Gold

We can use correlations to develop short term cases for various markets and this article analyzes the relationship - the correlation - between the value of the U.S. dollar and the price of gold bullion.

As a rule of thumb when the ratio is below 9, oil is relatively expensive (and gold is relatively inexpensive) and when the ratio is above 20, oil is relatively inexpensive (and gold is relatively expensive).

It would seem that there is a considerable lack of understanding about what the term "safe haven" actually means when it comes to gold. Let me explain just what it means - and does not mean. Words: 740

Time is money so munKNEE.com scours the web every day; finds the best-of-the-best gold/silver articles (and other financial-, economic- and investment-related articles) available and then re-posts them in an "edited excerpt" format to provide a fast and easy read for the discerning reader.

My long standing target for gold of $10,000 in today’s money and much, much higher in inflationary terms, is now more probable than ever but I hope it will never be achieved. When gold goes to $10,000, It will not just reflect inflation and falling currencies like in the 1970s but a much more serious or even catastrophic situation both in the U.S. and globally so let’s look at a potential scenario for the next few years. This is obviously not a forecast but more of a rough sketch of what could happen:

We may be nearing a point in which gold takes center stage among investors once again...[as] good news may be on the way for gold bulls in the form of strengthening technicals.

Why do some analysts argue that the gold:silver ratio should reflect the relative rarities of the two metals in the ground and therefore be 10:1 or lower? I don’t know, but it isn’t a valid argument. Neither is the argument that the gold:silver ratio should be around 16:1 because that’s what it averaged for hundreds of years prior to the last hundred years. So, what should it be?

The book examines 44 graphs and shows that national debt and most prices have increased exponentially in the past 50 – 100 years. It shows why gold prices will reach $10,000, probably in the next decade.

Independent research recommends that an allocation of 10% to gold and 5% to silver should be enough to ensure you will do much better in the coming market crash. Here is the rationale.

A central bank’s worst nightmare is when they want inflation and can’t get it. The Fed’s tricks have all failed. Is there another rabbit in the hat? Actually, there is. The Fed could announce that effective immediately the price of gold was $5,000 per troy ounce which would cause massive inflation within 15 minutes.