For the second straight day, Gold has repeated last week’s pattern of defying its own customary summer trading doldrums. After a precipitous sell-off that knocked the yellow metal down to $1,298, it closed Thursday at $1,320 per ounce, up $19.00 from the previous day’s close. Additional sanctions on Russia, coupled with Israel’s just announced invasion of Gaza, have led investors to turn to gold as a safe haven. An out-of-control Dow at high prices has proved a spinning merry-go-round, much too difficult to mount for the unsure investor now looking for stability and safety.
Published in Gold Investing
Wednesday, 16 July 2014

Gold Slips Below $1,300

It’s been a brutal week for gold, with prices finally stabilizing marginally below $1,300. On Monday gold dropped 2.3%, the largest one day drop in all of 2014 so far. Gold prices bounced off lows in early trading on Wednesday, up $3.44 to $1,298.07, while silver was up $0.05 to $20.72.
Published in Gold Investing
There she goes again, surprising the daylights out of investors and market watchers, dashing expectations for another sleepy summer trading season! The scorned orphan of the financial community ratcheted up to yesterday’s London fix of $1,322.50 per ounce, and became its own hard act to follow at today’s London fix of $1,343.25. As I write, gold is now hovering at $1,337.00 per ounce. You go, Gold!
Published in Gold Investing
Wednesday, 09 July 2014

Gold Steady on Demand for Bullion

Gold traded mostly sideways this week, with early trading Wednesday pushing prices higher by $6.10 to $1,325.10. Silver was up $0.11 to $21.12, and platinum and palladium are also trading higher.

Published in Gold Investing
Wednesday, 02 July 2014

Gold Powers Higher

These are strange days for the economy, as both gold and the stock market posted higher prices in the same week. In midday trading on Wednesday, gold was higher by $3.21 an ounce to $1,329.40, and silver was up $0.24 to $21.24.

The surge in gold prices was matched by the stock market, powering into record territory despite warnings from Federal Reserve Chairman Janet Yellen that investors may not fully appreciate the risk of future losses. Even though Yellen did not anticipate any current change in monetary policy, the bold warning was meant as a bucket of cold water on the stock market party. The strange price action this week kept the Dow/Gold ratio pegged at 12.7, on a week where gold should have had a clearer edge.

Published in Gold Investing

“Amateurs want to be right. Professionals want to make money.” — Warren Buffett

I’ll give you the answer straight-up to the question posed in the title of this blog piece in just a moment. Bear with me for a minute though.

Sixty years ago, a freelance writer named Darrell Huff published a book called How to Lie with Statistics. It became a classic — one of the most widely sold how-to books ever. In fact, the title is so hypnotic that it almost makes you not want to buy the book because you’re dead sure what it would say once you started reading it. Still, that would probably not be a good idea, because the subtlety of the book’s message would be lost on you if you choose not to buy the book.

Published in Gold Investing
Wednesday, 25 June 2014

Gold Up Sharply on Physical Demand

Gold hit prices it hasn't seen since April, on a combination of factors that include Iraq and concerns over stock market valuations both in the US and the European Union. Gold is up again in mid-week trading, moving higher by $3.68 to $1,321.78, and silver was higher by $0.15 to $21.05.

The boost in gold prices, combined with softness in equities, dropped the Dow/Gold Ratio to 12.74, nearly a full point in just a week! Silver had a blowout week, with the Silver/Gold ratio dipping to 62.7.

Published in Gold Investing
On Wednesday, the Federal Reserve announced it would keep its rates low for a while to allow the economy to recover. The thinking behind the announcement is that with lower rates in effect, businesses would be more inclined to invest, thus stimulating economic activity. The day after the announcement, gold bolted $41.40 to $1,340 an ounce, and silver $0.87 to $20.65 per ounce. Although precious metals are in a customary slow phase as the summer months take hold, investors clearly saw that maintaining a cash position would yield them little or no interest, so they jumped on the opportunity to pick up precious metals at low prices.
Published in Gold Investing
Poor President Obama. Right after he promised the American people we were packing up the tanks and the M16s, and bringing American forces home from Afghanistan, wouldn't you know that Al Quaeda-influenced forces would start a civil war in Iraq. What’s a president to do — fire Press Secretary Jay Carney? Tell US armed forces that all leave is cancelled? Call a special session of Congress? Here we go again. The world’s at war.
Published in Gold Investing
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