Record lease rates are a primary driver for the near historic sell-off we have experienced but, when negative gold lease rates drop like they are now doing, the underlying tension in the supply and demand for gold as a source of liquidity collapses suggesting that the gold sell- off is likely coming to an end. That said, the next time we approach the previous thresholds..it will likely indicate that another gold-derived liquidity rubberband "breach" is imminent. [Let me explain further so you won't be "had" next time.] Words: 1054
Read More »Grandich vs. The "Three Stooges of Gold Forecasting" – Gartman, Nadler and Christian (+2K Views)
There’s no corner of the market more emotional than gold investing and, with bullion down more than 10% this month and 20% since early September, a war of words has broken out among North America’s most influential bullion investors. [For an understanding of who said what, please read on.] Words: 1315
Read More »Options Are a Gold Bull’s Better Play Than Owning High Beta Miners – Here’s Why (2K Views)
Whilst it is true, more often than not, that mining stocks move in the same direction as gold [and historically outperform that of the physical metal based on their better beta statistics] there are periods where this relationship does not hold. That is one of the reasons we currently have no interest in trading or investing in mining stocks. Why form a bullish view on gold and buy mining stocks based on this view, only to see gold rise and mining stocks fall? [Instead,]... our preferred strategy to optimize and maximize potential profits... is using options that are directed based on the price of gold with no other factors influencing their performance. [Let us explain why.] Words: 1235
Read More »The Implications of Coming "Peak Copper" for America – and the World! (+3K Views)
About two years ago, I looked through a BHP Billiton presentation which listed the number of years remaining for particular commodities. It was not an analysis of “peak” commodities as such, just a report on when various commodities would be completely, 100% depleted based on current usage rates and reserve assumptions. Copper in that report was determined to be scarcer than oil! [What does that mean for the future well-being of the U.S. - and the world?] Words: 1380
Read More »Are You One of the 99% Still Undecided About Owning Gold or Silver? Here’s What You Need to Know (3K Views)
Don’t own any gold or silver yet? New to the precious metals? Regardless whether you are a novice or seasoned veteran, the following seven points provide essential background information you can use to help determine whether the precious metals are right for you. Words:1311
Read More »Before Buying a Gold-related ETF Check Out These Alternatives (+4K Views)
There are many legitimate reasons to trade in gold and its derivatives. Gold has been proven time and time again to be an excellent “safe haven” investment, a holding that will appreciate in value during times of economic uncertainty. As such, gold may offer some valuable hedging and diversification benefits for a long-term portfolio. A number of exchange-traded products offering exposure to gold prices but not all gold ETFs are created equal. Here’s a quick rundown of factors to consider when making an investment in a gold ETF. Words: 1268
Read More »What Do Gold Measurements "Troy" Ounce and "Karat" Really Mean? (+10K Views)
You have no doubt read countless articles on the price of gold costing x dollars per "troy ounce” or perhaps just x dollars per "ounce" but the difference between the two measurements is significant. For that matter, what’s the difference between a 24 karat gold ring and an 18 karat gold ring? Let me explain. Words: 863
Read More »Sell Your Gold Now – and Buy Its Producers Instead – for Greater Returns
I believe that the masses are stumbling over themselves to buy gold when the far better value is to own the companies that control so much of the supply. I will probably be pilloried for this by the gold bugs, but I’m going to hold my ground: now is not the time to buy gold and it may be a great time to sell it. Words: 435
Read More »What's the Best Buy in Silver These Days?
I heard some disturbing reports about the silver supply last month that I felt every investor should know [about] and while precious metals are currently in correction mode, the long-term concerns with supply won’t disappear anytime soon. In an attempt to get a handle on the bullion market, I spoke to Andy Schectman of Miles Franklin, who has contacts that run deep in the industry. What he sees everyday might just compel you to count how many ounces you own. Words: 2020
Read More »Gold is Not an Investment – Gold is Money – and Here’s Why (+2K Views)
To fully understand gold's role in an investment portfolio, we need to adopt a new mindset, a gold mindset which is, simply put: gold is not a bad investment, and gold is not a good investment. Gold is not an investment at all - gold is money.
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