While gold prices reached new all-time highs on Monday, that wasn't the direction for most gold miners, as Seabridge Gold (AMEX:SA), Yamana Gold (NYSE:AUY), Gold Fields (NYSE:GFI) and NovaGold (AMEX:NG), which closed mixed on the day.
Spot gold jumped as high as $1,497.20 an ounce Monday after Standard & Poor’s downgraded its credit outlook for the United States, revealing the risks associated with its own sovereign debt crisis.
U.S. gold futures for June delivery settled up $6.90 an ounce at $1,492.90.
The sovereign debt crisis in Europe continues to boost gold as well, as the euro and U.S. dollar continue to face pressures on out-of-control government spending and refusal to make meaningful spending cuts.
Global inflation and unrest in the Middle East also continue to be major factors in the gold price equation.
As to why most gold miners have been pulling back, a lot of that is based on the fact the majority of the miners are based in Canada, and so the weaker U.S. dollar as it relates to the Canadian dollar is a major factor a lot of investors in gold companies don't take into account.
NovaGold closed Monday at $13.11, dropping $0.16, or 1.21 percent. Gold Fields closed at $17.54, dropping $0.34, or 1.90 percent. Yamana Gold ended the day at $12.54, down $0.26, or 2.03 percent. Seabridge Gold closed at $34.00, gaining $0.38, or 1.13 percent.
Showing posts with label Gold Safety. Show all posts
Showing posts with label Gold Safety. Show all posts
Tuesday, April 19, 2011
Thursday, March 24, 2011
BHP (BHP), RIO (RIO) Jump on Rising Commodity Prices
Rising gold, silver and copper prices are pushing up the share price of diversified miners BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO), as safe haven status and growing copper demand offers the commodities support and growth.
Copper demand and prices are rising on the fact that Japan will need a tremendous amount to rebuild the country. Other commodities like aluminum and steel will also generate strong demand over time.
Gold is up on the various geo-political and economic crises around the world, with the never-ending sovereign debt crisis in the EU again adding fuel to the fire.
Silver continues to rise on an alternative to gold as well as demand as an industrial metal.
BHP was trading at $ 90.94, gaining $0.92, or 1.02 percent, as of 2:20 PM EDT. Rio Tinto was at $68.57, up $1.05, or 1.56 percent.
Copper demand and prices are rising on the fact that Japan will need a tremendous amount to rebuild the country. Other commodities like aluminum and steel will also generate strong demand over time.
Gold is up on the various geo-political and economic crises around the world, with the never-ending sovereign debt crisis in the EU again adding fuel to the fire.
Silver continues to rise on an alternative to gold as well as demand as an industrial metal.
BHP was trading at $ 90.94, gaining $0.92, or 1.02 percent, as of 2:20 PM EDT. Rio Tinto was at $68.57, up $1.05, or 1.56 percent.
Southern Copper (SCCO), Newmont (NEM) Rise on Copper, Gold Exposure
Based on their exposure to copper and gold, Southern Copper (NYSE:SCCO) and Newmont Mining (NYSE:NEM) could be in good position to benefit from the price of both going up, as well as demand.
Copper and gold prices jumped on anticipated demand, and in the case of gold, safe haven status, as investors continue to be jittery on global events and economic uncertainty.
For copper, the demand from China and India, along with the emerging demand from Japan as it looks to rebuild after the earthquake, gives a strong impetus for prices to remain strong going forward.
Gold is also expected to continue to rise, and will get a boost from growing inflation as investors move to protect their wealth.
Southern Copper closed Wednesday $41.55, gaining $1.37, or 3.41 percent. Newmont Mining closed at $54.83, $1.66, or 3.12 percent.
Copper and gold prices jumped on anticipated demand, and in the case of gold, safe haven status, as investors continue to be jittery on global events and economic uncertainty.
For copper, the demand from China and India, along with the emerging demand from Japan as it looks to rebuild after the earthquake, gives a strong impetus for prices to remain strong going forward.
Gold is also expected to continue to rise, and will get a boost from growing inflation as investors move to protect their wealth.
Southern Copper closed Wednesday $41.55, gaining $1.37, or 3.41 percent. Newmont Mining closed at $54.83, $1.66, or 3.12 percent.
Tuesday, November 30, 2010
Gold Prices Today Soar on EU Sovereign Debt Disaster
Black Friday temporarily captured the attention and imagination of traders and investors, but that is already past us and the potential contagion and ongoing disaster related to the EU sovereign debt crisis has them running to gold again for safety reasons.
Gold for February delivery at the Comex division of the New York Mercantile Exchange rose by $17.40 to $1,384.90 an ounce. Spot gold was at 1,384.10, rising by $16.80 as of 2:19 PM EST.
As has happened several times in the recent past, gold ignored the temporary rising value of the U.S. dollar, for imperceivable reasons, has also attracted those seeking safety.
At those times the two ignore the usual inverse relationship and rise together. That could continue to happen in the current economic climate for a short period of time.
Much of that will be determined by the perceived fate and value of the euro against the dollar as the narrative unfolds in Europe.
The problem seems to be the EU and news outlets are not reporting the true depth of the problem, which appears to be far worse than is being let on.
