Continue to Buy Gold on Dips

Well… There I was, in a room full of CFAs — people with minds that don’t work like mine, or should I say mine doesn’t work like theirs! And at the podium was James Bullard, President of the St. Louis Fed… And it hurts me to talk, and I would not have been able to talk loud enough for him to hear my question… Oh, the things that happen to me!

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After the Fall: How Far Can Gold and Silver Climb?

With gold a stone’s throw away from $2,000 and already up 27% on the year, the objective investor might begin wondering how much higher both it and silver can climb. After all, gold is nearing its inflation-adjusted 1980 high — and that peak was a spike that lasted only one day.

So, how much return can we realistically expect in each metal at this point? And is one a better buy than the other? There are dozens of ways to calculate price projections, but I’m going to use data based strictly on past price behavior from the 1970s bull market.

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Gold Stocks that Think They’re As Good as Gold

In the first five minutes of trading this morning, the Dow fell 300 points. It fell a further 40 in the ensuing 25 minutes. Then shed another 150 the moment the Philadelphia Fed announced grim news for manufacturing at 10:00 a.m.

As you might expect, the “safety trade” is back on.

At the opening, it sure looks like today will be the day gold breaks $1,800… and sticks. At last check, the Midas metal is up to $1,822.

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A Decade’s Worth of Financial Change

While standing in line at the Dollar rental car lounge near LAX this morning, we saw these two headlines run back to back on a TV monitor: “Government Debt Ceiling Debate to Rage for Two More Weeks” and “Gold Hits Record High $1,600.”

We’re in town (yet again) to edit our film Risk! following our “focus group” screening at the Anthem Film Festival  last week in Las Vegas. We’re spit-shining the film for another screening again next week in Vancouver at the AF investment symposium.

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Gold Trades Past $1,600!

Well… The dollar is on the hot seat versus gold and silver this morning, but on the opposite side of the burner, the dollar is applying heat to the currencies… Strange, because normally dollar weakness will show up in all non-dollar assets… But not today… And speaking of gold… It’s within spittin’ distance of $1,600 this morning, making those prices at the beginning of the month tiny objects in the rear view mirror!

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Why the Misery Index Is Higher Than the Feds Let On

The Dow Jones Industrial Average continues its hiatus from doom and gloom yesterday – up more than 100 points so far today on what would be its fourth consecutive winning session.

A four-day winning streak may not seem like much, but as The Daily Reckoning faithful will recall, the Dow has fallen for six straight weeks. Perhaps the Blue Chips will fall for a seventh straight week, but so far the Dow is solidly in the black.

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Preparing Your Investments for an Inflationary Future

Let the boxing match begin!…In the near corner, we find deflation, with its furious fists of debt liquidation and credit contraction… And in the far corner, we’ve got Ben Bernanke’s printing press, with its menacing inflationary uppercut.

Inflation will win this contest eventually, but the match might go the full 12 rounds.

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Consumer Price Inflation on a Diet of Gold and Wheaties

We’ve always wondered why there is so much debate about the rate of inflation. It seems like such a simple thing to track. You go in the store. You buy a box of Wheaties. You write down the price. Next month, you do the same thing. What’s so hard about that?

But what if the box is smaller next month? What if the Wheaties are twice as good? What if you can get the same enjoyment from a box of Wheatie-Puffs at half the price?

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Will China’s Economy Overheat?

China’s GDP growth continued at a blistering pace during the first quarter of 2011, rising 9.7 percent from the previous year, according to economic data released today from the People’s Bank of China. Once again this outpaced many forecasts—even that of the Chinese government—and reignited the discussion of China’s overheating economy. While its robust growth may raise a few eyebrows, the economy isn’t in danger of “red-lining.”

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