Archive for the 'Gold Investment' Category

Date: November 28th, 2007, Filed under Gold Investment

About 1 year ago, I posted an article titled Gold de-hedging and the short term effect on gold’s dollar value. I was watching the dehedging phenomenon with gold in 2006, which was a very coordinated and systematic process over 2006. It continued into the first quarter of 2007, and started accelerating since then. I’m writing this article specifically because we hit #2 on Google for “Gold Investment” and #2 on Google for “Gold De-hedging” and I am getting a bunch of emails requesting information.

A year later, we now have top news regarding increased gold de-hedging, with the gold hedge book at its lowest level since 1992. In the third quarter of 2007 we saw a markable increase, one that is not expected to slow as the fourth quarter hits.

According to my information, the gold de-hedgers chopped almost 15% of their hedges in the second quarter alone. Some of the largest gold hedges are completely de-hedging all their positions by year’s end (I believe as much as 40% of hedges will be gone).

Read the rest of this article at the gold investment site.

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Date: November 26th, 2007, Filed under Gold Investment

The day doesn’t end without at least 3 emails from family, friends and customers who are now starting to listen to me. For 3 years, I’ve been the contrarian “sky is falling” housing bubble (and stock bubble, and commodity bubble) advocate, with few if any listening. Now the news is admitting the market’s problems, and some old media organizations are backtracking to the start of it all.

I was the sole Greenspan-detractor in 2002 of anyone I knew. Now everyone is bashing the man that was king.

The most common email I get is “So what do we do???” I’ve been preparing a Flash-based applet that lets people enter all their facts (income, expenses, mortgage, credit, leases, etc, etc), and tries to come up with an answer. Of course there is no one-size fits all solution, but there are generalities for all income and expense levels that should give you a foot in the door to escape the credit crunch.

Read the rest of this at the gold investment site.

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Date: November 24th, 2007, Filed under Gold Investment

Ron Paul, Presidential candidate for the Republican party, wants to do away with the Federal Reserve, fiat currency (meaning money that is backed by nothing), and return to a currency backed by something.

GC, a reader, posted the following reply to a recent article I posted:

I read these comments all the time about the federal reserve system with its extended tentacles worldwide, but NO ONE even the worlds leading economists have come up with an alternate solution
that could be implimented without causing a worldwide collapse of the financial markets.

Read the rest of this article at the gold investment site.

Comments: 1

Date: November 14th, 2007, Filed under Gold Investment

It has been a LONG time since I updated my gold versus everything charts or graphs. It is a lot of work. I really love looking at them, though, so I am ready to resurrect it — with your help.

Instead of using my own Excel spreadsheet to keep track of information, I created a Google Docs Spreadsheet that everyone can browse, copy from, and utilize. I am asking for your help to provide information for this chart. If you’re ready to help, I will add you as an editor to the spreadsheet, which is 100% online.

Read this entire article at the gold investmenting site.

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Date: October 1st, 2007, Filed under Gold Investment

Gold’s recent price-rise has been connected to the fall of value in the US dollar due to the recent federal rate drop by the Fed in September, which is a price-rise that I concur with, but I believe is limiting in being the only reason. Some analysts are also connecting the rise in the currency-price of gold as connecting with the Indian marriage season, where families buy a significant amount of gold jewelry that is used in the wedding ceremony and as a form of early-savings for the newlyweds, but this too is not enough to try to understand the reason for gold’s current boom, and what may lay ahead in the future.

Read this entire article at the gold investment site.

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Date: September 26th, 2007, Filed under Gold Investment

Over at the new mises.com forums, I posted a reply to a topic titled The Myths surrounding the phenomenon of inflation…:

The problem in defining what causes inflation is that the two parties generally do not agree what the definition of inflation is.

Austrians, such as most of us, believe that the definition of inflation is “the increase in money supply,” therefore the cause of inflation is “increasing the money supply.” Non-Austrian Economists tend to believe that the definition of inflation is “the increase in prices in a market,” and is caused by an increased demand for a market, or a decreased supply of that market (services or product).

Read this entire article at the gold investment site.

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