John Paulson Betting $250 Million on Gold

Hedge fund manager John Paulson, who bet against the sub-prime market, is now betting on gold. Reports are he is opening a fund and using $250 million of his own wealth as a start. Add this to the continue buying of physical gold by banks around the world and nobody is really sure where this commodity is going.

One thing is for sure, gold is high and silver is looking like a the smarter play. Gold's little brother is still well below it's all-time high, but indicators are pointing towards a big run on silver. The reason is simple; the smart investor will not buy gold, with it being a record high and silver sitting ripe for the picking. It might be time to start thinking less gold and more silver.

Watch CNBC commodity wrap on next page>>>>>>>

Gold and Oil both Up

There isn't a lot more to add than what the article below already says about gold. We can sit here day after day discussing why the gold spot price is going up, but the fact is it is going up and that's that. As for oil, as soon the economy shows any signs of life, look for the price to skyrocket, putting us on the rocking chair.

Read Article Concerning Gold Prices

As for other sectors, housing starts dropped, the deficit continues to climb and there is little relief in sight. Outside of DC and the Stock Market things are bad and people are getting very worried; something the politicians if they don't know now will find out in about 11 months.

Gold Bull Market Continues:

Gold's bull run continues to be nothing short of stunning. Driven by the continued concern over the dollar, inflation and the almost non-existent interest rates, gold is running wild.

As I have said a thousand times, the question is when, not if, the correction will hit? It is getting to the point where the run up on gold is becoming a bit scary. Like anything, people jump in to just jump. This creates an unsustainable upward drive, that will force the logical out of the market and the price down. When it does correct, the same people that jumped in so irrationally, will jump out.

The best advice for investing in gold is to simply hold steady or take some profits. Secondly, begin looking for other commodities that may be undervalued.

Gold Quote>>>>

Also, for any investor, knowing human behavior is as important as knowing the indicators. Despite the constant bantering of selling high, buy high. many people cannot do this. When they see a market such as gold driving upward, they are instantly drawn in. Watch and listen to what people are saying around you, what they are writing and look for news medias beyond the mainstream, this can often present keys to where a market is going.

Oh Honey, Pick Me up Some Gold...

This is an interesting story. Harrod's in London is now selling gold...Oh yeah, along with a new shirt I will take a 5 ounce bar of gold please...
Read Story>>>>

Gold Closes on Record High in London

Gold closed at $1064 per troy ounce in London. Once again the driving force behind the precious metal's surge was the falling dollar. The American greenback dropped against the euro, driving investors towards gold.

There really seems nothing steaming the tide of the falling US dollar. As the United States pushes toward larger deficit the push out of the dollar will likely continue. The key factor in this commodity bull market and falling dollar is the presence of Asia. Never before has there be an economic power challenging the United States like China. Because of China, the historical indicators of the past are nearly null and void as their economic growth has been stunning.

Gold Milestones

This is a great article from Reuters . It shows the run of gold over the last few decades, showing how quickly things can turn up and down. Something of note however, is the influence of China as a new economic power. Even during the Soviet era, their economic influence was nowhere near what the Chinese have accomplished. Their presence is changing everything, including the continued decline of the dollar.

Gold on a Run

The rampant reports of the dollar being phased out as the oil currency sent gold on an expected run today. The precious metal finished the day at $1042 per ounce. It's partner silver was right behind, going over $17 per ounce. The run came after a report that the Chinese along with other nations are working a deal that will phase the dollar out as the currency of choice for oil trade. Making things even more interesting was the fact gold was added to rumored equation.

This would of course explain the Chinese move to buy up gold and prompt their citizens to do the same. China is making a major push to become the world's number one economic power and they are succeeding. It is time for the United States to work closely with the Chinese as the two become more reliant on each others' economic stability. Interestingly enough, as these powers race in the economic world and create economic allies, the ideal of a more stable, peaceful world draws a bit closer. Nothing promotes peace more than economies which are reliant on each other.

Gold and Silver: Bear v. Bull

There still seems to be some mixed feelings as to if the gold/silver market is bullish or bearish. Indicators are mixed, leaving many scratching their heads. Here's what we do know. Gold has stayed at are near $1,000 this entire month, silver continues in the $16-17. The dollar shows little signs of life and is taking another beating against the Euro and other foreign currencies. However, on the flip side, how long before investors decide it is time to sell and take profits. This could create a self induced correction that history shows, can be sharp.

From reading and listening most believe if gold and silver continues to hold steady, then it is time to jump in and buy as that signals a sign the prices are going to remain. This really seems to the direction as so many signals (including the demands in India and China) indicate a bull market with an extended life. The best move right now might be sell, take some profits and wait. If the correction comes jump back in hard, if it does not slowly re-invest a little at a time. Remember hogs get slaughtered.

Gold and Silver Prices

Prices for both gold and silver seem to going a bit sideways today. Gold is up $2, while silver is up .09. Not much movement for either at this point in time. There is indications that the world's largest gold market India, is seeing an increase in demand. This is good news for gold investors, but could only be a temporary spike.