Greece, for example, recently stated their deficits are probably worst than last reported, which implies either outright dishonesty or ineptness; both of which are dangerous to the region, although at lower levels than the obvious repercussions if Spain were to require a bailout.
This seems to be the primary driver of gold at this time, and as long as the euro remains under pressure and the U.S. dollar moves up against it, gold and the dollar will probably rise together.
That will eventually change, but until it does, gold will most likely move up slower than it otherwise would have in light of other economic factors like the quantitative easing of the Federal Reserve.
Gold for February delivery at the Comex division of the New York Mercantile Exchange rose by $17.40 to $1,384.90 an ounce. Spot gold was at 1,384.10, rising by $16.80 as of 2:19 PM EST.
As has happened several times in the recent past, gold ignored the temporary rising value of the U.S. dollar, for imperceivable reasons, has also attracted those seeking safety.
At those times the two ignore the usual inverse relationship and rise together. That could continue to happen in the current economic climate for a short period of time.
Much of that will be determined by the perceived fate and value of the euro against the dollar as the narrative unfolds in Europe.
The problem seems to be the EU and news outlets are not reporting the true depth of the problem, which appears to be far worse than is being let on.
Greece, for example, recently stated their deficits are probably worst than last reported, which implies either outright dishonesty or ineptness; both of which are dangerous to the region, although at lower levels than the obvious repercussions if Spain were to require a bailout.
This seems to be the primary driver of gold at this time, and as long as the euro remains under pressure and the U.S. dollar moves up against it, gold and the dollar will probably rise together.
That will eventually change, but until it does, gold will most likely move up slower than it otherwise would have in light of other economic factors like the quantitative easing of the Federal Reserve.
Wednesday, November 17, 2010
Gold Prices Bursting or Correcting?
The usual speculation when any asset class makes a wide swing is part of gold now, as gold prices are in the midst of a huge downward move, and has generated questions on whether or not gold is correcting or it's in the middle of a bubble bursting.
Anyone familiar with gold for a long period of time knows this is nothing more than a correction, as the elements surrounding a bubble haven't yet emerged, and gold prices have a long way to go before they run their course, although it is a good lesson in what factors will eventually bring gold prices back to earth.
One of the major things ultimately stopping the rise of gold prices will be measures put in place to combat inflation: increasing interest rates.
That alone won't completely stop it if other major factors are driving gold prices up, but it would definitely slow it down, and if implemented in most, if not all, major economies, could have a dramatic effect.
That isn't going to happen any time soon though, as the U.S. isn't even close to thinking of raising interest rates in the current economic climate.
Even if China is to increase interest rates like South Korea did on Monday, that won't be enough to pull down gold in the long term, even though it would push gold prices down immediately and give the appearance of a bubble bursting.
Another thing driving gold prices down down, in conjunction with interest rate concerns, is the temporary strengthening of the U.S. dollar. That's all related to the weakened euro because of the renewed focus on the European sovereign debt crisis, which continues to stubbornly hang on.
After the EU bluffs its way through that or throws a bailout bone to Ireland, that will be considered taken care of, even though as Greece had shown yesterday, as it appears there is still corruption in the process, as Greece said they had underestimated the size of their deficit.
Greece isn't exactly so big that working out how big of a deficit they have should be that difficult. They're obviously understating things in hopes of stealing more money from the region to support their socialist practices via unsustainable entitlement programs.
In the end, there hasn't been much that has changed to justify the typical ignorant conclusions, and wishful thinking by some, that gold has ended its historical run. It isn't even close to being the case.
The U.S. dollar will continue its collapse in light of the inflationary policies of the Federal Reserve, the euro isn't considered that important any longer by the international community, physical demand for gold continues to rise, and of course, it's still the best place for safety in the turbulent economic times we live in, which are far from turning around at all.
What may happen in the near term with gold is it'll be much more volatile than usual until the decisions - by Asian countries in particular - as to raising their interest rates to combat inflation come about.
That appears to be priced already into the fall in gold prices, although I think the China factor will be the most devastating impact in the near term.
Once that's over with, gold will resume its assent with little in the way to stop it.
Anyone familiar with gold for a long period of time knows this is nothing more than a correction, as the elements surrounding a bubble haven't yet emerged, and gold prices have a long way to go before they run their course, although it is a good lesson in what factors will eventually bring gold prices back to earth.
One of the major things ultimately stopping the rise of gold prices will be measures put in place to combat inflation: increasing interest rates.
That alone won't completely stop it if other major factors are driving gold prices up, but it would definitely slow it down, and if implemented in most, if not all, major economies, could have a dramatic effect.
That isn't going to happen any time soon though, as the U.S. isn't even close to thinking of raising interest rates in the current economic climate.
Even if China is to increase interest rates like South Korea did on Monday, that won't be enough to pull down gold in the long term, even though it would push gold prices down immediately and give the appearance of a bubble bursting.
Another thing driving gold prices down down, in conjunction with interest rate concerns, is the temporary strengthening of the U.S. dollar. That's all related to the weakened euro because of the renewed focus on the European sovereign debt crisis, which continues to stubbornly hang on.
After the EU bluffs its way through that or throws a bailout bone to Ireland, that will be considered taken care of, even though as Greece had shown yesterday, as it appears there is still corruption in the process, as Greece said they had underestimated the size of their deficit.
