Investor: CASE FOR GOLD
The Gold Market: Making sense of chaos
Friday, 11th November 2011
The third quarter began well for gold and proceeded to get better until September 21 when it seemed to step into space, falling 20% ($280) in just a few days. This event demonstrated how sensitive gold is to perceptions of central bank policy. What happened?
Why is the gold price down when there is so much financial turmoil?
Friday, 30th September 2011
It is never easy to say with certainty what is happening day-to-day in the gold market. By nature, this is a private market which is opaque by design...those who own gold do so in part because it affords anonymity and independence from the conventional financial system. That said, here is our best guess as to the reasons behind the 20% decline in the spot price of gold from its recent high above $1900 to a low of $1535.
Does gold hedge against inflation?
Tuesday, 27th September 2011
Yes, depending on what you mean by inflation. Most people assume it means increases in the CPI - Consumer Price Index. Using this argument, gold's high of USD$852 per ounce in 1980 should equate to an inflation-adjusted high of about $2,400 today.
BASIC FACTS ABOUT GOLD
Thursday, 8th September 2011
There are about 5 billion ounces of above ground gold supply worth about USD 9 trillion at current prices. Less than half of this is in deliverable, investment-grade form. The above ground gold supply is growing at about 1.5% annually, the 300 year average.
The Gold Market
Wednesday, 10th August 2011
In our last report in early May, we suggested that investors buckle up in preparation for a run in the gold price. Events have unfolded as expected. Gold has now established its own path as the premier vehicle for the preservation of wealth independent of currencies and other asset classes (whether commodities, equities or bonds). The decision in early August by the Swiss and Japanese central banks to intervene in the markets to weaken their currencies has served notice that strong currency alternatives to gold will not be tolerated. And gold is once again the preferred reserve asset of the world's central banks: South Korea, Thailand and Kazakhstan joined the ranks of buyers in the last 30 days.
