Bernanke and the Gold Rally

Gold prices are in retreat – their steepest two-day decline since March – on the announcement by Fed Chairman Ben Bernanke that inflation “appears likely to remain subdued for some time.” (more...)

Gold Buying Opportunity

Gold Dip "Offers Buying Opportunity" as Zero Rates Seen Until End-2010 London Gold Market Report THE PRICE OF GOLD slipped early Thursday in London, losing almost 2% from yesterday's new Dollar record as global stock markets also fell despite a report from the OECD which doubled 2010 growth forecasts for the world's richest economies. The US Dollar rose sharply on the forex market, but the drop in gold outpaced the drop in non-Dollar currencies, helping the gold price in Sterling retreat 1.1% from Wednesday's 9-month highs. (more...)

Gold vs. Fiat Currency

Gold in the Face of the Fiat Fallout Gold hit a new record yesterday. The price rose $22.50 to $1,139. And today we take up a foul and disagreeable task. We ask ourselves: what if we are wrong? If you bought gold when we first recommended it, ten years ago, you are in a very comfortable position. Gold sells for more than 4 times as much today. But what should you do now? And what if you didn’t go for broke on gold in the early ’00s? Is it too late to get in on the bull market? (more...)

Silver to Make a Big Move

Silver is About to Explode Higher Most Gold bulls are silver bulls. The 1970s is the reason why and because inflation that occurs when a secular commodity bull cycle is in effect tends to flow into both precious metals. I have been less than wildly bullish on silver lately. I own some physical silver but hold much more Gold. My concern is simple. In past deflationary cycles, Gold has done well but silver not as well. Since I favor deflation over inflation for this cycle, I heavily weighted myself towards Gold and only hold a little silver. I even made the stupid mistake of shorting silver a few months ago and had my a$$ handed to me. (more...)

Gold Keeps Climbing Higher

Gold Is Busting Out All Over The gold stocks caught on fire over the past fortnight.  They have lagged behind the metal in relative strength, but, since they are more volatile than the metal, bigger profits are the result.  For example, gold is well above its early September levels, but the XAU and the HUI have only broken above their corresponding levels just last week. Measuring from May 22, 2009, when I last resumed a full bullish-gold position, the metal is up 16.5%.  My Model Conservative portfolio is up 33.6%.  The further back you start, the prettier it gets.  For example, starting with the beginning of the grand cycle gold bull market (early 2001), the price of gold has multiplied by 4.4 times.  The HUI has multiplied by 12.4 times.  Pretty it is, and pretty it will continue.  During the same time period the S&P is down 7%. Yet all I hear from the establishment is the same mantra: “Buy stocks.  Stocks must go up.  They always have.  Don’t buy gold.  Gold is a collectable.”  Sad, very sad.  Beating these people is like taking candy from a baby. (more...)

Randgold Resources: Fast Track Mali Project

Reports rising costs but a swing to profit in Q3 LONDON (Reuters) - Gold miner Randgold Resources (RRS.L) swung into a profit in the third quarter as higher gold sales outweighed rising costs. It also said on Tuesday it will fast-track its Gounkoto project in Mali and plans to complete a pre-feasibility study on the project, situated 25 kilometres south of the company's flagship Loulo complex, by the end of the first quarter of 2010. The only pure gold producer in the FTSE 100 index said it moved into a profit of $13.6 million from a loss of $684,000 a year ago. (more...)

IMF: US Dollar “Still Over-Valued”

Gold Makes It 3 Records in 4 Days THE PRICE OF GOLD jumped to new all-time Dollar records for the third time in four trading days early Monday in London, trading above $1110 an ounce – up more than 27% for 2009 to date – as the US currency fell hard on the forex market. World stocks added 0.4% on the MSCI index to continue their four-month surge after Sunday's meeting of G20 political leaders in Scotland vowed to "continue to provide support for the economy until the recovery is assured." (more...)

Gold: Poised to Make a Move to the Upside

After pulling back from recent highs, the price is expected to make an assault on $1100 shortly JOHANNESBURG - Even though the gold price has pulled back from its recent highs and is see-sawing between $1020 and $1060, I believe that the price of the yellow metal is poised to make a move to upside and hit the $1100 level shortly. (more...)

U.S. Dollar Vs Gold

An Interview with Blackmont Metals and Mining Analyst Richard Gray It's been a dollar vs. gold story ever since the economy ran into trouble last fall, according to Blackmont Metals and Mining Analyst Richard Gray, who sees inevitable inflation down the road. "The trouble is there are no real applicable precedents we can use," he explains, noting the prodigious amount of stimulus money flooding the economy. In this exclusive interview with The Gold Report, Richard discusses major drivers behind gold's price rise, attributes of successful juniors and why he thinks gold's upside scenario is "maybe $1,100 or $1,200." (more...)

Gold Price and Zero Discount Value (ZDV)

Gold $2,000 Based on Banking System Zero Discount Valuation An earlier article introduced the concept of gold’s Zero Discount Value (ZDV). Applied to the central bank whose only asset is gold and whose liabilities are currency and bank reserves, the ZDV is a value for gold such that every outstanding dollar liability in the central bank’s monetary base (currency plus bank reserves) is backed by an equivalent dollar’s worth of gold. It is what the dollar price of gold would be if the central bank’s liabilities were 100 percent backed or covered by gold. (more...)

Gold to Exceed $1000

October 2009 has developed into a truly glorious month. For the first time in history the average monthly price for US$Gold will exceed $1,000. Certainly all are celebrating such a wonderful event. Perhaps the most important aspect of this remarkable event is that the purveyors of price suppression and manipulation theories can now turn off the lights in their caves. Reality has crushed their misconceptions. If an $800 bull market is price suppression, give me some more!

Gold Nears Record Weekly Close

GOLD HEADED into the weekend more than 0.6% up on the week here in London on Friday, gaining as world stock markets also rose alongside crude oil and commodity prices. Recording an AM Gold Fix of $1061.25 an ounce – its best-ever Friday fix in Dollars – gold also rose against the Euro as the single currency held flat vs. the Dollar.