Greece isn't exactly so big that working out how big of a deficit they have should be that difficult. They're obviously understating things in hopes of stealing more money from the region to support their socialist practices via unsustainable entitlement programs.
In the end, there hasn't been much that has changed to justify the typical ignorant conclusions, and wishful thinking by some, that gold has ended its historical run. It isn't even close to being the case.
The U.S. dollar will continue its collapse in light of the inflationary policies of the Federal Reserve, the euro isn't considered that important any longer by the international community, physical demand for gold continues to rise, and of course, it's still the best place for safety in the turbulent economic times we live in, which are far from turning around at all.
What may happen in the near term with gold is it'll be much more volatile than usual until the decisions - by Asian countries in particular - as to raising their interest rates to combat inflation come about.
That appears to be priced already into the fall in gold prices, although I think the China factor will be the most devastating impact in the near term.
Once that's over with, gold will resume its assent with little in the way to stop it.
Wednesday, July 7, 2010
Gold Prices Close Down Below $1,200 an Ounce
In somewhat of a past pattern, gold prices today have been moving downward, mostly on what is perceived as slowing demand in India.
Recent lower gold prices has began to create demand in physical ownership in gold rather than investing in the yellow metal.
Typically this part of the summer is considered a slow time for gold prices, and they usually will rebound later in the year.
I don't really think this is how it will play out this year, as they are too many variables, especially the terrible shape of the economies in the U.S. and Europe to think gold won't continue to be a safe haven factor throughout the summer months.
Nothing has changed there, and once this irrational optimism passes in equities, we'll see the underlying fundamentals return to the minds of investors, and gold resume its upward price movement.
This isn't to say there won't be temporary corrections, as we're experiencing now. But as soon as the latest negative economic news returns, investors will pour money back in gold again, and the prices will consequently rise with that.
Recent lower gold prices has began to create demand in physical ownership in gold rather than investing in the yellow metal.
Typically this part of the summer is considered a slow time for gold prices, and they usually will rebound later in the year.
I don't really think this is how it will play out this year, as they are too many variables, especially the terrible shape of the economies in the U.S. and Europe to think gold won't continue to be a safe haven factor throughout the summer months.
Nothing has changed there, and once this irrational optimism passes in equities, we'll see the underlying fundamentals return to the minds of investors, and gold resume its upward price movement.
This isn't to say there won't be temporary corrections, as we're experiencing now. But as soon as the latest negative economic news returns, investors will pour money back in gold again, and the prices will consequently rise with that.
Monday, June 7, 2010
Robert Prechter Maintains 40 Percent Gold Correction
At the Reuters Investment Outlook Summit in New York, Elliott Wave president Robert Prechter maintained gold could fall 40 percent in a major market correction.
Prechter is trying to weasel out of his projection in January that gold will plunge by 40 percent, saying it couldn't continue on because of deflation and too many institutions and people owing it.
Of course the assertion of deflation is ridiculous, and unless you trust the government numbers, which they massage and tweak to their benefit, deflation hasn't been around yet, and only once in decades has their been a deflationary year.
There is the crowd that redefines inflation and deflation in order to say there is deflation, but they can't be taken serious, and for everyday items people buy in America, there hasn't been deflation, unless want to pick out a couple out of the bunch to justify your point.
The weasel aspect I mentioned was when he said gold was being stalled by technical momentum and since 2006 the increase has subsequently been experienced at a lower rate, which he covered his butt by saying, "That is not a guarantee of change but a sign that one is likely."
Anything is likely, so that's irrelevant.
What must be taken into consideration is the sovereign debt crisis in Europe, the Chinese battling inflation and the so-called jobless recovery in America, which isn't one, as the recent job numbers revealed, where the government has propped up the jobs market by hiring people, while the private sector has been holding back, not trusting in the assertions of the government, as they're the ones on the street experiencing the realities of the economy on a local, regional, national and international basis.
That means investors will continue to seek safety, and there is nothing safer than gold at this time, and there is a growing lack of faith in paper currencies around the world, with gold really being the only alternative.
I think the idea of gold being over-bought is where Prechter misses it, as that may be true in general among institutional investors, but the vast majority of people on the street haven't even entered into the gold market yet, and until that happens, there's not going to be a bubble, let alone one that bursts, neither will there be a major correction to the degree Prechter calls for, although there will always be some corrections in any market.
Demand for safety and concern over inflation is what is primarily driving gold prices up, and that isn't going to change or correct, based on what Prechter calls "technical indicators," which to me is a bunch of BS and mumbo jumbo.
The idea that 98 percent of people are positive about gold is another somewhat irrelevant statement. Obviously that 98 percent would have to have been culled from a small group of a certain type of investor.
What he meant by that is if everyone is positive, he's going to run the other direction. In normal investing circumstances that's not a bad strategy, but with gold in these economic circumstances it doesn't make sense.
Gold isn't going to correct to that level at this time because there is simply nothing out there to make it happen. Everything is pointing to instability and ongoing recession.
And if you believe there has been a weak recovery, then call what's coming a double-dip recession.
