Why you should own gold. Historically, Gold has been a safe haven in distressed times, during high inflation times, at times when there was distrust of the financial system, and during depressions. Any of this sound familiar? This time will be no different. Recently, gold has been under pressure as hedge funds have scrambled to raise cash unfortunately most hedge funds facing redemptions have had to sell what ever was liquid. And well Gold is liquid and has performed very well relatively so it has been a major source of cash. It isn't that they want to sell it they have had to sell it...
urg Kiener, CEO of Swiss Asia Capital, told CNBC this morning that the flight from paper currencies as a result of global interest rate cuts will lead to a doubling in the price of gold within a short period, as demand for physical precious metals outstrips supply, causing paper contracts on gold to default.
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
"Our pick to profit from a McCain-Palin victory in November is the SPDR Gold Trust (NYSE: GLD), an exchange-traded fund that is designed to reflect the performance of the price of gold bullion," explains Nate Pile, editor of Nate's Notes.
"We would buy gold in order to hedge ourselves against what we expect would be a heightened sense of uncertainty th
Gold's demand is being negatively affected this year by lack of jewelry demand. One institute says jewelry demand was down over 25% in Q2 2008, and this might actually worsen. Since jewelry is still about 70% of gold demand, while investment (coins at your local dealer) is still less than 20% (industrial and dental use make up the difference), the risk to gold bugs from the consumer is far greater than the risk to the dollar, which is also accelerating vs. other commodities at quite a rapid pace. This year, Gold's only strength has been market fear, which seems at a current maximum rig...
This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.
Based on their campaign promises and party platforms
The Dow suffered its biggest one-day point drop in history (although not even close on a percentage loss basis) as investors moved out of stocks into tradition safe havens such as Treasuries and gold (GLD). The failure of Congress to approve the $700B bailout package stunned investors as lawmakers worked through the weekend and practically around the clock to put together a plan that was widely expected to pass. The Senate will return Wednesday night while the House meets again this Thursday following the Jewish New Ye
With no signs of relief from the latest round of the ongoing financial crisis and global equity market meltdown this week, the accompanying five-day chart highlights a stock and some funds registering impressive gains in the face of massive losses in former blue chips and mega-cap stocks such as AIG. Thanks to the biggest one-day gain ever for gold today, SPDR Gold Shares (GLD) lead the gainers with an advance exceeding 15% over the last five days. As investors flee to traditional safe havens such as U.S. Treasury Bon
With the certain hyper inflationary period we are entering and the fact that oil will be spiking soon I would say that GLD is a safe bet for the long run. When the countries that lend us money stop and push our treasury notes into the market (for example China has approximately 500 Billion) we will see even more degredation of the dollar. In fact I believe by the time the dust settles the dollar will lose so much value that we will see inflation similar to what Turkey experienced in the 90s. When you buy a car and it is an appreciating asset due to inflation, well that is when we are l
The accompanying three-month chart illustrates a steadily strengthening US Dollar (UUP) along with a broad-based meltdown in the prices of commodities. The U.S. Oil (USO) and Natural Gas (UNG) Funds are down over 20% and 40%, respectively, while SPDR Gold Shares (GLD) and PowerShares DB Agricultural Commodities (DBA) are both down over 10% in the last three months. The correction in commodities reflects concerns over a global economic slowdown, a strengthening U.S. Dollar (with the Euro slipping below the $1.40 mark), and a drastic run-up in
Top 5 Companies by Trailing 52-Week Change Top 5 Companies by Market Cap
The accompanying tables present an overview and statistics for a Global Metal and Mineral Mining Index of 78 companies with market caps over $1 billion US Dollars. All companies in this index must derive the majority of their revenues from the following activities: the exploration, mining, extraction, processing, and sale of all types of preciou
You know there is something wrong when financial commentators are forced into becoming weathermen.
During the better part of this new century, we have dealt with tightness in oil supplies and dire warnings of woe that would befall us should a hurricane get loose in the Gulf of Mexico. During this same period, we have been bombarded by higher costs across the full spectrum of items that are considered to be staples of living the in United States. Yet officials and media pundits have stubbornly insisted that inflation is ‘contained’ or recently that it ‘will cool next year’. Common sense dicta
When I wrote Part I and sent it off for posting, I didn't realize that the Wall Street Journal's "Heard on the Street" column was going to help advance my proposition.
In this article titled, "Miner's Run Seems Over" (which is another way of saying "Mining Stocks are Dead") someone named Arindam Nag was adding to the pessimism and negativism about mining stocks (forgive the pun, but he or she was "Nagging").
There are many reasons to buy gold. This is just another one. Consider the increasing pressure on the US Government to bail out FRE and FNM. Bailing out one, or the other will put significant downward pressure on the US$. A weak dollar supports a higher gold price. Consider Bill Gross's comments.
Thinking of investing in finacial stocks. Consider Bil Gross's comments first.
Bond manager Bill Gross wants to spread the bailout wealth. Gross says in a commentary posted on the Pimco Web site Thursday that the government must “open up the balance sheet of the U.S. Tr
Where is the Smart Money??
- Where is the Smart Money??
We have recently been focusing on the rapid downward spiral in prices and have had some very good discussion. In my quest t...
Trading exit strategy
- The true skill comes into play with the exits. Knowing when to take a loss and when to hang on to your profits. “ Know when to hold them and know whe...
DELEVERAGING OR DEFLATION??
- DELEVERAGING OR DEFLATION??
So many people are confusing deleveraging with deflation. Lets go back to Jim Rogers fundamental discussion on oil. He sim...
Looking for the bottom?....Keep looking.
- Why you should own gold. Historically, Gold has been a safe haven in distressed times, during high inflation times, at times when there was distrust o...
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