There's no way to sugarcoat the dismal performance of the precious metals in recent months. But a revisitation of the reasons for owning them reveals no cracks in the underlying thesis for doing so.
In fact, there are a number of new compelling developments arguing that the long heartbreak for gold and silver holders will soon be over.
Reuters) - Gold extended gains into a second session on Thursday, as Asian stock markets fell sharply and the U.S dollar fell to four-month lows on persistent uncertainty over the Federal Reserve's massive stimulus programme.
Investors were still weighing the Bank of Japan's decision on Tuesday to leave its policies unchanged and Standard & Poor's Monday upgrade of the U.S. credit outloo... read more
Prices display the intersection between the two sides to every trade.
Often we value whether we should make a purchase, trade or sell something based on prices, but, as our readers know, there is a vast difference between price and value.
For more on the difference between price and value, see: The Hidde... read more
Nothing like the smell of a fresh Eurozone (thank you Greece!) crisis in the air, to remind everyone that in an insolvent world, where every counterparty is suddenly once again suspect (and collateral-free), there is only one asset class that has no counterparty risk (although the distinction between paper and physical gold is still a far too complicated lesson for most) - gold read more
With gold and silver rallying on the heels of continued US dollar weakness, today James Turk told King World News that we may see an explosion in the price of gold and silver this summer that will literally shock the world and catch professionals and private investors totally by surprise. Turk cited a remarkable advance in the price of gold and silver three decades ago which m... read more
Watching from afar as inflation in Argentina grows worse – officially 11%, realistically around 25% – it's tempting to think of the scourge of fiat money as a modern phenomenon. If only FDR hadn't confiscated US citizens' gold to usher in the beginning of the current era of paper money, we could be living in a precious metals paradise, as our ancestors before us did.
That narrative, of c... read more
It’s one of the hardest habits to break.
We begin pledging our allegiance to the state before we even know what that means. We learn to sing bombastic, patriotic songs of praise at an age when we don’t understand the vocabulary of the lyrics.
And after years of repetition and social reinforcement, the idealistic devotion to country becomes profoundly ingrained in our personalities.... read more
Precious Metals Weekly Market Wrap
Precious metals showed strength early in the week as the gold price spent most of its time above the important $1,400 an ounce level and silver stayed above the key $22.50 an ounce mark, but that all changed on Friday with the release of the U.S. labor report.
The not-too-hot, not-too-cold take on the jobs market signaled that Federal Re... read more
The war against gold continues. Last week, New York University professor, Nouriel Roubini, published another article with singular aggressiveness, in which he said that by 2015, the price of gold will collapse to a thousand dollars an ounce.
Roubini... read more
Pacific Investment Management Co., the world’s largest active bond manager, said investors should cut risk amid a more than 60 percent chance of a global recession in the next three to five years.
Global growth will slow, keeping inflation in check, and “economic volatility” will increase, Saumil Parikh, a portfolio manager at Newport Beach, California-based Pimco, said in a report bei... read more