Either way, gold prices are going to continue going up, and while there will be sell-offs and taking of profits like a couple of weeks ago, I don't see anything that will change the price of gold going up for years into the future.
Now that doesn't mean there will never be a correction, but it's not going to be for some time, and it won't happen until there is a real bubble market similar to the housing bubble, where clueless people bought homes to make some quick money, not understanding they were at the top of the ponzi scheme. Gold isn't anywhere near that, and there is too much inflation and geo-political situations to change that in the near term.
Prechter is trying to weasel out of his projection in January that gold will plunge by 40 percent, saying it couldn't continue on because of deflation and too many institutions and people owing it.
Of course the assertion of deflation is ridiculous, and unless you trust the government numbers, which they massage and tweak to their benefit, deflation hasn't been around yet, and only once in decades has their been a deflationary year.
There is the crowd that redefines inflation and deflation in order to say there is deflation, but they can't be taken serious, and for everyday items people buy in America, there hasn't been deflation, unless want to pick out a couple out of the bunch to justify your point.
The weasel aspect I mentioned was when he said gold was being stalled by technical momentum and since 2006 the increase has subsequently been experienced at a lower rate, which he covered his butt by saying, "That is not a guarantee of change but a sign that one is likely."
Anything is likely, so that's irrelevant.
What must be taken into consideration is the sovereign debt crisis in Europe, the Chinese battling inflation and the so-called jobless recovery in America, which isn't one, as the recent job numbers revealed, where the government has propped up the jobs market by hiring people, while the private sector has been holding back, not trusting in the assertions of the government, as they're the ones on the street experiencing the realities of the economy on a local, regional, national and international basis.
That means investors will continue to seek safety, and there is nothing safer than gold at this time, and there is a growing lack of faith in paper currencies around the world, with gold really being the only alternative.
I think the idea of gold being over-bought is where Prechter misses it, as that may be true in general among institutional investors, but the vast majority of people on the street haven't even entered into the gold market yet, and until that happens, there's not going to be a bubble, let alone one that bursts, neither will there be a major correction to the degree Prechter calls for, although there will always be some corrections in any market.
Demand for safety and concern over inflation is what is primarily driving gold prices up, and that isn't going to change or correct, based on what Prechter calls "technical indicators," which to me is a bunch of BS and mumbo jumbo.
The idea that 98 percent of people are positive about gold is another somewhat irrelevant statement. Obviously that 98 percent would have to have been culled from a small group of a certain type of investor.
What he meant by that is if everyone is positive, he's going to run the other direction. In normal investing circumstances that's not a bad strategy, but with gold in these economic circumstances it doesn't make sense.
Gold isn't going to correct to that level at this time because there is simply nothing out there to make it happen. Everything is pointing to instability and ongoing recession.
And if you believe there has been a weak recovery, then call what's coming a double-dip recession.
Either way, gold prices are going to continue going up, and while there will be sell-offs and taking of profits like a couple of weeks ago, I don't see anything that will change the price of gold going up for years into the future.
Now that doesn't mean there will never be a correction, but it's not going to be for some time, and it won't happen until there is a real bubble market similar to the housing bubble, where clueless people bought homes to make some quick money, not understanding they were at the top of the ponzi scheme. Gold isn't anywhere near that, and there is too much inflation and geo-political situations to change that in the near term.
Tuesday, June 1, 2010
Gold Prices Soar Today on EU Bank Loan Loss Fears
Gold prices took off early in the day as reports from the European Central Bank said the banks in the region could experience another round of loan losses, this time up to $237 billion over the next year and a half.
The uncertainty of the economic fallout from Portugal, Italy, Ireland, Greece and Spain have investors concerned over how deeply it will impact the economy, and how far it'll spread to other nations, making gold the choice for those looking for safety.
News that China manufacturing dropped in May also reminded investors of some of the vulnerabilities there which could dramatically reduce economic activity there and abroad.
Gold futures were trading at a two-week high Tuesday in response to the news.
The uncertainty of the economic fallout from Portugal, Italy, Ireland, Greece and Spain have investors concerned over how deeply it will impact the economy, and how far it'll spread to other nations, making gold the choice for those looking for safety.
News that China manufacturing dropped in May also reminded investors of some of the vulnerabilities there which could dramatically reduce economic activity there and abroad.
Gold futures were trading at a two-week high Tuesday in response to the news.
Monday, May 24, 2010
Gold Future Prices Driven Up by Haven Demand
Gold futures prices are on the rebound today as a demand for a safe haven again has dominated the market, and investors invest to preserve their wealth. This was the highest gain for gold, which may be at the end of the correction, after speculators took their profits after a strong increase in price.
Another reason for taking gold profits last week was investors had incurred losses in other markets, so they had to cover those losses with the strong profits they received from gold, which had been on a roll. Gold ended the week down by 4.2 percent, the deepest plunge since December.
Continued economic concerns in the European Union are also contributing to today's rise, making gold again the choice as the most safe place to stash our money.
The market is still regurgitating the news that the Bank of Spain has taken over a major savings bank in the country, CajaSur, which has experienced major defaults because of the ongoing recession. Most believe this is just the first of many which will fail, with the depth of the failure an unknown, but one that will continue to rock the markets, and drive up the price of gold.
