Why Procrastination is Harmful to Your Wealth

Monday, 29 October 2012
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Published in From The CEO
If you’re hanging in for the perfect gold price, you’ll never find it.  Better to stop thinking of yourself as an investor and find something else to do.  And what is aperfect price anyway?  If gold goes up, you’ll be unhappy because you’ll think you missed a good thing on the way up.  If gold goes down, you’ll be unhappy because you’ll think the yellow metal has now turned bearish on you. As we’ve stressed several times in the Investor’s Corner, if you buy the physical metal while the price of gold consolidates, you’ll be making a smart decision.Let me… Read more...

The World Gold Council 3rd Quarter Report

Friday, 26 October 2012
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Published in From The CEO
As the price of gold fluctuates, it’s useful to step back occasionallyand look at the big picture with respect to its price movement and how supplies are distributed throughout the central banks of the world.  We need to remind ourselves that paper money remains plentiful in our era of monetary easing, and that gold remains rare.  As financial writer Philip Coggan points out, all the gold that’s ever been mined in the world can fill a cube with sides the size of a tennis court. A good way to take this larger perspective just now is to review The World… Read more...

Paper Promises: A Review

Wednesday, 24 October 2012
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Published in From The CEO
It should be clear to even the most casual observer of international affairs that ours is a world plagued by debt.  The 2008 financial crisis was brought on by too easy access to mortgages that people couldn’t afford.  The economic crises in Spain and Greece occurred largely over debts these nations could not afford to pay back.  And guess which nation is the largest debtor nation in the world?  You guessed right:  The United States – to the tune of more than $16 Trillion.Let’s just repeat that, and, this time, express this debt as a pure number, one onerous digit… Read more...

The Fiscal Cliff

Monday, 22 October 2012
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Published in From The CEO
In the first two days of next year, we will see large tax cuts expire which were passed in 2001 and 2003.  As a result, the nation will undergo cuts to both defense and nondefense programs.  Taxpayers will notice a cut in pay during the first two weeks in January.  The lowest income tax rate is slated to rise from 10 percent to 15 percent. And the highest tax rate is slated to rise from 35 percent to 39.6 percent.  Tax rates on dividend rates now at 15 percent are slated to rise to 39.6 percent. The majority of defense… Read more...

A Timeout for Gold

Friday, 19 October 2012
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Published in From The CEO
In our last column, we mentioned that the market has already factored in the news about QE3.  Gold bugs need not feel discouraged though.  Quantitative easing is still the single biggest factor driving the market.  Just now though, the gold market is weighing the effects of other news -- counting all the other chips on the table, so to speak. During this recount, the yellow metal needs additional news to push past the wait.  But as long as our Fed and other central banks choose to print paper money, it’s not a matter of if for gold.  It’s a matter… Read more...

Gold: If Not Now … When?

Wednesday, 17 October 2012
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Published in From The CEO
You can be a specialist in reading investment fundamentals and technicals, or you can be a fortune teller.   Here’s the difference. The specialist works very hard, consults a variety of sources, talks with other specialists, and makes very careful determinations about where he thinksthe market is going.  The fortune teller consults no other sources, talks with no other fortune tellers and makes a very certain prediction about the market.The specialist often gets it right – but within certain parameters. He frequently revises his judgments.  The fortune teller is always right (or always wrong) and never revises his predictions. Here at… Read more...

Who’s In Charge – Fed Doves or Hawks?

Monday, 15 October 2012
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Published in From The CEO
Just when we thought everything was alright.  Few breaths were taken in the world financial community last September 13 until Ben Bernanke surfaced from the Fed FOMC’s annual meeting on monetary policy at Jackson Hole, Wyoming.  Then he made his fateful announcement:  The Federal Reserve would now execute its mandate to print money as it deemed necessary to boost U.S. employment figures in particular, and the economy in general.  Welcome America, to QE3! Once Bernanke made his announcement, several things became clear:  a) the price of gold would increase, but not without some speed bumps along the way. b) monetary… Read more...

