In my continued exposure of those who write articles that misrepresent gold I’ve run across an article written recently by former Ronald Reagan chief economic adviser and current Harvard Economics Professor, Martin Feldstein called “Is Gold a Good Hedge?”
I will dissect Feldstein’s article that is full of what I believe to be deliberate misinformation to confuse readers as to what gold truly represents in today’s economic and investment climate.
Read More0The advice from Dave Ramsey is to “only invest in something that has a good long-term track record.” Well Dave, in case you didn’t know, gold has over a 5,000 year track record. Is that a long enough track record for you?
The U.S. Dollar on the other hand has only a 38 year track record without gold backing.
Read More0Recent purchasers of Gold are upset lately with the 8.5% drop in the U.S. Dollar price of gold this week. But what most of these buyers don’t understand is that gold stayed the same. It was what gold is priced in that changed.
That’s right. Gold is just a shiny rock as all the Gold naysayers like to say. It didn’t change in the last week. It’s still a shiny rock. But the U.S. Dollar appreciated of late thus causing the U.S. Dollar price of Gold to fall. To understand this further read on…
Read More023 days ago I wrote an article Trade Gold In EUROS Instead of Dollars? Switching May Make Sense Soon where I presented the case that the GDP of the Eurozone didn’t support the appreciation the EURO was receiving over the U.S. Dollar, which also was experiencing lousy GDP numbers. It was the fact that the EURO was approaching its all-time highs against the U.S. Dollar that made no sense.
Read More0There were two negative articles on gold today that were filled with misinformation. While gold has been getting hit lately, something I have been cautioning traders about recently, it is expected that the gold bashers would come out of the woodwork. But the problem lies with the flawed analysis these journalists are utilizing in drawing their conclusions.
Read More0In 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 More0However, 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 More0But 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.
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