring, increasing their positions and holding on to gold, you know they see something important, and part of what they see is mentioned above.
George Soros, Jim Rogers and John Paulson buying gold
Wednesday, February 17, 2010
Gold Bull Market Over?
Gold Bull Market
I find it hilarious when clueless people attempt to make assertions like those I've been hearing lately that the bull market in gold is over.
The primary ignorance of some of those making these assertions is that the recent increase in gold prices has been because of gold bugs, rather than market forces, or in this case: lack of force in the market.
For some reason, people seem to resent or reject the fact that gold performs strongly when adverse economic and world conditions are uncertain, and we have been in that situation for several years, and will continue to be for many more.
Anyone who asserts gold bugs are behind the run up in gold prices understands nothing about historical responses to tough economic circumstances, the extreme printing of money, and the inevitable inflation that follows.
Add to that the sovereign risk associated with a growing number of countries, along with rising inflation, and you have a perfect economic storm for the rise in gold prices to continue, and they will.
What about the so-called gold bubble some think we're in? There's no evidence of it, on the contrary, for the most part institutional investors are the primary investors in gold, and until the general population enters into the sector, there will not be, neither can there be, a gold bubble.
Gold has a great future over the next several years, and possibly longer, depending on the rate of inflation and how long it'll take to realize we are still in the middle of a recession.
Once that happens, we'll see gold surge even higher, and those positioned to take advantage of that should enjoy strong profits from gold investing for a number of years to come.
Gold Bull Market
I find it hilarious when clueless people attempt to make assertions like those I've been hearing lately that the bull market in gold is over.
The primary ignorance of some of those making these assertions is that the recent increase in gold prices has been because of gold bugs, rather than market forces, or in this case: lack of force in the market.
For some reason, people seem to resent or reject the fact that gold performs strongly when adverse economic and world conditions are uncertain, and we have been in that situation for several years, and will continue to be for many more.
Anyone who asserts gold bugs are behind the run up in gold prices understands nothing about historical responses to tough economic circumstances, the extreme printing of money, and the inevitable inflation that follows.
Add to that the sovereign risk associated with a growing number of countries, along with rising inflation, and you have a perfect economic storm for the rise in gold prices to continue, and they will.
What about the so-called gold bubble some think we're in? There's no evidence of it, on the contrary, for the most part institutional investors are the primary investors in gold, and until the general population enters into the sector, there will not be, neither can there be, a gold bubble.
Gold has a great future over the next several years, and possibly longer, depending on the rate of inflation and how long it'll take to realize we are still in the middle of a recession.
Once that happens, we'll see gold surge even higher, and those positioned to take advantage of that should enjoy strong profits from gold investing for a number of years to come.
Gold Bull Market
Gold Futures Explode Past $1,100 an Ounce
Gold futures prices surge
Gold futures shot up almost $30 an ounce. Gold for April delivery ended at $29.80 to finish the day at $1,119.80 an ounce, a gain of 2.7 percent for the session. It went as high a $1,121.90 an ounce during the day before pulling back.
Other metals did well too, as silver increased by 71 cents for March delivery, while copper rose 14 cents to $3.22 a pound.
Another factor helping commodities throughout the day was the news that manufacturing had increased at a quicker pace than expected, although that could largely be due to the replenishing of stockpiles rather than growth.
Either way, gold looks to take off again, with $1,125 being what is looked for for the next breakthrough needed.
Gold futures prices surge
Gold futures shot up almost $30 an ounce. Gold for April delivery ended at $29.80 to finish the day at $1,119.80 an ounce, a gain of 2.7 percent for the session. It went as high a $1,121.90 an ounce during the day before pulling back.
Other metals did well too, as silver increased by 71 cents for March delivery, while copper rose 14 cents to $3.22 a pound.
Another factor helping commodities throughout the day was the news that manufacturing had increased at a quicker pace than expected, although that could largely be due to the replenishing of stockpiles rather than growth.
Either way, gold looks to take off again, with $1,125 being what is looked for for the next breakthrough needed.
Gold futures prices surge
Tuesday, February 16, 2010
Gold Gains on Haven Investing
Gold Futures Prices Going Up
As the fiasco in Europe continues to expose the weak underside of the alleged economic recovery, investors are again shifting their assets to gold as a place of safety as unsurety as what to do about Greece and the potential domino effect it could have on other parts of Europe.
The euro has been a disaster during this time as well, and the U.S. dollar and whether it is weak or strong is being overwhelmed by safety concerns, making it less of a factor during these times, as far as it relates to the movement of gold prices.
