Investors might want to add a little cash and some gold to their portfolio’s summer outfit. So say analysts at Bank of America Merrill Lynch, who are forecasting a grim summer for stocks this year. In other words, it might be wise to apply ample dollops of market-correction block in addition to any sunscreen you…
China has set up its largest gold-investment fund ever, expected to total 100 billion yuan ($16 billion), aiming to invest in mining projects in the region and enhance Chinese influence in global gold markets, local media reports said Wednesday. The “Silk Road Gold Fund” — led by the Shanghai Gold Exchange and others — is…
The public image of the United States Bullion Depository at Fort Knox, Kentucky, was cemented in the 1964 movie Goldfinger. The four-story vaults of shining chrome bar-encased gold, suspended staircases and vast interior are now classic Hollywood images of what our imaginations want Fort Knox to look like. The reality is very different. I’ve been…
This is the second in a series of posts making the “Main Street” case for gold. Read Part I I described in my last post how gold’s core value proposition is as wealth insurance. Here I’ll address why understanding gold as wealth insurance, rather than as just another investment vehicle, is crucial to understanding why gold…
In the weeks leading up to the debt crisis in 2011, gold rose $400 an ounce to hit its nominal all-time peak of $1,895. The 2011 debt crisis was the one in which we came so close to defaulting on our debts that rating agencies downgraded the nation’s credit score. But it was good for gold. As the crisis approached, gold rose spectacularly. After the crisis was resolved, it fell dramatically but retained a portion of the gain. Can we expect a similar pattern as the current debt limit standoff progresses?
Misconceptions about inflation, the falling dollar, and the relentless rise in federal budget deficits are skewing gold advocates’ arguments; however, a strong case can be made for the metal without resorting to these misconceptions.
The story lines I’ve seen in the last 48 hours in articles and opinion pieces about the recent rise in gold prices all support the notion that gold prices are being driven by a variety of short-term circumstances. This point-of-view reflects our failure to see the forest for the trees. While the specific events are transitory, the forces behind them are not.
It’s official. After breaking $1416, the new bull market is underway. So as an obituary for the recently interred bear, here is a look at how it stacked up against others of the recent past.
Read Part I In my last post I painted a dystopian future for the NFL as as a metaphor for our current banking system. You might take a look at it before proceeding. It can’t really be THAT bad. The stars of today’s too-big-to-fail (TBTF) banks are the elite financial product innovators and traders who earn huge…
A reader recently asked why I have an axe to grind for the big banks and how it has anything to do with gold. I’ll explain with a sports metaphor. Imagine the NFL in a dystopian future The major stars are in an unrestrained PED (performance-enhancing drug) arms race, raising their incomes to astronomical levels.…
In my last post, I described how Goldman Sachs used its position in aluminum warehousing to manipulate prices, and I posed the question, What can we learn about the gold market from Goldman’s actions in aluminum? Let’s look at SPDR Gold, the largest gold ETF in the world. At the center of SPDR Gold is HSBC,…
Two weeks ago I wrote about why gold is making a rally. In that post I discuss Goldman Sachs’s manipulation of prices in the aluminum market and what it tells us about how gold ETFs might be influencing the gold market in a similar way. The Goldman story is developing quickly so it’s worth taking another look…
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