Precious Metals

Gold’s Black Market?

"Have investors really lost faith? We read that gold demand in Asia and India remains very strong and informal reports from gold buyers (for physical gold) seem to indicate that it is difficult to buy gold at any price. Silver, not much better. One explanation for this would be that the paper market and the physical market are diverging. The paper market, according to those who see this crash as manipulated, is easy to push down. The physical market might reject these manipulations were it a mark-to-market operation. But it is not. The physical price of gold is apparently fixed twice a day by a consortium of wise men." Continue reading →

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CNBC: So Gold Crashed. Now What?

"These days it seems like everyone is running from gold as fast as they can. Bank of America just removed—perhaps a little late— its $2,000 price target. 'Gold capitulation: No current technical or fundamental support for gold prices,' Bank of America's headline blared. 'Even the most fierce gold bulls must be feeling sheepish after bullion tumbled its most in 30 years, raising questions about gold's value as part of an investor portfolio,' Reuters notes. You can almost smell the fear and loathing of the shiny metal. To some investors, however, the sound of the stampede is not a signal to run with the herd. It's a signal to start jogging the other way." Continue reading →

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A Telling Gold Anecdote From Hong Kong

"Went to Hang Seng bullion counter yesterday. The line was out the door. It took an hour wait to see a teller. When I asked if people were buying in the dip or selling in panic, she told me that they haven't had once ounce of gold sold back to them all day. She told me they have sold more gold in 24 hrs than they normally do in 3 months. Yes, there was a lot of extra security. The guy in front of me bought over $1 million USD in gold. He paid in cash and walked out of the door with the bullion in a Nike bag. Amazing. [..] Here, the man would be arrested and jailed just for having his own money in cash. Oh, and the cash would be stolen." Continue reading →

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Bill Bonner: Argentina’s monetary and economic mismanagement

"It is always a pleasure to visit Argentina. It is a country where economic disaster stories are daily life....where economists' daffy theories are government policy...and where everyday citizens have to figure out how to deal with a monetary system that is half-mad...and half merely incompetent. When we are here, we need to spend pesos...especially out in the country, where people's math skills are not as well developed as they are in Buenos Aires. But any serious purchase - say, if you're buying an apartment - requires dollars...either on top of the table or underneath it. So, you have to be prepared." Continue reading →

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As Gold Declines Will Stocks Fly?

"We often write of directed history, the idea that powerful forces create conditions for the policies that they want to implement. When it comes to money metals, the idea would be to drive down metals prices while simultaneously affirming that these same metals are simply not a good investment. They are barbarous and whatnot. At the same time as precious metals prices are falling, stock indexes are rising – presumably at least in part because of the pump priming by central banks that are printing great gouts of money. Some of this money gets stuck in bank coffers but a fair amount is obviously finding its way into various stock markets." Continue reading →

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Doug Casey: The Gold Crash Is Not What Either Bulls or Bears Are Telling You

"I don't expect it to drop much more, and I'd be very surprised at a drop below $1,000 an ounce, but there is no law of nature preventing it from doing so. All markets fluctuate. People who get panicked are overcommitted... or maybe they shouldn't be in the market because they're not psychologically suited for it. The problem is that government currency debasement practically forces everyone to be in the market, just to try to stay ahead of inflation. You can't time market bottoms, but you've got to play the odds. If I were going to sell anything now, I wouldn't think of selling my gold or gold stocks." Continue reading →

Continue ReadingDoug Casey: The Gold Crash Is Not What Either Bulls or Bears Are Telling You

Bill Bonner: Is this a major change of direction for gold?

"Everyone believes the gold market has reversed direction. The bull market of the last 14 years has finally ended. It's all downhill from here, they say. But if that is true, what else will have to be true? The last bull market in gold ended when the Fed changed course. Arthur Burns was replaced by Paul Volcker. A loose money policy became a tight money policy. By the end of the bear market in gold there was hardly a single gold bug who was still sober or still solvent. But what's the Fed doing now? Has it reversed course? Has Ben 'Bubbles' Bernanke been replaced with a tough-as-nails inflation fighter? Has the FOMC vowed to stop printing money?" Continue reading →

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John Paulson’s Gold Bet Loses Almost $1 Billion In Rout: Chart of Day

"Hedge-fund manager John Paulson’s wager on gold wiped out almost $1 billion of his personal wealth in the past two trading days as the precious metal plummeted 13 percent. Gold’s tumble since the start of the year has cut his riches by $1.52 billion on paper. Paulson started the year with about $9.5 billion invested across his hedge funds, of which 85 percent was in gold share classes. Paulson is sticking with his thesis that gold is the best hedge against inflation and currency debasement as countries pump money into their economies, according to the New York-based firm, which manages about $18 billion." Continue reading →

Continue ReadingJohn Paulson’s Gold Bet Loses Almost $1 Billion In Rout: Chart of Day