Article from TheStreet.com
Gold price Falls as Dollar Rises
Alix Steel
01/21/10
NEW YORK (TheStreet) -- Gold prices fell toward $1,100 an ounce Thursday after President Obama vowed to shake up Wall Street with strict limits on bank's trading activity. Also, the U.S. dollar hit a five-month high against the euro. The author attributes this to a rising U.S. dollar, making dollar-based commodities like gold more expensive to buy in other currencies, often creating the inverse correlation between prices and the dollar.
Steel also states that increased worries over Chinese credit tightening is contributing to gold's slide. China has already ordered its banks to curb lending, but these inflationary figures could put more pressure on the country to restrict lending. An end to free money from China, which has stimulated the global economy, will continue to curb investor interest in purchasing gold as an alternative asset.
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Thursday, January 21, 2010
Wednesday, January 20, 2010
A Very Good Reason To Hold Gold
Federal Deficit in the Danger Zone - Kiplinger.com
As federal spending continues to rise, a crushing mountain of debt looms.
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A very good reason to hold gold!
As federal spending continues to rise, a crushing mountain of debt looms.
Posted using ShareThis
A very good reason to hold gold!
Thursday, January 14, 2010
Article from TheStreet.com : Why Gold Is the Best Money
Why Gold Is the Best Money: Opinion
Jeff Nielson
01/14/10 - 11:14 AM EST
By Jeff Nielson of Bullion Bulls Canada
Among the myths being constantly circulated by gold bears is that gold (and silver) only perform well in high-inflation environments. As with many of the pronouncements of the gold bears, this is another case of them drawing conclusions based upon their own faulty understanding of markets, history, and precious metals, themselves.
READ THIS ARTICLE
Jeff Nielson
01/14/10 - 11:14 AM EST
By Jeff Nielson of Bullion Bulls Canada
Among the myths being constantly circulated by gold bears is that gold (and silver) only perform well in high-inflation environments. As with many of the pronouncements of the gold bears, this is another case of them drawing conclusions based upon their own faulty understanding of markets, history, and precious metals, themselves.
READ THIS ARTICLE
Thursday, January 7, 2010
GOLD PLAYS IN CHILE
According to Yahoo’s In Play, January 7, 2010, New Gold (NGD) announced that it will enter into a partnership with Goldcorp Inc. (GG), and exercise the right of first refusal to acquire 70% of the El Morro copper-gold project in Chile for $463 million. NGD provided notice to Xstrata Copper Chile, a subsidiary of Xstrata (XSRAF.PK), of the exercise of its right of first refusal. New Gold is currently a 30% joint venture partner in El Morro with Xstrata. Goldcorp will loan $463 M to New Gold to fund acquisition. Once New Gold has acquired the 70% interest through a subsidiary, it will sell that subsidiary to Goldcorp. At the same Goldcorp will pay $50 to New Gold and the parties will amend the terms of the existing El Morro Shareholders Agreement to further increase the value of New Gold's 30% interest in the El Morro project.
Tuesday, January 5, 2010
DUMP GOLD?
I want to make it perfectly clear that this is not my opinion, but I strive to be impartial in the articles I post on this blog. If you want my opinion go here.
In an opinion article published on Forbes.com, Jan. 5, 2010, Keith McCullough, Chief Executive Officer of Research Edge said “Sell your gold. Buy some dollars.” It is his belief that the Fed will raise rates sooner than you think, and gold has peaked. He has been bullish on Gold since 2003. But on the date of this publication, Research Edge moved forward to a zero-percent position in their gold asset allocation. Their analysis showed immediate-term trade resistance for the price of gold at $1137.
The decade high for the gold was established on Dec. 2, 2009, and McCullough believes Gold may not top that high until the Fed stops raising interest rates. Even though the consensus is that the Fed is on hold until 2012, and they are long on gold. However, McCullough’s research team remains outside of the consensus. McCullough’s team thinks they have some credibility in reversing their own bearish U.S. dollar stand. It was the same team that wrote the dollar thesis earlier, last year.
McCullough stated that Research Edge did not make this prediction for the sake of being contrarian. They made the call because was their belief in the increasing probability of their being right. They even went as far as to sell their position in SPDR Gold Shares and buy the Powershares DB US Dollar Index Bullish in their virtual portfolio. Both of these moves are confirm the same investment thesis. McCullough’s group says “Sell your gold. Buy some dollars, and start moving forward right now."
The rest of this article can be read here.
In an opinion article published on Forbes.com, Jan. 5, 2010, Keith McCullough, Chief Executive Officer of Research Edge said “Sell your gold. Buy some dollars.” It is his belief that the Fed will raise rates sooner than you think, and gold has peaked. He has been bullish on Gold since 2003. But on the date of this publication, Research Edge moved forward to a zero-percent position in their gold asset allocation. Their analysis showed immediate-term trade resistance for the price of gold at $1137.
The decade high for the gold was established on Dec. 2, 2009, and McCullough believes Gold may not top that high until the Fed stops raising interest rates. Even though the consensus is that the Fed is on hold until 2012, and they are long on gold. However, McCullough’s research team remains outside of the consensus. McCullough’s team thinks they have some credibility in reversing their own bearish U.S. dollar stand. It was the same team that wrote the dollar thesis earlier, last year.
McCullough stated that Research Edge did not make this prediction for the sake of being contrarian. They made the call because was their belief in the increasing probability of their being right. They even went as far as to sell their position in SPDR Gold Shares and buy the Powershares DB US Dollar Index Bullish in their virtual portfolio. Both of these moves are confirm the same investment thesis. McCullough’s group says “Sell your gold. Buy some dollars, and start moving forward right now."
The rest of this article can be read here.
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