The View from Abroad

Friday, 12 October 2012
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Published in From The CEO
Here at The Investor’s Corner, we try to tap the views of experts from around the world, not simply from those here in the United States.  After all, gold represents real money to the entire world, not just to the U.S.  Still, it’s all too easy to get caught up in our own point of view, particularly since the United States is the world’s third largest consumer of gold (India is the first, and China is second); and the US Dollar is the principal currency of all international transactions. Today, as gold hovers quietly around the $1,765-per-ounce level, let’s take… Read more...

The October Price Dip

Thursday, 11 October 2012
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Published in From The CEO
Taking its cue from the euro, Gold backed off its important $1,800 psychological level.  The yellow metal wasn’t helped at all by hedge fund selling.  As we’ve stressed a number of times here at The Investor’s Corner, hedge funds like to take short-term profits.  Hedge fund managers are highly opportunistic, and accumulation for the long term is ordinarily not part of their game.  Rather than be deterred by the price drop, you should view it as an opportunity.  Better to buy and wait than wait and buy.  Based on most current predictions by experts, the current price of $1,765 per… Read more...

Gold and U.S. Unemployment

Sunday, 07 October 2012
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Published in From The CEO
On Friday, October 5th, gold took a step back a few notches on a surprising announcement from The U.S. Bureau of Labor Statistics.  The September rate of unemployment in the U.S., decreased to 7.8 per cent, and the country added 114,000 nonfarm jobs.  For the first 8 months of 2012, the unemployment rate held to a narrow range between 8.1 and 8.3 percent.  The actual number of unemployed persons, at 12.1 million, decreased in September by 465,000. Gold dropped by almost $20.00 on this news because the markets reacted to what seemed like good news after more somber expectations of… Read more...

Gold at the Crossroads

Thursday, 04 October 2012
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Published in From The CEO
Although our glorious Fed has given gold a ticket to ride with quantitative easing, nobody said it would be an easy ride.  As we’ve pointed out on numerous occasions here at The Investor’s Corner, there will be encouraging starts and disheartening stops along the way.  In the parlance of market technicians, those starts and stops express themselves numerically as support and resistance points.   But make no mistake – support and resistance points invariably relate to market developments and events. Gold’s challenge this morning weighs in at a $1,780 per ounce price for gold.  That number now asserts itself as an… Read more...

Gold and Oil: A Misunderstood Alliance

Sunday, 30 September 2012
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Published in From The CEO
In some investor circles it’s been an article of faith that there’s some magic relationship between gold and oil.  Many have felt if one of these hot commodities starts a ride up in price, we should look to the other for an equivalent bump.  And the reverse has been held to be true also. If one of these commodities slides in price, we should look to the other for an equivalent ride down. This relationship is most often explained as being represented by a ratio.  And the magic number most often put forth for the ratio is 14.  So when… Read more...

What If All the Gold Gurus Are Dead Wrong?

Thursday, 27 September 2012
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Published in From The CEO
You’ve been watching gold for a long time now, and it’s hard to believe this bull market’s going to last.  You’ve also been listening to the buzz from well-respected gold gurus about how the price of gold is headed to the moon.  In fact, just this morning you might have spotted a quote from noted French investment fund manager, Jean-Marie Eveillard who, in an interview with King World News assures us that “$15,000 gold would not be absurd.”  No, that’s not a misprint.  You read it right -- $15,000 per ounce!  Now Eveillard is nobody’s fool.  He’s received two prestigious… Read more...

Put a Silver Bullet in Your Portfolio

Tuesday, 25 September 2012
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Published in From The CEO
It’s time for another reminder about silver.  At today’s close of $33.995 per ounce, and with a current gold:silver ratio of 51.60, we just can’t ignore the gray metal.  And neither should you. In the precious metals family, gold is the child that just has to grab all the media and investor attention.  As a result, every once in awhile we feel obliged to put forth a wakeup call about gold’s underestimated sibling – silver.  Silver is more volatile, and exhibits more velocity than gold in a bull market.  And silver is more tied than gold to a very conspicuous… Read more...
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