Category Archives: Daily Gold Headlines

It looks like gold is ready to complete the year with a 6% gain, continuing it’s longest streak since 1920, according to Bloomberg. A few days before Christmas, Jeff Clark of Casey Research published a good commentary reviewing the opinions of prominent gold bugs and the many reasons why 2013 looks like another shiny year for the yellow metal:

“None of these parties think the gold bull market is over, nor the price too high. They recognize the implications of a world floating on fiat currencies, and that government “solutions” to debt and deficit spending will significantly – perhaps catastrophically – dilute the value of currencies, the fallout of which has yet to materialize. As for me, I think that the longer the malaise continues, the more likely the breakout is to be both sudden and dramatic.

We can all speculate about when the next leg up for gold will kick in, but the point for now is to take advantage of the weakness, like many of these gold bugs. When the price breaks out of its trading range, are you sure you won’t wish you’d bought a little more?”

Continue Reading…

The media has stirred up a lot of fear about the possibility of actually going over the fiscal cliff in the new year. However, Peter Schiff maintains that the cliff is an essential step in repairing the economy. He also continues to stress how much safer gold is than dollar-denominated assets, especially Treasuries:

“There is no question that the Treasury market is a classic bubble. The prices make no sense, fundamentally. The US government is able to borrow at much lower rates today than it could five…[to] thirty years ago, despite the fact that it is less credit worthy today than it was back than…It’s a mania. People are buying because they expect a greater fool to pay an even higher price. And eventually it’s going to burst. And when it does burst, it’s going to have a much greater impact on the global economy, and particularly on the US economy and the average American, than did the bursting of the real estate bubble or the internet stock bubble.”

Some news from China in the past several weeks drives home just how out of touch Americans are when it comes to understanding the value of gold. Check out the following articles and commentary. In China, the demand for gold is rising and the government seems to officially recognize it as real money. The last piece, by Jeff Clark at Casey Research, is a fascinating examination of the Chinese mindset towards gold.

China eyes 450 T gold output in 2015, consumption to rise 

China Moves Forward in Opening Gold Market

Casey Research: How Do the Chinese View the Gold Market?

As European banks scramble for more capital and China continues to hoard gold, more and more people are looking into precious metals investments. For once, most commentators seem to agree with Peter Schiff that the price of gold is still far from its peak. Jeff Clark of Casey Research explained the relationship between monetary policy and the price of gold in the November edition of Peter Schiff’s Gold Letter:

“There are plenty of long-term charts that show a connection between gold and various other forms of money (and credit). Most show that one outperforms until the other catches up. But let’s zero in on our current circumstances, namely the expansion of the US monetary base since the financial crisis hit in 2008.”

Continue reading here…