Gold in London reached as high as $1,102.55 an ounce, the highest it has been since February 4.
Growing pressure for finance ministers in Europe to lay out exactly what they're going to do to help Greece other than assert that they're going to continues on, and I know they are worried about that, as anything could go wrong in these economic circumstances that include corruption and typical creative accounting which made the country and its sovereign debt in much better shape than it actually was and is.
Just a short time ago people were projecting a major pullback in gold prices, I think those projections can be tossed aside, as the Greek problem and other related economic issues aren't going to go away for a long time.
Gold is going to roar back to life, and should start its inevitable climb once again. It looks like this will be a support for gold futures prices for some time to come.
Gold Futures Prices Going Up
As the fiasco in Europe continues to expose the weak underside of the alleged economic recovery, investors are again shifting their assets to gold as a place of safety as unsurety as what to do about Greece and the potential domino effect it could have on other parts of Europe.
The euro has been a disaster during this time as well, and the U.S. dollar and whether it is weak or strong is being overwhelmed by safety concerns, making it less of a factor during these times, as far as it relates to the movement of gold prices.
Gold in London reached as high as $1,102.55 an ounce, the highest it has been since February 4.
Growing pressure for finance ministers in Europe to lay out exactly what they're going to do to help Greece other than assert that they're going to continues on, and I know they are worried about that, as anything could go wrong in these economic circumstances that include corruption and typical creative accounting which made the country and its sovereign debt in much better shape than it actually was and is.
Just a short time ago people were projecting a major pullback in gold prices, I think those projections can be tossed aside, as the Greek problem and other related economic issues aren't going to go away for a long time.
Gold is going to roar back to life, and should start its inevitable climb once again. It looks like this will be a support for gold futures prices for some time to come.
Gold Futures Prices Going Up
Friday, February 12, 2010
Gold Moving Up on Sovereign Risk
Gold and Sovereign Risk
Gold futures roared back to just under $1,100 as concerns over Greece and uncertainty coming out of Spain have overcome the usual move in the opposite direction of the dollar and gold took on a life of its own in response.
April delivery for gold increased by $18.40 to end the session at $1,094.70 an ounce on the Comex division of the New York Mercantile Exchange.
What all of this says when you come right down to it is gold is trading on risk alone during these days, and the other factors are largely being set aside until the Greek and European situation is cleared up.
With no easy or quick fixes, only announcements they're going to do this or that, this could be an extra catalyst to drive gold up which wasn't being looked at by many investors in gold.
Sovereign risk will from now on be considered a key part of the gold story, and that will definitely shore it up even more, no matter what happens with the U.S. dollar.
Unsurprisingly, silver futures also responded to the situation by rising in price, along with a number of other commodities in relationship to the same circumstances.
Gold and Sovereign Risk
Gold futures roared back to just under $1,100 as concerns over Greece and uncertainty coming out of Spain have overcome the usual move in the opposite direction of the dollar and gold took on a life of its own in response.
April delivery for gold increased by $18.40 to end the session at $1,094.70 an ounce on the Comex division of the New York Mercantile Exchange.
What all of this says when you come right down to it is gold is trading on risk alone during these days, and the other factors are largely being set aside until the Greek and European situation is cleared up.
With no easy or quick fixes, only announcements they're going to do this or that, this could be an extra catalyst to drive gold up which wasn't being looked at by many investors in gold.
Sovereign risk will from now on be considered a key part of the gold story, and that will definitely shore it up even more, no matter what happens with the U.S. dollar.
Unsurprisingly, silver futures also responded to the situation by rising in price, along with a number of other commodities in relationship to the same circumstances.
Gold and Sovereign Risk
Monday, February 8, 2010
Gold Futures Up $20 on Globex
Gold Futures Up
Monday morning found gold futures on Globex increasing as high as $20 an ounce, making a move based largely on the recent selloff was an overresponse to market conditions.
There was really no reason for the recent dip in gold, and so the markets are responding accordingly by starting the price of gold futures up again.
Some believe gold has found its bottom now and should resume its upwards climb, although that's uncertain, and sure to sputter up and down if indeed it does continue its price increase.
April delivery for gold reached as high as $1,073 on Globex on Monday morning in Asia, after shedding $65 on the last combined three sessions.
Uncertainty continues to influence gold futures prices as the emerging disaster for the euro continues concerning European sovereign debt.
