Category: Gold

07
May
2009

Central Banks Favouring Gold Again Especially the “Elephant in the Room” China

Gold rallied 2% following news that China’s state holdings of the metal have been quietly raised by 76% since 2003. Rumours and speculation about Chinese buying have been rife for years, but many market participants remained in denial until this irrefutable proof was given. China is not only the world’s largest mine producer of gold, but also the fifth-largest individual country holder of gold with 1,054t.

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30
Apr
2009

Gold versus Warren Buffett

I have just completed an analysis of the performance of the spot price of gold vs. Berkshire Hathaway. I think you will find the results are a little suprising.

Spot Gold vs. Bershire Hathaway

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30
Mar
2009

Adrian Douglas: Why Own Physical Gold & Silver

Adrian Douglas of Market Force Analysis writes that in his experience, most ordinaly people have difficulty understanding why gold is the investment opportunity of a life time. Blaming the messenger, he explains it in simple terms, making a distinction between consumables and collectables:

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19
Mar
2009

Gold For Bread – Zimbabwe

MDC activist Sam Chakaipa returns to his village in rural Zimbabwe to find his friends and neighbours starving to death, reduced to panning gold powder from the rivers to exchange for food at an exorbitant rate.

The Guardian via Youtube:

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24
Dec
2008

Gold Investments Year-End Review – Outlook for 2009

Gold Outperformed Most Assets in 2008 – Gold Up 3.9% in USD; Up 5.3% in EUR and Up 34.4% in GBP.
Today’s London AM fix (23/12/08) was $844.01 (USD), £570.85 (GBP) and €603.72 (EUR). At the start of 2008 (January 2nd 2008), gold’s London AM Fix was at $840.75 (USD), £424.81 (GBP)  and €573.34 (EUR). Thus, in 2008 gold is up by 3.9% against the dollar, up 5.3% against the euro and up 34.4% against the pound. The London AM Fix is a widely followed benchmark for physical gold and silver prices and is reported in major newspapers and at many gold-related websites.

23-Dec-08

Last

1 Month

YTD

1 Year

5 Year

Gold $

845.15

5.77%

1.42%

4.16%

105.83%

Silver

10.80

12.07%

-26.85%

-24.60%

89.21%

Oil

39.82

-20.93%

-59.84%

-57.45%

24.63%

FTSE

4,283

13.27%

-33.66%

-33.43%

-3.55%

Nikkei

8,724

10.27%

-42.85%

-42.82%

-15.89%

S&P 500

872

8.95%

-40.64%

-41.28%

-20.25%

ISEQ

2,384

2.72%

-65.62%

-65.57%

-51.03%

EUR/USD

1.3990

11.15%

-4.08%

-2.71%

12.85%

© 2008 Goldassets.co.uk

This has led to a sharp outperformance of gold vis-à-vis every major equity indices and commodity in the word, not to mention most property markets (see Chart and Performance table). In March, gold fell from a record nominal high of just over $1,000/oz but it is important to remember that gold is only down some 15% from that record nominal high and this is after surging nearly 60% in the previous 7 months. In the seven months from the start of the credit crunch and the collapse of Bear Stearns, gold had surged by nearly 60% – from $640 in August 2007 to over $1,000 in March 2008.

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09
Dec
2008

Gold in Backwardation; talk of a run on the COMEX

It wouldn’t be suprising if you had never heard of backwardation. Though many commodities markets are frequently in backwardation, especially for seasonal or perishable/soft commodities, it has only happened twice in history in precious metals.

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26
Nov
2008

Is the Great Bear Bullish on Gold?

On the foot of recent reports that China is planning to diversify some of its massive foreign exchange reserves into gold, The Central Bank of the Russian Federation has released its latest

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17
Nov
2008

Obama’s Golden Opportunity – Return to Gold Standard

The Washington Times’s Lawrence Hunter wrote last week that U.S. President-elect Barack Obama has an opportunity to reset the economy and restore the U.S. dollar to its preeminence as the world’s reserve currency by reestablishing the gold standard.

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12
Nov
2008

In 2004, GoldCore Clearly Warned about Property and Stock Bubbles, and the Importance of Diversifying into Gold

Since 2003, GoldCore (then called Gold Investments) has clearly warned of property and stock market bubbles internationally, the risks in sharp falls in these markets, and the importance of diversifying into gold.

This is our homepage from early 2004, when we warned about property and stock bubbles, and the importance of diversifying into gold – http://web.archive.org/web/20040324071856/http://www.gold.ie/

Our home page warned investors and savers as seen in this section:

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31
Oct
2008

Rollover: Essential Movie Viewing in these Unprecedented Financial and Economic Times

Rollover is the story of faded Hollywood siren Jane Fonda who inherits a multi-million dollar company after her powerful bank president husband is murdered. While trying to find her dead love’s killer, she runs his corporation with the help of charming banker Kris Kristofferson in the weeks before a worldwide currency and financial collapse.

 

It was the 1981 movie Jane Fonda "got made" after her exploration of the dangers of nuclear power in the "China Syndrome" back in 1979. She was driving to tell the story of real money – gold and how people throughout the world value gold as real money while most Americans and people in western societies don’t understand gold and have forgotten its importance and value.

 

The plot line is about wealthy Arab investors not rolling over their certificates of deposits (CDs) in American banks and buying gold in order to hedge themselves against a fall in the dollar and paper currencies … and what the loss of those foreign investments means to the financial establishment in New York and the international financial and monetary system.

 

Rollover: Financial Apocalypse

 

This movie was a "financial thriller" and there are not many of these movies made. Movies need bank financing, and banks usually won’t finance anything that makes them look bad or stupid. They show "It’s a Wonderful Life" with Jimmy Stewart on TV only once a year now because it shows "run on the bank" at the Bailey Savings and Loan – not something the financial establishment wants Americans to even think about.

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