We woke up this morning to a “new pricing structure” in the precious metals. But what has been the response to our “new pricing structure”? Dealers across the US have sold out of many Silver categories and the premiums have risen sharply. The premiums have risen just as fast as the paper markets took the price down. You will still pay... read more
During the recent, massive slaughter in the (paper) gold market, investors have been bombarded with a million-and-one “explanations” by the mainstream media as to why people are “fleeing gold”. The problem is that not one of them is consistent with the known facts.
It has been widely reported that read more
With the financial experts claiming, some gleefully, that gold has "lost its safe haven status" in the aftermath of its biggest tumble in 30 years, many commentators thought (hoped?) that the dramatic price drop would steer people away from gold ownership. To my eyes, the past week has all the earmarks of a high-gloss propaganda campaign complete with well-placed anti-gold stories in the medi... read more
In many respects ETFs like the SPDR Gold Trust ETF (GLD) and iShares Silver Trust ETF (SLV) should never have been created in the first place. The gold mining industry was a big fan of these ETFs as it sought to make owning gold available to the masses. My thinking is that the only way to invest in gold and silver is to go buy some coins, bars or jewelry. Gold or silver is to be bought and forg... read more
Gold prices climbed in New York on signs that demand is rebounding among consumers and investors.
Gold retail sales tripled across China from April 15 to April 16, the China Gold Association said. In India, demand climbed to the highest this year, according to the All India Gems & Jewelle... read more
With the recent plunge in gold prices, there is a flurry of articles discussing the nature of the gold bubble, and knocking it and other precious metals as investment options. Specifically, Paul Krugman writes in an article entitled "Gold Does Not Glitter," publis... read more
Were one restricted to watching just the paper market spots prices for precious metals, one might assume that there is major panic selling of gold and silver around the world.
A few days ago gold saw its biggest drop in thirty years, and silver was right behind it, leaving many investors concerned that gold’s decade-long run-up was nearing its end.
With all of this selling you... read more
Lower gold prices have led to a rush to buy gold coins and bars globally. Value investors and store of wealth buyers are more than happy to exchange devaluing paper currencies for physical gold at these much cheaper prices.
It is ironic that manipulative selling by a large hedge fund or bullion bank may have ignited a mini gold rush globally.
US Mint data shows that a record 63,500 ounces... read more
Most investors understand well that gold can be used as a hedge against inflation based on gold performance during the Great Inflation of 1970s. However, few understand that gold is also a hedge against deflation.
Inflation vs. Deflation
In simple terms, inflation (rising prices) is a phenomenon when the supply of goods and services is unable to meet the aggregate demand. For example, if... read more
First, you must be clear why you are buying Gold. Sure, paper gains are nice to have but are only a side effect. The real reason is this (from one of my previous articles):
Any type of financial asset that has a counterparty – which is pretty much... read more