The dollar continues to struggle and former Fed Chair Alan Greenspan noted he believes unemployment could be going to 10%. Not a bold prediction considering it is currently over 10%. However, both could have long term meaning for the price of the gold and silver.

Have a good morning and I will be back later today.

China Going Nuts Over Gold and Silver

Reports are flying all over the business world that the Chinese government is creating a gold and silver rush in the homeland. According to the website MineWeb.com, the national television of China is promoting the ease and importance of individuals purchasing gold and silver. This a dramatic shift for a government that just a few years ago prohibited individuals from owning precious metals. It is also an indication that government has the metals and are looking for buyes. Add this to Bloomberg report about China increasing their gold and silver positions and it appears the Reds are turning colors.

Even more interesting was a report from David Gallard of the Casey Report that China has become nervous with their holdings in the American Dollar and have apparently begun exchanging the cash for gold.

The circumstantial evidence that a big player is on the gold scene is overwhelming; the rapid increase in gold prices is a clear indicator. Second, there have been reported shortages around the world, meaning someone is buying large quantities. Gallard noted in his article last year the he called the Northwest Territory Mint and inquired about gold. The receptionist after sometime, noted to Gallard the Mint was back logged 30,000 orders, not money, but orders and new orders would take 16 weeks to process. Add this to the US Mint halting sales of the American Gold Eagle and it appears the demand is certainly extreme.

So what does this all mean? It is looking more and more like the floor for any correction is rapidly going up. It also means the boom in gold looks alive and strong. If China is in fact moving in this is good news for gold and silver investors. It is bad news for the American dollar, a currency that continues to get hammered on the international scene.

Gold Price...Where's It Going?

If I could answer the question of where gold is going, well then I wouldn't be posting on this blog. Instead I would be sitting on the beach, with my lovely wife, sipping a Corona. However, all indications are pointing to up, up and up for gold prices.

Now here are some reasons to start buying gold.

Let's take a look at the world around us. First, the banking system remains unstable at best. The problems which hounded the financial system remain in place. No, not lack of regulations, but the continued increase of it. Barney Frank is insistent on keeping Freddi Mac and Fannie Mae alive and kicking. This in essence allows the government to continue pressuring or allowing banks to continue making the borderline loan an easy transaction. So long as these two government entities are buying up bad loans, banks will continue giving them, keeping the entire situation unstable. Secondly, as the dust continues to settle, look for the financial sector to be monopolized by a select few; aided by the government.

This is nothing more than one symptom of an infested economy. Perhaps the looming 800 pound gorilla is the policy of printing money to pay for the debt. This practice can have devastating effects on the economy, creating hyper-inflation. The theory is simple, more money dilutes the value of the dollar, pushing up the prices of goods and services at a rapid price.

The strain on the investment class or rich, is growing to a breaking point. As the policies of this nation create more and more debt, taxes must and will be raised. This will drain money from those who can create wealth and place it squarely in the hands of the government, which cannot create wealth.

Finally, America's debt is no longer an in-house debt. Folks, our debtors are foreign nations specifically, China. This has in essence created a situation where our actions must be explained, at the least, to a foreign government. This situation is self explanatory.

The foundations of the American economy are rattled and this means one thing; gold. The top investors will continue running to gold, so as common investors, follow them. I am not supporting a complete pull out of the stock market, but instead shift a percentage of investment money into gold. It is the wise and prudent action until we have clarity to the direction of the new economy.

Media Buzzing About Gold Prices

As the dollar continues to sink, the price of gold continues going up. This week the Chinese commented they are concerned about the continued printing of more US dollars. Least we not forget the Chinese are nearly as powerful as we, because they hold our debt. Now when they talk, investors are listening and this means trouble for the US Dollar and good times for gold. Add in the fact it appears some form of health care reform is coming, one the United States cannot sustain, and the outlook of the dollar is bleak.

Do a Google search this morning take a look at what's coming up. I wanted to link on here but there is some bug keeping me from linking.

Price of gold

All I have to say about the price of gold....WOW!
Racing above $1000 per ounce.
The sky seems the limit these days...Wait for the correction and jump on board folks.

Gold Racing to New Highs

Gold is racing towards $1000 per troy ounce an amazing early September run. Silver is matching that run going up $16 per troy ounce. Now, don't look for either to sustain these highs. However, the floor isn't going to drop out either.

Clearly investors are quickly losing, assuming they ever had it, confidence in the central banking system and the current administration. The constant talk of health care, cap and trade and now a tax on traders, is fueling this doubt and creating even greater concern about the health the dollar. Toss in the fears of a jobless recovery and what we have are jittery investors running towards gold.

So what does this mean for the common gold investor? If you are heavy in gold snag some profits, if not hold off buying. Wait for the correction which could come anytime and then jump in. The price will go back to somewhere between $950-900 mostly because the demand for gold jewelry is not there. But, as the economic troubles continue, unemployment hitting a 26-year high, gold will continue the climb upward.

Milton Friedman: Role of Gold

Take a look, this is just one part of many. I will keep posting as I find them.

