I’m still boggled by the Fed’s June economic forecast, the one that led analysts to conclude the Fed would begin winding down QE3 this fall. Markets around the world, including the gold market, reacted so negatively to this news that Chairman Bernanke was forced to give reassurances that an end to QE3 was not imminent. This is a very…
Five Reasons the Fed Is Wrong About the Economy... AgainDetailsThis weekend’s NY Times article about Goldman Sachs cornering the aluminum warehousing market has generated heated speculation about the lending practices of big banks that warehouse gold. This matter draws great interest because such lending practices could lead to delivery obligations rising to levels significantly higher than gold stocks can support. Moreover, because these lending arrangements…
Why Is Gold Rallying?DetailsFed Chairman Ben Bernanke dissed gold in a Senate Banking Committee hearing yesterday. There’s nothing surprising in that — he’s stated his views on gold before. But it’s still interesting to take a look at what he said. “No one really understands gold prices,” said the Fed chairman with a seemingly straight face. Hmmm. There seem…
Why Does Ben Bernanke Hate Gold?DetailsI was in New York last week to meet with reporters who cover the gold market. Twice I was asked about the “doom and gloom” messages commonly used to sell physical gold. I have two thoughts on that question. Gold sellers know that many of their most reliable buyers view gold as the only secure…
Doom, Gloom and GoldDetailsI’ve promised to explain why I think gold is on the verge of another bull run. As I’ve said in my post On Gold and Precious Metals, I’m not in the business of making short-term predictions of gold prices. I consider making short-term price predictions to be a fool’s errand because price movements are so dependent…
Six Reasons Gold Is Set for a New Bull RunDetailsRead Part I Read Part II I’ll start by summarizing my last post about gold’s mid-April loss of $200+, then address the cause of another $200 an ounce loss in mid-June. What new information did the market learn that warranted a $200+ hit in April? Did the market discover that the world economy was finally emerging…
The Case for Buying Gold, Despite Market Conditions- Part IIIDetailsRead Part I I concluded my last post by describing how the world’s largest purveyor of paper gold, SPDR Gold, sold more paper gold between December 2012 and June 2013 than it had accumulated over the previous four years. In fact, SPDR Gold sold more paper gold in those seven months than the physical gold…
The Case for Buying Gold, Despite Market Conditions- Part IIDetailsThis is the first in a series of posts in which I’ll make the case for why, even in these turbulent markets conditions, you should be considering buying physical gold. By physical gold I mean gold coins and bars as opposed to paper gold sold by exchange-trade funds, or ETFs. Your very first question might well…
The Case for Buying Gold, Despite Market Conditions- Part IDetailsI’m starting this blog during interesting and often confusing times for gold buyers and those considering the purchase of precious metals. My goal is to clear up that confusion by sorting through what’s happening in the gold market, explaining why it’s happening and what is likely to happen. I take a mid- to long-term perspective…
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