21
Jul
2008

Gold Investments Market Update – Deflationary Recession/Depression Versus Inflationary Recession/Depression?

Gold

Gold finished trading in New York on Friday at $956.40, down $12.70 and silver fell 53 cents to 18.12. Gold traded sideways to slightly up in Asia before rising in early European trading by nearly 1%.

Despite the very sharp fall in oil prices and other commodities last week, gold only fell by 0.2%. Silver was down by 3%. August Crude fell by more than 11% – it fell $16.34 from over $145 to $128.74. And Prudent Bear’s Doug Noland points out that August Gasoline sank 11.5% (up 27.8% y-t-d), and August Natural Gas dropped 10.2% (up 42.9% y-t-d).

Continue Reading
18
Jul
2008

Gold Investments Market Update – George Soros Goes Long Gold

Gold

Gold finished trading in New York yesterday at $957.00, down $4.00. Gold traded sideways and rose in Asia before rising in early European trading and then falling again and is now down 0.15% for the day.

Equity markets have bounced on what is likely to be another short term correction on massive short covering.

Continue Reading
18
Jul
2008

How to cure a ‘Mental Recession’

Matt Bors

Continue Reading
17
Jul
2008

It’s Not Your Grandfather’s Bank Run … Yet

From Wikipedia:


Bank runs first appeared as part of cycles of credit expansion and its subsequent contraction. In the 16th century onwards, English goldsmiths issuing promissory notes suffered severe failures due to bad harvests plummeting parts of the country into famine and unrest.

Continue Reading
16
Jul
2008

Gold Investments Market Update – Alan Greenspan: “Gold still represents the ultimate form of payment in the world”

Gold

Gold finished trading in New York yesterday at $977.10, up $5.00 and silver was down to $18.92, down 27 cents. Gold fell in Asia before rising in early European trading.

Gold rallied strongly in early trading yesterday on higher oil, a lower dollar and increasing macroeconomic and systemic risk prior to the sharp fall in oil prices (some $10 in a short period of time) which led to a selloff in precious metals. Despite the sharp selloff in oil, gold again remained resilient and finished some 0.5% higher in New York.

Continue Reading
15
Jul
2008

Gold Investments Market Update – Sir John Major Says Government Inflation is Massively Underestimated – Real Inflation of Some 10%

Gold

Gold finished trading in New York yesterday at $972.10, up $12.00 and silver was up to $19.15, up 38 cents. Gold rose in trading in Asia before further rises in early European trading. Gold is now up some 7% in the last 5 trading days (from below $920 to over $983) and in normal circumstances one would expect a correction and consolidation. However, these are not normal circumstances.

Gold has rallied again on dollar weakness, oil strength and safe haven demand due to macroeconomic and systemic risk.

Continue Reading
14
Jul
2008

Gold Investments Market Update – Trillion Dollar Bailouts Will Likely Cripple U.S. Budget and Imperil the Dollar

Gold

Gold finished trading in New York on Friday at $959.10, up $18.90 and silver was up to $18.72, up 48 cents. Gold rose in trading in Asia before selling off in early European trading on profit taking due to falling oil prices and a rising dollar this morning.

Both gold and silver were up nearly 3% last week on inflation hedging and safe haven buying and profit taking is to be expected. Gold and silver were up nearly 3% for the week and yet the dollar was only down some 1% and oil was essentially flat after a very volatile week.

Continue Reading
11
Jul
2008

Gold Investments Market Update – Fannie, Freddie ‘Insolvent’ and Lehman Brothers May be Next Bear Stearns

Gold

Gold finished trading in New York yesterday at $940.20, up $13.90 and silver was up to $18.24, up 17 cents. Gold rose again in the New York Globex electronic market before trading sideways in trading in Asia and it has risen sharply again in early European trading to above $950 per ounce.

Gold continues to rally on the surging oil price (which is back near record highs), surging commodities and renewed weakness in the dollar. Not to mention safe haven buying on geopolitical risk in Iran. Oil is up nearly 2% again this morning after yesterday’s nearly 4% surge.

Continue Reading
10
Jul
2008

Gold Investments Market Update – S&P 500 Real Return in 10 Years is Less Than Zero

Gold

Gold finished trading in New York yesterday at $926.30, up $5.40 and silver was up to $18.07, up 23 cents. Gold rose again in the New York Globex electronic market and in early trading in Asia and has remained firm in early European trading.

With geopolitical risk remaining high and financial risk elevated (as seen with U.S.

Continue Reading
09
Jul
2008

Some quotes need no further comment

The biggest disappointment of my time at the FSA has been the failure of firms, and particularly their senior management, to learn the lessons of past mis-selling. Sadly, the recent history of the British retail financial services industry is proof of the adage that those who fail to understand the mistakes of the past are condemned to repeat them.

Continue Reading