Protecting Against Inflation

Inflation, it is seemingly looming and investors everywhere are trying to protect against inflation. As the recession continues, the nation continues to print out money in hopes of paying off the deficit. This will eventually drive the value of the dollar down and inflation upward. There are ways to protect against this.

1.Look at investing into something called TIPS or Treasury Protected Securities. TIPS are adjusted to protect against inflation by using the Consumer Price Index (CPI), which signals the cost of living. This critical, protecting from prices raising faster than the interest on the investment.

2.get into I series saving bonds. The I series, like the TIPS were created to protect against inflation. They are compounded semiannually and come in $50, $100, $500, $1000, $5,000 and $10,000

3.3.Switch from individual stocks to ETF's. These are similar to stocks but are essentially a collection of stocks, bonds and other investment tools. They normally are based on one segment of the economy such as financial, commodities etc.


4.4. Gold, gold and more gold. Head straight for precious metals, because unlike paper money they have real value. Precious metal value is not based on government or the impressions investors may have of economy.

How to Sell Gold at High Price

Gold is a great investment in these more than uncertain economic times. The reason being is that gold will maintain a tangible value, regardless of how bad or good the economy is. The problem is when and where to sell gold and cash in on some profits.

Here are few steps that help:
1. The ease of selling gold starts with buying gold. Yes, sounds strange but it is really easy after reading. Purchase gold that is clearly marked with grade and weight. The best way to do this is to purchase coins minted by government mints such as the American Gold Eagles and Gold Maple Leaf. Clearly marked coins lets any potential buyer know exactly what they are getting.

2. Be ready to fight for the best price. There isn't a gold investor unaware of the spot gold price, but most dealers often ignore it when the price is high. Be your best advocate and work the best deal possible. This means education and being armed with knowledge to argue why gold prices will remain high.

3. Sell gold on eBay or other Internet sites. Set up an account and start selling gold online. This can be a tremendous success, but remember the auction system is a pure free market tool and anything can happen, from auction to auction.

4. Build a relationship with a few dealers. Comfort is found in being familiar, so work on relationships with a number of dealers. Building trust will also eliminate the time needed to sell gold and the process of getting the price. Never underestimate the value of time.

Buying Gold on a Budget Part 2

This is the second part of how to buy gold on a budget.

Look for gold that is affordable or at least within a budget. Most of us cannot buy the gold bars we see on television, but we can get our hands on gold coins, specifically American Gold Eagles.

The American Gold Eagle is a great investment and although it is still expensive at around $1,000 per coin, they do offer a viable way of purchasing gold. Finding them is very easy and just a click away. There are a number of them currently on eBay. However, I prefer to buy my coins at a local store or from APMEX.com or Austin Rare Coins.com. I have purchased coins from both and have been very happy with their service and product.

Another common option is the Gold Canadian Maple Leaf. Like the American Gold Eagle, the Maple Leaf is easily found and offers a convenient way of purchasing gold.

If you are interested in historical coins there are many shipwreck recovered coins available. Personally I have never purchased such coins as my knowledge is limited. These coins offer both a historical and tangible option, but they requiring a vast knowledge. It is critical to be well rehearsed in historical coins and the grading system of coins. Other wise, the danger of being "taken" increases.

Gold coins allow the average person to invest in coins, that's why FDR scooped them up. So take advantage, put some money back and get into the world of gold coins.

How to Buy Gold on a Budget: Part I

Okay so everyone is saying buy gold, but show of hands if you have $1,000 sitting around the house for just one troy ounce?

That's what I thought, if you did you would be reading a high priced, subscription site instead of this free one. So, this leaves us with a pressing question; How to Buy Gold on a Budget?

The answer is found in discipline. As Americans we have been trained to become consumers of all things. We buy, eat, drink and consume like an army of red ants. That doesn't have to change when dealing with gold, it just needs to be altered.

First, let's address the impulse buying that haunts so many of us. Instead of grabbing the 32" LCD television, think about it. Downgrade a few hundred dollars and get something smaller. Right there a consumer can save/refocus a few hundred backs. That takes a potential gold investor to almost 1/4 of the way to buying gold.

Now add that to the other impulse items we buy and bingo; there's the money to purchase on American Gold Eagle. Changing from an impulse to a smart consumer is a beneficial and smart move. Look at this way, you are still consuming but instead of a product that will some day be tossed aside, you have consumed an investment.

Secondly, set up a plan to purchase gold at specific intervals through out the year. Target a plan where some form of gold will purchased at X time. Doing this will require discipline, but will allow for a gold portfolio to slowly build.

Invite to Ehow

Along with this blog I have written a number of articles pertaining to gold on eHow. The purpose of those articles is to demonstrate in very simple words how to invest in gold or the benefits of investing in gold. I also have a number of articles concerning silver and how to invest.

I wanted to invite you over to check them out, along with this blog. Also, when over on eHow, considering joining up and start writing. There is some residual income at eHow or do like I do, use the profits from eHow to roll into gold and silver. With using a pay pal account, it makes for a great forced savings account and allows for the money to quickly build.