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Don’t Trust the Government, Gold Still Inflation Hedge

In his latest article at Forbes, Jack Adamo analyzes the history of government inflation statistics and why gold is still an excellent hedge in spite of the popular narrative that inflation is “under control.”

“The other problem I find with the inflation-to-gold ratio analysis is this: We are truly in unknown territory with the U.S. and world money supply. In 2008, when the Fed geared up its printing press, the entire balance sheet of the Federal Reserve, accumulated in its 95 year existence, was $1 trillion. For the last several years, it has been growing its balance sheet $1 trillion per year.

The only reason we don’t see rampant inflation is that the velocity of money is so low. If the economy ever picks up for real, watch out. Fortunately, or unfortunately, depending on how you look at it, there seems to be no immediate threat of that.”

Read the Full Commentary Here

Gold bars are pictured on April 6, 2009

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Today’s Key Gold Headlines – 8/12/13

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Futures Markets Signal Gold Ready to Erupt

Read Peter Schiff’s latest Gold Letter, with an insightful commentary from Precious Metals Specialist Dickson Buchanan on gold backwardation, a negative GOFO rate, and what they mean for physical gold investment.

“With gold recouping some losses in its most recent trading sessions, many are asking whether or not the bottom has finally formed for the yellow metal. Most of these gains have been simply chalked up to short-covering and dovish remarks by Bernanke during the recent Federal Open Market Committee meetings; however, there are some key indicators for gold which are overshadowed by the media hubbub. Two of them in particular are important to understand, because they reveal a renewed investment demand for physical gold over paper gold or fiat currencies.”

Read the Full Article Here

dickson buchanan

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Today’s Key Gold Headlines – 8/9/13

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Lewis Lehrman: The Rise and Fall of Real Money (Video)

Lewis E. Lehrman, author of the new book, Money, Gold, and History, spoke at the Cato Institute last month about the history of central banking and the destruction of the gold standard. Lehrman’s lengthy talk is a great introduction to the rise and fall of real money. His new book includes 40 years of essays on the classical gold standard.

“Working people have also discovered that the credit worthy liquid financial class with access to cheap money at the Fed and at the banks has enriched itself not only by bailout subsidies, but by cheap financing derived from its symbiotic dependence on the Federal Reserve System. This [is] a fundamental cause of the rising inequality of wealth in America.”

Watch Lehrman’s Speech Here

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Today’s Key Gold Headlines – 8/8/13

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The Government’s Plan Is Inflation (Video)

Business News Network had Peter Schiff back on yesterday to get his take on the Fed’s suggestion that it might start tapering in September.

“The government has no tools to combat [inflation]… The Federal Government and the Federal Reserve want to inflate away all the debt. The US government has a lot of debt, American households have debt, corporations have debt [and] it’s impossible to repay it. They want to inflate it away, but they don’t want our creditors to realize what plans we have and so we’re going to continue to misrepresent how much inflation there is…”

Watch the Full Interview Here

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World Gold Council on Fundamental Gold Investing (Video)

Bob Alderman, Managing Director for the World Gold Council, speaks about the enduring value of gold and the yellow metal’s current role in a long-term investment strategy.

“The case for owning gold is a simple supply and demand story, [and] it has always been that way. What’s changed over the past several months is that there is clearly a supply situation where it may be constrained. And from a demand perspective around the world, including here in the United States, there is certainly increased demand for both physical gold, as well as jewelry.”

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Today’s Key Gold Headlines – 8/7/13

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What Doesn’t Kill Gold Makes It Stronger

Peter Schiff's Gold Letter

Peter Schiff’s latest gold letter came out this morning, with an article by Jeff Clark of Casey Research on the booming solar power demand in China and its implications for physical silver. Precious Metals Specialist Dickson Buchanan examines some technical indicators for the health of physical precious metals, while Peter’s commentary takes a look at the recent action in gold futures.

“I’ve been emphasizing for months that the current correction in the gold price is a result of speculative money fleeing the market and not any reflection of gold’s long-term fundamentals. Unfortunately, there is so much money to be made (and lost) by day trading that my cautions have once again fallen on deaf ears.

Well, it looks like the so-called “technicals” are starting to support my theory, and so this month I’m going to depart from my typical discussion of market fundamentals and take a look at the COMEX gold futures market. It turns out that the same paper markets that helped drive the price of gold down are beginning to run into the hard reality of physical gold demand; their reversal may push gold to new highs.”

Continue Reading Peter Schiff’s Gold Letter

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