Saturday , 2 November 2024

Lorimer Wilson

My Case Against the Case Against The Case Against Gold (+2K Views)

All thing considered, it seems clear that the long-term real returns of gold have been poor (compared to stocks and bonds), and I see no reason to expect long-term price appreciation for gold to be above inflation. In fact, as with any non-income producing asset, it would be unreasonable to expect gold to provide significant positive real returns over an indefinite period of time...I would argue that buying gold is a short-term gamble that is completely dependent on the unpredictable vagaries of perception, market psychology and the "greater fool" theory...While it is true that gold can be a good short-term trade and offer superior returns over shorter periods (as has been the case in recent years) I believe that stocks will continue to substantially outperform gold over time. [Let me explain these less than popular conclusions further.] Words: 1258

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The Case Against the Case Against Gold

In all my years of writing about gold, I have rarely referenced specific gold bear articles or posts, but I found myself compelled to break with tradition after reading a recent piece from Zacks Investment Research called The Case Against Gold In Today's Market. My response below mainly focuses on noting how the gold bear arguments themselves demonstrate that gold is not nearly as different from other assets as the Zacks pieces suggests.

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Nickel: Demand Strong, Supply Diversified & Prices Stable

While best known for its use in the five cent coin, nickel has far more strategic uses. Nickel can be alloyed with other metals to create truly extraordinary materials - such as stainless steel which now accounts for more than half of all nickel consumed. China’s stainless steel consumption has increased 1625% in the last 10 years and is now the largest demand driver for nickel worldwide accounting for 40% of global totals. There’s still a lot more room for growth in the industry and nickel’s diversified supply is expected to keep prices stable, so the savvy investor should look for low cost nickel projects in safe jurisdictions. Check out the infographic below for more insights.

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October Will Be a Challenging Month for Investors for These 6 Reasons

October has a well-deserved reputation of being a volatile month for the market. Historically, it is the second-worst performing month after September, and it has had its share of market meltdowns (1929, 1987). I don't foresee anything that dramatic this October after the long rally. However, I think it is going to be a challenging month for investors for a variety of reasons. [Below are 10 reasons to be wary this October in particular.] Words: 498

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Egon von Greyerz: Gold & Silver Off to the Races – to $4,500+ & $100+ Each – Here’s Why (+3K Views)

The closing of the gold window back in August 1971 has led governments worldwide to create endless amounts of worthless paper money and the resulting credit bubble has created a world debt exposure of over US$ 1 quadrillion (including derivatives). It has also created perceived wealth for big parts of the world's population - a wealth which is only backed by promises to pay and by grossly inflated assets. Few people realise that this wealth is totally illusory and will implode considerably faster than the time it took to create it. [Let me explain.] Words: 890

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QE 3 Will Actually SUPPRESS the Economy! Here's Why

The Fed professes that QE 3 or as I call it, QE Infinity (QEI), will create jobs but I am not sure how they can expect anybody to buy their rationale. As we know, QE 1 and QE 2 did very little in the way of creating jobs. Might the Fed realize that QE Infinity could actually be counter-productive to economic growth?

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