Gold was up to $1193.50 an ounce, or $16.50 as of 12:30 p.m. Est.
Another reason for taking gold profits last week was investors had incurred losses in other markets, so they had to cover those losses with the strong profits they received from gold, which had been on a roll. Gold ended the week down by 4.2 percent, the deepest plunge since December.
Continued economic concerns in the European Union are also contributing to today's rise, making gold again the choice as the most safe place to stash our money.
The market is still regurgitating the news that the Bank of Spain has taken over a major savings bank in the country, CajaSur, which has experienced major defaults because of the ongoing recession. Most believe this is just the first of many which will fail, with the depth of the failure an unknown, but one that will continue to rock the markets, and drive up the price of gold.
Gold was up to $1193.50 an ounce, or $16.50 as of 12:30 p.m. Est.
Monday, May 17, 2010
Jim Rogers: Gold Going Much Higher
Commodities investing expert Jim Rogers continues his mantra on being a bull for most commodities for the next decade or so, and he reiterates that position with gold, which he says will continue to be considered a safe haven again inflation from the weakening of paper currencies.
With faith in fiat currencies continuing to weaken, gold has reached record levels against a number of currencies, including the euro, US dollar, Swiss franc and British pound.
In a recent interview with Reuters, Rogers said this about his outlook for gold: "I certainly expect gold to go much higher over the next few years. Paper money is going to be debased and the price of real assets will be enhanced."
Rogers doesn't just believe this about gold, but many of the other raw materials as well.
Along with a growing number of analysts and economists, Rogers knows the extraordinary and unprecedented level of debt being incurred by nations will be devastating to currencies and result in strong inflation.
Once the overall market begins to understand how large the credit expansion has been, we could see commodity and gold prices surge beyond levels some that are optimistic even think they will.
With faith in fiat currencies continuing to weaken, gold has reached record levels against a number of currencies, including the euro, US dollar, Swiss franc and British pound.
In a recent interview with Reuters, Rogers said this about his outlook for gold: "I certainly expect gold to go much higher over the next few years. Paper money is going to be debased and the price of real assets will be enhanced."
Rogers doesn't just believe this about gold, but many of the other raw materials as well.
Along with a growing number of analysts and economists, Rogers knows the extraordinary and unprecedented level of debt being incurred by nations will be devastating to currencies and result in strong inflation.
Once the overall market begins to understand how large the credit expansion has been, we could see commodity and gold prices surge beyond levels some that are optimistic even think they will.
Saturday, May 8, 2010
Gold as Currency and Safe Haven
One of the more positive results of the economic crisis we face is abn increasing number of people are better understanding the overall scheme of economics, currencies, the central banks, and gold.
Gold prices today have risen to just under record levels, and that alone is good news, not just for gains made by investors, but because it reveals people in general are starting to see that historically gold has been the most durable asset that has existed; going back thousands of years.
But just as important is the understanding that the Federal Reserve and other central banks around the world are a major problem in the health of our economic system, and the endless printing of money by central banks had done as much harm to the global economy as anything else, and probably more.
Another great benefit is people are beginning to see that paper currencies aren't worth much, and gold is far more valuable and safe than it will ever be.
All of this is important because our generation, for the most part, haven't experienced this depth of economic chaos in their lifetimes, and it has brought to the surface the underlying causes which few have taken time to search out. Now they are, and it's doubtful it'll ever return to the naive practices of the past without being challenged.
Gold is safe because it holds its value and can be used as currency at any time, in the sense if things get so bad that the financial system breaks down, which it in reality could. This is why a growing number of people are acquiring physical gold to not only protect their wealth, but to have a means of exchange if things go that sour.
If nothing else, hopefully this crisis will change the understanding of our financial system and help people to see what needs to be changed after decades of Keynesianism has let us to where we are today.
Gold prices today have risen to just under record levels, and that alone is good news, not just for gains made by investors, but because it reveals people in general are starting to see that historically gold has been the most durable asset that has existed; going back thousands of years.
But just as important is the understanding that the Federal Reserve and other central banks around the world are a major problem in the health of our economic system, and the endless printing of money by central banks had done as much harm to the global economy as anything else, and probably more.
Another great benefit is people are beginning to see that paper currencies aren't worth much, and gold is far more valuable and safe than it will ever be.
All of this is important because our generation, for the most part, haven't experienced this depth of economic chaos in their lifetimes, and it has brought to the surface the underlying causes which few have taken time to search out. Now they are, and it's doubtful it'll ever return to the naive practices of the past without being challenged.
Gold is safe because it holds its value and can be used as currency at any time, in the sense if things get so bad that the financial system breaks down, which it in reality could. This is why a growing number of people are acquiring physical gold to not only protect their wealth, but to have a means of exchange if things go that sour.
If nothing else, hopefully this crisis will change the understanding of our financial system and help people to see what needs to be changed after decades of Keynesianism has let us to where we are today.
Sunday, May 2, 2010
Gold Trading at Record Highs in British pound, euro and Swiss franc
This last week had gold reaching its highest trading level against the British pound, euro and Swiss franc, as the potential for a sovereign debt catastrophe in Europe looms over the investment world and people and institutions want a safe place to have their money.
