Posts On Gold

3 Possible Catalysts for a Significant Rally in Gold This Year

The gold market has gotten 2016 off to a good start. Investors have been buying the yellow metal as uncertainty over global economies and equities intensified. The interest seen in gold at the beginning of the year could potentially be just a glimpse of things to come. Gold appears to have found a meaningful bottom, and the market may be poised to resume its longer-term uptrend. While the possible reasons for a rally in gold are numerous, here are three potential issues that could potentially... Continue Reading

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Gold and the Presidential Cycle

According to the theory of the Presidential election cycle, U.S. stocks experience weakness in the year after the election. The cycle then may revert back to stronger equities until it is time for the next election. What may drive initial weakness in equities followed by a rebound? The answer is reforms, new policies and a degree of uncertainty. Think about it this way: When a newly elected President takes office, he or she may look to deliver on plans discussed on the campaign trail, even... Continue Reading

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The Coming Bear Market in Stocks

In general, a bear market is a market that has declined twenty percent from its high. This drop becomes especially significant when multiple stock indexes are down twenty percent or more and when these declines have lasted for at least several weeks. Are U.S. stocks currently in a bear market? No. Are global equity markets in bear market statuses? Yes. Could U.S. stocks be headed for a bear market? Absolutely. While no one can see the future, the domestic stock market could potentially be at... Continue Reading

Gold as a World Currency

It’s no secret that gold, silver, and other precious metals are viewed as the embodiment of wealth. After all, these precious metals have been used by man for thousands of years to facilitate exchange, back paper currency, and protect assets. Not too long ago, the United States and other parts of the world were on the gold standard in which every unit of currency had to be “backed up” by gold. Could a return to a gold standard be seen? Could gold simply become a... Continue Reading

3 Simple Reasons For Dollar Downside

It’s no secret that the dollar and gold often exhibit a negative correlation. Because gold is a dollar denominated commodity, a weaker dollar makes gold relatively less expensive for foreign investors while a stronger dollar makes gold relatively more expensive. It’s also no secret that the dollar has been losing value for years. In our view, loss of value is inevitable when it comes to fiat currency. Unfortunately for users of fiat currency, as their value declines they buy less goods and services. While all... Continue Reading

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The $20 Saint-Gaudens Gold Double Eagle

When investing in physical gold bullion, there are many product choices available to investors. These products include gold coins, bars and rounds of various weights. Gold bullion products are produced by many mints, including government mints such as the U.S. Mint and private mints as well. One example of a fine gold coin produced by the U.S. Mint is the $20 Saint-Gaudens double eagle. These double eagles are highly regarded and are a favorite among both collectors and investors alike. If you are looking to... Continue Reading

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Could A Rebound in Oil Drive Gold Prices Higher?

The ongoing decline in crude oil prices has been covered extensively by the financial media. Over the last year or so, crude oil has fallen from over $65 per barrel to under $30 per barrel, losing over half its value in the process. The recent move towards $30 per barrel has shaken stock markets and driven increasing volatility and risk aversion. What Might this Mean for Gold? It is no secret that gold and oil, or “black gold,” often exhibit a positive correlation. As crude... Continue Reading

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All Aboard!

Gold prices exploded today hitting a 12 month high in the process. Gold soared over $54 per ounce and at the day’s highs was over the $1260 per ounce mark. This highly bullish price action would seem to confirm what we have suspected for some time. The gold train is leaving the station-and fast! Gold prices have staged a very solid looking upside breakout in recent weeks and could potentially be headed sharply higher from current levels. Even though gold has risen by over $100... Continue Reading

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Demand for Gold Soars as Stocks Tumble

Gold is often bought to hedge against economic, geopolitical or currency crises. Gold has a tendency to move in the opposite direction of investor sentiment and often rises in the face of declining risk assets. Investors’ tendency to flock to gold during turbulent and uncertain times was quite evident the last several weeks. In fact, the U.S. Mint reported significant American gold eagle coin sales in January, up a whopping 53 percent from last January. The mint reported sales of 124,000 ounces of American gold... Continue Reading

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How Would You Feel If You Had To PAY YOUR BANK To Hold Your Money?

The Bank of Japan on Friday “called down the thunder” by announcing an unexpected move to negative interest rates. What exactly does that mean? It means that institutions will now have to pay the central bank to park excess cash reserves over and above reserves required by regulations. Shouldn’t the bank be paying the depositor in the form of interest? The short answer is yes. Desperate times, however, call for desperate measures. The Bank of Japan is seemingly in desperation mode doing anything it possibly... Continue Reading