Bernanke’s Psychological Warfare On Gold and Silver
If you want to return the U.S. economy to the glory days again, one potential way to do it is to have people perceive “all is well” by propping up the one area that most view as a sign of a strong economy; the stock market. When people look at their 401k statements at the end of the month and see a higher figure than the prior month, they get a feeling of comfort. What a better way to...
Read MoreIs the U.S. Following in Japan’s Deflationary Footsteps? Part 1
In trying to further decipher whether we should worry about inflation or deflation now, many people look to the similarities of what Japan has experienced the past decade plus and wonder whether the U.S. will follow suit. Could the U.S. be taking the same deflationary flight pattern as the Japanese have taken since 1989? What will that mean to the price of gold? To answer this question,...
Read MoreIs Stock Market Volatility Helping Gold Move Higher?
If the whole world was clamoring to buy gold, there wouldn’t be enough of it to go around. In fact, the whole world should be clamoring to buy gold based on the fact that gold has appreciated by more than 173% against all world currencies the last 10 years as seen in the charts below. But is worry about the stock market decline causing investors to go to cash moving the dollar higher AND at...
Read MoreGold Price Buy Sell Action – Recession? What Recession? (Part 1)
As I type this, gold us up $11.50 at $1,162.70. Most of that rise in the price of gold is due to the Dollar Index falling down to the 81 level again. The following charts paint the current picture for gold. Price of Gold 4/09/2010 – 8AM – $1,162.70 Kitco Gold Index U.S. Dollar Index 81.01 What Is Currently Driving the Price of Gold Higher? For the last 10 years the price of...
Read MoreCurrent Thoughts on the Stock Market: Caveat Emptor!
Government surplus efforts are presently working. Some are calling an end to the recession. Green shoots are sprouting. The stock market is breaking 2009 highs. Life is back to normal. All is well. Or is it? What is the real reason for all the happy faces of the folks on CNBC? Answer: Government spending. I addressed the government spending effect on GDP in June in an article...
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