17
Dec
2008

Gold Investments Market Update – Dollars Are Free – Gold to Become More Expensive

The surprise move by the Fed to lower the Fed funds rate by more than 75 basis points to a record low and an unprecedented band between 0.25% and 0% led to sharp falls in the dollar (low of 1.4188 to the euro) and a spike in the gold price to over $859.40/oz.

The Federal Reserve has embraced ‘Helicopter Bernanke’s’ “inflate or die” massive reserve and money creation academic theories in an attempt to prevent deflation. Markets realise that this will lead to a lower dollar and higher gold prices in the medium and long term.

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16
Dec
2008

Fred Thompson explains the bailout (satire)

 

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16
Dec
2008

Gold Investments Market Update – Gold To Remain in Bull Market While Counter Party Risk is Elevated and Interest Rates Remain Low

Gold rose again yesterday and the dollar fell sharply in anticipation of the Federal Reserve further slashing interest rates to record lows of 0.5% today.

In a desperate bid to prevent a recession deepening, the Federal Reserve is prepared to slash interest rates to an all-time low near 0% today. With ZIRP (zero interest rate) policies, the US and global economy and monetary system is entering unchartered territory which is leading to continuing safe haven demand for gold.

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15
Dec
2008

Gold Investments Market Update – FT Reports that Counter Party Risk May Lead to Potential Squeeze in Gold Market by End of Year

Gold rallied sharply last week and was up nearly 9% despite continuing uncertainty and a very mixed performance in stock markets. The US dollar index fell some 4% on the week and it looks increasingly likely that the dollar may have topped out and may soon resume its bear market.

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12
Dec
2008

Gold Investments Market Update – PwC Finds ‘Gold is Serving Its Purpose as a Hedge of Wealth in Uncertain Times’

Gold rallied sharply yesterday, for the fourth day in a row, on sharply higher oil prices (some 10%) and a weaker dollar. Gold gave up some of its gains overnight in Asia as the dollar bounced after recent sharp losses in volatile trade.

Gold’s rally yesterday had nothing to do with an increase in risk appetite. If that was the case, why have stock markets internationally been falling sharply again in recent days and yesterday?

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11
Dec
2008

Diamonds and Jewelry as “Rock Solid” Investments

There have been a spate of articles in the press recently including the Personal Finance section of the Irish Times touting jewellery and diamonds as safe haven “rock solid” investments.

Rock solid investment

Looking for a rock-solid investment?

A girl’s best friend and a smart way to invest

This is dangerous nonsense and irresponsible journalism of the highest order.

Investors have lost enough money in recent years due to appalling investment “advice” regarding equities and property and it is important they do not compound that by “investing” in diamonds and jewellery.

As ever real diversification in all asset classes is essential.

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11
Dec
2008

Gold Investments Market Update – Money Printing Favour Hard Assets such as Gold over Paper Currencies

Gold rallied sharply yesterday, for the third day in a row, on higher oil prices and a weakening dollar.

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10
Dec
2008

Gold Investments Market Update – Deflation Now But Significant Inflation in Medium to Long Term

Gold rallied for a second day yesterday on concerns regarding the deepening US recession and the dollar. Gold has continued to rally in Asian and early European trading. The bounce in oil prices is likely lending support as is continuing robust physical demand internationally. Asian equity markets were largely positive overnight but European ones are again under pressure this morning.

The global deflationary spiral appears to be accelerating as are desperate attempts by politicians and central bankers to reflate their way out of the recession.

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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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09
Dec
2008

Gold Investments Market Update – South African Gold Production Continues to Fall Significantly – From over 1000 Tonnes in 1970 to 272 Tonnes in 2007

After falling sharply last week, gold rallied yesterday on the back of a weaker dollar, higher oil (Light Sweet Crude Oil Future – Combined – JAN09 is up more than 6% yesterday after falling an incredible 25% last week) and commodity prices and the Obama fiscal stimulus package.

The economic recession will get significantly worse before it starts to improve, US President-elect Barack Obama said in an interview at the weekend.

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