The Royal Canadian Mint has announced that it is making an initial public offering of exchange-traded receipts (ETRs) under the mint's new Canadian Gold Reserves program. Unlike other gold investment products currently available which only enable the purchaser to own a unit or share in an entity that owns the gold, the ETRs will enable the purchaser to actually own the physical gold bullion which will be held in the custody of the mint at its facilities in Ottawa. Words: 650
Read More »Will Gold Drop as Low as $1,200 Before Spurting to $2,000?
In the long run developments in the financial markets and around the world seem to conspire to whip up a perfect storm for the gold price, taking it up towards $2,000 and further. That new upleg, however, could very well start from a much lower level than now. There are quite a few developments that could easily send the gold price lower in the coming months. Is $1,200 gold in the cards? Words: 739
Read More »Platinum is Downright "Cheap" Relative to ALL Other Precious Metals! Have You Any in Your Portfolio?
If this precious metals bull market continues over the next couple of years, I think one would [be well served to] diversify some assets in gold/silver into platinum. [Let me explain the present relationship between platinum, gold, silver and palladium and why I make the aforementioned recommendation.] Words: 832
Read More »Do Recent Gold & Silver Correlation/Return Comparisons With S&P 500 Refute Their Safe Haven Status?
The past few years have seen the development of the notion that GLD and SLV represent uncorrelated plays on the market, making them safe haven bets for your portfolio. Looking at historical trends (aside from 2011), [however,] one would have to go back to 2007 to find a year where these two metals weren’t highly correlated to the S&P 500. For all of 2011, both ETFs have featured low correlation, but as recent trading weeks have shown, old habits die hard, as the two ETFs have fallen back into a highly correlated trend. Let's take a look at the particulars.] Words: 672
Read More »Where Do Gold & Silver Rank in Vulnerability to a Recession Among Other Commodities?
A Barclays Capital research [report] notes that gold prices are vulnerable to a recession - more so than some of the other commodities. In the last recession of 2008, gold prices appreciated the least among precious metals. Below is a table that ranks 30 different commodities. Words: 571
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 »It’s Silver’s Time: Sales of Silver Coins Soaring; Price of Silver About to Soar! (+2K Views)
If sales for November and December match the levels of 2010, total sales of American Silver Eagle coins for 2011 should... [be] more than 20% above the record breaking sales level of 2010. [Not only that but] with physical demand remaining robust and investors seeking safe-haven investments in the face of the Eurozone debt crisis, I believe we could still see silver break above $50 by year-end or during Q1 of 2012 at the very latest. [Let me explain.] Words: 402
Read More »Nothing Has Changed: The Smart Money is STILL Bullish on Gold
With continued strong investment demand for physical gold in the face of heightened macro uncertainty and unprecedented, globally-coordinated monetary stimulus and a US dollar that will continue its path lower, the best performing assets at present are gold, emerging market equities denominated in local currencies, and commodity related stocks. [Let me explain why that is the case.] Words: 560
Read More »Take Note: Your Gold Holdings Are at Risk!
As with most things in life, making an investment in silver or gold is not without risk....What do you suppose is the biggest risk we face [and how should we go about protecting our holdings? Read on because you will be surprised!] Words: 1885
Read More »Silver: The Party Isn’t Over Yet (+2K Views)
Investing is often a study of inconsistencies and contradictions. If it weren’t, the markets would be a simple game and there would no back and forth between buyers and sellers, greed and fear and technical analysts, fundamentalists and momentum players. Our experience with silver since the end of last year illustrates this [but] we [still] think it makes sense to get exposure to the metal. [Let us explain.] Words: 820
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