It seems the depth of the latest crisis isn't even comprehended by most, but it boggles the mind when start talking of countries like Portugal, Ireland, Italy, Greece and Spain being in extreme danger of defaulting on debt, with some being more exposed than others.
This has caused all currencies to be suspect, and that has resulted in the record high trading against the currencies listed above.
Gold is going to rise against many things going forward, as there's simply nothing else to take its place, as a large number of investors are increasingly understanding when reconsidering investing in the U.S. dollar as the place of safety.
This is why gold has been rising with the dollar, as investors are gravitating toward gold as their safe have more and more, and they should be.
It seems the depth of the latest crisis isn't even comprehended by most, but it boggles the mind when start talking of countries like Portugal, Ireland, Italy, Greece and Spain being in extreme danger of defaulting on debt, with some being more exposed than others.
This has caused all currencies to be suspect, and that has resulted in the record high trading against the currencies listed above.
Gold is going to rise against many things going forward, as there's simply nothing else to take its place, as a large number of investors are increasingly understanding when reconsidering investing in the U.S. dollar as the place of safety.
This is why gold has been rising with the dollar, as investors are gravitating toward gold as their safe have more and more, and they should be.
Friday, April 30, 2010
Gold Surges on Safety Concerns
Gold continues its upward climb as investors continue to keep safe-haven as the primary motivator in their investment decisions.
The yellow metal hit above the $1,180 an ounce mark, and most are wondering how long it'll take to break $1,200.
Ongoing economic concerns and the potentially economic devastation of Europe with the sovereign debt crisis keeps gold as the best way to protect your wealth.
The yellow metal hit above the $1,180 an ounce mark, and most are wondering how long it'll take to break $1,200.
Ongoing economic concerns and the potentially economic devastation of Europe with the sovereign debt crisis keeps gold as the best way to protect your wealth.
Wednesday, April 21, 2010
Barrick Gold (TSE:ABX), Goldcorp (TSE:G) Rise with Gold Prices
The continuing concerns over the debt crisis in Greece has investors going back to gold as a safe haven, and gold mining companies like Barrick Gold (TSE:ABX)(NYSE:ABX)and Goldcorp (TSE:G)(NYSE:GG) continue to ride the wave with them.
Both Barrick and Goldcorp made nice moves upward today, as investors look for a cheaper, but safe way to invest in the metal.
Even with the better performance of companies in their quarterly reports, that hasn't made much of an impact on the market, as they are mostly being compared with the disaster last year, which doesn't really give a good snapshot of the health of these companies, as they pretty much had nowhere to go but up, even with the poorest of managements in place.
Gold stood at $1,146.50 as of this writing, a gain of over $6 an ounce on the day.
Both Barrick and Goldcorp made nice moves upward today, as investors look for a cheaper, but safe way to invest in the metal.
Even with the better performance of companies in their quarterly reports, that hasn't made much of an impact on the market, as they are mostly being compared with the disaster last year, which doesn't really give a good snapshot of the health of these companies, as they pretty much had nowhere to go but up, even with the poorest of managements in place.
Gold stood at $1,146.50 as of this writing, a gain of over $6 an ounce on the day.
Thursday, April 8, 2010
Greece Borrowing and Gold
Gold: The New Currency
The finance minister of Greece announced today that the country will continue to borrow, even at the high interest rates which have increased of costs of attaining capital. It generates the question of how all of this will affect the price of gold, the yen, and the U.S. dollar.
Investors are again losing any faith that is left in the country, and are very unsure as to weather Greece will be able to pay off its huge debt, which are about to become due very soon.
What the sovereign debt crisis of Greece has revealed in relationship to gold, the yen and the U.S. dollar is that gold is increasingly becoming thought of as a form of currency by a growing number of people, which is the reason you see it moving in tandem with the U.S. dollar and yen on some days people are looking for a safe haven for their money.
That means there is a lack of faith in all paper currencies at this time, and while the dollar and yen will continue to be considered to be a relatively safe place for people to place their money, gold is growing in influence, and for many, is by far the safest place to put their money in economic times like these.
The Greek debt crisis has brought this to the surface for all to see.
Gold: The New Currency
The finance minister of Greece announced today that the country will continue to borrow, even at the high interest rates which have increased of costs of attaining capital. It generates the question of how all of this will affect the price of gold, the yen, and the U.S. dollar.
Investors are again losing any faith that is left in the country, and are very unsure as to weather Greece will be able to pay off its huge debt, which are about to become due very soon.
What the sovereign debt crisis of Greece has revealed in relationship to gold, the yen and the U.S. dollar is that gold is increasingly becoming thought of as a form of currency by a growing number of people, which is the reason you see it moving in tandem with the U.S. dollar and yen on some days people are looking for a safe haven for their money.
That means there is a lack of faith in all paper currencies at this time, and while the dollar and yen will continue to be considered to be a relatively safe place for people to place their money, gold is growing in influence, and for many, is by far the safest place to put their money in economic times like these.
The Greek debt crisis has brought this to the surface for all to see.
Gold: The New Currency
Wednesday, April 7, 2010
Safety Concerns Drive Gold Prices Up
Greek Sovereign Debt and Liquidity Problems Drive Gold Prices Up
After gold rose well past $1,150 an ounce today before settling below the mark, safety was the key factor driving it, and as ongoing concerns about Greece and the euro continue in the forefront, that will be the case for some time to come.
