By the time you read this, you will have begun celebrating Christmas with family or friends, and persuaded yourself that the world, as recently predicted, did not end.  Gold traders must have felt the same way because the yellow metal closed up $9.00 last Fridayat a price of $1,657.00 per ounce.  Positive U.S. data and thin trading have had a negative effect on gold prices in the last several days.  Gold closed below the 200-day moving average and prompted investors to sell off their positions.  The Bureau of Economic Analysis (BEA) reports that third quarter GDP growth was revised upward… Read more...
As we move closer to the end of 2013, and official fiscal-cliff argument toggles back and forth, it’s all too easy to sink into despair. Particularly if you’re a precious metals investor.  What in the world happened to gold predictions of $1,800 by the end of this year?  And what in blazes became of silver predictions surpassing the all-time high of $52 per ounce reached in 1979?  Are precious metals about to tank? We need to step back and look at the total picture.  In doing so, as recently as a month ago, analyst Jeff Clark offered a graph of… Read more...
Isn’t it always the case?  The price of gold dips, and investors new to the yellow metal begin panicking. And media pundits begin moaning that it’s all over for gold. Seasoned gold investors know better though.  True to form in the last few days, gold took quite a dip, flirting with a downward slide to the 1600s on the exit of longs and an increase in short positions.  Yet here we are after a quick turnaround late Friday and a healthy follow-through today.  And here gold sits at $1,713, up $9.00 per ounce. What in Sam Hill happened?  Well, for… Read more...
After another energetic climb to the upside, gold backed down last week.  Much of this downside trading, as we’ve suggested, had to do with fiscal-cliff uncertainty.  Gold responded to the confusion by clinging to the low 1700s.  Today, precious metals remain slightly above this level with gold up $2.00 at $1,715 and silver up $.21 at $33.65.And if gold winds up making small moves back and forth all this week, the in-place two-step is sheer mimicry of the stalemate between either side of the aisle. Like school children arguing over who’s out in a game of tag, each party blamed… Read more...

At the Very Edge of the Fiscal Cliff

Friday, 30 November 2012
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Published in From The CEO
Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectlyand applying the wrong remedies. - Groucho Marx It’s like a stormy marriage, this fiscal-cliff negotiation. Isn’t it?On again, off again, on again, off again.  Immediately after every session, each party throws up his hands, and rushes to vindicate himself with the media like a sullen spouse making his desperatecase to a marriage counselor.  Of course the difference is in this case you and I happen to be the marriage counselor.  But, unlike a real marriage counselor, you and I have absolutely no say in the matter. … Read more...

Gold Interrupted

Wednesday, 28 November 2012
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Published in From The CEO
Gold dropped a whopping $23.00 today, closing out the trading day at $1,720 per ounce.  Silver, taking its cue from its yellow metal big sister, lost $.28 and wound up at $33.73 per ounce.  Two possible causes have been put forth for this distinctly unglamorous day for precious metals.The first cause has been attributed to the usual (and most current) suspect – the so-called fiscal cliff. The second cause is probably a red herring.  For today at least, it’s been named “the fat-finger” trade.  Let’s look at both of these mysterious explanations for what happened today. According to the first… Read more...

Is Gold Percolating or Just Stalling?

Monday, 26 November 2012
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Published in From The CEO
Thanksgiving was a week of confusion for gold.  It range traded between $1,712 per ounce and $1,752 per ounce on mostly technical activity.  Yet uncertainty related to the U.S. fiscal-cliff discussions seems to have made November the strongest month of gold purchases since last January at the U.S. Mint.  It reports sales of 56, 000oz of gold and 2,265,500oz of silver so far. Still, the yellow metal will have to take out the next resistance level of $1,780 for professional analysts to become really excited.  And, according to UBS Investment Research, much hinges on the “longevity” of those investors who… Read more...

Gold moves up in price. George Soros buys.