Gold Futures Up
Monday morning found gold futures on Globex increasing as high as $20 an ounce, making a move based largely on the recent selloff was an overresponse to market conditions.
There was really no reason for the recent dip in gold, and so the markets are responding accordingly by starting the price of gold futures up again.
Some believe gold has found its bottom now and should resume its upwards climb, although that's uncertain, and sure to sputter up and down if indeed it does continue its price increase.
April delivery for gold reached as high as $1,073 on Globex on Monday morning in Asia, after shedding $65 on the last combined three sessions.
Uncertainty continues to influence gold futures prices as the emerging disaster for the euro continues concerning European sovereign debt.
Gold Futures Up
Tuesday, February 2, 2010
Marc Faber: Keep Gold in Your Portfolio
Marc Faber says keep gold in your portfolio
Marc Faber and others, in spite of a temporary surge in the value of the U.S. dollar, which put some downward pressure on gold in January 2010, still believe gold should be a part of everyone's investment portfolio.
Faber, while well-known for a number of things, recently grabbed the attention of the financial media by stating gold prices wouldn't drop below the $1,000 an ounce mark ever again.
There is no doubt the printing of money from central banks around the world is generating inflation, and it will increase going forward. That alone is a good enough reason to have gold in your investment portfolio.
Safety is another key factor, and many economists and experts are saying the rosy picture being presented by mainstream financial media is an illusion, and even the recent GDP figures are largely inflated and irrelevant because of one-off events; specifically the replenishing of inventory, which would have otherwise had us experience anemic growth of 2.2 percent.
The second half of 2010 is expected to slow down even more, suggesting gold has a good long-term upward climb before it ever settles down.
Significant corrections in gold prices should be viewed as buying opportunities and not a reason to sell.
Marc Faber says keep gold in your portfolio
Marc Faber and others, in spite of a temporary surge in the value of the U.S. dollar, which put some downward pressure on gold in January 2010, still believe gold should be a part of everyone's investment portfolio.
Faber, while well-known for a number of things, recently grabbed the attention of the financial media by stating gold prices wouldn't drop below the $1,000 an ounce mark ever again.
There is no doubt the printing of money from central banks around the world is generating inflation, and it will increase going forward. That alone is a good enough reason to have gold in your investment portfolio.
Safety is another key factor, and many economists and experts are saying the rosy picture being presented by mainstream financial media is an illusion, and even the recent GDP figures are largely inflated and irrelevant because of one-off events; specifically the replenishing of inventory, which would have otherwise had us experience anemic growth of 2.2 percent.
The second half of 2010 is expected to slow down even more, suggesting gold has a good long-term upward climb before it ever settles down.
Significant corrections in gold prices should be viewed as buying opportunities and not a reason to sell.
Marc Faber says keep gold in your portfolio
Gold Gains Most in Three Months
Gold rises to best daily performance in three months
Gold posted a 2 percent gain on Monday, the best daily increase in gold prices in three months, as a weak dollar helped drive gold prices up.
Oil moving up in price was also attributed to gold responding in such a strong fashion.
The last time gold moved up this much in a day was on November 3.
April delivery for gold futures rose by $21.20 to $1,105 an ounce on the Comex division of the New York Mercantile Exchange, equal to the 2 percent increase mentioned.
With inflation expected to pick up in 2010, it's sure gold will continue on its upwards price trend, even though the U.S. dollar has recently strengthened. While the dollar is expected to resume that performance on a temporary basis, it's unlikely to continue for a long period of time, and gold will again be the focus for investors looking for safety and an inflation hedge.
There should be some price swings in gold based upon these two scenarios playing out over the months.
Gold rises to best daily performance in three months
Gold posted a 2 percent gain on Monday, the best daily increase in gold prices in three months, as a weak dollar helped drive gold prices up.
Oil moving up in price was also attributed to gold responding in such a strong fashion.
The last time gold moved up this much in a day was on November 3.
April delivery for gold futures rose by $21.20 to $1,105 an ounce on the Comex division of the New York Mercantile Exchange, equal to the 2 percent increase mentioned.
With inflation expected to pick up in 2010, it's sure gold will continue on its upwards price trend, even though the U.S. dollar has recently strengthened. While the dollar is expected to resume that performance on a temporary basis, it's unlikely to continue for a long period of time, and gold will again be the focus for investors looking for safety and an inflation hedge.
There should be some price swings in gold based upon these two scenarios playing out over the months.
Gold rises to best daily performance in three months
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