In this article I break down what Bernanke is saying and relate his cry for the Federal Reserve to remain independent (no audit) to the reality of what the Fed has actually done to cause the crisis to begin with as well as what their existence means to the odds of any economic recovery occurring in the future.
Read More0Nov
25
2009
CFA Calls Gold a "Lousy Investment" – Sorry, Gold Is Insurance Against a Declining Dollar
By: Doug Eberhardt
Category: Gold
However, just today, the dollar index hit a 15 month low and is moving closer to the 72 mark and gold hit a high of $1,186. The action in the price of gold to new highs seems to be predicting a fall below 72. Will the March 2008 mark be taken out? No mention of this dynamic by the CFA.
As I pointed out in my reply to the CFA’s article, the only thing that is highly speculative is blind faith in an asset that has 38 years of existence without gold backing. That being the U.S. dollar.
Read More0Nov
19
2009
Nov
18
2009
But now that everyone is talking about the dollar weakness again, as well as gold breaking to new highs, Geithner is stuck between the proverbial rock and a hard place. If he takes the strong dollar stance, it could kill the stock market rally, especially if the Fed increased interest rates. If he lets the dollar fall too much, there could be a rush for the exit with Japan and China leading the way. There is a reason why Obama chose this time to take his trip to China. The U.S. needs to maintain the U.S. Dollar’s world reserve currency status. It cannot afford to become a second rate nation. Something has to be done.
Read More0Nov
16
2009
The Problem With Elliott Wave Theory Proved Right Again, 8 Days Later
By: Doug Eberhardt
Category: Gold
Tags: Elliott Wave Theory, Gold, Gold Investing, Jim Rogers, marc faber
Marc Faber called for gold to go to $800 last week. Jim Rogers is recommending physical gold now over mining stocks.
It’s not easy to time the gold market because of these external influences. Holders of physical gold care not that gold falls to $800 an ounce on its way to $2,000 and higher.
Read More0Nov
6
2009
Gold and the Carry Trade: Rogers vs. Roubini, Who’s Right?
By: Doug Eberhardt
Category: Gold
Tags: carry trade, Gold, Gold Investing, Jim Rogers, Nouriel Roubini, U.S. Dollar
So why does Roubini hate gold? Because he’s a Keynesian Government loving professor at NYU and former advisor to the U.S. Treausry Department. Show me a professor at a University that likes gold, outside of the Austrians, and I’ll listen to what they have to say. Otherwise, remember where the professors bread is buttered.
Read More0Nov
5
2009
Nov
4
2009
But the Elliott Wave folks miss one thing when they do their prognosticating, and that is “the unexpected.” In a perfect world with no outside influence, the ABCD patterns of Elliott Wave Theory seem to fall in place naturally. But Elliott Wave Theory doesn’t take into account external influences that can affect these patterns like what occurred earlier this week.
Read More0Oct
30
2009
CFP’s are great as advisors as they take into account the entire realm of planning when recommending how people should handle their finances and investments. They have to pass a comprehensive exam and are required to complete continuing education each year to stay on top of their expertise.
But even CFP’s can misinterpret the need for gold as part of a diversified portfolio. The reason is, the books they are required to read before taking the CFP exam don’t even address gold properly and there are no continuing education courses that addresses diversification into gold.
Read More0Oct
23
2009