Posted by Deviant Investor on February 11th, 2014
- Germany requested that the NY Federal Reserve return the gold that Germany shipped to the United States decades ago. If the gold were physically in the vaults, it would be relatively simple to ship the gold back to Germany. It has not been returned, which begs the question, where is Germany’s gold?
- If Germany’s gold is “missing,” what about other gold from other countries that is supposedly stored at the NY Fed?
- Does the U.S. gold supposedly stored at Fort Knox and at the NY Fed still exist in those vaults?
- The U.S. believes in paper dollars and an unbacked debt based currency. Such currency can be created with little more than a few keystrokes on a Federal Reserve computer. Would the Fed and the U.S. government sell gold into the world market to slow the inevitable weakening of the U.S. dollar? Would the Fed and the U.S. government ship (via intermediaries) substantial quantities of gold to China to prevent dumping of T-bonds and dollars? Are gold sales a “delaying action” to extend the reserve currency status of the U.S. dollar?
- If China is converting their excess of dollars and T-bonds into gold, buildings, land, businesses, mines, and so much more, what do they believe is the real value of those dollars and T-bonds?
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Posted by Deviant Investor on February 3rd, 2014
Michael Lombardi has written many good articles about gold, the economy and the stock market. A few are listed below:
Why I’m So Cautious About 2014
Massive Shock Coming to the Gold Market Soon?
If Gold’s A Bad Investment, Why…
January Indicator Points to a Terrible 2014 For Stocks
A few quotes from his articles:
“…central banks will be the major drivers of gold bullion prices going forward. Countries like China and Russia will need more of the yellow metal, because they simply do not have enough in their reserves compared to the United States, France, Germany, or Italy.”
“The stock market looks like it’s in big trouble. This shouldn’t be a surprise to my readers; I have predicting this event for months.
“So far in 2014, and we are only three weeks into it, the Dow Jones Industrial Average has shed 709 points (4.3%). But I think the explosions for 2014 are just getting started.”
“Why can’t Germany get its gold back? Do Western central banks really have any gold left in their reserves or have they sold it all? And why is China, now the world’s second-largest economy, buying so much gold? These are questions that lead me to one conclusion: gold prices should be a lot higher than they are today.”
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Posted by Deviant Investor on January 28th, 2014
Guest post from the Financial Chronicle:
Are they still a worthy investment?
Of all gold-backed investments, the ETFs receive the most criticism—this is because its status in the markets has been as unpredictable as the price of gold itself. Investors are therefore left in a quandary of whether to retain gold ETFs in their portfolio or just leave the precious commodity alone. The beginning of this year, however, proves that the answer is still in the affirmative; gold ETFs remain to be the “best option,” as stated in a report in the Financial Chronicle section of My Digital FC. This is because the product offers better liquidity and has many tax benefits.
Despite a bleak 2013 for the metal, gold is actually seeing a steady rise at the beginning of 2014; maintaining a gold presence, therefore, will still be a wise way to diversify a portfolio, said Dr. Steve Sjuggerud on recent gold news from Bullionvault.com. With this development, gold ETFs are also seeing hope—Nasdaq.com, a financial website, predicted that the rebound in gold bullion this year will have a positive impact on gold ETFs, “especially if fundamentals of the market continue to improve.” It concluded that the momentum for the commodity is presently building.
Resource Investor is actually telling investors not to panic, as gold ETFs are currently adding holdings. Gold optimism is growing, and this is evident in the increased inflows in gold ETFs. If there has been a reported exodus of investors late last year, this has significantly cooled off in the past couple of weeks. For the first time since April last year, holdings in the world’s largest gold-backed ETF rose from 7.49 tons to over 790 tons last week. Along with gold futures, ETFs are gaining a significant momentum. Experts from the London Bullion Market Association estimate that gold prices will have an average of $1,550 at best. It’s therefore ideal to hold on to gold-backed ETFs this year or to consider having some in an investment portfolio.