There appears to be a return to a liquidity crisis in Greece, as Commerzbank is pulling it repos with Greek banks, which coupled with the ongoing withdrawal of funds by consumers, makes this a full-blown problem which really has no where to go but the loss of liquidity.
Once news of this gets out on a larger scale and is understood as to what it means, gold, the yen, and probably the U.S. dollar will be the place investors park their money until the result of this crisis finally plays out.
After gold rose well past $1,150 an ounce today before settling below the mark, safety was the key factor driving it, and as ongoing concerns about Greece and the euro continue in the forefront, that will be the case for some time to come.
There appears to be a return to a liquidity crisis in Greece, as Commerzbank is pulling it repos with Greek banks, which coupled with the ongoing withdrawal of funds by consumers, makes this a full-blown problem which really has no where to go but the loss of liquidity.
Once news of this gets out on a larger scale and is understood as to what it means, gold, the yen, and probably the U.S. dollar will be the place investors park their money until the result of this crisis finally plays out.
Friday, April 2, 2010
Gold Price Ends Week at $1,124
Gold prices going up
The price of gold continues to move up, as it finished the shortened week at $1,124 an ounce, as the U.S. dollar continues to weaken and fears of inflation rising even more than it has weighs on investors.
Gold prices rising continued its trend after the market closed, and it'll be interesting to see where it lies when they open again in the U.S. on Monday. London markets won't open again till Tuesday.
Many gold companies enjoyed the renewed vigor of gold, as many increased in price in tandem with spot gold prices.
Gold prices going up
The price of gold continues to move up, as it finished the shortened week at $1,124 an ounce, as the U.S. dollar continues to weaken and fears of inflation rising even more than it has weighs on investors.
Gold prices rising continued its trend after the market closed, and it'll be interesting to see where it lies when they open again in the U.S. on Monday. London markets won't open again till Tuesday.
Many gold companies enjoyed the renewed vigor of gold, as many increased in price in tandem with spot gold prices.
Gold prices going up
Gold and Alleged Economic Recovery
Gold and Economic Recovery
I get tired of hearing the supposed connection between the increase in price of gold and the alleged economic recovery we're in. Headline after headline connects the two as if there is a relationship between them, and in fact there isn't any.
For the sake of this article, we'll pretend there is an economic recovery, even though there isn't, so we can learn something important here.
First of all, some seem to think because of the sovereign debt crisis in Greece, people and institutions chose to go to the U.S. dollar as a place of safety over gold. That couldn't be further from the truth.
There were actually exception to that assumption, as gold on some days moved up with the U.S. dollar, showing many investors felt gold was the safer of the two.
The reason investors fled to the U.S. dollar most of the time during that period of uncertainty was there isn't enough places in the gold market that kind of money can be placed quickly. At times like those, even though the dollar is weak, it looks better than other currencies, and gold can't seem compete with that type of volume.
Concerning the idea gold is going up because of renewed belief the economy is improving doesn't even make sense. Those writing that nonsense evidently aren't able to distinguish between the sovereign debt crisis and why gold and the dollar reacted like they did.
They write as if they think the sovereign debt crisis in Europe is similar to the economic crisis we've been going through. While there are some similarities, there are a lot of differences as well.
The point is the European sovereign debt crisis is something different, and gold will be treated differently (at least for now) if another country is close to defaulting on its debt.
But in the current economic crisis and response of central banks and world governments to it, gold is set to flourish because of extraordinary debt, the continual printing of money, the resultant debasing of the currency and the need for a place of safety for our capital, or even to have an alternative currency if things completely break down. Oh yeah, there's also that little thing called inflation in the mix.
Those are the factors mainly affecting the interest in investing in gold commodities at this time, not the dubious idea an alleged improved economy is what is driving the interest in gold, Again, it simply doesn't make any sense to make that statement as it has been being made over the last couple of weeks.
If the economy was truly improving, gold would become less interesting and less attractive to investors, and would most likely go down in price as a result; at least under normal circumstances.
But the enormous amount of printed money out there is unprecedented, and it is no longer business as usual, and we're swimming in waters we've never treaded before. That makes gold a solid investment choice for years to come.
I get tired of hearing the supposed connection between the increase in price of gold and the alleged economic recovery we're in. Headline after headline connects the two as if there is a relationship between them, and in fact there isn't any.
For the sake of this article, we'll pretend there is an economic recovery, even though there isn't, so we can learn something important here.
First of all, some seem to think because of the sovereign debt crisis in Greece, people and institutions chose to go to the U.S. dollar as a place of safety over gold. That couldn't be further from the truth.
There were actually exception to that assumption, as gold on some days moved up with the U.S. dollar, showing many investors felt gold was the safer of the two.
The reason investors fled to the U.S. dollar most of the time during that period of uncertainty was there isn't enough places in the gold market that kind of money can be placed quickly. At times like those, even though the dollar is weak, it looks better than other currencies, and gold can't seem compete with that type of volume.
Concerning the idea gold is going up because of renewed belief the economy is improving doesn't even make sense. Those writing that nonsense evidently aren't able to distinguish between the sovereign debt crisis and why gold and the dollar reacted like they did.
