Tag Archives: gold

There is a definite connection between fiat currencies and trade deficits. Critics of the Federal Reserve are right to blame it for distorting trade flows and setting the U.S. economy up for an inflationary crash. However, a trade deficit per se is not a sign of a bad economy. Indeed the trade deficit might blossom if the U.S. ever returned to the gold standard, though it would be due to a productive net inflow of producer goods. Words: 1667

There are very compelling arguments for both inflation and deflation. The answer will eventually depend on decisions made in Washington and how people react to those decisions. For now, let’s stop fooling ourselves and admit that we don’t know. It is a problem that has to be dealt with and there is no easy medicine. Either path will be painful, but that’s what we get for our two and a half decade debt binge. Words: 1142

If you believe further political disruptions around the world will likely occur in 2010 and/or 2011 and that we will also likely see inflation begin to rise within the next 12 months then we should see higher gold prices. Furthermore, if the economy falters once again, many investors will sell their common stocks and put their money in gold pushing the price up even further. Words: 779

The conditions which would support a major correction in the gold price are not present. Should a correction from a failed attack on recent highs occur in such an environment, it is likely to be a short one. Words: 712

A survey of US hedge fund managers by London-based Moonraker Fund Management: 90 percent (20 of the 22) of the hedge fund managers surveyed admitted they had bought physical gold for personal investment. These sophisticated investors know something that the average investor doesn’t: that the global policy response to the financial crisis will not only devalue the world’s major currencies, it will decimate the US dollar. Words: 2233

Unless the economy slips into deep depression (which we don't expect) silver prices will shoot much higher over the next five years or so. We would not be surprised to see triple-digit silver before the end of this decade. Words: 568

At the beginning of the last decade gold was trading at $255 an ounce and by the end of 2009 was trading at $1,100 an ounce. Not many investors thought that that was remotely possible and, at best, highly unlikely. Now some analysts are saying we should see $5,000 gold in a couple of years. Is that likely or just 'pie in the sky'? Words: 453

There's a saying in the investment business that when the taxi driver and the delivery person are talking about a "no-lose, gotta-have" investment, it's time to run for the exits. At that point of maximum adoration and comfort, the masses have gone wild. And that's often the warning that the smart money is on its way to the exits and the novices will be trampled in the exodus. Think technology stock bubble in 2000, or house flipping three years ago. Now, think gold. Words: 471

The only, truly accurate and profitable way to invest in the markets is to understand and quantify the markets differing personalities, which is what the rigorous study of market cycles does for you. Right now, for instance, although we are starting to see more negative news come to the forefront (as compared to the last nine or 10 months where the market was rallying), I can assure, the negative news you are hearing will pale in comparison to the news that will come out in the months ahead as the 40-month cycle for stocks turns down. Words: 1065

Most investors didn’t take warnings about the future of the economy and the financial marketplace - warnings that a ‘Category 6 Fiscal Storm’, a ‘Debt-Driven Meltdown’, a ‘Systemic Banking Crisis’, a ‘Financial Train Wreck’, a ‘God-Awful Fiscal Storm’, etc. was in store for the U.S. - seriously until it began. Perhaps this time around, before the other shoe drops, we should become more informed so we will be better positioned to survive and prosper regardless of what comes next. Words: 2128