Friday, 23 November 2012
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Published in From The CEO
As we dive into the Thanksgiving holiday and the dollar slips, gold has pushed up to $1,752 per ounce.  The taking out of the 50-day moving average has proved a game-changer for the yellow metal. But the even bigger news – news that should provide guidance if not consolation for the average investor – is that George Soros has stepped up to the plate with a 1.32 million share increase of his investment in The SPDR Gold Trust.  “Soros Fund Management LLC increased its holdings by 49 percent in the third quarter, U.S. Securities and Exchange Commission filings show,” according… Read more...

Bernanke Speaks. Time for Us to Listen.

Wednesday, 21 November 2012
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Published in From The CEO
Yesterday, Fed Chairman Ben Bernanke delivered a speech at the venerable Economic Club of New York.  In case you don’t know what that 105-year-old club is or why it’s so venerable, know that its members are high profile executives from business, industry and finance.  The sole purpose of the club is to promote discussion about the important economic issues of the day.  And who better to promote that kind of discussion than Ben Bernanke? While the Fed chief’s remarks, on the face of it,seemed like platitudes of interest solely to a lunch bunch of economists, they are as significant an… Read more...

Gold and Corporate Jitters

Monday, 19 November 2012
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Published in From The CEO
As I write this morning, gold is up $20.00, settling in at a healthy and resilient spot price of $1,733 per ounce.  Anything can happen up until the market closes, but it’s important for investors to understand the forces driving the market today. On the one hand, world economies are faced with instability in the Gaza Strip. Hamas has fired rockets into Tel Aviv, and Israel has retaliated by continuing to bomb “terrorist” homes.  The Jewish nation, now striking a wider range of Palestinian targets, has made it clearthat, unless the rocket attacks are halted, it could launch a ground… Read more...

The Gold Price – Why the Hold Up?

Friday, 16 November 2012
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Published in From The CEO
It bears repeating that no commodity or stock moves in a straight line – up or down.  Gold moves up; it moves down.  Some worry; some become overjoyed.  Some see higher prices for the gold.  Others despair over what they think is a bearish trend for the yellow metal.  It’s fascinating to see two analysts look at the same data and see opposing trends.  It’s become so confusing that Bloomberg decided to poll analysts.  What they found is that 25 of 33 analysts the publisher surveyed expect prices to rise next week whereas three see gold dropping in price.  To… Read more...

News from Hong Kong

Wednesday, 14 November 2012
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Published in From The CEO
Once every year, members of an elite group convene in a high-profile world city to talk about gold.  When they talk, the world financial community and the media listen.  This is pretty amazing when you consider the group is comprised of only 139 members.  I’m talking about the London Bullion Market Association, more readily known by its abbreviation -- LBMA.LBMA is a trade association headquartered in London that, according to its website, represents the wholesale market for gold and silver in London.  The organization regularly delves into and reports on refining standards, good trading practices and the market at large.… Read more...

The Most Reliable Safe Haven Investment

Monday, 12 November 2012
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Published in From The CEO
We continually stress the gold’s upsidebecause investors are almost always looking to make money.  And the current bull market invariably provides abundant upside news. Having said that, we want you to appreciate an important trend in the gold market.   Just a few days ago, HSBC precious metals analyst Jim Steel began his daily newsletter with the following remark:  “Gold rallied despite a drop in risk appetite.”  And just today, an article in The Wall Street Journal begins with this comment: 
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“Gold moved higher in Asia Monday, with some analysts expecting more upside potential for prices in the near-term… Read more...

Gold and the Fiscal Cliff

Friday, 09 November 2012
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Published in From The CEO
As gold resumes its climb upward, it’s faced with another challenge from the U.S. economy. Now that the election is over and America has given President Obama a mandate for another four years, the issues that have viciously divided America still plague the nation.  Unless the President and Congress can agree on a way out, severe tax increases and spending cuts will go into effect on January 1, 2013.
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As a result, American workers on average will see their take-home pay decline by more than $2,000 in 2013 through increased payroll taxes.  Proposed cuts will trim government spending… Read more...