They write as if they think the sovereign debt crisis in Europe is similar to the economic crisis we've been going through. While there are some similarities, there are a lot of differences as well.
The point is the European sovereign debt crisis is something different, and gold will be treated differently (at least for now) if another country is close to defaulting on its debt.
But in the current economic crisis and response of central banks and world governments to it, gold is set to flourish because of extraordinary debt, the continual printing of money, the resultant debasing of the currency and the need for a place of safety for our capital, or even to have an alternative currency if things completely break down. Oh yeah, there's also that little thing called inflation in the mix.
Those are the factors mainly affecting the interest in investing in gold commodities at this time, not the dubious idea an alleged improved economy is what is driving the interest in gold, Again, it simply doesn't make any sense to make that statement as it has been being made over the last couple of weeks.
If the economy was truly improving, gold would become less interesting and less attractive to investors, and would most likely go down in price as a result; at least under normal circumstances.
But the enormous amount of printed money out there is unprecedented, and it is no longer business as usual, and we're swimming in waters we've never treaded before. That makes gold a solid investment choice for years to come.
Gold Prices and Unemployment Claims
We've been talking some recently on Everything Gold about the false connections so-called financial reporters are making between alleged improved economic conditions and gold.
The latest example I found was in reference to the U.S. Labor Department reporting unemployment claims dropped to 439,000 last week. This particular writer actually connected this to the reason gold prices rose during the day.
Evidently the reasoning was because gold increased after the data were released, that means the small improvement was good news for gold. It defies belief that someone could be a financial "reporter" and be that clueless.
Even those not that familiar with gold know gold rises on bad news and uncertainty, not on good new. Oh, let's go buy some gold in celebration that everything is okay. Whoever hears that being said? Yet, that's the logic behind this ignorance.
We've been seeing that all over the financial news lately, and thought we would write some on it so those interested in investing in gold don't go around putting their money in the metal because they hear what is perceived as good economic news.
Imagine what that writer was implying: Unemployment claims dropped by a tiny 6,000 last week, so everyone went out to buy gold and caused it to surge in price because of the celebration of that fact. It doesn't get much more ignorant than that about why gold is invested in and what the causes behind it going up in price are.
Gold Investing
The latest example I found was in reference to the U.S. Labor Department reporting unemployment claims dropped to 439,000 last week. This particular writer actually connected this to the reason gold prices rose during the day.
Evidently the reasoning was because gold increased after the data were released, that means the small improvement was good news for gold. It defies belief that someone could be a financial "reporter" and be that clueless.
Even those not that familiar with gold know gold rises on bad news and uncertainty, not on good new. Oh, let's go buy some gold in celebration that everything is okay. Whoever hears that being said? Yet, that's the logic behind this ignorance.
We've been seeing that all over the financial news lately, and thought we would write some on it so those interested in investing in gold don't go around putting their money in the metal because they hear what is perceived as good economic news.
Imagine what that writer was implying: Unemployment claims dropped by a tiny 6,000 last week, so everyone went out to buy gold and caused it to surge in price because of the celebration of that fact. It doesn't get much more ignorant than that about why gold is invested in and what the causes behind it going up in price are.
Gold Investing
Wednesday, March 31, 2010
Gold Rises for Sixth Straight Quarter
Gold Futures Prices
In spite of a somewhat rocky March, goal is poised to rise for the sixth quarter in a row as investors continue to seek safety and and an alternative to paper currencies.
With the latest job report underscoring the continual weak economic conditions we're operating under, as companies shed 23,000 more jobs, led by manufacturing and construction cuts, gold will continue to shine and may be ready for a breakout after the pressures asserted on it in March, especially from the sovereign debt crisis in Greece.
Gold is soaring today, up over $11.30 for the day as of 2:30 P.M. est.
With gold only gaining 0.9 percent in the first quarter, a slight but significant performance in light of the downward pressures on it, I think it's ready to break out again, but that assumes no more confusion and really bad news comes out of the European Union, which is teetering on collapse.
The U.S. dollar, for whatever reason, became the investment of choice for safety-minded individuals when the Greece debt crisis became known, and gold prices suffered as a result. That could happen again if another country becomes in danger of defaulting.
In spite of a somewhat rocky March, goal is poised to rise for the sixth quarter in a row as investors continue to seek safety and and an alternative to paper currencies.
With the latest job report underscoring the continual weak economic conditions we're operating under, as companies shed 23,000 more jobs, led by manufacturing and construction cuts, gold will continue to shine and may be ready for a breakout after the pressures asserted on it in March, especially from the sovereign debt crisis in Greece.
Gold is soaring today, up over $11.30 for the day as of 2:30 P.M. est.
With gold only gaining 0.9 percent in the first quarter, a slight but significant performance in light of the downward pressures on it, I think it's ready to break out again, but that assumes no more confusion and really bad news comes out of the European Union, which is teetering on collapse.
The U.S. dollar, for whatever reason, became the investment of choice for safety-minded individuals when the Greece debt crisis became known, and gold prices suffered as a result. That could happen again if another country becomes in danger of defaulting.
Subscribe to:
Posts (Atom)